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Attachments: X-Rated IBs & OBs
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X-Rated IBs & OBs

  • #21
  • Dec 10, 2007 1:19pm Dec 10, 2007 1:19pm
Quoting billbss
Define a confirmation bar.
Thanks
his rules say "a fully developed bull or bear candle after the inside bar". I take this to mean a completed bull or bear candle that breaks above or below the inside bar. Now what if this confirmation bar is an outside bar again? Would in this case the direction of the candle define trading bias? Some clarification is indeed needed...

Ohka
  • #22
  • Dec 10, 2007 1:21pm Dec 10, 2007 1:21pm
Quoting billbss
Define a confirmation bar.
Thanks

This is the candle that comes after the Inside Bar or Outside Bar. If we are looking to go long, then the confirmation bar has to be a bull candle (ie green). We look to make an entry on the next candle provided it moves 5 pips. If its an outside bar, then the new bar becomes our reversal signal. So we need to look for another confirmation bar.

Remember, after the IB/OB, you can wait for upto 2 candles to form before entering.

Thanks.
  • #23
  • Dec 10, 2007 1:38pm Dec 10, 2007 1:38pm
Quoting mazdaz
This is the candle that comes after the Inside Bar or Outside Bar. If we are looking to go long, then the confirmation bar has to be a bull candle (ie green). We look to make an entry on the next candle provided it moves 5 pips. If its an outside bar, then the new bar becomes our reversal signal. So we need to look for another confirmation bar.

Remember, after the IB/OB, you can wait for upto 2 candles to form before entering.

Thanks.
On a long, does the bar after the confirmation bar have to move 5 pips above the confirmation bar?Does it have to move above the confirmation bar at all?
  • #24
  • Dec 10, 2007 1:46pm Dec 10, 2007 1:46pm
Quoting billbss
On a long, does the bar after the confirmation bar have to move 5 pips above the confirmation bar?Does it have to move above the confirmation bar at all?
Yes. It has to move 5 pips above. Otherwise, use it as the second confirmation bar and see if it makes a 5 pip move. If it still doesn't then there is no entry.
  • #25
  • Dec 10, 2007 2:53pm Dec 10, 2007 2:53pm
Quoting mazdaz
Okay more examples.

Trade made last Thursday!
http://img137.imageshack.us/img137/7...een4qg0.th.jpg

Trade made last Wednesday!
http://img524.imageshack.us/img524/5...een5ei0.th.jpg
In your Wednesday example, my chart shows a distinct downward slope of the ADX line during to formation of the confirmation bar.
Your chart is not clear enough to make it out.
  • #26
  • Dec 10, 2007 3:15pm Dec 10, 2007 3:15pm
Quoting billbss
In your Wednesday example, my chart shows a distinct downward slope of the ADX line during to formation of the confirmation bar.
Your chart is not clear enough to make it out.
Remember, we are entering the market at the start of a trend. So a smoothing of the ADX curve, or a slight upward movement is more than enough provided all the other rules are met to indicate the new trend formation. The reason why you don't see a distinct upward slope is because the trend was weak for a considerably long period (ie: consolidation during the Tokyo session).

Thanks
  • #27
  • Dec 10, 2007 3:24pm Dec 10, 2007 3:24pm
Quoting mazdaz
Remember, we are entering the market at the start of a trend. So a smoothing of the ADX curve, or a slight upward movement is more than enough provided all the other rules are met to indicate the new trend formation. The reason why you don't see a distinct upward slope is because the trend was weak for a considerably long period (ie: consolidation during the Tokyo session).

Thanks
I don't see any upward slope at all. I see a clear downward slope.
Is that an acceptable entrance?
  • #28
  • Dec 10, 2007 3:28pm Dec 10, 2007 3:28pm
Quoting billbss
I don't see any upward slope at all. I see a clear downward slope.
Is that an acceptable entrance?
If you don't mind, can you post what you see on your screen?
  • #29
  • Dec 10, 2007 4:05pm Dec 10, 2007 4:05pm
Quoting mazdaz
If you don't mind, can you post what you see on your screen?

The first arrow points to the ADX at the time of the IB.

The second arrow points to the ADX at the time of the confirmation bar.

There is no sign of any upward slope in the ADX.
Attached Image (click to enlarge)
Click to Enlarge Name: ibadx.gif Size: 33 KB
  • #30
  • Dec 10, 2007 4:34pm Dec 10, 2007 4:34pm
Quoting billbss
The first arrow points to the ADX at the time of the IB.

The second arrow points to the ADX at the time of the confirmation bar.

There is no sign of any upward slope in the ADX.
I see some upward slope on the Entry candle, and that is what I see on my charts. I have only posted here trades that I entered using my system, so I am sure I saw a small upward movement before placing the trade.

Having said that, I would still enter the trade if I saw a downward slope with a small gradient during the formation of the confirmation candle, but corrected upwards during the entry candle.
  • #31
  • Dec 10, 2007 4:46pm Dec 10, 2007 4:46pm
Quoting mazdaz
I see some upward slope on the Entry candle, and that is what I see on my charts. I have only posted here trades that I entered using my system, so I am sure I saw a small upward movement before placing the trade.

Having said that, I would still enter the trade if I saw a downward slope with a small gradient during the formation of the confirmation candle, but corrected upwards during the entry candle.
Do you think it might be a good idea to edit your rules in your first post? Your rules call for an upward slope during the formation of the confirmation candle, not the entrance candle.
Going strictly by what you posted in post#1, there would have been no trade in the example we are discussing.
  • #32
  • Dec 10, 2007 5:19pm Dec 10, 2007 5:19pm
mazdaz

Have you tried on shorter timeframe other than the 1HR timeframe?
  • #33
  • Dec 10, 2007 5:21pm Dec 10, 2007 5:21pm
Quoting billbss
Do you think it might be a good idea to edit your rules in your first post? Your rules call for an upward slope during the formation of the confirmation candle, not the entrance candle.
Going strictly by what you posted in post#1, there would have been no trade in the example we are discussing.
Ahh!! My bad. I chose the wrong words to explain that part.

1ST POST HAS BEEN UPDATED
  • #34
  • Dec 10, 2007 5:31pm Dec 10, 2007 5:31pm
Quoting mazdaz
Ahh!! My bad. I chose the wrong words to explain that part.

1ST POST HAS BEEN UPDATED


That looks good to me.
Thanks
  • #35
  • Dec 10, 2007 5:39pm Dec 10, 2007 5:39pm
Quoting et_phonehome_2
mazdaz

Have you tried on shorter timeframe other than the 1HR timeframe?
Yes, this system was primarily developed for GBP/USD on 15 min chart.

If you choose to trade a lower timeframe, then your T/P and S/L should be adjusted accordingly (My S/L was 10 pips and T/P at 20 pips).

Also, you wouldn't necessarily look for a +/-DI cross.

For long, you would look for the IB/OB, after which you would expect a BULL confirmation candle. The candle after that should move 2 pips higher than the high of the confirmation candle in order to make an entry. You also want to see +DI above -DI line. Vice-versa for a short signal. For both signals, you want the ADX above 20.

The above method is what I used when I traded the 15 mins timeframe. I must say, the 1hour timeframe has a higher WIN/LOSS ratio.

I hope this helps.
  • #36
  • Edited 10:03am Dec 11, 2007 9:49am | Edited 10:03am
Those who are following this system should have spotted a nice entry today.

OB formed at 14:00GMT. Confirmation bar was a bear candle and red line crossing above green line.


ENTRY MADE @ 2.0454

Since I am awake, I am going to ride this one out without setting a fixed T/P.

GL to ALL!!
  • #37
  • Dec 11, 2007 9:55am Dec 11, 2007 9:55am
Might close my position now as it is approaching the psychological number.
  • #38
  • Dec 11, 2007 9:58am Dec 11, 2007 9:58am
Placed the S/L at the T/P mark.

S/L @ 2.0410
  • #39
  • Dec 11, 2007 10:06am Dec 11, 2007 10:06am
Quoting mazdaz
Those who are following this system should have spotted a nice entry today.

OB formed at 14:00GMT. Confirmation bar was a bear candle and red line crossing above green line.


ENTRY MADE @ 2.0454

Since I am awake, I am going to ride this one out without setting a fixed T/P.

GL to ALL!!
The "IB" formed at the end of the 1300 GMT bar.
Mine didn't qualify because the high was one tick higher than the previous bar.
  • #40
  • Dec 11, 2007 10:15am Dec 11, 2007 10:15am
Today's Trade!! Just closed 5 mins ago.

http://img143.imageshack.us/img143/1...een1uh3.th.jpg

In the future, I will try make a post just before I enter a trade. Please don't take it as a trade signal.
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