Hello all.
This is for educational purpose only. When Colostarr or Titch bump into this one please do a quick check whether I did not make any major mistakes.
Since there was some confusion lately regarding the rules (set on pg.1) I decided to "dissect" this past week for possible trade entries on GBP/USD 1H TF and 4H TF.
Please feel free to compare to your broker charts. I use Alpari UK (GMT +2). Notes: when ever I say "Entry" or "Possible Entry" of course I mean placing of PENDING ORDER in accordance with the rules of this system.
"BBL" means "Blue Balance Line" i.e. the Colostarr's system from this thread.
Only 1 time I dared and there is on 1H TF suggested TP. (Taking TP is not really recommended by the rules as you may be aware). My making this TP suggestion is mainly due to the fact that there was one of the critical and often very volatile fundamental news report coming. This system is not really suitable for trading the "news reports" in my opinion.
In any case some discretionary decision making is allowed so keep that in mind.
Lastly if anyone wonders about "green/white/red" line indicator on my charts, I have to disappoint you - can not discuss it here as it would inevitably lead to "changing the rules" discussion. My apology to all. I have too much respect for the creator (Colostarr) of this system - I think it, the "system", is phenomenal and ingenious in it's simplicity.
Hello all.
This is for educational purpose only. When Colostarr or Titch bump into this one please do a quick check whether I did not make any major mistakes.
Since there was some confusion lately regarding the rules (set on pg.1) I decided to "dissect" this past week for possible trade entries on GBP/USD 1H TF and 4H TF.
Please feel free to compare to your broker charts. I use Alpari UK (GMT +2). Notes: when ever I say "Entry" or "Possible Entry" of course I mean placing of PENDING ORDER in accordance with...
Ignored
Hi Paul56
Excellent mark up, well done.
One thing I would like to mention to anyone new on here, as paul56 has said. By using the 3 pip buffer plus spread this can stop you being entered in to a false signal. It is to allow some breathing space and the direction and movement to actually be there before the trade is executed. Instead of being entered in to a flapping price action.
Hello all.
This is for educational purpose only. When Colostarr or Titch bump into this one please do a quick check whether I did not make any major mista...
I understand That:
1). pending order BUY STOP; plus buffer 3 pips + spread
2). pending order SELL STOP; ONLY using buffer (because the price on the chart is using BID PRICE)
Please help your comment.
Thank you,
Anton
One thing I would like to mention to anyone new on here, as paul56 has said. By using the 3 pip buffer plus spread this can stop you being entered in to a false signal. It is to allow some breathing space and the direction and movement to actually be there before the trade is executed. Instead of being entered in to a flapping price action.
I understand That:
1). pending order BUY STOP; plus buffer 3 pips + spread
2). pending order SELL STOP; ONLY using buffer (because the price on the chart is using BID PRICE)
Please help your comment.
Thank you,
Anton
Ignored
That is exact for sell stop since it is the bid and the bid is what we have in the chart, so we add only buffer. When the sell stop triggers, then we look at ask price for profit or stop loss. correct me if I am wrong. That's my 2cents of understanding.
When the candle closes above the blue line (the closer to the blue line the better) set a pending buy stop order at the high of that candle plus the spread, plus 3 pips. The same applies for your stop loss. Set your stop at the low of the candle minus spread, minus 3 pips
EXAMPLE: GBP/JPY closes above blue line at 131.61, the spread for this pair is 3 pips (for my broker), plus 3 pips = Buy stop at 131.67 (131.61+.03+.03=131.67)
Sell
[b]When the candle closes below the blue line (the closer to the blue line...
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Joined Jun 2011
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Status: All Time Legend
|27 Posts
[quote=paul56;4764834]Hello all.
This is for educational purpose only. When Colostarr or Titch bump into this one please do a quick check whether I did not make any major mistakes.
All of you guys who thanked me for it - you are welcome.
Just don't want you to think that I am rude.
I just hope it helps and does not add to confusion.
Pavel
Colostarr or Titch, where would you put your SL on that trade (see chart). Just want to have your feedback. Thanks
Mfinab,
Ignored
Hi Mfinab,
Your stop is in the right place for the bar you are trading my only concerns would be it is a large bearish bar meaning the stop would be quite large on entry especially as you are on the 4hr chart. Also as you say the 50 is looking like it will lay flat. I would probably wait for the next bar to close to see what happened. I suspect it may be going in to a range.
Just my opinion though
I hope this helps
Hey guys. I'm at work from 9a to 5p, do you think that trading this system on the 4hr would be effective?
I was thinking i should move it up to the 8hr or daily.
Ignored
Hi Good Looking,
You could move up timeframes as long as you equity would allow it. Work out what an average candle is on the higher timeframe for the pair you are looking to trade. Then you can calculate what the risk amount is likely to be as a percentage of you equity. It should always be the risk factor to your equity that you are willing to risk that determines what timeframe you should trade.
I understand That:
1). pending order BUY STOP; plus buffer 3 pips + spread
2). pending order SELL STOP; ONLY using buffer (because the price on the chart is using BID PRICE)
Please help your comment.
Thank you,
Anton
Ignored
Hi antonsatu
Sorry I did not answer this post I have only just seen it. It looks like it has already been answered. If you need any more assistance pm me and I will help the best I can.
Simple Simon Balance Line Trading
