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4H 5EMA System

  • #1,941
  • Dec 1, 2008 3:03pm Dec 1, 2008 3:03pm
Quoting LarryR
Hey, I was in the basement drywalling - forgot to reset my SL so didn't get stopped out. Do I close and go long now anyway? For now I have placed the SL at 1.4933. As such buggered up the rules for me. I, unfortunately, just started paper trading on open last night so no real money involved. Waiting for the right place to go live (I know there is no right place - it was last night!!)

Larry

Good larry, i would go long right now and stop at 1.4800
i think starting the beginning of the month is the good time to start..
  • #1,942
  • Dec 1, 2008 3:17pm Dec 1, 2008 3:17pm
Quoting Hiranya
Quoting Corre
may someone give me a proper definition of failed reversal bar?
When the candle hits both ema's at the same time. that is just one of them but that is the most common, if you look at the first page there or some scenarios of a reversal bar.
No, that's a failed setup bar;
reversal bars are the ones that come after a setup bar, and they have nothing to do with EMAs, only with high/low of setup bar.


Sorry guys, first I fell asleep, them I went to a football match, and just arrived home;
There are 3 pages of posts since, so if something is left unanswered, and you feel that I might help, go ahead and shoot
  • #1,943
  • Dec 1, 2008 3:30pm Dec 1, 2008 3:30pm
when you can, please, explain me a little further the failed reverse bar thing, please.

also in pm if you prefer.
  • #1,944
  • Dec 1, 2008 4:02pm Dec 1, 2008 4:02pm
Quoting anuar
Hi,

Really envy you guys making lots of pips already for the month. I am on IBFx and so far there is no setup for this month at all ...Can anyone confirm this. Thanks ..........
You would have still been in the big short trade on IBFX from what I see, trade would have been entered as a reversal on the 28th from 1.5252, would be still sitting on around 380-400 pips now. I won't post a chart because IBFX charts confuse things for others.
  • #1,945
  • Dec 1, 2008 4:05pm Dec 1, 2008 4:05pm
For those of us on IBFX, I think we missed that 400 points, the price only went 1 pip past the EMA, do we all agree ?

I also have GO markets and I think that actually caught it. I think the set up bar was on the 28/11 20:00 and the EMA was penetrated by exactly 5 pips, just enough to the pip

Can anyone confirm these thoughts please
Money grows on the tree of persistence
  • #1,946
  • Dec 1, 2008 4:27pm Dec 1, 2008 4:27pm
Quoting tonirai
No, that's a failed setup bar;
reversal bars are the ones that come after a setup bar, and they have nothing to do with EMAs, only with high/low of setup bar.
To me a failed reversal bar is one that _fails_ to trigger the pending trade, and/or triggers it then stops it. That's why I deemed the two bars after the buy (long) setup bar from earlier today as failed reversal bars, but since they kept going in the buy's way (giving us a better position), we didn't look at them as failed reversal bars!
  • #1,947
  • Dec 1, 2008 4:27pm Dec 1, 2008 4:27pm
Low for Bar A is 1.4905
Low for Bar B is 1.4908

Meaning, that Ibfx members should be still in a Short Trade...
Attached Image (click to enlarge)
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  • #1,948
  • Dec 1, 2008 4:30pm Dec 1, 2008 4:30pm
I am also with IBFX, what I understand is recording to the rule, we should enter the trade on open whlie maeket gaped down on open, am i right?
  • #1,949
  • Dec 1, 2008 4:49pm Dec 1, 2008 4:49pm
Can somebody explane how we math stoploss for 50% rule
For ex like on pic
on bar A I open short with price 1.7493 and stoploss 1.7610
bar B is my set up bar for long with high 1.7393 and low 1.7136
when bar C close I need change stoploss , because two reversal bars and 1.7493-1.7136=0.0357, any words 357 pips
I think my stoploss must be (1.7493+1.7136)/2=1.7315
is that correct?
thanks
Peter
Attached Image (click to enlarge)
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  • #1,950
  • Dec 1, 2008 4:52pm Dec 1, 2008 4:52pm
Hi Sterling,

There seems to be some confusion reg. the moving of stops, and failed reversal bars in the recent posts .

It would be great if you can post your chart and explain to us
What is a failed reversal bar
How you moved your SL and created pending Buy stop orders

Thanks,
Peace
  • #1,951
  • Dec 1, 2008 5:01pm Dec 1, 2008 5:01pm
Quoting denverdude
Hi Sterling,

There seems to be some confusion reg. the moving of stops, and failed reversal bars in the recent posts .

It would be great if you can post your chart and explain to us
What is a failed reversal bar
How you moved your SL and created pending Buy stop orders

Thanks,
Peace
A failed reversal bar is when you have your setup bar it closes and then the 2 following bars fail to trigger the trade. When this happens you cancel that trade and look for a new setup bar, which could be as soon as the next bar.

Another thing. All these other charts close times are really confusing people and cluttering the thread. There is no excuse not to have Alpari-us charts, none. Downloading a demo is free and then you will have the charts. Everyone please spend 5 minutes of you precious time and download a demo!

-Sterling
Founder of Day Trading Forex Live
  • #1,952
  • Dec 1, 2008 5:04pm Dec 1, 2008 5:04pm
Quoting pitpiter
Can somebody explane how we math stoploss for 50% rule
For ex like on pic
on bar A I open short with price 1.7493 and stoploss 1.7610
bar B is my set up bar for long with high 1.7393 and low 1.7136
when bar C close I need change stoploss , because two reversal bars and 1.7493-1.7136=0.0357, any words 357 pips
I think my stoploss must be (1.7493+1.7136)/2=1.7315
is that correct?
thanks
Peter
Basically when you have 2 failed reversal bars after a setup bar you cancel the trade and have no where to put the stop. So, you take the price you got in at and the MAX profit the trade every hit. Then devide that number in half and thats the 50% TP rule. Once you have a new setup bar you use that again, but if that failes go back to the 50% rule. Hope this clears it up.

-Sterling
Founder of Day Trading Forex Live
  • #1,953
  • Edited 5:10pm Dec 1, 2008 5:09pm | Edited 5:10pm
Sterling ,

this is a slight grey area for me,
please can you confirm I am correct, I currently have a sell stop at 1.4800

thanks,
Steve.
  • #1,954
  • Dec 1, 2008 5:14pm Dec 1, 2008 5:14pm
Quoting stersuhr
A failed reversal bar is when you have your setup bar it closes and then the 2 following bars fail to trigger the trade. When this happens you cancel that trade and look for a new setup bar, which could be as soon as the next bar.

Another thing. All these other charts close times are really confusing people and cluttering the thread. There is no excuse not to have Alpari-us charts, none. Downloading a demo is free and then you will have the charts. Everyone please spend 5 minutes of you precious time and download a demo!

-Sterling
If I may add a caveat which I know threw me off earlier today. Yes, it is true if the bar fails to trigger the trade, then it is a failed reversal bar BUT with one ADDITIONAL condition, that it is not going in the direction of the pending trade. If bars continue to give us a better positions on our trade (for a buy it keeps going lower and for a sell it keeps going higher), then although it didn't trigger the trade, but we look at it as a new setup bar and NOT a failed reversal bar although it failed to trigger the trade, and we zero out the counter when waiting for a reversal bar after it.

Also, another failed reversal bar (naturally) is one that triggers both the trade and its stop.
  • #1,955
  • Dec 1, 2008 5:17pm Dec 1, 2008 5:17pm
Quoting pitpiter
Can somebody explane how we math stoploss for 50% rule
For ex like on pic
on bar A I open short with price 1.7493 and stoploss 1.7610
bar B is my set up bar for long with high 1.7393 and low 1.7136
when bar C close I need change stoploss , because two reversal bars and 1.7493-1.7136=0.0357, any words 357 pips
I think my stoploss must be (1.7493+1.7136)/2=1.7315
is that correct?
thanks
Peter
Correct:
When you don't have a setup bar and the 50% rule applies, you do:
"point of entry" - "lowest low since in the trade" / 2 (for a short).
  • #1,956
  • Dec 1, 2008 5:17pm Dec 1, 2008 5:17pm
Quoting CitiTrade
If I may add a caveat which I know threw me off earlier today. Yes, it is true if the bar fails to trigger the trade, then it is a failed reversal bar BUT with one ADDITIONAL condition, that it is not going in the direction of the pending trade. If bars continue to give us a better positions on our trade (for a buy it keeps going lower and for a sell it keeps going higher), then although it didn't trigger the trade, but we look at it as a new setup bar and NOT a failed reversal bar although it failed to trigger the trade, and we zero out the counter...
Yeah if were short and the market keeps going lower then each succesive lower bar becomes the setup bar to go long when it closes. The same for the case of being long.

-Sterling
Founder of Day Trading Forex Live
  • #1,957
  • Dec 1, 2008 5:22pm Dec 1, 2008 5:22pm
Quoting stersuhr
Basically when you have 2 failed reversal bars after a setup bar you cancel the trade and have no where to put the stop. So, you take the price you got in at and the MAX profit the trade every hit. Then devide that number in half and thats the 50% TP rule. Once you have a new setup bar you use that again, but if that failes go back to the 50% rule. Hope this clears it up.

-Sterling
I mean stoploss for short in this case , which I have , and like I understood now I don't put any stop on market , because I don't have set up bar
thanks , I think it's clear for me now
good luck
Peter
  • #1,958
  • Dec 1, 2008 5:33pm Dec 1, 2008 5:33pm
Ok, so here is my take on the current situation:

The bar which closed 30 minutes ago is a valid setup bar, so we move our stop loss of the long we have to 1.4819. Also, we enter a reverse order at the same place: sell stop @ 1.4819 with SL @ 1.4954 Do you guys concur?
  • #1,959
  • Dec 1, 2008 5:37pm Dec 1, 2008 5:37pm
stersuhr, when you have time can you attach the pip count/profit for 2008? thanks!
  • #1,960
  • Dec 1, 2008 5:38pm Dec 1, 2008 5:38pm
Quoting tonirai
Correct:
When you don't have a setup bar and the 50% rule applies, you do:
"point of entry" - "lowest low since in the trade" / 2 (for a short).
Thanks Toni.
I think now I realy get it. I do that math , just if the next bar not set up bar , and if the next is set up bar I do normal trade.
thanks so much
more pips
good luck
Peter
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