RandyCandles - Information - page 44
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Vegas is still using the original RandleCandy- bars (candles). Ask Him...
I'm late for Church..Today's sermon is about patience and virtue.
Join us at Pastor Radatats House of Wax
Is anyone still using the actual RandyCandle bars this thread was opened about - eg: chilli peppers /zorro etc ? If so could they explain how ? Many thanks
Is anyone still using the actual RandyCandle bars this thread was opened about - eg: chilli peppers /zorro etc ? If so could they explain how ? Many thanks
Hello All,
I didn't find the posts from Golden Equity at FF until early July while reading the Steinitz threads. Unfortunately, by that time GE had been pretty much horse whipped out of that thread and apparently, the entire forum. What a shame...
I like some of the additions various folks have made to the wonderful golden nuggets GE left us at the FF thread before his departure. ITGUY's combination of Spud's MTF Stoch system is particularly good, as is his PDF file outline. Actually, I couldn't seem to get my mind around Randy's method until I read ITGUY's summation...thank you for that!
I'm still following the Steinitz HAS method until I am satisfied that it either WILL or WILL NOT be profitable. The jury's still out for me on that and I continue to actively help in the forward demo testing process of that method. However, I am also very interested in manual trading. In particular, those which use price action as their main operator for entries and exits...AND those methods which tend to be trend followers. I have most recently studied and demo traded the Cornflower method and Spudfyre's MTF Stochs/Breakout systems. Jacko's method was interesting as well because of his focus on trading with the longer term trends.
I mention those other methods here, not to detract from RandyCandles, but because I think the RandyCandles method is very closely related to all of them. In particular, the Cornflower method which looks for price action to pull back briefly counter to the main trend as an entry point back IN the trend. While I admire the other methods I've just mentioned, I have to say that RandyCandles are the easiest for me to spot consistent appropriate entries and exits. More importantly, the RC method easily identifies where NOT to trade (SMA Line Arguments). This aspect is very valuable to help filter out head fakes.
I do not profess to be an expert on RandyCandles, but I wanted to share my thoughts in this thread on some of the RC formations which Leeb has asked about. Randy left us some excellent information...enough to put together a trading method and go with it. However, he was rudely interrupted before he could fill in some of the holes in our understanding about such things as "Hanging Zorros", "Chili Peppers", "Alert Candles", and "Stretch Candles". Even so, I think we can do some extrapolation and come up with reasonable descriptions for all of them, at least well enough to suit our goals for trading this method. I'm going to give you MY interpretation, right or wrong, of these candle patterns.
Some of you may think trying to understand these candle patterns is irrelevant or a waste of time and that's fine. However, I personally think Randy had a certain "flair" and was very creative in his approach to trading. I find it interesting to try and "see" what Randy was looking at in his candle formations. Judging by his trading statement, he obviously knew what he was doing, so I think it would be profitable to at least TRY to understand his candle patterns and how he derived their colorful names.
Randy created something I've never seen anyone else do before. Not saying it hasn't BEEN done, I just haven't seen it. To create RandyCandles, he took a regular bar chart with green/bull and black/bear bars and then overlaid it with standard Heiken Ashi white/bull and red/bear candles. The end result produces some very highly recognizable and repeating bar/HA candle combinations which he uses as alert, entry, and reversal/exit points.
Randy gave some colorful names to his very colorful new candle/bar patterns.
First, there's the ZORRO Alert!
The Legend of Zorro is most famous for his trademark big "Z" which was embarrassingly (for the recipient!) carved with his rapier into the clothing of all his would-be attackers! I believe this corresponds to the "Z" pattern formed by the black bear bars in Randy's setup, with black being the color of Zorro's traditional garb. On the bear price bar, the open flag always faces left, then the bar stem goes downward, and finally the closing flag faces right...a perfect "Z"! I'm probably stating the obvious here, but no one has mentioned it thus far, so I thought I'd point it out.
I perceive the "HANGING Zorro" to be the first "Zorro(s)" at the top of a downward price movement...having a short-bodied red HA candle with black wicks above and below the HA body....sort of like Zorro is hanging from a cliff or precipice! Randy said in his posts that a Hanging Zorro was one of the better alert candles. He also says alerts can appear in any HA/bar color combination, either green/white, green/red, black/white, or black/red.
Next is the CHILI PEPPER Alert!
A Chili Pepper is formed with a green/bull bar and a red HA candle body. Randy said Hanging Zorros and Chili Peppers (red and green) are the best alerts. However, IMHO, the red/green Chili Pepper would logically be inferior to a WHITE Chili Pepper formation, a green bar with a white HA body. Again, Randy is not here to confirm/deny my assertion, but either way, we have very good visual alerts with these!
The Stretch Candles I believe are fairly self explanatory and are seen with a long HA body, in the color matching the immediate price direction, with a corresponding long bar stem which extends out of the HA body only (or at least MOSTLY) in the direction of the current price movement. To me, it indicates a very powerful price move, but Randy says that he likes to EXIT on these. I think that is because of the high potential for quick retracements when these candles occur. Others may have a different opinion about these, but that's mine.
Well, that's my take on RandyCandle formations. I'm anxious for the markets to open so I can begin looking for these excellent entries. My thanks to everyone who has kept RandyCandles going!
How I plan to use them...
Thanks both of you for the info, SummitFX I didn't consider it a silly question but an important part of the original RC method, thanks for your great contribs to this thread
Leeb,
Randy was fairly specific about the alert candles, more so than I originally had thought. The most important thing I gleaned from reading his posts about alert candles is that you do NOT ENTER on the alert candles. When you see one, you MUST watch for the NEXT candle to completely form...if not, you greatly risk getting a head fake. If you look on any chart with an RC template/setup, you will see many Zorros and Chili Peppers, especially during SMA Line Argument times. Also, you can get mixed color Zorros and Chili Peppers and until that next candle forms, there's NO way to know where price is going. I believe that a Zorro with a red HA body and black bar with stems protruding relatively equal distances outside the HA body are the best potential SHORT signals. Likewise, I believe a Chili Pepper with a white HA body and a green bar with stems protruding relatively equal distances outside the HA body are the best potential LONG signals....but ONLY IF they are followed by the correct ENTRY candle which Randy said MUST have the proper corresponding bar color, green for LONG and black for SHORT.
I will be looking for entries where price is moving either away from or back to the 25 SMA. I see profitable trades either way. However, if price is moving back towards the line, then you need to be prepared to exit the trade if prices bounces off the line instead of crossing it.
ITGUY notably remarks that he had very good success by only taking trades AFTER price has crossed the 25 SMA following an alert candle. So, there's where trader discretion comes back into play...
The two biggest DO NOT ENTER rules for me are:
#1. NEVER enter a trade during SMA Line Arguments.
#2. NEVER enter a trade on the ALERT CANDLE...wait for the next candle to completely form. If it's in the right direction and meets your other parameters, THEN pull the trigger.
One final comment and then I'll shut up. SMA Line Arguments....I see them good for two things. First, they are a clear signal of when NOT to be trading. Second, they are almost like an alert...to the ALERT candle. During SMA Line Argument, price is consolidating. This is a prime time to be WATCHING for an alert candle and a break out of consolidation.
That's how I'm going to trade this method. If it doesn't work for me, then I'll follow Radatat's advice and change it till it does!
Thanks pipskateer for the screenshots and explainations much appreciated
Thanks for putting everything into perspective for us. Based on your 2 demo models, I hope you have more success here.
Wow
Now that's a stretch RandyCandy.....120 pips.......I wonder if it will retrace the gap
Zorro
Zorro alert......lets see if it goes up.....however need to be careful as the over all trend appears to be down
Zorro alert......lets see if it goes up.....however need to be careful as the over all trend appears to be down
Or did you mean "Chili Pepper" alert since you went LONG? You're a brave soul to trade this on Sunday evening.
Hey, do you guys ever use the trading room? I'm logging on there, so maybe we can exchange ideas/thoughts in real time?
Chili peper
Your right....it's a chili peper......just so long as it goes up...other wise I might call it something else....
EDIT: 10 pips out of that one....
Or did you mean "Chili Pepper" alert since you went LONG? You're a brave soul to trade this on Sunday evening.
Or did you mean "Chili Pepper" alert since you went LONG? You're a brave soul to trade this on Sunday evening.
The custom candle trading room is still there although we have been debating on how/when to use it. I'll meet ya there. BTW, excellent post on RC earlier.