Attachments: Candlesticks Trading

Candlesticks Trading

#1
First Post: Edited Nov 28, 2010 5:48am Sep 20, 2010 9:33pm | Edited Nov 28, 2010 5:48am

freedomsg
| Joined Sep 2009 | Status: Trader | 305 Posts

Hi All, I am interested in candlesticks trading. I look at weekly and daily charts.

Attached is the EJ daily chart from FXDD. It is a dark cloud reversal pattern.

Books for candlesticks knowledge

The following books give you a more indepth of candlesticks trading if you are interested ... it is from Steve Nison

- The candlesticks course
- Japanese candlesticks charting techniques
- Beyong candlesticks

I welcome discussion and posting. By doing this, we will learn more about candlesticks trading.

Attached Image (click to enlarge)

Click to Enlarge

Name: ej.gif
Size: 12 KB

#2
Sep 21, 2010 4:25am Sep 21, 2010 4:25am

T.E.Lawrence
| Joined Jan 2009 | Status: Trader | 3,071 Posts

There's no 'should' in forex. Pattern only says that something might happen - not that it is going to happen. You're asking for step-by-step system? There is no such thing. Trading is a skill, not science. You need experience and practice to analyze PA behavior.

So, after you have some analytical tools you use in trading, such as reversal patterns - start observing what is happening when such pattern is created, what market is doing, how it's behaving - is it really always a reversal pattern? Or maybe more often there is continuation? What price action is doing after that pattern before reversing, and what it is doing before continuation.

Don't assume a pattern will 'work'. Wait for some confirmation. Sometimes there is, sometime PA goes so fast that you're not able to enter the trade. You can't trade every signal. It's not possible.

And always check bigger time frames. Learn about trading and it will come to you.

#3
Sep 21, 2010 4:39am Sep 21, 2010 4:39am

ha-pattern
Joined Sep 2008 | Status: hardcore chartist | 2,173 Posts

While of course the last poster is right, it can also be fun to guess.
Here's my input, from a speedy glance and which doesn't project anything:

Attached Image (click to enlarge)

Click to Enlarge

Name: ej Candlesticks Trading thread revised.gif
Size: 15 KB

That top level does look awfully solid, though, to flip up and over the same distance.
On the other hand, a terribly strong push covered territory from below, with a retrace; the level just below the current one is very solid, if also short and breaking up a run.

(Ignored the lagging indicator.)

#4
Sep 21, 2010 4:39am Sep 21, 2010 4:39am

freedomsg
| Joined Sep 2009 | Status: Trader | 305 Posts

Quoting T.E.Lawrence

Disliked

There's no 'should' in forex. Pattern only says that something might happen - not that it is going to happen. You're asking for step-by-step system? There is no such thing. Trading is a skill, not science. You need experience and practice to analyze PA behavior.

So, after you have some analytical tools you use in trading, such as reversal patterns - start observing what is happening when such pattern is created, what market is doing, how it's behaving - is it really always a reversal pattern? Or maybe more often there is continuation? What price...

Ignored

Thank you Lawerence. So what is yr take on the EJ daily chart? Thanks

#5
Sep 21, 2010 4:48am Sep 21, 2010 4:48am

T.E.Lawrence
| Joined Jan 2009 | Status: Trader | 3,071 Posts

Quoting freedomsg

Disliked

Thank you Lawerence. So what is yr take on the EJ daily chart? Thanks

Ignored

No signal for me. PA is ranging - check 1h.

#6
Sep 21, 2010 6:32am Sep 21, 2010 6:32am

kk007
Joined Feb 2009 | Status: Commercial Member <- Don't trust me | 2,976 Posts

This book did extensive statistics and showed that there is little edge when using candlestick pattern alone.

http://www.forexfactory.com/showthread.php?t=252472

#7
Oct 13, 2010 2:26am Oct 13, 2010 2:26am

Pip26
Joined Nov 2009 | Status: Following X to get the effect | 1,302 Posts

Here are my charts bro.

Attached Image(s) (click to enlarge)

Click to Enlarge

Name: ec13.gif
Size: 14 KB

Click to Enlarge

Name: eg13.gif
Size: 12 KB

Click to Enlarge

Name: eu13.gif
Size: 10 KB

Click to Enlarge

Name: gu13.gif
Size: 15 KB

#8
Oct 13, 2010 2:33am Oct 13, 2010 2:33am

freedomsg
| Joined Sep 2009 | Status: Trader | 305 Posts

Thank you Br

#9
Oct 13, 2010 2:34am Oct 13, 2010 2:34am

freedomsg
| Joined Sep 2009 | Status: Trader | 305 Posts

Simple and Sharp... I like it.

#10
Oct 13, 2010 2:42am Oct 13, 2010 2:42am

Pip26
Joined Nov 2009 | Status: Following X to get the effect | 1,302 Posts

Quoting freedomsg

Disliked

Simple and Sharp... I like it.

Ignored

Thanx bro

#11
Oct 13, 2010 8:48am Oct 13, 2010 8:48am

freedomsg
| Joined Sep 2009 | Status: Trader | 305 Posts

Hi Pips26, I manage to short eu after a doji star appear in an uptrend. And a look alike shooting star appear plus soc overbought. Short at the following candle ... nice 40 pips as it was moving to the 20 MA. If we look at the daily tf, soc also overbought . Thanks for yr charts,. Do cont to post it ya...

Attached Image (click to enlarge)

Click to Enlarge

Name: eu.gif
Size: 17 KB

#12
Oct 14, 2010 8:24am Oct 14, 2010 8:24am

freedomsg
| Joined Sep 2009 | Status: Trader | 305 Posts

A bullish Engulfing candle at 4 hr.Countertreand with SOC turning up.. Long when the candle open... want to grap a quick 30 pips.

Attached Image (click to enlarge)

Click to Enlarge

Name: uc.gif
Size: 19 KB

#13
Oct 14, 2010 9:12am Oct 14, 2010 9:12am

freedomsg
| Joined Sep 2009 | Status: Trader | 305 Posts

Quoting freedomsg

Disliked

A bullish Engulfing candle at 4 hr.Countertreand with SOC turning up.. Long when the candle open... want to grap a quick 30 pips.

Ignored

Pocketed 30 pips

#14
Oct 15, 2010 1:05am Oct 15, 2010 1:05am

Pip26
Joined Nov 2009 | Status: Following X to get the effect | 1,302 Posts

Looking for reversal price action at highlighted areas.

Attached Image(s) (click to enlarge)

Click to Enlarge

Name: auh4.gif
Size: 13 KB

Click to Enlarge

Name: euh4.gif
Size: 10 KB

Click to Enlarge

Name: gjh4.gif
Size: 16 KB

Click to Enlarge

Name: uch4.gif
Size: 13 KB

#15
Oct 15, 2010 2:08am Oct 15, 2010 2:08am

freedomsg
| Joined Sep 2009 | Status: Trader | 305 Posts

Hi Pips26, I just get 30 pips from the AU 4 hr open candle. The price went down and a doji starappear. Price sitting on the 20 MA and Soc is in oversold.. went long the rest is history....

Thanks for the charts... I will look at it.

Attached Image (click to enlarge)

Click to Enlarge

Name: au.gif
Size: 18 KB

#16
Oct 15, 2010 2:14am Oct 15, 2010 2:14am

Pip26
Joined Nov 2009 | Status: Following X to get the effect | 1,302 Posts

Quoting freedomsg

Disliked

Hi Pips26, I just get 30 pips from the AU 4 hr open candle. The price went down and a doji starappear. Price sitting on the 20 MA and Soc is in oversold.. went long the rest is history....

Thanks for the charts... I will look at it.

Ignored

Good pip grabbing bro.. keep it up..