Candlestick Trading

[Max99]

This is my first post here. I’m a fulltime stock trader and I started trading forex at the beginning of 2008. My methods for daytrading stocks won’t work with forex. I tried a few strategies using moving averages or indicators but I got mixed results. So four weeks ago I decided to really simplify my trading. I dropped all indicators and use only Bollinger Bands and candlestick patterns. I use the 30 and 60 minute charts and look for just a few simple candle patterns.

Various doji’s, Evening/morning stars
3 inside up/down
3 outside up/down
3 white soldiers/3 black crows
Dark cloud cover/piercing line

So far so good. I know it’s only been four weeks but I have 56 trades and 82%% win rate. I see so many people using complex strategies and I was wondering if anyone was doing something similar to me or had other simple systems. I’ve been trading fulltime for over 10 years and one thing I see too much of is people making trading more complicated than it needs to be, especially from new traders.

Max

[Yozhik]

Hi Max,

I'm brand new to trading, but intend to get "serious" about it.
The one thing I have been blown away by is the plethora of systems, theories and "Holy Grails" being touted ... most of them contradictory.

Like you, I'm from the University of Keep It Simple.

Would LOVE to have more info about a simple system, if you have the time to give more details.

Cheers,

Yoz

[pfgroup]

Max,
I agree with you and would like to know how you've been doing since your first post with the method you just described. I think your spot on to minimize the use of indicators and place more emphasis on the candles themselves. How have you fared for the past few weeks?

Thanks,
pfgroup

[harold_hsu]

Hi Max,

Yes, I couldn't agree more with you. Many new traders mistakenly think that the more indicators they use, the better.

Candlestick analysis is one of my favourite entry and exit criteria, and I'm glad that you're able to trade with it well!

[goose]

Hello Max99,

Would you elaborate as to why your daytrading techniques for trading stocks are not appropriate for trading forex. Thanks.