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Another inside bar thread

  • #1
  • First Post: Jan 4, 2018 4:36am Jan 4, 2018 4:36am
What are your views about trading inside bars?
Anyway to avoid false signal?
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As with any system or strategy, it is not 100%
  • #2
  • Jan 4, 2018 5:47am Jan 4, 2018 5:47am
new IB
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As with any system or strategy, it is not 100%
  • #3
  • Jan 4, 2018 6:03am Jan 4, 2018 6:03am
Hit both side
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As with any system or strategy, it is not 100%
  • #4
  • Jan 4, 2018 6:05am Jan 4, 2018 6:05am
Could you please share your IB Indicator? TY
  • #5
  • Edited 7:07am Jan 4, 2018 6:49am | Edited 7:07am
Quoting alicia19
What are your views about trading inside bars? Anyway to avoid false signal? {image}
Hi alicia19,
I extensively tested inside bars over many markets and several time frames. The overall result in terms of accuracy of prediction is that it is about random. However, that is not where the value of such a method lies.

Inside bars, almost by definition, are relatively small bars, so an entry at one end of the bar and a stop loss at the other end means you limit yourself to only small losses when it reverses on you. If it goes your way the return:risk profile can be far better than 1:1 (because it is a small bar) and this is where the net profitability can come from.

Essentially, it is all about cutting losers short and letting winners run, just using inside bars as the vehicle for doing this. The inside bar in and of itself has no predictive value at all.
  • #6
  • Jan 4, 2018 6:59am Jan 4, 2018 6:59am
Quoting marcmarc
{quote} Hi alicia19, I extensively tested inside bars over many markets and several time frames. The overall result in terms of accuracy of prediction is that it is about random. However, that is not where the value of such a method lies. Inside bars, almost by definition, are relatively small bars, so an entry at one end of the bar and a stop loss at the other end means you limit yourself to only small losses when it reverses on you. If it goes your way the return:risk profile can be far better than 1:1 (because it is small bar) and this is where...
++++++++++++++++++++++++++

Couldn't agree more. BAS (Big A$$ Stops) cost in the long run, in my experience.
  • #7
  • Jan 4, 2018 7:05am Jan 4, 2018 7:05am
Dont look at the inside bar in isolation. Look at the context where it is in relation to recent price action.
Understanding where to place stops is more important than having a small stop & losing.
It never gets easier, you just get better
  • #8
  • Jan 4, 2018 7:39am Jan 4, 2018 7:39am
Essentially, it is all about cutting losers short and letting winners run, just using inside bars as the vehicle for doing this. The inside bar in and of itself has no predictive value at all.[/quote]
No indicator or system cn predict the next move .
My view is to use weekly time frames to avoid too many false signals and to know when to take profits when the price moves put you in profits.
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As with any system or strategy, it is not 100%
  • #9
  • Jan 4, 2018 8:08am Jan 4, 2018 8:08am
On the chart above wouldn't the second green candle stop out the buy with a 85 pip loss?
  • #10
  • Jan 4, 2018 8:23am Jan 4, 2018 8:23am
Sell signal valid for my bitcoin weekly chart.
Where to take profits if the move make any profits?
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As with any system or strategy, it is not 100%
  • #11
  • Jan 4, 2018 8:55am Jan 4, 2018 8:55am
Quoting Shabs19
Dont look at the inside bar in isolation. Look at the context where it is in relation to recent price action. Understanding where to place stops is more important than having a small stop & losing.
Problem is it takes years of knowledge and experience to learn "where to place stops".
  • #12
  • Jan 4, 2018 9:40am Jan 4, 2018 9:40am
Quoting skyway
{quote} Problem is it takes years of knowledge and experience to learn "where to place stops".
Unfortunately there is no short cut to experience. However knowledge is a different matter. Some may never get it.
It never gets easier, you just get better
  • #13
  • Edited 11:15am Jan 4, 2018 10:53am | Edited 11:15am
Quoting marcmarc
Hi alicia19, I extensively tested inside bars over many markets and several time frames......
Great post IMO, this is the whole idea behind Peter Crowns' DIBS method (here; and Peter's posts starting here in the 'No free lunch....' thread). Low risk entry with potentially high RR trades, as explained further by pro trader Joel Rensink here. The high and low of the IB provide some kind of implied S/R, when viewed on a shorter TF, providing default levels for both breakout entry and SL.

I followed DIBS for a while and, attempting to interpret Peter's posts further, FWIW provided some ideas for enhancing the potential profitability of IB based entries here here here and here. And finally the 'aha moment' here (although I'd like to think that I've refined these ideas somewhat in the last 6 years!)

Quoting alicia19
What are your views about trading inside bars? Anyway to avoid false signal?
I hope the above links give you some ideas to work with.

The goal in DIBS is not to avoid false signals but to allow you low risk entries, some of which will catch long trends and become huge RR positions. But of course there are a lot of other ways of trading IBs. They're part of Nial Fuller's fakey setups, for example (just read the free info on that page, I'm not recommending that you buy his education). And you can find plenty of ideas by Googling something like "how to trade inside bar pattern forex" e.g. here.
  • #14
  • Edited 5:26am Jan 5, 2018 2:32am | Edited 5:26am
false-breaks?
Buy if the price trade above the inside bar's low from below.
short sellers believe the price will decline when price is below the inside bar's low.short sellers rush to cover positions,when the believe that it was a false-breaks sending the price higher when buying back to cover.
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As with any system or strategy, it is not 100%
  • #15
  • Jan 5, 2018 5:44am Jan 5, 2018 5:44am
[quote=hanover;10641290] {quote}I hope the above links give you some ideas to work with.
Thanks.
The links brings a lot of good info.
Example :
false-breaks?
sell short if the price trade below the inside bar's high from above
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As with any system or strategy, it is not 100%
  • #16
  • Jan 5, 2018 5:47am Jan 5, 2018 5:47am
false-breaks? #1
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As with any system or strategy, it is not 100%
  • #17
  • Jan 5, 2018 6:00am Jan 5, 2018 6:00am
Always look to the left, are you buying at Resistance and Selling at Support ?
It never gets easier, you just get better
  • #18
  • Edited 8:29am Jan 5, 2018 8:05am | Edited 8:29am
Quoting Shabs19
Always look to the left, are you buying at Resistance and Selling at Support ?
sell short if the price trade below the inside bar's high from above. this is to try to indentify the false buy BO.
As with any system or strategy, it is not 100%
  • #19
  • Edited 8:47am Jan 5, 2018 8:31am | Edited 8:47am
Look left price resistance 29th August & 8th September. Market will always remember these levels. Not saying it can't break through.
Drop down a timeframe and you will see more. New High with lower momentum, a false break to attract buyers at resistance.
It never gets easier, you just get better
  • #20
  • Jan 5, 2018 9:55am Jan 5, 2018 9:55am
Quoting Shabs19
Look left price resistance 29th August & 8th September. Market will always remember these levels. Not saying it can't break through. Drop down a timeframe and you will see more. New High with lower momentum, a false break to attract buyers at resistance.
inside bar focus in the current time frame.The game is to focus in BO and to to learn when the BO start to fail and get out and reverse.
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As with any system or strategy, it is not 100%
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