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The DIBS Method... No Free Lunch continues

  • #4,061
  • Jul 24, 2008 4:42am Jul 24, 2008 4:42am
[quote=johnnykanoo;2124664]am I wrong but isn't divergence considered bearish? I could definatly be wrong.

Anyway My name is john and im new to this thread and I wanted to introduce myself and say thank you to all who contribute. Ive been getting my feet wet with this strat and I like it. Im a big fan of price action and ibs and obs are pretty reliable for break out trading. When the market is coiling up its looking for some where to go and when you add that to the powerful stratagy of trading in the direction of the trend its hard to lose.

Besides If your wrong you can do a jacko style recovery or fti style rescue if you are going in the right direction of the overall trend so to me it has good potential.[/quote]

johnnykanoo,

Make sure you know what you are doing before you try a Jacko or fti style rescue.

Why on earth would you want to mess with such a simple system, without at first trying it out.

Regards,

BabeFX.
  • #4,062
  • Jul 24, 2008 5:33am Jul 24, 2008 5:33am
Quote
Why on earth would you want to mess with such a simple system, without at first trying it out.

Im not messing with this system at all. Ive been trading ibs and obs for 2 years now. Honestly all i meant was trading in the direction of the trend was smart and it was clever that peter taught that the trend will be established most of the time very early in the trading day.

As far as stops and exiting the trade go im only on page 70ish but ive already read like 6 different exit strats so I was adding a 7th I love this KISS strat!!!
  • #4,063
  • Jul 24, 2008 8:05am Jul 24, 2008 8:05am
Did anyone short GBPUSD around 10:00 GMT? If you did it would be a free ride now !


Rusty
  • #4,064
  • Jul 24, 2008 8:09am Jul 24, 2008 8:09am
Quoting johnnykanoo
Im not messing with this system at all. Ive been trading ibs and obs for 2 years now. Honestly all i meant was trading in the direction of the trend was smart and it was clever that peter taught that the trend will be established most of the time very early in the trading day.

As far as stops and exiting the trade go im only on page 70ish but ive already read like 6 different exit strats so I was adding a 7th I love this KISS strat!!!
JohnnyKanoo,

since I am still learning all this, when makes an OB speecial?

Rusty
  • #4,065
  • Jul 24, 2008 9:18am Jul 24, 2008 9:18am
I am a humble noob who is trying to get my head around this nice DIBS system. I am 3 weeks into Forex entirely....looking at my charts on FXCM and I cannot see even one inside bar...the bars cannot be even right? It must have a lower high and a higher low...I am looking at 1hr charts and even going back some. Can anyone estimate roughly how many inside bar setups would occur during the first 6-9 hours of the session, I just want to find one!


Thanks.
The way is narrow
  • #4,066
  • Jul 24, 2008 9:24am Jul 24, 2008 9:24am
Quoting Sainz4Pips
I am a humble noob who is trying to get my head around this nice DIBS system. I am 3 weeks into Forex entirely....looking at my charts on FXCM and I cannot see even one inside bar...the bars cannot be even right? It must have a lower high and a higher low...I am looking at 1hr charts and even going back some. Can anyone estimate roughly how many inside bar setups would occur during the first 6-9 hours of the session, I just want to find one!


Thanks.
May be none. Hope you are working on a demo. Make sure you understand the setup correctly. Just to level set, you may not get many setups. Even when you do get setups, 7 out of 10 could be losers. Again, it doesn't mean you have to lose heart. Just right money management and stay on the game.

Best of luck
TradeStar
Haste not to Enter AND Haste not to Exit !-TradeStar
  • #4,067
  • Jul 24, 2008 9:28am Jul 24, 2008 9:28am
Quoting Sainz4Pips
I am a humble noob who is trying to get my head around this nice DIBS system. I am 3 weeks into Forex entirely....looking at my charts on FXCM and I cannot see even one inside bar...the bars cannot be even right? It must have a lower high and a higher low...I am looking at 1hr charts and even going back some. Can anyone estimate roughly how many inside bar setups would occur during the first 6-9 hours of the session, I just want to find one!


Thanks.
Again, if you meant to say you didn't find a single IB in the 3 weeks worth of hourly data in any of the pairs, then something is not right.

TradeStar
Haste not to Enter AND Haste not to Exit !-TradeStar
  • #4,068
  • Jul 24, 2008 9:34am Jul 24, 2008 9:34am
  •  MPP
  • Joined Jun 2007 | Status: Be yourself, everyone else is taken | 2,734 Posts
Quoting Sainz4Pips
I am a humble noob who is trying to get my head around this nice DIBS system. I am 3 weeks into Forex entirely....looking at my charts on FXCM and I cannot see even one inside bar...the bars cannot be even right? It must have a lower high and a higher low...I am looking at 1hr charts and even going back some. Can anyone estimate roughly how many inside bar setups would occur during the first 6-9 hours of the session, I just want to find one!


Thanks.
Try opening an MT4 based demo account (search brokers on FF there are plenty to choose from) then add the IBv2 indicator and the Daily open line, from there you will be able to learn what to look for on any chart.
  • #4,069
  • Jul 24, 2008 9:45am Jul 24, 2008 9:45am
Quoting Sainz4Pips
I am a humble noob who is trying to get my head around this nice DIBS system. I am 3 weeks into Forex entirely....looking at my charts on FXCM and I cannot see even one inside bar...the bars cannot be even right? It must have a lower high and a higher low...I am looking at 1hr charts and even going back some. Can anyone estimate roughly how many inside bar setups would occur during the first 6-9 hours of the session, I just want to find one!

Thanks.
Since nobody else pointed it out, here's the page 1 definition of an IB (below). Please note that they can be even to the previous bar:

What’s an Inside Bar (candle)?
A bar with a High that is lower than the previous bar’s High and a Low that is higher than the previous bar’s Low. A stricter definition for trading the DIBS Method is that an IB cannot exceed the bounds of the previous bar. Meaning that a top and/or bottom (High and/or Low) can be equal to the previous bar.
  • #4,070
  • Jul 24, 2008 10:15am Jul 24, 2008 10:15am
As a thought....

If an IB is withen the open - close range of the previous bar, not just the high - low , is there any increase in the strength of the break??

Rusty
  • #4,071
  • Jul 24, 2008 10:15am Jul 24, 2008 10:15am
Quoting johnnykanoo
Im not messing with this system at all. Ive been trading ibs and obs for 2 years now. Honestly all i meant was trading in the direction of the trend was smart and it was clever that peter taught that the trend will be established most of the time very early in the trading day.

As far as stops and exiting the trade go im only on page 70ish but ive already read like 6 different exit strats so I was adding a 7th I love this KISS strat!!!

I was just a little concerned if you were a complete beginner.

BabeFX.
  • #4,072
  • Jul 24, 2008 2:40pm Jul 24, 2008 2:40pm
Now and later:
Thanks for the reply, the chart I am referring to is in the first post of this thread and the first chart - GBPUSD - you will see there are several short dotted horizontal lines - I would like to know what they indicate please.

On another point, in practice I have found that if you sets the stop loss at the low or the high of the inside bar depending whether you are bull or a bear, you very often finds that you would get shot out with a spike down or a spike up and I would appreciate knowing how to avoid this problem because very often the move then continues where you would foresee it to go and the result is that you have missed that rise or fall.

In order to avoid this do you only take inside bars that are near a cycle low or cycle high, or better still do you do something else like adjust the stop loss somehow.

Thanks
  • #4,073
  • Jul 24, 2008 5:09pm Jul 24, 2008 5:09pm
Quote
JohnnyKanoo,

since I am still learning all this, when makes an OB speecial?

Rusty

An ob "outside bar" is similar to an ib because price is in a consolidation mode. An ib the high is lower than the previous high and the low is higher than the previous low which only means price hasn't chosen a direction yet. In the DIBS strat we are looking for price to break out and choose a direction.

An outside bar is similar in that price hasn't chosen a direction yet. Ab ob is defined as having a higher high and a lower low than the previous bar. The bulls pushed the price a little higher and the bears dragged the price a little lower. It is also a type of consolidation pattern that price can break out from.
thanks, john

Many people say an ob and an ib are considered the same and still others say that the ib is a stronger more reilaible bar to play. For me as it relates to DIBS i cannot say but in my other trading it is just as effective so I view the ib and the ob as being equal.

Having said that I am in no way attempting to change this system it is just something that I look at when Im trading.
  • #4,074
  • Jul 24, 2008 5:10pm Jul 24, 2008 5:10pm
Quote
I was just a little concerned if you were a complete beginner.

BabeFX.

thanks, its always good to have somebody looking out for me
  • #4,075
  • Jul 24, 2008 5:15pm Jul 24, 2008 5:15pm
Quote
If an IB is withen the open - close range of the previous bar, not just the high - low , is there any increase in the strength of the break??

Rusty

I say yes definatly. Even when I draw my fibs or s/r lines I almost always consider the open and the close as more valid. The high and low are important but I personaly feel the open and the close tell a truer more accurate story of where price really is.
  • #4,076
  • Jul 24, 2008 5:45pm Jul 24, 2008 5:45pm
Quoting wolf69
Now and later:
Thanks for the reply, the chart I am referring to is in the first post of this thread and the first chart - GBPUSD - you will see there are several short dotted horizontal lines - I would like to know what they indicate please.

On another point, in practice I have found that if you sets the stop loss at the low or the high of the inside bar depending whether you are bull or a bear, you very often finds that you would get shot out with a spike down or a spike up and I would appreciate knowing how to avoid this problem because very often the move then continues where you would foresee it to go and the result is that you have missed that rise or fall.

In order to avoid this do you only take inside bars that are near a cycle low or cycle high, or better still do you do something else like adjust the stop loss somehow.

Thanks
Ok, the dotted lines are "period separators" and this is an option which can be chosen in metatrader, but they are purely for visualization and have notinh to do with DIBS so don't worry about them. If you press F8 when looking at a chart, and look under the tab "Common", you can tick the box "Show period separators" and you'll have them too.

Regarding your sesond question I'll refer you to PC's posts so I suggest you start reading them. Or maybe someone else will give you that answer...
  • #4,077
  • Jul 24, 2008 5:53pm Jul 24, 2008 5:53pm
Quoting wolf69
Now and later:
Thanks for the reply, the chart I am referring to is in the first post of this thread and the first chart - GBPUSD - you will see there are several short dotted horizontal lines - I would like to know what they indicate please.
...the short horizontal lines indicate the daily open price (for this strat).
  • #4,078
  • Jul 24, 2008 6:10pm Jul 24, 2008 6:10pm
Quoting ChowClown
...the short horizontal lines indicate the daily open price (for this strat).
Hehehe my bad, I knew I should be in bed so I could be up early and fresh... Thanx for clearing that one out! Good night!
  • #4,079
  • Jul 24, 2008 6:12pm Jul 24, 2008 6:12pm
Quoting NowAndLater
Hehehe my bad, I knew I should be in bed so I could be up early and fresh... Thanx for clearing that one out! Good night!
...me too. Night.
  • #4,080
  • Jul 24, 2008 6:20pm Jul 24, 2008 6:20pm
Hi, I want to Trade Every Single Moment I am in front of my CPU. I have recently discovered that DIBS will not allow me to do that and even worse, occasionally it does but the Trade turns out wrong.

I really like this system but actually want one that doesn't waste my time with losers. Please, {math or MT4 guru} modifiy this system so it Works.

Harsh & overboard but I see this sentiment creeping in.
Until you can read the Market {if such a thing is even possible} You will have Trades that Lose your Money.

When you can Read the Market, you may even have a backup plan that shifts to Trade the New Market condition.

"Hey; Mr. Beckham, Tell me how you do that Bendy thing cause I wanna be in the Top 5% on the Globe."

If you think Becks Bendy was what put him in the top 5%, that explains why you think "Mastering" one method is all you need.

Trading is a Way of Life and if you are not willing to commit to it, It will commit you.

Reality Check Out:
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