FuLuShou
Private
- Messages
- 8
Hi everyone,
I started this journal as a tool to understand and apply correctly the theory I'm learning. I will post the trades I do with Dukas JForex platform and the analysis of each pair before the opening and after the closing enumerating the lessons learned, if any. For my trades I will not rely on news unless there are central bank intervention related and following Andrew Mitchem daily strenght and weaknesses.
Over the next analysis I will be using Steve Nison's Candle Charts trading method and four basic indicators. I'll try to analyze the trades as simple as possible since what I'm trying to do is lay a basic theory foundation and receive your comments and counsel about my trading decisions. My purpose here is receive views and opinions outside Nison's theory and check the validity of his claims since there are cases in which I found his theory is confusing and contradictory. I'll point out when I find one of those confusing points in his theory if I find them in my future analysis.
For users to have a grasp of what tools I'll be using on my charts here's a resume of what I've studied of his course contents (There's the advanced course which I'm currently studying and first want to incorporate the basic and see if I'm applying the theory right):
Why candles are a tool and not a trading system
Using real bodies to gauge force of current move
Spinning tops
Essentials of Doji
Basic Criteria
Market Implication
Using doji as a protective stop
How to help avoid buying on false breakouts
Avoiding a common misuse of the doji
Shadows
Why shadows must be part of your candle analysis
Using long lower shadows
Using long upper shadows
High Wave Candles
Basic Criteria
Market implication
Basic psychology behind the pattern
Starting to read the market’s message with single candle lines
Hammer Essentials
Construction
Basic criteria
Market implications
Basic psychology behind the pattern
Hammer and trend
As support
Dragonfly doji
Inverted Hammer Essentials
Shooting Star Essentials
Hanging Man Essentials
Box range trading- using candles to help predict direction of breakout
Single candle line essentials – bringing it all together
Bullish Engulfing Pattern Essentials
Basic psychology behind the pattern
Piercing Pattern Essentials
Bull Harami Essentials
Bearish Engulfing Pattern Essentials
Dark Cloud Cover Essentials
Bear Harami Essentials
Morning Star Essentials
Evening Star Essentials
Three Advancing White Soldiers
Rising and Falling Three Methods
Rising and Falling Windows
Definition
Construction
Using for maximum success
Common misuses of this signal
Breakaway gaps and windows
Fry pan bottom – definition, construction and uses
Dumpling Top – definition, construction and uses
How NOT to use candles!
How adding Western technicals improves trading success
Candles and trend lines
Sloping trend lines
Bull and bear channels
Horizontal trend lines
Bullish Change of Polarity
Bearish Change of Polarity
Crack and Snap as a bull signal
Falling Off the Roof as a bearish signal
Importance of looking at candles in context
Candle by candle example of East- West
Candles and Volume
Tall white candle and volume
Using Volume and candles to gauge shifting market psychology
Volume and engulfing patterns
Volume and windows
Volume and small real bodies and doji
Volume and crack and snap
Selling climaxes
Candles and open interest
Candles and Bollinger Bands
Candles and Oscillators - Introduction
Introduction to oscillators
Basics of how to use oscillators
Divergence
Candles and Stochastic
Candles and RSI
Candles and MACD
Candles and Dual Moving Average Oscillator
The Disparity Index
Definition
Construction
Using the disparity index to gauge if market is overextended
Record session highs and lows
Definition
Using to measure overbought and oversold levels
Candles and Retracements
Using 50% retracements
Using Fibonacci retracements
Candles and Moving Averages
Moving averages as support and resistance
When to use - and not use - moving averages
Candles and Price Patterns
Head and Shoulders
Inverted Head and Shoulders
Box range breakouts
Ascending and descending triangle
Swing targets
Bull and bear flags
Price targets and candle confirmation
East – West: Putting it all together
How candles and west called major market highs and lows
I started this journal as a tool to understand and apply correctly the theory I'm learning. I will post the trades I do with Dukas JForex platform and the analysis of each pair before the opening and after the closing enumerating the lessons learned, if any. For my trades I will not rely on news unless there are central bank intervention related and following Andrew Mitchem daily strenght and weaknesses.
Over the next analysis I will be using Steve Nison's Candle Charts trading method and four basic indicators. I'll try to analyze the trades as simple as possible since what I'm trying to do is lay a basic theory foundation and receive your comments and counsel about my trading decisions. My purpose here is receive views and opinions outside Nison's theory and check the validity of his claims since there are cases in which I found his theory is confusing and contradictory. I'll point out when I find one of those confusing points in his theory if I find them in my future analysis.
For users to have a grasp of what tools I'll be using on my charts here's a resume of what I've studied of his course contents (There's the advanced course which I'm currently studying and first want to incorporate the basic and see if I'm applying the theory right):
Why candles are a tool and not a trading system
Using real bodies to gauge force of current move
Spinning tops
Essentials of Doji
Basic Criteria
Market Implication
Using doji as a protective stop
How to help avoid buying on false breakouts
Avoiding a common misuse of the doji
Shadows
Why shadows must be part of your candle analysis
Using long lower shadows
Using long upper shadows
High Wave Candles
Basic Criteria
Market implication
Basic psychology behind the pattern
Starting to read the market’s message with single candle lines
Hammer Essentials
Construction
Basic criteria
Market implications
Basic psychology behind the pattern
Hammer and trend
As support
Dragonfly doji
Inverted Hammer Essentials
Shooting Star Essentials
Hanging Man Essentials
Box range trading- using candles to help predict direction of breakout
Single candle line essentials – bringing it all together
Bullish Engulfing Pattern Essentials
Basic psychology behind the pattern
Piercing Pattern Essentials
Bull Harami Essentials
Bearish Engulfing Pattern Essentials
Dark Cloud Cover Essentials
Bear Harami Essentials
Morning Star Essentials
Evening Star Essentials
Three Advancing White Soldiers
Rising and Falling Three Methods
Rising and Falling Windows
Definition
Construction
Using for maximum success
Common misuses of this signal
Breakaway gaps and windows
Fry pan bottom – definition, construction and uses
Dumpling Top – definition, construction and uses
How NOT to use candles!
How adding Western technicals improves trading success
Candles and trend lines
Sloping trend lines
Bull and bear channels
Horizontal trend lines
Bullish Change of Polarity
Bearish Change of Polarity
Crack and Snap as a bull signal
Falling Off the Roof as a bearish signal
Importance of looking at candles in context
Candle by candle example of East- West
Candles and Volume
Tall white candle and volume
Using Volume and candles to gauge shifting market psychology
Volume and engulfing patterns
Volume and windows
Volume and small real bodies and doji
Volume and crack and snap
Selling climaxes
Candles and open interest
Candles and Bollinger Bands
Candles and Oscillators - Introduction
Introduction to oscillators
Basics of how to use oscillators
Divergence
Candles and Stochastic
Candles and RSI
Candles and MACD
Candles and Dual Moving Average Oscillator
The Disparity Index
Definition
Construction
Using the disparity index to gauge if market is overextended
Record session highs and lows
Definition
Using to measure overbought and oversold levels
Candles and Retracements
Using 50% retracements
Using Fibonacci retracements
Candles and Moving Averages
Moving averages as support and resistance
When to use - and not use - moving averages
Candles and Price Patterns
Head and Shoulders
Inverted Head and Shoulders
Box range breakouts
Ascending and descending triangle
Swing targets
Bull and bear flags
Price targets and candle confirmation
East – West: Putting it all together
How candles and west called major market highs and lows