Two Reversal Bar Entry System

Hi Paul,
To generate the dark blue arrows I simply add another set up of the indi. So there are 2 settings of the same indi on the template. Change the colors in the set up for the indi. One set at 240 for the light blue 4hr arrows and 1 set at 60 for dark blue 1 hr arrows.
But I would only use the dark blue or dark red arrows to enter in an already well established trend.
The 4hr arrows are the primary entry signals.

There's a signal to go short but I'm not going to trade it.
Spreads are a bit wide and most of the markets have not opened yet...
I would look for a signal around Tokyo open shows as the light gray rectangle on the chart.

entered short few minutes after Tokyo open
just 1 position micro..
First live trade.
looking for 20 pips
Now time to do something else.
Watched pot never boils as they say.

it's good.. got it.. just barely....
+20 pips
first live trade..
there's a signal from the 60 min candles but I am not inclined to take it when the signal appears as an initial trend change. although signals like that could be really good early entries. Will keep watching to see how that works.
We wait for the next 4hr signal as it gets closer to Europe open marked by the next gray rectangle...

about an hour before Europe open (Frankfurt)
4hr candle needs 5 pips long to signal long entry...
macd testing 0 line for cross into bullish territory
a dark red arrow from the 1 hr candle reversal setting has formed but I would not trade it.
prices are resting on the wood pivot...

we have our 4hr long signal just before Europe opens.
placed one long in the micro for 20 pips
and place 3 positions for the full strategy in a demo.
20 pips is reached, we move stops for all remaining open positions to just above break even
The initial stop for all open positions is placed just below the low of the first 4hr candle in the reversal pattern.
Here it is a pretty big stop loss.
Tokyo, Sydney are still open and Frankfurt is about to open. So possibility for more trading volume.

got it +20 move stops to break even plus spread.. nothing to lose now.
2nd target set for 50 pips
3rd will try to trail for 50 +
London open is 1 hour.
A person could become very wealthy doing this...
I don't want to think about it too much, you know, the greed factor.....

Well, there's something about trading with strategy tester and it's always a lot easier for me, with it set to about 27 and heat waves rizing off the computer your chart turns to a mirrage, but still the thing keeps going, up and down and up and down one pip then one pip again. Never seen price movement like that.

It may be a way to overcome nervous trader syndrome which I have in spades. The one pip up and down thing is bad enough but reality considerably worse and blew about $10 in my $100 demo yesterday. Today got the entrance right on break above descending trendline on 15M chart. luckilly, but what I'm thinking is, without some other means of predicting at least a price direction, which is something jiva seems to have, these entrances alone may not make a complete system.

Still stick to what I said in Tony's thread - as systems go in forex factory, and one must assume everywhere else, it's unusually good - You could say: could be used by beginning trader who knows nothing about price movement. The temptation is to - and what I did is - took 2RevBarsEntry_arr0Bar_mtf and set it for Trigger: 5, SL/TP 20. then went back to Dec. 20 counting trades (where I ran out of steam, though addmittedly a dumb season to use as example.)

The result is: Hourly: Total 93 trades, 26 of which were bad. That is if you took the trades shown and let them run to TP or SL never touching it again, not taking into account that the indicator repaints when the bar changes color and erases the bad entrance. (It would be nice if it could be made so it didn't repaint.)

With four-hour went back considerably farther but w/ fewer trades. Found it improved the general look of things if instead of 10-pip trigger & 50 SL/TP, reduced it to 8-pip trigger and 45 SL/TP. This resulted in exactly two wins for ea. looser. which if I know forex trading systems, as a basic beginning of a system is at least pretty good.

As a means of getting the direction right - which is where I always loose, there, and re-engineering it after entering - Do they have shrinks for nervous traders? I'll bet. - am now into "TVI_2color Crossover". (My thesis.):: The 2color (Tick Volume Indicator) repaints but not as much as Hull which will not deign to be placed in a separte window. By setting one TVI at 12, 12, 5 and the other at 25, 25, 5, you get a crossover that is pretty reliable, and believe it will be possible to get to know the indicator(s) behavior when the price reverses. 15M Chart must be set at second-biggest for the way I'm using it now.

Best to two candle traders, hope this thread continues. B.

if there is a pull back and we develop a clearly defined swing low I will move the stop for the second position to just under the swing low and leave the stop for the 3rd position where it is, just above break even.

Thank you.

Yes the arrows for the 1 hour signals tend to disappear, repaint when the conditions for the signal change. Disappointing. But if you consider any indicator is simply identifying possible trade conditions. So paint or repaint in that sense doesn't really matter. If a possible trade condition has been identified by an indicator then other factors will need to be considered to see if it is indeed a trade opportunity. But I do not find the repainting to be the case with 4hr. they are stronger signals evidently.
If I were to use the 1 hour signal it would be as a reentry signals only in a clearly defined trend, although I have not experimented with that as of yet.

Another possible use for the 1hr would be to scalp the 5m movements, looking for 5 or 10 pips per trade.


the fluctuations are enough to drive anyone mad.
The dreaded nervous disorder I call "The cat and the fish bowl".
Heiken ashi candles helps a lot to filter out the erratic movements.
One of the reasons I like to use them so much, the other being their trend indication.

I consult the candles quite often but do not use them alone.

The significance of trading in conjunction with market times cannot be overestimated.
It is what gives credibility to technical signals.
Good luck and look forward to hearing of your experiences.

heiken ashi are just averaging it down,the previous candles with the nowz,

closed position #2 at r1.
I expect a bit of a pullback here, usually some resistance at r1.
if we get a swing low will move stop for remaining position to just under the swing low and try to catch more pips...
A close for 3rd position would be stop out or exit at cross of macd.

yeah, smooths things...
not such a bumpy ride...

here is where I would watch the 15 min candle chart.
To look for a pullback... swing low

so far 38 fib retrace but not a strong swing low formation...
at London open.
50 fib retrace would be nice
our present stop could tolerate even a 61 retrace.

nice move above previous hi and through r1 right about when Tokyo is closing.
move stop to just under the swing low, not a true swing low but close enough.
either stop out or macd cross for exit

would expect some more resistance here also.
yesterday's wood pivot point..

candle view chart 2

Tokyo closed and the buying started in again.
Probably some profit taking heading into the Tokyo close.

This is really hard. To stay in the trade and not take 90+ pips.
But that is the idea behind the 3rd position. to stay in as long as possible.
It is a free trade, nothing to lose.
macd is still looking strong... no sign of cross over
heiken ashi candles showing long upper wicks,
and r2 is just ahead...
prices usually will go to the r or s levels they are closest to.
the strategy is macd cross or stop out.
but 90 pips!!!
so this self control.

that was it, I closed out
I saw the spike on the 15 min and thought either we are going to go through another pullback or we are turning around.
I was probably wrong about both since r2 is so close above.
I will try to keep the discipline better next time. but for today nice gains +162.
Maybe another signal at US open.
Break time...
http://t3.gstatic.com/images?q=tbn:A...xgF7USt2TBzxzg