Day Trading & Forex Forum

barjon

Inspired by recent discussion prompted by twistedhedgehog http://www.trade2win.com/boards/pric...-involved.html and paricularly by jtrader's reading of the candles http://www.trade2win.com/boards/cand...lls-story.html I thought I'd try a new wot happened with a different flavour that may interest anyone interested in following in jtrader's footsteps.

What I've done is to take one of my old trades together with extracts from my notes taken at the time. I will go through it candle by candle with a new candle for you to consider each day. I hope you'll give it a stab and post your own interpretations. Have fun - here we go with the starter.

good trading

jon

Attached Thumbnails

 

wasp

Sorry Jon, do you want us to just add thoughts as each new candle appears and what we do each day/candle and our thoughts just as things stand (what's going on) or are we trying to look forward and say what will be?

barjon

Add thoughts on the intial starter and then as each candle appears, i think, which may stray into what comes next - you can look at it as managing the trade maybe and what thoughts occur to you as it develops.

good trading

jon

JTrader

I see.

I don't know about volume, as i only look at fx, but based on the candles, do you think the volume factor is crucial to this exercise or not? I would hope not !

But, i can say forward suggestions/theories/rationales like -




Because of the failure 1 candle back to pass above the close, or pass above the high of the upward closing candle 6 candles prior to it, with the resistance that that candle formed, and the fact that the last candle closed down, without passing the previous candles high, i think the next candle may go down further, possibly to retest the prevous support level of 2 candles previously initally, where it may or may not find support....


Cheers.

JTrader

Crystal clear!

Paintshop pro would be useful to annotate the attatchments. Unfortunately i don't have it.

rags2riches

This is so far removed from how I normally look for a trade (yes with indicators) but I'll give it a go.

1. new high => uptrend so retrace and breakout of uptrend is a distinct possibility
2. inside bar (2nd from left) shows consolidation. I would consider a breakout trade of this bar.
3. what is the significance of the lower volume of 3rd bar from left?
4. Candle1 looks like indecision to me.
5. strong buying pressure in candle2 but from strong or weak hands?
6. normal for profit taking to occur by short term traders in candle 3 following a large move. The fact that is closed above 50% of candle2 is a good sign.
7. if i entered long on candle1 breakout I would be feeling a bit twitchy as I have no idea what is coming next!

PKFFW

I'll have a go.

1: The entire procession of "down" candles only just manages to break the low of the first candle in the picture. This would indicate to me that there is no panic or frenzied selling going on. More like general consolidation and profit taking from earlier long positions. Further, volume begins to increase from after the second down candle and does so steadily with no sudden explosive spikes.
2: On candle "2" volume does increase, though only marginally and candle shows strength to nearly entirely wipe out all the preceeding "down" candles. Closes near the high. However, candle does fail to break recent previous high. Cause for concern?
3: Last candle volume is almost as much as candle 2 but candle closes only slightly lower. This would indicate to me there isn't any urgent selling going on. More a jostling for position on either side would be my guess.
4: If I were to take a guess I would say I'd expect price to move higher and at the very least test the previous high within the next candle or two.

Cheers,
PKFFW

JTrader

How to insert images into a T2W post - like in my post above

find an image on any web page, ricght click to get image property/image location, copy.

Click insert image icon in T2W thread, paste in image location address.

if you are using an image of your own upload it to a hosting provider like imageshack.. you will be given direct link to image address.

Some images may prevent linking to them, but most still do.