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Registered User
Joined: 12/18/2004
Posts: 20
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Any one out there like to talk about candle stick trading and what they use for indicators. I have been using candles for about 3 years now with the sto's and the MACD. Have had some good luck using them, but am always looking to learn new tricks to the trade.
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Registered User
Joined: 11/16/2004
Posts: 105
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n7kon,
I figure any indicator that has been around since the 1700's, must have enough merit to become popular in the U.S.A.. I've been studying them for a few months & have become to rely on them for trend reversals & continuation patterns. Don't think I can show you anything new however.I've been doing some sorts using RSI divergences comparing visual differences then flipping thru the the best charts to find advancing knights, frypan bottoms, & tower bottoms for buy candidates lately. This should make for an interesting thread, however difficult to illustrate in this format.One thing I do that may be unconventional I've found is using 2 & 3 day candle charts for very low volume stocks even though the daily or intraday is prefered as the most reliable.These slower moving stocks-candle patterns just look like more ordinary daily candles to me that are more in tune with normal volume.
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Registered User
Joined: 12/18/2004
Posts: 20
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Bucket thanks for the reply. I have been using candles for about 2 years. The one thing I have found to be true with any trading strategy is there is always room to learn. I hope to have some post that people have found charts of interest to look at. I don’t think we can post them here but we can still say what the stock is and what we are looking at. I am watching NT right now has had some good candle formations and has bounced of the descending trend line.
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Administration
Joined: 9/18/2004
Posts: 3,522
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n7kon,
While you can't post you charts here, you can do that in TCNet. With TCNet you have the ability to share in both real time and by sharing an attached chart to a shared note. With the streaming chat and chart sharing technology in TCNet, there are many opportunites to learn more about candlesticks and how different users apply them to their TA.
/end plug for TCNet
Have a happy holiday season.
Ken Gilb (Kuf)
Chief Software Engineer - Worden Brothers Inc.
Try/Catch - My RealCode Blog
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Registered User
Joined: 12/28/2004
Posts: 1
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I have been using candle sticks, MACD, Stochastics, RSI, Keltner, Bollinger Bands, and other various tools for the last 8 years. You might want to look at the RSI with reversal points for swing trades, however be careful of forced trends. The forced trends will show a qualified reversal from a retracement. The rectracement will be to small for any type of profit and you will be stopped out. The other thing to watch out for are blow offs, these will happen at a reversal point based on candel sticks. If you are looking at a long reversal, the market will move up from the pattern then turn sharply down. Once the down has been made the market will move back in the direction of the long pattern. These few senarios I have found will destroy your account balance if you aren't careful. I hope this helps. I would also like to look a little bit closer at the RSI again as well.
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 Gold Customer
Joined: 12/7/2004
Posts: 10
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How many times did I get nailed trading Candle signals? I lost count. It began to dawn on me that other forces are at work and must be dealt with before the trade is put on. A great book on Candles was written buy “Stephen Bigalow”, Called “Profitable Candlestick Trading”.
In spite of its’ claim to pure Candles and the Stochastics, I warn anyone to go further than this almost complete study on trading with Candles. I now look at the signals as points of entry or exit based on other indications of price reversal.
Here is a short list; (If I see a possible setup)….I draw horizontal S&R lines on weekly charts. Next on the daily chart, I draw horizontal lines. These lines all come from pivots back as much as two or three years. The only time I use none-pivot lines is when near term price has a hair cut and I want a short line to find intraday levels as S&R for the 60minute chart. That’s because I use the 60m to enter, and I want to know the best place to enter an order. Candles work well on intraday charts, but tend to be a little less reliable when you get below 15m charts. As for the S&R lines; they are just one tool I use to confirm the Candle signal. I like to see a cluster of lines in close proximity. I also use Fibonacci levels, but I consider them second to S&R.
Basically I’m saying Candle signals are great, but will leave you short a few bucks in your account if you don’t have a swing size that you are used to working with and have a workup from your other tools to show evidence of a potential move. Lastly, don’t forget Volume (the King of measurements). If you don’t know about it; there’s a software you can buy that will use TC2K data to search for all the candle setups. Its’ called (CandlePower Plus). Web addy is: http://www.chartandscan.com/
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Registered User
Joined: 11/8/2004
Posts: 13
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QUOTE (n7kon) Any one out there like to talk about candle stick trading and what they use for indicators. I have been using candles for about 3 years now with the sto's and the MACD. Have had some good luck using them, but am always looking to learn new tricks to the trade.
on Q trader i use line chart and 5 day moving average
i use candles on tc 2000
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Registered User
Joined: 11/8/2004
Posts: 13
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QUOTE (Wayne1) QUOTE (n7kon) Any one out there like to talk about candle stick trading and what they use for indicators. I have been using candles for about 3 years now with the sto's and the MACD. Have had some good luck using them, but am always looking to learn new tricks to the trade. on Q trader i use line chart and 5 day moving average i use candles on tc 2000 
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Administration
Joined: 9/18/2004
Posts: 3,522
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QUOTE (leebcg) A great book on Candles was written buy “Stephen Bigalow”, Called “Profitable Candlestick Trading”.
Just an FYI. Stephen Bigalow is user Candlestick1 on TCNet.
Ken Gilb (Kuf)
Chief Software Engineer - Worden Brothers Inc.
Try/Catch - My RealCode Blog
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Registered User
Joined: 12/18/2004
Posts: 20
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Thanks all for the replies. Kuf I have the book and have had to tape the pages back in the book. I have had good luck using the Candles, STO’s, and MACD but always looking for more knowledge. I am trying to see how to incorporate TSV, MS, and BOP with what I do now to increase my rate of return. Still working at understanding how to read these indicators so I can get as many as I can pointing in the right direction at one time. Or replace some of the one’s I use now.
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