Flying buddha pattern

Hello all FF members,

This thread is started to discuss the Flying Buddha price action chart pattern, as first mentioned in this thread - Building an equity millipede

The Flying Buddha is only a small part of that trading method, therefore it is best to have another thread where shorter term or swing traders can share research and post charts.

I have not seen any hard and fast rules for trading the Flying Buddha, but have picked these general tips up -
- possibly works best on 4 Hour time frame
- entry and stop loss up to individuals, refer example, better to keep a tight SL, you can always re-enter on the way down or below the low of further candle(s)
- certainly best after a extended run up to a resistance point
- a level of Fibonacci retracement is good
- if it is a pullback to the overall larger time frame trend
- wait for a close below the FB candle, or at least certain number og pips
- perhaps more chance of success when a PIN BAR is present

Here is a chart I put together on the latest data available, and this looks like failing, so let's see what happens from here.

So, if you are interested, and are able, please post your charts, comments, suggestions, criticism, and winning trades

Regards, John

Hello Snowman

I see that you are using TROs FB dashboard.

I have to agree with You, the best FB are the PIN bars;
I belive that FB are good sign of an upcoming reveresal. but a lot of practice is needed to identify the most probable set ups.

Regards.

Carlos

What ma's are you using? The FB's were an eye opener for me. I noticed in the above chart you said there was no follow up on two of the FB's, although price did tag the ma. I believe there's an edge. This one is cherry picked, although I've been studying the idea of looking for them heading in my direction and being my color, stop a pip or two above high, entry within 1/2 the body, 75% out at ema, exit remainder on opposite extreme.

http://s1.postimage.org/N2Kxr-48c2a7dc.gif

I already post this on another FB thread... but I think is worth mentioning...

"OK, heres a crazy idea on how to use FB:
Woodie`s CCI`s may help. Use FB as an early warning and the cci to confirm."
http://i56.tinypic.com/33y3t6w.gif

Can you detail the CCI confirmation, so I can see what you see?

Yes; Woodie`s CCi is mainly 2 cci`s ; one a 6 period another a 14 period,


On woodie cci style, trend is defined by the 14 period, the 6 period is an early warning; however, if we have a FB warning a possible short trade, but the 6 period cci is above the zero line ("0" level on the cc1) is to early to trade, but when the line approaches the zero line and is about to cross it, chance are that we have a reasonable opportunity to go short . Same process for going long. oposite, of course. The 14 period only confirms the bias.

Also, the 6 period cci helps in closing trades when it shows that the bias is changing direction.

Im still testing this, but so far it filter quite well. some trade may be missing, but rather be safe than sorry.
Since Woodie`s method is based on momentum, for now im only testing this combo in H1.

I haven't looked at woodie's cci in a long time. Thanks. Picking tops in a down move. Looking for break of opposite to exit.

http://s3.postimage.org/Mp1i-3a48ac88.gif

THats a 200 sma?

200ema per pipEASY's method.

Guys.. I am just going to post once here in this thread. There is no need for any filter if you follow the rules described in the thread. The 'edge' is in the aggressive stacking in lower timeframes that follow after a FB is formed. Let's not jump into changing a proven strategy without completely understanding the specific rules involved... just my 2 cents.

Snowman - For the benefit of others, please re-read Graeme's posts in order to prevent confusion among your readers who come to this thread. There's a lot involved than just eye-balling a FB and taking trades blindly. You WILL lose your hard earned money as a successful FB occurs only 40% of the time !

Respectfully,

Vee

Agree, but for me, part of understanding something is experimenting. Ill practice this entries until I consider that I can do them profitable in my live account.
I have to mention, that, in my regular live trading, I use fibo as my only indicator to trade. (after a particular set of circunstances). indicators are mainly just a mathemathical deviation of price...But some can be very useful.

Regards

Carlos

Looks like snowman has lost interest. Maybe he'll be back.

Since the FB has something about 40% success rate ( or so Ive been told, dont know where that number came from) I decided to use the FB in 2 ways:

1 for a reversal of current trend, using a confirmation ( using the close of the next bar as a decision)
Another for a continuation of trend; If the FB failed, I use the HH or LL created after the FB as a short term support or resitance and wait to be broken.



Today I made 12 trades and the results are postive, Yes I know that 1 day is not too much, but positive enough to continue testing.

Just my 2 cents.

Regards

Carlos