Traders Laboratory - View Single Post - Candlestick analysis and different timeframes
View Single Post
  #3 (permalink)  
Old 09-03-2007, 08:09 PM
brownsfan019's Avatar
brownsfan019 brownsfan019 is offline
brownsfan019 is feeling the pain of losing a dog

 
Join Date: Jan 2007
Posts: 2,099
Thanks: 30
Thanked 85 Times in 56 Posts
Re: Candlestick analysis and different timeframes

Nick,
That's good work for a candle noob!

Let's look at the 30 min chart first:





It looks like we had some similar ideas here. This 30 min chart provided 3 possible setups and depending on if your entry criteria was met, you went 2 for 3 or 2 for 2.

I like this 30 min chart example b/c it was pretty clean for the most part.


15 min chart:



Now, before anyone freaks out there, there's one important thing to keep in mind - while there are a number of possible candle setups, it comes down to if your entry criteria was met in terms of a valid pattern or not. My personal choice on a longer timeframe would be want some sort of confirmation of the pattern before initiating a trade.

The 5 min chart would take too long to annotate tonight, so we'll pass on that one for now.

But Nick did a good job, esp as a newbie to candles, in spotting some nice possible trade scenarios on the 15 and 30 min charts.

So what's the catch, right?

The catch is that some days, the 15 and/or 30 just don't have it with the candles. It's easy to spot these days after the fact, but they are the days were not much really took place. It's easy to see on a 1 or 3 minute chart where you see action, but noting really netting much out.

Good example - 30 min ES chart from 8-2-07:




You'll see that it was just a tight range most of the day. I see 2 candlestick patterns that both worked, but nothing to get excited about. I guess on a tight range day if you can come out unscathed when using a higher timeframe, you should be happy with that. The difference being that a 1 or 3 minute chart that day could have provided more.
Attached Images
File Type: png tl 30 min ES.png (11.7 KB, 81 views)
File Type: png tl 15 min ES.png (13.1 KB, 83 views)
File Type: png tl 8-2-07.png (11.4 KB, 82 views)

__________________
Click here to start playing Combat Grounds an online war game.

Click here to play an online football game. Create a player and build him up to the pros.
Reply With Quote