explanation on naked trading

[motorola]

I've heard a lot about people who trades only using candlestick chart with no indicators whatsoever. How do you do this? what's the recommended timeframe for this? I use Japanese candlestick patterns listed in
Candlesticker by Americanbulls.com - Candlesticks
, but most of the time, no patterns emerges. Have a look at this GBP/USD H1 chart, taken yesterday. How do you read this chart? what information can you get?
Thanks

 

[NVP]

my friend....if you want to study candlesticks then do it with application, committment and time and you will be rewarded.......do this for 6 months properly then come back again if needed

this is not a productive excercise at present for anyone except exposing your lack of learning so far ...

N

 

[motorola]

Thanks very much for the reply, NVP.
I've been reading books about price action, patterns, and so on, but when applying to charts, I find simply guessing with my instinct (without adhering what the books said) yielded greater profit than when making trade decision based on candlestick pattern. That's why I'm trying to find out what others see when they're looking at the chart. What am I missing? in this chart, the last 3 candles resembles 3 white soldiers, so it should indicate a buy signal. but it will actually go on a downtrend for a while. Indicator didn't help too (tried EMA, Stochastic, Fractal,etc). Is it the timeframe (H1 too short) or anything else? I've been learning about fibonacci retracement too, but having difficulty about finding the right swing high and low. Most of strategies listed on website use indicators. Is this the way to go? because most of traders strongly discourage the use indicators, because they're not very reliable and clutter the chart. Thanks

 

[Albert Carey]

my friend....if you want to study candlesticks then do it with application, committment and time and you will be rewarded.......do this for 6 months properly then come back again if needed

this is not a productive excercise at present for anyone except exposing your lack of learning so far ...

N

+

 

[rathcoole_exile]

.... 3 white soldiers, ...... EMA, Stochastic, Fractal,..... ....fibonacci ...... indicators......

STOP STOP STOP !! get all this shyte out of your head right now !

step back and look at that chart.

what do you see before the large upsurge candlestick ?

A period of tight, consolidating range
yes ?

All you need in trading is Straight lines !!
Go back and draw a straight line across the Highs & Lows of the range

Research Stop Buy and Stop Sell entries.

Set a Stop Buy and a Stop Sell entry, preferably with pre-automated risk and target parameters.

Go to the pub and come back a few hours later to see how you've done.

***************************

alternatively, check out ABC or 123 patterns, but even that still boils down to setting Stop Entry triggers

***************************

and better yet, check out Phil Newton's Newtron Bomb thread on T2W to learn about forex breakout trading

 

[FringFX]

most of the time, no patterns emerges. Have a look at this GBP/USD H1 chart, taken yesterday. How do you read this chart? what information can you get?

i feel there is insufficient information in that chart to base a trade on. I prefer to see 200 to 500 or more candles on my chart.

 

[FringFX]

I find simply guessing with my instinct (without adhering what the books said) yielded greater profit than when making trade decision based on candlestick pattern. That's why I'm trying to find out what others see when they're looking at the chart. What am I missing? in this chart, the last 3 candles resembles 3 white soldiers, so it should indicate a buy signal

have you attached another chart? I do not see one.

most books are meant to propagate information overload through the use of and experimentation with indicators. some indicators are useful but the problem is most new traders go through a phase of using too many indicators simultaneously.

regarding your use of instinct when trading, well.... you may have found your style. spend some time to see if you can hone it to create a stable method to base your trades on.

do not put too much pressure on seeing what others see. you might be fitting a shoe that is not meant for you, in the process. having said that, stay open to the possibility that it could benefit you sometime in the future.

 

[Shakone]

i feel there is insufficient information in that chart to base a trade on. I prefer to see 200 to 500 or more candles on my chart.

Really? I see about 4 or 5 trades on that chart, lol.

 

[motorola]

I heard about forex about january this year. ever since, I've been playing with demo account, but even there my account blew out (okay, it's because I traded using feeling and instinct, no different like Las Vegas style). so I started learning candlestick patterns candlestickers.com: The Leading Candle Sticker Site on the Net and retried and blew the demo account again. At least I learned something, even when the website said "high probability", it failed quite spectacularly. Next step, I bought some books :
1. DiNapoli Levels by Joe DiNapoli
2. Profitable Candlestick Trading by Stephen W. Bigalow
they all used indicators, but still no luck.
few months back, I found more and more people saying that you should do trading naked, get rid of all the indicators, they just clutter the chart and they're just repainting what's already been told by the candles anyway. Right now, I'm very confused. That's why I wish to know what to do when you're presented with a chart like the one above? how do I analyze it? That's H1 chart. do I need to combine with higher TF? I hope experienced traders here are willing to help me to point me where to go now. Do I need to go back to memorizing candlestick patterns, because that... I have. Sometimes I even dream about memorizing candlestick patterns in my sleep. Another guess is I need to master how to determine support/resistance. Is this correct? thank you.

 

[wackypete2]

i feel there is insufficient information in that chart to base a trade on. I prefer to see 200 to 500 or more candles on my chart.

I hope you are not using a weekly chart.

Peter

 

[motorola]

I have several questions:
1. what's the difference between candlestick patterns (engulfing, harami, etc) and chart patterns (falling wedge, head and shoulders, etc)? how do they relate to each other? or are they not related at all?
2. how do we determine support resistance zones?
3. what is fibonacci pattern? what's its purpose? to determine S/R, or are there any other usefulness?
thanks

 

[101116]

You really shouldn't be asking those questions. That's some basic stuff you should learn from books/articles/whatever.

Basically you're asking "What is a pencil? I want to start drawing"

I'm sure you can learn all that and more from reading the FAQ. You can't just expect to ask 100 questions and then become succesfull.

 

[motorola]

Sorry, but I'm still a little bit confused about what I should do if candlestick pattern shows a bullish continuation, while chart pattern shows bearish reversal. basically I want to know how to handle contradicting signals. thanks

 

[101116]

Propably better off not trading it or experimenting than asking. What other information do you have? Maybe take a screenshot of the situation so people have some kind of an idea what's going on?

I'm also just starting with trading but still I think that those questions show lack of studying and/or trying to find some way too easy solutions. I mean the first three questions are the kind you should know and if you don't you should maybe find out from articles that the internet is full of. The last question can not be answered.

I don't mean to offend in any way. I just think you should do more reading by yourself before asking more questions.

 

[ChocolateDigestive]

my friend....if you want to study candlesticks then do it with application, committment and time and you will be rewarded.......do this for 6 months properly then come back again if needed

this is not a productive excercise at present for anyone except exposing your lack of learning so far ...

N

you can really cut down the screen time by buying some extra monitors. Running 4 monitors I was able to cut down the normal 10,000 hours requirement to be an expert down to 2,500 hours. Also if you step down the time frames you get to see more action. With IG index you can actually view 1sec candle sticks, compare this to someone learning from a 1 hour chart. You are actually seeing 60 x 60 = 3600 the number of bars.

So using the 1sec charts and a 4 monitor set up I was actually able to cut the 10,000 hours requirement to be expert down to 0.69444 hours or 42mins.

 

[The Leopard]

you can really cut down the screen time by buying some extra monitors. Running 4 monitors I was able to cut down the normal 10,000 hours requirement to be an expert down to 2,500 hours. Also if you step down the time frames you get to see more action. With IG index you can actually view 1sec candle sticks, compare this to someone learning from a 1 hour chart. You are actually seeing 60 x 60 = 3600 the number of bars.

So using the 1sec charts and a 4 monitor set up I was actually able to cut the 10,000 hours requirement to be expert down to 0.69444 hours or 42mins.

42 minutes seems a bit long. Could this be reduced by using a 6 monitor set up?

 

[ChocolateDigestive]

42 minutes seems a bit long. Could this be reduced by using a 6 monitor set up?

not really because it's hard to follow the 1sec chart on 4 instruments on 4 screens. good idea though, really if I could get the required 10,000 hours to below 30mins I could be on to a winner. The problem comes as well when you get a pin bar on the 1sec chart of 2 instruments, difficult to enter with IGindex, they have tight spreads and no dealer desk intervention so def worth a look.

 

[wackypete2]

you can really cut down the screen time by buying some extra monitors. Running 4 monitors I was able to cut down the normal 10,000 hours requirement to be an expert down to 2,500 hours. Also if you step down the time frames you get to see more action. With IG index you can actually view 1sec candle sticks, compare this to someone learning from a 1 hour chart. You are actually seeing 60 x 60 = 3600 the number of bars.

So using the 1sec charts and a 4 monitor set up I was actually able to cut the 10,000 hours requirement to be expert down to 0.69444 hours or 42mins.

Is this deja vu, or I have I seen it before?

Peter

 

[The Leopard]

Is this deja vu, or I have I seen it before?

Peter

I don't know whether it's ignorance or apathy, but I neither know nor care.

Ba-dum tish.

 

[stockduck]

OK, there is a TA training App if you have an Iphone.
The name is Stock Duck and it used real stock data.

Traing yourself for 1 month, and you will have a direct feeling of charts.

Link is here