DislikedHere are a few questions for those who successfully use DIBS method:
- Do you immediately jump in into trade when 6.00bar is broken out or you wait for better entry (discount)?
-How do you select which currency (par) you will trade for current day?
-Do you use pending orders?
Thanks in advanceIgnored
0600 GMT or London open look at that candle ONCE it has closed (caps are not yelling just highlighting ). If its bullish then Bias for the day is long, bearish is short.
we look for IB for about the next 9 -10 hours as this is where the trading volume is and the chance of a breakout being a breakout (not a fakeout) is greater.
Currency pairs, we generally trade the majors and it is up to you how you pick them. You want to pick the best bang for you bucks pair but this changes on given days. I prefer sticking to EUR/USD and GBP/USD but that is because I have traded these pairs for years.
Once you have an IB you set up a STOP order so that when the markets meets you, then and only then are you in. You stop loss is 1 pip below the LOW/HIGH (depending on the direction you take) and your first limit is at 1:1 plus spread. After that the take profit on the rest is up to you. Some trail, so use SMA and other indicators and some have an assigned profit target.
The more you trade this method the more you will learn which bars have a greater probability. As i mentioned last week, Having a pin bar as an IB can be great depending on we were are in the market but you will learn others.
Your best step is to first trial it on a demo or a very small live account trading micro lots (i prefer this method because you learn along the way to deal with your emotional side before investing bigger money) and trial it for the next 6 -12 months. (another reason a small live account can be better, you are more likely to trade your system for 6-12 months properly when you have money involved. Demoing can be good for a short period of time but you really really need to be patient and focus on it like its real money.
Take care m8