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Old 08-13-2007, 07:05 PM
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Re: Constructing a candlestick trading plan

Here's some charts that happened today when my system fired off some signals, I'm trying to incorporate candlestick analysis to aid my decisions, but I'm not trading directly off candlestick analysis.

First off, I'm a newbie when it comes to candlestick analysis, so go easy on me

All charts are short term tick charts.

1st chart fired off a buy signal, but the two previous candles were trying to go higher but pushed down very fast in real time, then the signal was generated. I decided to step aside as although my system generated a buy signal, the candles were telling me otherwise.




2nd chart fired off a short signal but on that candle was also a dragonfly doji, so I passed on the trade, however would have turned out to be a winner.



3rd chart fired off a buy signal and also had the bonus of it being a hammer, I took the trade as it gave me extra confidence.



I think basically what I'm trying to say is that I'm starting to look at candlestick patterns to filter my trades, I'm still very new to this candlestick analysis but it looks so promising that it's got my full attention.

I've just ordered Steve Nison's book ( Japanese Candlestick Charting Techniques) so hopefully I can digest the concept better.

Cheers


Blu-Ray
Attached Images
File Type: png Chart1.png (22.1 KB, 154 views)
File Type: png Chart2.png (16.3 KB, 144 views)
File Type: png Chart3.png (13.9 KB, 144 views)

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