Hi, In the search of my personal synthesis of differents ways, this is one idea. The Show Me points are differents candlestick patterns (6 types) with medium to haigh reliability. Salut
NihabaAshi, What are the key economic report releases your refering to? Thanks and GL with your book....
Hi nealvan, http://online.wsj.com/public/resources/documents/b-econoday.htm However, if your trading something that also trades around 3am est...your going to need an international economic calendar. There's been some international calendar links posted here at ET. Usually Forex brokers or forex resources have good international econ calendars. However, if your asking which specific econ report are the most important... That greatly depends on what your trading and what the market has been hyping in the trading days prior to the release. Therefore, one month something may be greatly watched and another month...its just boring and produces very little reaction. Last of all, if your going to follow econ calanders (highly recommended)... Make sure you print out a daily intraday chart every trading day of your trading instrument and annotate that chart which the release times or print on the back (otherside of the paper) the key econ releases of that particular trading day. The latter above is what I do. Don't try to anticipate any news or market events...only react to it if a trade signal appears NihabaAshi
Hi capamunt, How do you know those candlestick patterns are low, medium to high reliability ??? Are you aware that the reliability (however you measure it) will change from trading instrument to trading instrument and even change from intraday charts to daily charts. This is something your software nor books will tell you. They also will not tell you that each different candlestick pattern most likely should have different trade managment rules. Simply, don't make the common newbie mistake of applying the same trade management rules (stops, profit targets and contingency plans) to all your favorite candlestick patterns. It's also a common reason why many come to the conclusion they aren't reliable... Those common newbie mistakes NihabaAshi
I was always under the impression that candlesticking has been considered kind of the ouija board of trading strategies, but it was once pretty popular back in the day. Oh well, good luck with it, I'm sure there is at least one person out there that still makes money candlesticking. If you got into it because you read a book on it, maybe try another book on a different strategy and see how it sits with you. You know, explore the options before committing to one style of trading (especially candlestick).
Ouija board of trading... In some ways...your right. What I mean is this...I think the way it is taught, concepts shared or tested... It can be a little scary but nothing more than anything else out there that's discussed at EliteTrader.com There's no voodoo, nothing magical about it... A veteran trader will see it for what it really is... Just a partial image of price action but one that doesn't explain what is occurring in the overall price action. There are some reliable patterns but most aren't reliable. The problem I see with capamut and many others (including backtesters)... What works can't be coded. Therefore they have no choice but to concentrate on the stuff that really is either difficult to trade or isn't as reliable as one hopes for it to be. Stick with the Hammer stuff and you won't need to venture into any other areas of candlestick trading unless your just another trader trying to re-invent the wheel. Last of all, something most will ignore but I'll repeat it again... Do not use candlesticks as a primary strategy... It's just a support trading tool...a reliable support trading tool. Why not as a primary trade methodology...most don't have the patience nor experience to understand the trade management (after entry) to use candlesticks successfully. Its that trade management that books nor websites will explain (your own your own) and would rather talk about the entry signal. Look at it this way...what are the odds your going to be a successful trader with just an entry signal and no trading plan after entry ??? Such cannot be coded. NihabaAshi
Hi Niha, Many Thanks for your attention. I made a study on some candlestick pattern making an initial screening on a bibliography around your reliability. The last publication on this considered has been: http://www.focale.us/Focale/Chandeliers/Index.html?sid=d5636ab4be6699d78c7c1e59ea9211f5 Iâm made my personal study on stocks and index. Initially has been made on: Three outside down Three outside up Three inside down Three inside up Three Black Crows Three White Soldiers Morning Star Evening Star Bullish Engulfing Bearish Engulfing Kicking Dark Cloud Cover Piercing Line Hammer Hanging Man I start putting dozens of graphics on Morning Star (71 good in front of 45 bad) in one drawer page http://www.galeon.hispavista.com/tranquil/ But due to loss of time to put so many graphics I take notes during the research and is enough for me. Salut
Hi Niha, Finally I take these patterns in order to aid for take a decision. More reliable: Morning Star, Dark Cloud Cover and Piercing Line (very rare). All of three represented by a large circle. Medium reliable: Evening Star, Bullish Engulfing and Bearish Engulfing. All of three represented by a little circle. The Hammer gives to much signals for my licking, and I put if they are e few signals from others. Salut
Looks like your still in the entry signal area. Although I still think your approach is too much food on the table... At least your trying to find out what works for you and what doesn't work. Do you plan on discussing the most important aspect of Japanese Candlestick analysis... Trade management after entry ??? I do understand doing such reveals someones trading plan and many traders don't like revealing too much of that in comparison to the entry signal itself. However, whatever your trade management will be... Just remember not to apply the same trade management to all candlestick patterns because to apply such to all is to imply all patterns are the same. Out of curiosity, are you using both SuperCharts and TradeStation ??? NihabaAshi