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Overlapping Candles

  • #21
  • Jun 6, 2016 8:09pm Jun 6, 2016 8:09pm
I like to trade several trades at different entry & exit levels & at different time frames as well.
#17 & #19 gives me an excellent substructure for a variant order placement.
I can then take a look at smaller time frames for checking out the probabilities of some "in between trades"
  • #22
  • Jun 6, 2016 8:12pm Jun 6, 2016 8:12pm
Quoting shunfeng
{quote} where you put your stop loss, please? (So I would like to know your initial Reward/Risk ratio) thanks, yours, Shunfengcn
#20

I didn't trade with stop loss most of the time.
If I would set a stop loss in this conception I would locate it slightly superior or below the Highs & Lows in relation to higher time frames &
more than ever to the duration of the trade.
  • #23
  • Jun 6, 2016 8:16pm Jun 6, 2016 8:16pm
Quoting Forexcube
{quote} #20 I didn't trade with stop loss most of the time. If I would set a stop loss in this conception I would locate it slightly superior or below the Highs & Lows on higher time frames.
interesting...
without a stoploss, how did you calculate your position size before the trade set-up? Do you have a money-management plan?
yours
SF
The candle pattern is the signal, the inevitability behind it is the key.
  • #24
  • Jun 6, 2016 8:30pm Jun 6, 2016 8:30pm
Quoting shunfeng
{quote} interesting... without a stoploss, how did you calculate your position size before the trade set-up? Do you have a money-management plan? yours SF
#23

...considering the circumstances of my risk- & money-management in trading decisions without stop loss, certainly.
You know every trader has to work out his own risk tolerance which fits best for him.
Different traders can use the same strategy with different success. One could go out into a big profit whereas the other go and lose anything.
"OC"-Life Account could give a phasing-in how I manage it in my way which could be not your's.
  • #25
  • Jun 6, 2016 9:01pm Jun 6, 2016 9:01pm
awaiting proper entry rule...how exactly do you enter a trade after identifying overlapping candles.sticling around with keen interest.
  • #26
  • Edited 4:34am Jun 7, 2016 4:17am | Edited 4:34am
Quoting Forexcube
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
#18

This order was set on H4 basis. Now after Yellen's speech the market price has moving strict upwards.
Several options are determine my market decisions just now.
I can here go out with a stop loss around ~4'542 in expectation of a weekly breakout, I could hedge this order & wait calmly on the monthly chart,
that is to say switching my investments from H4 to monthly view in adjusting additively my money- & risk-tolerance or I take the higher risk over now, wait till the maximum could reached anyway (~4'741 December) in cold blood to invest then one more short. If I decide me for the last option I have also to adapt (deepen) the exit point at monthly level, e.g. to 4'301 or 4'120 (see #27, please).

NAS100USD, Monthly, 2016 June 07
NAS100USD, Weekly, 2016 June 07
Attached Image(s) (click to enlarge)
Click to Enlarge Name: NAS100USD, Monthly, 2016 June 07.jpg Size: 95 KB
Click to Enlarge Name: NAS100USD, Weekly, 2016 June 07.jpg Size: 209 KB
  • #27
  • Jun 7, 2016 4:32am Jun 7, 2016 4:32am
NAS100USD, Monthly, 2016 June 07
NAS100USD, Monthly, 2016 June 07

~4'120 intersects with 4 other candles around it (2 sinistral and 2 right-lateral) & ~4'301 with all candles in the lower parts.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: NAS100USD, Monthly, 2016 June 07, v2.jpg Size: 99 KB
Click to Enlarge Name: NAS100USD, Monthly, 2016 June 07, v3.jpg Size: 101 KB
  • #28
  • Jun 7, 2016 4:41am Jun 7, 2016 4:41am
Quoting justomonla
awaiting proper entry rule...how exactly do you enter a trade after identifying overlapping candles.sticling around with keen interest.
#25

Hi justomonia
Oh yes, this is an important topic.
One entry rule was demonstrated in #18 since yet at H4 basis. Other entry examples will follow in life.
Promise!
FXcube
  • #29
  • Edited 10:11am Jun 7, 2016 9:55am | Edited 10:11am
Quoting Forexcube
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. {image}
So, the common rule for the candles to be overlapping are:

1/ Compared with the previous DOWN candle, the next candle does not make the lower low, but makes the higher high.
2/ Compared with the previous UP candle, the next candle does not make the higher high, but makes the lower low.
That is why the next candle demonstrates a clue to the POSSIBLE directional bias.

More strict rule:

1/ Compared with the previous DOWN candle, the next candle does not make the lower CLOSE, but makes the CLOSE higher than the OPEN price .
2/ Compared with the previous UP candle, the next candle does not make the higher CLOSE, but makes the CLOSE lower than the OPEN price.
That is why the next candle demonstrates the CONFIRMED directional bias, since the body of the next candle ENCLOSES the body of the previous candle.

Comments?

Best
D.P.

P.S. I think, there are some other rules to identify overlapping candles. There would be great to classify all possible overlapping candles' patterns.
Hunting High and Low
  • #30
  • Edited 11:51am Jun 7, 2016 11:39am | Edited 11:51am
Quoting Forexcube
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
#18

What a pity?
Coming just at home and see the deepest H1 today was 4'517.4 but didn't executed my target @ 4'518.
So I went out @ 4'5285 just now, +1.5
Ch*t happens!
Next chance will coming up.
FXcube
  • #31
  • Edited 12:08pm Jun 7, 2016 11:48am | Edited 12:08pm
Quoting Dr.Phoenix
{quote} So, the common rule for the candles to be overlapping are: 1/ Compared with the previous DOWN candle, the next candle does not make the lower low, but makes the higher high. 2/ Compared with the previous UP candle, the next candle does not make the higher high, but makes the lower low. That is why the next candle demonstrates a clue to the POSSIBLE directional bias. More strict rule: 1/ Compared with the previous DOWN candle, the next candle does not make the lower CLOSE, but makes the CLOSE higher than the OPEN price . 2/ Compared with...
#29
Sorry, Phoenix, false deduction;
& I give you an advice, ...not to twist somebody's words, my friend!
You have to think more global not like a nit-picker.
At the end you could subject data to (suitable) mathematical treatment.
Before that you have to understand the logic behind this concept and to learn pleasing to the eye when analyze the charts.
FXcube
  • #32
  • Jun 7, 2016 12:07pm Jun 7, 2016 12:07pm
Ain't that just a simple diamond and QM at the end with HH LL? At least looks very simillar.
  • #33
  • Edited 12:59pm Jun 7, 2016 12:27pm | Edited 12:59pm
USDCHF, Weekly, 2016 June 07

Window of opportunity
What does it mean?
It is one option among so many eventualities, that I have to pick out the center filed (e.g. "A", "B").
Be aware that the "A" & "B" options have a higher probability to take profits earlier then the "extreme events" (e.g. "C", "D", "E").
Having said that you can make good money as well with investments into "exteme events".
What you have to do is to adjust your money- & risk- management.
Attached Image (click to enlarge)
Click to Enlarge Name: USDCHF, Weekly, 2016 June 07.jpg Size: 175 KB
  • #34
  • Jun 7, 2016 12:48pm Jun 7, 2016 12:48pm
PO USDCHF, Long @ 0.95400, Target @ 0.9930
___
PO = Pending Order
  • #35
  • Jun 7, 2016 12:53pm Jun 7, 2016 12:53pm
Quoting Forexcube
PO USDCHF, Long @ 0.95400, Target @ 0.9930 ___ PO = Pending Order
#34

USDCHF
I could also execute a long order just now around 0.96559 and a second one later ~0.95400.
If I would trade with stop loss I would select a limit under the low 0.94435 of 2016.05.03.
My money management & risk tolerance could be 2-5% for all 100 pips in this case (USDCHF).
  • #36
  • Edited 1:29pm Jun 7, 2016 1:13pm | Edited 1:29pm
Interplanar?
multi-layer

This example here demonstrate an "OCC"-two-tier (#36, #37).
Entry- & exit points has been selected at various levels.
I take a short order @ 2'116.7 (A1) at daily chart.

SPX500USD, Daily, 2016 June 07
click to enlarge!
Attached Image (click to enlarge)
Click to Enlarge Name: SPX500USD, Daily, 2016 June 07.jpg Size: 211 KB
  • #37
  • Jun 7, 2016 1:21pm Jun 7, 2016 1:21pm
... and adopt a weekly chart for an exit level (A2)

Exit @ 2'065

SPX500USD, Weekly, 2016 June 07
click to enlarge!
Attached Image (click to enlarge)
Click to Enlarge Name: SPX500USD, Weekly, 2016 June 07.jpg Size: 162 KB
  • #38
  • Jun 7, 2016 1:22pm Jun 7, 2016 1:22pm
Hello,

does anybody understand what a OCC is? And if yes, could this person please explain?

Thanks
  • #39
  • Jun 7, 2016 1:24pm Jun 7, 2016 1:24pm
#36/#37
The risk could be the High 2'136.4 from 2015.05.17 (#37) & maybe an excellent entrypoint for one more short.
Other traders would possibly set a stop loss somewhere around here.
  • #40
  • Jun 7, 2016 1:33pm Jun 7, 2016 1:33pm
Quoting Forexcube
{quote} #29 Sorry, Phoenix, false deduction; & I give you an advice, ...not to twist somebody's words, my friend! You have to think more global not like a nit-picker. At the end you could subject data to (suitable) mathematical treatment. Before that you have to understand the logic behind this concept and to learn pleasing to the eye when analyze the charts. FXcube
Completely agree with you. Thanks.
However, I am trying to formalize the subject - that is my problem, my friend - I am always trying to do it in order for me to remember it the best way.
As to the bold, this is what I am trying to do.

Best
D.P.
Hunting High and Low
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