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  • #10,621
  • Mar 6, 2016 8:43am Mar 6, 2016 8:43am
Quoting moonmist
{quote} Thanks for the explanation. I have been using the lines, because it is easier for me to identify the 123 pattern. Using the whole candle is still new to me. For the first winning trade on March 1, your long entry was above a swing high around 16628, like a breakout trade. For the second one, the long entry was above an inverted hammer around 16680, not a swing high. Can you explain a little bit ?
heres are those 2 trades I hope these 2 charts can explain it if not let me know where the misunderstanding is and I will address it
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  • #10,622
  • Mar 6, 2016 8:57am Mar 6, 2016 8:57am
maybe this will also help a 123 pattern isn't based on candlestick patterns but Price Action. we make a low and price takes out the high of last candle. so last candle is PT 1 and candle 2 is point 2 but third candle did not take out high of point 2 but it took out low of pt 2 making that point 3. PT 3 can only form when the low of point 2 candle gets taken out by 1 tick. the second charts 123 pattern that's what happened and that's why it is a 123 pattern
  • #10,623
  • Mar 6, 2016 9:22am Mar 6, 2016 9:22am
Thank you for the tips Divergency and Cableguy...
regards
  • #10,624
  • Mar 6, 2016 9:46am Mar 6, 2016 9:46am
Quoting Divergence
{quote}heres are those 2 trades I hope these 2 charts can explain it if not let me know where the misunderstanding is and I will address it {image} {image}
Thanks for detailed explanation. I did not expect so much info. It is interesting that both cases involve a trend line break. I need to examine your charts more carefully to get a better understanding. It seems that 123 pattern involving a trend line break is usually a good setup.
  • #10,625
  • Mar 6, 2016 11:32am Mar 6, 2016 11:32am
Quoting Divergence
maybe this will also help a 123 pattern isn't based on candlestick patterns but Price Action. we make a low and price takes out the high of last candle. so last candle is PT 1 and candle 2 is point 2 but third candle did not take out high of point 2 but it took out low of pt 2 making that point 3. PT 3 can only form when the low of point 2 candle gets taken out by 1 tick. the second charts 123 pattern that's what happened and that's why it is a 123 pattern
Hi Divergence,

At the beginning, you just looked at the line formed by the closing price. Now, you look at the whole candlestick. Is there any reason for that ? It seems that the line will usually give you an early entry.

Just my two cents.
  • #10,626
  • Edited 12:50pm Mar 6, 2016 11:50am | Edited 12:50pm
Either or moon candles you see trendline break line doesnt. Both are valid which ever one gives you a good visual of PA obviously you will get in earlier with line chart. I may use either one as it presents itself. A nice problem to have
  • #10,627
  • Mar 6, 2016 2:28pm Mar 6, 2016 2:28pm
Quoting Divergence
I may use either one as it presents itself. A nice problem to have
Yes. But the most important thing is to stay out of chop. Otherwise, we may die by a thousand cuts. It does not matter whether the line or the whole candlestick is used:

The indicator jdt_MACD/Bollinger Band was originally designed as part of a trading system:

https://www.sierrachart.com/supportb...8&postcount=58

MACDBBHA

  1. Up Trend Confirmation: MACD line crosses above top BB, HA dots are green
  2. Down Trend Confirmation: MACD line crosses below bottom BB, HA dots are red

So far, I have not found it very useful.

Wouldn't it be nice to have a perfect indicator that can quantify the trend for us ?

  • #10,628
  • Mar 6, 2016 2:54pm Mar 6, 2016 2:54pm
Quoting moonmist
{quote} Yes. But the most important thing is to stay out of chop. Otherwise, we may die by a thousand cuts. It does not matter whether the line or the whole candlestick is used: The indicator jdt_MACD/Bollinger Band was originally designed as part of a trading system: https://www.sierrachart.com/supportb...8&postcount=58 MACDBBHA Up Trend Confirmation: MACD line crosses above top BB, HA dots are green Down Trend...
here's the thing about indicators they can be used in different ways. Sometimes a drug is created to treat a specific illness and later on the find out it can be used to treat other ailments/diseases. I only use it the same way others use BB to walk the dog
  • #10,629
  • Mar 7, 2016 4:14am Mar 7, 2016 4:14am
One of my fave's is the C&H back to trend after a double legged pullback which took out the previous low.
In this instance, i also believe that there was an irregular corrective wave, which means a probable extended move with trend to follow, hence i am running this position presently with a trailing stop;

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GoFundMe -stage-4-glioma-brain-cancer-fighter (link in my profile)
  • #10,630
  • Mar 7, 2016 6:09am Mar 7, 2016 6:09am
Quoting Divergence
{quote} here's the thing about indicators they can be used in different ways. Sometimes a drug is created to treat a specific illness and later on the find out it can be used to treat other ailments/diseases. I only use it the same way others use BB to walk the dog
Hi Divergence,

The main problem with indicators is that you can change the setting or parameters to produce very different results. The advantage is that they can make the trading rules more clear.

The current focus seems to trendline break. But drawing of a trendline can sometimes be subjective.

I notice that you have a very win rate recently. Next time, when you are ready to enter a trade, please let me know.


Just my two cents.
  • #10,631
  • Mar 7, 2016 6:15am Mar 7, 2016 6:15am
Quoting moonmist
{quote} Hi Divergence, The main problem with indicators is that you can change the setting or parameters to produce very different results. The advantage is that they can make the trading rules more clear. The current focus seems to trendline break. But drawing of a trendline can sometimes be subjective. I notice that you have a very win rate recently. Next time, when you are ready to enter a trade, please let me know. Just my two cents.
will try and give you a heads up when a setup is happening
  • #10,632
  • Mar 7, 2016 6:43am Mar 7, 2016 6:43am
Quoting Divergence
{quote}will try and give you a heads up when a setup is happening

Just make sure you get your orders in when trying to give alerts. I have missed a number of trades due to posting here. I now only post my trades after the order is in and my order is filled, if then. While we all want to help and to be helped, day trading does not allow any room to be "late to the party" on these set ups. Yes, you can enter with a limit order and hope for a pullback to fil you, but very often the market never pulls back and instead goes to the profit target without you.
  • #10,633
  • Mar 7, 2016 7:08am Mar 7, 2016 7:08am
Quoting ddaytrader
{quote} Just make sure you get your orders in when trying to give alerts. I have missed a number of trades due to posting here. I now only post my trades after the order is in and my order is filled, if then. While we all want to help and to be helped, day trading does not allow any room to be "late to the party" on these set ups. Yes, you can enter with a limit order and hope for a pullback to fil you, but very often the market never pulls back and instead goes to the profit target without you.
very true DD I will alert when we get a pt 1 and pt 2 everyone should know by now what a pt 3 looks like and entry 1 tick past pt 2
  • #10,634
  • Mar 7, 2016 7:53am Mar 7, 2016 7:53am
vol is horrible this am, all the ny guys on spring break, usually its close to 50k by 9am only at 25k right now
  • #10,635
  • Mar 7, 2016 8:05am Mar 7, 2016 8:05am
there is no news this week that might have something to do with it so moves will happen via rumours
  • #10,636
  • Mar 7, 2016 8:06am Mar 7, 2016 8:06am
YM has been moving very slowly. There was a 123 pattern on the 13-tick range bar chart. May need to wait for a long time until the next setup.
  • #10,637
  • Mar 7, 2016 8:18am Mar 7, 2016 8:18am
Quoting moonmist
YM has been moving very slowly. There was a 123 pattern on the 13-tick range bar chart. May need to wait for a long time until the next setup.
yes there was a short from 20 on candles or short from 25 on line chart
  • #10,638
  • Mar 7, 2016 9:18am Mar 7, 2016 9:18am
Nothing so far.
  • #10,639
  • Mar 7, 2016 9:25am Mar 7, 2016 9:25am
I was examining the 931 candle where it gave us a pivot that if high is taken out trend would be long but didn't take it
  • #10,640
  • Mar 7, 2016 9:37am Mar 7, 2016 9:37am
08 long +1
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