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Trading Naked - Reading Candlesticks and other Price Analysis

  • #41
  • Jan 24, 2007 8:31pm Jan 24, 2007 8:31pm
More reversal patterns:

Dark Cloud Cover: This is a two-candle pattern showing reversal at the top of an uptrend. The first candle shows a bullish, fairly large real body. The second candle is bearish and opens above the previous candle's high, closing at least half way (50%) into the previous candle. This is a strong reversal signal, and is one of the major patterns in Japanese Candlesticks.

The reverse of the Dark Cloud Cover is called the Piercing Pattern. This is a two-candle pattern showing reversal at the bottom of a downtrend. The first candle shows a bearish, fairly large real body. The second candle is bullish and opens below the previous candle's low, closing at least half way (50%) into the previous candle. Again, this is a strong reversal signal.


Harami: The harami pattern is the reverse of the engulfing pattern. A long real body is followed by and engulfs a smaller real body. They do not necessarily have to be of different colours (bullish/bearish), but if they are, it adds weight to the possible reversal. This is a minor reversal signal and should be used with confirmation.

Examples to follow!

Keep on pippin'!!

D.
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  • #42
  • Jan 26, 2007 4:33pm Jan 26, 2007 4:33pm
For those following this thread, message #37 shows a great triple top/head & shoulders setup. I am posting the results of the resultant breakdown which shows about an 80 pip drop.

As stated earlier conservative play for these types of formations is to wait for penetration of the lowest low between the three tops or the neckline area for head & shoulders. Aggressive traders can enter sooner. My daily trade style places a position on all pairs I am trading when they are stopped out unless there is no obvious trend. Because of this I entered at point #1 labelled on the chart.

Good luck all & happy trading!

D.
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  • #43
  • Jan 30, 2007 8:27am Jan 30, 2007 8:27am
Great subject.........

I would like to add another candelistick reading for EUR/USD and CHF/USD

hope it could be helpful

thanks
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  • #44
  • Jan 30, 2007 8:33am Jan 30, 2007 8:33am
Chf/usd

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  • #45
  • Jan 30, 2007 9:27am Jan 30, 2007 9:27am
what a great thread! I love candle patterns
  • #46
  • Jan 30, 2007 10:05am Jan 30, 2007 10:05am
Thanks for the informative posts Romandan!! I am cautiously long on CHF due to a rising channel (tunnel) formed over the past few weeks. The last week of consolidation & the numerous doji's make me think chf may be heading bearish.

Good luck in your trades!

D.


Quoting Romandan
Chf/usd

  • #47
  • Jan 30, 2007 10:20am Jan 30, 2007 10:20am
One of Romandan's posts shows a 'Morning Star' formation. A star is a candle that has a fairly small real body that gaps away from the real body of the candle before it (the bodies do not overlap at all). If this star is a doji (same opening & close), it is called a 'Doji Star' and may have significant strength in showing a possible reversal. Also of note is that the colour of the star is not important.

The morning star is a three-candle, bottom reversal pattern starting with a bearish candle with a fairly large real body. The next candle is the star. Either bullish or bearish, it opens and closes lower than (gaps away from) the real body of the first candle. The third and last candle in the formation is a large bullish candle that penetrates significantly into, or engulfs the real body of the first candle.

The reverse of the morning star occurs in an uptrend, signifying a top reversal. It is called the Evening Star. The first candle is a bullish candle with a fairly large real body. The next candle is the star - either bullish or bearish it gaps away from the real body of the first candle. The third candle is a large bearish candle that penetrates significantly into, or engulfs the real body of the first candle.

I have attached an example of an evening star. It is not 100% textbook (the star is rather large), but then again, they do not have to be to be useful. Remember; Confirmation is king!

Good luck & happy trading!

D.
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  • #48
  • Jan 30, 2007 10:21am Jan 30, 2007 10:21am
It's great to see you here Basilides! Hopefully we can attract the attention of and get some input from some of the more experienced traders here

Take care,

D.

Quoting Basilides
what a great thread! I love candle patterns
  • #49
  • Jan 30, 2007 10:45am Jan 30, 2007 10:45am
Hello Daemien

You are doing good job here ............i would like to add more clear view about CHF/USD ........

What i want to say is that we could use the candelistick patterns with Strong Support and Resistance levels using ( Tops ,Buttoms,Fibo,Trenlines,Chanels,Div) with this way we will filter the levels and have more phsiological studies about the ( the Bulls & Bears) to desicded when to put the orders. and at the same time we will filter the Candelistick it selfves when we Know......why we have a strong bearish direction pushed by BERAS......
I am using this teqnic for more than 4 years and it works profitable.

Sorry for my weak english

thanks
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  • #50
  • Jan 30, 2007 11:38am Jan 30, 2007 11:38am
Quoting Daemien
It's great to see you here Basilides! Hopefully we can attract the attention of and get some input from some of the more experienced traders here

Take care,

D.
thank you, I have been around for quite a while, almost a year now, but just as a 'silent observer'. Sucking up all the knowledge here in what is, admitedly, a perpetual process. I must admit my own trading is not primarily based on candle patterns but I certainly find them (and longer-term chart patterns) very helpful in confirming trades just taken or about to be taken.
  • #51
  • Jan 30, 2007 3:15pm Jan 30, 2007 3:15pm
It really is amazing the conflicting news which makes candlestick trading during such a flat environment very difficult. I have traded the CHF exclusively since going live and I cannot find another time period where the market was this flat for this long. Much better than expected economic figures yet housing in a slump. Talk of a rate decrease at the end of last year but now an actual increase in rates have been discussed. Dow booming but a major correction is predicted in some circles. Tomorrow should be an interesting day no doubt.

For the sake of news, here are some links I like:

http://www.futuresmag.com/cms/future...forex/forex+tv (twice daily updates)

http://www.fxstreet.com/rates-charts...spx?id=USD/CHF (strictly for the swiss- 75% bearish at time of post)

http://www.forexnews.com/FI/default....er&loc=ydtrade (I like to see what this guy is up to)
"Its not where your at, but where your coming from"
  • #52
  • Jan 31, 2007 9:56am Jan 31, 2007 9:56am
+100 WITH CHF/USD

+30 WITH EUR/USD WAITING FOR 1.3050


CANDLES WORKING
  • #53
  • Jan 31, 2007 10:48am Jan 31, 2007 10:48am
testing testing the posting
  • #54
  • Jan 31, 2007 5:51pm Jan 31, 2007 5:51pm
Hi Romandan,

Sounds like you have a great system. I use support, resistance & fibos as well - mainly to predict breakouts or possible reversals. Candlesticks are great but it's always nice to have some sort of confirmation for our actions...

Good luck in your trades! I'm short in chf as we speak...

Take care,

D.


Oh.... and your english is Fine!!! Don't worry about it

Quoting Romandan
Hello Daemien

You are doing good job here ............i would like to add more clear view about CHF/USD ........

What i want to say is that we could use the candelistick patterns with Strong Support and Resistance levels using ( Tops ,Buttoms,Fibo,Trenlines,Chanels,Div) with this way we will filter the levels and have more phsiological studies about the ( the Bulls & Bears) to desicded when to put the orders. and at the same time we will filter the Candelistick it selfves when we Know......why we have a strong bearish direction pushed by BERAS......
I am using this teqnic for more than 4 years and it works profitable.

Sorry for my weak english

thanks
  • #55
  • Jan 31, 2007 5:55pm Jan 31, 2007 5:55pm
The amount of knowledge to absorb definitely never ends . I've looked at a lot of systems over the past few months... what is working for you?

Take care,

D.



Quoting Basilides
thank you, I have been around for quite a while, almost a year now, but just as a 'silent observer'. Sucking up all the knowledge here in what is, admitedly, a perpetual process. I must admit my own trading is not primarily based on candle patterns but I certainly find them (and longer-term chart patterns) very helpful in confirming trades just taken or about to be taken.
  • #56
  • Jan 31, 2007 5:57pm Jan 31, 2007 5:57pm
Hey thanks for the links athalon! They're in my favorites now...

This definitely has been an up and down week. Strong signals seemed to pan out but only briefly and then reverse. A lot of chop on the charts...

I don't pay a lot of attention to fundamentals - is this your preferred method of trading??

Take care,

D.



Quoting athalon7
It really is amazing the conflicting news which makes candlestick trading during such a flat environment very difficult. I have traded the CHF exclusively since going live and I cannot find another time period where the market was this flat for this long. Much better than expected economic figures yet housing in a slump. Talk of a rate decrease at the end of last year but now an actual increase in rates have been discussed. Dow booming but a major correction is predicted in some circles. Tomorrow should be an interesting day no doubt.

For the sake of news, here are some links I like:

http://www.futuresmag.com/cms/future...forex/forex+tv (twice daily updates)

http://www.fxstreet.com/rates-charts...spx?id=USD/CHF (strictly for the swiss- 75% bearish at time of post)

http://www.forexnews.com/FI/default....er&loc=ydtrade (I like to see what this guy is up to)
  • #57
  • Jan 31, 2007 6:04pm Jan 31, 2007 6:04pm
Definitely some stronger indicators today.. hopefully today's movement signifies the start of a trend - this choppy week sucks lol

D.



Quoting Romandan
+100 WITH CHF/USD

+30 WITH EUR/USD WAITING FOR 1.3050


CANDLES WORKING
  • #58
  • Feb 1, 2007 4:52am Feb 1, 2007 4:52am
Quoting Daemien
Hi Romandan,

Sounds like you have a great system. I use support, resistance & fibos as well - mainly to predict breakouts or possible reversals. Candlesticks are great but it's always nice to have some sort of confirmation for our actions...

Good luck in your trades! I'm short in chf as we speak...

Take care,

D.


Oh.... and your english is Fine!!! Don't worry about it
hello Daemien
Yeeeh nothing like Clasical trading ........ this week was great for me i made

+120 pips from GBP/USD here
http://www.forexfactory.com/showpost...8&postcount=10

+110 pips with USD/CHF
+40 with EUR/USD
+60 with USD/CAD Selling from 1.1840 ( see the chart) Triple Tops.
we still have chance entreing with breaking 1.1750 down( with Wedge formation) to 1.1600
or 1.1840 up to 1.1970
-45 with USD/NZD

and you know what........ the most important part using this Tecnic that you could control your Money Managment plans easily by emplementing 1:2 ( SL to Target) thats mean if you make 10 orders and u make only 4 profitable orders totaly you would have a postive profit.
i will try from time to time putting a live chances.

by the way i dont care about the Fundmental
and please keep doing more explainations and i ll be with you.

Today is a risky day with NONFARM ....... i ll be out of the market .
Regarding.
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  • #59
  • Feb 14, 2007 8:31am Feb 14, 2007 8:31am
+90 pips with breaking 1.1750 and Retesting the broken Support

Have a good trades for you
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  • #60
  • Feb 14, 2007 11:11am Feb 14, 2007 11:11am
Some great chancess for today ....... i was so busy to put them here .....

just for your attention !





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