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4H 5EMA System

  • #1,581
  • Nov 25, 2008 7:22am Nov 25, 2008 7:22am
Quoting tonirai
That's probably the most difficult concept to learn in the rules... the meaning of reverse, reversal, and in which situations they apply.

When we say "reverse" a trade, it reffers to when you're long and have a signal to go short (or the opposite);

The "reversal" bar is the one that follows the setup bar and has triggered the new order;
A "failed reversal" bar is the one that triggered the new order, but then got stopped, leaving you out of trades;
A bar after a setup bar that didn't activate the reverse trade is not a proper reversal...
Exactly,
I think the most confusing aspect for people who first read these rules is the fact the reversal bar is called "the reversal bar" and then we have the "reversal trade" which sometimes has nothing to do with a reversal bar haha But naturally because it is called a reversal trade people think it's the one triggered by the reversal bar, well that is how I was getting confused at first.

If what we know now as the reversal bar was called a totally different name from the start like "The trigger bar" or something like that I bet people would understand much more clearly from the get go-
But in the end in a week or two you get it and it wouldn't be wise to change it now we all know it as a reversal bar!
Thanks to sterling and others I believe I have the system completely down in my brain now, I've temporarily moved away from the Alpari demo and now trying on another broker which is 1 hour ahead of Alpari, just to test as I'll most likely go live with it on that.
Still keeping my eye on an Alpari demo though just to keep check on where everyone one is up to.
  • #1,582
  • Nov 25, 2008 7:45am Nov 25, 2008 7:45am
For those interested in the 8 hour TF we are now short from 1.5020, being 5 pips below the low of the proper Setup bar (arrowed). The Long position held from yesterday's open closed for +60 pips. Even as I type price is roaring to the SL which is 1.5196 on the 8 hour.
Attached Image
If there is ever any doubt then there is no doubt.
  • #1,583
  • Nov 25, 2008 7:47am Nov 25, 2008 7:47am
Got stopped out.... failed reversal bar.
  • #1,584
  • Nov 25, 2008 7:47am Nov 25, 2008 7:47am
SL on the Short trade hit. Trade closed for -176 pips.
If there is ever any doubt then there is no doubt.
  • #1,585
  • Nov 25, 2008 7:48am Nov 25, 2008 7:48am
Well, that was a fast "in and out"

We are flat again - stopped at 1.5169.
(This is called a failed reversal bar.)
  • #1,586
  • Nov 25, 2008 7:57am Nov 25, 2008 7:57am
Waiting for a new setup bar
Regards
  • #1,587
  • Nov 25, 2008 8:04am Nov 25, 2008 8:04am
Hi guys,

I was short at A, then got stopped out in the current bar and my reverse trade to go in the opposite direction was triggered. But since this current bar stopped has not closed. Where should put my stop? or do I have to wait for this bar to close before I can put my stop? Would appreciate if anyone can help me, thanks!
Attached Image (click to enlarge)
Click to Enlarge Name: tue.gif Size: 18 KB
  • #1,588
  • Nov 25, 2008 8:07am Nov 25, 2008 8:07am
Quoting piptrees
Hi guys,

I was short at A, then got stopped out in the current bar and my reverse trade to go in the opposite direction was triggered. But since this current bar stopped has not closed. Where should put my stop? or do I have to wait for this bar to close before I can put my stop? Would appreciate if anyone can help me, thanks!
There was no order to reverse, we have to wait for the reversal bar to close
Regards
  • #1,589
  • Nov 25, 2008 8:12am Nov 25, 2008 8:12am
Quoting howard
There was no order to reverse, we have to wait for the reversal bar to close
After the reversal bar closed(at the next bar after A), we are supposed to put in a trade to go opposite direction isn't? So this is the buy stop that triggered this opposite trade. Kindly clarify, anyone. Thanks Howard for your reply.
  • #1,590
  • Nov 25, 2008 8:16am Nov 25, 2008 8:16am
Quoting piptrees
After the reversal bar closed(at the next bar after A), we are supposed to put in a trade to go opposite direction isn't? So this is the buy stop that triggered this opposite trade. Kindly clarify, anyone. Thanks Howard for your reply.
We were short and we got stopped out, now we are flat waiting for the next setup when the current bar (which was the reversal bar) closes
Regards
  • #1,591
  • Nov 25, 2008 8:20am Nov 25, 2008 8:20am
Quoting piptrees
Hi guys,

I was short at A, then got stopped out in the current bar and my reverse trade to go in the opposite direction was triggered. But since this current bar stopped has not closed. Where should put my stop? or do I have to wait for this bar to close before I can put my stop? Would appreciate if anyone can help me, thanks!
In your chart (Interbank), you had that reverse order placed since the reversal bar that triggered the short closed, right (the bar after A)?

So that buy order was placed with the low of the reversal bar as a stoploss;
At the close of each next bar, since they all made a lower low, that stoploss on the buy stop should have been moved to their low-5;

At the present moment, since you are only supposed to look at the charts every 4H, your stop on your present long should be at the last bar's low-5;

When your present bar will close, since it already made a lower low, your stoploss should be moved to it.

That is, of course, because you don't have a setup bar for now. When you'll have... you know what to do.
  • #1,592
  • Nov 25, 2008 8:22am Nov 25, 2008 8:22am
Guys,
piptrees' chart is different, in his case he is in a trade.
  • #1,593
  • Nov 25, 2008 8:34am Nov 25, 2008 8:34am
Quoting tonirai
In your chart (Interbank), you had that reverse order placed since the reversal bar that triggered the short closed, right (the bar after A)?

So that buy order was placed with the low of the reversal bar as a stoploss;
At the close of each next bar, since they all made a lower low, that stoploss on the buy stop should have been moved to their low-5;

At the present moment, since you are only supposed to look at the charts every 4H, your stop on your present long should be at the last bar's low-5;

When your present bar will close, since it already...
Hey Toni,

Thanks for understanding my situation. I was toggling between yours and Howard's replies and my platform screen! Thanks for your help. Anyway I got out at about 1.5350 at a gain of about 100+ pips cos the stocs looked weak and I am not sure where this freaky bar is headed.
  • #1,594
  • Nov 25, 2008 8:42am Nov 25, 2008 8:42am
Quoting tonirai
In your chart (Interbank), you had that reverse order placed since the reversal bar that triggered the short closed, right (the bar after A)?

So that buy order was placed with the low of the reversal bar as a stoploss;
At the close of each next bar, since they all made a lower low, that stoploss on the buy stop should have been moved to their low-5;

At the present moment, since you are only supposed to look at the charts every 4H, your stop on your present long should be at the last bar's low-5;

When your present bar will close, since it already...
Hey Toni,

Thanks for understanding my situation. I was toggling between yours and Howard's replies and my platform screen! Thanks for your help. Anyway I got out at about 1.5350 at a gain of about 100+ pips cos the stocs looked weak and I am not sure where this freaky bar is headed.

Also could this present situation(at least the one I am in) put me in an disadvantage if I am not in front of the computer now? I know Sterling meant to design this as a hands free every 4 hourly system. Maybe I'll try to see how things can be improved . But I agree with you Toni that the last bar would have to be my stop for this reverse trade.

But I am curious about why you guys are not in the reverse trade cos I have just downloaded a apari demo account and according to the chart which i have attached, looks like you should be in a reverse trade too? Is this the same one you guys are using? Thanks
Attached Image (click to enlarge)
Click to Enlarge Name: apari.gif Size: 17 KB
  • #1,595
  • Nov 25, 2008 8:50am Nov 25, 2008 8:50am
Quoting piptrees
Hi guys,

I was short at A, then got stopped out in the current bar and my reverse trade to go in the opposite direction was triggered. But since this current bar stopped has not closed. Where should put my stop? or do I have to wait for this bar to close before I can put my stop? Would appreciate if anyone can help me, thanks!
is that situation show when we put revers order , after bar B on ur pic is closed?
as I good understand ur short been closed on B bar , which now ur current bar? am I correct?
good luck
pit
  • #1,596
  • Nov 25, 2008 9:06am Nov 25, 2008 9:06am
It is so interesting to me to watch cable struggle at the R1 level (1.5298), since it's become a support level now since it was broken earlier today. It is trying to break it on the way down, but it doesn't have enough steam, so it is trying back and forth.
  • #1,597
  • Nov 25, 2008 9:31am Nov 25, 2008 9:31am
Quoting stersuhr
I just thought I'd let you guys know im working on a new system. If you understand this system you will get the new system right away. Its a spin off of this one, but will use the 5M chart and specific times. This will allow you to take every trade and not have to be at the computer for hours on end. Basically it puts you in the market when you will have the highest probability for success. Im still working on the way profits are takin and some smaller parts to the system. The main gist of the system is already in place and done just the odds and...
that would be a real blessing for me

stershur thanks very much for helping me in particular and all of us new traders in general.

kos
John 3:16 - From THIS love no power on earth can me sever.
  • #1,598
  • Nov 25, 2008 9:32am Nov 25, 2008 9:32am
Quoting pitpiter
is that situation show when we put revers order , after bar B on ur pic is closed?
as I good understand ur short been closed on B bar , which now ur current bar? am I correct?
good luck
pit
Hi Pit,

I was short at A. I also put in my stop loss order(1.5195) at the same time. Then after the next bar(the reversal bar) closed, I put in the order to go the opposite direction which is at the same price(1.5195) as my stop loss order for the short. So I didnt put in the reverse order at B. I had put in it after the reversal bar closed. Yes you are right, my short got stopped out at B, which also triggered my reverse trade(which is to go the opposite direction from my initial short position. Hope this helps, thanks.
  • #1,599
  • Nov 25, 2008 10:01am Nov 25, 2008 10:01am
Quoting piptrees
Hi Pit,

I was short at A. I also put in my stop loss order(1.5195) at the same time. Then after the next bar(the reversal bar) closed, I put in the order to go the opposite direction which is at the same price(1.5195) as my stop loss order for the short. So I didnt put in the reverse order at B. I had put in it after the reversal bar closed. Yes you are right, my short got stopped out at B, which also triggered my reverse trade(which is to go the opposite direction from my initial short position. Hope this helps, thanks.
thanks so much
now I begin uderstanding something about revers trade in this system
good luck
pit
  • #1,600
  • Nov 25, 2008 10:20am Nov 25, 2008 10:20am
Quoting piptrees
Hi Pit,

I was short at A. I also put in my stop loss order(1.5195) at the same time. Then after the next bar(the reversal bar) closed, I put in the order to go the opposite direction which is at the same price(1.5195) as my stop loss order for the short. So I didnt put in the reverse order at B. I had put in it after the reversal bar closed. Yes you are right, my short got stopped out at B, which also triggered my reverse trade(which is to go the opposite direction from my initial short position. Hope this helps, thanks.
and sorry , one more question
which stoploss u add for ur buystop? or u put them without stoploss and add them after buystop was trigered ?
thanks
pit
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