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4H 5EMA System

  • #2,181
  • Dec 4, 2008 6:03am Dec 4, 2008 6:03am
As expected 1% cut = boring!

-Sterling
Founder of Day Trading Forex Live
  • #2,182
  • Dec 4, 2008 6:34am Dec 4, 2008 6:34am
Just thought I would let you guys know im short on the E/G. I think it made a solid DT and is coming down. Im looking for atleast 100 pips profit possable the .8300 area maybe a little before it gets there. Im short from .8640 with a stop at .8700

-Sterling
Founder of Day Trading Forex Live
  • #2,183
  • Dec 4, 2008 7:09am Dec 4, 2008 7:09am
We are NOT in a trade am i right?? Waiting for a buy trade....(Pending Buy Trade 1.4737,SL 1.4460)
Anyone can confirm??
  • #2,184
  • Dec 4, 2008 7:21am Dec 4, 2008 7:21am
Quoting The7
We are NOT in a trade am i right?? Waiting for a buy trade....(Pending Buy Trade 1.4737,SL 1.4460)
Anyone can confirm??
Yeah were waiting for a buy, the system is flat right now.

-Sterling
Founder of Day Trading Forex Live
  • #2,185
  • Dec 4, 2008 7:25am Dec 4, 2008 7:25am
Quoting stersuhr
Yeah were waiting for a buy, the system is flat right now.

-Sterling

Hi sterling..There are many cases where we close our trade with the %50 rule, wait for a setup bar and a reversal bar....But instead of a reversal bar to occur, the price goes in a wrong direction and we miss big moves...What would you say about this??
For example there is a big short trend.but we get stopped out with the %50 but the prices keeps dropping...So we just wait and miss the big move and wait for a buy, or is there a rule that gets us in the short trade somewhere?
Thanks
  • #2,186
  • Dec 4, 2008 10:24am Dec 4, 2008 10:24am
BUY order @ 1.4737 with SL 1.4460 just triggered.
  • #2,187
  • Dec 4, 2008 11:33am Dec 4, 2008 11:33am
Quoting denverdude
BUY order @ 1.4737 with SL 1.4460 just triggered.
Yes , I see this numbers on my chart too.
  • #2,188
  • Dec 4, 2008 12:13pm Dec 4, 2008 12:13pm
Can someone please help me to understand why out first Buy SetupBar is Bar#3 instead of Bar# 2? We closed the short trade based on the 50% rule and because the Buy SetupBar wasn't triggered within 2 bars at the open of Bar# 1. Why wasn't Bar# 2 the first Buy SetupBar after we were flat? Please advise.

TimeFreedom
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  • #2,189
  • Dec 4, 2008 12:30pm Dec 4, 2008 12:30pm
Hi !

What about the challenge. Is there anybody who did it ?

Thank you Sterling for this very interesting thread and all members who contributes
  • #2,190
  • Edited 1:14pm Dec 4, 2008 12:44pm | Edited 1:14pm
Quoting TimeFreedom
Can someone please help me to understand why out first Buy SetupBar is Bar#3 instead of Bar# 2? We closed the short trade based on the 50% rule and because the Buy SetupBar wasn't triggered within 2 bars at the open of Bar# 1. Why wasn't Bar# 2 the first Buy SetupBar after we were flat? Please advise.

TimeFreedom
Two candles before #1 were failed reversal bars for previous SELL trade.
#1 closed that SELL using 50% rule.
#1 also became the new setup bar for BUY.
The two candles (one before #2 and #2) were again failed reversal bars. Pending BUY was removed.
#3 became the new BUY setup bar. #4 triggered it.
  • #2,191
  • Dec 4, 2008 12:51pm Dec 4, 2008 12:51pm
@ denverdude;

Are you saying that Bar#1 was a Buy SetupBar?

TimeFreedom

Quoting denverdude
the two bars after #1 were failed reversal bars. using 50% rule, short was closed after #2 candle in your chart closed. No trade was pending after that.
#3 was the new setup bar and we placed BUY stop order after the close of #3.
#4 has triggered the BUY.
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  • #2,192
  • Dec 4, 2008 1:16pm Dec 4, 2008 1:16pm
Quoting TimeFreedom
@ denverdude;

Are you saying that Bar#1 was a Buy SetupBar?

TimeFreedom
Hi,

I just found out I messed up my reply to your earlier post. Just woke up after trading in the night

I've edited that post.
Here it is again

Two candles before #1 were failed reversal bars for previous SELL trade.
#1 closed that SELL using 50% rule.
#1 also became the new setup bar for BUY.
The two candles (one before #2 and #2) were again failed reversal bars. Pending BUY was removed.
#3 became the new BUY setup bar. #4 triggered it.
  • #2,193
  • Dec 4, 2008 1:19pm Dec 4, 2008 1:19pm
Status at 2PM ET on 12/4:
SL on BUY trade moved to 1.4608

New SELL stop order @ 1.4608 with SL 1.4821
  • #2,194
  • Dec 4, 2008 2:22pm Dec 4, 2008 2:22pm
Quoting TimeFreedom
Can someone please help me to understand why out first Buy SetupBar is Bar#3 instead of Bar# 2? We closed the short trade based on the 50% rule and because the Buy SetupBar wasn't triggered within 2 bars at the open of Bar# 1. Why wasn't Bar# 2 the first Buy SetupBar after we were flat? Please advise.

TimeFreedom
Hi Timefreedom,

IMO as per your chart labels Bar #2 was indeed a Buy Setup Bar. Perhaps we could defer to Sterling on this but my understanding is as follows:

1. We were short from 1.4880.
2. The two bars prior to Bar # 1 were failed Reversal bars and therefore we invoked the 50% rule. Price had already hit a low of 1.4662 revealing a max pip profit of 218 pips from our entry. Our SL for the short was then set at 1.4771, being 109 pips below our short entry price. This adjustment occurred at the start of Bar # 1.
3. We were then waiting for a new Setup Bar to go Long. As it turned out, Bar # 1 hit our short SL and closed our Short trade at 1.4771.
4. When Bar # 1 closed it became our Buy setup bar, because it met the parameters in the page 1 rules. So we set our pending Buy order at 1.4814 being 5 pips + spread (in my case) above the high of bar # 1.
5. The bar following bar # 1 is a failed Reversal bar.
6. Bar # 2 is also a failed Reversal bar, however after it has closed we can see that it has also hit a fresh low, below the low of Bar # 1 and therefore Bar # 2 becomes the new Setup bar to go Long and our pending Buy order is adjusted at this time to 5 pips + spread above the high of Bar # 2.
7. Bar # 3 forms and does not trigger our Long order and also sets a new low. Therefore Bar # 3 becomes our new Setup Bar to go Long and our pending Buy order is adjusted accordingly to 5 pips + spread above the high of Bar # 3.
8. We now know that our Long order was triggered.

When we are flat and waiting for a Setup Bar to go in either direction, fresh lows (in the case of waiting for a long entry) or highs (in the case of waiting for a short entry) are important. The scenario which has unfolded over the last 6-7 bars illustrates this aspect. It is quite common for a Setup bar to be followed by another setup bar, by virtue of the setting of a fresh low or high.

I hope this helps.
If there is ever any doubt then there is no doubt.
  • #2,195
  • Dec 4, 2008 2:39pm Dec 4, 2008 2:39pm
Quoting denverdude
Status at 2PM ET on 12/4:
SL on BUY trade moved to 1.4608

New SELL stop order @ 1.4608 with SL 1.4821
Ditto
  • #2,196
  • Dec 4, 2008 3:59pm Dec 4, 2008 3:59pm
Hi everyone.
Nice see You , Toni , after work here .
May be You can say couple words about why yesterday been apply 50% rule ? With which rule ? I try find answer .
Thanks
Peter
  • #2,197
  • Dec 4, 2008 4:08pm Dec 4, 2008 4:08pm
Quoting Kristo
Hi Timefreedom,

IMO as per your chart labels Bar #2 was indeed a Buy Setup Bar. Perhaps we could defer to Sterling on this but my understanding is as follows:

1. We were short from 1.4880.
2. The two bars prior to Bar # 1 were failed Reversal bars and therefore we invoked the 50% rule. Price had already hit a low of 1.4662 revealing a max pip profit of 218 pips from our entry. Our SL for the short was then set at 1.4771, being 109 pips below our short entry price. This adjustment occurred at the start of Bar # 1.
3. We were then waiting for...
Excellent analysis Kristo -thanks!
  • #2,198
  • Dec 4, 2008 4:09pm Dec 4, 2008 4:09pm
Quote
6. Bar # 2 is also a failed Reversal bar, however after it has closed we can see that it has also hit a fresh low, below the low of Bar # 1 and therefore Bar # 2 becomes the new Setup bar to go Long and our pending Buy order is adjusted at this time to 5 pips + spread above the high of Bar # 2.
Kristo,

I think you are correct. I checked my journal and I missed this step completely

So, #2 is also a setup bar for BUY.

Thanks
  • #2,199
  • Dec 4, 2008 4:24pm Dec 4, 2008 4:24pm
Quoting Kristo
Hi Timefreedom,

IMO as per your chart labels Bar #2 was indeed a Buy Setup Bar. Perhaps we could defer to Sterling on this but my understanding is as follows:

1. We were short from 1.4880.
2. The two bars prior to Bar # 1 were failed Reversal bars and therefore we invoked the 50% rule. Price had already hit a low of 1.4662 revealing a max pip profit of 218 pips from our entry. Our SL for the short was then set at 1.4771, being 109 pips below our short entry price. This adjustment occurred at the start of Bar # 1.
3. We were then waiting for...
Excellent description and absolutely correct.

Guys, don't forget that:
when you have a setup bar, you then wait for a possible reversal bar;
If the next one doesn't make a lower low or higher high (+5), it's a failed reversal bar and you get a second trial in the next;
But if that next bar (second) doesn't trigger the trade but makes a lower low, it then becomes a new setup bar.
  • #2,200
  • Dec 4, 2008 4:29pm Dec 4, 2008 4:29pm
Quoting pitpiter
Hi everyone.
Nice see You , Toni , after work here .
May be You can say couple words about why yesterday been apply 50% rule ? With which rule ? I try find answer .
Thanks
Peter
Not after work... at work again
But I'll PM you soon, to try to explain it.
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