Beginners' club - Candlestick analysis

[iyerboi]

Pravi, it's not good to chase a trade, but nevertheless, you should still get a few points from it. As of now upside looks limited at 1946.

chase a trade? - y would u say tat?

the upside no. u r referrin to is the high from strong bearish candle on 5 mar rt?

 

[4xpipcounter]

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chase a trade? - y would u say tat?
You went long in a bear market after a strong recovery. I don't see a particular reference point for that entry, unless you can point it out.
The fact you wanted to enter yesterday, but did not, and then you entered today after it moved further in your desired direction tells me you chased the trade.
Also, the fact you used the term "keeping my fingers crossed" tells me you are not sure of your position. There is no need to cross your fingers when you are sure and confident of your position.

the upside no. u r referrin to is the high from strong bearish candle on 5 mar rt?
Peaks on candles are not save S or R's. That peak had nothing to do with the upside limitations. It had everything to do with the TL break, the fact price has to correct back to the TL, and the fact another drop will ensue from that point.

BTW, those comments were not designed to put anyone down. I can be brutal in my straightforwardness, but I'm also just being honest.

You will find as you progress that the markets yield many wonderful opportunities daily. There is no need to be desperate or feeling like you need to chase a trade. Just make sure you have defined parameters for your trades.

Also, it will be a wonderful feeling for you when you get to the point that you will be able to enter all your trades with a refined confidence and surety, rather than the idea of "keeping your fingers crossed". You can cross them, but they will have nothing to do with moving the markets.

Stay right in there! Keep asking questions. Keep making comments. Everything will come together for you.

 

[4xpipcounter]

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Here's an example of the EUR/USD correcting back to the TL, and then already heading back south. The low will be broken, because it is a new trend, because we know that by the TL break. This pair is headed to 1.2991. The way we know that is by having ulterior means to decide that.

I've been tracking the EUR/USD and the USD/JPY of late only because I've been using both as a cross-reference to my short position that I have been holding on the EUR/JPY. That is why I used the EUR/USD as the example.

 

[iyerboi]

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BTW, those comments were not designed to put anyone down. I can be brutal in my straightforwardness, but I'm also just being honest.

You will find as you progress that the markets yield many wonderful opportunities daily. There is no need to be desperate or feeling like you need to chase a trade. Just make sure you have defined parameters for your trades.

Also, it will be a wonderful feeling for you when you get to the point that you will be able to enter all your trades with a refined confidence and surety, rather than the idea of "keeping your fingers crossed". You can cross them, but they will have nothing to do with moving the markets.

Stay right in there! Keep asking questions. Keep making comments. Everything will come together for you.

lol - to be frank i din notice the trend line break (i shdve!!) and instead went by the candles.

i used fingers crossed as i do not like to sound too sure - someth that goes with my habit

ya, id wanna get there someday. not for the money. largely cuz this is wat interests me, despite the losses have some queries but not able to spend much time at the pc. will do so soon.

 

[4xpipcounter]

Like I said, I wasn't putting you down. You can say you are at the "finger crossing" stage. There is no problem with that. I was really pointing out that there will come a time when you will be sure about your entries and exits. There will come a time you will want to sound sure because you will be sure.

If this is what truly interests you, then you might as well be there for the money. It is nice to be bale to do full-time what really interests you. If you are going to do what interests you on a full-time basis, then you will be there for the money.

The TL break happened right at the top of the cloud which adds confluence to the R.

lol - to be frank i din notice the trend line break (i shdve!!) and instead went by the candles.

i used fingers crossed as i do not like to sound too sure - someth that goes with my habit

ya, id wanna get there someday. not for the money. largely cuz this is wat interests me, despite the losses have some queries but not able to spend much time at the pc. will do so soon.

 

[adityasaraf007]

Paul Sir.... this might also be a Bullish 1-2-3 on HeroMotoCorp..... 1 is on 27th Jan and 3 on 6th Mar.... and cloud also provided support to it...

 

[4xpipcounter]

Adit, you're right, but that is only "if" the 1-2-3 plays out. The overriding factor right now is the bounce off the TL, and the move further south.

There are a couple of things I don't like about this pattern:
1. It lacks symmetry. It looks more like a pin head that fills up the whole vertical length of the chart.
2. The 2 is formed right at the peak. In order for a bullish 1-2-3 to be effective, it is best formed at the dip, such as the case around the 1400 area. You got that long downtrend, then this little 1-2-3 pattern that looked insignificant, yet perfectly formed in the perfect spot.

In essence, after the DOWN has been completed, then look for the smaller and more subtle formation, and then enter a long.
You will know when the DOWN is complete after the previous dip has been broken. If you have a 4-hour chart, I would even look for a 1-2-3 on it after the new dip has been formed.

Let me add that the 2 on the 1-2-3 you noticed is going to yield some huge pips if broken. That is just a fact, but, in this case, view it as breaking a swing high more than capitalizing on a 1-2-3. Even if the 1 is taken out, the break of the peak is still going to yield pips.

Paul Sir.... this might also be a Bullish 1-2-3 on HeroMotoCorp..... 1 is on 27th Jan and 3 on 6th Mar.... and cloud also provided support to it...

 

[Beduk]

your username got changed pravi.iyer :O

 

[iyerboi]

your username got changed pravi.iyer :O

Yup beduk

 

[DanPickUp]

Hi Paul

Just my two cent to your charts with all my respect to your knowledge:

http://img62.imageshack.us/img62/8183/27874884.gif

Next one:

http://s10.postimage.org/ofl4rckex/image.gif

Next one:

http://s13.postimage.org/8b2e9a8mv/image.gif

Next one:

http://s15.postimage.org/ccnm9b9e3/image.gif

Isn't it a bit confusing with all this changes of colors all the time, isn't it ?

No way to use always the same color system ? Just a simple question.

Dan