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4H 5EMA System

  • #1,261
  • Nov 18, 2008 4:03pm Nov 18, 2008 4:03pm
We're approaching resistance on a daily timeframe after which, if it doesn't break through, we could get a fall to the weekly channel support; if it does break through then we may have a few more days of this till it gets to the weekly resistance after which we could get a really good fall...of course it could break upwards!
You don't have to be right, just don't be too wrong
  • #1,262
  • Nov 18, 2008 5:20pm Nov 18, 2008 5:20pm
Probably my last update for tonight (will go to sleep soon):

The bar closed minutes ago, so we have now changed the stoploss and buy stop to 1.4988;
The buy stop, if triggered, had its stoploss moved to 1.4894.

So... pretty tight!
Next days, I will be out almost all of the time.

Regards.
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  • #1,263
  • Nov 18, 2008 5:37pm Nov 18, 2008 5:37pm
Quoting tonirai
Probably my last update for tonight (will go to sleep soon):

The bar closed minutes ago, so we have now changed the stoploss and buy stop to 1.4988;
The buy stop, if triggered, had its stoploss moved to 1.4894.

So... pretty tight!
Next days, I will be out almost all of the time.

Regards.
ToniRai,
Where do you live that you go to sleep so early? Here in Phoenix it's only 4:30 or so. Yes we have been in a tight range that costs the system, but we will break out. The long the market goes sideways, the more monentum it has!
Also, on the other time frame, where the candle closes at 7pm EST (20 min from now), the bar touches both emas. Do we leave our stop/reverse at 1.5098?
  • #1,264
  • Edited 5:53pm Nov 18, 2008 5:50pm | Edited 5:53pm
Quoting alllivemind
ToniRai,
Where do you live that you go to sleep so early? Here in Phoenix it's only 4:30 or so. Yes we have been in a tight range that costs the system, but we will break out. The long the market goes sideways, the more monentum it has!
Also, on the other time frame, where the candle closes at 7pm EST (20 min from now), the bar touches both emas. Do we leave our stop/reverse at 1.5098?
Yes - if bar touches both EMAs it is ignored....but where does your closing bar go up to? My closing bar is well clear of the upper EMA?
You don't have to be right, just don't be too wrong
  • #1,265
  • Edited 6:16pm Nov 18, 2008 6:00pm | Edited 6:16pm
Quoting alllivemind
ToniRai,
Where do you live that you go to sleep so early? Here in Phoenix it's only 4:30 or so.
Well, I can be up/sleeping at opposite hours, as I work by rotating shifts (night or day, weekends included), which change every 4 days or so, at a 24/7 working factory, as a technical engineer.

But I'm in Europe, in Portugal, at GMT+0 (it's midnight here).
I will get up at 5:40!

Quoting alllivemind
Also, on the other time frame, where the candle closes at 7pm EST (20 min from now), the bar touches both emas. Do we leave our stop/reverse at 1.5098?
You leave where it was, if that bar doesn't qualify for a setup bar.

See you all tomorrow.
Regards.
  • #1,266
  • Nov 18, 2008 6:00pm Nov 18, 2008 6:00pm
Quoting El Dee
Yes - if bar touches both EMAs it is ignored....but where does your closing bar go up to? My closing bar is well clear of the upper EMA?
You are right ElDee, I was looking at the previous bar, and now it's about this one closing right now. Buy stop reverse is 1.4988
  • #1,267
  • Nov 18, 2008 7:10pm Nov 18, 2008 7:10pm
Quoting stersuhr
The bar that triggered the buy stop and stopped us out of the long trade was also a setup bar itself. So what do we do when we have a setup bar and it closes? We move the trade in this case to 5 pips below it.

EL Dee
I dont think the rules need to be changed to say this. This was pretty standard for me. But if many are confused with this let me know. I dont even know how to re word it for this, its a basic rule nothing more. I donno let me know what you guys think.

-Sterling
Hi Sterling,
I think you could possibly enter this into the rules to make it really clear for those unsure. If you think appropriate.
See extra I put in RED at the end.

3.) Lets say you got a buy signal and price went 80 pips in your favor and then went against you and stopped you out, at which point you reversed the trade according to the rules. So where would you put your stop? Your stop would be placed 5 pips above the high from when you got in the trade. If you get stopped out of your reversal trade you do not put another reversal trade in the market. Refer to post #485 for a example and a chart explaining it. To put it another way im going to quote viperzz ,"Your stoploss for the reversal order should be placed 5 pips above the high of the initial reversal bar that triggered the buy trade once closed, as new bars are formed from then on and if with a higher high, the reversal order stoploss should then be moved above the most recent candle with highest high until proper setup bar is formed in the opposite direction." *Proper new setup bar could be immediate as the bar that has triggered the reversal order itself, once closed and if meeting original setup rules.
  • #1,268
  • Nov 18, 2008 7:11pm Nov 18, 2008 7:11pm
Quoting viperzz
Hi Sterling,
I think you could possibly enter this into the rules to make it really clear for those unsure. If you think appropriate.
See extra I put in RED at the end.

[font=Arial][size=4]3.) [color=black][font=Arial]Lets say you got a buy signal and price went 80 pips in your favor and then went against you and stopped you out, at which point you reversed the trade according to the rules. So where would you put your stop? Your stop would be placed 5 pips above the high from when you...

Will do.

-Sterling
Founder of Day Trading Forex Live
  • #1,269
  • Edited 7:42pm Nov 18, 2008 7:28pm | Edited 7:42pm
Hi Sterling,

Congrats on a great thread and all your efforts thus far. I have been following from the start and am also demo'ing on the 8 hour timeframe. As you can see, I don't post much...............but I do have a suggestion regarding rule definitions.

Rule # 2 - A proper Reversal bar should have a higher low for a long or a lower high for short.

My suggestion is that this rule be amended to read "A proper Reversal bar must have a higher low and a higher high for longs, or a lower high and lower low (than the Setup bar) for shorts."

I mention this because proper Reversal bars are so important to your system, especially when placing reversal stop orders. As an example, lets say we are Long the market and a Setup bar to possibly go Short closes. At this point we would move our SL for our Long position to 5 pips below the low of the new Setup bar and also place a Sell stop at the same price as our (Long) SL.
We dont know at this point whether price will continue on and post a higher high (and therefore a new Setup bar), or whether it will form a "proper" Reversal bar or a "failed" Reversal bar. If price posts a "lower high" a reversal bar is formed (as per Rule # 2), however, should'nt price also post a "lower low" for a "proper" Reversal bar to form otherwise it will be a "failed" Reversal bar.

If I understand your system correctly, if a "failed" Reversal bar forms then the status quo remains and a Buy stop is not placed as we are in effect still Long, however, if a "proper" Reversal bar forms (break of the Setup bar low by 5 pips) then 1. Our existing Long position closes, 2. Our Sell stop is triggered and we are now Short, 3. We place a Buy stop order at 5 pips plus spread above the high of the Setup bar, which is also our SL for the current Short at the close of the proper Reversal bar.

I know this may sound very obvious to regular followers of this thread and I dont mean to sound pedantic. I am just trying to look at the rules on page 1 from the perspective of newcomers. I visit the first page of thread quite regularly to review the rules and thought this might help.

Again, many thanks for your efforts.


Kristo
If there is ever any doubt then there is no doubt.
  • #1,270
  • Nov 18, 2008 7:32pm Nov 18, 2008 7:32pm
Hi Sterling,
Hoping you doing well in trade. Could you please clarify, the instruction of the system on the first page has been modify isn't?

The new rule is to take a opposite trade when the stoploss occured..am I right? If yes, what are other latest modification.
  • #1,271
  • Nov 18, 2008 7:42pm Nov 18, 2008 7:42pm
Quoting forex888
Hi Sterling,
Hoping you doing well in trade. Could you please clarify, the instruction of the system on the first page has been modify isn't?

The new rule is to take a opposite trade when the stoploss occured..am I right? If yes, what are other latest modification.
no modifications to the system have been made. Someone just wanted them worded a little diffently. Same meaning and application tho.

-Sterling
Founder of Day Trading Forex Live
  • #1,272
  • Nov 18, 2008 10:35pm Nov 18, 2008 10:35pm
hey, if you guys could update the pip count; I'm comparing a different system and would like to know how it compares

thanks
  • #1,273
  • Nov 18, 2008 10:41pm Nov 18, 2008 10:41pm
Quoting viperzz
Hi Sterling,
I think you could possibly enter this into the rules to make it really clear for those unsure. If you think appropriate.
See extra I put in RED at the end.

[font=Arial][size=4]3.) [color=black][font=Arial]Lets say you got a buy signal and price went 80 pips in your favor and then went against you and stopped you out, at which point you reversed the trade according to the rules. So where would you put your stop? Your stop would be placed 5 pips above the high from when you...
[CODE[/code]

Hi everyone,

I am fortunate to come across this thread which lets me take profits from the market whether its going up or down: No guessing, just follow the well laid out rules! am so convinced by it that I am now trading real money with this system. Thanks a million Sterling for your selfless sharing and all others who have put in so much effort. I do check back very so often here for new posts and hopefully new insights into this wonderful trading method.

My question is : Candle 2 stopped us out of a sell trade. So we reversed the trade and did a buy with the stop at low of candle 1(+5 pips and 3pips spread).Bearing in mind that this is a reverse trade, we should not reverse if we get stopped out. What should we do first:Should we wait to get stopped out by the low of candle 1 first or should we do a sell when there's a valid set up in the opposite direction(in this case will be a sell). My thinking is we should get stopped out first by the reverse stop(low of candle 1) otherwise there is no point in putting this rule about respecting the stop for the reverse trade in the first place. We should just put in the rules that when there's a reverse trade and a valid set up in the opposite direction comes along, take the valid set up.

Or should it be that take which ever comes first: if the stop for the reverse trade comes first, take it. If its the valid set up in the opposite direction of the reverse trade that came first, then take that.Sorry I am a bit confused here and I hope I didnt end up confusing everyone too!

Thanks and best regards
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  • #1,274
  • Nov 18, 2008 11:00pm Nov 18, 2008 11:00pm
Quoting piptrees
[CODE[/code]

Hi everyone,

I am fortunate to come across this thread which lets me take profits from the market whether its going up or down: No guessing, just follow the well laid out rules! am so convinced by it that I am now trading real money with this system. Thanks a million Sterling for your selfless sharing and all others who have put in so much effort. I do check back very so often here for new posts and hopefully new insights into this wonderful trading method.

My question is : Candle 2 stopped us out of a sell trade. So we reversed...
From the way I see it after candle 2 closed you should put a sell stop and stoploss for the buy under it, even though we don't normally put an order in the other direction for a reversal trade, we do on that one as the candle (2) that triggered the reversal buy order is actually a new setup for a sell at the same time. If you did that , it looks like now candle 3 would have triggered the sell and at this moment you would have a stoploss and buystop again over the second last red candle on that chart as it is the most recent setup to go long again.
Hope that helps.
  • #1,275
  • Nov 18, 2008 11:54pm Nov 18, 2008 11:54pm

viperzz, you're absolutely right.
(if the low of candle 3 broke the low of candle 2 by 5 pips; looks like it did).
  • #1,276
  • Nov 19, 2008 12:51am Nov 19, 2008 12:51am
Did the EA perform as per rules? If yes, I dont need to reinvent the wheel.

If not, let me know, today I try read your rules in details and seems the EA creation should be easy. Just need some focus time.
  • #1,277
  • Nov 19, 2008 1:59am Nov 19, 2008 1:59am
Quoting m78
hey, if you guys could update the pip count; I'm comparing a different system and would like to know how it compares

thanks
Ill post a chart that brings us current tomorrow before noon EST. Im just burned out on the market for tonight and need some sleep. An estimate on the pip count is 600 pips give or take 50.

-Sterling
Founder of Day Trading Forex Live
  • #1,278
  • Nov 19, 2008 2:01am Nov 19, 2008 2:01am
Quoting piptrees
[CODE[/code]

Hi everyone,

I am fortunate to come across this thread which lets me take profits from the market whether its going up or down: No guessing, just follow the well laid out rules! am so convinced by it that I am now trading real money with this system. Thanks a million Sterling for your selfless sharing and all others who have put in so much effort. I do check back very so often here for new posts and hopefully new insights into this wonderful trading method.

My question is : Candle 2 stopped us out of a sell trade. So we reversed...
We never got stopped out of the buy per say. The bar that triggered the bar was also a setup bar to go short so when the short got triggered you should also have had the stop on the buy in the same location as the sell stop order.

-Sterling
Founder of Day Trading Forex Live
  • #1,279
  • Nov 19, 2008 2:04am Nov 19, 2008 2:04am
Quoting akukaya
Did the EA perform as per rules? If yes, I dont need to reinvent the wheel.

If not, let me know, today I try read your rules in details and seems the EA creation should be easy. Just need some focus time.
At current we are very close to a EA that is as perfect as a computer will get to trading the rules. It has a few more things that need to be worked on but its close. If you feel like you can make one so we can just do EA to EA then go for it.

-Sterling
Founder of Day Trading Forex Live
  • #1,280
  • Nov 19, 2008 2:05am Nov 19, 2008 2:05am
Im going to bed now so if you have any questions before I do Ill be back in fifteen to answer them, if not talk to you guys tomorrow and ill have a chart that brings us to current as well.

-Sterling
Founder of Day Trading Forex Live
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