RandyCandles - Information - page 46
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This is a chili peper according to Randy....
What you're saying contradicts what Randy's stated in his FF posts. I copied all of them from FF and his text says that alert candles have stems ABOVE AND BELOW the HA body. The one you show only has a lower stem. See Randy's post at FF:
Forex Factory - View Single Post - HAS Indicator - Another Method for Entering Midway
I've attached my archive of Randy's posts for your review. If you have any references that I do not, please share them. Thanks!
thanks it guy i will try to join the room
If you go back a few pages you will see my trade rules. I am sorry to say I don't even use alert candles!! I may have to start a new thread!! Can't even tell a hanging zorro from a chili pepper. I think the indicators are far more accurate anyways IMHO.
Hi radatats. I'm watching u'r indikatores a few days. On a back seem be nice, very nice, but now i figure out, that 4Hr CCI bar indicatores is changed after i restart platform. So please, can u explane how to look at, or use without or with refreshing? Or u will do it on u'r nearefutur thread? Sorry, but i didnt finde it about in back.
From what I understand from Goldenequity Randy Candles is that the alert candles are just a heads up for a possible entry. So does that mean if I get an alert on the 5M chart that I should actually enter in on the next 5 minute candle and also wait for its completion which would actually mean the 15M candle?
Read through this thread. You will find that Rad states he does not use this to trade on the 5min. He has taken it off of his last template. Again, read the thread and you will find a lot of good stuff here.
From what I understand from Goldenequity Randy Candles is that the alert candles are just a heads up for a possible entry. So does that mean if I get an alert on the 5M chart that I should actually enter in on the next 5 minute candle and also wait for its completion which would actually mean the 15M candle?
I think first of all, RC's will work on any TF, but don't know which one is "best" yet. I personally like to watch M15, but to each his own. But to answer your question according to how I understand Randy's text, you are correct. The alert candle is the "pay attention" candle. If you are on M5 and an alert candle closed, you would then wait until the next candle formed and closed before entry. That's a 10 min time frame...5 min alert, 5 min entry candle close. If your alert candle happened to open at the beginning of a new M15 candle, then you wouldn't see that on M15 because the new M15 candle wouldn't be closed yet for another 5 min.
Does that help?
OK, I am going to post a synopsis of my trade rules.
1. Trade off 5 min charts.
Entries
1. 1st signal is when 15 min (green) stochastic peaks and crosses.
2. Price must be above or below yellow MA matching trade direction.
3. Wait for either the first Osc bar to change color to match trade direction or SMAC-D signal line cross.
4. Trade should only be in direction of Osc. Short if Osc below zero, long if above.
5. To trade against Osc direction, drop to 1 min chart and start at step 1 again.
Alternate Entries
1. During trend as long as price and yellow MA remains below blue MA, enter when Blue stoch makes a counter peak.
(refer to picture)
2. Any time price fails to penetrate and REMAIN above/below blue line and Osc fails to penetrate and remain above/below zero line.
Exit
1. When price crosses yellow MA
AND
2. Green stoch peaks and crosses
AND
3. Osc peaks and bars change color or SMAC-D signal line crosses.
Divergence is a good indicator of possible trend reversal for exit.Thanks for these rules Radatats.
Today I tried it in a demo account. I've attached a screenshot, and you can see where I entered short on Eur/Jpy M5, (at the crosshair at 162.86), but unfortunately the trade didn't work out for me.
Just wondering if that was down to me placing an incorrect trade, or was it just the nature of the market at the time? Any help would be appreciated, thanks.
Randy Candles...original or extra crispy?
In reading this entire thread, which I did before I ever posted here, I have watched things drift a fair bit away from the original rules Randy laid out in his FF posts. There's absolutely nothing with that whatsoever and I'm a big fan of innovative thinking. However, there is a point where too many alterations to the original recipe results in you ending up with a different meal altogether.
The folks who are actively trading this method have, to one degree or another, have modified and personalized things to their liking, to which I say BRAVO! However, for those folks who were originally drawn to the basic RandyCandles method as originally delivered, I would like to see if we can't restate the ORIGINAL rules as closely as we can in order to have a baseline against which we can measure and evaluate new ideas and hopefully improve the main method. Reasonable enough?
I went back to Randy's original posts copied by ITGUY (and I have my own collection too) and so I'll try to condense the method into as little text as possible. If I omit or mis-state something, please correct me.
-------------------------------------------------------------------------
Using Randy's Zoom Template file:
THE ALERT CANDLE:
1. The appearance of an Alert Candle is your FILTER.
2. Correct alert candles simply have stems ABOVE AND BELOW the HA body; they are small to moderate in size.
3. They can be any color combination, however chili peppers and zorros are ideal.
4. The BEST alert candles will CROSS and close OVER the Pink SMA.
5. The alert candle is NOT the entry candle!!! DO NOT ENTER on an alert candle. If you enter on an alert candle, you have failed.
THE ENTRY CANDLE:
1. You must WATCH the entry candle develop to make your decision.
2. The Entry Candle must obviously have the right HA color for your direction.
3. It must have the correct stem color for your direction...wait till you get it!
4. The "preferred" entry candle should only have the stem going your way.(not an absolute rule however).
5. The BEST entry candles are birthed having ALREADY crossed the SMA Pink.
6. If the above scenario has happened and you are let's say at the top of a fan....you ALREADY have a 90% probability of putting in a correct entry of both timing and
direction....have some confidence!!!!
7. The SMA's are treated as dynamic points of support and resistance.
Dynamic means they move, as opposed to static like Camarilla, MurreyMath and Fibos. Support and Resistance means your trades can respect and bounce from them and at other times must "chew" through them.
This Price vs. SMA interaction occurs on both the 5M as well as the 15M charts. Pink is the weakest, Yellow the strongest. Learn by watching Price vs. the SMA's, both charts.
SMA Line Arguments:
An SMA Line Argument is when the price is consolidating.
The Pink and Yellow start merging and weaving together.
Usually the candles get smaller and color combinations are mixed.
Don't trade going into one...they can last for hours.
Overview:
You look for your alert candle followed by the entry candle moving away from the D line with the correct HA and stem color for your direction. You are looking for a bounce off the D line (SMA 25) or a successful cross of the D line. The candles will start respecting the SMA Pink. The best moves will ride above the Pink. EDIT: Again....DO NOT enter on the ALERT CANDLE...wait for the NEXT candle to form in your direction.
You now have a high probability entry signal generated right from the current price action.
Probability is all you can expect.
It is a discretionary trade method of entry and needs to be tempered with everything else you know about the market.
Are you against trend or with trend? (MTF HAS)
What time of day is it? London, NYC, Asian?
What has price been doing relative to your dynamic s/r's? Camarillas?
What is Price (green) vs. HAS doing?
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My Observations and Comments:
Randy says these candles will work on all time frames, but specifically mentions the M5 and M15 with regard to price action around the SMA's. Not sure if he traded those TF's exclusively or was only limiting his discussion to the Steinitz discussion. I would love to know because I see good signals appearing on the higher TF's as well...
He also seems to imply that trades should only be taken when price is moving away from the D-line, SMA 25. However, you will see several possible trades where price is moving BACK TO the D-line. In my initial observations and discussion with ITGUY, Radatats, and others this morning in the trading room, we dicussed the fact that perhaps the chances of a successful trade here might be related to the distance price had previously traveled away from the D-Line, meaning that the farther away price was from D-Line when a new counter alert signal and entry candle occurred, the more room the trade might have to become a success. There may also be a correlation between price travel away from D-Line and its subsequent ability to CROSS the D-Line on the return, but we need to look back on the charts to get a better idea about these things.
I have posted a link to my chart screen shot below and you will see that I have added bands around the SMA 25. These bands correspond to Fibo levels all the way out to the 200/-200 level on both sides. This was suggested by Radatats in this morning's trading session as a way to gauge how far price travels away from the SMA 25. Again, this is based on my assumption that the farther price moves away from the D-Line SMA 25, the better chance you'll have a winning trade when it returns to the D-Line, rather than waiting for it to get close enough to cross....just an experimental thing right now.
My approach to trading Randy Candles is going to be to stick as closely to the original recipe as possible at first. Now, that doesn't mean I will be trading with blinders on to other indicators and information, because Randy himself said this method was discretionary and that we need to trade it using everything else we already know about the market. For me, this means having a good birds-eye view of overall trends and other factors that affect the FX market. For the most part, that will mean using other resources to filter out bad trades, such as fundamental info. I prefer a top-down approach and like to know what the longer TF trends are and prefer to trade WITH those rather than against. It's always harder to swim upstream against a raging river.
For evaluating trends, I have found a tool that I believe is excellent. It is a very good chart space saver too as you will see. You will not believe all the information that is monitored and packed into this one indy. It monitors and rates the following:
Fast MA
Med MA
Slow MA
CCI
MACD
RSI
STOCH
BULLS
BEARS
ADX
FORCE
MOMENTUM
DeMARKER
WAE (Waddah Attar Explosion)
If that isn't incredible enough, it also combines the data from all those indicators across MTF's....from M1 up through D1. I'm trying to get the creator of this indy to include the upper TF's as well, but for now, it's the most complete MTF, Multi-Indicator I've ever seen. The user also has the ability to exclude any of those indicators above from the calculations if they desire OR to even assign a weighting factor to any or all of them as needed. There are several versions of this indy which will allow you to display as much or as little data as you like, either on the main chart or in a separate indicator window below. I've included a screenshot of my charts for RandyCandles which shows this indy in the upper left corner. I'll give you the link to the thread where this indy was released so you can get the version that suits you best.
Ferru Multi-Indic Thread:
https://www.mql5.com/en/forum/176969
Post with Latest Ferru Multi-Indic Versions:
https://www.mql5.com/en/forum/176969/page7
Here's a screenshot of my charts with the indicators I use for RandyCandles:
MY RC CHART (Note the Fibo bands around SMA 25 as explained above. Also, the Ferru Multi Indicator Trend box is just to the right of the Signal Bars indy...)
My RC setup template and indicators are here:
http://www.creations4christ.com/forex/rc_setup_pipskateer.zip
Well, that's enough rambling for now. I just wanted to maybe help those folks who may be reading this thread and feeling a bit lost in trying to figure out where the original RandyCandles method went. Its all still there in Randy's posts and in ITGUY's collection.
Well, its about time to hit the trading room, anybody gonna be there??
Cya!
Thanks for these rules Radatats.
Today I tried it in a demo account. I've attached a screenshot, and you can see where I entered short on Eur/Jpy M5, (at the crosshair at 162.86), but unfortunately the trade didn't work out for me.
Just wondering if that was down to me placing an incorrect trade, or was it just the nature of the market at the time? Any help would be appreciated, thanks.Hi Fx Geezer,
Just a few comments... I don't know if you were following the RandyCandles rules per se or Radatat's, but it looks to me like you were a bit late to the party for a short, according to RC rules. Second, you were also going against the already established day trend for this pair....see my chart.
Great work
Thanks Pipskateer,
I like mine the original. For me the more stuff on my charts the more I look like a deer in the head lights. Keep it Simple and Stupid is my biggest help.
This thread is looking great and with lots of folk contributing and adding to it. Keep it up everyone.
Vegas
In reading this entire thread,........................