It was quote. It is not my system or my words. I am not using quotation (quotational feature of the post) just because of SEO. But it was written something as
I am just trying to integrate external content with the forum ... because there are a lot of indicators and EA ... but how to use them? how to trade? what to do? it should be explained anyway.
About candlestick chart ... this is very very big theory about ...
Do you know that Ichimoku guy created his indicator for candlestick chart only (it was few centures ago)? yes, that is true ... patterns ... candelstick patterns ... and more and more ... so - it looks like a science ... real science ...
I want to open the thread about it but it is big theory so I am afraid about sorry ...
I remember that's an old heiken ashi based trading system, kuskus osentogg. It used Bbandstop, heiken ashi smoothed, a modified fisher oscillator and pivot fibo. But for mt5 we may use AFL Winner or iTrend as filter trade.
Forum on trading, automated trading systems and testing trading strategies
Heiken Ashi Trading System
newdigital, 2013.08.17 16:23
There are many Heiken Ashi indicators (and EA) on MT5 CodeBase, for example :
Trading signals module based on Heiken_Ashi_Smoothed indicator
Heiken Ashi Smoothed
An Example of a Trading System Based on a Heiken-Ashi Indicator
newdigital, 2014.01.15 20:40
With the appearance of candlestick chart
in the U.S., more than two decades ago, there was a revolution in the
understanding of how the forces of bulls and bears work on the Western
markets. Candlesticks became a popular trading instrument, and traders
began working with them in order to ease the reading of the charts. But
the interpretation of candlesticks differ from one another.
One of these methods, which changes the
traditional candlestick chart, and facilitates its perception, is called
the Heikin Ashi technology.
There are all sorts of ways to look at trending prices but my experience is that none of the moving average systems make significant money without being traded by a human trader.
A good trending system can be made better by entering a trade at whatever signal that is a trend (false or not) and enter with a minimum position. As the trade develops every period or two (whatever the period is you are working), you add another small position, preferably a little smaller than the first, wait for the trend to continue for a few more periods and add again.
This all depends on what you use for trend indicators (EMA, Laguerre Moving average, SAR, whatever....). You can combine various slope indicators, strength, etc. As long as your winning trades are more profit than the losing trades losses, you are a profitable trader.
The amount of your starting position should just be a small percent of the total position you are comfortable with. If you could trade 0.1 positions then start with 0.03 and let the indicator show you a profitable trend and then add 0.02, wait and see the proof of the indicator being right and then add to a position. When you see a sign of trouble, get out. You can always reenter a trend if you are out early and you can even take partial profits if you are not sure.
This strategy is an adaption of the old Chinese saying: "Never test the water with both feet."