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  • #1
  • First Post: May 19, 2011 11:21am May 19, 2011 11:21am
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If you look at this chart where there is 2 candles that I marked on the hill. Usually when there is one buy and one sell candles formed on the hill and both candles have same body but sell candle has longer tails that indicates mostly high selling, if you look at the charts for precious results it went as far as 300 pips. The chart that I posted it has 2 candles formed on top, but their bodies are different size so I wonder what this signal indicated. Anybody has any experience with candles? Im not interested in online help on my own anymore I want some live suggestion from some real people. Thank you fellas.
Lybi lydey, lybi vragov.
  • #2
  • May 19, 2011 3:10pm May 19, 2011 3:10pm
More than patterns, I am interested in the underlying information we can get from candles. There are a few things that stand out to me.

1. I consider the upper shadow to be selling and the lower shadow to be buying. Note that the last two intervals on the chart are therefore making higher highs, but they are doing so on SELLING.

2. Note that the depth (length) of the selling shadow on the white candle is greater than-
a. The selling shadows of the previous 3-5 intervals.
b. The real bodies of the previous 3-5 intervals. Whether those bodies are white (Open>Close) or dark (Open<Close). This tells me the real conviction is from the sellers on this candle.

3. The buying shadow has more depth (longer) than the real body of the previous interval-a dark candle. This suggests that while more effort was being put in by the bulls, they got less result.

4. The size of the real body of the dark interval (in the circle) is less than the size of the real body of the interval prior. This suggests buying momentum is slowing.

5. The size of the real body of the white candle is larger than the size of the real body of the dark interval just prior. Again, selling momentum is increasing at an increasing rate. Which is another way of saying buying momentum is slowing.

6. Not candlestick based, but we have an outside interval. That is, the last interval has both a higher high and a lower low than the previous interval.

Just a few observations. Hopefully, this thread will grow and we can all learn.
Without VSA, you're playing checkers while the Smart Money plays chess.
  • #3
  • May 19, 2011 10:06pm May 19, 2011 10:06pm
There's lots of balanced pairs and spinning tops in the chart given for study.
I found that one big, balanced pair / spinning top will be
filled in the middle, --- AC, CE
supported below the body, --- AE
or bounced off above the middle --- AG
with a smaller balanced pair.
Thus, B shows the midline of A to support G to create initial expressed momentum from the area,
and H starts a secondary wave of momentum.
The candle the thread starter circled in red shows the initial wave of momentum's top pivot was itself topped. Indeed, the character of the top of the second wave is one of unease, which I shows with its compromised direction in the spirit of the compared groups of candles above.

I'm uncomfortable with guessing at direction, with so few candles. It's possible there's something like a TL to the left of this chart that the red-circled candle crossed over and thus activated newfound interest there.
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  • #4
  • May 19, 2011 10:21pm May 19, 2011 10:21pm
im interested in watching the candles in the time frame below to confirm what i see,

direction, speed, and momentum
AVT INVENIAM VIAM AVT FACIAM
  • #5
  • May 19, 2011 10:31pm May 19, 2011 10:31pm
One thing...volatilaty. I'm not sure when this candle occurred but most likely during a major news announcement. The long wicks show rejection on both ends of the scale and the fact that it ended up lower than the previous candle may suggest an overall bearish sentiment in the current market. This is supported by the fact that this candle appears to form a top (for now).

Blah, blah, blah...what does it mean in pracital terms. If you are already in the market (presumably long) tighten stops to the bottom of this candle to protect profits from further volatility. If you are NOT in the market consider a short entry on close below the low of the candle.

it appears the overall tend is bullish (from what's seen in this chart) so perhaps waiting for a retrace to complete then look at another entry long.

The fact that the apparent volatility didn't really push the market one way or the other, may suggest the long trend is intact (assuming the market stays above the low of this candle).
  • #6
  • May 19, 2011 10:31pm May 19, 2011 10:31pm
Quoting Pip Maker
Attachment
If you look at this chart where there is 2 candles that I marked on the hill. Usually when there is one buy and one sell candles formed on the hill and both candles have same body but sell candle has longer tails that indicates mostly high selling, if you look at the charts for precious results it went as far as 300 pips. The chart that I posted it has 2 candles formed on top, but their bodies are different size so I wonder what this signal indicated. Anybody has any experience with candles? Im not interested in online help...
The last candle is a reversal candle for two reasons.

1. Its body "engulfs" the body of the previous candle making it a bearish "engulfing" candle, bearish because it is heading downward.

2. The long wick at the top of the candle makes it what is referred to as a "pinbar" candle because the wick resembles in pin. This type of candle is a reversal candle.

May I ask, what does "on the hill" mean?

Hidden gap... what are you referring to as an interval?
  • #7
  • May 20, 2011 7:06pm May 20, 2011 7:06pm
What do you guys think fellas?
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Lybi lydey, lybi vragov.
  • #8
  • May 20, 2011 7:17pm May 20, 2011 7:17pm
This is the second chart for USD/JPY to prove and confirm that the buy signal is stronger and we doubled checked that by looking at different time frames. Lets wait and see next week where will it take us

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Lybi lydey, lybi vragov.
  • #9
  • May 20, 2011 7:26pm May 20, 2011 7:26pm
This is third confirmation that makes buy signal stronger. There is a Doji candlestick right after the hammer.
Tell me what you think if you see something else that I don't see even if its a good or bad sign. Thanks

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Lybi lydey, lybi vragov.
  • #10
  • Edited 9:30pm May 20, 2011 9:12pm | Edited 9:30pm
Maybe A, with a little of B:
Attached Image
  • #11
  • May 21, 2011 12:28am May 21, 2011 12:28am
Quoting ha-pattern
Maybe A, with a little of B: Attachment
Can you please explain more?
Lybi lydey, lybi vragov.
  • #12
  • May 21, 2011 1:47am May 21, 2011 1:47am
in my opinion. it is not the pattern that matters, the movement of price in the candle stick.

candle sticks are a part of chart reading, technical analysis
they cut price in blocks of time, indicating

volatility
speed
direction
momentum

price in reality does not stop, is a continues movement of orders, and quotes widening, or narrowing, falling or rising according to
supply
demand
liquidity

we only use candles, or bars to break price in blocks of time to measure what i have stated above.
the daily, hourly, minute or 15 minute is all the same thing, price is continuous

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AVT INVENIAM VIAM AVT FACIAM
  • #13
  • May 21, 2011 1:58am May 21, 2011 1:58am
Dear Redlion, thank you for stating your opinion. Why I looked at different time frames is to make sure I see the signal shows what is shows. Sometimes I can see buy signal on 4H but not on lower or higher time frame so to me it means the signal is weak or fake so I escape it, when I see same signal on different time frames it grabs my attention and I might wait for another signal confirmation and enter the trade or leave it.
Lybi lydey, lybi vragov.
  • #14
  • May 21, 2011 2:05am May 21, 2011 2:05am
dont memorize candle patterns
UNDERSTAND THEM

Can you predict next candle?
Attached Image


i cant, but i know that buying pressure seems to be losing momentum
so instead of concerning my self with what the next candle will look like

i might look to reduce risk exposure, and look into the smaller time frames to see what it happening with price now

look at what level, it is, and have a feel for the overall direction

after a hard fall price will reduce momentum and will hint that it found some ground for the time being,
understanding price movement, and wave theories or abc, 123, you can know that the market does not move in one direction either advance or decline
AVT INVENIAM VIAM AVT FACIAM
  • #15
  • May 21, 2011 2:08am May 21, 2011 2:08am
Quoting Pip Maker
Dear Redlion, thank you for stating your opinion. Why I looked at different time frames is to make sure I see the signal shows what is shows. Sometimes I can see buy signal on 4H but not on lower or higher time frame so to me it means the signal is weak or fake so I escape it, when I see same signal on different time frames it grabs my attention and I might wait for another signal confirmation and enter the trade or leave it.
sorry, i thought we were trying to discuss candle sticks and the theory behind them.
AVT INVENIAM VIAM AVT FACIAM
  • #16
  • May 21, 2011 2:10am May 21, 2011 2:10am
I'm sorry if I'm not answering your reply but can you please do me a favor? What can you say about 3 chart I posted for USD/JPY, I am predicting it will go up based on the candlesticks that I mentioned there. Tell me why I am wrong if I am. Thank you sir.
Lybi lydey, lybi vragov.
  • #17
  • May 21, 2011 2:13am May 21, 2011 2:13am
i am sorry i cannot predict.

i am not that good, i can merely follow price, and attempt to dance with the market.
AVT INVENIAM VIAM AVT FACIAM
  • #18
  • May 21, 2011 2:17am May 21, 2011 2:17am
Quoting the redlion
i am sorry i cannot predict.

i am not that good, i can merely follow price, and attempt to dance with the market.
Oh ok that makes sense. Lets wait till Monday and see

Good night redlion, im going to bed now
Lybi lydey, lybi vragov.
  • #19
  • May 21, 2011 4:49am May 21, 2011 4:49am
Quoting the redlion
dont memorize candle patterns
UNDERSTAND THEM

Can you predict next candle?
Attachment

i cant, but i know that buying pressure seems to be losing momentum
so instead of concerning my self with what the next candle will look like

i might look to reduce risk exposure, and look into the smaller time frames to see what it happening with price now

look at what level, it is, and have a feel for the overall direction

after a hard fall price will reduce momentum and will hint that it found some ground for the time being,
understanding...
Thanks. You got me to play with CustomCandle6, and I got some good results with 13-width cc6 over 1'TF candles, using horizontal lines where most of the 1' candles were in a shadow of the 13-width cc6. The horizontal lines were even better if the candles were squat and lots of tall vertical (1') candles surrounded them.

And price would rise into A and temporarily go into B, in an initial guess based only on those candles, Pip Maker.
  • #20
  • May 21, 2011 5:04am May 21, 2011 5:04am
Quoting the redlion
dont memorize candle patterns
UNDERSTAND THEM
Cool, I dont use Candle Patterns, I use Bars but that's an Interesting Idea. most ebooks on candle patterns advices you memorize them.
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