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The DIBS Method... No Free Lunch continues

  • #3,141
  • Jun 27, 2008 2:46am Jun 27, 2008 2:46am
Hello,
would like to attach two "Historical Volatility Ratio's" also known as "HVR".

The standard settings used are a 10/100 and 6/100 HVR with a 50% ratio. But I do not know how to create this indicator.

Below is what the indicator should look like under the chart.
Attached Image
  • #3,142
  • Jun 27, 2008 2:49am Jun 27, 2008 2:49am
Quoting aud
Wasn't that train running a few hours early?
...their entries were after the 6am open. As per the rules.
  • #3,143
  • Jun 27, 2008 2:53am Jun 27, 2008 2:53am
Aud,

I had entered both sides of the Oanda H3 IB 17.00-20.00 BST yesterday. Triggered and stopped out on long trade. Triggered this morning on short but moved stop too soon and stopped for small profit.

My problem is moving stops too soon.....fear of losing gains to counter losses.
I am trying to discipline myself to allow trades to run.....this short was already a free trade, but..........there, I've administered a ruler across my knuckles, so I'll remember not to move stops next time!!!
  • #3,144
  • Jun 27, 2008 2:53am Jun 27, 2008 2:53am
My appoligies if I did not see this in PCs writtings.

Are we supposed to take these when they have already broken up , the direction is down and the price breaks to the downside, or is that discretionary?
  • #3,145
  • Jun 27, 2008 3:01am Jun 27, 2008 3:01am
Quoting Dale
My appoligies if I did not see this in PCs writting, are we supposed to take these when they have already broken up , the direction is down and the price breaks to the downside, or is that discretionary?
Dale,

In my Oanda chart the IB took place @ 3gmt penetrated the high three times followed by the present candle which broke the low...this is ok by PC rules..It is below the daily open @6gmt so ....take a short trade. PC said...that all trades are discretionary. In my case I just got lucky because I did got up after those fakeouts.

Unus pro omnibus, omnes pro uno
  • #3,146
  • Jun 27, 2008 3:04am Jun 27, 2008 3:04am
GBP/CHF on the free trade now, 1:1 achieved. Daily making lower highs and yesterday broke a 3bar low. The GBP/JPY has also broken and would have been the better trade...with hindsight daily price action was stronger.
Attached Image
  • #3,147
  • Jun 27, 2008 3:08am Jun 27, 2008 3:08am
Quoting Trumpcard
GBP/CHF on the free trade now, 1:1 achieved. Daily making lower highs and yesterday broke a 3bar low. The GBP/JPY has also broken and would have been the better trade...with hindsight daily price action was stronger.
Trump,

I dont trade those pairs but nice job!
Unus pro omnibus, omnes pro uno
  • #3,148
  • Jun 27, 2008 3:17am Jun 27, 2008 3:17am
thanks! let's see if the free trade doesn't get stopped out, for the first time i'm leaving the stop loss alone. Want to have some free trades stacking up.
  • #3,149
  • Jun 27, 2008 3:17am Jun 27, 2008 3:17am
Quoting attictrader
Aud,

I had entered both sides of the Oanda H3 IB 17.00-20.00 BST yesterday. Triggered and stopped out on long trade. Triggered this morning on short but moved stop too soon and stopped for small profit.

My problem is moving stops too soon.....fear of losing gains to counter losses.
I am trying to discipline myself to allow trades to run.....this short was already a free trade, but..........there, I've administered a ruler across my knuckles, so I'll remember not to move stops next time!!!
As far as I can tell today's IB on G/U was at 03:00GMT and was well and truly broken on the 04:00GMT bar.

Trailing stops on the free trades are according to a 20 MA on the daily chart. I would normally have the problem you described, what helps me leave it to run is the free trade idea.
Good Trading
  • #3,150
  • Jun 27, 2008 3:20am Jun 27, 2008 3:20am
ooo so u guyz take the Ibs forming b4 600gmt i looked for them from 600-16gmt
  • #3,151
  • Jun 27, 2008 3:29am Jun 27, 2008 3:29am
Quoting ezz
ooo so u guyz take the Ibs forming b4 600gmt i looked for them from 600-16gmt
EZZ,

It depends....this one was close enough for me and price had been ranging for several hours..but you are correct the breakout (long or short) is based on the daily open @6gmt or 5gmt for some of the people here.

Unus pro omnibus, omnes pro uno
  • #3,152
  • Jun 27, 2008 3:32am Jun 27, 2008 3:32am
Thankyou Moneda
  • #3,153
  • Jun 27, 2008 3:38am Jun 27, 2008 3:38am
Good long setup on AUDUSD @ 7.00 GMT bar...
Attached Image (click to enlarge)
Click to Enlarge Name: audusd.gif Size: 17 KB
  • #3,154
  • Jun 27, 2008 3:43am Jun 27, 2008 3:43am
Quoting Alberto_Jazz
Good long setup on AUDUSD @ 7.00 GMT bar...
I got that one
  • #3,155
  • Jun 27, 2008 3:44am Jun 27, 2008 3:44am
Quoting billflet
Some good info in that PDF. Any study of IBs is helpful. For those trying to find stronger IBs, the NR4 bar is worth looking at. Before anyone asks what an NR4 bar is, read the PDF attached to the post I'm quoting. NR4-IB.pdf
I've been having great success with DIBS without attaching any conditions to it, but it's great to read about other IB breakout strategies. An expanded knowledge of IBs can help when you're presented with several setups and need to pick the best one or two.
An interesting read indeed.
Indicators show the past. Price Action "Indicates" the future.
  • #3,156
  • Jun 27, 2008 3:48am Jun 27, 2008 3:48am
All my trades are in a free trade, I like the simplicity of this, and I am drinking my share of coffee
  • #3,157
  • Jun 27, 2008 4:00am Jun 27, 2008 4:00am
I'm just thinking out loud here.

I understand that an IB represents indecision and if you switch to a lower TF you wil most likely see a triangle which acts as a compressed spring pushing the price on its break. Hence why we trade the IBs.

Now someone...I don't remember who...posted in a previous post (think it was HouseTrader) that if the IB is broken on the wrong side (i.e. price is up for the day and the IB is broken down) he discards the IB and looks for another. To me this just simbolises a channel/flag rather than a triangle and a breakout of this (the IB) should be just as valid...[*EDIT* In the direction of the day (above/below open buy/sell respectively)]

Any thoughts anyone?

Bobby
  • #3,158
  • Jun 27, 2008 4:24am Jun 27, 2008 4:24am
Quoting Bob76
Good Trading Day To All.

I have read many posts and all the summary. The system i understand its just that i was wondering whats the core concept behind the DIBS setup.

I mean there are many people who trade this way specially with the cable. Like i have seen many breakout strategies that say a set amount of pips in relation to high and low of the previous day etc. And many are like that but every one has got a custom version of the breakout strategy but the main similarity between them is some defined number of pips to get the entry.

What is unique with DIBS is that it does not define a number of pips instead it waits for the dib setup, Now the question is Why.....?


What i have come to think of is that when this setup forms it means that the people are really undecisive of which way to go (Kind of a triangle formation) and when it is broken the probability is that the market has made up its mind for a certian direction.

The IB is basically the undecisiveness of the market....


Or may be i dont make any sense at all....

Bob76
HouseTrader gave a pretty good prespective:

http://www.forexfactory.com/showpost...postcount=2976
Indicators show the past. Price Action "Indicates" the future.
  • #3,159
  • Jun 27, 2008 4:24am Jun 27, 2008 4:24am
Quoting bobbybrown
I'm just thinking out loud here.

I understand that an IB represents indecision and if you switch to a lower TF you wil most likely see a triangle which acts as a compressed spring pushing the price on its break. Hence why we trade the IBs.

Now someone...I don't remember who...posted in a previous post (think it was HouseTrader) that if the IB is broken on the wrong side (i.e. price is up for the day and the IB is broken down) he discards the IB and looks for another. To me this just simbolises a channel/flag rather than a triangle and a breakout of this (the IB) should be just as valid...[*EDIT* In the direction of the day (above/below open buy/sell respectively)]

Any thoughts anyone?
Bobby
Hey Bobby B, For whats its worth, I would
generally favour the direction of the day, i.e. if the day was an up day and an IB that formed had been broken to the downside, (while still above the open) i would give it a bit of leeway and still keep my Buy order in place...! I came to this conclusion by how many times this method would have worked through historiacal analysis... Hope this helps...!
  • #3,160
  • Jun 27, 2008 4:33am Jun 27, 2008 4:33am
Quoting eltrader
Hey Bobby B, For whats its worth, I would
generally favour the direction of the day, i.e. if the day was an up day and an IB that formed had been broken to the downside, (while still above the open) i would give it a bit of leeway and still keep my Buy order in place...! I came to this conclusion by how many times this method would have worked through historiacal analysis... Hope this helps...!
Thanks Eltrader.

I thought the same. Breakout of an IB in direction of the day regardless of it had been broken in other direction (as long as it wasn't on the open line) is still valid for me. It just means there was a channel or flag and not a triangle...or i suppose it could be a rising/falling triangle.

Just trying to understand the price action as much as I can.
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