Hi Rick,
I think I've got a handle on identifying Engulfing and Pinbar Targetcandles but for some of the finer points which I am hoping you can answer:
CHART TIMEFRAME (TF)
1. When you are watching/scanning chartsto identify a Target Candle, I understand that you can use any of the TFs from M5to H4. However, you seem to be trading mostly M5 charts lately and just usingthe H1 to check the direction of the trend and to identify Supply & DemandZones. Is this the best way to go about scanning for Target Candles ?
TREND LINE
2. When trading on the M5 chart, is theH1 the best TF to look at for establishing the trend line ? And the period toconsider is back to the previous Structural High for a SELL trade setup orStructural Low (SL) in the case of a BUY trade setup, yeah ?
3. Am I correct in thinking that youuse the candle Lows to trace the trend on a Buy Setup and the candle Highs for aSell Setup ?
SUPPLY
4. AreSupply Zones defined as the point at which earlier price action has beenreversed by either resistance or support and retested multiple times ?
5. When you say 'don't trade intoresistance,' what exactly does that mean ?
EXIT POINT
6. Is it better to stick with the pre-determinedTake Profit (TP) point as equal to the range of the Target Candle when you openedthe trade even if there have been very few reversals in the price actionmovement ?
7. Or should you just let these tradesrun until there is a significant enough reversal in the price action, and ifso, what would you consider to be a significant enough reversal to close thetrade ?
PLANNING TRADES
8. I've heard you suggest that thebeginning and end of the week are not ideal times to trade because there a lotof false moves made at those times. Does that mean that the last candle for theweek should not be used or seen as a Target Candle ?
9. How can we make trade plans or seesetups over the weekend for the coming week then, is it simply a case of waitand see what happens ?
Thanks heaps if you can clear theseup for me. Depending on what the answer is to some of these questions I shouldhave a few setups ideas I can post. And I've attached a copy of what I'mcalling 'The Book of Rick,' with a bunch of the posts that have been explainingthe Target Candles strategy here. I hope that's ok with you.
Trading Target Candles.pdf
