I tend to agree with [B]maravizzo[/B] on his observations.
Consequently I would avoid the green soldiers and rosellas patterns for now.
As the charater of forex changes with time, these patterns may become more reliable again.
What do you do when you see a bearish confirmation on 1hr TF and a bullish on 20min TF ?
This question has been asked several times before in my first candlesticks thread.
The answer is easy!!
Asumming, both predictions are accurate, then we trade the 20 min in long format.
We also trade the 1 hour timeframe in short format.
What will happen is that initially, the trade should go long so that a profit here, however small, may be realised.
Then eventually the trade goes short so that the short trader makes a profit also.
We must remember that candles go up and down.
As such it is quite possible for the price action to go up first, then come down again later.
You will see this happening very clearly when you are trading in the Advanced level on the 5 minute charts with the Starc bands.
The Starc bands are going up and down continuously.
Hey Vicky…never apologize for asking questions. I’m a newbie too and constantly have questions pop up that I’m sure I’ve read the asnwers to a hundred times. It’s all part of learning and more importantly “making it stick”. What may seem like a simple basic question can be the trigger that finally makes sense.
To me…[U][B]identifying[/B][/U] a pattern is the hardest part of learning how to trade. I’m always wondering if what I’m seeing is a legit setup or if I’m being faked out. Maybe I just need more time to learn to “trust” the patterns. After we get the pattern identification down then I think our success will be determined by how [U][B]disciplined[/B][/U] we are in following our rules.
Evening Star.
Dark Cloud.
Short Engulfing pattern (both body and wick)
[B][U]Long[/U][/B].
Morning doji Star
Long Engulfing pattern (both body and wick)
Piercing pattern (be careful with this one).
[U]Make sure these patterns are located on their relevant Bollinger bands - short on the upper BB and long on the lower BB.[/U]
For a full and close understanding of these patterns in detail and their formations go to the following hyperlink (include it it your favourites section on your internet browser)…
[B]If you have as I have - a string of timeframes…20, 25 30, 35, 40, 45, 50 mins and 6 different pairs, you will have more than enough trading opportunities to keep you very busy!![/B]
tymen,great to see u still posting something cos i thought u might leave us in the lurch of studying the old method of candlestick trading… but well it still does make me profit… im still waiting ur post on new method sir…
This is the reason that I spent quite a bit of thread last year recommending
GFT Dealbook which is the most ideal trading program out there for specialist candlestick trading.
Many posters at the time, took my advice, and switched from MT4 to Dealbook.
No, it is the plain morning star pattern that is not as strong as its counterpart - the evening star pattern.
The morning doji star pattern is the recommended one to trade.
Also, what if the patterns form on the mid BB when we have a retrace on a huge up move/downward move ?
Never trade a pattern unless it is on the upper/lower Bollinger bands!!
The site included has quite the number of patterns as reversals. Even if I consider only the strong ones. Can I trade off them ?
Certainly!!
The trouble is that some of the patterns use too many candles, eg the [U]inside [/U][U]up[/U] or [U]outside up [/U]patterns.
The extra candles to confirm these patterns eat into your potential profits.
It is not alway necessary to have many candles to confirm a pattern.
Given that the Bollinger band is going down strongly, and we have a string of red candles, the temptation here is to enter short and go with the “trend”.
However, we never enter a trade mid stream.
As soon as we enter this one, the trade will go against us with green candles!!
Hi Tymen
I have in my library a book called “Candlestick Charting Explained” by greg morris / Litchfield. Would you recommend it as study text book for learning candlesticks?
If yes would you recommend reading it from cover to cover or focus on specific parts (This book is nearly 500 pages long).
Thanks
Rafael
If yes would you recommend reading it from cover to cover or focus on specific parts (This book is nearly 500 pages long).
I think we need to be careful here.
You can know all about candlesticks, every pattern, their origin, their history and philosophy.
[B]You can be a walking encyclopedia on candlesticks - but unable to trade successfully!![/B] :eek: :eek:
This thread specializes in using only a few proven candlestick patterns and concentrates on the [U]trading tactics[/U] needed to get above average pips in a very short time.
[B]
It is important to be able to [U]actually trade[/U], and not just have a head a big as a basket ball, full of candlestick head knowledge.[/B]
In this chart, I failed to get the 2nd amount entry, but no matter.
The price action went down as you can see.
I was able to grab the screen print of the exit (blue dashed line) as the price went down to hit the bottom starc band.
A nice trade of only 8 pips with the spread already included.
I traded this with 5 minilots for 1 amount.
(2 amounts would have given me a one standard lot).
The profit is shown in the top right hand corner.
It took about 15 minutes to get this profit.
Hi Tymen,
Don’t know if you realize that everybody can see your Acc info on the last screens.
Unless you don’t mind, after all we are “under us” hmmm
Thanks for your educations I know I need them.
