Two Reversal Bar Entry System

seems like a waste of time..
maybe I need to eat some tim tams..

Trade in place for Tokyo open
Long look for 20 pips
time to do something else.

being a smartass there jiva,lol

Could not be at the trading desk to manage the trade. Closed early.
But it was a great signal and entry.
would have taken the 20+ and the 50+ targets and would still be in the trade just about to exit the 3rd.

Looking at the weekly chart there is some resistance as prices bump up against the 200ema.
Would expect to see some stalling and maybe a slide back a bit. Unless of course they just blast through it.

No doubt going to r1... which corresponds to the 200 ema on the weekly...
If I had stayed in and managed the positions would still be in the trade.
Will wait for Europe open. Conditions can change on a dime... so to speak...

I noticed the indicator repaints is there away to stop this ie once signal given it stays on the chart to allow visual back testing

[
quote=jiva34;4324982]No doubt going to r1... which corresponds to the 200 ema on the weekly...
If I had stayed in and managed the positions would still be in the trade.
Will wait for Europe open. Conditions can change on a dime... so to speak...[/quote]

[/quote]
The indicator is simply showing if prices move 5 pips one way or the other in relation to the opening of a new 4 hour candle. Since the candle is still being formed there is no way to guarantee which way the candle will form.
So it is not exactly repainting. It is just that the 4 hour candle has not closed yet.
That is why other considerations are so important. Market time, s and r, general trend etc.
The arrows simply show that a trade condition may be forming. Like any other indicator the possibility is there. It is not a blind go ahead signal.
If the arrows appear there is a very high probability of success.

Five minutes till a new 4hr candle and we are looking for a short signal.
Sometimes I will check a/d and there is definite divergence there that favors short.
a signal here and that could take us down the 20 to 50 pips into the US open.
r1 has already been tested and rejected so yesterday's repeat of spike up to resistance is not likely.
macd has crossed.
The wood pivot and the 200ema are sitting together just below...both strong magnets.
No new data until US data after US open.
That's the reasoning however markets like to defy reasoning......
It is possible we could go back up to retest r1, not much transacting took place there on the first test.

There's the signal.
In 3 positions demo
1 position micro..
1st tgt 20, 2nd 50
3 let it run...
stop just above high of 1 4hr candle in the setup.
We want to get to 20 pips asap. Since then we can move the remaining stop to just below break even and go do something else.

Hi Jiva,

been following from the sidelines, 1st attepmt to tade it on demo today and i too caught that signal although i could have been a little late in and currently -14. Did you hit your 1st +20?

Thanks for sharing

Thanks for your time and sincere efforts.
Happy to hear you are sensible enough to only trade demo.
Mostly traders are way too impatient and try to trade their hard earned money too soon before having a realistic grasp of the trading. Needless to say they only lose their money, sometimes ALL their money....
I am still learning the ins and outs myself.
We had a similar situation yesterday.
After a major move upwards towards resistance trading stalled out and there was a retest of the resistence.
Similar situation today.
It is all a matter of buyers and sellers.
When there are more sellers it goes down, more buyers it goes up.
What makes them buy or sell,? What they think is going to happen to value of the currencies, data, news, etc.
We just finished a huge run up in the Asian markets. They are smaller markets than London and US.
Some of those Asian buyers would want to lock in gains and sell off a bit before their markets close, So we saw a pullback.
But now the sellers may be becoming few and far between and the larger London market buyers are taking over. Also US is about to open. More buyers since the general mood is risk is now okay, economic recovery is good.
So I took the signal short, trying to consider as many things as I could but I did not consider like this before entering the trade.
So if it is a bad trade I can learn from it. What to look for when there is a signal. We want to understand as much as possible about what is going on in the market place so that we can evaluate signal when it appears.
The signals are not set in stone they simply point out there may be a trade opportunity.
Traders want to just put it on automatic, but there are so many automatic trading programs out there and they are very dangerous. I have looked at so many and they all involve way too much risk and eventually destroy an account..
there is something to be said for trying to understand the underlying forces at work in the market.
As least that is my opinion at present. Of course everything in forex changes, so maybe that will change too. But that is how I see things at present

there's the resistance we are testing..
the 200ema on the day chart.
likely to break through to the upside, unfortunately...
we can think maybe we will get a pullback...
if US housing data in 45 mins is exceptional (hmmm it's been a while since US housing data has been a rousing source of enthusiasm)I closed the micro for a loss.
letting the demo play out. Most likely we will get a good signal long...
This is the same scenario as yesterday.
Only yesterday after the spike higher we had a big drop.
The dangers of trying to trade against a strong trend.

Jiva,

Good summary.

Maybe there is some milage in only trading with the trend in the higher time frames, although then you could miss some good entries on the retracements! Ill keep it on demo for a while.

Trade update: SL hit!

I will keep you updated with my progress.

same scenario as yesterday.
signal appeared short against a strong trend.
Then it disappeared the position stopped out and then the signal reappeared.
So today it has also disappeared and stop is taken out, but whether it reappears or not is questionable.
I do not have a problem with this appearing and disappearing. Because the indicator is only indicating that a possible trade set up may be taking place. It is up to me to decide if it worth taking or not.

So please don't start posting and whining and fussing that it repaints.
If you do, it only shows that you do not understand what this indicator is and what it is measuring...and you should read the thread first
and it will be time to hit the ignore button...

thank you..

It is a matter of fine tuning.
We simply want to get in with a good entry and then manage the positions.
If it were so easy then we would all be billionaires by now. But it can be done and we will do it...

happy to be along for the ride.

Hope i can contribute to the testing and idea's

are we about to see a repeat performance of yesterday?

Jiva,

Can i ask how you are managing your trades once open?

I have been using Steve Hopwood MPTM which allows you to set a BE at say + 20 and you can combine this with a partial close of your open position.

let me know if you think it could be useful and ill post the link

yes please post the link.
I have been manually managing the open positions.
But if there were an ea that could be set to do it, very nice...