So it was you!!! You took HoGster’s money!!!
Y’see…y’see what happens ST, you think some guys are mates and what happens??
First chance they get they stop you out of your short and bugger off to watch the Dragons with a big fat Havana in their gobs !
Everyday is a learning curve here boy !! :18:
LOL!!! Hog… well I’m in and if PA hits 3020, I’ll chuck on another short.
Shorted price coming back through my trend line at 3012 RC. Put my stop at 1-3035, no target in place yet.
EDIT: Well that didn’t last long then did it??
The Americans have woken up lively! It did help my EUR/AUD Long break through the Weekly Pivot, though. Seriously, sorry about the trade. I guess now RC and I have collective guilt.
It’s ok big boy, sending you The Point of Separation tonight I’m still up beat about it all. Although now ( around the 1-3050’s) might be another good short
Not in the least. 30’ish down on a trade off the daily is well within parameters for my comfort zone. Now if it breaks the seventies I might get the jitters! :15:
What chapter will we cover after candlestick patterns Hog? Just curious…
To me EU looks like it will want to test the high of sept 17 again. Btw Simon that EURAUD long you’re in. Very nice trade there mate. Big pin bar rejection of the fib at a key level turned support. Looks very clean. I’m sure you had other tools providing confluence to show the probability of the trade!
EDIT: had to fix the typos!
Well see there is a question Aesthetic. We could go on pretty much endlessly discussing candlestick patterns but at some point we’re going to have to ask, “What do we do with them?”
The floor has always been open to discuss anything at any time. But at some point we’ll need to get to the actual trading, we’ll need to start looking for a strategy
So here’s what I think we should do. Admittedly over the last week or two my speed at getting through this has been pretty poor. So I’ll try to get cracked through as much as possible, or at least enough of the basics as to get us going, so that we can begin to post some live (recorded) charts and point out what we’re looking at, why we’re looking at it and what we’re doing about it.
We’ll do the stars, get some chart recordings up and discuss the rest as we go. I have a couple of books downloaded that give some very basic strategies. We could record the testing of those to see how they go.
Failing that, I’m happy to go in any direction you guys want
Looks to me like that guess is not too far off the money Aesthetic, not much to stop it as far as I can see
Thank you and yes, that one was a riot of trendlines, EMAs, Fibs, S&R, PA - I’d have been letting myself down had I not taken it lol. I’m now taking intraday Longs within the overall move, it’s like earning a salary this week.
Morning and Evening Stars
The first of our 3 candle formations, and the first of the stars is the Morning and Evening Stars. For the sake of speeding things up a little I’ve found an image that contains both.
The first of the formations here is the Morning Star. Admittedly the example shown above is not the best in the world but for illustration it will do.
The Morning Star is a 3 candle reversal pattern and it appears at the bottom of a down move. The first of the 3 candles is a down (bearish) candle. The second candle has a very small body, or is a doji, again the wick is not important to the pattern, and the third candle is a Bullish candle which must close deep into, or above the body of the first candle
The Evening Star is just the opposite. It is a 3 candle reversal pattern which forms at the top of an up move. The first candle is Bullish, the second candle has a very small body, or is a doji, and the third candle closes deep into, or below, the body of the first candle.
According to Mr C, the emergence of the small second candle, in either move, is a signal of a deadlock between buyers and sellers and the completion of the pattern now shows that the prior trend is now vulnerable to a set back.
As always, if the pattern appears at a previous Support/Resistance level, it carries more weight.
Shooting Star
The shooting Star is a one candle reversal signal that comes at the top of an up move. It should have a very small body and a long shadow to the upside which is a a great deal bigger than the actual body. Again for the sake of speed I have lifted this image directly from Mr C’s book. I know I probably shouldn’t do that but hey ho!
Below is an image a shooting star in a real chart. As you will see the colour of the body of the actual star is not really important although a bearish star may be considered to be slightly more significant than a bullish star.
Again, as with all formations, this carries more weight if it confirms a prior level of importance, which in this case would have been a resistance level
Your contribution has been impressive regardless of the speed lol! We all have lives outside of trading mate.
Posting some live charts with what we’re looking at and our opinions on it sounds like a good plan. I’ll leave the strategy decision on the table for everyone to think about. Reason I say this is because everyone trades differently and if we try to define a specific strategy for the purpose of this thread you’re bound to get a **** load of newbies flooding in looking for a signal service lol.
One thing I would like to say however is I hope we touch on SMA’s and EMA’s briefly down the line as I literally have no experience with them. I’m aware of the common ones 21,50,100,200 etc but it would be nice to come to terms with how they can be used to add weight to a trade opportunity.
Inverted Hammer
Th Inverted Hammer reversal signal is just the same as the Shooting Star. It has the same shape, it is a one candle reversal signal, it has a small body with a long upper shadow. However, the inverted hammer comes at the bottom of a down move.
Again, not a classic example shown below, but give me a break guys, I haven’t even had breakfast yet !!
As you can see the market is moving down, then a candle with a small body and a very large wick appears, the market then changes direction. The colour of the body of the inverted hammer is not important. However, I would like you to read what Mr C has said about the inverted hammer;
“It is important to wait for bullish verification on the session following
the inverted hammer.
The reason bullish verification of the inverted hammer is important is
because the price action that forms the inverted hammer appears bearish.
To wit, on the inverted hammer session the market opens on, or
near its low, then rallies. The bulls fail to sustain the rally and prices
close at, or near, the lows of the session. Why should a line like this be
a potentially bullish reversal signal? The answer has to do with what
happens over the next session. If the next day rises above the real body
of the inverted hammer, it means those who shorted at the opening or
closing of the inverted hammer day are losing money. The longer the
market holds above the inverted hammer’s real body the more likely
these shorts will cover. This could spark a short covering rally which
could lead to bottom pickers going long. This could feed upon itself and
a rally could be the result.”
So, confirmation should be sought before acting on the inverted hammer.
My EUR/AUD trade was, among other things, a beautiful touch rejection of the 21 EMA, which was above the 50 and the 100 at the time, in order and fanning out nicely.
You’re probably spot on with the notion that if we go too far down the strategy road we may be in danger of having people looking for a signal service. I have a book written by Kathy Lien which gives a basic 5 minute time frame strategy which I was going to go through.
However, I’m thinking it might be better to find a strategy that is already detailed on the forum somewhere and record the back testing of it. I have no idea how long that recording would last though so it’s something to be looked at.
As for the moving averages, I have no problem with that idea if anybody wants to move on to it now. I think we have enough candles patterns to get us started so it might be good to look at something else.
Admittedly though, since I don’t have a great deal of experience with them either, I might be looking for the three wise men (Messrs Yunny, Carter and Templar) to give their views on them if they get time. It would be good to hear if there is a preference between the different moving averages, or whether they are liked at all!
I think that Carter might disapprove, but I am certainly a moving average man and am certainly happy to chip in any thoughts if/when we get there. Not sure how wise they’ll be, though!
I actually think it would be even better if ‘Havana Boy’ ( 
)DID disapprove of moving averages, at least it would give ‘the other side of the argument’ if you see what I mean
I propose this topic: “how to set a Bias”
Usually newbies fail at this, and it is why the always seem to be in the wrong side of the trade…
Moving averages can fall in this category.