4H 5EMA System

Bar 1 isn't a set up bar. the previous one is.
2 triggers long.
3 is setup bar
4 triggers it
4 is also a setup bar
5 triggers it
5 is a setup bar
6 triggers it
8 is setup
9 triggers it
9 stops it out and a reveral is made

thats the way i see it. if im wrong someone please tell me

Let's see then, if we can sort it out

Yes it breaks, but first let me ask you about the bars before it;
The long white bar makes a lower low and (without knowing what's before it) would be a setup bar, which means the two following are failed reversal bars... so you would be starting to look for a fresh setup bar starting on bar 2.
But let's imagine there's nothing before bar 1 - in that case, bar 2 triggers the long, yes.

Yes.

Yes & no;
That trade is closed because bar 4, when it closed, becomes a setup bar to go long (don't know if you've seem it, because you don't mention it)... so we don't call the trade "stopped", but reversed by setup to go long.

See above;
But it goes long, yes.

Yes, so a short is started on bar 6.

No;
You're still on the short initiated on bar 6.

Yes.

On this bar, I would have to watch a lower timeframe to see which happened before - the higher high or the lower low - but given the size of it, I think I won't be wrong saying that it first went up, and then down;
So in that case, it would have triggered the long, and then stopped it on the same bar, leaving you flat.[/quote]


I hope I'm making sens;
If not, just ask

good we are on same track

And the one before also, so... see above

No reversal... You enter and stopped in the same bar, so you're flat and looking for a new setup bar

Not exactly... you've missed 2 details

well to start. you can't see whole pic for long white bar but if next bar has lower low then long white bar then it becomes the new setup bar correct?

and 8 is set up bar so place buy 8 pips above and stop 8 pips below and also a reversal at 8 pips below NO?????

which 9 would have triggered

correct me if im wrong.

Ok Sterling where is that 5 min scalping system you've been working on...i need something else to get me thru this whip saw market...just kiddin

I know this system is good and i do see the value in it...but i have to admit...if you follow it and stay in with every trade...there is going to be times that it will test your patience.

keep the faith

Mike

I am... follow me on this please:

If you open the pic and click it to zoom it, you can perfectly see it has a lower wick than the two next ones - That's the reason for my first observation;

Bar 8 is setup bar, so you place SL for the live short & buy stop 8 pips above it; the stop for the pending buy stop goes 5 pips below it;
Bar 9 would have triggered the buy, yes... but also stopped it below, and you don't place a reverse order on that new buy until the bar closes, at which time you would be already flat, so looking for a fresh setup bar (no reverse made, that's where I mean you're wrong).

ok didn't click on it. just looked on thread. and ive got ya on the reversal.

things sound so easy when you read through the rules. but when you get down to it you have to think about it a little

thanks a lot!!!

You're welcome
I'm "commited" to this thread, helping always that I'm available

[quote=jtmoore007;2410461]Bar 1 isn't a set up bar. the previous one is.
2 triggers long.

Thanks for the explanation guys. Why is the bar before bar 1 considered as the setup bar?

Previous SELL trade opened at 1.4770 stopped out at 1.4837.

New BUY trade opened @ 1.4837 SL 1.4745

Enough of this chop chop - its time something gives in.

Thanks

Like we concluded, it's not the bar before 1... it's the bar before that (the long white)
Why? Because it has a lower low, and the following two bars fail to trigger the trade (failed reversal bars).

sell from 1.4770 stopped out at 1.4837 for -67 pips.
long triggered at 1.4837 with stop at 1.4745.

stop moved to 1.4768.
Sell stop at 1.4768 with stop loss at 1.4885.

If this whips me again, I think I will sit on the sidelines and do demo. (This is the sign for everyone to go live and make money. http://www.forexfactory.com/images/icons/icon6.gif )

Larry

hi guys,

I hate to moan about things but the IBFX is no better. Got stopped out twice in a row by a whisker of 5-10 pips only to see it continue in the original direction. That means twice i was long but got stopped and the price kept on going up. What should we do?

This is my chart (broker : liteforex) for Nov 2008. If anyone find any mistakes (not following the right principles, miscalculation, etc) that I've made in backtesting this, please tell me

By the way, my chart's time is one hour in front of Alpari, so when it shows 08.00 in Alpari it is 07.00 (hope I'm not wrong with that...)
And if someone feel this chart seem annoying or so, please let me know.

Arrow up=setup bar, check sign=reversal

No.1 : start at opening on Monday at 1.6103 buy order
stop at 1.6165 (+62 pips)

No.2 : sell at 1.6165
stop at 1.5838 (+327 pips)

No.3 : buy at 1.5838
stop at 1.5908 (+70 pips)

No.4 : sell at 1.5908
stop at 1.5986 (-78 pips)

No.5 : buy at 1.5986
stop at 1.5967 (-19 pips)

No.6 : sell at 1.5967
stop at 1.5865 (+102 pips)

No.7 : buy at 1.5865
stopped at 1.5775 (-90 pips)
also the reversal (in the same bar)
sell at 1.5775
stopped at 1.5998 (-223 pips)

No.8 : buy at 1.5649 (setup bar is bar to the left of reversal)
stop at 1.5694 (+45 pips)

No.9 : sell at 1.5694
stop at 1.5670 (due to weekend closing) = +24 pips

No.10 : using the weekend bar as setup, buy at 1.5760 (opening price)
stop at 1.5755 (-5 pips)

No.11 : sell at 1.5755
stop at 1.5808 (-53 pips)

No.12 : buy at 1.5808
stopped at 1.5664 (-144 pips) and we go to the reverse trade
sell at 1.5664
stop at 1.5665 (-1 pips)

No.13 : buy at 1.5665
stopped at 1.5547 (-118 pips) and we go to the reverse trade
sell at 1.5547
stop at 1.5467 (+80 pips)

No.14: buy at 1.5467
stopped at 1.5338 (-129 pips) and we go to the reverse trade
sell at 1.5338
stop at 1.4972 (+366 pips)

No.15 : buy at 1.4972
stopped at 1.4798 (-174 pips) and we go to the reverse trade
sell at 1.4798
stop at 1.4878 (-80 pips)

No.16 : buy at 1.4878
stopped at 1.4796 (-82 pips) due to weekend

No.17 : sell at 1.4668
stop at 1.4755 (-87 pips) and we go reverse
buy at 1.4755
stop at 1.4952 (+197 pips)

No.18 : sell at 1.4952
stop at 1.5087 (-135 pips)

No.19 : buy at 1.5087
stop at 1.4950 (-137 pips)
This is where I got confused, where is the SL for buy after 2 bars didn't trigger the sell ?
I still use the original setup bar :-)

No.20 : sell at 1.4950
stopped at 1.4994 (-44 pips) and we go reverse
buy at 1.4994
stop at 1.5017 (+23 pips)

No.21 : sell at 1.5017
stop at 1.4843 (+174 pips)

No.22 : buy at 1.4843
stop at 1.4947 (+104 pips)

No.23 : sell at 1.4947
stop at 1.4865 (+82 pips) closing weekend

No.24 : buy at 1.4953
stop at 1.5097 (+144 pips)

No.25 : sell at 1.5097
stopped at 1.5195 (-98 pips) and we go reverse
buy at 1.5195
stop at 1.5364 (+169 pips) using 50 rules...
now waiting for new setup bar....

No.26 : sell at 1.5301
stopped at 1.5450 (-149 pips) and we go reverse
buy at 1.5450
stop at 1.5406 (-44 pips)

No.27 : sell at 1.5406
stop at 1.5421 (-15 pips)

No.28 : buy at 1.5421
stop at 1.5401 (-20 pips)

The total for Nov 2008 is +44 pips...not bad. The problem I think is the gain, not the losses.
It's hard to achieve the 400 pips average, but maybe the biggest problem is my poor knowledge about
this system. So feel free to comment on this, and I will start counting again!!

Very true it does test your patience. It been irritating me lately. We should be pretty close to BE for the month I think. I think Ill do a chart tonight. That does not include the current trade which will be closed for profit as well. The 5 min system is taking more time than I had expected so bare with me on this one.

-Sterling

You have to be careful with this attitude. Look at the market now. Just as soon as it got you down it broke out hard to the upside. Thats why I say you must take every trade. Also its not like the system is taking big losses with these direction changes, much smaller than usual. It only takes one trade to turn this system around for the month, especially since were close to BE. Every system has down time and this one is no exception. Things will be much better after the damn holidays and the market gets back to normal

-Sterling