The DIBS Method... No Free Lunch continues

....test finished.

Have entered a couple nice 4 hour inside bars this week

Looking to take my free trade in the green area.

Test the 210.20 area. When she's moving get out of her way.

Very nice Dale. Very Nice.

Free trading now. 1st half 83 pips.

Good holding on there, people learn from this one!

Thanks NAL.

This is where the practice comes into play and the importance of the S/R levels. Price was moving pretty fast and strong, not slow and choppy. So I was letting it go and hanging on. Also, no obvious S/R levels was in the way to slow it down.

Hi jarroo

Are you using a fixed percentage risk of your account for each trade (say 1% or 2%), or are you trading a fixed number of lots per trade...say 1 big lot (US$100k), for example?

Cheers, Motu

wow i missed a really good trade....oh well i have tomorrow night...nicely done guys.....

Fixed percentage of 2% or 3%.

Hi All

I guess I'm lucky...it's currently 7.36pm down here in New Zealand, on Tuesday....

Anyone functioning on coffee and no sleep here?

Cheers, Motu

Jarro I have noticed sometimes you guys look at more then 1 timeframe for inside bars....what time frames are you using to pull the trigger?

not when u wake up at 2pm

DIBS method is on the hourly, but sometimes in a fast moving (trending) market I may go to the 30 min chart.

Also what currencies do you feel like this system work best for?
And besides support and resistance levels do you use anything else with it?

It seems to work pretty well with all the majors and yen crosses. I haven't really looked at other pairs.

Higher time frame influences of Price Action, Trendlines, S/R levels, etc., play a role as we become more familar with the method.

Here is a entry script that calculates lot size based off one percent and inside bar size.

Use at your own risk.

Dale

Just wanted to show quick how I use s/r, look at the s/r level of 167.94:
At point 1 price got to this level and shot back up a long way. This tells me that this level is going to act as s/r area. Looking back historically I can see that this level is an s/r area as well.
At point 2 price went through the support and came back up to retest it before continuing down. Now the support is acting as a resistance. This is a common characteristic for a break of a s/r level
At point 3 price tried to break through this level but it shot down again as there wasn't enough momentum. A few hours later price broke the resistance and retested it at 4, making the old resistance a support (look at M15 chart).
Today there was a test of the of this support again at 5 (H1 chart) and this was the perfect DIBS, this is as good as an entry can get with DIBS imo. It was right of a heavy s/r area so a breakout from the IB would be a breakout from the support level. Remember how DIBS gives us a low risk - high reward opportunity when used at the right times.
Now look at the 167.63 level. This has some historical meaning as well. Do you see how it acts as support and resistance and how when it's holding as resistance (between 2 and 3) its rejecting the price. If I would have been in the DIBS trade this morning this level would have been my first concern and if you look at the M5 charts you can see that price did stop here but it didn't shoot away from it and when price broke that level it went on to test the low of yesterday which Jarroo had pointed out as well. So if you took the DIBS watch the price action at these levels. You can see that the first level was broken pretty easy, but the second level was rejected so that's when you would have taken the first half, as Jarroo so masterly did because he was watching the speed of the move. If price keeps pushing against a s/r level then there's a fair chance that it might be broken as was the case with the 167.63 level today, but when price rejects a level as was the case when price was testing yesterday's low then you know that that level is holding (for now).
I have marked these levels by a line, that's just how I do it. That doesn't mean that this is the only price that matters. Instead this means that around this level (+/- some pips) is a s/r level, just as you can see in Jarroo's charts where he has marked out areas instead.

how do we use the script. love 1% risk as its my kinda apprive risk tolerance on any given trade.

thanks