Still learning, am i on the right track?

[BuddyThomas]

Hi all

Ive been trying to figure out candles for the past week, am i on the right track?

 

[mpups]

Hi all

Ive been trying to figure out candles for the past week, am i on the right track?

hi tom, i dont think anyone would know from the image. Maybe ask a more specific question about what you are unsure of?

 

[BuddyThomas]

Hi Kaeso


Just trying to work out if what i've written down is correct to the chart pattern, in the sense of identifying a correct pattern and making the correct call if i was trading for real

Hope that helps

 

[Dowser]

Hi Buddy, unfortunately, a single red candle after a few green ones on a 5 minute time frame isn't a reliable signal to enter a trade in my experience. Move up to a one hour candle, practice drawing lines of support and resistance and maybe add a couple of Moving Averages and you may develop an edge. All in my humble opinion of course.

 

[BuddyThomas]

Thanks cbrads, back to revision it is!

 

[mpups]

Hi Kaeso


Just trying to work out if what i've written down is correct to the chart pattern, in the sense of identifying a correct pattern and making the correct call if i was trading for real

Hope that helps

ok, well basically i think you've gone back in time after knowing the outcome, and looked for where you might have predicted it, but all youve effectively done is pointed at where it started going down, and then pointed where it started going up.

you may be on the right track, i wouldn't know, you may have only just started...keep us posted

 

[tomorton]

As cbrads said.

In addition, what you've marked as a hammer is more of a shooting star, though not a classic example. What it does show is a close well below the high and open of the bar and at the exact low for the period. This typically indicates price as being driven downwards by sellers. Unfortunately, this just demonstrates the unreliability of a single candlestick as a signal because price immediately turns upwards.

 

[dbphoenix]

Hi all

Ive been trying to figure out candles for the past week, am i on the right track?

Whether or not you are on the "right" track will depend on where you want whatever track you've selected to take you. If candles, do you want them to tell you where to enter and where to exit? If so, do you have any evidence that demonstrates to your satisfaction that learning these candle names and patterns will result in the outcome you desire? Candles in their current form have after all been around since the 90s, and yet traders continue to fail in very large numbers.

But aside from all of that, do you have a job? Are you in school? Are you in a position to trade all of this in real time? If not, then whether you examine 5m bars or hourly bars or any other sort of bar less than a daily bar will most likely be frustrating at the least.

 

[Lee Shepherd]

But aside from all of that, do you have a job? Are you in school? Are you in a position to trade all of this in real time? If not, then whether you examine 5m bars or hourly bars or any other sort of bar less than a daily bar will most likely be frustrating at the least.

Studying bars is the best bit of this job.

 

[BuddyThomas]

Whether or not you are on the "right" track will depend on where you want whatever track you've selected to take you. If candles, do you want them to tell you where to enter and where to exit? If so, do you have any evidence that demonstrates to your satisfaction that learning these candle names and patterns will result in the outcome you desire? Candles in their current form have after all been around since the 90s, and yet traders continue to fail in very large numbers.

But aside from all of that, do you have a job? Are you in school? Are you in a position to trade all of this in real time? If not, then whether you examine 5m bars or hourly bars or any other sort of bar less than a daily bar will most likely be frustrating at the least.

Hi phoenix

Im working full time and have enough to fund real time trading but i don't want to run before i can walk so to speak, i have been looking through various charts to see if i can essentially spot the reason why a stock has gone up or down from the candle patterns themselves

 

[dbphoenix]

Studying bars is the best bit of this job.

For me, studying price movement is the best bit.

 

[dbphoenix]

Hi phoenix

Im working full time and have enough to fund real time trading but i don't want to run before i can walk so to speak, i have been looking through various charts to see if i can essentially spot the reason why a stock has gone up or down from the candle patterns themselves

How will you reconcile working full time with real-time trading -- assuming you're referring to daytrading -- without slipping into the "there's a trade I should have taken and there's where I should have entered" state?

 

[BuddyThomas]

How will you reconcile working full time with real-time trading -- assuming you're referring to daytrading -- without slipping into the "there's a trade I should have taken and there's where I should have entered" state?

Because i'm based in the UK and i'm trading US stocks by the time i get home the US market has only been open for about 2 hours which leaves plenty of trading time.

Still trying to find my strategy, but filtered down to Yahoo finance for research, using Moving Average indicators and reading candlesticks.

 

[itspossible]

Because i'm based in the UK and i'm trading US stocks by the time i get home the US market has only been open for about 2 hours which leaves plenty of trading time.

Still trying to find my strategy, but filtered down to Yahoo finance for research, using Moving Average indicators and reading candlesticks.

stocks are dangerous imho
they can half in a day or they can be suspended and you are trapped in them.
spreadbetting is safer imho-i traded stocks for a few year and had some nasty surprises.

 

[dbphoenix]

Because i'm based in the UK and i'm trading US stocks by the time i get home the US market has only been open for about 2 hours which leaves plenty of trading time.

Still trying to find my strategy, but filtered down to Yahoo finance for research, using Moving Average indicators and reading candlesticks.

All of which is fine. You shouldn't abandon something just because somebody tells you that it's worthless. Discover that for yourself. But do so in sim, not with real money. The purpose of sim trading is to a large extent to find out what works, or at least what is worth investigating. If you do it right. If you do it wrong, then you virtually guarantee that you will come to the wrong conclusions, and real-time trading with real money will provide some unpleasant surprises.

This is what your chart should look like, if you're going to use candles and moving averages and colors and so forth. What are you going to do? Right now? Why? When? How are you going to manage whatever trade you take, if any? (for starters)

 

[BuddyThomas]

All of which is fine. You shouldn't abandon something just because somebody tells you that it's worthless. Discover that for yourself. But do so in sim, not with real money. The purpose of sim trading is to a large extent to find out what works, or at least what is worth investigating. If you do it right. If you do it wrong, then you virtually guarantee that you will come to the wrong conclusions, and real-time trading with real money will provide some unpleasant surprises.

This is what your chart should look like, if you're going to use candles and moving averages and colors and so forth. What are you going to do? Right now? Why? When? How are you going to manage whatever trade you take, if any? (for starters)

Is there an online platform where you can essentially run a trade back and see what happens next? sort of like a reverse and play button im only using trading view to filter through different stocks but can only seem to paper trade in real time

If i was trading on that image alone to me it shows its a reversal because of the uptrend ending in a wickless candle (marubuzo?) and the next signal indicating the reversal confirmation?

Short sell with an aim of 1-3% profit and adding a stop loss

Im probably way off

 

[Quantt]

Studying bars is the best bit of this job.

I am going to correct you a bit...

Studying IN bars is the best bit of this job.

 

[Quantt]

Is there an online platform where you can essentially run a trade back and see what happens next? sort of like a reverse and play button

think or swim have on demand feature which does that for the past 10 years approx...

 

[dbphoenix]

Is there an online platform where you can essentially run a trade back and see what happens next? sort of like a reverse and play button im only using trading view to filter through different stocks but can only seem to paper trade in real time

Since trading is a movie and not a slideshow, you want what's called "replay", i.e., you tell the program where to start and what interval you want (1m, 5m, whatever, though if you select something longer than a minute, you're going to spend a lot of time sitting and waiting, which are ripe conditions for over-trading). As to what's available now, I can't say. I haven't looked into this for quite some time. There's NinjaTrader, though you'll be setting yourself up for an endless stream of emails pitching this or that for only pennies a day. I suggest selecting the broker you're going to eventually work with, preferably one which offers replay (which ought to be just about everybody; it's no longer a sophisticated offering), set up an account, then simtrade the account (assuming the broker offers that; if he doesn't, look further).

If i was trading on that image alone to me it shows its a reversal because of the uptrend ending in a wickless candle (marubuzo?) and the next signal indicating the reversal confirmation?

Short sell with an aim of 1-3% profit and adding a stop loss

Im probably way off

You don't yet know that the uptrend has ended. Price could just as easily move sideways. Then you're stuck in a trade that isn't going anywhere (this is called "opportunity cost", i.e., your money isn't doing zip for you but you can't use it anywhere else because you're futzing around with this trade that's just twiddling its thumbs). It's fine that you're beginning to define "reversal", but you're going to have to run this by an awful lot of what appear to be setups before you know whether or not it's dependable.

As for an "aim", why? Why choke off a trade that shows no signs of ending? Unless you want to be a recreational trader?

 

[BuddyThomas]

think or swim have on demand feature which does that for the past 10 years approx...

Awesome thanks, just downloaded it