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  • #2,341
  • Sep 16, 2010 5:26pm Sep 16, 2010 5:26pm
Quoting tjfxtrader
EUR/USD is lining up in the scope. FBs on D1 and H4.

http://i55.tinypic.com/2qlvhqh.gif
I took todays FB for a loss. How are you handling entries? at the open of the new daily candle with sl at the high of the FB? It seems when in a nice trend or momentum, you get lots of reverse signals only to get stopped out alot. Id be interested to hear how you are entering. (this coming from a guy that doesnt have his "one thing" yet) Still learning, read through the pipEASY thread twice already, but still cant make this thing profitable for me, which is a little frustrating.

thanks for the info.
  • #2,342
  • Sep 16, 2010 6:08pm Sep 16, 2010 6:08pm
Quoting c0mputernick
I took todays FB for a loss. How are you handling entries? at the open of the new daily candle with sl at the high of the FB? It seems when in a nice trend or momentum, you get lots of reverse signals only to get stopped out alot. Id be interested to hear how you are entering. (this coming from a guy that doesnt have his "one thing" yet) Still learning, read through the pipEASY thread twice already, but still cant make this thing profitable for me, which is a little frustrating.

thanks for the info.
Thanks computernick for writing.
I do find similar observation.
Based on the given chart indicated 4 FBs, I observed losses incurred from 1st candle (1st FB) until the last candle (total 11 candles).
In this case, I hope pipEasy can offer guidance when/how to prevent from such losses?
Cheers
  • #2,343
  • Sep 16, 2010 6:38pm Sep 16, 2010 6:38pm
Quoting tradpat
Thanks computernick for writing.
I do find similar observation.
Based on the given chart indicated 4 FBs, I observed losses incurred from 1st candle (1st FB) until the last candle (total 11 candles).
In this case, I hope pipEasy can offer guidance when/how to prevent from such losses?
Cheers
WRT above commnts -
I think if you refer back to Graemes posts - if he considered FBs on Daily - for a sharp entry he would have drawn a line on the opening of the FB candle and looked for a volatile break of this on a lower TF to trigger an entry - neither candles 1, 2 or 4 qualify in this respect; candle 4 may have just, but stop would have been just above open figure of FB candle since BO was not volatile.
Candle 3 being a bear candle could have justified a sell on open of next candle - this made 200 pips + - I think so plenty of room for small profit or BE at least and thats without stacking.
  • #2,344
  • Sep 16, 2010 6:54pm Sep 16, 2010 6:54pm
Quoting c0mputernick
I took todays FB for a loss. How are you handling entries? at the open of the new daily candle with sl at the high of the FB? It seems when in a nice trend or momentum, you get lots of reverse signals only to get stopped out alot. Id be interested to hear how you are entering. (this coming from a guy that doesnt have his "one thing" yet) Still learning, read through the pipEASY thread twice already, but still cant make this thing profitable for me, which is a little frustrating.

thanks for the info.
Success rate of FBs is only 40% so even I experienced a emotional roller-coaster ride on M15 TF. How am I dealing with this? I am adding the portion of profits from my M15 positions to my first position's SL so on and so forth. I did this on my U/J long breakout yesterday and today. At some point yesterday, I had over 10+ BE positions. I took profit out of 4 of those BE trades and added to my first two positions' SL. Result being those two positions are still surviving with bigger 'breakeven space' that is already paid for. As of this writing, both are combined at +246 pips in floating profit.

Another way to deal with this is to do BE+2 or 4 or whatever to get paid for your time and effort spend on a failed FB (and you absolutely stop stacking once your positions ends with a loss)

Just thought of sharing my experience with what I did to cope with the emotional aspect of this trading style.

As someone mentioned earlier, we are all too focused on FB setups and discussion of FBs had kinda overwhelmed this thread. It is just one of the many setups discussed by Graeme to trade volatility breakouts. Bottom Line: your trade must not ever come back to the open price. If it does, it is a failed volatility breakout and they happen all too often but when they do you will be glad you were the first to catch the golden ticket! Such trade discussions belongs on this thread ... http://www.forexfactory.com/showthread.php?t=255481

just my 2 cents :-

- Vee
Staying in my lane...
  • #2,345
  • Sep 16, 2010 9:11pm Sep 16, 2010 9:11pm
Quoting tradpat
Thanks computernick for writing.
I do find similar observation.
Based on the given chart indicated 4 FBs, I observed losses incurred from 1st candle (1st FB) until the last candle (total 11 candles).
In this case, I hope pipEasy can offer guidance when/how to prevent from such losses?
Cheers
have been following this thread for some time.

if you are open to some advice from a nobody pls allow me to share my interpretation of a flying buddha.

yes a flying buddha may be a candle that forms above ma5,10 for short entries and below ma for long entries. however i tend to read more into that

i am very picky with flying buddhas knowing its low success rate.
for example. take a look at the FB that was formed 15th sept on eur/usd
notice the 2 candles before that. its a huge up trend that had broken weekly resistance of 1.2910 convincingly. this shows buyers are in play. strong play in fact. it takes more than a small inside-bar FB candle to stop such huge momentum.
if this were a huge as- shooting star with a long wick ending as a daily FB then i would jump on it in an instant

sure i would miss out on some flying buddhas that do work out. but i wont look back and regret not taking them. because in the long run i believe i might have eliminated the ones most likely that will not work out.

i still rem the lessons on price action that graeme has been talking about. maybe all of us could read up on this page again and integrate price action into flying buddhas. see the wicks. read them. understand them. watch for engulfing patterns on FBs too
these should be the ones to watch for. it would even better if they formed and gave a strong closing above/below weekly/monthly support/resistance

hope everyone's trading well.

will leave 2 charts of potential weekly flying buddhas since friday session hasnt ended
i personally prefer one over another because imho that is a candle that talks to me. tells me that hey this trend could potentially change here with minimum risk.

good luck all and hope you find this post useful.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: USDCHFWeekly.png Size: 64 KB
Click to Enlarge Name: AUDUSDWeekly.png Size: 65 KB
  • #2,346
  • Sep 16, 2010 10:20pm Sep 16, 2010 10:20pm
Thanks, miracle. U indeed r a good trader

Perhaps being a novice, I would need more time to digest pipeasy's trading method. Ur mssg make good sense, thou. I am learning from U

I hope pipeasy and others do not feel offence with my questions. I wish to have clarification for better understanding... with no mean to query the method.

I wonder, for instance, back to the chart posted by computernick, why would someone want to trigger 3 short entries on FBs indicated by candle 1, 2 and 4, when there were no sign of "downtrend" shown, not like FB candle 3 which could lead the next day / candle to south or north (in this case south)?

Thanks all for your time.

Good pipping!

Cheers
  • #2,347
  • Sep 16, 2010 11:06pm Sep 16, 2010 11:06pm
it could work out if you know how to trade like graeme.

precise entries. keep risk low with small SLs, BE asap. if it goes against you past a certain level you acknowledge the trend has not stopped and look for better low risk entries another day
the game plan is to go for high risk reward.
i rem a sentence graeme mentioned
we're never too late in the market always too early.

i think i can speak for most ppl we're not at the level graeme is.
so patience in entries on FBs are impt.
  • #2,348
  • Sep 16, 2010 11:10pm Sep 16, 2010 11:10pm
Quoting c0mputernick
I took todays FB for a loss. How are you handling entries? at the open of the new daily candle with sl at the high of the FB? It seems when in a nice trend or momentum, you get lots of reverse signals only to get stopped out alot. Id be interested to hear how you are entering. (this coming from a guy that doesnt have his "one thing" yet) Still learning, read through the pipEASY thread twice already, but still cant make this thing profitable for me, which is a little frustrating.

thanks for the info.
Bullish Flying Buddha candles mean price went up. Shorts must be entered with caution. pipEASY mentioned patience a few times. Bearish Flying Buddha candles mean price went down. Short the rallies when below the FB candle high. An easy to follow guideline would to be only short when price is below the closing price of the Flying Buddha candle. Preferably after the FB candle high was tested. This may alleviate many losses.
  • #2,349
  • Sep 17, 2010 3:24am Sep 17, 2010 3:24am
Just a little illustration that this method adapts to all instruments and time frames. Attached is a 4H chart of the BUND trade that I am in since yesterday. You can see Buddha's flyind or sinking all over the place, but if you take out the EMA's, you'll see that what remains is PA actions that we already know: inside bars, pin bars, gaps, harami's und zo weiter. Therefore you should make sure you take but those going with the main trend, which is bearish here. Going with the main trend and timing your entries might improve the success of an entry that might grow into a millipede.

I entered on limit order, which I am more comfortable with. My stop is still at BE +3 and I plan to keep it there at least till the next correction on the dailies.
Good day,
Muntu
Attached Image (click to enlarge)
Click to Enlarge Name: Bund (DEC-10).png Size: 15 KB
Patience is magic
  • #2,350
  • Sep 17, 2010 4:42am Sep 17, 2010 4:42am
Quoting miracle16
have been following this thread for some time.

hope everyone's trading well.

will leave 2 charts of potential weekly flying buddhas since friday session hasnt ended
i personally prefer one over another because imho that is a candle that talks to me. tells me that hey this trend could potentially change here with minimum risk.

good luck all and hope you find this post useful.
I would chose the swissie, with its long wicked pin bar at a swing low. For me the best set up of the 2. Only concern eurusd is also up. Which pair is in the right direction? I thought they traded in different directions
Patience is magic
  • #2,351
  • Sep 17, 2010 5:09am Sep 17, 2010 5:09am
Quoting muntu ntu
Just a little illustration that this method adapts to all instruments and time frames. Attached is a 4H chart of the BUND trade that I am in since yesterday. You can see Buddha's flyind or sinking all over the place, but if you take out the EMA's, you'll see that what remains is PA actions that we already know: inside bars, pin bars, gaps, harami's und zo weiter. Therefore you should make sure you take but those going with the main trend, which is bearish here. Going with the main trend and timing your entries might improve the success of an entry...
Hi Muntu

OK. You made sense in explaining the entry of FB. I can accept. Thanks.
p.s. I hope easypip can accept it too, as per his trading method.

Cheers

p.s. BTW how do I get my MT4 platform's background to look like yours - very neat and ease looking (I mean the 50 pips per row and 6 candles per column for a day)?
  • #2,352
  • Sep 17, 2010 6:35am Sep 17, 2010 6:35am
Hi Tradpat,

Check out this link.... http://www.forexfactory.com/showthread.php?t=12278

This should be the indicator you are looking for...you can adjust the setting to suit whatever timeframes and round numbers you want....

Blinkers.........
  • #2,353
  • Sep 17, 2010 7:34am Sep 17, 2010 7:34am
Quoting VEEFX
Success rate of FBs is only 40%
Uhmmm... wait a minute... only 40% success rate? Worse than a coin toss???"
  • #2,354
  • Sep 17, 2010 7:58am Sep 17, 2010 7:58am
Does anyone remember how this number was determined? 5+ pips? 50 pips?
A woman drove me to drink, and I forgot to thank her
  • #2,355
  • Sep 17, 2010 8:04am Sep 17, 2010 8:04am
Quoting Mechthildche
Uhmmm... wait a minute... only 40% success rate? Worse than a coin toss???"
Ye sure it is, its like rolling a dice. Guess you missed that post? Stacking swings it into your favor.
  • #2,356
  • Sep 17, 2010 8:05am Sep 17, 2010 8:05am
It was worth the wait Caught the H4 FB.

http://i56.tinypic.com/2eprp0p.gif

Shorting after a FB bearish candle is a much safer bet. The previous 2 FB bearish candles did not pay as much. The current one may grow legs.
  • #2,357
  • Sep 17, 2010 8:18am Sep 17, 2010 8:18am
Quoting muntu ntu
I would chose the swissie, with its long wicked pin bar at a swing low. For me the best set up of the 2. Only concern eurusd is also up. Which pair is in the right direction? I thought they traded in different directions
hi muntu,

you're right to say euro and swissie are very much negatively correlated. however this correlation has broken down a little too much for my liking recently.
the swissie seems to have taken a liking for yen more given both are safe haven currencies.

as we speak eur/usd is showin a nice daily FB candle that makes me sit up and take interest.
but wait. look at what euro weekly candle is telling us? do you want to choose this pair to stack aggressively downwards?

yes i too would prefer looking at swissie. but there's no right or wrong. whichever makes money is the correct way to trade.

good trading all.
  • #2,358
  • Sep 17, 2010 9:20am Sep 17, 2010 9:20am
Quoting muntu ntu
I would chose the swissie, with its long wicked pin bar at a swing low. For me the best set up of the 2. Only concern eurusd is also up. Which pair is in the right direction? I thought they traded in different directions
http://i55.tinypic.com/18y6qe.gif

The AUD/USD made a new YTD high price. Sooner or later it will retrace to the 23.6 fib. Shorting the bearish FBs will most likely result in profit.
  • #2,359
  • Sep 17, 2010 11:19am Sep 17, 2010 11:19am
Quoting tjfxtrader
There was no payment required to download those indicators. What are you talking about?
Thank you for the quick reply... I must have missed that entry
  • #2,360
  • Sep 17, 2010 11:33am Sep 17, 2010 11:33am
http://i56.tinypic.com/23671t.gif

The H4 Flying Buddha candle was pretty close to being a DOJI. Two legs growing. A break below 0.9300 would be very nice.
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