Now I have been working very late recently, gathering evidence to keep that troll, mp6140 off the forum.
I need to rest so I will be back tomorrow.
We need to start looking at the starc bands and their approaches to the Bollinger bands.
Come on Tymen!! We need you back in here! We’ve been waiting for so long!
(kidding)
When the Starc bands are in the middle of the Bollinger band area, they are safe to trade, according to the rules we have set.
But what exactly do we do in the region of the upper/lower BB?
Here is an illustration of what I mean >>>
By tymen1 at 2009-03-13
The blue lines are the BB, the pink area, the Starc bands.
Let us look at the possibilities and see how it affects our trading.
[B]Here are the 2 posibilities that you will encounter when the starc approaches the BB [/B] >>>
By tymen1 at 2009-03-13
How are we going to discern which way the starc will go?
To answer this question we will look at the senario backwards by referring to point A.
Point A is a very important point.
It is a point where the starc band, having passed outside of the Bollinger band, now [U]passes back inside the band.[/U].
This point, when it occurs, will become critical in our trading of the starc bands.
[B]In the development of this entire candlesticks thread, none of the major methods used are my own work.[/B]
Candlesticks were discovered by Steve Nison.
Starc bands were developed by Manning Stoller.
The multiple amount strategies were developed by very astute traders over a period of time.
The only real work of mine is to put these very fine trading methods into one package.
I now introduce another trading tactic in the use of the starc bands.
I have known about this tactic for some time.
It is a method discovering the onset of new trends.
Mini trends that is.
[B]You will see what I am talking about in the next post.[/B]
[B]Have a look at the following 5 minute Starc band chart.[/B]
It is slightly “cherry picked” in order to explain my new tactic >>>
By tymen1 at 2009-03-13
Here you can see a forex candlestick chart with the Bollinger bands (blue) and the Starc bands (pink).
There are two vertical black lines on this chart.
If you look carefully they are the points where the Starc bands, having been outside the Bollinger bands, now cross inside the Bollinger bands again.
[B]And what happens then?[/B]
In crossover 1 - upper BB…there is an immediate trend down.
In crossover 2 - lower BB…there is an immediate trend up.
[U]The greater the crossover angle, the more dramatic is the trend.[/U]
This discovery, which was not mine, led to the development of a trendfollower trading system.
I incorporate this discovery here and you will find it to be very reliable.
[U]
When the crossover is complete, you then trade in the yellow areas shown.[/U]
When you go [U]short[/U] (crossover 1), you enter short at the first opportunity on the mid Starc band.
When you go [U] long[/U] (crossover 2), you enter long at the first opportunity on the mid Starc band.
[B]In this post, I repeat the previous chart but include the entry points.[/B]
The short entry (crossover 1) is shown in red.
The long entry (crossover 2) is shown in green. >>>
By tymen1 at 2009-03-13
This is a difinitive technical breakthrough in Starc band trading.
It is extremely reliable, and we must now work out how to do exits and also see what to do when the starc band only comes extremely close to the BB but does not actually cross it.
Tymen,
Keep up the good work. I’ve been looking for a way to take a trade anytime.
It seems like those juicy reversal patterns on the other timeframes always occur while I’m sleeping or working. Very frustrating lately.
The market seems choppier than usual lately, possibly because alot of the pairs are at key S/R levels?
Yes, Tess has been saying that too.
But with these Starc bands, its just what we want!!
Note that my previous chart was taken from [B]straight out of the blue.[/B]
It is not related to any particular main chart candlestick pattern.
I simply picked this example because it served my purpose.
We will need to now look at some examples where we indeed have a main chart pattern first.
Hey Tymen, I have been having a bit of a problem with this strat lately(I really wish I remembered to take screen shots). Generally when I trade is in the AM before work and at the NY open so I can get some good movement.
Now at that time I generally find more 3 Green Soldiers or 3 Red Crows happening then any other ‘legitimate’ pattern to trade. But I am having problems with the starc rules that you have put into place.
Say on the 20m EU I have a 3 green soldiers appear. I enter long on the confirmation of the ‘trumpet’. All is going well for about 5 minutes up up up, then according to a Starc that is co-linear with BB is to stay in it until there is a red candle and it starts to diverge/go level. Well not even a few minutes later in the same candle it goes red and closes red.
Now that isnt the problem, since I am ‘LEARNING’ to be patient and dont prematurely exit a trade.
The next candle goes green again and goes up for a bit but starts to diverge from the starc and now it goes to level trading rules. I break even (which I am perfectly happy with, better then a loss)
Level starc trading happens and I make a few pips before its roughly 7 candles away, or the whole trend reverses with no pattern in sight.
I gotta go to work, but I will be back to post another question. I should know the answer to it but I think I just need to hear it again.
Thanks a lot!
[B]Here is another 5 minute Starc band chart taken straight out of the blue.[/B]
Again this one shows an important tactic >>>
By tymen1 at 2009-03-13
Look at that wonderful upward trend!!
Again, the crossover point is shown with a black vertical line.
The 1st acceptable [U]long [/U]entry point is shown.
The yellow area shows the trading area when the Starc bands are [U]going up.[/U]
Various exit points are questioned for the sake of the chart.
But as long as the trade is going up you would not exit.
[U]We notice [/U]that as long as the price action is going up, the Starc bands follow the Bollinger and even cross the BB to the outside.
[U]We now know[/U] that the trend will change dramatically to down when the Starc goes inside the BB again.
[U]So as long as[/U] the Starc remains outside the BB, we do not have to worry about an exit!! 
[U]We can then stay in the trade and collect all the pips as the trend goes up!![/U]
[B]
So where do we exit?[/B]
Well, for a start you keep watch on your main chart.
If you have reached your targets (Fibonacci, mid or opposite BB) - its time to get out.
If there is a sign of direction change - its time to get out.
If the trend keeps going in the main chart, then you need to look at the Starc chart.
In the case above, the Starc is running on top of the BB in the end.
Also the trend is very steep.
Also the green candles are going to extremes above the upper BB.
Sure there was a green candle with a very long lower wick, but that was not the close.
[B]Depending on how astute you are, you would take the exit at …[/B]
-
The green candle with the long upper wick (brilliant if you can get that one)
-
The close of the next green candle (the one with the long lower wick)
-
The close of the red candle - here you would lose quite a few pips but it is still brilliant trading!!
I am now going to analyse quite a few of these starc charts without regard for the main charts.
The purpose of this is to understand and familiarise ourselves with the various starc band situations.
We will then set the rules so that they make complete sense.
Then when we have got it together, we will return to the main charts and candlesticks and put it all together.
Then is the time to look at some sample trades.
Bed time for me now. 
Hi Tymen,
I am a newbie but love trading candlesticks. What do You mean by the MAIN chart? So, The Starch Band only applicable on 5M chart…?
Thanks
Prea
The main chart for his trading can be anything in between 1hr to 20min.
And yes the STARC band is only to be used on the 5 minute chart to figure out entrys/exits.
To Prea :
Welcome to this thread.
It is the ideal and best place for you to start learning candlestick trading.
But you must start at the beginning so…
Read all of what is in this first hyperlink…
In this second hyperlink read from page 142, post #1420 on to the end of page 170.
These are live trade examples.
http://forums.babypips.com/newbie-island/10812-joy-candlestick-trading-learning-experience.html
When you have done all that (yes, I know it is a lot of work - but you do want to trade don’t you?),
then you are ready to start reading and understanding this thread, part 2.
Thanks Much Tymen, Will do it and keep learning from U
Cheers
prea
I have been severely interupted by domestic issues just now.
Thats why my posts have ground to a virtual halt.
This should be solved soon.
I am also researching very diligently as too simplifying the whole matter of the Starc bands.
I have stated this before.
I am not happy with the present apparent complexity.
But good news.
I am making inroads and a better approach is on the way.
I do not apologise for certain changes made as we go along.
Readers have criticized me for this.
But I am out to produce the very best system that is also the simplest to use.
As a teacher trained in mathematics and physics, I have long understood that the beauty of nature is in its simplicity.
I actually just answered my own question. My problem was that I was waiting for the 3 green soldires to FORM on the upper BB. So by the time that happened… the move was pretty much out of steam and it made it very hard to do anything but tread water!
I think that is right atleast. 
lol