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The DIBS Method... No Free Lunch continues 11,328 replies

I drink your milkshake 19 replies

Attachments: No Free Lunch but all the Free Coffee you can drink
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No Free Lunch but all the Free Coffee you can drink

To the uninicitiated, Flags are those little Parallell Pennant sorta thingys that hang on the end of a Major Run {North or South} crawling in the opposite direction of the Run.

Before we discuss Trading them, let's discuss why they occurr.
http://www.investopedia.com/universi...ts/charts6.asp

In reality, this Flag has too many bars for my liking & I would probably put it on the back burner.
However. I don't know the TF of this chart. If it were a 5 min TF It would look very different & possibly inviting on a 60 min (1 Hr.) TF Chart.


Flags, anybody saluting?
Also notice the Horiz Sup that bounced the Flag & How high did it get before meeting some Resistance...
Attached Image
Looking forward to hearing your thoughts on these price patterns Bemac.

With this particular example and your comment about the horizontal support would you favor a buy limit at support with a view to holding for the break of the flag?

great thread

Quoting Bemac
To the uninicitiated, Flags are those little Parallell Pennant sorta thingys that hang on the end of a Major Run {North or South} crawling in the opposite direction of the Run.

Before we discuss Trading them, let's discuss why they occurr.
http://www.investopedia.com/universi...ts/charts6.asp

In reality, this Flag has too many bars for my liking & I would probably put it on the back burner.
However. I don't know the TF of this chart. If it were a 5 min TF It would look very different & possibly inviting on a 60 min (1 Hr.) TF Chart.


Flags, anybody saluting?
Also notice the Horiz Sup that bounced the Flag & How high did it get before meeting some Resistance...
  • Post #323
  • Quote
  • Edited at 9:00pm May 16, 2008 8:44pm | Edited at 9:00pm
Quoting fxprocessor
Looking forward to hearing your thoughts on these price patterns Bemac.

With this particular example and your comment about the horizontal support would you favor a buy limit at support with a view to holding for the break of the flag?

great thread
Scalp the Break. Swing the TF and look for potential Position Trades.

This particular example is not a perfect setup for me so as I said Keep your powder Dry. In other Words; Observe That Market.
Pic Posted is not current but esscence remains.

Large Run Up & Flag Retrace = Some sort of Bull Run Coming.
Vice Versa on a Bear Flag.

Pull all of your Market Knowledge to define LIMITS.
Quoting Bemac
Waaayyy baack. but look what happened.Way ta go Jay...
Thanks

I'm quiet but I'm still here It's been ups and downs for me. But I'm still in which is important.

I just have to keep my stick on the ice
Not all sins are created equal
Stole this pic from another thread but I think it might be usefull here.
5 Min GBP/USD
Attached Image (click to enlarge)
Click to Enlarge Name: Flag 5Min GBPUSD.jpg Size: 118 KB
A flag in 15 minutes GBPUSD?

Attached Image (click to enlarge)
Click to Enlarge Name: flag.gif Size: 23 KB
Quoting arhemsi
A flag in 15 minutes GBPUSD?
the downward flag on larger timeframe already broke on May 16 Japan season

I entered long at 1.945* on the new support

that was definitely a good entry
  • Post #329
  • Quote
  • Edited at 10:59pm May 18, 2008 10:48pm | Edited at 10:59pm
The thing about Flags is that they Hang On Poles. {Large Rapid Runs that turn in the Opposite Direction}

Caution against confusing Flags with Channels.{that's another topic...}
Quoting PeterCrowns
And yes, I have basically abandoned most of my CME contracts for Forex vehicles. Why not? They have tons of advantages that futures can't match. And just some of the problems. Size isn't one of them.
I couldn't agree more there. I just got so sick and tired of having to deal with rollover on my swings... I said forget it. Heck, if you can't make money at futures, you're not going to on forex neither... so you might as well trade forex...
Mr. Trend
Drawing Containment Lines;
Man, this is so Arbitrary But I Prefer;
High to High & Low to Low...

Some will use Close To Close & that's ok.

As I said before; Flags Hang on Poles. No Pole= No Flag;
Read the First Post; It's about People; Not Scientific Indicators.
So, The Nuts of a Flag;

Price Runs {Up} Rapidly in a few Bars: {Bulls Have Control}
Price Stalls & actually appears to Recede:{Bears Interjecct But Can't Turn the Market}
Bulls Overwhem Bears & Run The Market...

I intimated this previously but here is the explanation.
BULLS in Power;l
BEARS on Defence;
Bear Influence has Little Effect; Causes drag down Lower Lows But Minimal;

Playing the Setup
Only considering Bull Flags {Rapid Run Up & Slow Retrace}
The "Flag" has Boundary Lines Similar to a Channel.
Watch for this Break {Market Decision} & Play it with Tight SL.
Bull Flag has Sank from Peak.

First SL =Peak. {Top of Pole}

2nd SL = Same Distance Flag Sank From Peak Above Upper Flag Line. Watch for Hesitation @ Previous Peak.

Uhh.. was going pretty good there but the end got a little intense. Does anyone need further clarification?
I saw you measure targets by taking price-movement inside flag-pattern.
Another way I found good enough is by taking flagpole (in this example 220 pips) and take half of it (110 pips ) and add it to the breakout-price. That gives us approximately the rate 111.10 in TP.

Using your H-L inside pattern gives approximately the same targets so I guess the difference is minimal ?

Good thread !
Attached Image (click to enlarge)
Click to Enlarge Name: uj4h.jpg Size: 77 KB
Measure twice, cut once
Quoting PeterCrowns
I mentioned last week that the best trades are usually early in the day..., buying breakouts of inside hourly bars if the prices are "up" on the day, and selling downside breakouts of inside hourly bars if the prices are "down" on the day.

I just was able to take the most recent trades of this style in the Eur/Usd.

I thought the screenshot of the setup might be useful to some. These types of trades are simple, low-risk and potentially high reward. The only problem is you do have to be conscious when they happen so you can take the trade!

Have a good trading day.

-Peter-
Hello Peter! thank you for this elegant method. I'm studying it but I'm a bit confused about the opening time you use. in later posts you stated clearly that you use GMT06:00 or EST 01:00 as your opening price. but I've noticed that in this particular chart you've used here, the white line began at GMT05:00 or EST 00:00. could you please clarify this? thanks again.
Quoting aediaz1
I saw you measure targets by taking price-movement inside flag-pattern.
Another way I found good enough is by taking flagpole (in this example 220 pips) and take half of it (110 pips ) and add it to the breakout-price. That gives us approximately the rate 111.10 in TP.

Using your H-L inside pattern gives approximately the same targets so I guess the difference is minimal ?

Good thread !
Interesting chart/trading...
IBfx Sporadic Traded Account... All Time Return: 33.9%
Quoting bluefox
Hello Peter! thank you for this elegant method. I'm studying it but I'm a bit confused about the opening time you use. in later posts you stated clearly that you use GMT06:00 or EST 01:00 as your opening price. but I've noticed that in this particular chart you've used here, the white line began at GMT05:00 or EST 00:00. could you please clarify this? thanks again.
-bluefox-

The opening time is as I stated: GMT 06:00 or EST 01:00.

For anyone still reading this link for DIBS info:

If you have some extremely good reason (like tons of intraday data going back 35 years, and statistical variance maps that indicate something I haven't discovered already---) that indicates a different time for starting your trading day, please go ahead and use it. That will be your own little edge.

Otherwise, you might just want to try using the above mentioned starting time.

Thanks -bluefox- for stimulating a clarification.

-PeterCrowns-
Quoting PeterCrowns

The opening time is as I stated: GMT 06:00 or EST 01:00.

For anyone still reading this link for DIBS info

-PeterCrowns-

I am most definitely. I am VERY grateful that you've gone out of your way and despite some initial (it's a forum, it's almost a law that it happens) bumps still helped out and went out of your way to do so.

Me, I must say I am very thankful people keep reminding us that KISS works and that we must not overcomplicate matters so much. It is something I still do much too often, and we don't have to.

The time in question was one of the last a bit unclear items, so I thank you very much for clearing this up. I use IBFX demo feeds which are on GMT time, so this helped me a great deal to figure out the start. It's exactly the time I already try to get up to be at market, so that explains a lot..it's exactly 6 GMT onwards that the first 2 hours of "strong push" come into the market if you ask me.

Thanks again for your time


- Seeking
Trust price. Know yourself.
I am reading it daily, sometimes from the beginning. I am using this as an addition to my other system and find it very useful.

I don't scour the charts at all hours looking for trades, but when I see a DIBS setup, I jump in and take a couple of dozen pips and get out. Works well for me in this fashion.

Thanks to everyone for a great thread. Thanks Peter.
"They don't realize, they have no concept of self-destruction."
Quoting SeekingLight
I am most definitely. I am VERY grateful that you've gone out of your way and despite some initial (it's a forum, it's almost a law that it happens) bumps still helped out and went out of your way to do so.

Me, I must say I am very thankful people keep reminding us that KISS works and that we must not overcomplicate matters so much. It is something I still do much too often, and we don't have to.

The time in question was one of the last a bit unclear items, so I thank you very much for clearing this up. I use IBFX demo feeds which are on GMT time, so this helped me a great deal to figure out the start. It's exactly the time I already try to get up to be at market, so that explains a lot..it's exactly 6 GMT onwards that the first 2 hours of "strong push" come into the market if you ask me.

Thanks again for your time


- Seeking

but using InterbankFX the candle that matches with all chartes posted by Peter is the 5:00 GMT candle. I don't know if it is due to DST hour in London, or at NY, etc. But comparing the candle is it: open of the 01:00 EST (USA) using a MT4 with UGMFX data feed and 5:00 GMT using with MT4 with InterbankFX data feed.

you can search here UGMFX to know hou to use any MT4 with this feed (EST).

thanks Peter.


best regards.

EDIT:and i don't use UGMX anymore because they had some problems recentrly.

and i should add that in Northfinance the candle is 8:00.
Quoting giraia_br
but using InterbankFX the candle that matches with all chartes posted by Peter is the 5:00 GMT candle. I don't know if it is due to DST hour in London, or at NY, etc. But comparing the candle is it: open of the 01:00 EST (USA) using a MT4 with UGMFX data feed and 5:00 GMT using with MT4 with InterbankFX data feed.

you can search here UGMFX to know hou to use any MT4 with this feed (EST).

thanks Peter.


best regards.

EDIT:and i don't use UGMX anymore because they had some problems recentrly.

and i should add that in Northfinance the candle is 8:00.
http://www.forexfactory.com/showpost...&postcount=514
Indicators show the past. Price Action "Indicates" the future.
Quoting PeterCrowns
-bluefox-

The opening time is as I stated: GMT 06:00 or EST 01:00.

For anyone still reading this link for DIBS info:

If you have some extremely good reason (like tons of intraday data going back 35 years, and statistical variance maps that indicate something I haven't discovered already---) that indicates a different time for starting your trading day, please go ahead and use it. That will be your own little edge.

Otherwise, you might just want to try using the above mentioned starting time.

Thanks -bluefox- for stimulating a clarification.

-PeterCrowns-

A very big thank you, Peter, for coming back and clarifying this issue, that seems to be a big topic for discussion. You had stated it many times early on, and even in response to one of my questions. I hope this will settle the issue once and for all.

I have been thinking quite a bit about the money management bit and have made a post in the other thread, in keeping with the spirit of this thread.

Regards,
K.
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