Inside Bar Trading

Please see my first post.

I suppose you could if your money management allows it. In fact I can see the benefit--one confirming the other. Close out the first entry a little sooner to take the risk off the second. This thread just started though, and we're still keeping things as simple as possible. A good topic to come back to after the thread evolves a little more.

The original question asked which of the two consecutive IBs would be the preferred bar to use as the signal. So if I had to choose, It's my opinion that the most current is the most valid and gives the best entry. That is, unless Jim or Mike have a rule that disagrees. If so, I'll go with their rule.

Edit: Jim did cover the consecutive IB question in the first post. The example is the 3rd IB on the 3rd chart. Jim's rule is to use the longer trigger bar. It is so decreed. This invalidates my two posts on the topic.

Damn, that 5pm EST does become 9am Monday morning for me here in OZ. I gotta go to work so I will unfortunately miss the lesson on trading gaps.

I hope you post everything with great detail so I can look at it once I get home.

Juicyt

...and that first post is looking better too.

Hello everyone
Just wanted to introduce myself.
I am English and having a holiday in Malaysia for the next three months.
I am retired and have been involved in the stock market for some years. Lost some money on Black Friday in ’87 was it? Long time ago anyway.

UK market opens at about 3 pm for me so a comfortable time to get in front of the screen but I cannot stay up for much of the NY session. Too tired!

I have been looking for a way/system/strategy to trade the forex markets. Read lots but find myself out of sync. with most of the gurus.

Inside bars and short time-frames seem to be a good way forward. Found a number of threads, videos, articles etc. and then found you.

Hard1Head1 seems to offer just what I was looking for. My thinking seems to be more in tune with him than many others I have come across. And he wants to keep the method simple, the thread uncluttered with added indicators. I would support that whole-heartedly!!

So, thank you H1H1, for an excellent thread and thanks for all your efforts in keeping it pure.

OK, I will shut up now, just wanted to say “hello”

Since IBs are showing us consolidation. Draw a few trendlines and trade the break of the consolidation. In this case we had a nice pennant.

Two charts attached:

60min with TLs
15min showing breakout

Another exampler, later that same day.

Nice thread Jim.

Charts above are H1 and M15 tf.
H1H1 suggested M30 charts in the first post. Is it alright to be flexible here?

Super. Thanks much for the charts showing TL approach. Very clear now.
CCE

Ok everyone, I will try to explain what I am seeing here before the market opens. I have drawn some lines on the chart and I am not going to get into this too deeply as not to confuse anyone. I am seeing Hidden bearish divergence on the E/U 30 min. chart. I am also seeing a classic Triple Top and this kind of tells me that a short is in order. We could see this pair head back down toward the 89 and maybe back thru it. That is not saying that we are definately going down. I am just trying to get a handle on what I want to do if and when this gap happens. I am looking for a lower high here and if we can break the 3310 area, that would confirm the bearish trend of the moment. I am hoping for a gap up and that would play into my hand. Lets see how it works out. We also have an IB and a break of that low and I may take the counter in this situation.

Jim

Just trying to give a heads-up, here is what my broker is showing for movement so far.

Just for heads up. That trendline at the very top of my chart is a Daily trendline.

Jim

After adding this UTL I have changed my mind. I will not take a short here until this pair shows me another lower low.

Jim

I got some real data for you all. I went back to December 1st on 1 Pair, EUR/USD on the 30 minute T/F. I looked at every trade available VIA Inside bar, taking only longs above the 89 and only shorts below the 89. This is not including the Trend of the moment counters that could have been taken. There were 21 possible trades that fell under these criteria and all but 3 generated at least 20 pips. Of the 2 that didnt 1 was for 7 pips and resulted in a 20 pip loss and the other went 4 pips and resulted in a 17 pip loss. They were both at times when the market was consolidating.

On the other hand there were a total of 1595 possible pips. Now there is no way we could have caught all those, it just goes to show you how accurate this method is. The key is the 3 pip wait before we trigger our trades, because a lot go just to that trigger top or a pip over and go the other way.

THIS IS JUST ONE PAIR GUYS AND GALS!!

Don't believe me, check it out. There were plenty of counters that were against the major trend but could have been gotten VIA Trend of the Moment, also.

Jim

Not much of a gap here people. Gonna wait till the market settles down.

Jim

I will try to be more careful next time. Please read post 553 if you havent yet.

Jim

Thats 553

WOW, good call on no short

See, I put a ot of stock in trendlines, way more than most people. But there is nothing there right now and if I started trading I would be pushing it.

Jim

In post 553, I still cant believe how accurate this thing really is.

Jim

An hour ago I got a news alert that the USD is looking at lowering the key interest rate. Could that have something to do with it?