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James16+Rayanmcd(Jan kone) and ME 7 replies

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Jankone M5 thread

  • #641
  • Jul 14, 2009 10:43am Jul 14, 2009 10:43am
under low / above high or just a few pips because moneymanagement...



Quoting FOURX
Jankone


Where do you place your stops on these pinbars.

thanks
  • #642
  • Jul 14, 2009 7:25pm Jul 14, 2009 7:25pm
Quoting Jankone
I think you can't know why. but you can know and learn "how"
( when to exit if it's 15 min +- 2 pips, how to set sl, how to set moneymanagement etc)

i think it was good looking setup. next time with trend trading you can have this small loss 2-3x $ back
Thanks for your encouragement, Jankone! I have lots of faith in this system, I'll keep working on practicing and on myself
  • #643
  • Jul 14, 2009 7:30pm Jul 14, 2009 7:30pm
Quoting Jlr
No real reason really, if you wanted to be picky though you could ask for a better bar, a close within the previous bars range is the more prefered bar. Also you could play the break of the bars low, will keep you out of some bad ones, not sure honestly though if it is more profitable or not, but its how I was taught to play them from j16 thread. Of course you should understand this isn't like the huge probability method, just a way to put the odds slightly in your favor and to do it over and over and over. Or you could be pickier, take less set...
Hi Jlr, I'm also not so sure whether entry on breakout of PB is better than close of PB. It only means fewer trades taken, but then for losing trades, you lose more unless you strictly normalize SL to % of capital. You seem to have done lots of thinking and testing; always good to hear your opinion
  • #644
  • Jul 14, 2009 10:20pm Jul 14, 2009 10:20pm
Quoting Jankone
it was "joke"
another , same example is like poker cards, you just play with 10JQKA or pairs...
it's same thing with pinbars...if you play 2-7 combo, most time you will be losing money..
so, u also play poker, huh. Nice analogy.
i would never play a 2-7 combo though.

Dont worry, jankone, i knew what u said was a joke.
all im saying is, there is also a saying that goes "u aren't what u drive".
meaning, if u have a porsche or a huge house, does not mean u are really rich. at the same time, if u wear cheap shirt, pants, watch, or drive a crappy second hand car, doesnt mean u are poor.

One fine example is billionaire Warren Buffett. he drives a second hand car, even though he is a billionaire.
  • #645
  • Jul 14, 2009 11:56pm Jul 14, 2009 11:56pm
Quoting Warren
Hi Jankone, nice trade there!
Just want to ask you: would you take the setup earlier? I saw two ways of drawing the RSI Highs, one gives div and the other doesn't. Which of the two recent Highs carry more significance? Thank you!
Warren,
if i may answer...
why not take that PB?
it's CT (above the EMAs) + RSI bearish div. + PB

Also, no one noticed that the divergence line u plotted/drew is incorrect in relation to the PB u are referring to.
There WAS in fact, a bear. div on RSI. the divergence/s u plotted are for the 4th/5th bar prior the PB. draw a line over the highs of those bars & the PB high & u will get the divergence.
  • #646
  • Jul 15, 2009 12:01am Jul 15, 2009 12:01am
Quoting Warren
Hi guys, can you help point out why I should not take this trade (the PB in shade), even though it's with trend? Thanks!
Warren,
all the oscillators are turning up.
this same trade is similar with your previous post here. i responded to that here.
i said "....in fact, u opened a buy trade when the MACD was crossing the "0" level. IMO, the best trades are "extracted" on/near the Bolli. extremes -- the upper or lower Bolli. bands. the middle Band trade setups u should be more careful."
  • #647
  • Edited 7:22am Jul 15, 2009 12:18am | Edited 7:22am
Here's a tip on using BB...
I believe Ryanmcd has never mentioned this.

I'll use the chart posted here by happy camper.
In that eur$ M5 chart, u can see the huge downmove on the right side of the chart. (time i think is July8 +/- 17.55, where the RSI reversed from the 50 level, starting around the 1.3915 area, & price was touching the EMAs & mid-BB)
U'll notice price "hugging"/touching the lower BB. when price is hugging/touching the upper/lower BB, it is usually (but not always) a trend continuation signal.
a confirmation for this would be using oscillators or other momentum/strength indicators (Stoch, MACD, CCI, Momentum, etc). if price is making a lower low (or higher high, in an uptrend) & the indicator/oscillator is doing the same, u can expect further trend continuation. if price is making a lower low but the indicator/oscillator is making a higher low (or lower high in an uptrend), u can expect a pause or reversal coming.
On that chart, u can see price continued its downmove until 19.15. shortly prior this time, price is not touching the lower Bolli anymore & RSI has been making higher lows or divergence.

Watch several charts & look for this (upper/lower Bolli touch/hug). U will eventually have another "a-ha" moment.
  • #648
  • Jul 15, 2009 1:53am Jul 15, 2009 1:53am
Quoting supremeChaos
Warren,
if i may answer...
why not take that PB?
it's CT (above the EMAs) + RSI bearish div. + PB

Also, no one noticed that the divergence line u plotted/drew is incorrect in relation to the PB u are referring to.
There WAS in fact, a bear. div on RSI. the divergence/s u plotted are for the 4th/5th bar prior the PB. draw a line over the highs of those bars & the PB high & u will get the divergence.
Hi supremeChaos,
you are always welcome to answer
Yes, I also saw that div and in fact it's me who drew that div, that's why I said "I saw two ways of drawing the RSI Highs, one gives div and the other doesn't"
So my real question is in such a case, where the previous H of RSI does not give div but an earlier H gives div, it may also be tradable if the PB's location is good (i.e. upper/lower BB)? If the PB's location is not so ideal, is it better to avoid?
  • #649
  • Jul 15, 2009 2:08am Jul 15, 2009 2:08am
Quoting supremeChaos
Warren,
all the oscillators are turning up.
this same trade is similar with your previous post here. i responded to that here.
i said "....in fact, u opened a buy trade when the MACD was crossing the "0" level. IMO, the best trades are "extracted" on/near the Bolli. extremes -- the upper or lower Bolli. bands. the middle Band trade setups u should be more careful."
Thanks for your comments, supremeChaos!
In fact, for the bar after the PB, the price went down first before it shot up quickly. MACD was seeming to bounce off the zero-line when I opened the short position.

I know you strongly promote the idea of entering at upper/lower BB. Emm, very often it's counter-trend, which I still have to get comfortable with. I think for a strong trend, price will only retrace to mid BB before resuming its trend. Would you take a PB at mid BB in this case?
  • #650
  • Jul 15, 2009 3:31am Jul 15, 2009 3:31am
Quoting supremeChaos
Here's a tip on using BB...
I believe Ryanmcd has never mentioned this.

I'll use the chart posted here by happy camper.
In that eur$ M5 chart, u can see the huge downmove on the right side of the chart. (time i think is July8 +/- 17.55, where the RSI reversed from the 50 level, starting around the 1.3915 area, & price was touching the EMAs & mid-BB)
U'll notice price "hugging"/touching the lower BB. when price is hugging/touching the upper/lower BB, it is usually...
Hi SupremeChaos,

is this pictorially what u mean?

a superp explaination to me..
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  • #651
  • Jul 15, 2009 3:50am Jul 15, 2009 3:50am
Quoting Warren
Hi supremeChaos,
you are always welcome to answer
Yes, I also saw that div and in fact it's me who drew that div, that's why I said "I saw two ways of drawing the RSI Highs, one gives div and the other doesn't"
So my real question is in such a case, where the previous H of RSI does not give div but an earlier H gives div, it may also be tradable if the PB's location is good (i.e. upper/lower BB)? If the PB's location is not so ideal, is it better to avoid?
No....
re-read my post, u did not plot the RSI div. i was referring to.

i said "the divergence/s you plotted are for the 4th/5th bar prior the PB. draw a line over the highs of those bars & the PB high & u will get the divergence (i'm talking about)."
  • #652
  • Jul 15, 2009 3:55am Jul 15, 2009 3:55am
Quoting Warren
..... I think for a strong trend, price will only retrace to mid BB before resuming its trend. Would you take a PB at mid BB in this case?
Correct, price usually stops at mid-BB before continuing with the trend.
Yes i would take it. I bet Jankone & Ryanmcd would too. also, it's always good practice to look for confluences (divergences, etc) when taking any trade.

Quote
If the PB's location is not so ideal, is it better to avoid?
yes, if location is not ideal,& has very few confluence, best to avoid.
take A+ setups Jankone usually refers too (or better yet, the A+ setups talked about in james16 thread).
  • #653
  • Jul 15, 2009 4:03am Jul 15, 2009 4:03am
lefteye,
yes, Correct!
I intentionally avoided putting charts to illustrate so that u all would look for it yourself & learn more in the process.

just to add, price was hugging the lower Bolli even prior the two yellow circles, starting around 1.39 & below.
also, the RSI has had a divergence even before the the div. u have plotted, around the bars at 1.3875 & below.
You'll be seeing more lower/upper BB hugging/touching during trends. Just look around

Good job lefteye!
  • #654
  • Jul 15, 2009 4:08am Jul 15, 2009 4:08am
Quote
I know you strongly promote the idea of entering at upper/lower BB. Emm, very often it's counter-trend, which I still have to get comfortable with.

Warren,
not all upper/lower BB trades are countertrend.
well, often, at first, it looks countertrend. but eventually, these countertrend trades will turn out to be the start of a new (minor/major) trend, minor reversal, &/or pause/ranging.
  • #655
  • Jul 15, 2009 4:43am Jul 15, 2009 4:43am
just a heads up, if $ weakens further (few hours/days), now is an opportune time to watch/study REAL-TIME (in different timeframes) the Bolli hug/touch. probably u'll get to see this in most $-based cross.
  • #656
  • Jul 15, 2009 4:52am Jul 15, 2009 4:52am
Could you please post a chart.
Thanks in advance

Quoting supremeChaos
just a heads up, if $ weakens further (few hours/days), now is an opportune time to watch/study REAL-TIME (in different timeframes) the Bolli hug/touch. probably u'll get to see this in most $-based cross.
  • #657
  • Jul 15, 2009 5:13am Jul 15, 2009 5:13am
Hi..

I think this strategy could be good on higher timeframes too..
UJ.. triple bottom with divergence..
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  • #658
  • Jul 15, 2009 5:14am Jul 15, 2009 5:14am
goldbird22,
if i have more time.
u see, when i take the time to post charts, i miss many trades. lol
anyway, lefteye already pointed it out in his/her latest post.
Bolli hugging/touches happens in that way over & over again, in an uptrend or downtrend.
U'll see them if u explore the charts, trust me.

Alternatively, u can post charts yourself & we can evaluate them here.
  • #659
  • Jul 15, 2009 5:19am Jul 15, 2009 5:19am
Clode,
DEFINITELY!
u can check my July12 $jpy post this weekend on james16 thread.

Quote
.......the H4 PB formed with a (regular) bullish divergence (on CCI14). most likely RSI & MACD (& possibly Stochastics too) formed a similar bull divergence........
  • #660
  • Jul 15, 2009 6:13am Jul 15, 2009 6:13am
great call Supreme.!!.
this stuff is very interesting...

Maybe we can consider different price action not only Pin Bars if we are going with the trend..

Let's study a little how far can we go..

By the way, if my stuff on TF like H4 and H1 is off topic let me know..

Just curious.. how did you guys ariive to this setting of the RSI.. it seems very good..
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