Candle Stick Pattern & Fibonacci Retracement

Hi there

This is my 1st thread. I am going to post my trade and it is based on simple method however it's Powerful.
The key is how you read the signal from Simple japanesse Candle Stick Chart and Determine the Target Price by using Fibonacci Retracement.

Based on my experience, i have collected pips by this method. Ok, 1st of all, let me show you the power of Bearish Engulfing Pattern and Bullish Engulfing Pattern. There are many patterns we can get from candle stick chart. And you can apply this method on any time frame. However, i suggest you use Bigger time frame.

You can read my previous post from my previous Thread in Mouteki Subfolder.
http://www.forexfactory.com/showthre...t=10832&page=6

Ok guys, let the show begins!!



Leo

It looks to me like you are using bars in the charts shown from your link.

Herewith i give an example of USD/JPY which had made it's perfect price projection at level 161.8 fibonacci.
Set the 1st signal ( Bearish Engulfing pattern ) at level 100 fibonacci and set the 2nd signal ( Bullish Engulfing pattern ) at level 0. By this way, you can know where the price would be. Once the price over reaches the level 76.4 fibonacci, usually it will hit the level 161.8.


Leo

This is my newest trade. The Tripple TOP are one of the powerful sign of trend reversal. And Double Bottom also do the same. If u switch the chart into 15 minutes chart, there is a Bearish Engulfing Pattern which indicates trend continuation.


Leo

Hi,

Great post but i have a feeling that these patterns are tending to fail more often then not. Just lately usdchf on the 4hr failed TWICE.

But i have been using a somilar strat. Still demoing it, though.

Good work, Leo.
This method looks simple.....but it's pippin man...

Will eagerly follow your thread. Do you mind me posting also...??

Happy Trading

i havent trADED with usd/chf. I will take a look.


Leo

Sure... pls give me comment... i'd love to see your trade...


Leo

I've just seen your attachment. u are actually use 30min chart. And i found several mistakes, like you did not put the fibonacci correctly. U also did not notice the pattern correctly Try to use bigger time frame like 1day or weekly. U have to be patient. Sometimes the price consolidates before it bounches. If it goes against u, it means.. Hey,,, we can not predict the price exactly right? And through all of the trades, even professional traders still have their own mistakes. Loss profit happens ! We have to face it. It's the risk of trading. So, maybe it's better if u tried on virtual mode 1st. Then, after u are confident, u go live. Coz thats what i do...
thanks for your response, mate !


Leo

yeah thats what i thought.

What i realised is some candle formation marks a move...
from these formation, these marker candles could move the price for a certain amt of pips. Since i my style is naturally scalping i have found this method of identifying pin(with confirmation) or a bullish engulfing candle as a trade marker.

What usually happens is that these candle usually retraces a little, allowing me enough time to re-enter at confirmation price and when the next candle cuts...it usually cuts thru in accordance to what the 'marker candle' indicates. Seldom you get a candle that looks similar to the other. usually when price retraces and breaks the 'marker candle' high, i will be out, proly abt -10 to -15 pips. So far still demoing these price action candles. i will see if it works for me.

One thing which is important. U have to set the fibonacci level 0 and level 100 correctly before u enter a trade... Pls learn from the attachment i posted before.

Leo

It seems to me that the UJ went down to the Daily Pivot and reversed. It does look like it is rolling over on the Daily Chart however.

here is a picture of some fat in the money sticks. is it ok if others weigh in

The monthly chart on the UJ looks bullish. Do you think?

here is a beautiful trade. I just don't see any interesting formations-only red

leo.. from your previous post can you explain how did you do the fibo? Which high and low did you pick? And can you explain how to recognize the evening star?

TQ

Leo & friends

What do you about this one...?

I'd say you need to see another daily bar or more. Nothing definitive yet. Think maybe it will go to 78.6% level (0.7920) before possibilly turning down. That is also where a fib projection 100% (0.7914) off the 1/10/07 low hits.

Note that where I find 78.6% level is different from your chart is because the 0 and 100 levels have candles with long wicks I use the closing price to draw from. There are some who recomended this rather than highs/lows.

How abt these two indicators .. i am tryin to work around with them for sum candle stick Reversal and pattern Recognition with ease have a look and hope someone can make it better ! .. lets make it always pipping

Just have Ex4 file .. i wish i could get hold of MQ4 as well but have a look !