8H IB Breakout | Page 2 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

Another simple breakout system 32 replies

(False) Breakout & Trend Reversal Strategies?? 12 replies

My Asian Breakout trading Journal 54 replies

Playing the Breakout Trade 4 replies

Volatility Breakout, successor to "The HAT" 0 replies

Attachments: 8H IB Breakout
Exit Attachments

8H IB Breakout

  • #21
  • Sep 8, 2009 5:25pm Sep 8, 2009 5:25pm
I'm confused about the entry, do we wait till a inside block finishes forming, then position our trades? Do we trade on wide blocks? Thin blocks? What exactly qualifies as an entry? I understand the R:R is 1:1 on a trade to trade basis, so I know what the TP and SL points are, but the entry, it eludes me, maybe I need to see an entry in progress to understand it completely.
  • #22
  • Sep 8, 2009 5:36pm Sep 8, 2009 5:36pm
Quoting arto
best time is GMT+2. I tested on EurGbp
Hello, what do you mean with GMT+2?

Thank you!
  • #23
  • Sep 8, 2009 5:38pm Sep 8, 2009 5:38pm
This is how i understand it :
the first IB i named it IB 1 , The next large cadle when the price break the high of the IB1 we enter long i put a sign there . and the entry would be where is the bleu line at 0.8753 and stop loss would be the low of IB1 . this was a winning trade .
now we have IB2 . in this case the price break the low of IB2 so we enter short i placed a sign where we should enter short and a red horizontal line and the entry would be 0.8758 and stop loss at the high of IB2 . a wining trade too .
this is how i understand it .
regards



Quoting Pharoah
I'm confused about the entry, do we wait till a inside block finishes forming, then position our trades? Do we trade on wide blocks? Thin blocks? What exactly qualifies as an entry? I understand the R:R is 1:1 on a trade to trade basis, so I know what the TP and SL points are, but the entry, it eludes me, maybe I need to see an entry in progress to understand it completely.
Attached Image (click to enlarge)
Click to Enlarge Name: ib.gif Size: 14 KB
  • #24
  • Sep 8, 2009 5:53pm Sep 8, 2009 5:53pm
Quoting samer960
This is how i understand it :
the first IB...
ok, so I know exactly what you mean, I'm going to reword that in my own word with a picture, and you tell me if I've got it, because I think I do now

Attached Image (click to enlarge)
Click to Enlarge Name: Example.jpg Size: 128 KB


In circle 1, the Green "Super Candle" has closed while still inside the red "Super Candles" open/close (or high/low???), this qualifies as a trade setup, we place a pending buy order at the top of the wick with a stoploss of the bottom wick, and a take profit of the distance between bottom with and top wick above buy price (1:1 Ratio), the same for a pending sell order at the bottom of the wick with SL and TP reversed.

Same in circle 2.

Am I right?
  • #25
  • Sep 8, 2009 6:02pm Sep 8, 2009 6:02pm
u r right
and for the candle we look at high low not open /close . an iside bar is a bar where its high and low are completely inside the previous bar .
Quoting Pharoah
ok, so I know exactly what you mean, I'm going to reword that in my own word with a picture, and you tell me if I've got it, because I think I do now

Attachment

In circle 1, the Green "Super Candle" has closed while still inside the red "Super Candles" open/close (or high/low???), this qualifies as a trade setup, we place a pending buy order at the top of the wick with a stoploss of the bottom wick, and a take profit of the distance between bottom with and top wick above buy price (1:1 Ratio), the same for a pending sell order...
  • #26
  • Sep 8, 2009 6:20pm Sep 8, 2009 6:20pm
Quoting samer960
u r right
and for the candle we look at high low not open /close . an iside bar is a bar where its high and low are completely inside the previous bar .
perfect, thanks a lot
  • #27
  • Sep 8, 2009 7:26pm Sep 8, 2009 7:26pm
Quoting Pharoah
ok, so I know exactly what you mean, I'm going to reword that in my own word with a picture, and you tell me if I've got it, because I think I do now

Attachment

In circle 1, the Green "Super Candle" has closed while still inside the red "Super Candles" open/close (or high/low???), this qualifies as a trade setup, we place a pending buy order at the top of the wick with a stoploss of the bottom wick, and a take profit of the distance between bottom with and top wick above buy price (1:1 Ratio), the same for a pending sell order...
No.
Circle 1 is not a trade set-up.
It is not an inside bar.
Its Low is below the Low of the previous bar.

An inside bar's low must be above the Low of the previous bar and its High must be below the High of the previous bar.

Circle 2 is a trade set up. It is an inside bar.
  • #28
  • Sep 8, 2009 7:59pm Sep 8, 2009 7:59pm
Quoting billbss
No.
Circle 1 is not a trade set-up.
It is not an inside bar.
Its Low is below the Low of the previous bar.

An inside bar's low must be above the Low of the previous bar and its High must be below the High of the previous bar.

Circle 2 is a trade set up. It is an inside bar.
it is, look again.
  • #29
  • Sep 8, 2009 8:17pm Sep 8, 2009 8:17pm
Quoting Pharoah
it is, look again.
OK, I see the bars in circle 1. That 2nd bar, the green one, did actually make a lower low down to almost .8700 - about 5 pips lower than the red bar before it. So it is not an IB.

It looks like you could draw a "circle 3" around the next two bars... (the two bars after circle 2). That second green bar looks like an Inside Bar. When the next bar broke below the low of the second green bar.... It is a short trade. Yes ??

It looks like it would have been a good short trade as well.

This looks like it would backtest quite nicely.
  • #30
  • Sep 8, 2009 8:18pm Sep 8, 2009 8:18pm
Quoting Pharoah
it is, look again.
No it isn't.
  • #31
  • Sep 8, 2009 8:29pm Sep 8, 2009 8:29pm
Quoting price
OK, I see the bars in circle 1. That 2nd bar, the green one, did actually make a lower low down to almost .8700 - about 5 pips lower than the red bar before it. So it is not an IB.

It looks like you could draw a "circle 3" around the next two bars... (the two bars after circle 2). That second green bar looks like an Inside Bar. When the next bar broke below the low of the second green bar.... It is a short trade. Yes ??

It looks like it would have been a good short trade as well.

This looks like it would backtest quite nicely.
Never mind, I don't understand this system, and the original poster isn't saying anything useful to me, I'm just gonna pass on this one.
  • #32
  • Sep 8, 2009 9:44pm Sep 8, 2009 9:44pm
Hi,
Question. You set a buy stop and sell stop for each set up. Example. If you get a trade on your buy stop and you get stopped out, but the price continues down and goes past your sell stop entry. Do you take the trade? Or do you just wait for the next inside bar?Thanks, Paris
  • #33
  • Sep 8, 2009 10:56pm Sep 8, 2009 10:56pm
Hi Guys..

If you actually want to show an 8hr candle here is an indicator that can help. Place the indicator into the mt4 indicator folder. Pull up a 1hr chart and place the indicator on the chart and set the period multiplier to 480 minutes (8hrs). Now go to the top menu bar and find file, open off line and look for the 8hr version of the chart/pair you placed the indicator on.

Now you have an 8hr candle chart. You always have to keep the chart open with the indicator on it, but you cam minimize that chart or use it to view the other time frames. The 8hr view can not be changed.
Attached File(s)
File Type: mq4 ATM-Period_Converter_Opt.mq4   15 KB | 448 downloads
  • #34
  • Sep 9, 2009 2:58am Sep 9, 2009 2:58am
bliss is right the first circle is not an inside bar i didnt pay attention as it was not not clear to the lower wick. so the first circle it is not an inside bar but the second circle on your chart we have an IB .
regards
Quoting Pharoah
it is, look again.
  • #35
  • Edited 3:33am Sep 9, 2009 3:28am | Edited 3:33am
Here is a trade that happened today, I like these break out plays, similar to the asian box break out.. Tho on this trade the first bar of the green candle took out the bottom of the red inside candle.. I was not up for that action so thankfully I did'nt get stoped out.
Attached Image (click to enlarge)
Click to Enlarge Name: ma x.gif Size: 19 KB
  • #36
  • Sep 9, 2009 3:33am Sep 9, 2009 3:33am
Quoting rebelheart
Here is a trade that happened today, I like these break out plays, similar to the asian box break out..
Technically, that would be a loosing trade according to the description, because the low of the red block is higher than the low of the following box, which means a sell order should have been placed at that point which is then retraces immediately and stops out the sell order, an triggers the buy order, which would currently be in profit.
  • #37
  • Sep 9, 2009 3:41am Sep 9, 2009 3:41am
System looks good. Anyone backtested a couple of years?
Just trade the pullback you idiot!
  • #38
  • Sep 9, 2009 3:45am Sep 9, 2009 3:45am
I think it is better to wait the candle to close before considering it a BO , or to use price line as per the picture attached .
regards
Quoting rebelheart
Here is a trade that happened today, I like these break out plays, similar to the asian box break out.. Tho on this trade the first bar of the green candle took out the bottom of the red inside candle.. I was not up for that action so thankfully I did'nt get stoped out.
Attached Image (click to enlarge)
Click to Enlarge Name: ib bo.gif Size: 14 KB
  • #39
  • Sep 9, 2009 5:35am Sep 9, 2009 5:35am
samer,

by looking at your chart the last red candle was closed before taking the short on the last green candle and being stopped out.

so I dont understand what you mean???
  • #40
  • Sep 9, 2009 7:56am Sep 9, 2009 7:56am
Arto,
If a trade is still active and hasn't hit the TP or SL, when do we close it out?
Do we close it when the next 8H bar begins?
0 traders viewing now