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The DIBS Method... No Free Lunch continues

  • #7,501
  • Apr 6, 2009 1:42am Apr 6, 2009 1:42am
Quoting pipy
Here 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 advance
Ill try to answer as easy as possible.

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
  • #7,502
  • Apr 6, 2009 3:07am Apr 6, 2009 3:07am
Thank you Razor for your kind answer ... it would be very welcome if you would attach a picture of some of your successful trading.
I wish you a lot of green pips.
  • #7,503
  • Apr 6, 2009 4:31am Apr 6, 2009 4:31am
Quoting pipy
Thank you Razor for your kind answer ... it would be very welcome if you would attach a picture of some of your successful trading.
I wish you a lot of green pips.
No Problems buddy,

I try to keep as much info flowing as I can, I will post more charts in the future and I will have a look at my few winners that have given me ample pips.
  • #7,504
  • Apr 6, 2009 4:44am Apr 6, 2009 4:44am
not sure if I will trade today, there is currently very little in the way of DIBs on the hourly, the 4 hourly is showing some potential dibs for later on, however there are some pairs that are closing in on Daily Trendlines and the open candles conflict (ie pair is coming to a rising trendline but open candle says sell).

i prefer to stack some odds in my favour and if im trading a 4 hour dib i want to see something that says im going the way im showing and I aint stopping before i put on a trade with as much risk.

If the trendlines do break then tomorrow is another day and the direction might be better to trade. Only time will tell
  • #7,505
  • Apr 6, 2009 5:46am Apr 6, 2009 5:46am
Quoting Razor_trader
Ill try to answer as easy as possible.

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.
What is the difference in those times?
History is written by the victors.
  • #7,506
  • Apr 6, 2009 6:22am Apr 6, 2009 6:22am
Quoting Money-RX
What is the difference in those times?
No difference, I was clarifying what 0600GMT was. Some new traders may not understand 0600 or GMT. Some people have no clue what a 24 hour clock is. So I was just stating the obvious beside the obvious, which isnt always so obvious
  • #7,507
  • Apr 6, 2009 6:25am Apr 6, 2009 6:25am
did anyone take the IB breakdown off the 00:00 EST on the EURUSD ..could have been a nice trade ..


I was at work so could not take it
Knock at the sky and feel the thunder
  • #7,508
  • Apr 6, 2009 6:56am Apr 6, 2009 6:56am
Quoting simply123
did anyone take the IB breakdown off the 00:00 EST on the EURUSD ..could have been a nice trade ..


I was at work so could not take it
I didn't - whilst it panned out to free-ride, I was struggling to see any price action from higher time frame bars. Whilst it broke out of the lower side of the 1hr channel for the last few hours, it was downside of the 4h channel without making a decisive move. In hindsight, perhaps it was a sufficiently strong breakout to merit having taken it, considering only a 16pip IB range.

I've taken the EURGBP at 1200GMT, again a tight range and the 1d and 4h trends are running with the 1h range, so it looks promising. Just gone to free-ride
  • #7,509
  • Edited 7:29am Apr 6, 2009 7:16am | Edited 7:29am
@ SlideDog :- was it a long trade on the GBP USD ???


Well :- it seems that the only way that US can bring up its USD is by bringing its stock market down
Knock at the sky and feel the thunder
  • #7,510
  • Apr 6, 2009 7:37am Apr 6, 2009 7:37am
no open IB on GBP USD - I'm short on EURGBP
  • #7,511
  • Apr 6, 2009 7:37am Apr 6, 2009 7:37am
Friends i have a strange question that i hope has been answered before but am unable to find that particular post...

Question :- Suppose we had an IB ( bar 1 ) you all ( not me in the picture yet ) took a position off the breakout of that IB and then still it has not met our profit target and comes back down So till now two bars are formed.Now when i see the third bar making a breakout of the IB bar ( bar 1 ) can i enter a trade ??? ..basically the question is that..can one enter a position off an IB that was created a few bars ago ??


Opps... osrry slidedog.. i misread it
Knock at the sky and feel the thunder
  • #7,512
  • Apr 6, 2009 7:45am Apr 6, 2009 7:45am
Quoting simply123
Friends i have a strange question that i hope has been answered before but am unable to find that particular post...

Question :- Suppose we had an IB ( bar 1 ) you all ( not me in the picture yet ) took a position off the breakout of that IB and then still it has not met our profit target and comes back down So till now two bars are formed.Now when i see the third bar making a breakout of the IB bar ( bar 1 ) can i enter a trade ??? ..basically the question is that..can one enter a position off an IB that was created a few bars ago ??


Opps......
hey simply,well simple answer as i understand it is no. inside bars are only relevant until there broken.

sorry for the short answer but i'm not well atm

catch you guys next week
  • #7,513
  • Apr 6, 2009 9:18am Apr 6, 2009 9:18am
Quoting simply123
Friends i have a strange question that i hope has been answered before but am unable to find that particular post...

Question :- Suppose we had an IB ( bar 1 ) you all ( not me in the picture yet ) took a position off the breakout of that IB and then still it has not met our profit target and comes back down So till now two bars are formed.Now when i see the third bar making a breakout of the IB bar ( bar 1 ) can i enter a trade ??? ..basically the question is that..can one enter a position off an IB that was created a few bars ago ??


Opps......
Short answer No and heres the Why.

IB are generally a break out trade. So if you missed the breakout whilst others are in it then you need to look for the next. The reason being is that if the market comes back to the location (doesnt matter how long after) then the probability that it could have been a fake is increased, meaning that you would be looking to take the IB after price has done it thing, decided it didnt like its thing and subsequently has come up.

If we get an IB we are looking for it to

A)create a new trend (this is assuming the IB was in opposite to current trend ie bullish trend, bearish IB) or

B)continue a trend (if the trend is bullish and we have a bullish IB). If an IB has broken but not continued then it is more probable to say that the CURRENT trend may continue its way.

Either way we want to experience the first breakout, not a second otherwise you could trade almost any IB from any other day.

Hope this clarifies
  • #7,514
  • Apr 6, 2009 9:19am Apr 6, 2009 9:19am
Quoting icarusfx
hey simply,well simple answer as i understand it is no. inside bars are only relevant until there broken.

sorry for the short answer but i'm not well atm

catch you guys next week
Get well bud. I spent most of my friday and weekend battling the damn flu. We will see you next week or asap
  • #7,515
  • Apr 6, 2009 9:22am Apr 6, 2009 9:22am
Quoting simply123
did anyone take the IB breakdown off the 00:00 EST on the EURUSD ..could have been a nice trade ..


I was at work so could not take it
I havent got any IB's on the EUR after london open, did you mean the 2 before london open
  • #7,516
  • Apr 6, 2009 9:52am Apr 6, 2009 9:52am
I want to start by thanking everyone who has contributed to this thread in a positive manner. I am so glad that there are traders out there like PC who come in and give us a sample of the ways they trade, and the fact that they are so very simple to use day in day out. I am a better trader for coming across this thread. It has opened my eyes and given me the great AH HA moment of my life.

The reason I am being so sentimental (tear) is I am going to start a journal of my own. I know that thread providers give us the opportunity to read through the craft, try it and see how comfortable it is for us to trade. I thank so very many of you. I have only been here for a small period of time, and in that time I hope I have helped some with my views from trading. I am still going to be a frequent visitor of this thread, incase there is some that still need help along the way.

The main reason for starting my own little journal is to keep track for myself in my environment without encroaching too much on this thread with is more to do with the trading system side and not for me to log my trades.

I will start it up within the next week. I just have to work on how I am going to go about it. There may be a time in the next few weeks to months, that my wife is going to work somemore and allow me time to perhaps dabble in this some more. If it works out for us then she may give me permission to sell my little business and put some extra money in here (wont be much though she assures me of that)

I am truely confident in this method and believe that it can be a gateway to future succes IF you are disciplined enough.

Take care friends (this is not goodbye)
  • #7,517
  • Apr 6, 2009 9:57am Apr 6, 2009 9:57am
@ icarusfx and razor thanks a lot .. even i was thinkinf of the same.. thanks for clarifying

Razor.. do post the link of ur journal here


EURUSD>>>> rocked

@ razor... the IB was formed at the 00:00 EST bar and trade was taken at the 01:00 est bar ( breakdown level was .3561- filter..now its at 3405
Knock at the sky and feel the thunder
  • #7,518
  • Apr 6, 2009 8:53pm Apr 6, 2009 8:53pm
Quoting simply123
@ icarusfx and razor thanks a lot .. even i was thinkinf of the same.. thanks for clarifying

Razor.. do post the link of ur journal here


EURUSD>>>> rocked

@ razor... the IB was formed at the 00:00 EST bar and trade was taken at the 01:00 est bar ( breakdown level was .3561- filter..now its at 3405
Nice work. I am currently playing with my charts and some of the timeframes are out so I am mending them as we speak (pain in the ass). Looking for some IBs today.

Happy trading to you all
  • #7,519
  • Apr 7, 2009 1:07am Apr 7, 2009 1:07am
i dont see much changing from yesterday with the Eur and Gbp (my pairs). They still look to be heading down. Open candle says down and we are yet to see a higher/low or higher/high. Give me an IB so I can get on this gravy train.

take care all
  • #7,520
  • Apr 7, 2009 3:45am Apr 7, 2009 3:45am
short GBP/USD on the last hour IB
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