DislikedIn 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.Ignored
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Indicators show the past. Price Action "Indicates" the future.
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PipHunter
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Haste not to Enter AND Haste not to Exit !-TradeStar
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