Trading using Candles Only....

I Like the way this thread is developing.
While I agree candlesticks with price action is the way I would like to add one more facet that I use
Namely the interaction of candlestick price action at fibonacci levels.You will be quite astounded by the price movement around fib levels.
 
gamma said:
You will be quite astounded by the price movement around fib levels.
Click to expand...

Hi Gamma,

Doesn't this depend on the instruments being traded? For example, from my experience Fib levels seem to work a lot better on Forex than say Equities.

Just interested...

Chorlton
 
Candlesticks. I'm all about Candlesticks!

However... I digress...

The higher the time frame the more the meaning. I'm not going to "read" candles on anything under a 5 min chart. That's just pure price action baby!

Open me up a 5 year weekly candlestick chart and I'll tell you not only the way those rivers flow... but how deep!

Cheers
JWG
 
Hi Ceydababy,

Great thread.

I prefer using candles, because I believe the bodies highlight the "levels" the market is auctioning around much better than the highs and lows.

Similarly, the shadows potentially represent rejection or acceptance of levels.

Here's one in ES today -

The market has been focussing on the 851.75 level, with a clear breakdown after the
1st hour of Regular Hours trading.

Cheers,
Joey
 

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Chorlton said:
Hi Gamma,

Doesn't this depend on the instruments being traded? For example, from my experience Fib levels seem to work a lot better on Forex than say Equities.

Just interested...

Chorlton
Click to expand...

My old age must be catching up with me! Lol!
I actually thought I had mentioned that I only trade Forex.I have not tried them on equities or commodities I can't see it working on equities, but have always wondered if they are suited to bonds?
Have you applied them to bonds.

Ceydababy, I hope I am not derailing this thread by bringing fibs into it, Candle price action and fibs make a powerful combination.
But if you want me to shut up please say and I will do so
 
Great thread!! I am a complete novice compared to you guys, but using candles makes perfect sense to me. Seeing the price action for the timeframe you are interested in is vital. Just getting the price at the "close" is missing out on a lot of information.

You just use these for Forex & Indices right?

Any chance of emailing me the details? The Word document doesn't work too well for me - writing small/blurred!
 
Biobob said:
Great thread!! I am a complete novice compared to you guys, but using candles makes perfect sense to me. Seeing the price action for the timeframe you are interested in is vital. Just getting the price at the "close" is missing out on a lot of information.

You just use these for Forex & Indices right?

Any chance of emailing me the details? The Word document doesn't work too well for me - writing small/blurred!
Click to expand...

Just doing a little crib sheet with a few details. If anyones interested drop me a line and I'll email a copy. I will use actual chart examples rather than the textbook examples on my original post. This will be a word document so everyone can open.

I use on FX and Indicies.

Gamma.....no problems with Fib, I use Divergance with the candles as well.

Can't use actual chart examples from today, it's a nightmare to cut out 3 bars from a chart and paste in to a word document....sorry guys.
 
Last edited:
ceydababy said:
Just doing a little crib sheet with a few details. If anyones interested drop me a line and I'll email a copy. I will use actual chart examples rather than the textbook examples on my original post.

I use on FX and Indicies.

Gamma.....no problems with Fib, I use Divergance with the candles as well.
Click to expand...

Many thanks - will drop you a private message with my email - when I figure out how!!!
 
gamma said:
My old age must be catching up with me! Lol!
I actually thought I had mentioned that I only trade Forex.I have not tried them on equities or commodities I can't see it working on equities, but have always wondered if they are suited to bonds?
Have you applied them to bonds.

Ceydababy, I hope I am not derailing this thread by bringing fibs into it, Candle price action and fibs make a powerful combination.
But if you want me to shut up please say and I will do so
Click to expand...

Hi Gamma,

No I haven't applied them to Bonds. Might be worth an investigation at some point though... ;)

Fib Levels have been "hit or miss" on equities IMO, whereas with Forex they do perform reasonable well.
 
Chorlton said:
Hi Gamma,

No I haven't applied them to Bonds. Might be worth an investigation at some point though... ;)

Fib Levels have been "hit or miss" on equities IMO, whereas with Forex they do perform reasonable well.
Click to expand...

I would imagine because FX is a much more technically traded market than Equities. Never looked at bonds, well I took a trade recommended by Arabian when we were pissed once. It worked but haven't touched it since.
 
An excellent thread, but I suppose that I should try and be a bit more constructive than just heaping praise...

1. As someone said, the longer the timescale the more confidence you can have in the candle that is formed. Worth saying again as this, I think, is important. I reckon 5 min is the absolute limit for indices, longer for (noisy) FX.

2. The .doc is useful (and as an introduction it is great) but it seems to me that the real skill/value is understanding what the candles 'say' in terms of supply & demand and in the context of the current market conditions, especially in relation to support/resistance.

Saturday night and I am not 'under the influence' like MrGecko, oh to lead an interesting life...

Ben
 
Thanks for that Killphil08 will use the dax to test the water in indices
 
fantastic4 said:
Anyone using the Heiken Ashi candles?
Click to expand...

Very similar to normal candles but with a slight modication to the the lows, highs & closes (based on the difference between current & previous candle). Google for a better detailed answer.

The resulting difference between Heiken Ashi candles and normal candles is that they appear more smoother on the chart and as such looking at trends can be easier.

Personally, I don't use them though...
 
Chorlton said:
Very similar to normal candles but with a slight modication to the the lows, highs & closes (based on the difference between current & previous candle). Google for a better detailed answer.

The resulting difference between Heiken Ashi candles and normal candles is that they appear more smoother on the chart and as such looking at trends can be easier.

Personally, I don't use them though...
Click to expand...

smoother = lag.....
 
Candles or Bars? Bars or Candles?

I'm into blondes at the moment, but I think I might fall for brunettes again.

Oh, sorry, I'm off thread aren't I?

Once the cognac has worked its way through I might come up with something more constructive.:p

Really, if you're making money with Candles, then Candles rule.

If you're making money with Bars, then Bars rule.
 
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