[brownsfan019]

Originally Posted by Blue »

But the trade wasn't easy. Initially it went against me about -2 pts and then on the first pullback it came back down to about +2 pts.

Oh yeah - sometimes the trades are not an immediate profit. Requires patience at times. If you read the entire thread, you'll see bearbull mention this a few times. The entry system is valid, but how you manage your trades, emotions and fears is up to you.

[Blue]

Here's another couple of tests: sim trade on NQ 5 min chart this morning.

Both were a little ambiguous.
In the first (candle 1) the market was mostly sideways, not a clear up-trend.

In the second, candle 2 was not a classic hammer, plus the EMA20 had been severely broken; the tail of the hammer was on SMA40 (red line).
Was this a case of (fulfilled) wishful thinking? Would candle 3 have been a better entry signal?

BTW, both trades netted a little more than 10 pts.

Any comments would be appreciated..

[brownsfan019]

Here's my view of the NQ blue:





I'm sure BB would say otherwise on a few of them, but I am looking for a pullback/retest of the 20 EMA with a bullish candle pattern to get long.

[brownsfan019]

Also, this thread will show you how to post charts directly in the thread so it's easier and quicker to see.

[Bearbull]

Once again on the Dax and Eurostoxx, immense patience is required as moving prices generate emotions and leave us with a feeling of having missed a great move had we taken the trade without the setup, but that is in hindsight

[Bearbull]

Same setup on ESmini, Entry could be the easy part, exit and trade management is the most difficult and crucial part.

1. A trader with a single contract moving the stop loss over every downbar would be stopped out on the 3rd bar.

2. Another's tactics may involve moving it over every swing high

3. Another exit point would be the support at the second arrow

4. some may choose the break of the first trend line, another trader may opt out for the break of the second trend line (Red)

5. A Trader with multiple contracts could take half on the 1st exit and adopt any one of the above for the rest.

[Fedeo]

Hi,
this is my first post on the Forum after I spent few months trying to get the more I could from TL. First of all I want thank all of you that are joining their knowledge with person as me (that by now can give almost nothing back).
I want to share now my view of the use of candlestick in day-trading and how I have used the knowledge I got from this thread/corner.
As I was doing in swing trading I have mainly focused on 2 entry signals the Hammer (as often mentioned here in the previous reply) and the bullish/bearish engulfing. I want to focus more now on the second one as it is the one I am using more and we had two interesting opportunities yesterday on the ES on 5 min charts.

For example in an up-trend I am basically looking for for a bullish engulfing that 'develop' under the EMA20 but with close above it . As also stated by Nison, the more the volume on the second bar the better.
The 5 min chart shows 2 possible entries (I personally got only the first one as I was leaving the office when the second one appears).


What I find also very interesting, and this is something that happens quite often, is that a bullish engulfing as shown above in the 5 min charts is also an hammer that retrace under the EMA20 in the 15 min chart (it basically depends from the candle before the engulfing). From my point of view this makes the pattern even more powerful. In our case this was especially true on the first entry and for example I think it was the same in the post from BF of "09-30-2008, 11:11 PM" for the entry at around 11:30.



As always stated here there are many times when the pattern can fail.For example in the 5 min I can see a failed one at around 11:30, even if in that case I don't know if I would get it or not as a lower high developed few bars before and EMA20 was quite flat (I only take the pattern in clear a trend market).

To make my post o a bit more consistent (and open to everybody critics) these are the "basic" rules I follow for the pattern:
- When the engulfing appear I "generally" entry on the bar after a tick above the close of the second bar and place the stop loss one tick below/above the close of the second bar.
- I normally set the target based on market profile or S/R analysis
- I move the stop to B/E normally when the price touch the latest swing before the engulfing.

As always said here these are generic rules that I try to follow to have a consistent plan but that can be changed based on live osservation of the market.

Sorry for my long post...but as this was the first one I had lots to say...:-)...

Still many thanks to all ...and a bit more to BF for all the great job done here in the candlestick corner and everywhere in the forum...

[brownsfan019]

If you are reading this thread, then I would suggest reading this new thread I started after reading an article in the recent SFO.

Great article, much pertains to us here. I didn't want to clutter this thread up, so I kept it separate.