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4H 5EMA System

  • #2,801
  • Edited 3:53am Jan 26, 2009 3:18am | Edited 3:53am
Quoting fourxtrader

This may be elementary to some but I hope it will be a good training exercise for others.




Who would be willing to offer the potential [size=2]trades possibilities based on the 4H 5EMA [i][font=Verdana][color=#0000ff][size=3][b]method from the...
4 hourly

A was a setup bar to go long with stop loss for the short and long entry at its top.

B and C were two failed reversal bars therefore A becomes invalid as a setup bar.

On close of C we exit the short on 50% rule and remove the 2 orders sitting at the top of A, position is flat, wait for a new setup bar.

5 min to close for weekend break did not come into action.

D is the new setup bar to go short.

Short opens by E, stop loss at the top of D, reverse long placed at its top on close of the reversal bar as well.

Reversal bar E is also a setup bar to go long.

Daily

Position still short.
Regards
  • #2,802
  • Jan 26, 2009 4:21am Jan 26, 2009 4:21am
Quoting fourxtrader
B candle:
* fails to make a lower low
* qualifies as a failed reverse candle because it does not make a new high or fill the buy order
* at its close the buy stop order (and stop loss) is repositioned above its high @ 1.3541 (1.3532 plus 5 pips + spread)
If the bar doesn't make a new low and doesn't trigger the buy order, thus being a failed reversal bar, the buy stop order and the SL on the openned short stay above the previous bar;
You don't move them when you get failed reversal bars.
  • #2,803
  • Jan 26, 2009 9:39am Jan 26, 2009 9:39am
Hi everybody.
Last bar from friday was set up bar for short (A on pic) and open price for first bar today (B ) was lower as from set up bar and we start this week with open sell with price 1.3682(open price from B) SL 1.3827 . Bar B also set up bar for long , we change SL for sell on 1.3692 and place pending buystop with price 1.3692 and SL 1.3543
On bar C our sell was stopped and triggered buy. After C closed we place reverse order 1.3543 SL 1.3871 .
Bar D is set up bar for short , we deled revers order place pending sellstop 1.3774 SL 1.3939 and change SL for buy on 1.3774
And now it our current situation
Please somebody confirm.
Thanks
Peter
Attached Image (click to enlarge)
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  • #2,804
  • Jan 26, 2009 10:21am Jan 26, 2009 10:21am
Quoting howard
4 hourly

A was a setup bar to go long with stop loss for the short and long entry at its top.

B and C were two failed reversal bars therefore A becomes invalid as a setup bar.

On close of C we exit the short on 50% rule and remove the 2 orders sitting at the top of A, position is flat, wait for a new setup bar.

5 min to close for weekend break did not come into action.

D is the new setup bar to go short.

Short opens by E, stop loss at the top of D, reverse long placed at its top on close of the reversal bar as well.

Reversal bar E...
Howard,

Thank you for the corrections.

I'm learning and I find this the best way by writing out
a trading plan / analysis.

So are you only trading daily?

Question:

If you aren't currently in a trade, and have been away from the
charts for a time, where a new set-up and reverse candle has
developed and a buy or sell stop order 'could' have been triggered...
are there provisions in the rules that allow for a late entry into that
trade that is already in it's second or later candle of movement?

Much appreciated.

Dr. D.

  • #2,805
  • Jan 26, 2009 10:25am Jan 26, 2009 10:25am
Quoting tonirai
If the bar doesn't make a new low and doesn't trigger the buy order, thus being a failed reversal bar, the buy stop order and the SL on the openned short stay above the previous bar;
You don't move them when you get failed reversal bars.

Tonirai,

I appreciate your comments and corrections. Your frequent posts
are valuable.

Dr. D.

...... Portugal, I have a son who lived there for two years. Learned
the language and speaks fluently. He is now entering med school here
in the U.S.
  • #2,806
  • Jan 26, 2009 10:25am Jan 26, 2009 10:25am
Quoting pitpiter
Hi everybody.
Last bar from friday was set up bar for short (A on pic) and open price for first bar today (B ) was lower as from set up bar and we start this week with open sell with price 1.3682(open price from B) SL 1.3827 . Bar B also set up bar for long , we change SL for sell on 1.3692 and place pending buystop with price 1.3692 and SL 1.3543
On bar C our sell was stopped and triggered buy. After C closed we place reverse order 1.3543 SL 1.3871 .
Bar D is set up bar for short , we deled revers order place pending sellstop 1.3774 SL 1.3939 and...
The last setup bar to go long was the one after B on your chart, that has a lower low.
Regards
  • #2,807
  • Jan 26, 2009 10:27am Jan 26, 2009 10:27am
Quoting fourxtrader
Howard,

Thank you for the corrections.

I'm learning and I find this the best way by writing out
a trading plan / analysis.

So are you only trading daily?

Question:

If you aren't currently in a trade, and have been away from the
charts for a time, where a new set-up and reverse candle has
[i][color=#0000ff]developed...
You have to wait for the next setup bar, there is no provisions for late entry
Regards
  • #2,808
  • Jan 26, 2009 10:34am Jan 26, 2009 10:34am
Quoting pitpiter
Hello , if better and uderstandable answer for You will be in russian e-mail me .
Regards
Peter
Hi!

I work Alpari US now, my current chart is - attached file( I hope the same your)

Bar 1 - it was my first set up bar for long (H-1,3679; L-1,3547)
Order buy stop 5pips+sp(3 pips according broker info for G/U pair) above High =1,3687
S/L -1,3534 (5 pips+ sp belowe Low)

Bar 2 (H-1,3860; L-1,3562)-successive reversal bar: trigerred buy stop for set up bar N1
when bar 2 was closed - reversal order was placed:
sell stop on the level of S/L for Bar N1 - 1,3534
S/L -1,3868 (H-1,3860+5pips+3pips spread)

Question 1:As I have understand the system - reversal order we should place in any case (even if it is not set up bar for short/long - in my situations bar 2 is not set up bar for short as touch both EMA, but short reversal order is placed)
Question 2:sell stop for rev.order on the level of S/L for set up bar N1?
or 5 pips+spread below reversal bar N2 Low (in this situations both are aprox the same)

Bar 3 (H-1,3905; L-1,3779)- set up bar for the short
sell stop 1,3771 (5pips+sp) below L
S/L - 1,3938 (5 pips+sp) above H

Bar 4 - current not closed bar - profit aprox 2 500
Fixed profit mannualy? Not alloved! Will act according the rules! Waiting

Please, comment

Regards
Attached Image (click to enlarge)
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  • #2,809
  • Edited 11:00am Jan 26, 2009 10:44am | Edited 11:00am
Quoting howard
The last setup bar to go long was the one after B on your chart, that has a lower low.
They have equal low 1.3548
EDIT
I do not know how it possible , on both my comuters for Alpari US I have low for this 2 bars are equal , but on chart victordoctor it lower for next bar 1 pip
And now I check high for candle 1 on pic victordoctor , in my metatrader it 1.3680 , how can be possible this different for the same broker?
Can somebody confirm value from this bars?
Thanks
Peter
  • #2,810
  • Jan 26, 2009 11:16am Jan 26, 2009 11:16am
Quoting pitpiter
They have equal low 1.3548
EDIT
I do not know how it possible , on both my comuters for Alpari US I have low for this 2 bars are equal , but on chart victordoctor it lower for next bar 1 pip
And now I check high for candle 1 on pic victordoctor , in my metatrader it 1.3680 , how can be possible this different for the same broker?
Can somebody confirm value from this bars?
Thanks
Peter
A couple of ticks are not important, different feeds by different brokers.

However, even if they have equal lows we use the 2nd one as setup bar.
Regards
  • #2,811
  • Jan 26, 2009 11:20am Jan 26, 2009 11:20am
Quoting viktordoktor

Bar 1 - it was my first set up bar for long (H-1,3679; L-1,3547)
Order buy stop 5pips+sp(3 pips according broker info for G/U pair) above High =1,3687
S/L -1,3534 (5 pips+ sp belowe Low)
I do not know what is sp mean , S/L for this trade with Your chart must be lower-5 pips , any words 1.3542 ( if sp is spread , we do not add spread for stoploss long only for price )
Quoting viktordoktor
Bar 2 (H-1,3860; L-1,3562)-successive reversal bar: trigerred buy stop for set up bar N1
when bar 2 was closed - reversal order was placed:
sell stop on the level of S/L for Bar N1 - 1,3534
S/L -1,3868 (H-1,3860+5pips+3pips spread)
we place revers order after close bar , which triggered buy with price equal SL for actual buy and SL , based on higher beetwen bars 1 and 2 in Yours situation +5 + spread 1.3868
Quoting viktordoktor
Question 1:As I have understand the system - reversal order we should place in any case (even if it is not set up bar for short/long - in my situations bar 2 is not set up bar for short as touch both EMA, but short reversal order is placed)
Question 2:sell stop for rev.order on the level of S/L for set up bar N1?
or 5 pips+spread below reversal bar N2 Low (in this situations both are aprox the same)

Bar 3 (H-1,3905; L-1,3779)- [color=black]set...
Yes , You good understood this case , ( we do not make revers for revers order only)
Quoting viktordoktor
Bar 4 - current not closed bar - profit aprox 2 500
Fixed profit mannualy? Not alloved! Will act according the rules! Waiting


Regards
we place pending sellstop order with price in your case Low-5( we do not add spread for price for sell order , only for stoploss) 1.3774 SL 1.3913
And we change stoploss for buy on 1.3774 , in that case if our buy was stopped in the same time was triggered our sell.
Good luck
Peter
  • #2,812
  • Jan 26, 2009 11:25am Jan 26, 2009 11:25am
Quoting howard
A couple of ticks are not important, different feeds by different brokers.

However, even if they have equal lows we use the 2nd one as setup bar.
In this situation, if two bars have the same low and the second bar has a lower high, we use the second bar for the setup to go long (I suppose that's what you mean).

What I have is aproximately the same as pitpiter.
On Alpari UK (five digit broker):
First bar -> high = 1.36850; low = 1.35466;
Second bar -> high = 1.36805; low = 1.35477.

So the first bar was my setup bar.
  • #2,813
  • Jan 26, 2009 11:29am Jan 26, 2009 11:29am
Quoting howard
However, even if they have equal lows we use the 2nd one as setup bar.
Thanks , it change my understanding and way which i looking on bars like that . I'm thinking about this bars as faild reversal bar...
Thanks
Peter
  • #2,814
  • Jan 26, 2009 11:35am Jan 26, 2009 11:35am
Quoting fourxtrader
...... Portugal, I have a son who lived there for two years. Learned
the language and speaks fluently. He is now entering med school here
in the U.S.
Yes, small country by the sea, with good weather (not so much these days)

But I was born in France and lived there for 8 years, so I speak French, too (I never stopped practising the language because I have lots of family and friends there).

By that age, I already spoke English too
  • #2,815
  • Jan 26, 2009 11:43am Jan 26, 2009 11:43am
viktordoktor:

According to you chart, you got the rules right, but I see one thing wrong:
You don't add the spread on sell orders (those are sell stops & SL from buys). You only add that to the buy orders (buy stops & SL from sells).
  • #2,816
  • Jan 26, 2009 11:43am Jan 26, 2009 11:43am
Quoting pitpiter
Uuuups
Sorry El Dee , but after Your post http://www.forexfactory.com/showpost.php?p=2480902&postcount=2680 I been comletly sure about You girl.
Sorry one time more , english is not my mother languige .
Peter.
Ahh - I see! Mrs Dee is my wife. She thought the news about my sex change was very funny - but she says that she always had her suspicions!!
You don't have to be right, just don't be too wrong
  • #2,817
  • Jan 26, 2009 11:47am Jan 26, 2009 11:47am
Quoting tonirai
In this situation, if two bars have the same low and the second bar has a lower high, we use the second bar for the setup to go long (I suppose that's what you mean).
Hi Toni.
Is that important about making lower high? If for ex next bar make equal low and make higher high( about 2-3 pips) ,and did not triggered order . Which bar will be set up bar ?
Thanks
Peter
  • #2,818
  • Jan 26, 2009 11:55am Jan 26, 2009 11:55am
Quoting pitpiter
Hi Toni.
Is that important about making lower high? If for ex next bar make equal low and make higher high( about 2-3 pips) ,and did not triggered order . Which bar will be set up bar ?
Thanks
Peter
I would move the stop order to 5 pips + spread above the higher high, remembering that this system is about support and resistance levels.
You don't have to be right, just don't be too wrong
  • #2,819
  • Jan 26, 2009 11:58am Jan 26, 2009 11:58am
Quoting pitpiter
Hi Toni.
Is that important about making lower high? If for ex next bar make equal low and make higher high( about 2-3 pips) ,and did not triggered order . Which bar will be set up bar ?
Thanks
Peter
What qualifies a bar as a setup bar for a long (beside going through the ema) is making a lower low;

If it makes the same low, but doesn't trigger the buy stop (which is already there since the previous bar's close), everything stays the same.

That means that, on the chart, it can make a higher high by 4 pips, and that doesn't matter, since it made the same low. It counts as a failed reversal bar.
  • #2,820
  • Jan 26, 2009 12:02pm Jan 26, 2009 12:02pm
Quoting El Dee
I would move the stop order to 5 pips + spread above the higher high, remembering that this system is about support and resistance levels.
Yes, but that's also why we have a rule in which setup bars expire after two consecutive failures (to account for indecision, sideway movements).

What I said is the rule acording to Sterling. It has happen in the past.
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