I'm loving Candle Sticks, newbie's check'em out | Forex Factory

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I'm loving Candle Sticks, newbie's check'em out

  • #1
  • First Post: Oct 22, 2005 10:26pm Oct 22, 2005 10:26pm
Being a newbi myself this is the first style of charting thats starting to give me an edge on my buy or sell decision. Depending on a bullish or bearish candle stick and what precedes it is a good indicator of whats to come next. The book I'm reading right now is teaching what all the symbols mean, well giving me an intro anyways "forex made easy, by James Dicks" Advanced traders dont like this book as it teaches them nothing but if your just starting out give it a try.


Knowing is half the battle... Is it Sunday open market yet? Sigh...





Mike.....
***Building an EMPIRE one pip at a time***
  • #2
  • Oct 23, 2005 2:27am Oct 23, 2005 2:27am
yup, love them candlesticks... although never really did catch on to their terms, but definitely starting to 'understand' them more and relate them to the real price action .... this will come from spendings hours on end staring at the price action, from 5 minutes - daily charts ...

Ken
Trade what you see, not what you believe.....
  • #3
  • Oct 23, 2005 2:59am Oct 23, 2005 2:59am
Quoting Gyva
Being a newbi myself this is the first style of charting thats starting to give me an edge on my buy or sell decision. Depending on a bullish or bearish candle stick and what precedes it is a good indicator of whats to come next. The book I'm reading right now is teaching what all the symbols mean, well giving me an intro anyways "forex made easy, by James Dicks" Advanced traders dont like this book as it teaches them nothing but if your just starting out give it a try.


Knowing is half the battle... Is it Sunday open market yet? Sigh...

Mike.....
Candles worth watching IMO - doji, spinners, d/tops/bottoms/tweezers, spinners, hammers, inverted hammers. Look for "clean" PA ie. candles stacking up on top of each other, not in congestion or spiky reversal mode.

Watch where they form - primes/half primes, yesterdays low, high, fib areas, higher TF S&R areas, BO's etc.
Learn candle "blending" so you can see what candle looks like on a larger TF. Be aware of what made it up on the lower TF. Is it a continuation formation or reversal? Just some of the things to watch.
cheers
  • #4
  • Oct 23, 2005 4:45am Oct 23, 2005 4:45am
Wow beachie you sure know your candlesticks!

I would add to the list patterns like evening/morning stars which are kinda like Jim's pinbars, harami, thrusting/piercing. Also continuation patterns like 3 advancing soldiers or 3 black crows.

I think the prime book to read in this field are those by Steve Nison.

On a personal note I started with candles but now switched to bars instead! I find it easier to pick out the OHLC and ranges on them nowadays.

Quoting Beachie41
Candles worth watching IMO - doji, spinners, d/tops/bottoms/tweezers, spinners, hammers, inverted hammers. Look for "clean" PA ie. candles stacking up on top of each other, not in congestion or spiky reversal mode.

Watch where they form - primes/half primes, yesterdays low, high, fib areas, higher TF S&R areas, BO's etc.
Learn candle "blending" so you can see what candle looks like on a larger TF. Be aware of what made it up on the lower TF. Is it a continuation formation or reversal? Just some of the things to watch.
cheers
  • #5
  • Oct 23, 2005 5:05am Oct 23, 2005 5:05am
Quoting Isotonic
On a personal note I started with candles but now switched to bars instead! I find it easier to pick out the OHLC and ranges on them nowadays.
yeah...I tend to flick charts from candle to bar....I find patterns easier to recognize with bars, but direction with candles..even throw up a simple line chart from time to time as it can bring clarity to the underlying when things appear a little messy
  • #6
  • Oct 23, 2005 9:23am Oct 23, 2005 9:23am
Quoting Gyva
Being a newbi myself this is the first style of charting thats starting to give me an edge on my buy or sell decision. Depending on a bullish or bearish candle stick and what precedes it is a good indicator of whats to come next. The book I'm reading right now is teaching what all the symbols mean, well giving me an intro anyways "forex made easy, by James Dicks" Advanced traders dont like this book as it teaches them nothing but if your just starting out give it a try.


Knowing is half the battle... Is it Sunday open market yet? Sigh...





Mike.....
Mike,
IMO, the best beginner book on candles is Steve Nison's The Candlestick Course. He is the man who brought candlestick chart patterns from Japan to America. Look for it on Ebay or Amazon. He'll be speaking at the Forex Expo, might even have his book(s) for sale there.

Just a thought, stay away from anything that uses the words "Forex" and "easy" in the same title, sentence, paragraph ... ...
Because helping each other is a good thing.
  • #7
  • Oct 23, 2005 10:06am Oct 23, 2005 10:06am
I have Nison's book. PM me if anyone wants it
~If you fail to plan, you plan to fail~
  • #8
  • Oct 23, 2005 10:32am Oct 23, 2005 10:32am
I usually look at candlesticks to pinpoint my entry or exit (The reversal patterns) because they are usually shown way ahead of most indicators.

I know some people that use candlesticks as their sole indicator (trading stocks though) but it still seems too complicated for me to do that....
~If you fail to plan, you plan to fail~
  • #9
  • Oct 23, 2005 10:49am Oct 23, 2005 10:49am
The Candlestick Course is great. Mentioned above. It is a book that teaches not just tells you about using them. Even asks you to predict what may happen next by only showing part of a chart, then revealing what happened next.

Lou
  • #10
  • Oct 23, 2005 12:29pm Oct 23, 2005 12:29pm
Lou,

Are you talking about the "forex made easy" book or Steve Nison book?
~If you fail to plan, you plan to fail~
  • #11
  • Oct 24, 2005 4:05am Oct 24, 2005 4:05am
There are some interesting articles on this forum on the wisdom of just using candles or bars for trading...do a quick search and read 'em all.

I would hesistate just to base my decisions solely on either, particularly on small timeframes (less than 4h) since these formations can be less significant. I would consider adding other methods to contextualise them - look at Jim's thread for suggestions on using confluence to refine price action (bars or candles) using pivots, fib lines etc...to filter and pick out the 'A' trades.

(Don't wish to rain on anybodys parade here...just thought it'd be worth mentioning.)
  • #12
  • Oct 24, 2005 4:22am Oct 24, 2005 4:22am
Quoting Isotonic
There are some interesting articles on this forum on the wisdom of just using candles or bars for trading...do a quick search and read 'em all.

I would hesistate just to base my decisions solely on either, particularly on small timeframes (less than 4h) since these formations can be less significant. I would consider adding other methods to contextualise them - look at Jim's thread for suggestions on using confluence to refine price action (bars or candles) using pivots, fib lines etc...to filter and pick out the 'A' trades.

(Don't wish to rain on anybodys parade here...just thought it'd be worth mentioning.)
yeah..personally I think it's a waste of time learning more than the 1/2 dozen candle patterns..just the reversal & main continuation & where they appear on the chart...you don't need to know the "3 marching virgins spread on 3 hills under dark sky" pattern to trade
  • #13
  • Oct 24, 2005 6:34am Oct 24, 2005 6:34am
sometimes I don't think you need to even bother knowing the name ...
after awhile, you will just be able to see them ...

them candlesticks definitely need to be played with something else....

Hey beachie41,
is there really the "3 marching virgins spread on 3 hills under dark sky" ????
I'd like to see how that one looks like.

Ken..
Trade what you see, not what you believe.....
  • #14
  • Oct 24, 2005 6:42pm Oct 24, 2005 6:42pm
gcl915

The Candlestick Course is a Course of course.

Lou
  • #15
  • Oct 24, 2005 8:48pm Oct 24, 2005 8:48pm
Candlesticks also nicely manifest a balance of power, so to speak , at certain spreads of time. Who’s prevailing, which mood is dominating, the one of sellers or buyers? The knowledge of this is important and, in my opinion, vital for making a good trade decision.
  • #16
  • Oct 24, 2005 8:54pm Oct 24, 2005 8:54pm
I'm from the old school and never could get into candlesticks.
  • #17
  • Oct 24, 2005 9:18pm Oct 24, 2005 9:18pm
Quoting bluemonkey
I'm from the old school and never could get into candlesticks.
Hey Blue! Why so blue? Wipe that frown of your face before it gets stuck like that! I tried candlesticks too, just like I tried "indicators". I dropped them both rather quickly after finding them to have some value, but not enough to hold my interest. But that's just me. If someone else finds value in them and can trade them, then more power to them. It doesn't matter to me what people use to trade, as long as they're happy, having fun and making a little money

Dial
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  • #18
  • Oct 24, 2005 10:08pm Oct 24, 2005 10:08pm
Quoting diallist
Hey Blue! Why so blue? Wipe that frown of your face before it gets stuck like that! I tried candlesticks too, just like I tried "indicators". I dropped them both rather quickly after finding them to have some value, but not enough to hold my interest. But that's just me. If someone else finds value in them and can trade them, then more power to them. It doesn't matter to me what people use to trade, as long as they're happy, having fun and making a little money

Dial
Hey diallist! Naw I'm not so blue, its just everyone was having a good time talking about candlesticks but I could not relate to it. You know what just hit me? How this saying is sooooooooooooo true! " Do what you love and the money will follow". I looooooooooooooooove the forex markets! At one time I left her and wanted to quit. But my love brought me back. And Man its better than ever. My last 13 trades have been winners due to no small part from what I learned from you guys. I'm starting to get consistant. I mean I'm successful without (gasp!) elliot waves, Gann Time Frames, The Delta Phenom, The Trident Strategy,Murray Math, Drummond Geometry,Adam theory, Astrological Financial forcasting, not that there is anything wrong with them. Like you said ,"more power to them" if thats what works for them. I am so lucky to have access to people like you diallist . You and the rest of the guys here like Merlin and James16 and everyone else have always given me so much postive encouragement. Thank you so much! No REALLY thank you so much! .No one will ever know how much you guys have impacted directly my future for the good. I am very thankful and grateful to be part of this community. Ok everyone back to trading!
  • #19
  • Oct 24, 2005 10:20pm Oct 24, 2005 10:20pm
Quoting bluemonkey
Hey diallist! Naw I'm not so blue, its just everyone was having a good time talking about candlesticks but I could not relate to it. You know what just hit me? How this saying is sooooooooooooo true! " Do what you love and the money will follow". I looooooooooooooooove the forex markets! At one time I left her and wanted to quit. But my love brought me back. And Man its better than ever. My last 13 trades have been winners due to no small part from what I learned from you guys. I'm starting to get consistant. I mean I'm successful without (gasp!) elliot waves, Gann Time Frames, The Delta Phenom, The Trident Strategy,Murray Math, Drummond Geometry,Adam theory, Astrological Financial forcasting, not that there is anything wrong with them. Like you said ,"more power to them" if thats what works for them. I am so lucky to have access to people like you diallist . You and the rest of the guys here like Merlin and James16 and everyone else have always given me so much postive encouragement. Thank you so much! No REALLY thank you so much! .No one will ever know how much you guys have impacted directly my future for the good. I am very thankful and grateful to be part of this community. Ok everyone back to trading!
LOL! Great post Blue! And thanks for the thanks. If I am ever able in some small way to help you or anyone increase their profitablity then that makes me happy. Interesting you should mention Gann. That's my last name. When I told that to Fiji during a phone call, he asked "Any relation to...." and I quickly said "He's my Grandfather". Dead silence from Fiji! And if you've ever talked to Fiji, you know how rare that is! It was too funny!

Blue, after you've made it big in forex and you buy your yacth, we'll have to have lunch together onboard.

Dial

P.S. W.D. Gann is no relation to me that I know of.
sxaxlxvxaxtxixoxnxbxyxgxrxaxcxexdxoxtxoxrxgx
  • #20
  • Oct 25, 2005 12:07am Oct 25, 2005 12:07am
Quoting diallist
Hey Blue! Why so blue? Wipe that frown of your face before it gets stuck like that! I tried candlesticks too, just like I tried "indicators". I dropped them both rather quickly after finding them to have some value, but not enough to hold my interest. But that's just me.

Dial
You don't use indicators????? NO MAs? I guess I'm a little puzzled on what you use to decide to trade but maybe we just have a different understanding of what indicators are. That's my guess. Thanks for any help.
Don Life is expensive, but includes a free trip around the sun.
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