Two Reversal Bar Entry System

The origins of Two Reversal Bar Entry System are found in a thread http://www.forexfactory.com/showthread.php?t=172963
started by http://www.forexfactory.com/tony_dtrader
which appears to have been abandoned for a little over a year.

The strategy is very simple and it is a good idea to read the original thread. It is a very short thread.

Basically:
Bull candle closes, new candle moves 5 pips up enter long.
Bear candle closes, new candle moves 5 pips down enter short.
We open 2 positions.
For long trade:
stop loss is below low of 1st candle in the set up.
1st take profit is 20 pips.
When that is reached the stop loss for the second position moves to just above breakeven and is moved up as trade progresses.
different ways to move the stop loss.
One way is to move up under the swing lows on a lower time frame as they develop.
Or a fixed trailing stop.
Exit can be when there is cross of macd, or the 20sma turns down.

Just the opposite for short trade.

To make things as easy as possible there is an indicator:
http://www.forexfactory.com/attachme...02009%202:08pm

coded by http://www.forexfactory.com/fxxx

which signals entries (and can be set to determine fixed exits and targets).

I also consult macd (21,100,9), 200ema, cci55 and 14, tick charts for better pricing, wood pivots and s/r, market times and keep my eyes open for other signs of what might be going on in the market.

Most signals are good. Some are obviously not good to take.

The zip has it all.
I am looking for two candle setups on the 4hr and following the market on the 15 min.

Day candles and 4hr candles form differently according to broker gmt.
I am using fxdd, daylight savings +2 gmt.

I like to use heiken ashi on the lower time frame...

So there are market times shown with gray and dark gray backgrounds
The higher time frame candles in dark red and dark green backgrounds (in this case the 4hr candles)
heiken ashi on lower rime frame (here it is 15 min)
macd (21,100, 9) to look for crosses, divergences and general trend
and a 20 sma (color indi).

We are waiting for a signal. Frankfurt about to open in 10 minutes.

There's a signal just before Frankfurt open.
We have entered long 2 positions.
Stop has been placed just below Wood daily pivot, strong area of support and 1st take profit is 20 pips above entry.
This is demo....

First take profit reached.
Stop for second position as been moved to breakeven.
the 2nd position was opened a little late so I have not added the spread to it since it is already a very tight stop.
If the remaining position goes 22 pips I will put the stop at breakeven +spread.
So right now we would have nothing to lose and have locked in at least 18 pips.

This what it looks like with candles.

Jiva, are you only trading eu with this method?

For now.
I want to get this strategy right...
then we can look at other pairs.
Too much going at once to follow other pairs until I get the strategy down..
It should work just fine for other pairs. Especially trendy ones...

Still in the trade with the second position.
moved stop to break even +spread.

Moved stop to just under the close of the last 15 min candle.
(I'm starting feel like a real trader).

thanks, i am still testing it on 1hr using stoch's as additional confirmation. just had a good entry on eu on last candle, 20 pip tp hit. I am moving stop to be at +10.

can expect some resistance at yesterday's r3 which was not quite reached yesterday...
London about to open 2 minutes...

seems to work better on eu than gu. also testing on usd/jpy after reading the original thread. will keep you posted

Alright. Welcome friend... There are really good prospects for this...

moved stop to just under low of present candle.
We want to see how to stay in the trade and still lock in gains.
Temptation is to jump out when there shows a big move up. The greed and fear element entering into decision making.
But the better strategy is to try to stay in the trade and look not at what I'm not getting but at what I have locked in and what is possible. There is nothing to lose with a free trade.

Since this looks like a strong move we will keep moving the stop to just under the heiken ashi candle lows.

Asia about to close 10 minutes...
no doubt some profit taking causing a pull back.
Maybe my stop is too high?

Let's see if the selling stops now that Asia has closed.

38 fib retracement so far
my stop is at 50 fib.
looks like it will get taken out.

small bounce off the 50 fib and we are still in the trade...