The entry [U]short [/U] at 34 is shown on the chart with the orange curved line.
The price rose to 35 (red candle next to it - can you see it? ) but after that it soon dropped and then made its way down to the area marked “exit area”
In this area the MACD starts to slow down from its fall. This is one way of closing your trade. Another is to use a trailing stop. I usually pick 10 pips - I am not game to go much further.
Hello Tymen, CONGRATS!!
I have been looking back on some of my charts and sometimes I see the middle BB going down and the macd going up.Where does that put the resultant,(price)?In your examples the resultant is always inbetween the vectors…correct?So what happens when the top vector is pointing down and the bottom vector is pointing up?
Hello,
Does anyone following this thread have Oanda as a broker?They have NO KK bands.I have MT4 as a demo. I do all my charting with it… buuut.I don’t think it would be a good idea to use these two platforms next to each other for a scalping system like this.Any advice would be appreciated!!!
Sorry that I am assuming that everyone knows physics. The resultant vector is always between the vectors - it cuts the angle exactly in half.
For example, if the angle between the MACD and BB is 60 degrees then the resultant slices that in two so that the two new angles are 30 degrees each.
If the BB is going down and the MACD is going up that should place the resultant level. However…look at the two vectors carefully.
Sometimes the MACD is going down very steeply and the BB is going up only moderately. In this case we divide the angel exactly in two and the resultant is then going very slightly down.
If the BB is going up very steeply and the MACD is going down only moderately, then the resultant would be slightly up.
In each and every case the resultant divides the angle between the BB and MACD exactly in two.
To be sure, [U]scale the charts evenly [/U]to get the vectors, ie use half your screen for the price action and the other half for the MACD. [U]Then you can get the slopes of each exactly. [/U]
After this you can ajust the screen for better viewing ie reduce the size of the MACD chart at your convenience.
Hope this helps. Feel free to ask further on this matter if necessary - I can always post diagrams.
Why can you not trade Oanda next to MT4? I would have thought that you can use MT4 to do all your charting work and plot your entries and exits but then leave your Oanda platform to do only the entries and exits.
Is this not possible? If it is, then it sounds like a really good idea. Just minimize the platform you are not using for the moment on your Windows XP or VISTA.
3 separate [U]short [/U]entries were placed - one at the bottom, one in the middle and one at the top. Only the bottom entry was filled with the others remaining as working orders.
And look how the price dropped!! …generating a huge profit.
Then at the label “exit 1”. the powerful green piercing pattern candle ([U]at the [/U][U]BB[/U]) signalled the time to enter [U]long[/U].
Entry 4 was taken and a nice profit realized at exit 4.
I see you entered during the formation of the bear candle on the engulfing pattern instead of waiting for the finish like on the shooting star pattern.
Is this successful most of the time?
Would also like to see how you enter on other patterns.
The type of entry I used on the above pattern is not as good as the entry type using the 5 min chart. It is used for rapid entry and you divide your lots into 3 parts - one at bottom, one at middle, one at top.
If only the bottom is filled, then you will make only 1/3 as much profit.
For example, lets enter with 9 mini lots. With the 5 min chart entry method you would make profit on 9 mini lots.
But in this divided approach you place 3 mini lots at each order - bottom, middle, top.
If only the bottom is filled, then you get profit on 3 mini lots only.
[B]My next chart will show entries on different patterns.[/B]
[B]My next chart comes from only last night. An incredilbly powerful dark cloud cover occurred on the upper BB on the [U]25 minute[/U] chart of EUR/USD. You may have seen it yourself.[/B] >>>
This chart shows the same formation as an evening star - and a very powerful one at that. The profit continued way after I had already closed. As far as letting your profits run, this example is a real beauty.
At this point I will take a break and celebrate once again the sheer power of candlestick trading.
I would like to encourage all readers to remember that their choice of candlestick trading as a strategy is the best there is.
[B]For those who are experiencing losses, for newbies searching for a strategy, and just for everyone else as well, I would like to warm your hearts by again stating the great advantages of candlestick trading :[/B]
It is the [U]simplest [/U]system to learn. Know the important patterns and have an eye for spotting them and your done! No other system is this simple.
The candle pattern tells you [U]which way [/U]to trade. No complex figuring out whether to go long or short. The pattern tells you this.
No need to figure out [U]trends [/U]- just trade the pattern for profit to come.
No need for [U]extra time frames [/U](you do not need to use my special 5 min entry method if you do not want to) to determine trend direction.
The candle pattern is [U]standalone [/U]in its time frame and that is exactly what you trade.
No time lag - all indicators suffer from lag.The candle pattern is [U]immediate[/U].
Because of (5) above, a trader’s [U]confidence [/U]is vastly improved with an immediate [U]improvement [/U]in trading performance leading to more frequent profits and less losses.
Candlestick patterns, by their very shape, show the [U]psychology [/U]of trading as well as the price action. Indicators are mathematical displays derived from the price data, and are, therefore, emotionless. Indicators show nothing of the psychology and emotions of trading.
Over a long period of time, the character of trading changes. That is why no system will always work. Eventually they all fail. But candlestick patterns are not a system and their shape and occurence always keeps in step with trading character - because they are actually part of the character. Candlestick patterns [U]always work.[/U]
Candlesticks work under all conditions, whether [U]trending [/U]or [U]ranging /U. An indicator strategy requires that you first discern whether you are trending or ranging. Different indicators are needed for each approach.
So with indicators you have twice the work to do. First you must discern the price action and only after that can you start trading.
Candlesticks get you into price action [U]long before indicators [/U]- in many cases, so much so that you are closing your trade by the time the indicator trader is just opening his.
Candlesticks are the fastest form of price prediction there is. The next fastest is the ergodic candlestick oscillator which in turn is much faster than any other indicator.
Candlestick trading is very reliable. Providing that the patterns are properly picked, and the poor ones weeded out, the probability of success is extremely high.
Only fundamental analysis could do better.
Providing you have enough charts, candlestick patterns are very frequent and give the trader lots of opportunities to trade. This gives the candlestick trader the choice of rejecting a trade whereas the indicator trader has to wait until his indicators line up to conform to his strategy.
[B]Candlesticks - Behold the Rolls Royce of Trading.[/B]
You will see many systems being advertized on this forum. Just lately, there is a whole plethora of them.
But they are all indicator systems, with no great difference in any of their operations. Only the names are changed in an attempt to attract new devotees.
They will all suffer the same fate - eventual failure because the character of price action changes and the system cannot adapt to meet the change.
So I am not interested in any of them.
I have found what I believe is the best of all strategies - Candlesticks.
To finish with, warm your heart by reading again the following hyperlink. It will probably have much more meaning for you now.
At this point I like to take a break too and want to thank you for your time and efforts you have spent to teach us your method! I like your detailed and elaborated posts so we can understand your style. Your vector approach to trading is amazing. Great idea.
cheers Summerpip
Great thread Tymen,
I have for the longest time wanted to start this thread from the begining. Today I have found that opportunity and am very glad to have done so. Thank you and all the other members who have contributed to it.
Thank you so much Summerpip and 8pipike for the tremendous compliments.
I am still learning myself though!!
I might just rest for the weekend and continue on Monday. I have much more information to present, including something special from the laws of physics.
)
