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Thread: Daily Candlestick Play Instructions

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    Default Daily Candlestick Play Instructions

    Bullish Harami Candlestick Play Instructions


    Step 1 - Look for a BULLISH HARAMI resting on MINOR PRICE SUPPORT, and/or a rising Major Moving Average (10 MA, 20 MA, or 50 MA) on the daily chart.


    Step 2 - Pull up a 15 min. chart of the stock.

    Step 3 - Note the high price of the previous day's daily HARAMI candlestick. Your entry point is 1/8th above this price.

    Step 4 - On the following day, allow the stock to trade for 5 minutes before entering. Enter the stock only if it breaks above the entry criteria (1/8th above previous day's high) and only after it has traded for 5 minutes. If the stock does not break above the entry point, do not enter.


    Step 5 - Place the initial protective stop 1/8 below the low of the previous day's HARMAI candlestick. Exit the stock for a small loss immediately if the stock breaks below this price.

    Step 6 - Monitor the stock as it continues to rally upward. Look for areas of support (either minor price support or base price support) on the 15 minute chart, and re-adjust your protective stop price upward as the stock continues to rally. This will protect your profits, and/or minimize your losses if the stock should turn against you.


    Step 7 - Monitor the stock on a 15 min. charts as it climbs upward, and stay in as long as the protective stop is not violated. Allow the stock to achieve 1 point or greater profit, and then look for signs of weakness. A reversal candlestick pattern on the 15 minute chart will serve as a good indicator for a reversal point. After the price reaches an area of resistance and weakens, sell half of your position. This may occur on the same day as entry, or on the following day, depending on the strength of the stock. Maintain the latest protective stop price for the remaining half of your position.

    Step 8 - Allow stock to continue it's rally. After the stock has rallied further, again look for an area of resistance where the stock begins to weaken and reverse. This could be a DOJI candlestick, or any other reversal candlestick pattern on the 15 min. chart. Sell the remainder of the position for profit.

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    Bearish Harami Candlestick Play Instructions


    Step 1 - Look for a BEARISH HARAMI against MINOR PRICE RESISTANCE, and/or against a declining Major Moving Average (10 MA, 20 MA, or 50 MA) on the daily chart.


    Step 2 - Pull up a 15 min. chart of the stock.

    Step 3 - Note the low price of the previous day's daily HARAMI candlestick. Your entry point is 1/8th below this price.

    Step 4 - On the following day, allow the stock to trade for 5 minutes before entering. Sell short the stock only if it breaks below the entry criteria (1/8th below the previous day's low) and only after it has traded for 5 minutes. If the stock does not break below the entry point, do not enter.


    Step 5 - Place the initial protective stop 1/8th above the high of the previous day's HARAMI candlestick. Cover the stock for a small loss immediately if the stock breaks above this price.

    Step 6 - Monitor the stock as it continues to decline downward. Look for areas of resistance (either minor price resistance or base price resistance) on the 15 minute chart, and re-adjust your protective stop price downward as the stock continues to decline. This will protect your profits, and/or minimize your losses if the stock should turn against you.


    Step 7 - Monitor the stock on a 15 min. chart as it declines downward, and stay in as long as the protective stop is not violated. Allow the stock to achieve 1 point or greater profit, and then look for signs of strength. A reversal candlestick pattern on the 15 minute chart will serve as a good indicator for a reversal point. After the price reaches an area of support and strength, cover half of your position. This may occur on the same day of entry, or on the following day, depending on the weakness of the stock. Maintain the latest protective stop price for the remaining half of your position.

    Step 8 - Allow stock to continue it's decline. After the stock has declined further, again look for an area of support where the stock begins to strengthen and reverse. This could be a DOJI candlestick, or any other reversal candlestick pattern on the 15 min. chart. Cover the remainder of the position for profit.

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    3 Black Crows Candlestick Play Instructions


    Step 1 - Look for 3 BLACK CROWS resting on Minor Price Support, and/or a rising Major Moving Average (10 MA, 20 MA, or 50 MA). Ideally you want to find a series of 3 red candlesticks; however, 2 red candlesticks can also work well.


    Step 2 - Pull up a 15 min. chart of the stock.

    Step 3 - Monitor the stock's trading during the last 30 minutes before the close, and enter only if the stock is closing strong near it's high price of the day. You will reduce your risk by entering only if the range of the day (high price minus low play price) is narrow. This way, when you set your protective stop at the day's low, you will only take a small loss if the stock should reverse.


    Step 4 - Observe the daily chart after the market has closed. The stock has now formed a BULLISH HARAMI on the daily chart, but you were able to spot the setup on the previous day and enter before the rest of the herd! On the next day, observe where the stock opens. If the stock opens relatively near to the opening price (say within 5/8th), place the initial protective stop 1/8th below the low of the previous day's candlestick. Exit the stock immediately if the stock breaks below this price. If the stock gaps up, proceed to Step 6. If the stock gaps down, proceed to Step 8.

    Step 5 - Monitor the stock as it continues to rally upward. Look for areas of support (either minor price support or base price support) on the 15 minute chart, and re-adjust your protective stop price to 1/8th under these levels of support. This will protect your profits, and/or minimize your losses if the stock should turn against you.


    Step 6 - If the stock closes strong on the previous day, there is a good chance that the play will be spotted by other traders (note how a BULLISH HARAMI is formed on the daily chart), and result in a morning price gap upward. If the stock gaps up by over 5/8 point, sell half of the position immediately after the open to lock in your profit. Place a protective stop 1/8th under the first 15 min. candlestick for the remainder of your position.

    Step 7 - Monitor the stock as it continues to rally upward. Look for areas of support (either minor price support or base support) on the 15 minute chart, and re-adjust your protective stop price to under these levels of support. This will protect your profits, and/or minimize your losses.


    Step 8 - It is also possible for the stock to gap down on the following day due to overall market weakness. If the stock gaps down and opens 5/8th lower than the previous day's close, DO NOT PANIC AND SELL RIGHT AWAY. In most cases, the stock will rally after a gap down, and the low price of the day will occur in the first 5 minutes of trading. Let the stock trade for 5 minutes and place a protective stop 1/8th below the low of the first 5 minute candlestick. Sell the stock immediately if it breaks this protective stop.

    Step 9 - Monitor the stock as it continues to rally upward. Look for areas of support (either minor price support or base price support) on the 15 minute chart, and re-adjust your protective stop price to 1/8th under these levels of support. This will protect your profits, and/or minimize your losses.


    Step 10 - Monitor the stock as it climbs upward, and stay in as long as the protective stop is not violated. After the stock has achieved 1 point profit or greater, look for signs of weakness. A bearish candlestick on the 15 minute chart will serve as a good indicator for a reversal point. After the price reaches an area of resistance and weakens, sell half of your position. This may occur on the same day as entry, or on the following day, depending on the strength of the stock. Maintain the latest protective stop price for the remaining half of your position.

    Step 11 - Allow the stock to continue it's rally. After the stock has rallied further, again look for an area of resistance where the stock begins to weaken and reverse. This could be a DOJI candlestick, or any other reversal candlestick pattern on the 15 min. chart. Sell the remainder of the position for profit.

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    3 Soldiers Candlestick Play Instructions


    Step 1 - Look for 3 WHITE SOLDIERS against Minor Price Resistance, and/or a declining Major Moving Average (10 MA, 20 MA, or 50 MA). Ideally you want to find a series of 3 green candlesticks; however, 2 green candlesticks can also work well.


    Step 2 - Pull up a 15 min. chart of the stock.

    Step 3 - Monitor the stock's trading during the last 30 minutes before the close, and enter only if the stock is closing weak near it's low price of the day. You will reduce the risk of the by entering only if the range of the day (high price minus low play price) is narrow. This way, when you set your protective stop at the day's high, you will only take a small loss if the stock should reverse.


    Step 4 - Observe the daily chart after the market has closed. The stock has now formed a BEARISH HARAMI on the daily chart, but you were able to spot the setup on the previous day and enter before the rest of the herd! On the next day, observe where the stock opens. If the stock opens relatively near to the opening price (say within 5/8th), place the initial protective stop 1/8th above the high of the previous day's candlestick. Exit the stock immediately if the stock breaks above this price. If the stock gaps down, proceed to Step 6. If the stock gaps up, proceed to Step 8.

    Step 5 - Monitor the stock as it continues to decline downward. Look for areas of resistance (either minor price resistance or base price resistance) on the 15 minute chart, and re-adjust your protective stop price to 1/8th above these levels of resistance. This will protect your profits, and/or minimize your losses if the stock should turn against you.


    Step 6 - If the stock closes weak on the previous day, there is a good chance that the play will be spotted by other traders (note that it has now formed a BEARISH HARAMI on the daily chart), and result in a morning price gap downward. If the stock gaps down by over 5/8 point, cover half of the position immediately after the open to lock in your profit. Place a protective stop 1/8th above the high of the first 15 min. candlestick for the remainder of your position.

    Step 7 - Monitor the stock as it continues to decline downward. Look for areas of resistance (either minor price resistance or base resistance) on the 15 minute chart, and re-adjust your protective stop price to above these levels of resistance. This will protect your profits, and/or minimize your losses.


    Step 8 - It is also possible for the stock to gap up on the following day due to overall market strength. If the stock gaps up and opens 5/8th higher than the previous day's close, DO NOT PANIC AND COVER RIGHT AWAY. In most cases, the stock will sell off after a gap up, and the high price of the day will occur in the first 5 minutes of trading. Let the stock trade for 5 minutes and place a protective stop 1/8th above the high of the first 5 minute candlestick. Cover the stock immediately if it breaks this protective stop.

    Step 9 - Monitor the stock as it continues to decline downward. Look for areas of resistance (either minor price resistance or base price resistance) on the 15 minute chart, and re-adjust your protective stop price to 1/8th above these levels of resistance. This will protect your profits, and/or minimize your losses.


    Step 10 - Monitor the stock as it declines downward, and stay in as long as the protective stop is not violated. After the stock has achieved 1 point profit or greater, look for signs of strength. A bullish candlestick on the 15 minute chart will serve as a good indicator for a reversal point. After the price reaches an area of support and strength, cover half of your position. This may occur on the same day as entry, or on the following day, depending on the weakness of the stock. Maintain the latest protective stop price for the remaining half of your position.
    Step 11 - Allow the stock to continue it's decline. After the stock has declined further, again look for an area of support where the stock begins to strengthen and reverse. This could be a DOJI candlestick, or any other reversal candlestick pattern on the 15 min. chart. Cover the remainder of the position for profit.

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    Long Red Candlestick Play Instructions


    Step 1 - Look for a LONG RED CANDLESTICK resting on MINOR PRICE SUPPORT and also a rising MAJOR MOVING AVERAGE (10 MA, 20 MA or 50 MA).


    Step 2 - Pull up a 5 minute chart of the stock.

    Step 3 - Note the opening price of the stock. If the stock gaps up or down more than 5/8th, DO NOT enter the trade. If the stock opens within 5/8th of the previous day's close, proceed to Step 4.

    Step 4 - Wait for the stock to trade for 5 minutes. After 5 minutes, note the high of the first 5 minute candlestick.

    Step 5 - Enter the stock if it trades 1/8th above the high of the first 5 minute candlestick. If the stock does not trade 1/8th higher than the high of the first 5 minute candlestick, DO NOT enter the trade.


    Step 6 - Pull up a 15 minute chart of the stock.

    Step 7 - After entering the stock, place an initial protective stop 1/8th below the low price of the day.

    Step 8 - Monitor the stock during the next 15 min. candlestick.

    Step 9 - Adjust the protective stop to 1/8th below the low price of the previous 15 min. candlestick. Stay in the trade as long as the stock trades above this price.

    Step 10 - Monitor the stock during the next 15 min. candlestick.

    Step 11 - Adjust the protective stop to 1/8th below the low price of the previous 15 min candlestick. Stay in the trade as long as the stock trades above this price.

    Step 12 - Continue to monitor the stock during each new 15 min. candlestick, and adjust your protective stop to 1/8th below each previous 15 min. candlestick's low.

    Step 13 - Exit the stock for profit when it finally trades 1/8th below the low price of a previous 15 min. candlestick.

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    Long Green Candlestick Play Instructions


    Step 1 - Look for a LONG GREEN CANDLESTICK against MINOR PRICE RESISTANCE and also against a declining MAJOR MOVING AVERAGE (10 MA, 20 MA or 50 MA).


    Step 2 - Pull up a 5 minute chart of the stock.

    Step 3 - Note the opening price of the stock. If the stock gaps up or down more than 5/8th, DO NOT enter the trade. If the stock opens within 5/8th of the previous day's close, proceed to Step 4.

    Step 4 - Wait for the stock to trade for 5 minutes. After 5 minutes, note the low of the first 5 minute candlestick.

    Step 5 - Sell short the stock if it trades 1/8th below the low of the first 5 minute candlestick. If the stock does not trade lower than the low of the first 5 minute candlestick, DO NOT enter the trade.


    Step 6 - Pull up a 15 minute chart of the stock.

    Step 7 - After shorting the stock, place an initial protective stop 1/8th above the high price of the day.

    Step 8 - Monitor the stock during the next 15 min. candlestick.

    Step 9 - Adjust the protective stop to 1/8th above the high price of the previous 15 min. candlestick. Stay in the trade as long as the stock trades below this price.

    Step 10 - Monitor the stock during the next 15 min. candlestick.

    Step 11 - Adjust the protective stop to 1/8th above the high price of the previous 15 min candlestick. Stay in the trade as long as the stock trades below this price.

    Step 12 - Continue to monitor the stock during each new 15 min. candlestick, and adjust your protective stop to 1/8th above each previous 15 min. candlestick's high.

    Step 13 - Cover the stock for profit when it finally trades 1/8 above the high price of a previous 15 min. candlestick.

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    Bullish Thrusting Line Candlestick Play Instructions


    Step 1 - Look for a BULLISH THRUSTING LINE resting on MINOR PRICE SUPPORT, and/or a rising Major Moving Average (10 MA, 20 MA, or 50 MA) on the daily chart.


    Step 2 - Pull up a 15 min. chart of the stock.

    Step 3 - Note the high price of the previous day's daily THRUSTING LINE candlestick. Your entry point is 1/8th above this price.

    Step 4 - On the following day, allow the stock to trade for 5 minutes before entering. Enter the stock only if it breaks above the entry criteria (1/8th above previous day's high) and only after it has traded for 5 minutes. If the stock does not break above the entry point, do not enter.


    Step 5 - Observe the previous day's candlesticks on a 15 min chart. Find an internal line of support that is formed on the 15 min. chart. This will usually be an intra-day area where the stock moves down to and then rallies multiple times during the day. Place the initial protective stop 1/8 below the area of intraday support. Exit the stock for a small loss immediately if the stock breaks below this price.

    Step 6 - Monitor the stock as it continues to rally upward. Look for areas of support (either minor price support or base price support) on the 15 minute chart, and re-adjust your protective stop price upward as the stock continues to rally. This will protect your profits, and/or minimize your losses if the stock should turn against you.


    Step 7 - Monitor the stock on a 15 min. charts as it climbs upward, and stay in as long as the protective stop is not violated. Allow the stock to achieve 1 point or greater profit, and then look for signs of weakness. A reversal candlestick pattern on the 15 minute chart will serve as a good indicator for a reversal point. After the price reaches an area of resistance and weakens, sell half of your position. This may occur on the same day as entry, or on the following day, depending on the strength of the stock. Maintain the latest protective stop price for the remaining half of your position.

    Step 8 - Allow stock to continue it's rally. After the stock has rallied further, again look for an area of resistance where the stock begins to weaken and reverse. This could be a DOJI candlestick, or any other reversal candlestick pattern on the 15 min. chart. Sell the remainder of the position for profit.

  8. #8
    seahawks90
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    Quote Originally Posted by fxmaster81 View Post
    Bullish Thrusting Line Candlestick Play Instructions


    Step 1 - Look for a BULLISH THRUSTING LINE resting on MINOR PRICE SUPPORT, and/or a rising Major Moving Average (10 MA, 20 MA, or 50 MA) on the daily chart.


    Step 2 - Pull up a 15 min. chart of the stock.

    Step 3 - Note the high price of the previous day's daily THRUSTING LINE candlestick. Your entry point is 1/8th above this price.

    Step 4 - On the following day, allow the stock to trade for 5 minutes before entering. Enter the stock only if it breaks above the entry criteria (1/8th above previous day's high) and only after it has traded for 5 minutes. If the stock does not break above the entry point, do not enter.


    Step 5 - Observe the previous day's candlesticks on a 15 min chart. Find an internal line of support that is formed on the 15 min. chart. This will usually be an intra-day area where the stock moves down to and then rallies multiple times during the day. Place the initial protective stop 1/8 below the area of intraday support. Exit the stock for a small loss immediately if the stock breaks below this price.

    Step 6 - Monitor the stock as it continues to rally upward. Look for areas of support (either minor price support or base price support) on the 15 minute chart, and re-adjust your protective stop price upward as the stock continues to rally. This will protect your profits, and/or minimize your losses if the stock should turn against you.


    Step 7 - Monitor the stock on a 15 min. charts as it climbs upward, and stay in as long as the protective stop is not violated. Allow the stock to achieve 1 point or greater profit, and then look for signs of weakness. A reversal candlestick pattern on the 15 minute chart will serve as a good indicator for a reversal point. After the price reaches an area of resistance and weakens, sell half of your position. This may occur on the same day as entry, or on the following day, depending on the strength of the stock. Maintain the latest protective stop price for the remaining half of your position.

    Step 8 - Allow stock to continue it's rally. After the stock has rallied further, again look for an area of resistance where the stock begins to weaken and reverse. This could be a DOJI candlestick, or any other reversal candlestick pattern on the 15 min. chart. Sell the remainder of the position for profit.
    I must say that all the points are really very helpful for all the traders and i must say that all traders have to read these kind of posts which are really very helpful.

  9. #9
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    Candlestick formations and also the chart patterns formed with these candlesticks are a great way to speculate the possible price action. We have certain distinguishing formations like the pinbars, shooting stars, hammers where we can draw the conclusions.

  10. #10
    seahawks90
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    I must say that most of the trader always use candle stick chart because this chart is easy to understand for most of the traders and this chart is the most common chart in the field of forex trading.

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