Simplest charts?

[NihabaAshi]

Quote from Pekelo:

Very good, it even has a white background! How do you know when to exit??

http://www.elitetrader.com/vb/attachment.php?s=&postid=1324625

Under the theme of K.I.S.S

You can use any simple exit methodology that fits your personality or correlates (not in conflict) with the entry signal.

Examples of simple exit method that fits well with Japanese Candlestick patterns:

in reference to the bullish pattern on the above chart

* Swing Point that formed before the entry signal

* Candlestick Pattern that formed before the entry signal or after entry signal

* Traditional S/R Level (math or trendlines)

* Japanese Candlestick S/R Zone

* WRB (wide range body or expansion interval) that formed before entry or WRB that formed after entry

* Price reaction (volatility spike) via a Key Economic Report release

You can do the same for ADDing to a profitable position.

For example, take a look at the chart again for Jan 12th Friday (today).

The interval that closed at 10:50am est is also another Bullish Engulfing pattern.

Actually, its the exact same type (sub-group) of Bullish Engulfing patterns I like to trade while the other types of Bullish Engulfing patterns I wouldn't risk one penny on them.

With that said, I don't believe Japanese Candlesticks can be used consistently profitably all by themselves without any other inputs from the market.

Therefore, they are simple confirmation tools to what you should already know is occurring in the price action (bullish, bearish or neutral).

Mark
(a.k.a. NihabaAshi) Japanese Candlestick term

 

[Wallace]

simplest chart I know of

Buy blue, close red, Sell red, close blue

scale can be changed

 

[Charly]

Quote from Wallace:

simplest chart I know of

Buy blue, close red, Sell red, close blue

scale can be changed

~~~~~~~~~~~~~~~~~~~~~~~~

Could you give a few more details?

 

[Lorenzo]

Quote from Charly:

~~~~~~~~~~~~~~~~~~~~~~~~

Could you give a few more details?

The problem with the Renko Chart is the last price, that is always outside the range showed in the current bar....

You need to be very careful using this kind of chart....and setting the Box size

Lorenzo

 

[Wallace]

Charly, Lorenzo identified the Renko chart.

Lorenzo, do you trade with Renko charts ?


I've never traded off Renko but it appears to be a 'Buy and Hold' method where scaling the chart --
setting the Box size is based or could be based on a Stoploss amount.

I just googled: 'trading with renko charts' and found these for instance:
http://www.marketscreen.com/help/tips/default.asp?hideHF=&num=15
and
http://www.investopedia.com/articles/trading/06/marketnoise.asp

Renko charts are Price based only -- no time.

The charts are via MetaStock of the Daily eurusd set at 0.0050, the one below illustrates applying
fibos and Standard Error Channels.

 

[Charly]

allace

Valuable information, indeed - however
it confirms that Renko is a tricky tool.

For trends the Heiki method looks quite
interesting to me although I have not been able yet to test it - need a software containing that indicator.

Building indicators from this type of chart
could be more rewarding since it removes
some noise - of particular interest for
intraday traders IMO.
You might want to have a look at this
link: http://educofin.com/

In case your software contains HEIKI I would appreciate a few intraday charts - say from 1 - 5 minutes.

Charly

 

[moise]

Tried hundreds of "so called systems" ; designed over 100 systems .......and it boils down to this ;

KISS for me = go long if close of the week is above its 30 EMA
go short or sell if it goes below its 30 EMA

Price is everything (close price only), the rest is pure noise.

No stops ; your stop is a close below its 30 EMA

Try it, test it,

Moise

 

[Pekelo]

Hehe, I posted the same strategy a few monts back called Even simpler profitable method:

http://elitetrader.com/vb/showthread.php?s=&threadid=77547&highlight=even+simpler

The only difference was I used the 12 SMA...

 

[moise]

The Solid Green area represents your account equity over time. Dark Green represents the portion of your capital still in cash, and Light Green represents the portion of your capital exposed to one or more stock positions.

The Blue Line represents your account equity had you invested an equal portion of your capital in each of the stocks at the beginning of the period. This is the "Buy and Hold" equity line

 

[VSTscalper]

This is a ER2....50 tick chart....on Friday....with some explanations. The Crossing of Trendlines are important to me....although I don't draw them on the chart....this is just to show where they would be. The Range Box is Very Important in my trading.

I could go into more detail on this chart....but not now.

VSTscalper