Traders Laboratory - View Single Post - Candlestick analysis and different timeframes
View Single Post
  #2 (permalink)  
Old 08-30-2007, 04:19 AM
Nick1984's Avatar
Nick1984 Nick1984 is offline
Nick1984 has no status.

Trader Specs
 
Join Date: Dec 2006
Location: Melbourne, Australia
Posts: 427
Thanks: 1
Thanked 1 Time in 1 Post
Send a message via MSN to Nick1984
Re: Candlestick analysis and different timeframes

Ok I'll give this a shot but I'm a candlestick noob so bear with me.

On the 30m chart the signals are not that strong imo. What I notice is that the volume on the blue candles starts to rise slowly after the 3 red candles. Of course we're all geniuses in retrospect so I'll try to play this as if I didn't know what was coming up. The first 3 blue candles don't do anything for me, especially the 3rd blue candle. Volume is going up but the 3rd blue candle has a long wick at the top. If I saw this I'd assume with the increasing volume that we'd be coming to a top just above the previous high from a few candles back. However with the next big blue candle I would have seen a great long as thats a very bullish candle on even bigger volume. I would have entered that at the close with a market order trying to squeese out a few points, with a stop placed at the close of the previous candle.

The 15 minute chart looks nicer to me. 3 candles after the gap up there is a candle that has a really long wick (i have no idea about names of candles so be kind when you judge me here). Seeing as there was a gap up, that candle is a short signal to me and I would be looking to go for a gap fill with a stop at the high of the candle. The gap fill doesnt occur but I would have scaled out most of my position by the time the low on the 2nd red candle occurs so the last part of my position would have been stopped out at break even. That being said, once I stopped out I would have quickly gone long again on the hammer candle at 10:30 (I think thats a hammer but again I don't know terminology here) with a stop being placed at the most recent low. Scaling out I would have stayed in that trade after 2 red candles had formed.

At 13:45 theres another similar candle that would have been the same play with a stop being placed at the bottom of the candle. That one would have turned out well as well.

On the 5 minute chart there is a really strong bullish candle at 9:30 which I would have gone long on at the close but that would have been a scratch trade being stopped out. The 3rd red candle after that confuses me cause it looks bullish but it ends up closing lower than the open, I wouldn't trade that one so I probabbly would have missed that down move.

At 10:40 there is another strong bullish candle which I would have taken at the close with a stop at the bottom of the candle. After we have a "doji" finishing in the lower range of the candle I would have been worried and 2 more red's after that would have seen me exit the trade. If i had an anchor chart up on the 15 minute time frame the candles are still blue so I probabbly would have stayed in it as the longer term trend is still up.

The last trade I would take is at 14:25. For 3 bars we had been stuck in a little channel but then there is a big blue candle that breaks out of that channel and closes above it. Would have entered in the close of that candle and probabbly would have held that to the close.

Thats as good as I can do trying to put myself in the position of not knowing whats coming ahead. Hope I passed the test brown!

__________________
Nick Constantin

Always look on the bright side of life...da da da da da da da da da - Monty Python
Reply With Quote