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Trading Naked - Reading Candlesticks and other Price Analysis

  • #81
  • Apr 4, 2007 11:44pm Apr 4, 2007 11:44pm
Quoting WTB
One important thing to remember about candlestick formation is that it is indeed more important WHERE in the chart they occur than the actual formation in itself. I mean, a hammer or a morning star right off a confluence of support (let's say a fib retracement + a previous resistance level turned now support) has a much stronger chances than a morning star in the middle of nowhere.

So, in my opinion, searching for candlestick formation without drawing levels of possible support/resistance is futile.

Another point: price targets. How do you guys go about price targeting when it comes to candlestick trading? what does the "theory book" say?
this is the best idea to use candles.........

some times the revers candles only help to confirm the trend reverse from the strongest SUP or RIS level in this case we should increase our target and run profit.

and some times Dojes ,Evening ,morning star.....could alert me early near to the strong level iam concentrating in and its high profit chance we should take.

the mean idea i don,t use the reverse candles if i dont have a technical reason !!!

I discovered amazing relation between Japanies candles and Divrenges explaining the Market Syciology with great profit.

another thing every reverse candle has a special SL and special Target
Every order...... we shouldn,t risk more than 2% whatever our SL is 150 pips or 40 pips.
  • #82
  • Apr 5, 2007 2:39am Apr 5, 2007 2:39am
Quoting WTB
One important thing to remember about candlestick formation is that it is indeed more important WHERE in the chart they occur than the actual formation in itself. I mean, a hammer or a morning star right off a confluence of support (let's say a fib retracement + a previous resistance level turned now support) has a much stronger chances than a morning star in the middle of nowhere.

So, in my opinion, searching for candlestick formation without drawing levels of possible support/resistance is futile.

Another point: price targets. How do you guys go about price targeting when it comes to candlestick trading? what does the "theory book" say?
I agree WTB, where the formations occur is whats important. I use pivot points in my trading, and look for the formations around the points. Those same points are also used to determine price targets.

Regards,
Clansman
  • #83
  • Apr 6, 2007 12:44pm Apr 6, 2007 12:44pm
Quoting accrete
... if you wish to invest in a nice hardback book get "Beyond Candlesticks"... a search at Amazon or Barns and Nobel should do the trick.

Thom
Steve Nison is who introduce candlestick technique to western traders. Like accrete i recomend "Beyond Candlesticks" but first i say "Japanese candlestick charting technique".

I also trade naked, using fib, but recently i had try with pivot points also.
Hope Scientist can find this books
"Abandon all hope, you who enter here" La Divina Commedia, Dante Alighieri
  • #84
  • Apr 6, 2007 3:15pm Apr 6, 2007 3:15pm
Quoting Romandan
I discovered amazing relation between Japanies candles and Divrenges explaining the Market Syciology with great profit.
Romandan, which indicator (and what settings) have you found best suited to spot divergences on long term charts (daily, weekly and monthly)?

Thank you.
  • #85
  • Apr 7, 2007 12:00am Apr 7, 2007 12:00am
Hi WTB

the Best indecator mesuring Divrenges ( MACD Histogram defult settings) confirmed by RSI (9) on 20,30,40,60,80.
i am using the RSi for mesuring Divrenges+mesuring Top and buttoms+Bear and Bull erea.


Regards

Romandan
Attached Image
  • #86
  • Apr 7, 2007 6:06am Apr 7, 2007 6:06am
Quoting Romandan
the Best indecator mesuring Divrenges ( MACD Histogram defult settings) confirmed by RSI (9) on 20,30,40,60,80.
i am using the RSi for mesuring Divrenges+mesuring Top and buttoms+Bear and Bull erea.
Hello Romandan, your answers are very much appreciated. Do you mind if I ask a little bit further?

- What do you mean by RSI on 20, 30, 40, 60, 80? Could you please elaborate a little bit more on your usage of RSI?

- After the Divergence of MACD and a candle stick formation (a inverted hammer in the last screenshot you posted right off the tripple top), do you wait for RSI to cross below 80 or 70 to enter short, or do you enter off the inverted hammer breakout?

- How come you use the MACD's histogram for divergences instead of the regular fast line? most of the articles I have read about MACD divergences use the line. What made you change to the histogram?

Once again, thank you for your feedback.
  • #87
  • Apr 7, 2007 7:05am Apr 7, 2007 7:05am
i don't think it's a good idea to use RSI and MACD at the same time. yes, i know, theoretically one is leading and the other is lagging... but from my experience it's either one or the other.
i'm using rsi with candlesticks: if i see a reversal pattern, THEN i look at rsi (5!) - if it's somewhere between 25-70, i'm not doing anything. if it's below or above these limits, i open a trade.

Quoting Romandan
Hi WTB

the Best indecator mesuring Divrenges ( MACD Histogram defult settings) confirmed by RSI (9) on 20,30,40,60,80.
i am using the RSi for mesuring Divrenges+mesuring Top and buttoms+Bear and Bull erea.


Regards

Romandan
Nihil Sine Deo.
  • #88
  • Apr 7, 2007 1:39pm Apr 7, 2007 1:39pm
Quoting Romandan
Hi WTB

the Best indecator mesuring Divrenges ( MACD Histogram defult settings) confirmed by RSI (9) on 20,30,40,60,80.
i am using the RSi for mesuring Divrenges+mesuring Top and buttoms+Bear and Bull erea.


Regards

Romandan
Hello

The MACD indicator in the pic isnt a OSMA?
Candlestick formation(price action) + fib retr + s/r + divergence = great trading system.
  • #89
  • Apr 7, 2007 2:29pm Apr 7, 2007 2:29pm
Quoting WTB
Hello Romandan, your answers are very much appreciated. Do you mind if I ask a little bit further?
OF COURSE NOT
- What do you mean by RSI on 20, 30, 40, 60, 80? Could you please elaborate a little bit more on your usage of RSI?
please read Jhon Hayden book (Trend Determination) you will know alot about using RSI as Divrenges and trend direction.
- After the Divergence of MACD and a candle stick formation (a inverted hammer in the last screenshot you posted right off the tripple top), do you wait for RSI to cross below 80 or 70 to enter short, or do you enter off the inverted hammer breakout?
No i won,t wait...... RSI help me to measure tops and buttoms on the chart also you would find all the details in the book.

if you see the last chart i discovered the top at 1.9800 which was in the same level on RSI (72) with the last top 1.9717. that mean we had double top in RSI

RSI levels to identify the trend direction only.( bulls and Bears area)

i entred after the Shooting star confirmed by the divrenges caused by the tripple top formation from 1.9760 the next day opening. (market Sentiment study caused by touching the historical risistance).
butting the SL in the top of the high and my target is 1:2

of course i would enter from 1.9800 if i have an exact level with the tripple tops but the ring between them around 95 pips( 1.9900 to 1.9800) which so high for my money mangment strategy.

- How come you use the MACD's histogram for divergences instead of the regular fast line? most of the articles I have read about MACD divergences use the line. What made you change to the histogram?

The most important thing with Histogram is that you could discover the divrenges using the Columns even comparing to the last 2 Columns ...........faster than the MACD LINE some times you cants discover that by the eyes and it gives you an early alert its my own 7 years experince........belive me Wall Street guys will not give you all the secrets with there Hardcover books cost 100$ only .....no way u should discover by yourself.

by the way i am using a trading system alerting me with DIV seen and Candles reversing.

( watch the last chart)

Once again, thank you for your feedback.
you are wellcom
  • #90
  • Apr 7, 2007 2:36pm Apr 7, 2007 2:36pm
Quoting Scrat
i don't think it's a good idea to use RSI and MACD at the same time. yes, i know, theoretically one is leading and the other is lagging... but from my experience it's either one or the other.
i'm using rsi with candlesticks: if i see a reversal pattern, THEN i look at rsi (5!) - if it's somewhere between 25-70, i'm not doing anything. if it's below or above these limits, i open a trade.
Every one has his own strategy if you make a profit with this way please dont leave it at all iam giving you my own use and it works good for me.
as i said iam using RSI for another things not only Divrenges.
by the way using oversold and overboght is BUSHIT as you say....
iam not speaking english very well so forgive me.
  • #91
  • Apr 7, 2007 2:41pm Apr 7, 2007 2:41pm
Quoting kihl
Hello

The MACD indicator in the pic isnt a OSMA?
Candlestick formation(price action) + fib retr + s/r + divergence = great trading system.
Exactlly the same.

By the way my trading system is 40% automaticly system ( the candles reversing+the Divrenges Signals) iam using them only for alerting me but not depend on them 100%.....i should use the Technical analaysis Tops&buttoms+Fibo+Waves+Trendlines.

Regarding
  • #92
  • Apr 7, 2007 6:51pm Apr 7, 2007 6:51pm
I didn't realize this thread had been revived

For those of you interested in divergence, try this indicator!!

I don't think you will be disappointed!

D.
Attached File(s)
File Type: mq4 FX5_Divergence_v1[1].1.mq4   13 KB | 738 downloads
  • #93
  • Edited Apr 8, 2007 3:08pm Apr 7, 2007 11:53pm | Edited Apr 8, 2007 3:08pm
Quoting Daemien
I didn't realize this thread had been revived

For those of you interested in divergence, try this indicator!!

I don't think you will be disappointed!

D.
thanks Deamien

it looks like the one iam using in my own system but not at Metatrader.

most of the candles formation in Metatrader are not true. dont trust candles in Metatrader at all.


i just discovered that the modertaors were alerting me butting the link and removed it {link removed, see rule #3} ???? idont know why????
  • #94
  • Apr 8, 2007 11:44am Apr 8, 2007 11:44am
Live Chance........

AUD/USD reverse from Historical Risistance seen at Monthly chart it has a great history as a High since 1996 reverse more than 3000 pips as seen in the chart he have Evening star + Bearish Ingulf and Daily Divrenges this pair moved more than 550 pips in one month without reversing ...... no way

I would suggest selling from ( 1.8160/1.8170) SL above the high and targeting basiclly 1.8066 and we would following the trend.
Fundmentally $ still strong after the NON FARM data and bears have a strong bushing here as seen with candles.

Regarding

Romandan
Attached Image
  • #95
  • Apr 30, 2007 9:15am Apr 30, 2007 9:15am
Back again from the Jail

Be back soooooooon
  • #96
  • Apr 30, 2007 9:16am Apr 30, 2007 9:16am
Quoting Romandan
Live Chance........

AUD/USD reverse from Historical Risistance seen at Monthly chart it has a great history as a High since 1996 reverse more than 3000 pips as seen in the chart he have Evening star + Bearish Ingulf and Daily Divrenges this pair moved more than 550 pips in one month without reversing ...... no way

I would suggest selling from ( 1.8160/1.8170) SL above the high and targeting basiclly 1.8066 and we would following the trend.
Fundmentally $ still strong after the NON FARM data and bears have a strong bushing here as seen with candles.

Regarding

Romandan
-54 pips ........................no problem
  • #97
  • Sep 4, 2007 11:33pm Sep 4, 2007 11:33pm
Does this method work in all timeframes?
  • #98
  • Sep 5, 2007 7:37am Sep 5, 2007 7:37am
hello saint_berzer

i surprised activating this thread ......long time not writing here

in my opinion its beter to analayis using Daily chart candles formations and entring orders by 4H chart......

on of my success orders today was GBP/USD Evning Star comes with bearish Wedge.......

breaking the wedge here comes among with breaking the wedge with success broken trend re-test.....
+100 pip with this order from 2.0140 ....
Attached Image (click to enlarge)
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  • #99
  • Sep 5, 2007 7:41am Sep 5, 2007 7:41am
Entry chart
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  • #100
  • Sep 5, 2007 7:42am Sep 5, 2007 7:42am
Entry Chart with 4H candle
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