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4H 5EMA System

  • #1,961
  • Dec 1, 2008 5:56pm Dec 1, 2008 5:56pm
Quoting CitiTrade
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?
Cititrade,

why do you consider the last bar as a setup bar? surely it has to break the 5EMA high, until then SL=1.4800

Steve.
  • #1,962
  • Dec 1, 2008 6:03pm Dec 1, 2008 6:03pm
Quoting Arnold49
Cititrade,

why do you consider the last bar as a setup bar? surely it has to break the 5EMA high, until then SL=1.4800

Steve.
Darn, did it again. I am totally off today. We're long not short. Anyway, so when do we enter the reverse order? Shouldn't be now?
  • #1,963
  • Dec 1, 2008 6:10pm Dec 1, 2008 6:10pm
Quoting stersuhr
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
I should have done this long before I started demoing this system . Anyway, better late than never. I too encourage all newcomers to this system to use Alpari, as it makes our lives as well as Sterling's easier.

Latest status:
Long at 1.4933 (actually got in 1.4863 after download)
SL at 1.4800

Thanks
Peace
  • #1,964
  • Dec 1, 2008 6:14pm Dec 1, 2008 6:14pm
Quoting denverdude
I should have done this long before I started demoing this system . Anyway, better late than never. I too encourage all newcomers to this system to use Alpari, as it makes our lives as well as Sterling's easier.

Latest status:
Long at 1.4933 (actually got in 1.4863 after download)
SL at 1.4800

Thanks
Peace
Didn't we just get a reversal bar an hour ago?
  • #1,965
  • Dec 1, 2008 6:16pm Dec 1, 2008 6:16pm
Quoting viperzz
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.

Hi viperzz. youre talking about 11/28 at 1200 bar. That bar is a set up for buy on my system and got stopped out a few candles after. after that bar I have a few setup bar for long , Thanks or your help.

Appreciate if you could post your chart, dont think it will confiuse others, thanks again....
  • #1,966
  • Dec 1, 2008 6:18pm Dec 1, 2008 6:18pm
Thanks guys for going to the Alpari demo. It will save us all a lot of grief, especially me. That doesn't mean you can't keep your current live brokers - just use the signals generated by Alpari, which are in turn discussed on this thread. (I have FXSol, IBFX, ITFX and Gain - but I have an Alpari US demo for this thread only). Again thanks.

Larry
  • #1,967
  • Dec 1, 2008 6:22pm Dec 1, 2008 6:22pm
Quoting CitiTrade
Darn, did it again. I am totally off today. We're long not short. Anyway, so when do we enter the reverse order? Shouldn't be now?
Yes, at the openning of this bar, you should have placed a sell stop at 1.4800.
  • #1,968
  • Edited 6:36pm Dec 1, 2008 6:27pm | Edited 6:36pm
Quoting tonirai
Yes, at the openning of this bar, you should have placed a sell stop at 1.4800.
Then what was the bar that closed at 6pm est? Wasn't that a reversal bar?

And if so, how come we're not using its high and low for the SL and sell stop (the reverse order and the SLs)?
  • #1,969
  • Dec 1, 2008 6:38pm Dec 1, 2008 6:38pm
Quoting CitiTrade
Then what was the bar that closed at 6pm est? Wasn't that a reversal bar?

And if so, how come we're not using its high and low for the SL and sell stop (the reverse order and the SLs)?
Yes:
Before there was a setup bar, and then at 6pm you had a good reversal bar that made you go long;
When it closed, you must enter the reverse order (in case you get stopped).

The rule means "you never reverse a reversal bar", not "you never reverse a reversal trade" - that is because you're not supposed to know you're in a long, until the reversal bar closes.

You use the high/low of the setup bar, not the reversal bar!
  • #1,970
  • Dec 1, 2008 6:42pm Dec 1, 2008 6:42pm
Quoting tonirai
Yes:
Before it was a setup bar, and then at 6pm you had a good reversal bar that made you go long;
When it closed, you must enter the reverse order (in case you get stopped).

The rule means "you never reverse a reversal bar", not "you never reverse a reversal trade" - that is because you're not supposed to know you're in a long, until the reversal bar closes.

You use the high/low of the setup bar, not the reversal bar!
Since it is a reversal bar, how come we're not using its high and low for the sell stop, the buy SL, and the sell SL? You're still suggesting the numbers from the bar before it (1.48 instead of 1.4819 the reversal bar's low - 5)
  • #1,971
  • Dec 1, 2008 7:13pm Dec 1, 2008 7:13pm
A chart showing the current situation might help here Citi. The most recent Setup bar is arrowed yellow. The Reversal bar is arrowed blue. Following on from yesterdays big Short trade the most recent Setup bar formed and we placed our Buy Stop (in my case) 8 pips above its high at 1.4933, SL 5 pips below its low at 1.4800. Subsequently, the Reversal bar formed and (a) closed our Short trade, and (b) opened our Long trade. So we are now long. As per the rules.............when the Reversal bar closes we then enter a pending Sell Stop 5 pips below the low of the Setup Bar (same price as our current Buy trade SL). The SL for the pending Sell trade is set at 8 pips above the high of the Reversal bar (in my case this is 1.4954), which is why we wait for the close of the Reversal bar before placing the pending order...................otherwise we would not know where to put the pending order SL. I hope this helps.
Attached Image
If there is ever any doubt then there is no doubt.
  • #1,972
  • Dec 1, 2008 7:27pm Dec 1, 2008 7:27pm
Quoting CitiTrade
Since it is a reversal bar, how come we're not using its high and low for the sell stop, the buy SL, and the sell SL? You're still suggesting the numbers from the bar before it (1.48 instead of 1.4819 the reversal bar's low - 5)
Where did you read you use the numbers of the reversal bar?
You use the numbers of the setup bar!
  • #1,973
  • Dec 1, 2008 7:28pm Dec 1, 2008 7:28pm
The SL for the pending Sell trade is set at 8 pips above the high of the Reversal bar (in my case this is 1.4954), which is why we wait for the close of the Reversal bar before placing the pending order...................otherwise we would not know where to put the pending order SL. I hope this helps.[/quote]


Hi Kristo,
I understand the first part of your explanation, however this line confuses me why have we placed another sell stoploss 20 pips above our entery when we are long. Im just trying to get my head around this system and thought i had a good understanding this has confussed me.
  • #1,974
  • Dec 1, 2008 7:31pm Dec 1, 2008 7:31pm
Yes Kristo, I posted before seing your answer to CitiTrade.

Thanks for the good and visual explanation!
(I'm doing lots of things at the same time, it has been hard to follow and to give detailed answers).
  • #1,975
  • Dec 1, 2008 7:41pm Dec 1, 2008 7:41pm
Quoting Xpat
Hi Kristo,
I understand the first part of your explanation, however this line confuses me why have we placed another sell stoploss 20 pips above our entery when we are long. Im just trying to get my head around this system and thought i had a good understanding this has confussed me.
I think we're seing a regression in the rules' learning

Your entering level doesn't matter;
What matters is the lower low since the setup bar.

Imagine the reversal bar would have made a lower low, before going up and triggering the long - only in that case, the SL for the long and the sell stop would be at the low of the reversal bar;
Otherwise, it's below the setup bar that you always put them.
It's in the rules (aditionnal rules).
  • #1,976
  • Dec 1, 2008 7:51pm Dec 1, 2008 7:51pm
Quoting tonirai
I think we're seing a regression in the rules' learning

Your entering level doesn't matter;
What matters is the lower low since the setup bar.

Imagine the reversal bar would have made a lower low, before going up and triggering the long - only in that case, the SL for the long and the sell stop would be at the low of the reversal bar;
Otherwise, it's below the setup bar that you always put them.
It's in the rules (aditionnal rules).
Thanks Tonirai, got that however this did not happen on with the long trade we are now in. Is that correct?
  • #1,977
  • Dec 1, 2008 7:57pm Dec 1, 2008 7:57pm
Quoting Xpat
Thanks Tonirai, got that however this did not happen on with the long trade we are now in. Is that correct?
What didn't happen?
The reversal bar making a lower low before triggering?

No, that's why the orders are below the setup bar (at 1.4800).
This is the normal situation.
  • #1,978
  • Dec 1, 2008 8:00pm Dec 1, 2008 8:00pm
[quote=tonirai;2388944]I think we're seing a regression in the rules' learning

Tonirai..I must commend you on your understanding of all the nuances of the rules and your willingness to steer us back on course when we go astray as some of us still do on some of the more subtle aspects of the rules. I wish it was as easy somtimes as swapping thumb drives(good info for bad). Thanks for all your clarifications. This thread is one of the few that has not deteriorated into the abyss due to yourself, Hiranja, Harold and Sterlings efforts in keeping it positive and on course. Thanx
  • #1,979
  • Dec 1, 2008 8:09pm Dec 1, 2008 8:09pm
Quoting tonirai
What didn't happen?
The reversal bar making a lower low before triggering?

No, that's why the orders are below the setup bar (at 1.4800).
This is the normal situation.
The reversal bar didn’t make a lower low than the setup bar was what i was asking and you have confirmed that for me. It was also a normal setup I understand that as well. However what I don’t understand was what I originally asked. Maybe I am not explaining myself correctly. I will try to work it out myself. Thanks for trying
  • #1,980
  • Dec 1, 2008 8:11pm Dec 1, 2008 8:11pm
Pipsnagger,

Thank you for the support!
It's not an easy task, fortunately there's more than one person to clarify things.
Speaking of that, I wonder where Sterling is? I'll go to sleep soon!
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