CHART 6 >>>
This 5 min chart shows what happened to the price action after I made the exit.
The cross lines show where I made the exit.
As you can see, the price action went down much, much further.
A large profit could have been made on this trade.
Double if you got the 2nd entry in also. 
So why did I not follow this through?
I had another matter I had to attend to of a domestic nature.
So time was pressing, and I simply had to close the trade. 
tymen,would like to ask, if we found a pattern,we look into 5 min starc rite? if goin short,we need look closely if price touch 0.7 line,we short rite? does the mid b.b play a part? n we enter short at 0.7 n exit at lower band⌠how do we actually know if the price have exhausted?
[B]The charts I have posted above are different in size.
I am experimenting with Photobucket.[/B]
[U]This is what I recommend for Photobucket usersâŚ[/U]
After putting your screen print into Microsoft Paint for editing, click [B]image/stretch-skew[/B] and then resize your image to 54% in both horizontal and vertical.
Save the resized image!!
When loading into Photobucket, choose the 17" size (not the 1 megabyte - too big).
Then download the 54% image (not the full sized one!!)
[B]You will find the download to be extremely fast if you do it this way.[/B] 
Loading the full sized image takes ages!! 
When finished tick the small box at your image, then click â[U]generate HTML [/U][U]code[/U]â, which is below your images.
Choose code number 4 and copy/paste this into your post.
Correct.
if goin short,we need look closely if price touch 0.7 line,we short rite?
Correct.
does the mid b.b play a part?
[U]As I said in the above trade example - yes.[/U]
In the 5 minute chart, the mid BB should be going in the same direction as our trade.
If it is going in the opposite direction, we will be put under stress in trying to get our profit!!
n we enter short at 0.7 n exit at lower band⌠how do we actually know if the price have exhausted?
If we are trading short, and the price is going short, [U]and the bands are going downhill steeply, then we should wait before exiting.[/U]
[U]We wait until the lower starc bands moves inside the lower Bollinger band.[/U]
This is an indication that the trade will end soon.
[B]I will be posting more trade examples.
You will see all these things happen and hopefully, this will answer all your questions.[/B]
Hi Tymen,
First of all, thank you for your excellent teachings and the time you are putting into this, it is truly appreciated!
I am reading the first thread about candlestick trading and I have some questions about a trade opportunity I found today using the KC-BB-MACD entry method you suggest on this page: http://forums.babypips.com/newbie-island/10812-joy-candlestick-trading-learning-experience-163.html (and the following pages)
In short, the strategy is this; find an âEvening starâ pattern forming on the upper BB on a 1 hour chart. Go to 5 min chart to get the best short entry. In the 5 min chart, draw vectors of MACD and middle BB, then draw a resulting median vector, this vector decides where in the Kernel channel you should enter short.
Please have a look at this chart and give me your thoughts.
My conclusion was that the median vector in the 5 min chart was mostly horizontal, maybe slightly âbearishâ so my conlusion was to enter around the lower part of the Kernel Channel. So I intered around 1.38795. But as you can see the the price went up very much and I had to close the position, i.e. my trade was a loss.
What did I do wrong or was this just a case of bad luck. What would you have done? Please discuss take profit level and stop loss.
Best!
Fredrik, Sweden
If I may offer my thoughts.
I believe that your evening star is of low quality. In a good evening star, the third candle should close below the midpoint of the first candle. In your example this is not the case.
Also the formation appears when the BB are tilting heavily upwards which as I remember it is also a caveat according to Tymens method.
[QUOTE=vicky_ag;112433]
As, for identifying pattern I am on MT4 and stuck with 15, 30 and 1 hr for patterns which are few and far in between. It becomes quite a wait to look for them.[/QUOTE]
Hi Vicky,
My broker uses MT4 too.
With a few tricks you can get all the timeframes you like, and you can make it looking like Tymen screenshots. 
Look here:
Take this zip file, there youâll find:
Put indicators in the [âŚ]\experts\indicators folder
and template in the [âŚ] emplates folder
Bye
For EUR/USD 1 hr:(eveneing star, the second one)
EUR/USD enguf 15 mins:
I am aware of this matter.
It was first brought up by the great poster Vucan Classic in my first thread,
#261 page 27.
[B]Here is a copyâŚ[/B]
#261 (permalink) 04-10-2008, 08:55 PM
VulcanClassic
Master Contributor and MemberJoin Date: Dec 2007
Location: Cayman Islands
Posts: 349
Tymen,
I have been getting so much from this thread I thought Iâd try and give what little I know back.
For all the metatrader users, here is how to get a 20 minute chart:
*The first step can be done in two places. Donât do it first if you use other expert advisors you donât want to affect. If youâre doing several pairs doing it first will save time.
1.Go to tools/options/expert advisors. Check âallow live tradingâ and clear âAsk manual confirmationâ , check âallow DLL importsâ and clear âconfirm DLL function callsâ.
2.Open a chart and select the 5 minute timeframe.
3.Open the navigator, go to scripts and open period converter.
4.On the inputs tab change âExtPeriodMultiplierâ to 4. If you skipped step 1, it can now be done on the âcommonâ tab.
5.Now go to âfile/open offlineâ and choose your chart. Look for it, it will be there. Whichever indicator youâre using, make sure visualization is on all timeframes or you wonât see it.
It will tick even though it says offline, but thereâs a catch, you have to keep the 5 minute chart open and you canât change times on either the 5min or the 20min. For one you can change times on, you need to open another chart.
Hopefully that helps and we can all be on time with Tymen.
[B]But now have a look at my next post!![/B]
#307 (permalink) 04-15-2008, 08:50 AM
cbarnett808
NewbieJoin Date: Jul 2007
Location: Indianapolis
Posts: 29
⌠I hate to say it, but Metatrader appears inadequate for this approach- despite VulcanClassicâs excellent find about converting timeframes.
[B]Post #307 from page 31.[/B]
Now look at the followingâŚ
Note that I am not trying to advertise Dealbook here - you use what you want to - just trying to give you the best trading advantage you can get!!
[B]Page 31âŚ[/B]
#308 (permalink) 04-15-2008, 05:35 PM
cbarnett808
NewbieJoin Date: Jul 2007
Location: Indianapolis
Posts: 29[B] as anticipated⌠[/B]
âŚMetatrader just doesnât cut it for this strategy.
Donât get me wrong, I like Metatrader and all, but Dealbook360 just blows it out of the water. Plus, Dealbook makes Metatrader look REAL old (NTTAWWT).
I trade at work during the day with the window open in the background, and this will save me a lot of jumping around between screens (when Iâm supposed to be working). Plus, I really want to get my screen set up like Tymenâs. The visual effect is very impressive.VulcanClassic (and others), you really should download it and at least give it a go!
[B]and this one from page 31âŚ[/B]
#309 (permalink) 04-15-2008, 06:09 PM
VulcanClassic
Master Contributor and MemberJoin Date: Dec 2007
Location: Cayman Islands
Posts: 349
I agree,
I too have abandoned MT4. Once U get used to Dealbook, thereâs no going back. Iâve got a workspace for each pair and 9 timeframes in each, similar to Tymens. Too bad you can only load 83 charts before it quits.
Iâm in the process of opening a live account to keep the charts.
I just want to give them the absolute min $250 to keep the charts and do my one live trade per month to avoid the âinactivity feeâ. There is pressure to deposit $2500. They want you to trade with them which is fair enough. But for now I just want the charts.Trade on.
Because this is an evolutionary thread under development (now complete), this approach was deleted in the earlier stages and a superior method was developed.
This is what you now need to be reading.
It is the first PDF.
The final updated PDF is coming soon.
Click on the hyperlinkâŚ
Dear [B]Vicky [/B]:
As you can see from your own post, I cannot possibly see anything from those thumbnails.
You really do need to use full size pictures on the forum.
Then I am very willing and eager to help!!
If you do not know how to do this, I can send you a private message with full explanation.
Once you have mastered this, your posts will take on a new dimension and you will feel a lot more confident.
I also recommend that you abandon black backgrounds and go for white ones.
They may not be as sexy, but are much easier on the eye and have a higher resolution.
[B]That is, detail is easier to see on white backgrounds.[/B]
Tymen,
Please do send me the pm. Would love to have that. No knowledge is waste.
Btw, you can check the images on these links:
(White candles are the bearish candles and hollow ones are bullish)
Sorry for the image quality and resolution the damn vista software doesnt seem to work properly.
If it is not clear I will put another with the suggested white background.
Tymen,
The evening star on 1hr did pan out. But hell, they took 17 hrs to pan out well. That included, yet another morning star on both on 1 hr TF. Took that as well. Put a complete faith in candlesticks.
In the end,made a massive 220 pips on both the EUR/USD and GBP/USD trades.
Had my heart in my mouth as, I saw 310 pips loss at one point of time.
Side effect of dealing only on basic level of candle trading, you think?
Btw, the engulf was a total failure.
Edit: One more failed engulf on 25 min TF(on Dealbbok Web) for EUR/USD. If it is any help, time was 11:15 as in dealbook web.
Hmmmmm.
17 hours!! :eek:
What is going on here?? 
In the end,made a massive 220 pips on both the EUR/USD and GBP/USD trades.
Had my heart in my mouth as, I saw 310 pips loss at one point of time.
Good for you but why the huge drawdown?
You [U]should not [/U]have the âheart in my mouthâ experience.
There is something wrong here.
Side effect of dealing only on basic level of candle trading, you think?
No!
Candlestick trading is highly reliable.
Were you trading with too many lots perhaps?
Where if any, was your stop loss?
I will now answer your charts.
You will need to post here regularly.
I think more tuition is in order as well as careful monitoring and feedback.
What I will do is put the method of posting charts right here.
Then everyone can see it.
I will write it in Microsoft Word first, and save it in My Documents for future enquires.
But firstly, those charts.
To [B]vicky_ag[/B] :
[U]Your first 1 hour trade[/U] shows a classic incorrect use of the Bollinger bands.
Go to the following hyperlink and read posts #2 and #3 entitled âThe Correct Use of the Bollinger Bandsâ
Study the material carefully.
Then compare it with the BB set up on your chart.
You will see your mistake.
[U]Now your 15 minute chartâŚ[/U]
There are [U]two types [/U]of engulfing pattern.
The long pattern which is found on the lower BB. This is traded long.
AND
The short pattern which is found on the upper BB. This is traded short.
I see on your chart a long engulfer on the lower BB.
This should be traded long.
Did you trade it short!! :o :o
[B]Finally the following comment.[/B]
I cannot see how you can trade candlesticks with MT4.
It is yesterdays charting package.
Can you turn that grid off ? - it is very distracting for good trading.
Can you get the candles to touch one another?
[U]I have used MT4 so I speak from experience.[/U]
It is like comparing a domestic sewing machine to an industrial one.
MT4 is next to useless for consistant quality trading.
Some bokers like it.
Of course!!
They have a big advantage over you if you use it!!
MT4 can get you out of trouble at a pinch.
But for proper full time trading, you need a proper professional charting package.
Here is one area where you can get an advantage, considering that forex is difficult enough as it is.
I strongly suggest you download and trial a demo Dealbook - just for fun.
Like Vulcan Classic, I donât think it will be long before you realise just how much superior the Dealbook program is.
It will allow you to get a real handle on your trading.
And it is so much faster.
It will be like going from an old bomb car into a nice new one.
You will wonder why you did not upgrade earlier.
Dealbook is not only for candlesticks - it will greatly improve your trading in any system you use.
Now I am not advertising for GFT, I get no incentives.
Having used MT4, I know the difference and I am just trying to help you.
I was trading off 1 hr and put the Stop order on the high point of the evening candle formation.
Traded the lowest lot size I can trade.
0.01 lotsâŚ10 penny a pip trade.
I think I need to re-write this:
Drawdown was in number of pips and not money.
I had a drawdown of upto 31.0 dollars on a collective basis ie EUR/USD and GBP/USD combined. If taken individually,
GBP/USD: Max drawdown was 110 pips($11) on both the lots, making it 220 ($22) pips loss. Final outcome 150 pips ($15).
EUR/USD: Max drawdown was 35 ($3.5) on both lots, making it 70($7) loss. Final out come was 60 pips ($6).
BTW, the engulf was a total dud.
I had another dud engulf on 25 min TF on EUR/USD, just a couple of minutes ago. (using dealbook as suggested).
I also think, a proper tution is in order. Thanks for taking time to help me out.
Tymen,
I dint get the long engulf and the short engulf part.
If we look at the image posted, there are a total of 4 whole candles circled out. Out of them, the first one is a bullish candle(hollow one), pointing a possible change in price direction. Second one, the bearish candle(white one), engulfs the whole bullish candle.
So, is it like if we have a engulf on th lower BB on any TF, we should go short and vice-a-versa ??
I see it clearly now.
[B]Yes, you have made a serious mistake.[/B]
For a pattern to be an engulfing one, the real body of the second candle must totally mask the real body of the first.
[U]This is not the case in your chart!! [/U]
In forex, the wicks have special requirements thusâŚ
On the lower BBâŚ
The 2nd candle has a longer lower wick.
On the upper BBâŚ
The 2nd candle has a longer upper wick.
So, is it like if we have a engulf on th lower BB on any TF, we should go short and vice-a-versa ??
If we have an engulfer on the [U]lower BB[/U] on any timeframe, we should go [U]long [/U]and vice versa.
