Third candle bounce | Page 14 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

MT4 candle-by-candle manual backtesting 9 replies

Indicator for average candle size for up or down candle? 1 reply

How to make EA that send Open Price of Candle for every new candle 5 replies

Day's first H4 candle correlation to daily candle 14 replies

Correlation between first 4 hour candle and daily candle 1 reply

Attachments: Third candle bounce
Exit Attachments

Third candle bounce

  • #261
  • Jun 15, 2024 7:27pm Jun 15, 2024 7:27pm
Quoting Artcool
{quote} Although the long term trend on this pair is currently obvious, it's not often the case in Forex. I like to make sure setups applied mechanically have a positive expectancy, even a slight one, and then apply a bias on it. Otherwise, it would be one of those thousands and thousands of systems here with subjective rules, changed every day that gives negative expectancy in real trading in live accounts. If we would have to apply the long term obvious bias, there would be no added value to a simple stochastic oscillator or a MA crossover.
Everything's an average, even the candle. Everyone has their own view on the market. I'm not looking for mechanical rules. I look for opportunities. Third candle bounce shows one way to look for opportunities.
1.02^200
  • #262
  • Jun 16, 2024 2:16am Jun 16, 2024 2:16am
Quoting Lazar83
I finally managed to find some time and test this gem of a simplicity on forex tester, i had just time to do GBPUSD this weekend. So idea was to test last year of trading in most simple mechanical way on D1 by placing buy limit and sell limit order with 0.5% risk per trade, based on rules and without second guessing the trend and overthinking the trades. These are the results from the trading from 2023.06.05 till 2024.03.25 (till then i had forex data downloaded tick by tick). {image}
hi ! Nice result, can you detail the entry model you’ve used. There is already several way to trade the strategy on this thread
  • #263
  • Jun 16, 2024 7:47am Jun 16, 2024 7:47am
Quoting david79454
{quote} hi ! Nice result, can you detail the entry model you’ve used. There is already several way to trade the strategy on this thread
Hi David,

The entry was as described on the first page, the only difference was that i ignored setups if the wick of the first candle covered the second candle, and if the difference of the body and the wick was less then 15 pips on average i would place limit order on the closing of the first candle. But these were the small changes, all in all keep the rules from the first page as guidance. Everything else will come with practice and previous experience.

The idea was to have mechanical system with minimum 2:1 ratio, and simple set and forget....i almost managed to do it, since i moved some trades to BE...regrettably.
All in all it was profitable trading week.
Help to be helped.
  • #264
  • Jun 16, 2024 4:53pm Jun 16, 2024 4:53pm
Subscribed! I like the chart clear and neat, without indicators and other stuff that are disturbing.
I hope this thread goes on for long time!
  • #265
  • Edited 1:33am Jun 17, 2024 1:17am | Edited 1:33am
Hello,

EURGBP D timeframe, if i understand well, it is now developing the third candle, since i don't have time during the day to watch the charts, i can put a buy order at the level of second candle high with sl at the level of the second candle low. RIght? I understood that the refining using lower tf is better option, but since i cannot, i would like to ask 2 questions:
1) is it this one (chart attatched) a good setup, and now we are waiting for the third candle?
2) can i use JUST daily tf without using smaller TF?

Thanks very much i really like it
Mirko
Attached Image(s) (click to enlarge)
Click to Enlarge Name: screenshot.png Size: 89 KB
Click to Enlarge Name: screenshot.png Size: 91 KB
  • #266
  • Jun 17, 2024 4:12am Jun 17, 2024 4:12am
Subscribed!
One question: some broker use the daily and 4 HR candle that start (and end) at different time than others, example Activtrades uses London time for the start of the daily and 4 hour candle, but if markets use new York time for the start of those candles.
So for example while with Activtrades I have a setup, with ic markets I don't have it, because the charts have different daily and 4 HR candles,I hope I am clearing explaining the issue.
Is this discrepancy a problem?
Thanks
Okrim
  • #267
  • Jun 17, 2024 4:33am Jun 17, 2024 4:33am
Quoting okrim
Subscribed! One question: some broker use the daily and 4 HR candle that start (and end) at different time than others, example Activtrades uses London time for the start of the daily and 4 hour candle, but if markets use new York time for the start of those candles. So for example while with Activtrades I have a setup, with ic markets I don't have it, because the charts have different daily and 4 HR candles,I hope I am clearing explaining the issue. Is this discrepancy a problem? Thanks Okrim
I never have problem with different brokers. If your trading method is sensitive with candle stick formation, you need to backtest again using your particular broker.
My opinion: sensitive methodology won't be good for long run, it will get confusion to the users.
Automated Trader Base on Price Action, Fibonacci, Imbalance and Liquidity
PA: EURUSD Return This Month: na
  • #268
  • Edited 6:53am Jun 17, 2024 6:17am | Edited 6:53am
Quoting Menelicche
Hello, EURGBP D timeframe, if i understand well, it is now developing the third candle, since i don't have time during the day to watch the charts, i can put a buy order at the level of second candle high with sl at the level of the second candle low. RIght? I understood that the refining using lower tf is better option, but since i cannot, i would like to ask 2 questions: 1) is it this one (chart attatched) a good setup, and now we are waiting for the third candle? 2) can i use JUST daily tf without using smaller TF? Thanks very much i really like...
do not use the sunday candle per your chart. it distorts your view. it is not a full day candle. compare with other brokers like fxcm, ic markets .........
as for myself and for good measure, i prefer the 2nd candle to close above/below the 1st candle high/low.
if you use d1 as entry time frame, remember to check one or two time frames higher for direction.
ITB - Seeing Orderliness amongst 'Randomness'
  • #269
  • Jun 17, 2024 6:27am Jun 17, 2024 6:27am
Quoting okrim
Subscribed! One question: some broker use the daily and 4 HR candle that start (and end) at different time than others, example Activtrades uses London time for the start of the daily and 4 hour candle, but if markets use new York time for the start of those candles. So for example while with Activtrades I have a setup, with ic markets I don't have it, because the charts have different daily and 4 HR candles,I hope I am clearing explaining the issue. Is this discrepancy a problem? Thanks Okrim
you have to make do with what your broker has. or keep on comparing with other brokers.
they all use their own servers, with different times starting the day and are different from one another.
what the brokers offer you are CFDs. they whether forex, metals, commodities, indices, all differs from actual pricing from the Exchange.
if you want standardization, trade the futures which only shows what the one Exchange shows, just like there is only one Dow Jones Stock Exchange.
ITB - Seeing Orderliness amongst 'Randomness'
  • #270
  • Jun 17, 2024 9:03am Jun 17, 2024 9:03am
Quoting Menelicche
Hello, EURGBP D timeframe, if i understand well, it is now developing the third candle, since i don't have time during the day to watch the charts, i can put a buy order at the level of second candle high with sl at the level of the second candle low. RIght? I understood that the refining using lower tf is better option, but since i cannot, i would like to ask 2 questions: 1) is it this one (chart attatched) a good setup, and now we are waiting for the third candle? 2) can i use JUST daily tf without using smaller TF? Thanks very much i really like...
Refinement is still an option for entry, since you already can see where the breaking move started. That'll reduce your DD, but you can also miss the setup if price doesn't reach LTF entry.
1.02^200
  • #271
  • Jun 17, 2024 10:06am Jun 17, 2024 10:06am
Quoting Menelicche
Hello, EURGBP D timeframe, if i understand well, it is now developing the third candle, since i don't have time during the day to watch the charts, i can put a buy order at the level of second candle high with sl at the level of the second candle low. RIght? I understood that the refining using lower tf is better option, but since i cannot, i would like to ask 2 questions: 1) is it this one (chart attatched) a good setup, and now we are waiting for the third candle? 2) can i use JUST daily tf without using smaller TF? Thanks very much i really like...
IMO, ideally, the 2nd candle closes above/below the 1st candle's high/low. I prefer a limit order at the 1st candle's high/low on a retracement, with a stop loss above/below the 2nd candle's high/low. But it's better to hear from those who are more experienced with the strategy.
He bought? Dump it!
  • #272
  • Jun 17, 2024 10:17am Jun 17, 2024 10:17am
Quoting Inthebox
gj potential buy. {image}
gj long result
Attached Image (click to enlarge)
Click to Enlarge Name: screenshot.png Size: 7 KB
ITB - Seeing Orderliness amongst 'Randomness'
  • #273
  • Jun 17, 2024 1:03pm Jun 17, 2024 1:03pm
Thanks everyone for answering, very kind.
In the box, about your trade, very good, but just to understand about your gj long, you enter late, because the setup was three candles back or I am wrong?
See attached image thanks!
Attached Image (click to enlarge)
Click to Enlarge Name: Screenshot_20240617-200446.png Size: 27 KB
  • #274
  • Edited 2:31pm Jun 17, 2024 2:19pm | Edited 2:31pm
Quoting okrim
Thanks everyone for answering, very kind. In the box, about your trade, very good, but just to understand about your gj long, you enter late, because the setup was three candles back or I am wrong? See attached image thanks! {image}
d1 is not my set up time frame. it is my directional time frame. it tells me that previously at that level price shot up. so if price came back to the same level again it may some how find that kind of support also.
my set up was in the lower time frames where one uses it to refine entries. you see it is all fractals.
the big time frame and the small time frame have around the same level.
what is your reaction when i say h3 is my entry time frame, then it is all perfect right?

trading is not like precise science or math where a level is determined by a single straight line.
trading is more like art where a level is using a big paint brush drawing across a zone.
Attached Image (click to enlarge)
Click to Enlarge Name: screenshot.png Size: 4 KB
ITB - Seeing Orderliness amongst 'Randomness'
  • #275
  • Jun 17, 2024 2:36pm Jun 17, 2024 2:36pm
Quoting Inthebox
{quote} d1 is not my set up time frame. it is my directional time frame. it tells me that previously at that level price shot up. so if price came back to the same level again it may some how find that kind of support also. my set up was in the lower time frames where one uses it to refine entries. you see it is all fractals. the big time frame and the small time frame have around the same level. what is your reaction when i say h3 is my entry time frame, then it is all perfect right? trading is not like precise science or math where a level is...
I say "amazing!", and I thanks you for your insights and inspiration.
Now I understand, please provide more chart and information if you want.
Cheers Okrim
  • #276
  • Jun 17, 2024 9:08pm Jun 17, 2024 9:08pm
gj observation time.
Attached Image (click to enlarge)
Click to Enlarge Name: screenshot.png Size: 6 KB
ITB - Seeing Orderliness amongst 'Randomness'
  • #277
  • Jun 17, 2024 11:31pm Jun 17, 2024 11:31pm
Quoting Inthebox
gj observation time. {image}
Yes nice, let see how it develops!
  • #278
  • Jun 17, 2024 11:39pm Jun 17, 2024 11:39pm
Quoting okrim
{quote} Yes nice, let see how it develops!
consolidation and break out move. but which direction? i do not have to mention that.
could be pre or during frankfurt open. if not then it's london.
Attached Image (click to enlarge)
Click to Enlarge Name: screenshot.png Size: 9 KB
ITB - Seeing Orderliness amongst 'Randomness'
  • #279
  • Jun 17, 2024 11:46pm Jun 17, 2024 11:46pm
Quoting Inthebox
{quote} .........and break out move.......... {image}
Well, a fake-out move could also be a possibility.
Success = Practice + Patience + Persistence
  • #280
  • Jun 17, 2024 11:59pm Jun 17, 2024 11:59pm
Quoting Inthebox
{quote} consolidation and break out move. but which direction? i do not have to mention that. could be pre or during frankfurt open. if not then it's london. {image}
I am monitoring 15 minutes tf indeed, now the price is ranging sitting on the level of the 2nd candle high, it would be interesting to see the price going lower piercing that level for a bouncing up, that could be an opportunity to go long, right?

Amazing, it ls like a sniper
Okrim
Attached Image (click to enlarge)
Click to Enlarge Name: Screenshot_20240618-065627.png Size: 40 KB
1 trader viewing now