Jankone M5 thread | Page 48 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

James16+Rayanmcd(Jan kone) and ME 7 replies

Attachments: Jankone M5 thread
Exit Attachments

Jankone M5 thread

  • #941
  • Aug 23, 2009 8:12pm Aug 23, 2009 8:12pm
riskier trade attached since counter trend but had nice rsi divergence. Closed for 5 pips since not much distance to 21ema or middle BB18.

This stuff works.

Steve
Attached Image (click to enlarge)
Click to Enlarge Name: uj.gif Size: 32 KB
  • #942
  • Aug 23, 2009 8:40pm Aug 23, 2009 8:40pm
Quoting stevewide
Jankone & Supreme:

Thank you for explaining what is now obvious with my lost trade I posted on the prior page. It was embarrassing but its what I did at the time. Both of your time is valuable; I appreciate you spending some of it helping me.

It would help us more if others would post their trades more often. Let's not keep this great system a secret.

I'll learn to be a better pinbar trader. After a few days with this method I am pleased with my winnings and basic understanding. Executing this knowledge flawlessly will take more time but...
Steve, I used your chart and made some comments on it.

Icehockey, re the stop loss. I think that it's set conventionally because if price doesn't make it's initial move with force chances are that; #1 you won't get to your desired RR target and; #2 losses are expected but with proper MM your end result will be successful.

I think it's important to get your S/L to BE at the earliest logical time and alway be willing to kill the trade if you just don't see it happening.
All this being said, I don't think a 1:1 RR would be successful due to the aforementioned expected losses.

This is just my opinion.
Attached Image (click to enlarge)
Click to Enlarge Name: chart.png Size: 105 KB
A lawn mower is not an effective tool to pick-up dog poop!
  • #943
  • Aug 23, 2009 8:48pm Aug 23, 2009 8:48pm
Steve, after seeing your last post you might want to look at the attaced pdf. It will explain what a Pin Bar is and what to look for.

Based on the last couple of posts, you definitely need to read it. Also, read J16 thread (at least the first 100) pages to get an idea about PA.

Sorry, if this sounds condescending but I think we can all help each other out here.
Attached File(s)
File Type: pdf Pinbars.pdf   175 KB | 806 downloads
File Type: pdf Pin bars-advanced.pdf   113 KB | 600 downloads
A lawn mower is not an effective tool to pick-up dog poop!
  • #944
  • Aug 23, 2009 8:54pm Aug 23, 2009 8:54pm
Jaz:
Thanks; will read pfd's and James16 again before posting any more trades.

Steve
  • #945
  • Aug 23, 2009 9:22pm Aug 23, 2009 9:22pm
Quoting stevewide
Jaz:
Thanks; will read pfd's and James16 again before posting any more trades.

Steve

Hey Steve, don't stop posting. It's a positive way to learn IMO.
A lawn mower is not an effective tool to pick-up dog poop!
  • #946
  • Aug 23, 2009 11:53pm Aug 23, 2009 11:53pm
Quoting supremeChaos
is the 34MA the one which is goldenrod/dark-yellowish in color?
the blue MA is the 21MA?

that PB is in-trend, + below mid-BB + below 21MA,
so i think it's a good one to take.
Yes, Chaos, dark yellow is 34 and blue is 21. I was asking about this setup, when pin is from 34, still with the trend, but above/below (on the example it is above) 21 and mid BB. In this case it worked for a couple of pips, but my research shows that it fails many times, as the retracment is too deep. The trend may resume, but only if it is very strong.
Attached Image
  • #947
  • Aug 24, 2009 12:26am Aug 24, 2009 12:26am
Quoting Icehocey77
Well I've been having some success with the backtesting, a couple of observations:

a. I'm surprised how well inverted pin bars work as being pullbacks, haven't really played the numbers out but it gives a great opportunity to get in with a low stop and an increased position size.


b. I've been having some difficulties with setting stops, do you guys place the stop right at the bar high of the pin or give it a 1-2 pip buffer? I keep getting knocked off of a good position to find the market reverse position right at the top of the pin and go...
I completely agree that TC's are great, but mostly come CT's. It has been a disaster for me too. Very often there is div and pin, but the trend is strong and it keeps going. There can be up to three false setups on the swings in a trend, before it finally retraces to the 21. I try not to take CT's in a trend. I prefer CT's from range boarders.
I also have problems with stops. I add two pips below/above the pin. And often is closed just to see how it goes back my way. Very frustrating!!! But making stop higher is bad for R/R. I think there are two ways out of this, too be very picky like Jankone, or to take every setup and count that there will be more winners than losers. Any other ideas?
  • #948
  • Edited 5:44am Aug 24, 2009 5:12am | Edited 5:44am
Saw this set up developing and began to salivate. DT with PB at mid BB with Div. plus test of 1.4300 and close below 1.4300. A+ in my book. Entered on the opening of next candle with SL at high. Well, you can see what happened. While this was not "technically" a true PB it seems to be close in comparison to those used with this method.
Attached Image (click to enlarge)
Click to Enlarge Name: 2.gif Size: 15 KB
A lawn mower is not an effective tool to pick-up dog poop!
  • #949
  • Aug 24, 2009 5:20am Aug 24, 2009 5:20am
Haven just been closed out on the previous PB short, I now saw this setup. With a great PB at even a better position than the previous PB and still closed below 1.4300 I thought this to be A++. This time I was going to wait for the break of the bar which it did on the next bar just to be more conservative. Unfortunately, the same result.

Ryan and Jankone, am I FUBAR in my thinking or is this just one of those times that it just doesn't work?

Thanks
Attached Image (click to enlarge)
Click to Enlarge Name: 3.gif Size: 15 KB
A lawn mower is not an effective tool to pick-up dog poop!
  • #950
  • Aug 24, 2009 6:12am Aug 24, 2009 6:12am
Just for your reference.

I took your this second one too, but I waited until the price retracing to my S/R at 1.4300. It gave a max profit of 10 pip, but since it was 1 pip away my profit taking, this trade end up breakeven.

I also took the one at 11:05 at your chart. Also breakeven, but it could be a good 1:1 winning trade.

I trade mainly S/R, but also use price action as reference.


Quoting Jazflyer
Haven just been closed out on the previous PB short, I now saw this setup. With a great PB at even a better position than the previous PB and still closed below 1.4300 I thought this to be A++. This time I was going to wait for the break of the bar which it did on the next bar just to be more conservative. Unfortunately, the same result.

Ryan and Jankone, am I FUBAR in my thinking or is this just one of those times that it just doesn't work?

Thanks
  • #951
  • Aug 24, 2009 7:47am Aug 24, 2009 7:47am
Jazflyer,
what's FUBAR?

if i may...
First observation, u are plotting divergence lines in a different way (u are plotting lines within the candle body). plot lines on the highs &/or lows of the candles &/or the RSI.

on the first chart, price seem to have entered a range since about 12 bars prior the PB (the one touching BB low) timed 11.00. the first PB u based your short entry on was above 21ema & the PB closed above the mid-BB. u can also say the PB was in between mid-BB & BB top -- not the best location to enter shorts. ideally, we like to make shorts when PB is below 21ema & mid-BB.

on the second chart, u incorrectly plotted the corresponding divergence line on the RSI. review that chart & re-plot. that RSI high was for the blue candle, not for the PB.
again, price is in a range.
then u reentered a short very quickly after a loss. ideally, we dont re-enter trades that quickly when we just had a loss --unless we are very confident/experienced enough to do so. overtrading gave u another loss here.

when price is ranging, u should be careful. best to avoid making trades in ranging times, unless u get experienced enough. when in a range, u'd want to enter on the BB tops/highs or bottoms/lows, ideally with RSI divergence &/or S/R confirmation/confluence.
Hope this helps
  • #952
  • Aug 24, 2009 7:55am Aug 24, 2009 7:55am
Quoting stevewide
......
It would help us more if others would post their trades more often. Let's not keep this great system a secret.....
well, it's pretty basic imho. so i think it's not a secret.

also, if u will notice, most charts posted here look the same.
it's because the same great setups happen often, in different timeframes, in different currency pairs. we just need to be picky with the trades we take, & be consistent by taking the same proven setups.
  • #953
  • Aug 24, 2009 7:56am Aug 24, 2009 7:56am
Quoting ira
...I think there are two ways out of this, too be very picky like Jankone, or to take every setup and count that there will be more winners than losers. Any other ideas?
it's always best to be very picky:
less trades, less mistakes, less losses, less stress (in general)

it's always dangerous to take every setup ----that's suicide imho.
& it's called overtrading.
  • #954
  • Aug 24, 2009 11:18am Aug 24, 2009 11:18am
JazFlyer - You need to work on the divergence aspect. A divergence would be when price makes a new high/low and rsi does not. In your example if you were looking for a short, rsi should have a downtrend not a uptrend. Here is a pic of rsi divergence... there is not a pin bar for this example but price makes a new high, and rsi is diverged.
Attached Image (click to enlarge)
Click to Enlarge Name: divergence.gif Size: 16 KB
Attached Image
  • #955
  • Aug 24, 2009 12:55pm Aug 24, 2009 12:55pm
I took the same two setups today. Mine was under 21, and we don't need div. with the trend trades. Yes, there was a kind of range, I would better say consolidation, but the price did LH. I was concerned about RSI going higher, but my backtesting shows that even in such cases there are 10-12 pips to be made. So, I think it was just a case when it didn't work.
As for the second, for me it was more on emotions, it looked good, was from pivot and after news. But I broke my rules here.
Attached Images
  • #956
  • Edited 3:07pm Aug 24, 2009 1:21pm | Edited 3:07pm
Quoting supremeChaos
Jazflyer,
what's FUBAR?

if i may...
First observation, u are plotting divergence lines in a different way (u are plotting lines within the candle body). plot lines on the highs &/or lows of the candles &/or the RSI.

on the first chart, price seem to have entered a range since about 12 bars prior the PB (the one touching BB low) timed 11.00. the first PB u based your short entry on was above 21ema & the PB closed above the mid-BB. u can also say the PB was [u]in between...
Thanks Supreme and Trader


Supreme, FUBAR = F**ked up beyond all recognition.

As far as div goes, I was plotting it the way you suggested until I remembered a post by Jankone stating he finds div more reliable from the close of the bar. I went back and looked at his charts and found that's how he plots it. Just trying to understand this approach. Although in this case plotting div at the low of the PB would only make the div stronger, one method has to be applied to every trade. Otherwise wouldn't we be tailoring the data to meet our trade?
Attached Image
A lawn mower is not an effective tool to pick-up dog poop!
  • #957
  • Aug 24, 2009 3:39pm Aug 24, 2009 3:39pm
Quoting trader_scott
JazFlyer - You need to work on the divergence aspect. A divergence would be when price makes a new high/low and rsi does not. In your example if you were looking for a short, rsi should have a downtrend not a uptrend. Here is a pic of rsi divergence... there is not a pin bar for this example but price makes a new high, and rsi is diverged.
Trader - wouldn't we still have divergence if the price line was horizontal and the rsi line was up? Just trying to get a grip on determining divergence.
Attached Image
A lawn mower is not an effective tool to pick-up dog poop!
  • #958
  • Aug 24, 2009 4:14pm Aug 24, 2009 4:14pm
Quoting Jazflyer
Trader - wouldn't we still have divergence if the price line was horizontal and the rsi line was up? Just trying to get a grip on determining divergence.
No, for divergence in this case you'd want the rsi line to be down. But in this case a short under the pb could be considered a tc trade depending on your definition of a trend.

Here is a ct trade that I took today and made a few pips on.

p.s. - The second to last bar on my chart would qualify as a pb tc short signal, but not a perfect pb that open and closes within the prior bar's body.
Attached Image (click to enlarge)
Click to Enlarge Name: pb.ej.15.8.24.09-1.gif Size: 44 KB
  • #959
  • Aug 25, 2009 12:13am Aug 25, 2009 12:13am
Quoting ira
I took the same two setups today. Mine was under 21, and we don't need div. with the trend trades. .....
what u will sometimes see in trending markets are hidden divergences, which denote trend continuation.

your 2 charts in fact showed hidden divergences. check it out.
  • #960
  • Aug 25, 2009 12:23am Aug 25, 2009 12:23am
Quoting Jazflyer
....
As far as div goes, I was plotting it the way you suggested until I remembered a post by Jankone stating he finds div more reliable from the close of the bar. I went back and looked at his charts and found that's how he plots it.....
I havent seen all his charts. but based on his charts that i have seen, they seem to be plotted the "normal" way, that is, plot on the hi/low of price & RSI.

That chart of Jankone which u posted had the line plotted at the open of the PB & not at the close. i think it's just a "mannerism"/preference of Jankone not to plot lines exactly at hi/low of the price.

if u find that plotting lines on the close of a bar is better/comfortable for u, then continue to do so. otherwise, for simplicity & to avoid confusion, do it the usual way --- plot on the hi/low of price & RSI.
7 traders viewing now