My Forex Journal

TimV · Joined: 24 Sep 2004 Posts: 15 Location: USA

10:15 SOLD EUR 1.2328, SL 1.2358, target PP at 1.2310
engulfing bear candle after rejection at 1.2344

CLOSED 11:21 at 1.2311 +17

candlestick1 · Posted: Tue Sep 28, 2004 11:00 am Post subject: good trade

Good trade, let the signals tell you what is happening at critical resistance and support

FrankC · Joined: 23 Sep 2004 Posts: 269 Location: Chile

Exited at 1.2609 (+29)

A shooting star hanging on 200EMA should be a good place to exit.

Guest · Posted: Tue Sep 28, 2004 11:56 am Post subject:

And here is the picture of the above trade:

TimV · Joined: 24 Sep 2004 Posts: 15 Location: USA

Good Trade, nice exit

Guest · Posted: Tue Sep 28, 2004 12:03 pm Post subject:

Thanks Tim, and the same with your trade.

I think we have some technical problem with this forum now: my last post was registered as "guest", also the button for editing function has been disappeared!! Perhaps the web admin. could fix it.

FrankC · Joined: 23 Sep 2004 Posts: 269 Location: Chile

Ooops! Sorry, my mistake...I wasn't logged in. For some strange reason I was logged out.

FrankC · Joined: 23 Sep 2004 Posts: 269 Location: Chile

Just sold 1.2596 SL 1.2629 TP 1.2560

A Shooting star, followed by a bearish engulfing line. Also a cross in stoc. is confirming this short trade.

13:55 EST --- Exited at 1.2596 (0)

Didn't like the bullish engulfing bar forming in 30 min. chart.

TimV · Joined: 24 Sep 2004 Posts: 15 Location: USA

Hi Frank,

A couple of times now you have mentioned "engulfing line". Does this mean that you count the tail of the candle when determining if it's engulfing or not. I look at only the body when determing an engulfment.

Tim

candlestick1 · Posted: Tue Sep 28, 2004 12:52 pm Post subject: engulfing signal

Engulfing signal just need to engulf the previous body, not the shadows, but if it does engulf the shadows, the stronger the signal

FrankC · Joined: 23 Sep 2004 Posts: 269 Location: Chile

Thanks Stephen for the explanation. As the master pointed out, the engulfing bar is when it covers the last bar's real body.

FrankC · Joined: 23 Sep 2004 Posts: 269 Location: Chile

Hello Stephen(candlestick1),

In another forum(Oanda), someone asked me about the gaps, and whether it bothers me that there aren't any gaps in Forex. My response was:

Absence of gaps in forex doesn't really bother me. Gaps are extra forces built into other trading instruments such as stock/commodities. In forex, with its massive daily trading volume, gaps are not of necessity. I read books/ideas from Nison, Morris, and Bigalow, just to name a few to learn about candle patterns. Thanks to forex by eliminating the concept of gaps in candlestick trading. It is just made candle trading much easier.

Your comment is greatly appreciated.

candlestick1 · Posted: Wed Sep 29, 2004 12:05 pm Post subject: Gaps

gaps will not be a factor in Forex charts unless you are breaking up the time periods, for example terminating chart data while you are sleeping, then you will have breaking in the data. However, there are a number of formations that although can be modified to the point of not being the premium candlestick signal, the jist of the signal will be as effective. An example would be a morning star where the indecision time frame does not need to see a gap away and a gap back, just a indecisive trading day in between the two large candles.

FrankC · Joined: 23 Sep 2004 Posts: 269 Location: Chile

Thanks for your reply. So in a morning star, a doji is sufficient to see between the engulfing candles, instead of a gap up/down. That's good to know.

Cheers.

FrankC · Joined: 23 Sep 2004 Posts: 269 Location: Chile

Sideway price action between 1.2580-1.2620...news are out at 8:30 & 10 today...on the sideline.

7:34---a sharp downside breakout has just occured...next support is at 1.2530-50 area...this is the hardest part in candlestick trading:how to trade a tight sideway market, prior to a breakout.

08:00 --- this pair is noise diving!! it's quite interesting to see this sell-off prior to news. On the sideline.

08:55 ---looks like "big boys" made their move prior to the news, and now they are gone leaving the left-over for us!...hope to see some meaningful candle signals, until then will stay out.