DislikedHowever 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 tryingIgnored
Maybe I didn't catch your doubt at the first time.
- #1,982
- Dec 1, 2008 6:26pm Dec 1, 2008 6:26pm
[quote=Pipsnagger;2388970]
Thanks for the support man keep it up.
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...
Thanks for the support man keep it up.
- #1,984
- Dec 1, 2008 6:29pm Dec 1, 2008 6:29pm
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!
LOL it is a job to answer all the questions, Sterling is on his way home i just talk to him so he should be in to the room soon. I hope that you had some good trades today and hope that you have a good night.
Xpat, I see, your doubt now is why the SL on the sell stop is above the reversal bar?
Like Kristo said:
"this is a system built around Support and Resistance"
It's the most important thing, and the reason this system is what it is - if you understand this concept, you'll get the rules a lot more easier.
From the rules:
Additional Rules
2.) Example: A proper long setup bar forms and you place your buy stop and stop loss. The next bar makes a lower low and then triggers the buy stop, in that order...where does the stop go now? The stop would go 5 pips below the low of the reversal bar. Essentially the reversal bar is also the setup bar. This is a very rare case but it does happen, and thus we need a rule for it. This happens because we do not watch the market 24/7 only a brief glance every 4 hours once you understand the system.
Now revert this rule in your mind, to apply it to the SL on the sell stop;
The reversal bar is a higher high, so that's where the SL goes.
And if the current bar makes a higher high, once it closes, that's where the SL on the sell stop will go.
We do this way, until we get stopped, or until we get a new setup bar
Like Kristo said:
"this is a system built around Support and Resistance"
It's the most important thing, and the reason this system is what it is - if you understand this concept, you'll get the rules a lot more easier.
From the rules:
Additional Rules
2.) Example: A proper long setup bar forms and you place your buy stop and stop loss. The next bar makes a lower low and then triggers the buy stop, in that order...where does the stop go now? The stop would go 5 pips below the low of the reversal bar. Essentially the reversal bar is also the setup bar. This is a very rare case but it does happen, and thus we need a rule for it. This happens because we do not watch the market 24/7 only a brief glance every 4 hours once you understand the system.
Now revert this rule in your mind, to apply it to the SL on the sell stop;
The reversal bar is a higher high, so that's where the SL goes.
And if the current bar makes a higher high, once it closes, that's where the SL on the sell stop will go.
We do this way, until we get stopped, or until we get a new setup bar
LOL it is a job to answer all the questions, Sterling is on his way home i just talk to him so he should be in to the room soon. I hope that you had some good trades today and hope that you have a good night.
But in some way... I am getting paid to do it
Sterling will be here soon?
Ok, then I'll be
after this bar close (in 10 min).See you all tomorrow.
I will try to explain my question better. on post 1971 by Kristo. A sell stop (red Line) was placed above the reversal bar (blue arrow) when reversal bar had finished forming. price retraced. Had price not retraced and gone onto a higher level it would have sold out and stopped the trade also put our trade in the wrong direction. that s what is confusing me. I hope I have explained it better for you.
So if the reversal bar wouldn't have retraced, and price kept going up on the next bar, nothing would have happen
The red line isn't a sell stop - it's the SL for the pending sell stop.
So if the reversal bar wouldn't have retraced, and price kept going up on the next bar, nothing would have happen
