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  • #5,921
  • Mar 2, 2012 1:56am Mar 2, 2012 1:56am
Quoting vcary
Hello Emmanuel,
Please, what means double inside bar, in psychology of trader?
Best regards
vcary
Hi vcary,

Inside Bars refer to post#2660. Good stuff shared by LazyLobster.

I use inside bar to detect price contractions.

Market volatility occurs in cycles and there will always be periods when both buyers and sellers will rest. These periods of rest will cause the market to contract before expanding again. The contractions are simply market sentiments when both buyers and sellers take stock of their positions before committing their next move. It is knowing the market cycling of contractions and expansion which will help traders identify when the ‘choppy’ period and trade this sort of market type.

Candlestick/Bar patterns are good way to look for the market contraction and expansion. Inside Bar and Outside Bar are just two bar patterns which are commonly use by traders. You will see these bar patterns in your charts in all different timeframes.

Traders have to design their trading system according to the market type they want to trade. The trading timeframe is important in any system design because the frequency and range of such contractions and expansion are different.

In my case, I trade short swings which last 2~3 days during the week and I do not hold positions over the weekends except under certain market conditions. I use the H4 timeframe and broker data set to GMT+0 for consistency.

But I do not simply trade any Inside Bar I see on my charts. What I look for is narrow ranged inside bars (NRIBs). On H4, I look for those IBs which formed within the most recent 4 bars, i.e. the IB must be the smallest of the last 3 bars and the maximum range is less than 2xATR(100) on H4. For example, if the H4 ATR(100) is 40pips, then the range of the 4 bars must be below 80pips. Beside this, the NRIB must be near a key support and resistance zone/level.

For more research into chart pattern trading:
Lookup books by author Thomas Bulkowski. This chap has done quite a lot of research into chart patterns.

He has a website: http://thepatternsite.com/index.html ... a wonderful place to be in when you have insomnia and not wanting to lay in bed counting sheep. ..

Kind regards,
ET
Honesty is a very expensive gift. You wont find it in cheap people.WBuffett
  • #5,922
  • Mar 2, 2012 2:05am Mar 2, 2012 2:05am
Quoting emmanuel7788
Hi vcary,

Inside Bars refer to post#2660. Good stuff shared by LazyLobster.

I use inside bar to detect price contractions.

[size=3]Market volatility occurs in cycles and there will always be periods when both buyers and sellers will rest. These periods of rest will cause the market to contract before expanding again. The contractions are simply market sentiments when both buyers and sellers take stock of their positions before committing their next move. It...
thank you very much Emmanuel, it is very, very instructive!
Best regards
vcary
  • #5,923
  • Mar 2, 2012 2:07am Mar 2, 2012 2:07am
Quoting Gwsands
Hi Emmanuel,

H4 patterns are very dependent on your broker, i.e. when they close the bar. I do not see a new double top on either of my brokers.

Edit - sorry, meant to say no new double inside bar!

Hi Gwsands,

Yes, you are absolutely correct H4 is different on different broker platform. See attached chart.
This is unique in a sense, that not all traders will see the same pattern in their charts. This is good, isn't it?
What is more importrant is CONSISTENCY in trading.
Can you imagine if a trader creates a chart using 5-hour candle and build a system around a 5-hour candle. He will be successful when he trade this 5-hour candle system consistently and with own set of discipline.

Anyway, as I write this, EU already broke out....30pips in my bag today.

Kind regards,
ET
Attached Image (click to enlarge)
Click to Enlarge Name: Server time compare.png Size: 57 KB
Honesty is a very expensive gift. You wont find it in cheap people.WBuffett
  • #5,924
  • Mar 2, 2012 2:18am Mar 2, 2012 2:18am
Quoting emmanuel7788
Hi Gwsands,

Yes, you are absolutely correct H4 is different on different broker platform. See attached chart.
This is unique in a sense, that not all traders will see the same pattern in their charts. This is good, isn't it?
What is more importrant is CONSISTENCY in trading.
Can you imagine if a trader creates a chart using 5-hour candle and build a system around a 5-hour candle. He will be successful when he trade this 5-hour candle system consistently and with own set of discipline.

Anyway, as I write this, EU already broke out....30pips...
hello emmanuel,
is not that inside bar mean reversal? i do notice double inside bar there. but since the inside bar has same color. i didnt think it is as reversal signal. but how do you know it would continue down? and why did you exit at +30 pips?
  • #5,925
  • Mar 2, 2012 2:39am Mar 2, 2012 2:39am
Any of you still Short there is a lot of potential support below:

1. 1.618 Fib Ext @ 1.3247
2. Daily S2 @ 1.3242
3. Weekly S1 @1.3231
4. 50% Fib Ret @ 1.3231

Good Luck!

PS should have added that all the previous consolidation at this level in the past should act as support now.
  • #5,926
  • Mar 2, 2012 2:43am Mar 2, 2012 2:43am
Quoting shoot2scoot
Any of you still Short there is a lot of potential support below:

1. 1.618 Fib Ext @ 1.3247
2. Daily S2 @ 1.3242
3. Weekly S1 @1.3231
4. 50% Fib Ret @ 1.3231

Good Luck!
yes im short still ... two shorts target 1.3248 quite a bit of strength ..GO BEARS!
  • #5,927
  • Mar 2, 2012 2:44am Mar 2, 2012 2:44am
Quoting ljin
hello emmanuel,
is not that inside bar mean reversal? i do notice double inside bar there. but since the inside bar has same color. i didnt think it is as reversal signal. but how do you know it would continue down? and why did you exit at +30 pips?
Hi ljin,

few things you must know how I trade.
- I have my Big Picture in my view all the time.
- I look at D1 every day opening,
- I look at H4 charts all the time.... every 4 -hours, seldom sleep more than that in 4-h sleeping slots. trader's life sounds miserable saying this.
- I time my trade entry using H1.
- for intraday, I use the daily pivots and weekly pivots, no EMAs although these are useful to many traders,
-

for todays trade, H4 'trend' or flow is down. So the higher probability is continuation. Asian stock makrt bullish following US market close. This is sign of USD strength.
- EU trade below daily pivot and the weekly pivot is far above.

- the GMT0300 H1 candle close below the PAC , show sign of momentum with successive red candles.
- I trade using multi-lot strategy. One lot exit at R which is initial SL.
- remaining lots, moved to BE+3pips. Today trade logical R is 30pips very attractive to position size.
- trade exits according to market condition. I can add new positions using earned profits when I see strong trend. Use continuation setups.
- I do not jump out of trades seeing ugly candles. I need to see a setup which will invalidate my trades.

Hope this explains.

Kind regards,

-
Honesty is a very expensive gift. You wont find it in cheap people.WBuffett
  • #5,928
  • Mar 2, 2012 2:58am Mar 2, 2012 2:58am
Quoting emmanuel7788
Hi ljin,

few things you must know how I trade.
- I have my Big Picture in my view all the time.
- I look at D1 every day opening,
- I look at H4 charts all the time.... every 4 -hours, seldom sleep more than that in 4-h sleeping slots. trader's life sounds miserable saying this.
- I time my trade entry using H1.
- for intraday, I use the daily pivots and weekly pivots, no EMAs although these are useful to many traders,
-

for todays trade, H4 'trend' or flow is down. So the higher probability is continuation. Asian stock makrt bullish...
hello thanks for you great explanation.
are you using PAC? ma set to high and low?
i got in short on the open of candle GMT+2 10.00 (LO) , i open there because prev candle going past daily s1 , TDI lower than MBL, and TDI bounce from signal and i see h4 TDI still cross. am i right? or am i already too late? so far i hold 15pips
  • #5,929
  • Mar 2, 2012 3:04am Mar 2, 2012 3:04am
Is everyone on the gravy train? Choo choo! All aboard...

Lovely move downward!
  • #5,930
  • Mar 2, 2012 3:07am Mar 2, 2012 3:07am
Quoting Phx62
Two nice EU M15 trades this morning on crosses of the TDI for a total of 63 pips....Also picked up 75 more on the EJ M15....
The lines on my chart are something I am testing right now and are not a part of this trading system. I won't answer questions on them right now.

The 2nd vertical line is in the wrong place...it should be over the entry candle of the 2nd trade.
Please Phx62, what is your stop loss, with trade M15?
Best regards
vcary
  • #5,931
  • Mar 2, 2012 3:11am Mar 2, 2012 3:11am
Quoting emmanuel7788
Hi Gwsands,

Yes, you are absolutely correct H4 is different on different broker platform. See attached chart.
This is unique in a sense, that not all traders will see the same pattern in their charts. This is good, isn't it?
What is more importrant is CONSISTENCY in trading.
Can you imagine if a trader creates a chart using 5-hour candle and build a system around a 5-hour candle. He will be successful when he trade this 5-hour candle system consistently and with own set of discipline.

Anyway, as I write this, EU already broke out....30pips...
Hi emmanuel7788, thanks for all your help and support you give on this thread very interesting reading, were you trading that EU trade off the 1h timeframe? what made you enter if you don't mind me asking?
Also do you only use japenese candlesticks?
  • #5,932
  • Mar 2, 2012 3:16am Mar 2, 2012 3:16am
Quoting ljin
hello thanks for you great explanation.
are you using PAC? ma set to high and low?
i got in short on the open of candle GMT+2 10.00 (LO) , i open there because prev candle going past daily s1 , TDI lower than MBL, and TDI bounce from signal and i see h4 TDI still cross. am i right? or am i already too late? so far i hold 15pips

Hi,

Yes, PAC is set high and low of 5MA, smooth, shift 0.
See post #5698.

I think you followed S3 EU H1 rules here so nothing wrong. But there are times when market move just after Tokyo sushi time.
If you listen to Asian market news and hear that Asian market trade higher, rebound, etc. after US closed night before. This when you take note of ealry move before Frankfurt open.

regards,
Honesty is a very expensive gift. You wont find it in cheap people.WBuffett
  • #5,933
  • Mar 2, 2012 3:28am Mar 2, 2012 3:28am
Quoting cmmichaels
Hi emmanuel7788, thanks for all your help and support you give on this thread very interesting reading, were you trading that EU trade off the 1h timeframe? what made you enter if you don't mind me asking?
Also do you only use japenese candlesticks?

Hi cmmichaels,

Yes, for intraday trading, most of my entries are done using H1 chart TF. Sometimes, I cheat using M15 for better entry price.

I am a true believer in using MTF (multi-timeframe) trading. Bascially use 3 TFs for intraday trading.
- D1 for the overall trend
- H4 for looking for setups
- H1 for timing my entry...S3 is great for this. Can never be any simpler.

The TF used is in ratio 4 to 1.
If I use H4 for trend, then H1 is for trade setups, M15 for timing entry.

I avoid using M15 because my heart cannot take that kind of excitement, too stressful for me.

H4 is relaxing, H1 is low excitement....

Details of my trading habits ...read post#5931 just few post above.
Honesty is a very expensive gift. You wont find it in cheap people.WBuffett
  • #5,934
  • Mar 2, 2012 3:37am Mar 2, 2012 3:37am
Quoting emmanuel7788
Hi cmmichaels,


I am a true believer in using MTF (multi-timeframe) trading. Bascially use 3 TFs for intraday trading.
- D1 for the overall trend
- H4 for looking for setups
- H1 for timing my entry...S3 is great for this. Can never be any simpler.
On your multi-time analysis, would you agree with my chart? looks like we may see the price continue short until phase 2 is complete? (Phase 2 i mean the retracement phase of the uptrend)
Attached Image (click to enlarge)
Click to Enlarge Name: 02-03-2012 09-23-06.png Size: 63 KB
  • #5,935
  • Mar 2, 2012 3:37am Mar 2, 2012 3:37am
Hi pals,

Look for a possible bullish divergence on EURUSD H1 chart !!
Possible reversal?
  • #5,936
  • Edited 3:55am Mar 2, 2012 3:38am | Edited 3:55am
Quoting vcary
Please Phx62, what is your stop loss, with trade M15?
Best regards
vcary
Hi vcary,

I guess Phx62 is still in bed, its 04:30EST. he should be up before the next H4 candle open.

I read that he uses 25pips SL/ 25pips TP.

25 pips is good, because statistically, the H1 ATR(10) to ATR(100) on H1 range about 25pips average.
This is one of my reason why I chose to exit portion of my intrday trades at 30pips. It is usually quick within 1~3 candles and you get a win trade in short time. This definitely help in positive psyche when trading. Also better overall win rate and it help covers any potential loss in worst case scenario.

Cheers!
Honesty is a very expensive gift. You wont find it in cheap people.WBuffett
  • #5,937
  • Mar 2, 2012 3:44am Mar 2, 2012 3:44am
Quoting X-Man
[color=Blue][size=3]Goodmorning Guys

Its the weekend.

Yesterday there was a webinar on wealth creation investing
There were some valuable traders there like dean malone , raghee horner , Ross.

I sat in that webinar and wanted just to see how those traders go about trading and what train of thought they have.
They each have their own kind of trading style but they all have something in common which is CONSISTENCY .

They always stick to their trading system and trade it with their trade plan.
Those guys have years of experience...
Thanks , good reading .
  • #5,938
  • Mar 2, 2012 3:58am Mar 2, 2012 3:58am
Quoting Invest_or
Hi pals,

Look for a possible bullish divergence on EURUSD H1 chart !!
Possible reversal?

Can you post a chart to show this please?
Honesty is a very expensive gift. You wont find it in cheap people.WBuffett
  • #5,939
  • Mar 2, 2012 3:59am Mar 2, 2012 3:59am
Quoting emmanuel7788
Hi vcary,

I guess Phx62 is still in bed, its 04:30EST. he should be up before the next H4 candle open.

I read that he uses 25pips SL/ 25pips TP.

25 pips is good, because statistically, the H1 ATR(10) to ATR(100) on H1 range about 25pips average.
This is one of my reason why I chose to exit portion of my intrday trades at 30pips. It is usually quick within 1~3 candles and you get a win trade in short time. This definitely help in positive psyche when trading. Also better overall win rate and it help covers any potential loss in worst...
Once again Emmanuel, thank you very much, from French Guyane!
Best regards
vcary
  • #5,940
  • Mar 2, 2012 4:06am Mar 2, 2012 4:06am
i read a few posts today about how a few traders here are short, any particular reason why you went short, sure its going down but on the london open it was already the 7th red candle. isnt that alittle too risky?
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