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Thread: Why I trade with candle sticks and no indicators

  1. #1
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    Why I trade with candle sticks and no indicators

    Hello all.

    Will be sharing to you some reasons why I trade with candles with resistance and support line and no indicators



    Here is a screenshot of My on going GBPJPY trade, I will explain why I took it and why I still held it.

    Attachment 12655

    At arrow 1. being the support area, the formed BULLISH PIN BAR encouraged me to take the long position, because it signals BULLISH ATTACK and at that moment, the weekly time frame was strongly bullis.. So I took the trade and set my stoploss below the pin bar.

    At arrow 2. Being a resistance line which is not too strong(The market tested it not as strong as the below support area. I was expecting a breakout, But a pull back occurred at Arrow 3, I then moved my stoploss to break even(I will explain more of this on the indicator screen shot).

    Then, I waited for a signal that confirms a continuation or a decline in price.. And BOOM!! After some few days, a signal formed for me around the Yellow eclipse area Which gave me the confident to wait for a breakout and it occurred and I am still holding the position and it has moved over 1200 pips!!!


    WHAT I WOULD HAVE DONE IF I TRADED WITH INDICATOR, BOLLINGER BANDS.

    I started learning forex with Bollinger bands.

    But along the line, I stopped using it and learning just candle stick and support and resistance line.

    Here is a screen shot of the same trade with bollinger band on it.

    Attachment 12656

    Arrow 1. Which is a support area with the Bollinger Bands Supported the candle stick, because when a candle breaks from a bollinger band lower or upper bands, it signals over sold or over bought market, therefore at the support area, the market was over sold and it formed a pin bar.. FIne, it'd have supported me to take the trade.

    Arrow 2 Being a minor resistance and the Bollinger BAnds signals a over bought market because the candle at Arrow three broke out of it. THEREFORE ON FOLLOWING THIS INDICATOR, I WOULD HAVE CLOSED MY LONG POSITION AND THEN START SELLING HOPING THAT THE MARKET WILL START GOING DOWN AND WOULD HAVE LOSS MY MONEY BECAUSE THE MARKET CONTINUED THE UPTREND MOVEMENT.


    In conclusion.

    I am not saying that Indicators are bad, or people who make use of it are not profitable, but I just think that as a swing trader, it will not help me hold my position for long, The middle bollinger band is a very confusing area( I will explain it in other threads).

    Also lesson I would want Beginners in here to learn is that:

    1.BE PATIENT. I was patient for some few days to wait for a break out.

    2.TRADE THE LONGER TIME FRAME AND KNOW YOUR S&R LEVELS.

    GIve me a thump up if this is useful.

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  2. #21
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    Quote Originally Posted by cozard007 View Post
    Well, there could truly be the distinctions in the use of the indicator and the candlestick trading, because the candlestick trading is in pattern, while the trading of the indicators are for price follow phenomena, and all the time the indicator could be effective, so is the candlestick trading, all depends on the trader working things out.
    Well, some indicators like the bollinger band that when used could help a trader that knows how to make use of candle stick pattern when to take a trade setup.

    The bollinger band when a candle with some qualifications broke from it, it could be a good reversal setups.I do make use of it, but along the ling there seems to be some confusion so therefore I decide not to go ahead with it.

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  3. #22
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    Quote Originally Posted by splash View Post
    Well, some indicators like the bollinger band that when used could help a trader that knows how to make use of candle stick pattern when to take a trade setup.

    The bollinger band when a candle with some qualifications broke from it, it could be a good reversal setups.I do make use of it, but along the ling there seems to be some confusion so therefore I decide not to go ahead with it.
    Of course, there are indicators that would help in confirming or validating the candle sticks, but it is not advisable if the sole purpose is a naked trading system. The first thing to watch is the motive of the trader in using the trading strategy, this is why I think traders should have the knowledge of the both independently and use it at will.

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  4. #23
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    [lang=ar]I chose to use a candle stick because it has the ability to display a lot of information from a history trip price.

    candle stick displays the following information:
    1. Color of candle stick explaining directions uptrend and down trend and very clear to distinguish the difference.
    2. HLOC price history record, the same as that described by the bar chart afford.[/lang]

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  5. #24
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    Buying and selling using the candlesticks isn't a brand new point to become, We type the cost motion by using it too, what is important is actually to achieve the design you need to accompany, as well as if you want you may include sign or even not really. Along the way associated with not really including sign, it is best the actual investor go via the long run buying and selling techniques, this could end up being earnings massing for that investor.

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  6. #25
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    Quote Originally Posted by cozard007 View Post
    Of course, there are indicators that would help in confirming or validating the candle sticks, but it is not advisable if the sole purpose is a naked trading system. The first thing to watch is the motive of the trader in using the trading strategy, this is why I think traders should have the knowledge of the both independently and use it at will.
    Good point made, but then, a trader making use of any one should just master it and learn it therefore should be able to make use of it the right way, in forex trading what matters is taking the right trading strategy that has been learned. Of course those indicators could be confusing, though same as candle stick, one thing I have learned is that nothing is perfect.

    I chose to use a candle stick because it has the ability to display a lot of information from a history trip price.

    candle stick displays the following information:
    1. Color of candle stick explaining directions uptrend and down trend and very clear to distinguish the difference.
    2. HLOC price history record, the same as that described by the bar chart afford.
    I think I should let us know in here that the use of candle stick might be profitable but that should be only when we can identify support and resistance levels and we should not make decision based on every formed candle, that could lead to loss.

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  7. #26
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    Quote Originally Posted by splash View Post
    I think I should let us know in here that the use of candle stick might be profitable but that should be only when we can identify support and resistance levels and we should not make decision based on every formed candle, that could lead to loss.
    Candle sticks can reveal a lot more than supports and resistances. Studying candle sticks is a challenge which trader should be skilled with. I think every trade can be a challenge if a trader is not following his trading rules with complete discipline. a trader should have some kind of edge over the market and the can be any kind of useful indicator or his own system.

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  8. #27
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    Quote Originally Posted by forexfighter007 View Post
    Candle sticks can reveal a lot more than supports and resistances. Studying candle sticks is a challenge which trader should be skilled with. I think every trade can be a challenge if a trader is not following his trading rules with complete discipline. a trader should have some kind of edge over the market and the can be any kind of useful indicator or his own system.
    No, I make use of it with the help of support and resistance line, if I should not be able to get a valid support or resistance line where the candle stick has formed, I better ignore the set up.

    I think in forex trading we need to learn and understand the strategy. I have some couple of trading setup by the candle stick pattern that has failed me also, therefore we need to be careful on using them.

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  9. #28
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    Actually i like this type of trading . believe me when I say that long time a go I did not draw any indicators on my charts . only I follow the news and translate the shapes of the candlesticks and try to make a good money management to help me save my time and effort in trading but not spend on any of the indicators

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  10. #29
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    Thing being that any trading strategy could work for any one, the thing that one needs to do is that he has to learn and master the one that he is making use of. Apparently, there are so many successful traders that are making use of the candlestick pattern and so far it seems to be working for them and they are making good money using it.

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  11. #30
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    Quote Originally Posted by sharegistFX View Post
    Thing being that any trading strategy could work for any one, .
    You are right, any one can thus make use of any trading strategy and it will work for them, the question that needs to be asked is the success rate.

    However, you see, so many traders makes money using candles, the thing is that it is some how hard to learn and will take time, therefore most traders are not after developing a long term source of income, they want it fast.

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