Digamber Shankar PATIL's DSP Candle Strategy | Forex Factory

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Attachments: Digamber Shankar PATIL's DSP Candle Strategy
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Digamber Shankar PATIL's DSP Candle Strategy

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  • #1
  • First Post: Edited Aug 14, 2015 1:35pm Nov 27, 2013 6:28am | Edited Aug 14, 2015 1:35pm
What is DSP (DIGAMBER SHANKAR PATIL) Candle?

DSP candle is the high impact candle (either Bull or Bear) in the specific period.

How to Find DSP (DIGAMBER SHANKAR PATIL) Candle?

Manual Method: Attach following indicator and template to any chart (Applicable to all currency pairs, stocks, commodities or any financial instrument).

Attached File(s)
File Type: ex4 Candle length Identifier.ex4   3 KB | 3,180 downloads
Attached File(s)
File Type: tpl dsp template.tpl   1 KB | 2,317 downloads


Look at candle length indicator carefully and observe its horizontal axis (ie zero line). If it is at center (ie.. both +ve and -ve sides equal) skip this chart. But if not, then check where it is shifted? Upward or Downward. If upward then find biggest Bear candle and if downward then find biggest Bull candle. This candle is nothing but DSP candle.

Attached Image (click to enlarge)
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Automatic Method: Attach following EA (MetaTrader\experts) to chart of any currency pairs, stocks, commodities or any financial instrument.

Attached File(s)
File Type: ex4 DSP Candle Strategy EA.ex4   13 KB | 1,575 downloads | Uploaded Dec 19, 2013 1:23am


Please Note: Above EA works as indicator only. It is not tested for trading and should be used for analysis purpose only. It highlights DSP candle with dotted red vertical line and BUY/SELL limits with dotted yellow horizontal lines. EA credit goes to magft.

How to trade with DSP (DIGAMBER SHANKAR PATIL) Candle?

STEP 1 : If DSP candle is BULL candle then wait till any of the succeeding candle closes BELOW its opening price. Then, put SELL order.

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STEP 2 : If DSP candle is BEAR candle then wait till any of the succeeding candle closes ABOVE its opening price. Then, put BUY order.

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STEP 3 : Put stop loss at opening or closing price for bear or bull DSP candle respectively. Take profit can be varies depending your trading pattern.

How to select DSP (DIGAMBER SHANKAR PATIL) Candle version?


Depending upon your trading style choose any of the following version. It includes short term (Turbo), medium term (Classic) and long term (Light) versions. Longer the time frame more the profit percentage.

DSP CANDLE STRATEGY (Light)


Time Frame: 1 Hour

Candles: 72
Template:
Attached File(s)
File Type: tpl dsp candle (light) - 1 hr.tpl   2 KB | 1,435 downloads | Uploaded Dec 19, 2013 1:23am



DSP CANDLE STRATEGY (Classic)


Time Frame: 15 Minutes

Candles: 96
Template:
Attached File(s)
File Type: tpl dsp candle (classic) - 15 min.tpl   2 KB | 1,431 downloads | Uploaded Dec 19, 2013 1:23am



DSP CANDLE STRATEGY (Turbo)

Time Frame: 5 Minites

Candles: 60
Template:
Attached File(s)
File Type: tpl dsp candle (turbo) - 5 min.tpl   2 KB | 1,313 downloads | Uploaded Dec 19, 2013 1:23am


IMP: Make sure that correct time frame is selected for template attached. (ie. M5, M15 & H1 time-frame for Turbo, Classic & Light templates respectively)

Warning : False signals may generate during big news declaration. Keep eye on forex news calender. Since this is the reversal trading, always check the position of DSP candle in the chart. If DSP BULL candle is at the very bottom of the chart, don't SELL trade, similarly, if DSP BEAR candle is at the very top of the chart, don't BUY trade.

Keep Sharing your charts and results!!!!

Best of Luck!!!!
Attached File(s)
File Type: rar DSP CANDLE STRATEGY - All in One (EA, Indicators, Templates).rar   19 KB | 1,948 downloads | Uploaded Dec 19, 2013 1:27am
  • #2
  • Edited 7:28am Nov 27, 2013 6:29am | Edited 7:28am
Reserved for testing.

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  • #3
  • Nov 27, 2013 6:40am Nov 27, 2013 6:40am
Not sure what the candle identifier is doing and what the DSP candle is. Do you mean find the largest candle in that time (24hr period as highlighted) and trade the opposite break of it? Is the reason for the candle identifier to show the largest candle only? Is the DSP candle simply the largest candle?

This looks a lot like John templeton's trading in the buff setup. I think he goes on to say when it breaks back through you should be able to measure the initial move and expect price to make the same size move in the opposite direction. Most of the time.
"Even if you fall down face first, you still went forward."
  • #4
  • Nov 27, 2013 7:05am Nov 27, 2013 7:05am
Quoting juicyt
Not sure what the candle identifier is doing and what the DSP candle is. Do you mean find the largest candle in that time (24hr period as highlighted) and trade the opposite break of it? Is the reason for the candle identifier to show the largest candle only? Is the DSP candle simply the largest candle? This looks a lot like John templeton's trading in the buff setup. I think he goes on to say when it breaks back through you should be able to measure the initial move and expect price to make the same size move in the opposite direction. Most of...
Candle identifier make easier to find biggest candle. You can check this thread for more information as this strategy is based on this thread and my past experience with my trading gurus.

No idea about templeton's trading strategy.
  • #5
  • Nov 27, 2013 7:09am Nov 27, 2013 7:09am
How to determine the TP levels?
What is the winning percentage?
  • #6
  • Nov 27, 2013 7:20am Nov 27, 2013 7:20am
Quoting IenDzi
How to determine the TP levels? What is the winning percentage?
Anywhere around 10 pips or you can follow trend till it reverse.
  • #7
  • Nov 27, 2013 7:42am Nov 27, 2013 7:42am
SL always be 20-30p, so TP 10 pips is too little for this. Unless the winning percentage is high.
  • #8
  • Nov 27, 2013 7:58am Nov 27, 2013 7:58am
Hy Password!

I do not understand what you are meaning with "at center" and "shift axis", see screenshot ... because at that time, when the first big candle at the left happened, you have to look back! 24 hours from -that- time/candle (by your rules)... what/where is "center"?

, thanks,
Dietmar
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  • #9
  • Nov 27, 2013 8:26am Nov 27, 2013 8:26am
Quoting dl4hao
Hy Password! I do not understand what you are meaning with "at center" and "shift axis", see screenshot ... because at that time, when the first big candle at the left happened, you have to look back! 24 hours from -that- time/candle (by your rules)... what/where is "center"? , thanks, Dietmar {image}
If both (+ve and -ve) sides of candle length indicator are equal then horizontal axis (ie zero line) will be at center. If bulls are more powerful then it will move down and vice versa. Find the biggest candle amongst bull/bear candles
  • #10
  • Nov 27, 2013 8:49am Nov 27, 2013 8:49am
Latest ..

From Audusd 15M chart

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From Silver 15M chart

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From Gold 15M chart. Just close bellow DSP candle.. Lets see...

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  • #11
  • Nov 27, 2013 8:57am Nov 27, 2013 8:57am
Quoting Password
Latest from Audusd 15M chart {image} From Silver 15M chart {image} From Gold 15M chart. Just close bellow DSP candle.. Lets see... {image}

From AUDUSD M15 chart I see, that long doesn't work out.
  • #12
  • Nov 27, 2013 9:01am Nov 27, 2013 9:01am
Quoting IenDzi
{quote} From AUDUSD M15 chart I see, that long doesn't work out.
In this chart bulls are more powerful than bears. (Check axis level)

Hence find longest bull candle.
  • #13
  • Nov 27, 2013 9:03am Nov 27, 2013 9:03am
Booked profit in gold.

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  • #14
  • Nov 27, 2013 9:15am Nov 27, 2013 9:15am
Well friends.. I am leaving now for dinner and sleep. Will try to update this thread regularly.
Made all attempts to make it clear abt this strategy. But still there may be some flaws.
Don't forget to mention them here. Don't suspects every strategy as loss making..
because trading is all about mindset.

Good day!!!
  • #15
  • Edited 10:54am Nov 27, 2013 9:59am | Edited 10:54am
Quoting Password
{quote} In this chart bulls are more powerful than bears. (Check axis level) Hence find longest bull candle.

So if it is long bull and long bear candles, you take only the one trade, which is the longer candle?
Attached Image (click to enlarge)
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In this chart candle 1 is longer then candle 2, axis level for candle 1 is 256.9, and for candle 2 is 224.9. So our market is bullish(watching on axis), so why we are going in sell trade, not in long?
P.S. Market is bearish in this example.
  • #16
  • Edited 12:51pm Nov 27, 2013 12:30pm | Edited 12:51pm
Quoting Password
Hello, This strategy is derived from this thread. All credit goes to 24Hrs . I like this strategy because it was the most easiest to follow and understand. Here, I will try to make it more clear and more advance. Time-frame: 15 Minutes (Applicable to any Time frame but I found 15M better) Currency pair: Any (currency, stocks, commodity) Indicator: Candle Length Identifier, 24HourHighlight Attach indicators to chart. (See attachment for Template...
your explanation leaves a lot to be desired.

does not make sense.

you show a DSP candle on the identifier and DSP candle on the chart as well. but there is supposed to be just one DSP candle.

you say if both +ve and -ve are the same then the horizontal line is zero, but thats obviously gonna be zero. so what is your point ?

in one of the above chart, i think the first one. step 2, you show the longest candle on the identifier as a bearish candle. yet on the chart you are taking the trade based on a bullish candle !!

so what is going on ??


also, what is the point of a 24 hour only chart ?

these trades cannot be taken in real time, because the signals would have materialised in the past.....????

you trade 15m, if one traded 1 hour, u still use 24 hour chart ??


you are best to illustrate the rules on a chart as and when you take trades. showing examples of the DSP, bull/bear, in REAL TIME. best to post setups in advance so that people know why you are taking the trade. so that they may understand what you are talking about. with illustrations on the charts.



.......you have now confused me to death, and i have become dyslexic....and incoherent.
  • #17
  • Nov 27, 2013 1:39pm Nov 27, 2013 1:39pm
trolls are here too ?
daaamn...
  • #18
  • Nov 27, 2013 1:57pm Nov 27, 2013 1:57pm
Quoting whatfx
{quote} [...] you are best to illustrate the rules on a chart as and when you take trades. showing examples of the DSP, bull/bear, in REAL TIME. best to post setups in advance so that people know why you are taking the trade. so that they may understand what you are talking about. with illustrations on the charts. [...]
Yes, to show here some forward testing / demonstrating would be fine and should answer all questions ...

Password, nice! ... please show us some of your next trades ...

best wishes,
Dietmar
  • #19
  • Nov 27, 2013 7:32pm Nov 27, 2013 7:32pm
I checked the candle length indicator but it's different on different tfs. is there any reason why we can't use ATR?
  • #20
  • Nov 28, 2013 1:25am Nov 28, 2013 1:25am
Quoting ping5510
Thanks for sharing this with us. Question:How did you decide the "marked area"?

It's indicator: 24HourHighlight.ex4 .
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