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  • #8,141
  • Jun 17, 2009 5:15pm Jun 17, 2009 5:15pm
PUMMELED yesterday, that was an ugly day for DIBS. On 3 of my trades we got OB which got me in with about 5 pips of profit and reversed quickly.

Such a YoYo month so far. Stick in there.

Razor
  • #8,142
  • Jun 17, 2009 5:18pm Jun 17, 2009 5:18pm
yea was really ugly day oh well happens
  • #8,143
  • Jun 17, 2009 7:15pm Jun 17, 2009 7:15pm
Quoting Razor_trader
PUMMELED yesterday, that was an ugly day for DIBS. On 3 of my trades we got OB which got me in with about 5 pips of profit and reversed quickly.

Such a YoYo month so far. Stick in there.

Razor
Hi Razor, a few words of encouragement from one of Peter's early posts;

".......Other markets weren't as nice as the Pound, and had a lot more 1:1 profit targets hit and then subsequent stop outs.

The secret to success as a trader, in my humble opinion; is find a very low risk method to enter the markets and learn to wait.

-Peter Crowns-"

Z
  • #8,144
  • Edited Jun 18, 2009 2:49am Jun 17, 2009 7:19pm | Edited Jun 18, 2009 2:49am
Wasn't around for this today but thought i would share it. 1:1 reached on the first lot but the second lot would have been stopped out.

The major long term trend is up so ideally we should be looking for long entries and not shorts!

Z
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  • #8,145
  • Jun 18, 2009 4:02am Jun 18, 2009 4:02am
Hello,
I am new to DIBS and am currently reading through this thread. I have already read through all of Bemac's original thread on this stuff. Boy, Peter really knows his stuff. I'm a regular on the J16 Chart Thread and learned about this thread from there.

Got a chart here for the GBP/usd. If I understand the setup correctly, this trade offered a long trade right on the open of the day (12:00am CT). This trade would have reached 1:1 and more before eventually being stopped out.
But, when we were stopped out, we could logically reverse and go short. We would now be sitting locked in 1:1 and in a nice profit, sitting on a support level though.

Am I missing anything? I'm guessing my indicators are not quite as up to date as what you guys use. I'm just updating it as I read through this thread. Up to post 2400 now. Trying to read about 800 posts/day.

Happy trading.

Josh
Attached Image
  • #8,146
  • Jun 18, 2009 4:11am Jun 18, 2009 4:11am
Shorts are scalps. Longs are Longer term trades for this EY.

B,
Tom
  • #8,147
  • Jun 18, 2009 4:21am Jun 18, 2009 4:21am
Quoting Jduester
Hello,
I am new to DIBS and am currently reading through this thread....
Welcome Josh, nice to have you here. I've also read through all of James16 thread and sometimes contribute there also.

You got the setup correctly however there is a filter that Peter posted in one of his post that is easily over looked. He said that we should take trades only in 'the long term direction'!

We've only recently established that the close at 12midnight the prior day should act as a guide. If the DIBS sets up a long entry towards this close, we pass on the trade. The red line here is the close at 12midnight and i would have been looking for short entries.

Another filter would be to look for the long term trend on the daily chart (attached). This shows that the higher probability trades should be heading south but taking long trades should be managed more closely imo.

I did however take the pin bar even though it was in a little traffic and managed it very closely.

Z
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  • #8,148
  • Jun 18, 2009 4:29am Jun 18, 2009 4:29am
Quoting tfflyer
Shorts are scalps. Longs are Longer term trades for this EY.

B,
Tom
A break to the south would be more appealing to me. Especially if we break through 133.000

Z
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  • #8,149
  • Jun 18, 2009 4:32am Jun 18, 2009 4:32am
Quoting zuret9
Welcome Josh, nice to have you here. I've also read through all of James16 thread and sometimes contribute there also.

You got the setup correctly however there is a filter that Peter posted in one of his post that is easily over looked. He said that we should take trades only in 'the long term direction'!

We've only recently established that the close at 12midnight the prior day should act as a guide. If the DIBS sets up a long entry towards this close, we pass on the trade. The red line here is the close at 12midnight and i would have been looking...
Thanks for the update Z. So, If I'm understanding correctly, then we mark our charts at 00:00 GMT as well as at 5:00 GMT (or 6:00GMT). Then we only trade long when we are above BOTH prices and only short when we are below BOTH prices...

If this is correct, it makes a lot of sense. First, we don't want to trade a ranging market. I've recently read that IBs are best taken after we have had some move. Second, we don't want to necessarily trade when we keep flipping between above/below the 5:00GMT price because this is in essence saying we are ranging.

Comparing the 0:00 and 5:00 GMT prices and trading accordingly gives us a direction, and trading in the direction of the trend, be it only 5 hours, is a good thing.

Thanks... will get back to reading now. Just thought I'd introduce myself.

Josh
  • #8,150
  • Jun 18, 2009 4:35am Jun 18, 2009 4:35am
Am currently watching this closely. Looks promising, lets see how she breaks!

Z
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  • #8,151
  • Jun 18, 2009 4:38am Jun 18, 2009 4:38am
Quoting Jduester
Thanks for the update Z. So, If I'm understanding correctly, then we mark our charts at 00:00 GMT as well as at 5:00 GMT (or 6:00GMT). Then we only trade long when we are above BOTH prices and only short when we are below BOTH prices...

Thanks... will get back to reading now. Just thought I'd introduce myself.

Josh
Thats correct Josh. Happy reading.

Z
  • #8,152
  • Jun 18, 2009 4:47am Jun 18, 2009 4:47am
Possible scalp trade in the EU. Sideways market am passing on this one.

Z
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  • #8,153
  • Jun 18, 2009 5:27am Jun 18, 2009 5:27am
My short entry was very close. I didn't get a close outside the arrow so am still on the sides.

Still watching, lets see how she develops.

Z
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  • #8,154
  • Jun 18, 2009 5:48am Jun 18, 2009 5:48am
  •  MPP
  • Joined Jun 2007 | Status: Be yourself, everyone else is taken | 2,734 Posts
Quoting zuret9
Thats what i thought initially but if you take a closer look at his charts, you'll notice that each trade was at least 6bars (1hour) away from where he drew the midnight line.

Also if midnight was 6am for him he would be breaking one of his rules (taking trades in the first 6-9hours of a session). Some of his trades are over 12hours from where he drew his midnight lines!

There is a old saying in the pits; "never sell or buy a quite market". I believe this is one of the reasons why Peter recommends using 6am GMT as a time to start looking for...
when comparing charts, look at the date and then open the same period on your brokers charts, broker times vary and can cause charts to be miss undestood.

Peters only line in the sand is 0600gmt - keep it simple is his rule, don't change it for summer/winter time changes.

up/down days are referenced to this line and we also look to see if the day is up on the previous day and also the weekly open price.

the first 6-9 hours are the most profitable as this is when london session is open and runs into the NY session - the largest amount of money generally flows at this time, but we should not ignor the tail end of the NY session which is outside the 6-9 hours, i'll trade an IB from 0600 to 1900 hrs - backtesting has shown good results throughout this timefame, but the quiter periods yeld little, something to watch for is the hour prior to the london open, this is when the asian session is preping it's trades for the london session and things sit still and then provide an initial breakout for a quick scalp.

just my 2 pips worth, but in the end we all find our own way that suits our timezone and trading times

best of pips all
  • #8,155
  • Jun 18, 2009 6:29am Jun 18, 2009 6:29am
Quoting MPP
when comparing charts, look at the date and then open the same period on your brokers charts, broker times vary and can cause charts to be miss undestood.

Peters only line in the sand is 0600gmt - keep it simple is his rule, don't change it for summer/winter time changes.

up/down days are referenced to this line and we also look to see if the day is up on the previous day and also the weekly open price.

the first 6-9 hours are the most profitable as this is when london session is open and runs into the NY session - the largest amount...
I agree with you on most of your points. Keeping it simple is key. For the DIBS we draw a line in the sand at 6am GMT and the midnight is just a guide. From my understanding of candlestick patterns, the inside bar setup is a trend continuation pattern.

I've attached a document of what Peter wrote which might lead one to believe that we should trade in the direction of a longer term trend!

I urge everyone to find what works for them and 'knock em dead'.

Z

I also look at sessions outside of the London Open.
Attached File(s)
File Type: doc Clarification to the DIBS Method.doc   31 KB | 2,679 downloads
  • #8,156
  • Jun 18, 2009 6:31am Jun 18, 2009 6:31am
Double inside bar did not generate a sell signal but am still watching for a possible DIBS..

Z
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  • #8,157
  • Jun 18, 2009 6:37am Jun 18, 2009 6:37am
  •  MPP
  • Joined Jun 2007 | Status: Be yourself, everyone else is taken | 2,734 Posts
Quoting zuret9
I agree with you on most of your points. Keeping it simple is key. For the DIBS we draw a line in the sand at 6am GMT and the midnight is just a guide. From my understanding of candlestick patterns, the inside bar setup is a trend continuation pattern.

I've attached a document of what Peter wrote which might lead one to believe that we should trade in the direction of a longer term trend!

I urge everyone to find what works for them and 'knock em dead'.

Z

I also look at sessions outside of the London Open.
peter paid reference to the higher TF's, a clear indication that we should look to trade with the trend. but there is also the counter trend trades that are available to us - we must remeber that the markets move in waves and if we can idenetify a channel and there is room to trade - this take time to learn and a clear understanding of PA on higher TF's is a must to gain the most from this method

Peter also made it clear that he loads certain trades compared to others - is this his way of minimising risk on counter trend trades and maximising the profit on the longer term trades - still working on this issue


you will also see on his charts a 79sma and a 90sma - what do you make of these?
  • #8,158
  • Jun 18, 2009 6:43am Jun 18, 2009 6:43am
  •  MPP
  • Joined Jun 2007 | Status: Be yourself, everyone else is taken | 2,734 Posts
Quoting zuret9
Double inside bar did not generate a sell signal but am still watching for a possible DIBS..

Z
i find that double IB's have produced better resulst and these meet my criteria

below todays open
todays open was below yeterdays open
and also below mondays (weekly) open - if only by a few pips

each to there own as they say
  • #8,159
  • Jun 18, 2009 7:07am Jun 18, 2009 7:07am
Quoting MPP
i find that double IB's have produced better resulst and these meet my criteria

below todays open
todays open was below yeterdays open
and also below mondays (weekly) open - if only by a few pips

each to there own as they say


Z
  • #8,160
  • Jun 18, 2009 7:33am Jun 18, 2009 7:33am
Quoting MPP

you will also see on his charts a 79sma and a 90sma - what do you make of these?
Very interesting question! I personally don't use these two sma however once i saw them on Peter's charts i placed them on mine to see if i could use them as possible filters and here is what i observed (please note these are just my observations):

1: When 79sma is above 90sma, long trades seem to carry the higher probability
2: When price is above both sma long entries seem to be the higher probability trades and when price is below both sma, short entries seem to be higher probability trades
3: For each pair, price only moves away from the sma a certain average distance. Knowing this, i've noticed when we are about that distance from the sma, there is a high probability of a reversal or counter trend trades seem to have worked better. (e.g on Eur/Usd, whenever we've been over 160pips away from the sma, we've generally had a correction back to the sma or a weak rise/fall there after. Generally)
4: I looked at the slope of the sma but couldn't really pin point any advantage.

Am sure there are more advantages and disadvantages in using the 70sma and 90sma but i personally haven't been using them.

Z
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