Intraday Candlestick Trading

[nycdweller]

I currently watch the NQ. Is there a big difference between a 10 minute chart and a 15 minute chart in terms of candlestick analysis? Thanks.

[brownsfan019]

	Quote:	nycdweller
	I currently watch the NQ. Is there a big difference between a 10 minute chart and a 15 minute chart in terms of candlestick analysis? Thanks.

There can be a difference nyc and sometimes it's larger than other days. You just have to test different settings to see what works for you.

[BlowFish]

Of course we have talked about this in the past These are the important decisions - what size moves you are trying to capture, how much time you want to sit in front of the PC. etc. etc. Every bit as important as whether you are going to trade Dojis, Dunnigan or the DOM also one of the things you have absolute control over as a trader!

I know a chap who trades houly bars (predominantly on bar close). He goes outside does some work and then just comes in now and then to see how things are panning out. - Rambling off topic.

[monad]

Another neat trick is learn to blend candles of in your head,
ie. a WRB up, squat and a down bar on 5min chart, now take the open of the WRB, high and low of the 3 bars and close of the down bar,

Now you have a 15min candle , either a doji or an inverted hammer/dragonfly.

Same process again to gauge what is on the 30min.

My 2 cents. helps me anyway

[walterw]

I enjoyed today following this 5 min candles on the ES....

Now I thought that adding a little bit of context would actually make the trades a little more confident... this are "ideas" I want to share here...

For example adding some ketners 9/1 atr simple and a macd 12/26 could give some interesting context of trend and exhaustions as well...

Basicly this is the way Keltners can be used :




here is some examples of how this very nice candle patterns happen on some very intersting keltners contexts :




The macd could give some trend bias actually corresponding to higher time frames as it has a quite high input...

those are some ideas... please tell me what you think... cheers Walter.

[walterw]

Now a pattern I observed today... actually I dont know if it could be considered a valid candle pattern, but the pattern actually is there...

It is a group of spining tops that happen at the midband area creating a congestion action wich happens to be normal to see congestions on the midband areas... swing of the extreme of this group tells us the congestion is over and the mid band rejection is in course...



this is an interesting pattern as well... cheers Walter.

[walterw]

And for last this failed group of spining tops that did not had a follow thru, when we brake their lows pum, down we go... in a nice bearish trend context from higher timeframes dictated by the macd... it also was a midband reject for continuation



well like you say Brown... some food for thought... so far on this ideas I find more confidence in taking the swings h/l for timing, as it may become noisy this formations...

Hope I dont bore anyone here... cheers Walter.

[Anonymous]

I know my posts here will be unwelcome but here is a great example of a dark hammer pattern.

I think many people think lower timeframes are not good for candle patterns, but the problem is not timeframe it's the patterns themselves. The pattern that can be found on typical internet candle sites are simply not that reliable, regardless of timeframe. One needs to understand the underlying PRICE ACTION that creates the pattern.

While this is not a VSA thread, I would point out the Demand entering the market as the hammer pattern is being formed. Those who follow the VSA thread might notice the valid short at the No Demand on the top of the chart. This short was validate by weakness on the 15 min timeframe as well (this is a 5 min chart).

[brownsfan019]

Walter - good posts, some food for thought. Too many indicators for my liking, but that's the beauty of candlestick trading - patterns can be primary, secondary or a mix to get to your signals.

	Quote:	PivotProfiler
	I think many people think lower timeframes are not good for candle patterns, but the problem is not timeframe it's the patterns themselves. The pattern that can be found on typical internet candle sites are simply not that reliable, regardless of timeframe. One needs to understand the underlying PRICE ACTION that creates the pattern.

That's simply not true PP. We welcome all posts here, but your statement here is completely false. Patterns found on 'typical' sites work just fine. As a matter of fact, Walter and I found them all day today in the chat room in real-time and saw tremendous profit opportunities.

Many people simply do not understand HOW to use candlestick analysis PROPERLY. Some find a hammer and think it's time to go long but there's more to it than hammer hunting.

I enjoy your input PP and it would be nice to see more threads from you in our candle corner to mesh a couple trading methodologies. Problem is, I have yet to see any trading VSA in real-time do it with any success. You are more than welcome to join us in the chat room this week to discuss possible setups in real-time.

[brownsfan019]

	Quote:	PivotProfiler
	I know my posts here will be unwelcome but here is a great example of a dark hammer pattern. While this is not a VSA thread, I would point out the Demand entering the market as the hammer pattern is being formed. Those who follow the VSA thread might notice the valid short at the No Demand on the top of the chart. This short was validate by weakness on the 15 min timeframe as well (this is a 5 min chart).

Looking at your chart here PP, looks great!! Putting the VSA items aside since I don't use them (as you do at least), it basically looks like candle patterns at the extremes on the first WRB of the day for trade setups. Again, not exactly as you are using them but for sake of discussion here I see a Support/Resistance area designated by WRB. If so, we see a few possible trade setups here:



A few possible trades looking at creating S/R zones on WRB.



Now the next question I have is, what about the other WRB's that appear on the same chart?



By using Mark's definition of a WRB, I believe there's at least the ones I highlighted. So, during the day on this 5 minute chart how do you handle these other obvious WRB's? Or is there a reason they are not used?

I'm trying to see how/when a WRB is to be used for trading reference and when to ignore them, if you do at all.