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Attachments: The Small Hours Simplified!
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The Small Hours Simplified!

Yes that is what I meant! The 20 and 40 SMA's are used to determine potential breakout direction. If the close of the bar closes above the 20 OR the 40 (can be both) then a buy stop should be placed at the highest high of the last 5 bars (counting the setup bar) plus 3 pips plus spread, stop loss is at the lowest low of the last 5 bars minus 3 pips, minus spread.

For sell stops the setup bar must have closed below the 20 or 40 SMA (can be both). Entries the same as the buy stop only reversed.

Rule #1 = determines small hours
Rule #2 = confirms convergance (tightening of price)
Rule #3 = determines potential direction

Quoting ido370
the EA can place buy/sell stop/limit orders. if you look in the code, you will see i had already placed two sendorder commands for a buystop and a sellstop, but need to adjust tp, and sl first, so right now i commented it out). thats what you mean right?
You are using SMA20 and SM40 also right? Which one should be sufficient to place the stop orders? or does it always have to be above SMA40 and then place buy stop?
Quoting Colostarr
Yes that is what I meant! The 20 and 40 SMA's are used to determine potential breakout direction. If the close of the bar closes above the 20 OR the 40 (can be both) then a buy stop should be placed at the highest high of the last 5 bars (counting the setup bar) plus 3 pips plus spread, stop loss is at the lowest low of the last 5 bars minus 3 pips, minus spread.

For sell stops the setup bar must have closed below the 20 or 40 SMA (can be both). Entries the same as the buy stop only reversed.

Rule #1 = determines small hours
Rule #2 = confirms...
can you post your results with chart examples ?
Quoting Colostarr
To clarify this: I usually begin with the current bar and count back 5 candles (if the bar previous does not fit rule #1). But the rules can't be applied until the current bar closes. If you want to count the previously closed bar, you can. The rules must be met though. Sorry for the confusion!
I still don't understand.

Here are two charts.

The first one requires 6 bars (including the setup bar).

The second one requires 5.


Which is correct?
Attached Image(s) (click to enlarge)
Click to Enlarge Name: setup1.jpg Size: 176 KB
Click to Enlarge Name: setup2.jpg Size: 175 KB
interesting trading system that you have here,although i don't know how to set the atr. Mine by default can't reach values higher than 0.0026 at 20 period and below 0.0012.
I need a little help with that.
Also, because i'm a rookie i do not know how to load an ea.
My plan is to post signals as I get them for this upcoming week. Sort of a way to show a trade in action. Stay tuned!

Quoting whatfx
can you post your results with chart examples ?
Billbss,
they are both correct actually! In the bottom chart, your 5th candle, when it closes is your setup bar.

Count back 5 candles from there (pretend that 6th bar doesn't show yet). Are the rules met? From a glance I say yes. Set your limit orders.

What happened? Price continued sideways for another 4 hours, and at the close of the 6th candle you have a new setup candle, run the rules again from that candle and adjust your limit orders accordingly.

Notice what happened after that 6th candle? Price broke north. Your first TP would have been hit almost immediately. It took about 8 more hours then your second TP was hit also.

Of course you follow the money management rule and move your stop to BE when TP#1 is hit, then move it to the LL3 of each subsequent higher low (in case price turns around). Either way your 2nd trade is at BE so you won't lose anything.

Does this clarify it a bit?

Quoting billbss
I still don't understand.

Here are two charts.

The first one requires 6 bars (including the setup bar).

The second one requires 5.


Which is correct?
Hi colostarr!

Thanks for your sharing of this great and kind trading systems!
I have a question, based on your long entry rule, the first rule was "The HH5-LL5 must be less than the ATRx1.5 as of the setup bar", as i make a review to short entry, the rule number one of short also stated that "The HH5-LL5 must be less than the ATRx1.5 as of the setup bar". Was this rule apply for both entry?

Thanks.
Quoting Colostarr
Billbss,
they are both correct actually! In the bottom chart, your 5th candle, when it closes is your setup bar.

Count back 5 candles from there (pretend that 6th bar doesn't show yet). Are the rules met? From a glance I say yes. Set your limit orders.

What happened? Price continued sideways for another 4 hours, and at the close of the 6th candle you have a new setup candle, run the rules again from that candle and adjust your limit orders accordingly.

Notice what happened after that 6th candle? Price broke north. Your first TP would have...

They can't both be right and follow the same set of rules. The first chart is a 6 bar formation and the second chart is a 5 bar formation.

Let me try one more time by asking it another way.

If you are looking at a completed pattern, including the setup bar, are you looking at a total of 5 candles or 6 candles?
You are only looking at 5 candles Billbss why do you insist on looking at 6 candles?

How can they both not be right? Before the 6th candle formed you had a buy signal according to the rules right?

Let me try one more time by explaining it another way: So price didn't move for another 4 hours, the 6th candle formed then closed. Now you have another setup bar, only NOW the 6th bar IS THE NEW 5TH BAR!
THERE IS NO 6TH BAR IN THE SETUP RULES


OR you can try this: Just leave your first signal alone as it is good for 3 more candles anyway.

Truly you are making this WAAAAAY more complicated than it should be!

Setup for an up swing:
1. Highest High of the last 5 bars minus the lowest low of the last 5 bars must be less than the ATR x 1.5

2. The high of the current bar (the CLOSED setup candle, NOT a 6th candle) must be less than the highest high of the last 5 bars.

3. The close of the setup bar must be greater than the 20 SMA or the 40 SMA (can be both).

That is IT! 3 very basic and very easy to understand rules.

If you have any more questions may I ask that you to please send me an IM? This way we do not clutter this thread with redundant, re-verbalized questions and answers? Deal?

Quoting billbss
They can't both be right and follow the same set of rules. The first chart is a 6 bar formation and the second chart is a 5 bar formation.

Let me try one more time by asking it another way.

If you are looking at a completed pattern, including the setup bar, are you looking at a total of 5 candles or 6 candles?
  • Post #50
  • Quote
  • Edited 11:17am Feb 12, 2011 11:10am | Edited 11:17am
It seems people are getting hung up on the setup bar. Imagine if you will, you are looking at your MT4 trade station. The current ACTIVE bar is your POTENTIAL SETUP bar, when it closes it is now the most recently closed bar or candle. For simplicity sake we will just call it the "Most recently closed candle"

Uptrend rules:
1. starting with the most recently closed candle: The Highest High of the last 5 candles minus the lowest low of the last 5 candles MUST be less than your ATR value x 1.5

2. The high of the most recently closed candle must be less than the highest high of the last 5 candles (counting most recently closed candle as #1)

3. The close of the most recently closed candle has to be greater that the 20 SMA or the 40 SMA (Can be both)


Down rules:
1. starting with the most recently closed candle: The Highest High of the last 5 candles minus the lowest low of the last 5 candles MUST be less than your ATR value x 1.5

2. The low of the most recently closed candle must be higher than the lowest low of the last 5 candles (counting most recently closed candle as #1)

3. The close of the most recently closed candle has to be less than the 20 SMA or the 40 SMA (Can be both)

stick to these rules and you can't miss!
Quoting smjones
Hi Bill,

Including the setup bar it is 5 bars. I went back and recreated his USDCHF chart and the LL5 is the setup bar low and the HH5 is 5 bars back (including) the setup bar.

I finally figured it out by looking at the chart.

There wasn't any other way to get a clear answer.
Thank you for that!

Quoting smjones
Hi Bill,

Including the setup bar it is 5 bars. I went back and recreated his USDCHF chart and the LL5 is the setup bar low and the HH5 is 5 bars back (including) the setup bar.
5th grade stuff isn't it? Glad you finally figured it out!

Quoting billbss
I finally figured it out by looking at the chart.

There wasn't any other way to get a clear answer.
Quoting Colostarr
5th grade stuff isn't it? Glad you finally figured it out!

It should be 5th grade stuff.

Getting a straight answer from you is like pulling elephant teeth.
Did that make you feel better? Now that we have the small stuff out of the way, and as the creator of this thread, can I ask that you refrain from cluttering this thread with sarcasm and stick to the method so that people can learn? I already asked you once nicely, I will report you to a moderator if you persist. Thank you
Quoting billbss
It should be 5th grade stuff.

Getting a clear answer from you is like pulling elephant teeth.
Quoting Colostarr
Did that make you feel better? Now that we have the small stuff out of the way, and as the creator of this thread, can I ask that you refrain from cluttering this thread with sarcasm and stick to the method so that people can learn? I already asked you once nicely, I will report you to a moderator if you persist. Thank you

You botched the instructions in two threads so far.

I'm simply replying to your sarcasm.

Judging from your performance so far, I doubt that you can make a coherent, understandable report to a moderator or to anyone else.

Give it a try.
How is it that you were the ONLY one that couldn't grasp a simple kindergarten equation?

Your mad cause you can't prove this method wrong! Botched instruction? How about can't follow a simple set of rules!

"Duh? Is it the 5th bar the 6th bar? Which one is it? I'm so confused, which bar do I look at? There are 3 whole rules, which one do I start with? I'd rather pull elephant teeth than figure this out, I are not a smart man can U help me?"

Hows that for concise? You stand no chance bartering with me BillBss...you can't even figure out which freaking candle to look at! When do you graduate from 5th grade anyway?

Go away fly!

Quoting billbss
You botched the instructions in two threads so far.

I'm simply replying to your sarcasm.

Judging from your performance so far, I doubt that you can make a coherent, understandable report to a moderator or to anyone else.

Give it a try.
you can just drop the ATR...its just a simple breakout method..
using a range of around 50-60 pips range..
StopLoss is for none belivers... Trust the Gurus..
I would like to apologize to everyone viewing this thread that had to read the childish banter between Billbss and myself. Apparently neither of us can refrain from this behavior. I will do my very best to stick to the method and ignore any future disturbances from this person.

Bottom line: this method is very simple to follow and is very effective. If you have any questions and would like to discuss at length, please feel free to IM me.

I wanted to share this method because after YEARS of chasing a holy grail and making every mistake that a trader can make, I stumbled across a few methods that have catapulted me to success with the forex market.

I simply wanted to share just a piece of this knowledge with those of you out there that have struggled as I did in the past. I never intended to get "side ways" with anyone. My apologies to those of you trying to increase your trading knowedge with this confusing exchange between Voldemort and myself. Won't happen again.

Remember this: All you need is for price to come to you! Stop chasing it!

Good luck to you all!
Quoting Colostarr
How is it that you were the ONLY one that couldn't grasp a simple kindergarten equation?

Your mad cause you can't prove this method wrong! Botched instruction? How about can't follow a simple set of rules!

"Duh? Is it the 5th bar the 6th bar? Which one is it? I'm so confused, which bar do I look at? There are 3 whole rules, which one do I start with? I'd rather pull elephant teeth than figure this out, I are not a smart man can U help me?"

Hows that for concise? You stand no chance bartering with me BillBss...you can't even figure out...
No, you don't have sense enough to explain a simple concept.

Look at this:

Quote
Look at the attachment. In this chart of the USDCHF 4H. Count back 5 bars from the setup bar. The highest high of these 5 candles is .9580, the lowest low of these 5 candles is .9522
.9580 -.9522 = 58 pips
Counting back 5 bars from the setup bar gives a total of 6 bars- the setup bar plus the 5 before it.

When I asked you to clarify, it was more incoherent wind.

When I asked if it was a 5 bar pattern or a six bar pattern (which you had implied), you should have simply said "5 bar". That would have been the end of it.


If there is any more smart ass talk from you I'll reply in kind.

Otherwise I am done here.
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