Intraday Candlestick Trading

[walterw]

jejeje "hammer hunting"... you do that copyright right away Brown ¡¡ good phrase... yes, the context I show there may be a little cloghted eventually, the nice thing is how this patterns work so well responding to this context analisis... now so far I am looking a lot of charts here and the "flip" or S&R changing roles wich is also teached by Nison probably is a much more easier and robust context... only there is not so much amount of setups on a trading day... the groups of spining tops failing really is a very robust one as well... its that pause preparing to continue...

Brown since this studies on ES I am also looking at ES with more interest, more cars, very nice performance... I will post some scalping waco things I see as well but on my chimp thing thread... let the interaction continue...

One question : had you seen some way to relate 15 min context into the 5 min setups ? thanks Walter.

[brownsfan019]

Walter - one follow up. As I mentioned before, the lower the timeframe, the more likely that some additional confirmation is needed to take a possible candlestick signal. I think you are seeing this with your threads tonight.

My advice is simple - find something that is simple to follow and then test it out in real-time. In other words, perhaps JUST keltners or JUST the MACD, etc. could work on the 5 minute. Maybe it will, maybe it won't.

As we've discussed in the chat room, the real key here is actually how/when to EXIT. There are plenty of trades we saw that went +2 (or more). Of course we want to stay in the winners longer and get out when it's not there, but easier said than done.

So I think the entry thing is good, but I actually think the exit plan is MORE important with candlestick trading.

Take my opinion for what it's worth.

[brownsfan019]

	Quote:	walterw
	jejeje "hammer hunting"... you do that copyright right away Brown ¡¡ good phrase... yes, the context I show there may be a little cloghted eventually, the nice thing is how this patterns work so well responding to this context analisis... now so far I am looking a lot of charts here and the "flip" or S&R changing roles wich is also teached by Nison probably is a much more easier and robust context... only there is not so much amount of setups on a trading day... the groups of spining tops failing really is a very robust one as well... its that pause preparing to continue... Brown since this studies on ES I am also looking at ES with more interest, more cars, very nice performance... I will post some scalping waco things I see as well but on my chimp thing thread... let the interaction continue... One question : had you seen some way to relate 15 min context into the 5 min setups ? thanks Walter.

I like how Nison can draw S/R zones as well. I do think however, it's not as clear on an intra-day chart, in real-time. I know the charts can look beautiful after the fact, but not always so easy in real-time.

As for the 15 / 5 correlation, I saw a few trades today where the 5 did not meet my criteria but the 15 did. Instead of taking the trade based on the 15, I can enter the 5 minute chart knowing the 15 is behind it. Example - say I was looking for a long the 5 minute and my entry criteria was not met, but on the 15 minute a confirmed long appeared. I can enter the 5 minute long knowing the 15 confirmed. I do not know how often this will happen since the 5 is going be more responsive than the 15 obviously. But, it is an option to consider. Of course, the can of worms then is to look at as many increments as possible to trade off the 5.... If we have the 5 and 15 up, why not the 10? Seems logical....

[nycdweller]

Brownsfan019, what's a WRB? Where can I learn more info? Thanks.

	Quote:	brownsfan019
	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.

[brownsfan019]

	Quote:	nycdweller
	Brownsfan019, what's a WRB? Where can I learn more info? Thanks.

http://www.traderslaboratory.com/for...dles-1480.html

[nycdweller]

Thank you. Wow, you are quick! I just posted my message and you responded within a few seconds. I'm starting to think you are a computer.

	Quote:	brownsfan019
	http://www.traderslaboratory.com/for...dles-1480.html

[walterw]

Absolutely ¡¡ exits will empower the entire aproach...

not easy as it is a very hard topic... I must confess I am a scalper because I found on scalping a way to exit trades in a very simplified manner...

Any way, candles are a very simplified and organized way of seeing price action...

cheers Walter.

[brownsfan019]

	Quote:	nycdweller
	Thank you. Wow, you are quick! I just posted my message and you responded within a few seconds. I'm starting to think you are a computer.

No prob, I just happened to be on when you were.

Or I am always on watching posts closely....

	Quote:	walterw
	Absolutely ¡¡ exits will empower the entire aproach... not easy as it is a very hard topic... I must confess I am a scalper because I found on scalping a way to exit trades in a very simplified manner... Any way, candles are a very simplified and organized way of seeing price action... cheers Walter.

I think we are similar in this regard as I was mentioning just taking a +2.00 on the 5 min ES chart trades. It's simple, easy and very attainable. Of course the other side will say let the market take you out, etc. but there were a number of trades I saw on the 5 min chart today where taking 2-3 yielded nice results, all day long. A simple, all out exit strategy helps ensure you make money in 'choppy' areas and in strong movements as well. Of course, you could make more in the strong movements by staying in longer, but to do that, you must sacrifice profits in choppy conditions. A simple bracket order is a great and EASY way to exit trades on shorter timeframes.

[brownsfan019]

And another follow up Walter - the one advantage to entering @ the close is that the +2.00 becomes even more attainable on winners. Actually, the profit target may need to be a little larger IF entering @ the close.

Of course, more stop outs will ensue by entering at close, but smaller losses...

Now you see why I tell people candlestick analysis CAN work but there is SO MUCH MORE than hammer hunting. There's so much that goes into a proper trading plan that many just simply won't put forth the time and effort required.

[walterw]

In that case momentum discernment may come handy to switch exit methodolgies... one simple method I use to discern mometum and change this "sensitivnes" on the exit management is to see how prices drive far from the keltners... on that case I asume momentum is showing its paws, when market strugles to go far outside from keltners we can asume a cycle condition (wich actually is the norm in the market) and scalping fixed exit strategies may give better results in this case... key for that kind of exits is to ensure a good minimal RRR of 1:1.5 at least... cheers Walter.