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4H 5EMA System

  • #581
  • Oct 28, 2008 12:36am Oct 28, 2008 12:36am
Quoting viperzz
Why do we have a stop loss set at 1.5711 on the pending sell stop? Is that because 1.5711 is the most recent high if it were to trigger now?

That is right. The set up bar for this long that we are in the high of that bar is 1.5703 so we would set the stop 8 pips above that bar.
  • #582
  • Oct 28, 2008 12:51am Oct 28, 2008 12:51am
Quoting Hiranya
That is right. The set up bar for this long that we are in the high of that bar is 1.5703 so we would set the stop 8 pips above that bar.

Cool, I usually have already answered my question but I feel much better if I confirm it with you guys to be sure. Thanks again.
  • #583
  • Oct 28, 2008 12:54am Oct 28, 2008 12:54am
The trade is now in profit and lookin good. The current pip count for the month is +967 so thats pretty good for the month, hopefully we can get that up around 1200-1500.

-Sterling
Founder of Day Trading Forex Live
  • #584
  • Oct 28, 2008 1:27am Oct 28, 2008 1:27am
Sterling you're long now?

From last nite, the next trade(sell) was -110 pips and currently buy with +90
  • #585
  • Oct 28, 2008 1:29am Oct 28, 2008 1:29am
Quoting AlexL
Sterling you're long now?

From last nite, the next trade(sell) was -110 pips and currently buy with +90
I think you use different charts than me....there was no short trade only a long. I posted a chart for yesterday above take a look at that.

-Sterling
Founder of Day Trading Forex Live
  • #586
  • Oct 28, 2008 1:34am Oct 28, 2008 1:34am
My candles start from 0,4,8,12,16,20 . This is my chart (4H).

Quoting stersuhr
I think you use different charts than me....there was no short trade only a long. I posted a chart for yesterday above take a look at that.

-Sterling
Attached Image (click to enlarge)
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  • #587
  • Oct 28, 2008 1:41am Oct 28, 2008 1:41am
Quoting AlexL
My candles start from 0,4,8,12,16,20 . This is my chart (4H).
Did your short trade break the 5 EMA by atleast 5 pips? If so it was a valid short. As you can see from my charts there was no short setup only the long from monday morning. You traded your charts correctly tho

-Sterling
Founder of Day Trading Forex Live
  • #588
  • Oct 28, 2008 1:53am Oct 28, 2008 1:53am
Ies it did. It was a valid short.
  • #589
  • Oct 28, 2008 2:40am Oct 28, 2008 2:40am
Sterling,

Thanks for sharing. Have now also joined this thread and will test it.

Your explanation in your 1st post is clear, but for the entry.

After reading the tread I understand it as follow:

Once a long entry setup bar has been identified, a pending buy order is placed (on the start of the next 4H bar) 5 pips above the setupbar's high, with a stop at 5 pips below the low. So the "reversal bar" is your entry bar.

Something else that confuses me a little: as per your #1 post -

a proper reversal bar has a lower high for a short or a higher low for a long...

so, although you will enter on the reversal bar, the lower high or higher low is just additional confirmation that you entered in the right direction?...cause you will only see if indeed it had a higher low or lower high once the reversal bar has finished it's 4H.
  • #590
  • Oct 28, 2008 2:47am Oct 28, 2008 2:47am
Quoting Jnita
Sterling,

Thanks for sharing. Have now also joined this thread and will test it.

Your explanation in your 1st post is clear, but for the entry.

After reading the tread I understand it as follow:

Once a long entry setup bar has been identified, a pending buy order is placed (on the start of the next 4H bar) 5 pips above the setupbar's high, with a stop at 5 pips below the low. So the \"reversal bar\" is your entry bar.

Something else that confuses me a little: as per your #1 post -

a proper reversal bar has a lower high for a short or a higher low for a long...

so, although you will enter on the reversal bar, the lower high or higher low is just additional confirmation that you entered in the right direction?...cause you will only see if indeed it had a higher low or lower high once the reversal bar has finished it's 4H.
Well if it makes a lower low in the case of a reversal bar then that bar becomes the new setup bar. And if it makes a higher high in the case of a short setup, then the new bar that made the higher high is now the setup bar to go short.

-Sterling
Founder of Day Trading Forex Live
  • #591
  • Oct 28, 2008 2:53am Oct 28, 2008 2:53am
Quoting stersuhr
Well if it makes a lower low in the case of a reversal bar then that bar becomes the new setup bar. And if it makes a higher high in the case of a short setup, then the new bar that made the higher high is now the setup bar to go short.

-Sterling
OK, thanks.
  • #592
  • Oct 28, 2008 3:04am Oct 28, 2008 3:04am
Trade #22 was stopped out for -167 pips and we are currently short from 1.5498 with a stop of 1.5758.

-Sterling
Founder of Day Trading Forex Live
  • #593
  • Oct 28, 2008 3:09am Oct 28, 2008 3:09am
Hi Sterling,

i have a question, im just wondering for example your buy has been hit and the next bar finishes but does not qualify for a setup bar does that mean we do not move our stop loss and reversal up? do we keep it at the orginal reversal bar until a vaild setup is made and then we move it up? say the next bar does not stop you out but has hits both EMA (which is not a vaild setup) so we keep our stop and reversal the same?. thanks
  • #594
  • Oct 28, 2008 3:11am Oct 28, 2008 3:11am
Quoting kien27
Hi Sterling,

i have a question, im just wondering for example your buy has been hit and the next bar finishes but does not qualify for a setup bar does that mean we do not move our stop loss and reversal up? do we keep it at the orginal reversal bar until a vaild setup is made and then we move it up? say the next bar does not stop you out but has hits both EMA (which is not a vaild setup) so we keep our stop and reversal the same?. thanks
You got it. Everything would reamin the same until a setup bar is given then you would move the stop and the reversal trade. This happens often...most of the time the stop stays in the same place for atleast 2 bars. Lately we have seen more whipsaws but im sure every system is seeing the same thing in this market.

-Sterling
Founder of Day Trading Forex Live
  • #595
  • Oct 28, 2008 4:29am Oct 28, 2008 4:29am
Are you keeping a tally stersuhr?

I'd be interested to know your progress without reading the whole thread over.

Cheers,

VB,
  • #596
  • Oct 28, 2008 7:01am Oct 28, 2008 7:01am
Quoting stersuhr
Trade #22 was stopped out for -167 pips and we are currently short from 1.5498 with a stop of 1.5758.

-Sterling
now as per the above quoted trade, we are about -220 pips on now and the next candle is almost at the stop what is the next thing to do. should we still remain in short cos the 5EMA for short is been broken.

and if eventually we are stopped out should we re-entre short position again since the last candle still qualifies as set up candle.

let those who know tell those who do not thats what makes the world go round

thanks
John 3:16 - From THIS love no power on earth can me sever.
  • #597
  • Oct 28, 2008 7:32am Oct 28, 2008 7:32am
I'm thinking if it hits that stop loss, it should be reversed into a buy...so a buy stop there should be there as well, just going by the rule that you always place a reverse order with your stop after the bar that triggered the trade( reverse) closes which is has done. I have put a buy stop there at the same as the SL, of course I could be wrong. But if we don't put a buy there the price could hit the SL and just keep going up and up and up and we won't be in it?
  • #598
  • Oct 28, 2008 7:33am Oct 28, 2008 7:33am
hey Kos,

from my knowledge once stopped out, we will wait until the 4hr has ended and if fits the requirement of a setup bar, we place our short trade less 5 pips under it.
  • #599
  • Edited 8:02am Oct 28, 2008 7:38am | Edited 8:02am
Hi Viper and Sterling,

i trade from a different time frame, thus the bars are slightly different, but when we entered the short trade the reverse bar although did not hit our stop it didn't hit the lower 5EMA line etheir, therefore not qualifying as a setup bar for the long side. do we still place the reversal buy according to the rules? once the bar has ended. please confirm.
  • #600
  • Edited 9:00am Oct 28, 2008 7:44am | Edited 9:00am
Quoting kien27
Hi Viper and Sterling,

i trade from a different time frame, thus the bars are slightly different, but when we entered short trade the reverse bar although did not hit our stop, nor the lower 5EMA line do we still place the reversal buy according to the rules once the bar had ended,thus not qualifying to be a set up bar for the long side. please confirm.
I have put a buy stop there because the previous bar that entered the sell closed without taking out the loss as well in same bar, if that same bar that entered did take the loss we would just take the loss and then wait for next setup up. Sterling has said before that an opposite order has to be placed along same stop for every trade when the reversal has closed.
That is just my reasoning, but I'm quite new to it and may be wrong or misunderstanding.


We do need Sterling to confirm on this one.....
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