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Daily Inside Bars

  • #41
  • Mar 17, 2010 9:35am Mar 17, 2010 9:35am
Quoting Razor_trader
Heres what made that trade uber appealing in my eyes. The pin bar that came before the IB was like a signal and the IB is a confirmation. I Love these setups and will trade them much more aggressively. The end result was a breakout that was strong and direct. Simply approach and a trade that is well past 2x in a small amount of time.

Well done. Unfortunatly for me no trading this week due to outside commitments which is why I have been quiet lol..

Razor
PS to also add further, The Inside Bar also had similiar features to the pin bar which (I know hindsights blah blah blah) just adds to the rejection. There is another Pin IB combo about 10 bars before. While it is much the same setup, the beauty of thinking short on this is that there is NO BREAK which is what makes trading IBs (or other PA Bars) better than a stab. YOU are taking orders that the MARKET has to come TOO, not just ENTERING a MARKET order and having the market dictate to you. Nuff said but once again nice trade
  • #42
  • Mar 17, 2010 1:48pm Mar 17, 2010 1:48pm
Subscribed

The entry criteria we all know but I'd love to start a discussion on when you consider your criteria invalidated?

For instance, how many bars will you wait?
Is there a maximum distance you will allow price to move before you consider it invalid and wont take the break should it come?
Do you have a time-based limit after which you'd remove the pending order?
  • #43
  • Mar 17, 2010 4:28pm Mar 17, 2010 4:28pm
Hey Razor, great to see you start this thread.
I hope i may contribute to it from time to time.

looking forward to a positive thread.

cheers
Geoff
  • #44
  • Mar 18, 2010 12:45am Mar 18, 2010 12:45am
Quoting MattW
Subscribed

The entry criteria we all know but I'd love to start a discussion on when you consider your criteria invalidated?

For instance, how many bars will you wait?
Is there a maximum distance you will allow price to move before you consider it invalid and wont take the break should it come?
Do you have a time-based limit after which you'd remove the pending order?
Usually the next bar is the key trade. The only times this may differ is if the next bar is another IB within the IB or you have an IB on a higher TF but an opportunity on a lower TF.

Too explain the second part more clearly. You have an IB on a daily which by accounts of S/R and other factors your bias is in a particular direction. Zooming down to an hourly you get an IB however the initial break in your daily direction doesnt/hasnt happened yet and the entry on the hourly IB hasnt been executed. Because you are looking for a break in the daily direction but have an opportunity for a lower risk setup on the hourly, then I may give the market some time before removing my order on the hourly and concentrating on the daily IB instead. In this case depending on the circumstances, I may leave the pending order in play for a few bars (3 hours or so).

Hope this helps

Razor
  • #45
  • Mar 18, 2010 6:53am Mar 18, 2010 6:53am
Quoting Razor_trader
Usually ...
It's great to see such a well-thought-out answer with sound logical PA basis. By the sounds of it you wouldn't trade a Hikkake (which I believe is a 3 bar wait) unless a higher time-frame showed confirming PA.

Do others have different approaches?
I know that some choose to discard after the next candle if it doesn't trigger.

My approach at present tends to be to leave the order on for several candles or until a new high/low is made. For instance, looking to short an IB, if price makes a new high then the order would be removed.
  • #46
  • Mar 18, 2010 8:16am Mar 18, 2010 8:16am
Hi Matt. I think Razor's answer is spot on and I would like to elaborate. As you know the DIBS trade is essentially a break out trade. I have studied various break out strategies but the inside bar is a compression or squeeze break out strategy and for me this is the best type. You can see it if you put Bollinger bands or Donchian channels on, say, the 5 minute chart for an hourly inside bar. As the price consolidates market orders tend to build either side of the range and there is a cascade effect once a large enough order is placed to move the price out of the range. Once it's broken then some of the volatility is lost. That's why we don't like candles to close the wrong side of our market order.

I used to leave them on but it is essentially a gamble then. I would look for a different kind of set up.
Gone to a better place
  • #47
  • Mar 19, 2010 8:10am Mar 19, 2010 8:10am
Quoting MattW
It's great to see such a well-thought-out answer with sound logical PA basis. By the sounds of it you wouldn't trade a Hikkake (which I believe is a 3 bar wait) unless a higher time-frame showed confirming PA.

Do others have different approaches?
I know that some choose to discard after the next candle if it doesn't trigger.

My approach at present tends to be to leave the order on for several candles or until a new high/low is made. For instance, looking to short an IB, if price makes a new high then the order would be removed.
I have over the course of the past year spotted some good setups which include the Pin IB combo (possibly my favourite reversal setup that has a good probability of working out) as I am sure others have noticed setups that work well for them. I take my biggest success from being patient and allowing information from higher timeframes to allow a bias to manifest trades that offer better (or more probable) outcomes. It is for this reason I spend alot of my time on weekly and daily charts. For those who love hourly IBs then using a daily candle as a reference can yield some simple trades in directions that may break the initial rules.

All in all though it is very difficult to learn to trade without taking trades and in my time last year I would have taken my fair share which resulted in pretty adequate returns but a great deal more insight into the markets. Your approach to Inside bars will always vary with each trade, as should any approach to trading. While trading needs to have mechanical components it also needs to have a balance of some logic which means that if something setups with regards to the rules however there are factors that may limit the success of that particular trade then you need to either take it in the direction of rules, the opposite direction or not at all.

Hope this helps some

Razor
  • #48
  • Mar 19, 2010 8:14am Mar 19, 2010 8:14am
It is not the best time to be taking trades but the daily IB on the AUD/USD was a nice little 60 pip risk so I took it short. I have taken off my 1:1 and am now off to bed.

Chart below
Attached Image (click to enlarge)
Click to Enlarge Name: AUDUSD Short daily IB.jpg Size: 90 KB
  • #49
  • Mar 20, 2010 4:56am Mar 20, 2010 4:56am
I was watching the aussie dollar too. Took the trade for 60pips. I am out though and will be looking to re-enter higher up if we go higher.
If you think you can or cannot do it you are correct
  • #50
  • Mar 20, 2010 5:04am Mar 20, 2010 5:04am
Comments on the graphic.

Personally I would love to buy on a retracement as the stop is best under the hammer.
Attached Image (click to enlarge)
Click to Enlarge Name: usdchf-daily-19032010.jpg Size: 109 KB
If you think you can or cannot do it you are correct
  • #51
  • Mar 30, 2010 4:48am Mar 30, 2010 4:48am
This 8hr pin bar just went through my downtrend line.Hopefully a good sell signal.
Attached Image (click to enlarge)
Click to Enlarge Name: eur usd.gif 1hr.gif 2.gif Size: 23 KB
  • #52
  • Mar 30, 2010 6:35am Mar 30, 2010 6:35am
I will be heading away for the Easter break and will be returning sometime next week. Hopefully by that stage I will have some spare time to put up charts and trades in this forum. I have done some trading and updated my journal but it hasnt been directed at IBs therefore kept it away from here.

Hope you all have a safe break

Razor
  • #53
  • Feb 13, 2011 5:37am Feb 13, 2011 5:37am
Quoting Razor_trader
I will be heading away for the Easter break and will be returning sometime next week. Hopefully by that stage I will have some spare time to put up charts and trades in this forum. I have done some trading and updated my journal but it hasnt been directed at IBs therefore kept it away from here.

Hope you all have a safe break

Razor
Thats what I call 1 hell of a break. I didnt completely forget about this thread or why I started it but I found myself really sidetracked by a few other bits and pieces with both trading and my outside life. I have found trading lately very difficult not for any other reason that I am juggling too much and after a solid look at my results for this year so far I can say with honesty that I am lacking the simplicity and the direction that I have had for the past few years which can be summed up to discipline.

Summer in Australia is a great time for my business which I have gradually built back up again after making a sale on about 50% of it mid last year. This has also been a burden to what used to be a simple plan that worked. Taking a step back it is easy to see that I wasnt seeing anything in particular except for my need to trade as opposed to previously having some rules, placing limit orders and waiting to see the outcome. The cost of market orders combined with a lack of market time has seen frustation at myself for constantly jumping the gun however that is the past and its time to move on.

I would like to breath some life into this thread because it (Inside Bars and PC/Joel) allowed me possibly my great paradigm shift and put me on a passionate course with simplistic trading with very simple rules.I encourage anyone who is interested to read the opening post, go check out the other DIBs threads to get a grasp on what we do and feel free to post charts and trades. I will do my best, which shouldnt be too hard considering I will be trading Daily charts the vast majority of the time, to post my trades (I must stipulate that these are my own and I have done the homework for these trades, they are by no means a recommendation to take them and any trades followed are your own responsibility<---- for some reason disclaimers have become part of our modern day). The trades I post will have a chart and perhaps where it is not so obvious some kind of general reason behind it. I encourage everyone to learn from one another and to show mutual respect for all. Negativity as mentioned in the opening post will be reported as trash and sent to admin for cleanup.

As it is Sunday night there is nothing of relative interest for tomorrow from a daily POV so I will leave things at that. I am also with Oanda so from time to time there will be some 3 hourly charts (as Oanda seems to struggle to be normal and have 4 hourly feeds like most). I seem to prefer Oanda for some reason.

Take care and I look forward to the company, if there is none then I guess I will just be a loner which I can handle.

RT
  • #54
  • Feb 13, 2011 11:02am Feb 13, 2011 11:02am
Razor,
First of all thank you for starting this thread, I appreciated the ground rules for the thread also.
Thanks to MattW for the answer to a pattern I have seen many times before and could not find the answer from others I have asked.
The Hikkake Pattern.
My point is that I have already learned a great deal and I'm pleased to know that I wasn't imaging this pattern lol. A Big Thanks to you both !!!!!

Quoting MattW
It's great to see such a well-thought-out answer with sound logical PA basis. By the sounds of it you wouldn't trade a Hikkake (which I believe is a 3 bar wait) unless a higher time-frame showed confirming PA.

Do others have different approaches?
I know that some choose to discard after the next candle if it doesn't trigger.

My approach at present tends to be to leave the order on for several candles or until a new high/low is made. For instance, looking to short an IB, if price makes a new high then the order would be removed.
  • #55
  • Feb 14, 2011 5:01am Feb 14, 2011 5:01am
Came to this one late but still could work. Had I put an order in at the start of the candle I would have been stopped out but I have a limit order in place at the low 83.47 with a 10 pip SL on the hourly.

Strong move down with some failed surges long has left a number of long wicks which gives me conviction on the downside. Since it is an hourly chart I have the ability to load a position with minimal risk, in this case just .5%. Targetting sub 83.00 if we get the break but would not be surprised at another move up hence the small risk.

Chart to come

RT
  • #56
  • Edited 5:11am Feb 14, 2011 5:06am | Edited 5:11am
Chart attached with trade now in place. SL is above the last few wicks to give it some room. With the small risk and spread cost I have factored this into the risk. Last bar to close is also an outside bar (BEOB) with a close just shy of the previous low which is a good indicator that this could sink further.

As I said first target will be 83.00 area for some profit taking (should give me approx 1%) before moving SL to BE.

On the daily chart the top end is also looking to be held up at the top end of 83.70 with numerous failures to get to 84.00. This is another reason why this particular trade may have some success to the downside with the bulls being held by the short traders. Could we see a small 200-300 pip pullback before a push forward. AUD/USD is also showing some weakness just holding onto parity. Time will tell
Attached Image (click to enlarge)
Click to Enlarge Name: hourly IB 140211.jpg Size: 195 KB
  • #57
  • Feb 14, 2011 6:05am Feb 14, 2011 6:05am
Quoting Razor_trader
Chart attached with trade now in place. SL is above the last few wicks to give it some room. With the small risk and spread cost I have factored this into the risk. Last bar to close is also an outside bar (BEOB) with a close just shy of the previous low which is a good indicator that this could sink further.

As I said first target will be 83.00 area for some profit taking (should give me approx 1%) before moving SL to BE.

On the daily chart the top end is also looking to be held up at the top end of 83.70 with numerous failures to get to 84.00....
i have started my campaign the same way I started this thread with a quick loss. With all the tails the uptrend on the daily is still in place so I was not surprise and once again that is why the risk was nothing special. So Monday 14th starts off with -.5%
  • #58
  • Feb 14, 2011 6:19am Feb 14, 2011 6:19am
Is at the top end of a long time range with significant downside. I will look to add a pending short on Fridays IB. This is on a daily chart but the biggest concern is the size of Thursdays bar which has me looking to the upside as I dont think the downside with that move will give me at a minimum 2:1 so i will leave this one
Attached Image (click to enlarge)
Click to Enlarge Name: Daily IB 140211.jpg Size: 197 KB
  • #59
  • Feb 14, 2011 9:36am Feb 14, 2011 9:36am
There is an IB on the daily chart being formed as we speak

stoch is grossly overbought. A sell stop can be placed @9675 in order to catch a correction in the overbought status
If you think you can or cannot do it you are correct
  • #60
  • Feb 16, 2011 3:56am Feb 16, 2011 3:56am
3 hour IB (Oanda) on the EUR/USD. Risk for setup is about 40 pips (spread included).

Daily has a pin bar IB combination (a personal fav) off previous S/R area which has me thinking more bullish. The IB in the chart is at the top end of the move so I am buying if momemtum brings me in. Will hold trade open for as long as there looks to be a chance to get in with a Higher High situation for bullish momemtum.

RT
Attached Image (click to enlarge)
Click to Enlarge Name: 3 Hour IB 160211.jpg Size: 228 KB
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