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The DIBS Method... No Free Lunch continues

  • #1,101
  • Jun 2, 2008 5:02pm Jun 2, 2008 5:02pm
hey guys..
from reading over the last week, i tried to find a DIBS this morning and was wondering if this is correct..
1. the trend was down on the day from the open @ 0100EST
2. there was an inside bar off the 0400
3. DIBS IT IS....

http://i286.photobucket.com/albums/l...teasy/DIBS.jpg
  • #1,102
  • Jun 2, 2008 5:14pm Jun 2, 2008 5:14pm
I am wondering if there is any great advantage using IB breaks over trendline breaks.

My usual method of trading would be to take trend line breaks on 15min and higher TF. All the trades posted here today would have broken the 15 min trend line.

However, I decided to test method of IB break on GBP/USD and it was not very successful. I would not have taken this trade using the trendline breaks because it didn't break one.

Can anyone see advantage in this method over the trendline breaks?
  • #1,103
  • Jun 2, 2008 5:28pm Jun 2, 2008 5:28pm
one more,if i am seeing this right...

http://i286.photobucket.com/albums/l...easy/DIBS2.jpg
  • #1,104
  • Jun 2, 2008 5:37pm Jun 2, 2008 5:37pm
this one did not work out..but 2 did..

http://i286.photobucket.com/albums/l...easy/DIBS3.jpg
  • #1,105
  • Jun 2, 2008 5:53pm Jun 2, 2008 5:53pm
Quoting PiPnAiNtEaSy
this one did not work out..but 2 did..

http://i286.photobucket.com/albums/l...easy/DIBS3.jpg
Yes Pips - I missed first one at 6.00GMT and only saw IB later in day - took one that broke 618.
  • #1,106
  • Jun 2, 2008 6:51pm Jun 2, 2008 6:51pm
Quoting HouseTrader
Nice job!

I missed the USD/CHF cause I was looking at GBP/USD, and that one pissed me off later... never mind... got the USD/JPY...

Cheers!
IB on USDCHF today? I can't see it neither using IBFX nor North Finance.
  • #1,107
  • Jun 2, 2008 7:34pm Jun 2, 2008 7:34pm
Quoting giraia_br
IB on USDCHF today? I can't see it neither using IBFX nor North Finance.
In fact at my broker (ODL) it was a "two-matching-highs"... But for me it would be good enough to a DIBS too...
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Many share my views with me. But I don't share them with them...
  • #1,108
  • Edited 8:30pm Jun 2, 2008 8:23pm | Edited 8:30pm
[quote=edwinnk;2032676]hi straddle,

the only problem with this indicator is that everytime you exit and re-enter your platform, you have to re-set the width of the yellow bar to 2 or greater.
even though i save it in templates with width = 2, it always resets it. but its not a big deal.


I fixed that .See if it is working.


http://forexfactory.com/attachment.p...7&d=1212456191
  • #1,109
  • Jun 2, 2008 10:17pm Jun 2, 2008 10:17pm
Here's another dibs I found this morning (Jakarta time).
One is before the "official" open.
I didn't take the first dibs, even when it broke to the downside when I checked that the 15min PA is not convincing.
As it moved to the upside, I entered @104.61 and managing it by 15min PA.
I'm a bit cautious because the weekly and monthly pivots are at 104.66 and 104.84. Needs to break out convincingly to the upside to reach target.
At the moment, another DIBS is formed that allows me to moved up my stop to the second DIBS. If it breaks out to the upside, then add longs. If it breaks down, then exit and probably reverse.
PA right now faces resistant to the upside, but not so bad for me to exit early.
Anyway, in trading, use all your knowledge in controlling risks.
Okay, back to work...let's see what the RBA gonna do in an hour.
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  • #1,110
  • Jun 2, 2008 11:40pm Jun 2, 2008 11:40pm

Another dibs formed that stopped me out of my original trade (-7). Got myself short, double size (cause PA agreed) and it looks like the path of less resistance is taken by usd/jpy. Short at 104.53 and out half at 104.355. Let's let it ride with stop at 104.65 and target new lows 104.02 and perhaps S1 around 103.78.
I gotta say, this DIBS system is not bad if combined with my PA analysis. It's pretty good so far. Almost like my customized Harami system in 1hr time frame.

Regards,

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  • #1,111
  • Jun 3, 2008 2:12am Jun 3, 2008 2:12am
use five for width so the bars are colored
use in& out the other one which i had posted inside bar is another indicator for 4barinside Ok
  • #1,112
  • Jun 3, 2008 3:02am Jun 3, 2008 3:02am
Ib just came about on Gbp/chf... I will be playing this one once it breaks out.
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Things can get Real ugly, Real quick!!!
  • #1,113
  • Jun 3, 2008 3:17am Jun 3, 2008 3:17am
Quoting Atltrader
Ib just came about on Gbp/chf... I will be playing this one once it breaks out.
There are IB systems that look for reversals and this one looks like it may be one of those. There may well be a pull back first.

One question - following an IB, how many candles in the opposite direction can occur before the IB becomes invalid?

Thanks
  • #1,114
  • Jun 3, 2008 3:43am Jun 3, 2008 3:43am
Quoting edwinnk
An inside bar is a bar which is completely within the range of the preceding bar, i.e. it has a higher low and lower high than the bar immediately before it. An inside bar indicates a time of indecision or consolidation. x's mark inside bar.
http://www.dacharts.com/images/insideup.gif

Edit: P.S. you are lucky to have found this thread as a newbie, if you master this method and put the necessary time into it, I feel you will save yourself a lot of headaches and increase your chances to become a successful trader. I wish I would have known these techniques earlier in my trading experience. Thanks again to PeterCrowns.
Thanks for that edwinnk.

Just one other thing if I may.

Does an inside bar have to be created above the close of the day before to go long or can use an inside bar below this line and go long when the price is above?

Sometimes the bars straddle the previuos day close line and it is hard to tell what to do.

Thanks in advance.

Al
  • #1,115
  • Jun 3, 2008 3:44am Jun 3, 2008 3:44am
g/c just broke out to the down side. Just entered a small position short on g/c. the move was pushed by weaker then expected pound news... pipnick. I can see your concern. Im not sure if there is a limit on how many prior bars there can be before an IB is considered a reversal. The way I see it, is as long and you have an IB, and it breaks out, it should be a valid ib.... even if the 4 bars before it show a strong move down, (or up). we have been in a nice down trend, so Im gonna ride this one and let the trend be my friend.. we are coming upto some critical support on the 4 hr charts, if this breaks, then down down down she goes.
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Things can get Real ugly, Real quick!!!
  • #1,116
  • Jun 3, 2008 3:48am Jun 3, 2008 3:48am
good catch [
quote=Atltrader;2033721]g/c just broke out to the down side. Just entered a small position short on g/c. the move was pushed by weaker then expected pound news... pipnick. I can see your concern. Im not sure if there is a limit on how many prior bars there can be before an IB is considered a reversal. The way I see it, is as long and you have an IB, and it breaks out, it should be a valid ib.... even if the 4 bars before it show a strong move down, (or up). we have been in a nice down trend, so Im gonna ride this one and let the trend be my friend.. we are coming upto some critical support on the 4 hr charts, if this breaks, then down down down she goes.[/quote]
  • #1,117
  • Jun 3, 2008 3:52am Jun 3, 2008 3:52am
needs to break this support level.
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Things can get Real ugly, Real quick!!!
  • #1,118
  • Jun 3, 2008 3:54am Jun 3, 2008 3:54am
Quoting PipNick
There are IB systems that look for reversals and this one looks like it may be one of those. There may well be a pull back first.

One question - following an IB, how many candles in the opposite direction can occur before the IB becomes invalid?

Thanks
In my eyes, there is no candle counting here. If an IB is formed right after a huge bar, that just means, that price is retracing right now, which will probably result in a break of the IB to the other side that we are looking for. Some people get confused then and wonder if it the would still be a valid entry.

Again guys - try to see the bigger picture. If price is retracing and forming an IB and continues to retrace - that doesn´t mean that trend won´t continue so the signal is still valid, even if IB is broken on the other side of our trade direction. Also if price is going sideways because because there is not so much volume, because the stock markets of the currencies involved are closed right now (USD/CHF during the asian session), then it is quite normal that there are lots of bars since the last IB. Doesn´t mean that trend won´t continue, just not so many trades awake at that time.

Following the rules 100% would result in a invalid signal in the example I used because we then use next days open to determine trade direction, but again. Try to see the bigger picture. Go to a smaller TF (I recommend 5min) and have a look at the current trend there, go to daily TF and do the same here. Try to get an idea, what would happen if trend continues or retraces on the daily TF and see how that would work with your trade entry. If you have a feeling that it will go into your direction, have a look at the smaller TF (5mins) to get an idea when it might happen.

We´re trading naked here, so there is no real indicator that tells you, were the trend is going right now. So try to understand, what phases a trend has and try to determine in what phase of the trend we are right now on the higher TF and see how it correlates and you will understand why the IB systems works and how it works.
  • #1,119
  • Jun 3, 2008 3:54am Jun 3, 2008 3:54am
Quoting Atltrader
g/c just broke out to the down side. Just entered a small position short on g/c. the move was pushed by weaker then expected pound news... pipnick. I can see your concern. Im not sure if there is a limit on how many prior bars there can be before an IB is considered a reversal. The way I see it, is as long and you have an IB, and it breaks out, it should be a valid ib.... even if the 4 bars before it show a strong move down, (or up). we have been in a nice down trend, so Im gonna ride this one and let the trend be my friend.. we are coming upto some critical support on the 4 hr charts, if this breaks, then down down down she goes.
Ok Thanks for that, if the break comes straight after the inside bar things are clear, if price gos in the opposite direction for a number of bars and then continues with the days trend i'm not sure if this is still valid. I will watch the thread closely for more info.

Good luck with your trade.

Thanks to all contributors on here, its certainly turning in to a great thread.
  • #1,120
  • Jun 3, 2008 3:55am Jun 3, 2008 3:55am
i have write this indic you just need to adjust your propriety chart for that see picture really a good tthread i play inside and outside bar since a long time
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