[wrbtrader]

Originally Posted by phoenix01 »

Ive spent quiet a bit of time on candlestick and been using them since the start of my trading. But it just seems difficult to get any sort of risk to reward edge with candlesticks on say the 5 minute chart on the ES.

I don't know how your using candlestick pattern let alone pullback price actions. In addition, I don't know what exactly you're having problems with because you're using generic explanations without any chart examples.

Anyways, its absolutely critical that you post chart examples with any of the stuff you've been asking questions about or have used along with your interpretation of what you've been doing that's problematic. Without it...you're going to find yourself continuing asking questions whenever someone shows up and mentions another method for using with trading pullbacks.

My point is that there's a possibility that you already have a good method of trading pullbacks whatever that may be. Yet, you're just using it incorrectly or you have poor trade management after entry. Further, such can't be verified because nobody really knows what's on your monitors when you trade. That's why when it comes to talking about technical analysis methods...at some point you really need to see it (visual representation).

[:::grimReaper:::]

Originally Posted by DionysusToast »

JTrader - have you tried the footprint charts that come with the free GOMI indicator package for NinjaTrader?

Where? I believe he doesn't include that as part of the free package.

[BlueHorseshoe]

Originally Posted by SIUYA »

there is only one thing for certain......if you wait for a pullback you will capture every loss when that pullback fails, and yet you will miss some of the winners as the pullback does not pullback far enough, or never comes. Its a trade off.

One of the advantages of this style of trading is that you can use limit orders for entry and (profitable) exits (though it's going to be a market order to get out at a loss). Not needing to worry about the effects of slippage therefore makes it much easier to have confidence in the results of backtests where you require price to trade through the limit order - in fact, the such results should represent a 'worst case' scenario.

However, the effect that SIUYA describes above will only ever be exaggerated by the use of limit orders.

[DionysusToast]

Originally Posted by :::grimReaper::: »

Where? I believe he doesn't include that as part of the free package.

It's on the BMT Elite Members version.

[TimRacette]

I use a similar strategy to sr100. I also use a basic low of high bar break and high of low bar break to signal shorts and longs. (i.e. we pullback in an uptrend I wait for the high of the lowest bar to break before entering long, vice versa for shorts).