Trading with Candle patterns as stop points!
Posted on August 18, 2009 at 20:36 in Uncategorized by Pierre Charlebois2 Comments »

I am often asked where support or resistance lies. Here’s a way of targeting those areas to facilitate choosing a stop-loss level.

On the 4 hour chart below you will see where a candle pierced the Bollinger band but failed to close above it and it also left a wick that was longer than the body. This presents the perfect opportunity to go short against the high of that wick. The other pattern that provides a great opportunity is the Tweezer.

So when I think a turn is due I use this method to enter my trades and use the extreme of the pattern as my stop. There are times this fails, however the percentage is better that 50%.

This set-up happened just a few days ago on the GBP/USD.

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More candle trading… USD Index
Posted on April 7, 2009 at 7:55 in Uncategorized by Pierre CharleboisNo Comments »

Yesterday I wrote about how the current candles on a chart can potentially show sentiment in the market.

Technical trading is not a perfect science however the majority of the time engulfing candles are followed by continuation as evidenced in the last 12 hours or so on the USD Index. Of course this translates to the Dollar pairs for high probability trades.

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Trading Candles – Identifying good entry and exit points
Posted on March 30, 2009 at 13:26 in Uncategorized by Pierre CharleboisNo Comments »

I think it important to begin with the basics on Candles. So here is a quick review.

Candles are in a way a miniature chart within themselves. The wicks (or tails are they are sometime called) represent the high and low of the period and the body shows open and close levels. The color represents if the price was rising or falling.

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