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  • #141
  • May 9, 2008 4:40am May 9, 2008 4:40am
Quoting soso
I have 1.9557
OK thanks. I see it on my other platform.
Indicators show the past. Price Action "Indicates" the future.
  • #142
  • May 9, 2008 4:53am May 9, 2008 4:53am
Hi all,

I have read through the thread a few times to try make sure I correctly understand DIBS. Unfortunately, I have probably missed out certain things because I am still not entirely clear of the method. Hence, I hope someone would be kind enough to advise. Thanks in advance!

I am not clear on following points:
(1) The method recommends to take 06:00GMT as start the trading day, and to look for the first Inside Bar after 06:00GMT. Question: If the "first" bar of the day (the bar from 06:00 to 07:00GMT) is an Inside Bar of the previous day's last bar (the bar from 05:00 to 06:00GMT), then can we take breakout of this "first" bar as a trading signal? Or are we supposed to use Inside Bars that form after the"first" bar?

(2) If previous day's Close price is contained within an Inside Bar's body, then should we go Long or Short? As an example only, let's say a pair's previous day close (and today's open) is 105.00 - which becomes our reference price. Now, the bar from 09:00 to 10:00GMT happens to be an Inside Bar with Open=104.90, Close=105.10, High=105.20, Low=104.80. Am I correct to say that during the course of the next bar (from 10:00 to 11:00GMT), as soon as price goes to 105.21, we will go Long, and as as soon as price goes to 104.79, we will go Short?

Regards.
  • #143
  • May 9, 2008 5:15am May 9, 2008 5:15am
Quoting blueskies

I am not clear on following points:
(1) The method recommends to take 06:00GMT as start the trading day, and to look for the first Inside Bar after 06:00GMT. Question: If the "first" bar of the day (the bar from 06:00 to 07:00GMT) is an Inside Bar of the previous day's last bar (the bar from 05:00 to 06:00GMT), then can we take breakout of this "first" bar as a trading signal? Or are we supposed to use Inside Bars that form after the"first" bar?
I think it is safe to take it.

Quoting blueskies
(2) If previous day's Close price is contained within an Inside Bar's body, then should we go Long or Short?
Any of the directions, which one is broken first.
Trading = a mirror to your human flaws. Fix them or be fixed.
  • #144
  • Edited 6:47am May 9, 2008 5:41am | Edited 6:47am
I am attaching a chart of AUDUSD. Can I confirm that:
- The red arrow correctly points to an Inside Bar which could have resulted in one Long trade and one Short trade?
- The Long trade, if taken, would have been Stopped Out.

I am trying to see whether I have a correct understanding of the method. All comments/corrections are welcomed!

Regards.
Attached Image (click to enlarge)
Click to Enlarge Name: audusd.gif Size: 15 KB
  • #145
  • Edited 6:52am May 9, 2008 5:45am | Edited 6:52am
I am attaching another chart of EURUSD. Can I confirm that the red arrow correctly points to an Inside Bar for for this method?

Regards.
Attached Image (click to enlarge)
Click to Enlarge Name: eurusd.gif Size: 12 KB
  • #146
  • May 9, 2008 5:49am May 9, 2008 5:49am
By the way, in case anyone wonders, following are timings of the two candlesticks pointed by the red arrows:
- AUDUSD: 08:00GMT
- EURUSD: 09:00GMT

Regards.
  • #147
  • May 9, 2008 6:10am May 9, 2008 6:10am
Another newbie question. Is there a "validity period" to an Inside Bar (IB)?
- Let's say the bar from 09:00 to 10:00GMT is an IB.
- The next bar goes below low of the IB, resulting in a Short trade.
- Then the next 4 bars are all range bound (not hitting the Stop Loss), but also not moving more than a few pips from the entry point.
- The 6th bar from the IB then shoots up, taking out the Stop Loss. However, what I really want to know is whether we can still take a Long trade based on an IB that was formed 6 hours ago? Hence my question of "validity period" of an IB.

Regards.
  • #148
  • May 9, 2008 6:13am May 9, 2008 6:13am
Blueskies, I see you being correct with both arrows. However a breakout only qualifies if it is in the direction of the days trend. ie a short if the breakout is below the level of the previous days close or a buy if it is above.
Good Trading
  • #149
  • May 9, 2008 6:54am May 9, 2008 6:54am
And the result of previous setup from http://www.forexfactory.com/showpost...&postcount=136

The result woudl have been positive for BOTH IBs! Even if the 2nd one first broke to the upside. Any of the position would could have been half closed at 1:1 and the remaining half resulting in a free ride.
Attached Image
Trading = a mirror to your human flaws. Fix them or be fixed.
  • #150
  • May 9, 2008 6:59am May 9, 2008 6:59am
Hi,

Thanks for correction.

I have posted new chart images with with opening prices in red line.

So we would not taken the Long trade (which would have resulted in it being Stopped Out with a loss) in the case of AUDUSD because the price was below the day's opening price. We would have been looking for a Short trade only.

As for the EURUSD, we would enter only Long position because the price is above the opening price.

Thanks for advice!

Regards.



Quoting aud
Blueskies, I see you being correct with both arrows. However a breakout only qualifies if it is in the direction of the days trend. ie a short if the breakout is below the level of the previous days close or a buy if it is above.
  • #151
  • May 9, 2008 6:59am May 9, 2008 6:59am
And a more recent one, USDJPY. Didn't reach 1:1 yet.
Attached Image
Trading = a mirror to your human flaws. Fix them or be fixed.
  • #152
  • May 9, 2008 11:39am May 9, 2008 11:39am
Quoting jarroo
GBP/USD

Open for the day is 1.9550. Bottom or the top of this IB at this time.
Quick post.
Attached Image
Indicators show the past. Price Action "Indicates" the future.
  • #153
  • May 10, 2008 6:34pm May 10, 2008 6:34pm
I thought I would post a couple of charts from last week and this past week of the Gbp/Usd. This is just to establish time of day, rules, etc. Others can show their chart and compare the differences.

I have not gone through the profit and loss but it is obvious it has been two profitable weeks with the Gbp/Usd.
Attached Images
Indicators show the past. Price Action "Indicates" the future.
  • #154
  • May 10, 2008 6:38pm May 10, 2008 6:38pm
Quoting PeterCrowns
In many ways I regret mentioning anything on this forum. What you've seen in this thread is about all I'm going to say or offer. I may post from time to time, but I really don't see much benefit. Atlas Shrugged explains my overall view in this regard.

(The secret I said I'd mention)
I "KNOW" that people who absolutely have to find out how to trade correctly and profitably are willing to do ANYTHING to get that information, and then get it! I was..., and got that information! You think it was free? (You who thought I should have put "almost" in front of "anything" in the preceding sentence-- you might want to find a kinder profession! Serious trading isn't kind to anyone involved--)

If you are willing to pull out all the stops, you can succeed! That will be an edge you will have over the many thousands of others here who don't want to pay what must be paid.

I am sad to say my experience has been that most people in forum environments just want something for free or for someone to do all the work for them (for free) and aren't willing to put forth the real work necessary to get the benefits. So this posting adventure reaffirmed to me that it is likely a waste of time for me to continue posting.

A Word to the Wise is Sufficient
Intelligent people can take hints; they don’t need to have everything explained to them at great length. I have had contacts with a number of fine people from this forum who fit that category and have no doubt they will find their way to success if they keep at it.

-Mgh- Thanks again for the interest and fine comments, and indeed all of the other great comments and assistance great people have offered on this forum.

I'm not unhappy with any responses or individuals here. I just need to get on with trading and only see any further contributions as a form of effort without compensation. I have relatives that resemble that situation already.

Thanks again for having me for a short time.

-PeterCrowns-
There is probably a lot of truth in this, but I'm not sure what was expected.

This thread is in the "Forex Rookie Q&A"- as in "Question & Answer". I don't think anyone should feel ashamed for asking questions here, and hoping for a free answer. While the tone here is nice, the message just seems degrading to anyone posting in this forum.
  • #155
  • May 10, 2008 7:18pm May 10, 2008 7:18pm
I am glad to see that Peter's sharing has been taken up by a few more ppl.

Just to clarify a few things for other, below I have outlined how I see things. Remember Peter did say that for intelligent traders, a hint is enough, rather than having everything spelled out. So in order to become more intelligent, I have pondered and analysed everything he has said, and if you do that, you will come across many many subtle hints that will improve ur method results.

Below I have outlined a few things from memory that he had said(may have paraphrased some of them), that I have found as "hints":

- Start of the day is when the people who control the money wake up, ie 0600GMT
- Does not take trades after about 9-10 hours open of session open
- The earlier the valid IB setup occurs, the higher the chance of a good signal, and higher the profit potential
- Follow the 4 majors
- If you combine this with the weekly trend, the profit potential increases many many fold.
- The big boys (hedge funds etc) do not have the luxury of us small traders who can sit out the entire day without making a decision (for whatever reason, eg all the indicators did not line up, got called away from the computer just before the move happened).
- To make serious money, the trader needs to get in on the move before majority of the ppl make a decision.
- The traders at the big boys aren't as intelligent as we think they are (my favourite)


I am sure there are more subtle hints that I might have missed out on, if you spot them, pls feel free to add them here.

It is a great loss for me that Peter has stopped posting, as I had many questions about market dynamics and co-relation market movement that I have been observing but that do not make sense to me. In the off chance that Peter does take a peak into this thread (which I doubt very much, judging from his last response and determining his personality from his responses), or someone else who understands what I am talking about, might take the time to answer.

As we know that usd/chf and eur/usd are negatively corelated (it is occasinally that we see this co-relation pause, like it did for about 2-4 hrs on this Friday). What I have always wondered is this, why is it that they move in tandem? Is it that a firm has one team that trades eur/usd and another team that trades usd/chf? Surely the trader can not be trading both at the same time as that would be doubling the risk on the positions. But if eur/usd is moving, you can be quite sure that usd/chf is also moving in the other direction (except ofcourse if eur/usd is moving due to eur/jpy). Is majority of the trading done by computers that have been programmed to enter into trades if " if x does this, then do that on y" type of programes? Often you will see eur/usd spike say 30pips, and at the 'same' time, usd/chf will move as well. Then there will be a reversal on both etc. This is what I do not understand. I can understand a big trader selling say 500M on eur/usd at one time, but how does that translate to someone taking out all the bids on usd/chf??

I know that this is outside the realm of what the thread originally started out with, and also the DIBS discussion. But I have struggled to understand the market dynamics and this co-relation movement since I started to try to understand it. And I feel that once understood, it can only make one a better trader.

Regards,
K.
  • #156
  • May 10, 2008 7:22pm May 10, 2008 7:22pm
Quoting PeterCrowns
In many ways I regret mentioning anything on this forum. What you've seen in this thread is about all I'm going to say or offer. I may post from time to time, but I really don't see much benefit. Atlas Shrugged explains my overall view in this regard.

-PeterCrowns-
"Who is John Galt?"

The world will change when you are ready to pronounce this oath:
I swear by my Life and my love of it that I will never live for the sake of another man, nor ask another man to live for the sake of mine.
Indicators show the past. Price Action "Indicates" the future.
  • #157
  • May 10, 2008 7:36pm May 10, 2008 7:36pm
Quoting PeterCrowns
-kermut-

Again, very good questions. And thanks for the interest. It looks like there are a number on FF who aren't just looking for the "perfect robot".

Those were great questions, -kermut-.

-PeterCrowns-
Nice work kermut. (Your recent post)

I think Peter liked your genuine interest and willingness to work on this without being spoon fed.

I think we and others can work on this to find the heart of the method.

Jim
Indicators show the past. Price Action "Indicates" the future.
  • #158
  • May 10, 2008 8:36pm May 10, 2008 8:36pm
Quoting kermut


Below I have outlined a few things from memory that he had said(may have paraphrased some of them), that I have found as "hints":

- Start of the day is when the people who control the money wake up, ie 0600GMT
- Does not take trades after about 9-10 hours open of session open
- The earlier the valid IB setup occurs, the higher the chance of a good signal, and higher the profit potential
- Follow the 4 majors
- If you combine this with the weekly trend, the profit potential increases many many fold.
- The big boys (hedge funds etc) do not have the luxury of us small traders who can sit out the entire day without making a decision (for whatever reason, eg all the indicators did not line up, got called away from the computer just before the move happened).
- To make serious money, the trader needs to get in on the move before majority of the ppl make a decision.
- The traders at the big boys aren't as intelligent as we think they are (my favourite)

Regards,
K.
I like this one too kermut.

-A Word to the Wise is Sufficient
Intelligent people can take hints; they don’t need to have everything explained to them at great length. I have had contacts with a number of fine people from this forum who fit that category and have no doubt they will find their way to success if they keep at it.

Jim
Indicators show the past. Price Action "Indicates" the future.
  • #159
  • May 10, 2008 8:58pm May 10, 2008 8:58pm
just found this thread since someone mentioning the name Peter Crown on other thread

personally I also doing this technical entry/exit which I found through chart reading and I'm amazed of how simple trading really is. however the task to find the hot market is rather tricky

in the stockmarket it is easier to decide the "hot" one using various indexes and tools available and that will deliver us to the max profit available in the market with the least risk

in the forexmarket it is somewhat speculating to get your hand on the "hot" pairs

good luck all
  • #160
  • Edited 10:13pm May 10, 2008 10:00pm | Edited 10:13pm
Quoting jarroo
Nice work kermut. (Your recent post)

I think Peter liked your genuine interest and willingness to work on this without being spoon fed.

I think we and others can work on this to find the heart of the method.

Jim
Hi Jim,

Thanks for the comments. Though I would have to say that everyone reading and contributing to the thread would have had a genuine interest in this.

As you would have noticed, most of my questions were not directly related to the method, but more to do with market movement, and why and who facilitates this movement. There are a load of methods on this wonderful forum that actually do work. I am actually amazed to see how well some of those systems work, using indicators. But as indicators are basically showing price in nice colours and lines, it was impt for me to find out what actually moves the price. Most of the successful strategies here are basically a variation of some sort of 1-2-3 pattern, ie movement in price, then a pull back, then a continuation of price movement. Where this method stands out is that if the right IB occurs early on in the trading session, then you will be in on the intial 1-2 move, which is a huge edge, as far as I can tell. Esp if the move is with the weekly trend direction.

While I do not like to add variations to such a successful method, there is something that I have been thinking about. I do not have the time to actually back test this as I work full time, and trade after work, but if anyone else would like to, pls feel free to. The DIBS method is working on the supposition(EDIT: and a proven one at that) that the market movers will move the market in the direction of the daily direction once there is a period of price congestion (an IB). My idea is looking at where the price is in relation to the weekly open. ie if the price is above previous week's open, then look for longs in addition to the normal DIBS trades. I thought about this from Harold's thread, where he determines the daily direction based on his indicators, and then waits for the price to go opposite to that direction and look to enter on a 1-2-3 pattern in the direction of the daily.

So in this case, if our current price is below week's open,and the price has made a run up to end up above session open, without any valid DIBS signal to go long, and we have an IB set up, then what would be the result of us placing two limit entries, one to go long (as per the DIBS) and one to go short (in line with the weekly trend).

Just a thought, and if Peter was still contributing I imagine he might have given me a wrap across the knuckles for trying to modify something that already works so well.

Regards,
K.
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