Overlapping Candles

"Overlapping Candle Concept" (OCC)

Trading with overlapping candles could be profitable.
You can trade it at different time frames if it fits best for you.
The principles & arguments of this high flexible strategy will explain in life.

This should be a thread for traders who have patience and the logic to transfer the examples in a right way.

Statistical knowledge about probability theory could be of advantage.

If you keep watch hard rules (e.g. like fibonacci) or like to hit the ground running (e.g. some simple definitions) so this thread could not be the right place for you. Maybe that the "TASAYC"-Strategy (http://www.forexfactory.com/showthread.php?t=325369) or "Two Tube Tading" (http://www.forexfactory.com/showthread.php?t=345284) could fit better for you.

If you have no patience go away at first. Maybe it's better to read in a couple of weeks the first 20 pages or so.

"OC"-Life Account highlight a lot of examples. It needs to be said that I trade without stop loss predominantly by allocating the profits on new accounts.

During the spring- & summer time I'm not so often here, but I will begin this thread.
So bear with me, please.

I wish you green & happy pips!
FXcube

I'm a practitioner and so I demonstrate the OCC-System in life.
You could follow it if you want.

http://www.forexfactory.com/forexcube#acct.53

"OC"-Life Account, Beginning Date: 06. June 2016

Time frames: all
Essentially you can use the "Oerlapping Candle Concept" at all time frames, if youl feel wonderful with it,
so you can execute scalping trades, swinging trades or longer term trades.
I would advise you that you should pick out one or two time frames which fits best for you.

You could also put in indicators if you want, e.g. fibonacci, several support & resistance lines, the CCI,
but there is no need for it.
I like trading as simple as I can.

let's start with one example
Here you have some overlapping candles

NAS100USD, M15, 2016 June 06

...moreover, you have also at the same M15 time frame (#5) overlapping candles here.

NAS100USD, M15, 2016 June 06

In post #5 I've compare exlisively the last three M15 candles.
In post #6 I compare a wider range of M15 candles.

What are entry exit rules?

I'm a friend of multiple time frame analysis.
The evaluation gives me very often a pattern recognition.

Let me explain, please.

You could detect a similar event at H1.

NAS100USD, H1, 2016 June 06

..& here also additively over a number of H1 candles.

NAS100USD, H1, 2016 June 06

... & the same procedure in the following way as in post #7 (but you have not to do it) here again.
In post #8 I compare two candles ( it could be also 3 or 4 if they would really overlap)
and in post #9 there is a range of 10 candles.

If you draw the line in post #10 further leftwards (labelled in light blue)
you could discover additional intersept points (IPs)

NAS100USd, H1, 2016 June 06

Here is now an H4
Feel free to copy it and draw in some overlapping candle lines, which fits best for you.

NAS100USD, H4, 2016 June 06

Hi,

when a overlapping candle is a overlapping candle? Please explain

Thanks?

In proper time. Thanks, my friend.
The matter is that I have not found the clear definition of the Overlapping Candle.
Of course, I can imagine how the OCs look like, but I would like to define it in all possible ways they appear in markets.

Best
D.P.

It's the same for me. What's an overlapping candle?
I suppose it's when the body of a candle recovers the body of the precedent one's.

I am impatient to discover the suite.

NAS100USD, H4, 2016 June 07

"OCC" is highly flexible, flexible as to time & place by considering the breath of the market.
A, B & C are all posibilities to qualify overlapping candles & so is the selection of the candles.

Beginning to end principle (body & shadow)
Highs & lows (earmarked with "1" & "2") are designed from one candles's top to another candle's bottom in all three examples ("A", "B", "C") in the frame below.

More conservative investors could pick out unfailingly the bodies.

In an consolidating phase (since 2016 Mai 15) H4 seems a good choice to work out some entry & exit points;
e.g.
PO Short, NAS100USD @ 4'530, Target @ 4'518
___
PO = Pending Order

NAS100USD, H4, 2016 June 07

Nibbles
You could also sample out some between them.

where you put your stop loss, please? (So I would like to know your initial Reward/Risk ratio)
thanks,
yours,
Shunfengcn