Welcome to the Candlestick Corner! Stop on in!

[brownsfan019 17]

Welcome to the Candlestick Corner everyone!

 

I asked James if we could start a sub-forum for the main purpose of discussing candlesticks, candlestick analysis, etc. in one part of the forum. As many of you know, candlestick analysis is my bread and butter. I also know that good discussions can hopefully lead to a learning experience for everyone!

 

I am going to be out a good part of this weekend, so I apologize that I won't be able to participate much in our little candlestick corner till Sunday. Turns out that today is the start of Browns Training Camp and Sat is my best friend's bachelor party.... so, I won't be here much.

 

I'm not sure where we will take this part of the forum. I going to leave it up to discussion. Even though my title is moderator, I have no intentions of acting like an unbiased moderator. I hope that's ok. Being a neutral moderating moderator is just not for me. :thumbs up:

[TinGull 10]

No neutrality? C'mon!! Im excited to be a part of this candlestick gang.

[brownsfan019 17]

Easy there tin, you have to be initiated first. This gang ain't open to just anyone.

 

 

 

 

 

 

 

Note - just a joke! Everyone is welcome to the Candlestick Corner!

[TinGull 10]

HAHA! nice. I'll be sure to post up some charts this weekend.

[walterw 10]

It will be very interesting ¡¡¡ thanks for opening this section I expect to learn something new on this great technicall topic... cheers Walter.

[Soultrader 12]

Yea this will be a nice forum. I'll definitely bug MrPaul as well about interacting here. Im not a candlestick pattern based trader so will be a avid student here

[MrPaul 10]

What a Great Idea this sub forum is!

 

I will also be away this weekend but starting next week I will look forward to contributing.

[james_gsx 16]

This is pretty cool, I have wanted to learn about candlestick trading for a while now but never really got around to it.

 

I am a visual learner, and I sometimes find myself watching the candle for my entry/exit more than the tape. For some reason it just makes more sense to me, and it seems to be working out. I don't know if brownsfan is like that, or maybe I'm just crazy.

[Nick1984 10]

Up until now I only though candlesticks were pretty little pictures, now that I've learned about candlesticks I can be profitable again!

 

I'm bein sarcastic there, I just thought it sounded like someone who'se plugging a new haemorrohoid cream with the old "I can ride a bike again" type line.

 

Apply this thread to you troubled spot once a day and watch your troubles melt away.

[now123pivot 10]

Thanks for starting this as I'm just starting to utilize candlesticks in my trading. Looking forward to understanding more.

[aiki14 10]

Saw this forum and thought I'd post this PDF . I do not know who was the original author but it's a good overview of a bunch of candle patterns a newbie to candles may find useful. It's 20 pages.

candlestick quick reference guide - 001.pdf

[MC 10]

Saw this forum and thought I'd post this PDF . I do not know who was the original author but it's a good overview of a bunch of candle patterns a newbie to candles may find useful. It's 20 pages.

 

Awesome pdf...I have been looking for a good candle doc like this.

Piercing and cloud cover are 2 definitions I've heard but never really visualized enough till now.

 

Thanks

[angelaktariel 10]

Thank you for candlestick guides......great study guide for sure.

 

Eva

[pattern.searcher 10]

I just thought I'd share a beautiful example of a bullish engulfing candle on the NYSE in the chart of Aetna, Screen shot enclosed.

[Roger Felton 10]

Such a great topic...too bad it sorta died on the vine. I've been using candlesticks for over 2 decades and will never again use anything else.

 

Among the many advantages that this bar type offers, is the ability to see markets in ways that most traders don't know exists...yet.

 

Personally, I believe that how you visualize the markets you trade is every bit as important as your method of trading them. Most traders are aware of the various common bar types such as the time-based, tick, volume, range, etc. For some time now I have been using bar types that give me a much clearer look at what Price is doing and where it headed.

 

As an example, let's look at Gold (GC) in NinjaTrader:

 

Chart A is a typical looking 5 minute (time-based) chart. The time spans late afternoon on 6/12/12 to the early morning of 6/13/12. As hard as you try, it's unlikely to get a good idea of what Price wants to do if you're a short-term intraday trader. If you're a trend follower, this market will give the ole buns a workout. It zigs and zags in herky jerky fashion and doesn't seem to want to hold a direction worth a hoot. No wonder so many traders get murdered trading time-based charts.

 

Some improvement might be seen by moving to a Tick or Range chart. A lineBreak chart would not be a bad choice if set up right. Certainly, nothing could possibly be worse than this.

 

But you will not likely to find a bar type that shows clearer Price movement than the Renkos. There are a lot to choose from, however. To solve this, I built a Renko Bar that can instantly be made into any other type of Renko. Any coder can do the same quite easily.

 

Chart B shows the advantages of a Renko. This is a 22,1 Renko showing approximately the same period of time. Each bar body is 22 ticks and the step increments are one tick each bar. That is, each Renko bar closes one tick higher than the previous bar until it just can't go any further and reverses. This results in an incredibly smooth look at what price is actually doing without getting distracted by market noise. Traders wanting to use very small stops will choose a smaller number. Larger stair-steps can also be chosen but the bigger the steps, the jerkier Price will become.

 

The Renkos sure made my job as a scalper a lot easier. Because I am a vendor, TL does not allow me to instruct how to build these Renko Bars or instruct anyone in how to use them. So, this post is only intended to get some traders to take a look at a wonderful bar type that, I find has tremendous merit. Various types of Renko Bars can be found on the Internet. Give 'em a try.

Edited June 13, 2012 by Roger Felton

[raaj 10]

Great Topic

 

is there any candlestick recognition and chart pattern recognition software (free) avaiable ?

 

relatively new to trading and need some help

 

Thanks

 

Raaj

[Roger Felton 10]

Great Topic

 

is there any candlestick recognition and chart pattern recognition software (free) avaiable ?

 

relatively new to trading and need some help

 

Thanks

 

Raaj

 

Yes, Raaj, there are some free indicators that do that. I studied both candlestick and chart pattern recognition for a number of years and personally couldn't get any better than 50/50 accuracy...about like flipping a quarter. Perhaps you will do better. Keep me posted...thanks.

[thearabsmith 10]

Great Topic

 

is there any candlestick recognition and chart pattern recognition software (free) avaiable ?

 

relatively new to trading and need some help

 

Thanks

 

Raaj

 

Hi Raaj

 

I'm not sure about software, but I think chart stock charts has something. However, I'd steer clear if there is anything out there, or at least only use it as an accompaniment to your own learnings. Why? Because all traders need chart time. In my opinion there's no short-cut to sitting in front of a chart, learning. If you employ automatic software recognition, you'll miss the understanding of candlestick patterns. Honestly, it'll only take a few months before you recognise inverted hammers, The Harami, bullish engulfing etc...

 

Sorry if I'm teaching yo to suck eggs. Oh, there are a few good learning resources out there. Baby Pips and A Traders Notepad are two worthy ones.

 

Regards

TheArabSmith