Jankone M5 thread | Page 85 | 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

  • #1,681
  • Oct 26, 2009 10:24am Oct 26, 2009 10:24am
Quoting Duitman
Thank you lindsay and jankone. Now, if I may, one more question: I see that some people draw a diversion line at the bottom of the RSI peaks and troughs and others draw it above. So what is the correct way and is there a website where I might learn to draw the diversion lines correctly?

Thanks again.

Lew
This is a great inquiry that deserves to be addressed in this great thread.

Jackone or another experienced trader of divergence please take the time to answer this post.

Thanks,
revrobwimb
  • #1,682
  • Oct 26, 2009 10:40am Oct 26, 2009 10:40am
Quoting revrobwimb
This is a great inquiry that deserves to be addressed in this great thread.

Jackone or another experienced trader of divergence please take the time to answer this post.

Thanks,
revrobwimb
Hi Duitman and revrobwimb,
there are 2 sorts of divergence, Regular and Hidden, the best and easiest explanation of them can be seen here at babypips, http://www.babypips.com/school/divergence_trading.html

they have a great explanation of Div.
Hope this helps
  • #1,683
  • Oct 26, 2009 10:43am Oct 26, 2009 10:43am
Quoting brasilero
Hi there!
I dont trade pinbars under the 21EMA, to go long, because it acts as resistence! If you put the 21EMA on your chart you can see it touched it and continued to the south!
Hey Brasilero
thanks for your reply, I normally have the BollyBands on and would have seen that. They are back on my charts now.

I learn by my mistakes!!!!!
  • #1,684
  • Oct 26, 2009 1:12pm Oct 26, 2009 1:12pm
In the beginning I draw RSI on high, but I found that draw line rsi on close is more reliable.

like here.

http://www.forexfactory.com/attachme...0&d=1253033324

Quoting revrobwimb
This is a great inquiry that deserves to be addressed in this great thread.

Jackone or another experienced trader of divergence please take the time to answer this post.

Thanks,
revrobwimb
  • #1,685
  • Oct 26, 2009 1:20pm Oct 26, 2009 1:20pm
Quoting Jankone
In the beginning I draw RSI on high, but I found that draw line rsi on close is more reliable.

like here.
thanks
  • #1,686
  • Oct 26, 2009 2:50pm Oct 26, 2009 2:50pm
Quoting lindsayf
Hi Jankone and others
I have been demoing this method and it looks good....
i have been moving my stop to BE so far, but i never back tested or tried your approach. however there are some people with success using that approach, the pips may be different e.g. 15/20/etc.

imo there's no better or worse, it's whatever works for each individual. if it shows good results for you, then nothing i or anyone say can change that.

'challenge psychologically'
this is a different question. if your approach doesn't give you psychological comfort, then you should change one of them because i don't think it'll be good long term(with the two NOT working together).

just my views.
  • #1,687
  • Oct 26, 2009 2:56pm Oct 26, 2009 2:56pm
Quoting Kakyn
Comments?
not sure what kind of trade you took this as.

looks like a good range trade to me, notice the established top and bottom.

not A+ ct/div trade to me. just me.
Attached Image (click to enlarge)
Click to Enlarge Name: 9 oct 09 eu.gif Size: 127 KB
  • #1,688
  • Oct 26, 2009 3:17pm Oct 26, 2009 3:17pm
Quoting Jankone
updated #1 a little
if you have some ideas, tell them for an inspiration!
jankone
nice updates. i think it makes it easier and more complete for new ppl.

just a few questions if you don't mind. do you use technical profit targets(round #, high/low, etc.) or fix 1%? do you move stop to BE, or just leave it intact? i have seem more posts regarding these recently(and i sometimes wonder myself), like to see how they work in your personal experience. thx.
  • #1,689
  • Oct 26, 2009 3:27pm Oct 26, 2009 3:27pm
Quoting supremeChaos
Hey Lew.
first u should call it how it should be called, so we all understand what each of us is saying: so, it's divergence. we just abbreviate it to 'div.', so it''ll be much easier to type.
go here
Thanks Supreme. Appreciate the advice and link.

Lew
Never too late to learn
  • #1,690
  • Oct 27, 2009 4:24am Oct 27, 2009 4:24am
Quoting dhh
jankone
nice updates. i think it makes it easier and more complete for new ppl.

just a few questions if you don't mind. do you use technical profit targets(round #, high/low, etc.) or fix 1%? do you move stop to BE, or just leave it intact? i have seem more posts regarding these recently(and i sometimes wonder myself), like to see how they work in your personal experience. thx.
I'm guessing Jankone will comment here too, but I can give you my experience. I am currently in my second month of formal demoing this method. I read through this thread and RyanMCD's posts prior to demoing.

From there, I was able to come up with several profit taking strategies that I'm testing on each trade I take. I will post these results at the end of the month, but here are the strategies I'm testing.

I only trade E/U 5Min with this strategy. I generally enter on the break of the pinbar, but do sometimes enter on close of bar. I always place stop 1 pip beyond tail of pinbar. I then position size accordingly. I generally look for trades at swing highs/lows, which cuts out a ton of pinbars that eventually fail. Most of my trades have divergence (regardless of trend direction).

Exit strategies I'm testing:
- Full TP at 1.5R
- Full TP at 2R
- 1/2 TP at 1R, 1/2 at 3R (don't move stop... if stop is hit, it's a b/e trade)
- Move stop to b/e at 2R, Full TP at 4R

I'll leave you in suspense until early next week... remind me to post the sheet with results if I forget. I plan to start live next month with a small % of my account.

Jankone and Ryan are right. This strategy is really all you need. But I don't think I could have started with this strategy. I spent my first 7 months with price action demoing only daily and weekly tf. I didn't realize it at the time, but that really helped me develop the patience necessary profitably trade. If you are not patient, you will be slaughtered on this tf. Reading the James16 Chart Thread helped me immensely. Check it out.

Hopefully this helps.

Josh

- PS, Where's Jig been lately?
  • #1,691
  • Oct 27, 2009 5:57am Oct 27, 2009 5:57am
Look forward to your results Jduester and thanks for being so generous to share them.

What do you guys think of this set up..I have shown preceding PA for context. The set up is about 70 minutes after Europe open.
Attached Image (click to enlarge)
Click to Enlarge Name: ScreenHunter_02 Oct. 27 21.53.jpg Size: 219 KB
All that matters is winning the week
  • #1,692
  • Oct 27, 2009 6:17am Oct 27, 2009 6:17am
Pinbar with div on eurjpy TF15... not in front computer...
it would have been profitable...
Attached Image
  • #1,693
  • Oct 27, 2009 6:44am Oct 27, 2009 6:44am
Nice Pin + Div, but probably should have got out after 3-4 bars not going my way, any comments?
Attached Image (click to enlarge)
Click to Enlarge Name: eurusdpin.gif Size: 23 KB
  • #1,694
  • Oct 27, 2009 6:48am Oct 27, 2009 6:48am
Quoting lindsayf
Look forward to your results Jduester and thanks for being so generous to share them.

What do you guys think of this set up..I have shown preceding PA for context. The set up is about 70 minutes after Europe open.
I believe this would work for a pullback to the midBB on a with-trend trade. Personally, however, I doubt I'd have taken it because of the shape of the bar. I like to have my open and close closer together (in this case have the open closer to the bottom of the bar instead of in the middle of the bar).

Some are pickier than others on this. But just starting out as I am, I want to make sure I'm giving myself the best edge I can... Pretty good location though. Suppose it depends if you are entering on break of bar or on close of bar, since there is some difference in this case.

Josh
  • #1,695
  • Oct 27, 2009 6:54am Oct 27, 2009 6:54am
there isnt a clear trend there..so a counter trend trade would be a higher probabilty setup. That is a continuation setup and is a good one if the prevailing trend is clear and established...but not so good in indecisive PA like that..also, not a very liquid time of day..

just my thoughts
All that matters is winning the week
  • #1,696
  • Oct 27, 2009 6:57am Oct 27, 2009 6:57am
Quoting Jduester
I believe this would work for a pullback to the midBB on a with-trend trade....
thanks Jduester..I was wondering if that did constitute a trend trade..I thought so, even if the trend is young. Agree not the greatest pin.
All that matters is winning the week
  • #1,697
  • Oct 27, 2009 7:00am Oct 27, 2009 7:00am
Redart,

to me thats not diverging.

for me price has to make lower lows whilst the corresponding points on RSI are going higher, so that the divergence lines look like a ">" .

the attached pic is what i mean and is from the Eu at about 0915 gmt this morning and was good for + 10 pips...

Baby pips have an excellent section on divergence that was linked a couple of posts ago

many pips to you

Grant
Attached Image (click to enlarge)
Click to Enlarge Name: pin bar.gif Size: 21 KB
  • #1,698
  • Oct 27, 2009 7:16am Oct 27, 2009 7:16am
you are right, wasn't a great trade, learn for next time, thanks

Quoting lindsayf
there isnt a clear trend there..so a counter trend trade would be a higher probabilty setup. That is a continuation setup and is a good one if the prevailing trend is clear and established...but not so good in indecisive PA like that..also, not a very liquid time of day..

just my thoughts
  • #1,699
  • Oct 27, 2009 7:19am Oct 27, 2009 7:19am
Grant, it is a hidden divergence which should be applied as a continuation not counter trade which is what I attempted, cheers


Quoting grant18265
Redart,

to me thats not diverging.

for me price has to make lower lows whilst the corresponding points on RSI are going higher, so that the divergence lines look like a ">" .

the attached pic is what i mean and is from the Eu at about 0915 gmt this morning and was good for + 10 pips...

Baby pips have an excellent section on divergence that was linked a couple of posts ago

many pips to you

Grant
  • #1,700
  • Oct 27, 2009 7:24am Oct 27, 2009 7:24am
Redart

no problem my friend,

didnt realise hidden divergence was a set up talked about in here now, i'll read the thread again to get up to speed....

many pips to you

Grant
1 trader viewing now