The DIBS Method... No Free Lunch continues

Quoting NowAndLater

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At times like these, higher timeframes might be a better suggestion. Have a look at the H4, or even the daily (look at a trade I posted yesterday on UJ and UC, or maybe look at the H8 as I posted earlier today). And riding any trades these days is a bit tough (tried that yesterday and only got to BE), as the pairs are turning back and forth. Look for good entries with DIBS and maybe take proftis based on s/r, fibs, pivots, and daily averge ranges, as we won't see runners I think.
Look at the H8 UJ today. I took the break of the IB with a trailstop of 15 for the remainding 1/3 (remember that this is a countertrend trade as well and we don't expect these to run as good). TP area was between 106.37 and 106.17 where some heavy support lies in form of monthly and weekly pivot point, trendline, fibs (a higher timeframe 38% fib as well - solid red lines) and the daily average range. This area is a heavy s/r level as well looking back historically. Hindsight is nice, but the confluence of support was easy to see then as well.

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Quoting HouseTrader

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Sure, mate! When market is making these YO-YO dancing (as our friend Moneda call it ) a higher TF helps to filter the moves. In fact the only trade I got today was a short on U/J based on a 3H (Oanda) IB when I saw PA moving quickly down... Got some pips, indeed, but got to stay very aware of the PA... Knowing that thes has been YO-YO days, I trailled my stop by leting it at the top of the closed 1H bar, and got stopped when the reversal (huge reversal!) begun.... That was definitely not a pure DIBS strategy to get out, but my guts...huh... my discretion told me that another YO-YO was coming ...

Cheers!

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Quoting tigertrader

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Yup, also bending the rules here slightly. Due to the market volatility I am covering my risk as soon as the market allows and then trailing a tight 15 pip stop. Got stopped out on the EUR for a small profit and the GBP is still ticking over but looking like it may retrace and take me out. Those are my last two trades for the day. I also think the volume is probably way down with a lot of traders on vacation. Good luck and happy pipping!

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Quoting Lou

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Due to my regular schedule (this month is an exception) I cannot watch for DIB setups. I have to go with what I see in the later Asian session and then set and forget. I searched the thread for 'targets' but didnt find what I had hoped.

So,

Is there a method of placing targets... fibs, pivots, ? , that has worked well for those who must 'set and forget'

Thanks.

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Quoting Lou

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Due to my regular schedule (this month is an exception) I cannot watch for DIB setups. I have to go with what I see in the later Asian session and then set and forget. I searched the thread for 'targets' but didnt find what I had hoped.

So,
Is there a method of placing targets... fibs, pivots, ? , that has worked well for those who must 'set and forget'
Thanks.

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Quoting Lou

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Due to my regular schedule (this month is an exception) I cannot watch for DIB setups. I have to go with what I see in the later Asian session and then set and forget. I searched the thread for 'targets' but didnt find what I had hoped.

So,

Is there a method of placing targets... fibs, pivots, ? , that has worked well for those who must 'set and forget'

Thanks.

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Quoting MPP

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Hi Lou
this may be a trial and error process for you for a while, but i would suggest that you close 2/3 at at the 1:1 point and let the other 1/3 run free (there's more on this in 1 of my other posts but i have limited internet access and don't know which number it is), this way you will bank some and also allow some to got as far as possible, you could also apply a TSL.

The other method would be to use a % of the average daily range, say TP 1/2 or 2/3 at 1:1 and then TP the rest at the 40% point of the ADR, as you get use to the currency you could then extent or reduce this to achive a consitant result.

just an idea

MPP

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Quoting Big Wave Rider

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Hey MPP, hows it going? Checking out the DIBS huh? Seems to be very simple and effective. Might just have to give up my system

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Quoting MPP

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Each to there own, very simple and well worth the read - the same can be said for your system to - now what do we do.

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Quoting Big Wave Rider

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Good question, I have been simplifying my system as I said I never really went in on MA crosses. I really like this DIBS method. Ever since PC first posted it I have been observing the market with the daily open. Pretty soon my MA's seem to be useless compared to this. So then I had a tough question. Keep the ma's or lose them? I still have a template with my original system and now I have one that has a bit of mine, bo's and now dibs. I'll explain later. wife wants to have a talk.

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Quoting Lou

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Thanks NowandLater and Alberto_Jazz... I will check it out.

Would like to use DIBs that I find in the Asian Session, and put TP targets on them. So my question has more to do with what traders have experienced with any TP set ups .

Lou

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Quoting NowAndLater

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This may belong in it's own thread but it's related to this method and very much based on DIBS so I'll post it here. If this deviates too much, I'll remove the post (let me know if you want me to remove it).

Here's another way to use DIBS. Have a look at this H8 chart. The vertical lines shows bars which are formed prior to the daily open at 0600 GMT (my broker is GMT+2). These bars are formed during the night when the volumes are low, which is why we often get IB's on the H8 chart. This may work best with GU I think because that pair usually moves the smallest among the majors during the night, or GU might give more IB's between 2200GMT and 0600GMT. Of course these bars are bigger than the H1 IB's (I'll look to close 2/3 at 2:1), but they have their benefits as well.
PC looks at IB that breaks at the start of a new trading day, which is at 0600GMT (0500GMT). The next bar on the H8 chart starts at 0600GMT. This means that if we break the IB bar down, we are below the daily open and if we break the IB up we are below the daily open. The bar after the vertical line is our "action" bar. This bar is equivalent to PC's rule of only trading the first 6-9 hours after the daily open. And we could play the break of both sides if stopped out at first. The signal is even stronger if price is above the weekly open and the break is up, and vice versa. And avoid to big IB's. By that I mean: the IB range (including the spread and 1 pip above and 1 pips below allowing the break of the IB) should not be to big in comparison to the average daily range, 35-40% or less may be a good number.

To get the H8 use the periodconverter. Put it on the H1 chart and change PeriodMultiplier to 8 (8*1 = 8 hours, if you put it on other timeframes just change PeriodMultiplier accordingly). Then go to File->Open Offline and look up the pair and H8, for example "GBPUSD, H8" and open it. Use "TimeShift" to get the right 8hour period (it should be the 8 hours prior to 0600GMT) according to your broker's time. My broker is on GMT+2 so I dont change anything. If you broker is on GMT put "-2" in TimeShift, and so on.

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Quoting HouseTrader

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Hey, Lou...

Nice to see some of the most experienced traders around here!

I have put some DIBS (better saying... WIBS ) setups during overnight session (Asian), mainly after the beginning of Tokyo session, but using a higher TF (for me the best fit is Oanda's 3H, when we got some tiny 3H IBs)... using the Week's open as the line on the sand... never used with any TP, but considering that the Free Trade is often hit (on an 1:1 R/R), I guess anything close to this would be a reliable TP (usually the trade is triggered during Tokyo and 1:1 is hit after Frankfurt/London open). Sometimes I got a 2:1 (or even more) quickly hit, so that would be (perhaps) a good TP too. But, I must admit, due to the high volatility and indeciosion of last 2 weeks, I didn't trade any overnight setups for this time.

That's my experience with overnight setups, hope that colud help...

Cheers!

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Quoting Lou

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Dear HouseTrader.... Thanks for the tip. I will have to give it some in depth study. By the way...I see you use Oanda as well. Have you been bugging them to get trailing stops? I do, a couple of times a week . What do you think will they change? I have had too many near TP reversals for losses . How many? Two is too many and I have had more than that.

Ok rant over.

Thanks for the info.

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Quoting Bemac

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Hey guys,
If you feel like it, you may want to have a look at something else I've been doing for a while that, I feel, slots into DIBS.

http://www.forexfactory.com/showthre...29#post2098329


I know it's not presented on an MQ4 platter but the concept {procedure} is simple and, I'm sure, can be Transposed.

HTH.

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