The following is the USDJPY trade I entered using the alligator and candlesticks technique. There are no strong support or trend lines below the candlesticks. The chart reatraced back enough and a very nice bearish engulfing candlesticks are formed. I entered the sell trade with a stop loss of 15 pips above the candlesticks. Put the take profit at the bottom where there is a support line. I am waiting for the trade to reach the take profit. I will post the results of the trade in the comments section wheter the trade is lost or won. Check it out in a few hours.

USDJPY alligator and candlesticks trade:

USDJPY sell trade entered and waiting to reach the take profit

The following is the GBPUSD trade I took today using alligator and candlesticks technique and earned around 60 pips. As shown in the picture below I entered the trade before closing the bearish candlestick line. The hourly candlestick lines close at the end of each hour. I entered the sell trade just before the close of the bar which is around 1 minute before the close of the hour. So I could enter the trade in the middle of the bearish candlestick bar. After that minute a full bearish engulfing candlesticks are formed.

Before entering the trade I checked if there are any strong support lines below the candlesticks. There are no strong support lines or trend lines. Because some of my previous trades I took earlier using this technique were failed becuase there were some strong support or resistance lines formed already. You can check one of my posts at http://www.forexbees.com/forex-blogs/some-trades-i-lost. This post explains how I lost the trades eventhough there were very good bearish or bullish engulfing candlesticks formed becuase of the strong support or resistance lines. I put a stop loss of 15 pips above the candlesticks and I went to work. After that I came in the evening and observed the trade. There were some retracements in the middle. When I come back from work it is the asian trading time zone. The trade reached the support line. From my previous trades I observed that in asian trading time zones the trends won’t continue generally. Most of the times it will be parallel of the trends will reverse as the markets reach the overbought or oversold regions. So I closed the trade at this point. I got a profit of around 60 pips. Check the following pictures.

GBPUSD Hourly Chart:

GBPUSD trade won. Closed the trade as it reached the support line and moreover it is asian trading zone.

Profit:

gbpusd trade

The following are some of the alligator and candlestick trades that I took today but I lost all of them. The trades I entered are based on alligator and candlesticks technique that I explained at

http://www.forexbees.com/forex-blogs/alligator-and-candlesticks-forex-techniques

From this I learned some new things where this technique can not be used.I am going to update the above post also with these notifications. Lets see the trades.

1) USDCHF currency trade – Short Trade – Lost

The following is the USDCHF hourly currency chart. The alligators are wide engough and a bearish engulfing candlesticks are formed in the downtrend. There was enough retracement also. So I entered a short trade at the point shown in the picture with a stop loss of 15 pips above the candlesticks but lost the trade. The I checked out why I lost the trade. I zoomed out the chart. Then came to know that there is a strong support line formed at the bottom. If I observed this strong support line I would not have entered the trade based on this technique. But I learned one point here that I should observe for any strong support or resistance lines before entering the trades using this alligator and candlesticks technique.

1) USDCHF alligator candlesticks trade lost:

Did not observe the strong support line at the bottom and lost the trade

2) EURUSD Currency Trade – Long Trade – Lost

The following is another I lost completely because of the same reasons as above.

EURUSD trade lost because of the strong resistance line at the top

Lots traded: 1 lot

Loss: $427

The following is the USDCAD trade entered with a short trade. A bearish engulfing candlestick is formed in a downtrend so entered the trade. But if you observe the graph there is a strong support formed at the bottom. This has more effect then the alligator candlestick.

Observation:
Before entering the trade check if there is any strong resitance or support that has already formed. If there is any strong resistance or support that has already formed don’t enter the trade.

USDCAD alligator candlestick trade lost:

usdcad alligator candlesticks trade lost

Lots traded: 1 lot

Loss: $426

The following is the EURUSD trade entered with a long trade. A bullish engufing candlestick is formed in an uptrend so entered the trade. But if you observe the graph there is a strong resistance formed at the top. There is already a bearish engulfing candlesticks formed exactly at the resistance line. This has more effect then the alligator candlestick.

Observation:
Before entering the trade check if there is any strong resitance that has already formed. If there is any strong resistance that has already formed don’t enter the trade.

EURUSD alligator and candlesticks trade lost:

eurusd alligator candlesticks trade lost

Lots traded: 1 lot

Loss: $304

The following is the USDCHF trade entered with a short trade. A bearish engufing candlestick is formed in a downtrend so entered the trade. But if you observe the graph there is a strong resistance formed at the bottom. There is already a bullish engulfing candlesticks formed exactly at the resistance line. This has more effect then the alligator candlestick.

Observation: Before entering the trade check if there is any strong resitance that has already formed. If there is any strong resistance that has already formed don’t enter the trade.

USDCHF alligator candlesticks trade lost:

usdchf alligator candlesticks trade lost

The below is a USDJPY trade. It formed a engulfing bullish engulfing candlestick. But this is formed at 12 in the afternoon in CA time which is 3 PM in EST time. After which the Asian market starts. So this trade did not work. Moreover the engulfing candlesticks formed right after the crossing of the three moving averages of the alligator.

Observation: Follow this technique when there is enough distance from the crossover.

USDJPY alligator and candlestick long trade lost:

usdjpy alligator candlesticks trade lost

Lots Traded:1 Lot

Proft: $322/ 1 Lot

The following is a GBPUSD trade pircture. As you in the picture there is a bearish engulfing candlesticks formed at the top of the bollinger bands. Immediately entered the trade with stop loass 15 pips above the candlesticks and take profit at the bottom of the bollinger bands. Got a profit of $322.

GBPUSD Trade won:

gbpusd trade won

Below is the EURCAD chart. As you see there is a trend line at the bottom of the chart. The first entry is when the CCI is moving above the -100 line but did not take it as I was in the office. The next entry is when the moving average leaves the histogram bar and I entered here but because of fear I closed it after 2 or 3 hours and lost with a loss of $99. Should have left the trade with a stop loss below the trend line and close it when it touches the bollinger bands upper portion. This is purely because of fear, I lost the trade.

EURCAD trade lost because of fear:

eurcad trade lost because of fear

Lost: $409 / 1 Lot

Lots Traded: 1 Lot

The following is a picture of EURAUD hourly graph. At the point mentioned alligator is showing up and a bullish engulfing candlestick is formed. So entered into a long trade. This was entered in the morning at 8 in california time which is 11 AM in the EST time. The next candlestick itself is a down candlestick where closed the trade and lost the trade.

Mistake: Did not observe the larger graph. If you observe the larger graph, the trend is still downwards.

Observation: Use this technique only when it is formed far enough, which is an indication of a trend. Don’t use it in the begining of a trend as mostly we will lose. Check the following pictures.

EURAUD entered and closed trade”

euraud sell trade

EURAUD Bigger Picture:

euraud bigger picture