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  • #5,021
  • Aug 21, 2008 2:28am Aug 21, 2008 2:28am
Quoting jarroo
Great charts tsidki.

The range or size of the IBs are a bit too big for my book. Remember we are looking for a low risk trades. Don't get me wrong, they very well could work out just fine indeed. I like to see ranges between 10 -25 pips. (depending on the pair).

Nice work.

Jim
I agree with you. 50 pips on both pairs is at least 20 pips to much. Does anyone know if it is possible to use custom indicators in oanda? I can see on peters charts that he have all those lines for when a IB has formed. Do you think he have drawn them manually? You see i have never used oanda
  • #5,022
  • Aug 21, 2008 2:29am Aug 21, 2008 2:29am
Quoting ekling
I agree with you. 50 pips on both pairs is at least 20 pips to much. Does anyone know if it is possible to use custom indicators in oanda? I can see on peters charts that he have all those lines for when a IB has formed. Do you think he have drawn them manually? You see i have never used oanda
He draws them manually.
Indicators show the past. Price Action "Indicates" the future.
  • #5,023
  • Aug 21, 2008 2:57am Aug 21, 2008 2:57am
This is for me when DIBS works best: when price is testing a s/r level and you get an IB just off the daily open and it's off the s/r level.

Looking at the H4 chart you can see how this level has been tested as support and resistance, and that signifies the importance of the s/r level. On the H1 chart the s/r level just happened to be the same level as the daily s1 and monthly r1, which is very convenient. And price action is telling me that price wants to go through the s/r level because price is testing it over and over again and the top of the H1 candles are getting lower and lower which means that the rejection from the s/r level is less for each time. The break came and price never looked back.

These trades are the kind of trades that I look for when trading DIBS, these are the ones that have higher probability imo. The IB range was just 9 pips, making the stoploss size 9 + 2 (breakout pips up and down) + 3 (spread) = 14 pips. Because it came of the break of the s/r level the chances for a fast break is bigger and you don't even have to close out half the position at 1:1 but wait for more profits because of the speed of the break.

Can you say risk:reward ratio??
Attached Image(s) (click to enlarge)
Click to Enlarge Name: UJ H1.JPG Size: 137 KB
Click to Enlarge Name: UJ H4.JPG Size: 105 KB
  • #5,024
  • Aug 21, 2008 4:45am Aug 21, 2008 4:45am
Quoting NowAndLater
This is for me when DIBS works best: when price is testing a s/r level and you get an IB just off the daily open and it's off the s/r level.

Looking at the H4 chart you can see how this level has been tested as support and resistance, and that signifies the importance of the s/r level. On the H1 chart the s/r level just happened to be the same level as the daily s1 and monthly r1, which is very convenient. And price action is telling me that price wants to go through the s/r level because price is testing it over and over again and the top of the H1 candles are getting lower and lower which means that the rejection from the s/r level is less for each time. The break came and price never looked back.

These trades are the kind of trades that I look for when trading DIBS, these are the ones that have higher probability imo. The IB range was just 9 pips, making the stoploss size 9 + 2 (breakout pips up and down) + 3 (spread) = 14 pips. Because it came of the break of the s/r level the chances for a fast break is bigger and you don't even have to close out half the position at 1:1 but wait for more profits because of the speed of the break.

Can you say risk:reward ratio??
Yes that was beautiful! I also got on GBPJPY short from breakout from that range it had been trading in all day, but looking at the daily USDJPY chart, is this a potential trend reversal day?

We shall find out!

Pred
  • #5,025
  • Edited 5:14am Aug 21, 2008 4:46am | Edited 5:14am
Quoting NowAndLater
This is for me when DIBS works best: when price is testing a s/r level and you get an IB just off the daily open and it's off the s/r level.

Looking at the H4 chart you can see how this level has been tested as support and resistance, and that signifies the importance of the s/r level. On the H1 chart the s/r level just happened to be the same level as the daily s1 and monthly r1, which is very convenient. And price action is telling me that price wants to go through the s/r level because price is testing it over and over again and the top of the H1 candles are getting lower and lower which means that the rejection from the s/r level is less for each time. The break came and price never looked back.

These trades are the kind of trades that I look for when trading DIBS, these are the ones that have higher probability imo. The IB range was just 9 pips, making the stoploss size 9 + 2 (breakout pips up and down) + 3 (spread) = 14 pips. Because it came of the break of the s/r level the chances for a fast break is bigger and you don't even have to close out half the position at 1:1 but wait for more profits because of the speed of the break.

Can you say risk:reward ratio??
Beautiful NAL. The same with Gpy/Jpy.
And of course I missed them all due to personanl committmitt%$#!!!^&**%%$$%^& . . . . oopps didn't mean to swear. Lost my head there for a minute.
Indicators show the past. Price Action "Indicates" the future.
  • #5,026
  • Aug 21, 2008 5:05am Aug 21, 2008 5:05am
what about this IB Jaroo?
Attached Image (click to enlarge)
Click to Enlarge Name: ScreenHunter_03 Aug. 21 15.03.gif Size: 20 KB
  • #5,027
  • Edited 5:34am Aug 21, 2008 5:18am | Edited 5:34am
UJ add-on on another major support break. The IB came again on the s/r level, 108.61, and price action was very similar to the IB at the daily open, only difference was that the IB was a bigger one - now 24+2+3 = 29 pips. This s/r level is the high of June and was a hard resistance to break all the way to the beginning of August.
Next s/r level, 108.38, (this can also be seen as an s/r area between the two white s/r levels instead) was the low of 13/Aug which also coinsides with some from the last few days in July and in the beginning of August. So the IB was taken and BE was taken of before that level to make sure of getting the BE because of the size of the IB, so BE taken with 2/3 of the position at 2:1. Besides the size of the IB, UJ had already moved more than its ADR so only half the normal position size for this DIBS.
Managing the first trade: have closed 85% of the position and letting the rest ride at the intial sl for now.
Managing the secong trade: if I see a slight reversal, most probably around (107.50-)108.00, I'll close out more of the second trade and leave 10% at its initial sl for now.
If this is a reversal or not, who knows, but for now the sl is on the right side of the new resistance (old support) of 108.61. JPY has been the strongest currency against the USD during the past USD movement.

EDIT: closed part of the free ride of the 2nd trade and left 10% running for now.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: UJ.JPG Size: 139 KB
Click to Enlarge Name: UJ D1.JPG Size: 125 KB
  • #5,028
  • Aug 21, 2008 5:19am Aug 21, 2008 5:19am
Quoting tsidki
what about this IB Jaroo?
Looks good tsidki. I like that Res. at 1.8662. but again the range of the IB is a bit to big for me.

Now watch it run to the moon.
Indicators show the past. Price Action "Indicates" the future.
  • #5,029
  • Aug 21, 2008 5:45am Aug 21, 2008 5:45am
Hi guys,

A quick illustration of a wrong decision (NAL covered the right one )

With the second (last) IB, I interpreted mini-consolidation and inability of the price to break through the R level as trend reversal (weekly was up too). So - contrary to PC's rule (IB was below daily open and below 6am GMT open) - I went long ("It cannot go any lower now, and should reverse/retrace). The result: 15 pip loss instead of 40-50 pips profit (again, see NAL post).

Better take a loss when playing it right, than when trying to outsmart the market...
Attached Image (click to enlarge)
Click to Enlarge Name: usdjpy ib 21 august 2008.jpg Size: 216 KB
One Chart is Worth Ten Thousand Words.
  • #5,030
  • Aug 21, 2008 5:53am Aug 21, 2008 5:53am
Quoting Forex007
Hi guys,

A quick illustration of a wrong decision (NAL covered the right one )

With the second (last) IB, I interpreted mini-consolidation and inability of the price to break through the R level as trend reversal (weekly was up too). So - contrary to PC's rule (IB was below daily open and below 6am GMT open) - I went long ("It cannot go any lower now, and should reverse/retrace). The result: 15 pip loss instead of 40-50 pips profit (again, see NAL post).

Better be wrong when playing it right, then trying to outsmart the market...
The reason I didn't take the first IB you are talking about is first of all it was a bit too big, and it had just retraced from the s/r level, and I wasn't to confident it was going to break it on the first attempt considering the ADR was overrun as well. Then price tried to break it again it looked like it was going to go, so played it with a smaller position size instead.
  • #5,031
  • Aug 21, 2008 6:09am Aug 21, 2008 6:09am
Quoting jarroo
Looks good tsidki. I like that Res. at 1.8662. but again the range of the IB is a bit to big for me.

Now watch it run to the moon.
I knew it. Nice tsidk. ( if you took it.)
Indicators show the past. Price Action "Indicates" the future.
  • #5,032
  • Aug 21, 2008 6:13am Aug 21, 2008 6:13am
Quoting NowAndLater
The reason I didn't take the first IB you are talking about is first of all it was a bit too big, and it had just retraced from the s/r level, and I wasn't to confident it was going to break it on the first attempt considering the ADR was overrun as well. Then price tried to break it again it looked like it was going to go, so played it with a smaller position size instead.
It's the second IB that I screwed up with (I ignored the 1st one for the same reason as you).
One Chart is Worth Ten Thousand Words.
  • #5,033
  • Aug 21, 2008 6:28am Aug 21, 2008 6:28am
I wonder if you guys can help me out a little??
I am working on my entry , SL, and TP points, and I keep mixing things up, like do I add spread to the SL, or to the TP? Does it matter the direction? I do remember seeing a post in this thread that explained the points like:
if 1.08650, 1.8680 are the low and high of an IB, and we wish to go short the Entry, SL, and TP are as follows


Entry is 1.8649 (low -1 pip)
SL is 1.8684 (high + spread)
1:1 TP is 1.8615 (low -1 -IBsize -spread)
something like that , and I am sure the math was different if I was going long.


My problem is that I sometimes forget to take the spread and the 1 pip filter into account, so if the trade reaches 1:1, then back to the SL point, I still lose instead of breaking even. I think I remember seeing it in this thread, but with over 5000 posts, it is a needle in a haystack adventure trying to find it. Does anybody remember where it is, or if you wrote it, can you point me to the post??
Thanks
Rusty
  • #5,034
  • Aug 21, 2008 6:43am Aug 21, 2008 6:43am
Quoting jarroo
I knew it. Nice tsidk. ( if you took it.)
lol I did
  • #5,035
  • Aug 21, 2008 6:46am Aug 21, 2008 6:46am
Quoting rusty105
I wonder if you guys can help me out a little??
I am working on my entry , SL, and TP points, and I keep mixing things up, like do I add spread to the SL, or to the TP? Does it matter the direction? I do remember seeing a post in this thread that explained the points like:
if 1.08650, 1.8680 are the low and high of an IB, and we wish to go short the Entry, SL, and TP are as follows


Entry is 1.8649 (low -1 pip)
SL is 1.8684 (high + spread)
1:1 TP is 1.8615 (low -1 -IBsize -spread)
something like that , and I am sure the math was different if I was going long.
Rusty
For sellstop
Entry: 1.8649
SL: 1.8684 (3 pips spread), gives a sl size of 35 pips, the reason you are adding the spread here is that you want take the IB+1pip price and that is given by the sell price on the chart.
1:1 is 1.8649 - (1.8684 - 1.8649) = 1.8649 - 0.0035 = 1.8614. Here you don't deduct spread because you are putting in the buy price. If you want to see on the chart (which shows the sell price) where the 1:1 is then you'll have to deduct the spread from that. But when you are setting up the sellstop order don't deduct the spread to the takeprofit price, because you are selling at 1.8649 and buying at 1.8614 --> that gives a 35 pips profit which is equal to the stoploss size.

For Buystop
Entry: 1.8684 again you add the spread because you are buying and the chart is showing the sellprice
SL: 1.8649 don't deduct the spread, because you are putting in the sellprice which is what the chart gives you
TP: 1.8684 + 0.0035 = 1.8719, again don't deduct the spread for the same reason as the for the SL above

Hope this helps
  • #5,036
  • Aug 21, 2008 6:51am Aug 21, 2008 6:51am
Quoting NowAndLater
For sellstop
Entry: 1.8649
SL: 1.8684 (3 pips spread), gives a sl size of 35 pips, the reason you are adding the spread here is that you want take the IB+1pip price and that is given by the sell price on the chart.
1:1 is 1.8649 - (1.8684 - 1.8649) = 1.8649 - 0.0035 = 1.8614. Here you don't deduct spread because you are putting in the buy price. If you want to see on the chart (which shows the sell price) where the 1:1 is then you'll have to deduct the spread from that. But when you are setting up the sellstop order don't deduct the spread to the takeprofit price, because you are selling at 1.8649 and buying at 1.8614 --> that gives a 35 pips profit which is equal to the stoploss size.

For Buystop
Entry: 1.8684 again you add the spread because you are buying and the chart is showing the sellprice
SL: 1.8649 don't deduct the spread, because you are putting in the sellprice which is what the chart gives you
TP: 1.8684 + 0.0035 = 1.8719, again don't deduct the spread for the same reason as the for the SL above

Hope this helps

THANKS A MILLION !!!

Rusty
  • #5,037
  • Aug 21, 2008 6:55am Aug 21, 2008 6:55am
Quoting tsidki
lol I did
Indicators show the past. Price Action "Indicates" the future.
  • #5,038
  • Aug 21, 2008 7:00am Aug 21, 2008 7:00am
Quoting tsidki
lol I did

  • #5,039
  • Aug 21, 2008 10:40am Aug 21, 2008 10:40am
Quoting naomi
hi big jaroo,
im also still in since monday (gu)...my rule for dibs counts cos i saw monthly gu bleeding. jaroo can pls give me the blue incator that crosses your chart it looks more like minor and major support resistance lines. please can i taste that indi.....happy hang onDIBS
No way one is a PA with that English/grammar...
One Chart is Worth Ten Thousand Words.
  • #5,040
  • Aug 21, 2008 6:34pm Aug 21, 2008 6:34pm
Quoting jarroo
The Open of the Day at 0600 GMT was 1.4660. The IB was at 0700 GMT. Price broke the top of the IB at 1.4665.

Hope this helps.
Hi Jim,
Thank you for all the work you have done to keep this thread going, it's amazing, also the teamwork that is displayed here is impressive also, thanks for everything. Your chart looks nice, are the blue and purple lines that border the IB entered manually? If they are, how can you adjust the length across the chart, thanks for your patience.

Jim
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