BABON FINAL VERSION - PART 2
14. "Classic" Babon - Entry Rules
After we got the big picture we know whether we wait for a long Babon signal or for a short Babon signal.
Babon Slope can change its color as long as the candle isn't closed. That's why for us the confirmed signal is the second candle. If the color changed from red to blue, the second "blue candle" is a signal candle for going long. If the color changed from blue to red, the second "red candle" is a signal candle for going short.
Please look at the Pictures 9 and 10 (thank you, Artem).
After we got a confirmed Babon Slope's signal, we have to validate it. Let's say that after getting the big picture we decided to take only long signals and now we've got the long Babon Slope's signal (for the short signals everything's the opposite).
So, if it is a long signal:
a). The price must be above the Ichimoku cloud, or we can wait price going above the cloud, but in that case we can wait only 3-4 candles.
b). We want to see the price going from the lower TMA M5 border to the upper TMA M5 border
c). The TMA M5 channel has to have the right angle: it can go up or it can be horizontal (or at least almost horizontal), but for the long signal we don't want to see TMA M5 channel going down.
d). Then we determine whether this trade has a good potential. We look at the distance between the price and the upper TMA M5 band (the upper yellow line). Yes, TMA M5 repaints, but it repaints less than TMA M1, it is much more stable and steady than TMA M1, and this distance between the price and the upper yellow line is very important. Basically the more the distance is, the more potential this trade has. At M1 price usually goes more or less between the upper TMA M5 band and the lower TMA M5 band, it can go much further if the trend is good, but we can't rely on it. If the distance between the price and the upper yellow band is less than 10 pips there are good chances that we won't get even those 10 pips and that this upper line would work like a strong resistance.
e). Very important to pay attention to the previous candle, don't enter if the previous candle is 10+ pips! It is very important because the candle that is too long can cause a fake Babon Slope's signal! Besides M1 10+ pips candle usually causes a pullback, we don't want it, we want to enter with the smallest drawdown possible.
f). We also want to see the right M1 Price Action, for the long signal we want to see higher highs and higher lows (for the short signal - lower lows and lower highs). Please see Pictures 11 and 12:
And I do recommend to read Lance Beggs on Price Action, Volumes 2 and 3, I already gave the link.
g). Then we double-check H1. We look at Babon-H1, if H1 shows the trend up or if it was a trend down but now the price started going up, then we can decide that basically H1 supports our decision to go long.
h). So, if everything is right, we enter. I recommend SL (or lock) 15 pips for EURJPY and GBPJPY, 12 pips for EURUSD, GBPUSD etc. I recommend 15 pips emergency stop, I personally use locks, but it doesn't matter - you have to have either SL or lock, I would never trade without that, and the currency doesn't matter - I've seen USDCAD making 100+ move in a couple of minutes. We don't need TP. Now we have to watch both templates, Babon-A and Babon-B, it is also a good idea to keep Babon-H1 open too.
15. Classic Babon - Exit Rules
If everything is OK and the price goes up, we want to exit depending on the strength of the movement. If the trend is so-so, we'd better exit when the price at Babon-B M1 crosses TMA M1 upper band (the upper black line). If the trend is good, we want to wait at least until the price crosses TMA M5 (the upper yellow line). If the trend is very good, we can wait until the price crosses TMA M15 (the upper red line). At the same time we have to pay attention to H1: how close is the price to the blue line (TMA H1)? Sometimes when the trend is not just very good, but excellent, we can exit when the price crosses the blue H1 line. Whatever the TMA is, I usually try to exit at the end of the minute.
But at the same time we have to remember - if Babon Slope changes color to red or if the price went under Babon Slope's line, it is a very good sign that the up-movement is over or almost over. Yes, sometimes I don't exit because my TMA lines show that I'd better wait, but you need a lot of practice to decide what is more important at the moment - the movement's strength and momentum or the Babon's signal.
We also have to remember - if the price goes inside the Ichimoku cloud, we'd better exit.
I also exit if the M1 candle is too long and this long candle crossed one of the TMAs.
And, of course, if we see that the price went against us, we'd better exit with a small profit or a small loss, after all we can always re-enter if the situation improves.
Even if we entered according to the Classic Babon Rules, we have to watch out for two TMA M1 patterns on the Babon-B template. If we see "TMA M1 beyond TMA M5/M15", we'd better think about profit-taking, because the pullback is coming. On the other hand, if we see a good "TMA M1 beyond the Ichimoku cloud" pattern forming, we can stay in the trend much longer than we expected in the first place.
I prefer to exit when the price crosses TMA M5 or TMA M15. I have to see a very good and strong movement to decide to go to TMA H1. But if I think there is a possibility to go to TMA H1 or even to TMA H4, I double-check my H1. First of all I want to know that we are not near the TMA H4 center line (white line). This center line is a very strong S/R. If the center line is OK I look at the TMA H1 and TMA H4. I want to see that the price inside TMA H1 and inside TMA H4 goes in the same direction. The angle of the slope doesn't matter, only the price's direction is important! So if I think that we can go as low as the TMA H1 lower border, I want to see the price going from the TMA H4 upper border toward it's lower border and I want to see the price going from the TMA H1 upper border toward the lower border. And, of course, I watch for the "Double breakout" pattern.
16. Pattern "TMA M1 beyond the Ichimoku cloud"
See Pictures 13 and 14:
It is a very important and a very profitable pattern!
When the whole TMA M1 channel (both the upper border and the lower border) goes under the Ichimoku cloud and the channel is NOT horizontal, then we can expect a very good and profitable short trade.
And, of course, when the whole TMA M1 channel (both the upper border and the lower border) goes above the Ichimoku cloud and the channel is NOT horizontal, then we can expect a very good and profitable long trade.
A good thing about this pattern is that even when we see only the TMA M1 center line crosses the cloud we already anticipate the pattern formation and can get ready, checking M1 Price Action and H1's "big picture".
We can trade this pattern independently, we don't have to follow the Classic Babon Rules.
To enter with this pattern we want to see three things:
a). The right H1 "big picture"
b). A good TMA M1 angle
c). A good M1 Price Action
And we can enter not only if we see a Babon Slope signal, but also independently, based on M1 Price Action only.
I enter when I see a good M1 Price Action pattern, and for this kind of trading it could be not only higher low - lower high, but any good M1 Price action pattern, for example a breakout.
If we see a good signal but the signal candle is 10 pips or more, then we wouldn't enter, we wait a little bit and watch the price action before we enter.
It is because my experience says: on M1 after a long (10+ pips) candle we usually have a pullback, so we don't want to enter under the worst conditions, we want to wait and decrease the possible drawdown.
SL, TP and exit - exactly as in Classic Babon.
This pattern is probably the best method I've ever created. When we get a Dashboard, we'll be able to watch 8-10 pairs and choose the best patterns.
17. Pattern "TMA M1 beyond TMA M5/M15"
See Pictures 15, 16 and 17:
When after a good trend TMA M1 goes beyond TMA M5 or it goes even beyond both TMA M5 and TMA M15, then we have either a pullback or even a trend's change! This pullback can be as small as 8-10 pips or as big as 30+ pips, but we have to have this pullback at any case!
What does that mean?
First of all, when we see this pattern, we know that in a little while we'll have a pullback, so if we have an open trade, we have to think about closing it taking our profits. Of course, the pullback won't start immediately after we see the pattern, there will be a little while, we can get almost maximal profit and exit when the Babon or Price Action or our experience tells us to do that!
Second, some of you can try to trade this pullback. I personally don't trade this pattern's pullbacks, I use this pattern only to get out, but I do know traders who trade this pullback successfully. You can get 8-10 pips practically every time, just remember that it is a counter-trend and don't be greedy.
Third, if the trend is strong, we can re-enter after the pullback is over (the Babon and Price Action will show us where and when). I trade those re-entries after pullbacks successfully.
If the TMA M1 went not only beyond TMA M5, but also beyond TMA M15, we usually have much stronger pullback than if it just TMA M5.
Even when we see TMA M1 beyond TMA M5 we could stay for a little while IF the TMA M1's angle (the slope) is still good at the pattern "TMA M1 beyond the Ichimoku cloud"!
18. Classic Babon - trades, illustrations, details.
http://www.forexfactory.com/showthread.php?p=6543511#post6543511
http://www.forexfactory.com/showthread.php?p=6543784#post6543784
http://www.forexfactory.com/showthread.php?p=6544780#post6544780
http://www.forexfactory.com/showthread.php?p=6546865#post6546865
http://www.forexfactory.com/showthread.php?p=6547054#post6547054
http://www.forexfactory.com/showthread.php?p=6550475#post6550475
http://www.forexfactory.com/showthread.php?p=6550672#post6550672
http://www.forexfactory.com/showthread.php?p=6550738#post6550738
http://www.forexfactory.com/showthread.php?p=6550747#post6550747
http://www.forexfactory.com/showthread.php?p=6551872#post6551872
http://www.forexfactory.com/showthread.php?p=6567876#post6567876
http://www.forexfactory.com/showthread.php?p=6567947#post6567947
http://www.forexfactory.com/showthread.php?p=6571958#post6571958
http://www.forexfactory.com/showthread.php?p=6583628#post6583628
http://www.forexfactory.com/showthread.php?p=6583692#post6583692
http://www.forexfactory.com/showthread.php?p=6583716#post6583716
http://www.forexfactory.com/showthread.php?p=6583914#post6583914
http://www.forexfactory.com/showthread.php?p=6584755#post6584755
http://www.forexfactory.com/showthread.php?p=6586480#post6586480
http://www.forexfactory.com/showthread.php?p=6586622#post6586622
http://www.forexfactory.com/showthread.php?p=6586651#post6586651
http://www.forexfactory.com/showthread.php?p=6586690#post6586690
http://www.forexfactory.com/showthread.php?p=6587625#post6587625
http://www.forexfactory.com/showthread.php?p=6588707#post6588707
http://www.forexfactory.com/showthread.php?p=6589984#post6589984
http://www.forexfactory.com/showthread.php?p=6590893#post6590893
http://www.forexfactory.com/showthread.php?p=6591044#post6591044
http://www.forexfactory.com/showthread.php?p=6593420#post6593420
http://www.forexfactory.com/showthread.php?p=6593985#post6593985
http://www.forexfactory.com/showthread.php?p=6595661#post6595661
http://www.forexfactory.com/showthread.php?p=6595886#post6595886
http://www.forexfactory.com/showthread.php?p=6596131#post6596131
http://www.forexfactory.com/showthread.php?p=6603738#post6603738
http://www.forexfactory.com/showthread.php?p=6603901#post6603901
http://www.forexfactory.com/showthread.php?p=6611722#post6611722
http://www.forexfactory.com/showthread.php?p=6613530#post6613530
http://www.forexfactory.com/showthread.php?p=6614111#post6614111
http://www.forexfactory.com/showthread.php?p=6615583#post6615583
http://www.forexfactory.com/showthread.php?p=6615607#post6615607
http://www.forexfactory.com/showthread.php?p=6615877#post6615877
http://www.forexfactory.com/showthread.php?p=6615897#post6615897
http://www.forexfactory.com/showthread.php?p=6616137#post6616137
http://www.forexfactory.com/showthread.php?p=6616966#post6616966
http://www.forexfactory.com/showthread.php?p=6619653#post6619653
http://www.forexfactory.com/showthread.php?p=6619694#post6619694
http://www.forexfactory.com/showthread.php?p=6619706#post6619706
http://www.forexfactory.com/showthread.php?p=6620010#post6620010
http://www.forexfactory.com/showthread.php?p=6625292#post6625292
http://www.forexfactory.com/showthread.php?p=6629875#post6629875
http://www.forexfactory.com/showthread.php?p=6630482#post6630482
http://www.forexfactory.com/showthread.php?p=6632255#post6632255
http://www.forexfactory.com/showthread.php?p=6634142#post6634142
http://www.forexfactory.com/showthread.php?p=6634926#post6634926
http://www.forexfactory.com/showthread.php?p=6634960#post6634960
http://www.forexfactory.com/showthread.php?p=6635072#post6635072
http://www.forexfactory.com/showthread.php?p=6636475#post6636475
http://www.forexfactory.com/showthread.php?p=6636564#post6636564
http://www.forexfactory.com/showthread.php?p=6636795#post6636795
http://www.forexfactory.com/showthread.php?p=6637432#post6637432
http://www.forexfactory.com/showthread.php?p=6639073#post6639073
http://www.forexfactory.com/showthread.php?p=6639287#post6639287
http://www.forexfactory.com/showthread.php?p=6639393#post6639393
http://www.forexfactory.com/showthread.php?p=6640239#post6640239
http://www.forexfactory.com/showthread.php?p=6640668#post6640668
http://www.forexfactory.com/showthread.php?p=6640681#post6640681
http://www.forexfactory.com/showthread.php?p=6640768#post6640768
http://www.forexfactory.com/showthread.php?p=6642326#post6642326
19. "TMA M1 beyond the Ichimoku cloud" - trades, illustrations, details.
http://www.forexfactory.com/showthread.php?p=6551084#post6551084
http://www.forexfactory.com/showthread.php?p=6551992#post6551992
http://www.forexfactory.com/showthread.php?p=6554093#post6554093
http://www.forexfactory.com/showthread.php?p=6554140#post6554140
http://www.forexfactory.com/showthread.php?p=6554726#post6554726
http://www.forexfactory.com/showthread.php?p=6564962#post6564962
http://www.forexfactory.com/showthread.php?p=6566037#post6566037
http://www.forexfactory.com/showthread.php?p=6567726#post6567726
http://www.forexfactory.com/showthread.php?p=6569038#post6569038
http://www.forexfactory.com/showthread.php?p=6569107#post6569107
http://www.forexfactory.com/showthread.php?p=6586774#post6586774
http://www.forexfactory.com/showthread.php?p=6590292#post6590292
http://www.forexfactory.com/showthread.php?p=6590327#post6590327
http://www.forexfactory.com/showthread.php?p=6603749#post6603749
http://www.forexfactory.com/showthread.php?p=6603976#post6603976
http://www.forexfactory.com/showthread.php?p=6604026#post6604026
http://www.forexfactory.com/showthread.php?p=6607719#post6607719
http://www.forexfactory.com/showthread.php?p=6608590#post6608590
http://www.forexfactory.com/showthread.php?p=6608796#post6608796
http://www.forexfactory.com/showthread.php?p=6611316#post6611316
http://www.forexfactory.com/showthread.php?p=6614197#post6614197
http://www.forexfactory.com/showthread.php?p=6616161#post6616161
http://www.forexfactory.com/showthread.php?p=6617016#post6617016
http://www.forexfactory.com/showthread.php?p=6618466#post6618466
http://www.forexfactory.com/showthread.php?p=6620826#post6620826
http://www.forexfactory.com/showthread.php?p=6631040#post6631040
http://www.forexfactory.com/showthread.php?p=6632506#post6632506
http://www.forexfactory.com/showthread.php?p=6639921#post6639921
20. Naked pattern trading with "TMA M1 beyond the Ichimoku cloud" - trades, illustrations, details.
http://www.forexfactory.com/showthread.php?p=6597898#post6597898
http://www.forexfactory.com/showthread.php?p=6598064#post6598064
http://www.forexfactory.com/showthread.php?p=6603546#post6603546
http://www.forexfactory.com/showthread.php?p=6603607#post6603607
http://www.forexfactory.com/showthread.php?p=6603840#post6603840
http://www.forexfactory.com/showthread.php?p=6605000#post6605000
http://www.forexfactory.com/showthread.php?p=6611207#post6611207
http://www.forexfactory.com/showthread.php?p=6611474#post6611474
http://www.forexfactory.com/showthread.php?p=6611507#post6611507
http://www.forexfactory.com/showthread.php?p=6611515#post6611515
http://www.forexfactory.com/showthread.php?p=6611913#post6611913
http://www.forexfactory.com/showthread.php?p=6615698#post6615698
http://www.forexfactory.com/showthread.php?p=6616443#post6616443
http://www.forexfactory.com/showthread.php?p=6619780#post6619780
http://www.forexfactory.com/showthread.php?p=6619916#post6619916
http://www.forexfactory.com/showthread.php?p=6620109#post6620109
http://www.forexfactory.com/showthread.php?p=6625621#post6625621
http://www.forexfactory.com/showthread.php?p=6626140#post6626140
http://www.forexfactory.com/showthread.php?p=6629851#post6629851
http://www.forexfactory.com/showthread.php?p=6630556#post6630556
http://www.forexfactory.com/showthread.php?p=6631951#post6631951
http://www.forexfactory.com/showthread.php?p=6632205#post6632205
http://www.forexfactory.com/showthread.php?p=6632891#post6632891
http://www.forexfactory.com/showthread.php?p=6632990#post6632990
http://www.forexfactory.com/showthread.php?p=6634799#post6634799
http://www.forexfactory.com/showthread.php?p=6634839#post6634839
http://www.forexfactory.com/showthread.php?p=6634907#post6634907
http://www.forexfactory.com/showthread.php?p=6639689#post6639689
http://www.forexfactory.com/showthread.php?p=6639824#post6639824
http://www.forexfactory.com/showthread.php?p=6640009#post6640009
http://www.forexfactory.com/showthread.php?p=6640067#post6640067
http://www.forexfactory.com/showthread.php?p=6640112#post6640112
http://www.forexfactory.com/showthread.php?p=6640217#post6640217
21. Pattern "TMA M1 beyond TMA M5/M15" - trades, illustrations, details.
http://www.forexfactory.com/showthread.php?p=6604862#post6604862
http://www.forexfactory.com/showthread.php?p=6605078#post6605078
http://www.forexfactory.com/showthread.php?p=6598746#post6598746
http://www.forexfactory.com/showthread.php?p=6603607#post6603607
http://www.forexfactory.com/showthread.php?p=6603990#post6603990
http://www.forexfactory.com/showthread.php?p=6608417#post6608417
http://www.forexfactory.com/showthread.php?p=6608586#post6608586
http://www.forexfactory.com/showthread.php?p=6609046#post6609046
http://www.forexfactory.com/showthread.php?p=6609196#post6609196
http://www.forexfactory.com/showthread.php?p=6611228#post6611228
http://www.forexfactory.com/showthread.php?p=6611550#post6611550
http://www.forexfactory.com/showthread.php?p=6611932#post6611932
http://www.forexfactory.com/showthread.php?p=6612531#post6612531
http://www.forexfactory.com/showthread.php?p=6612645#post6612645
http://www.forexfactory.com/showthread.php?p=6621473#post6621473
http://www.forexfactory.com/showthread.php?p=6625265#post6625265
http://www.forexfactory.com/showthread.php?p=6625392#post6625392
22. You can download "Lance Beggs' Summary for Babon Traders" here:
(unfortunately it requires registration)
http://www.4shared.com/file/W7RL1Ax4/Lance_Beggs_Summary_for_Babon_.html
or without registration (thank you, Technician) here:
http://yadi.sk/d/QgOotuQj4Ga7r
23. You can download "The Most Important Price Action Patterns for Babon Traders" here:
(unfortunately it requires registration)
http://www.4shared.com/file/Xe6XkqCn/The_Most_Important_Price_Actio.html
24. My MM (but please remember that MM is a very personal thing):
http://www.forexfactory.com/showthread.php?p=6623081#post6623081
THE END OF THE BABON FINAL SUMMARY
14. "Classic" Babon - Entry Rules
After we got the big picture we know whether we wait for a long Babon signal or for a short Babon signal.
Babon Slope can change its color as long as the candle isn't closed. That's why for us the confirmed signal is the second candle. If the color changed from red to blue, the second "blue candle" is a signal candle for going long. If the color changed from blue to red, the second "red candle" is a signal candle for going short.
Please look at the Pictures 9 and 10 (thank you, Artem).
Attached Image
Attached Image
After we got a confirmed Babon Slope's signal, we have to validate it. Let's say that after getting the big picture we decided to take only long signals and now we've got the long Babon Slope's signal (for the short signals everything's the opposite).
So, if it is a long signal:
a). The price must be above the Ichimoku cloud, or we can wait price going above the cloud, but in that case we can wait only 3-4 candles.
b). We want to see the price going from the lower TMA M5 border to the upper TMA M5 border
c). The TMA M5 channel has to have the right angle: it can go up or it can be horizontal (or at least almost horizontal), but for the long signal we don't want to see TMA M5 channel going down.
d). Then we determine whether this trade has a good potential. We look at the distance between the price and the upper TMA M5 band (the upper yellow line). Yes, TMA M5 repaints, but it repaints less than TMA M1, it is much more stable and steady than TMA M1, and this distance between the price and the upper yellow line is very important. Basically the more the distance is, the more potential this trade has. At M1 price usually goes more or less between the upper TMA M5 band and the lower TMA M5 band, it can go much further if the trend is good, but we can't rely on it. If the distance between the price and the upper yellow band is less than 10 pips there are good chances that we won't get even those 10 pips and that this upper line would work like a strong resistance.
e). Very important to pay attention to the previous candle, don't enter if the previous candle is 10+ pips! It is very important because the candle that is too long can cause a fake Babon Slope's signal! Besides M1 10+ pips candle usually causes a pullback, we don't want it, we want to enter with the smallest drawdown possible.
f). We also want to see the right M1 Price Action, for the long signal we want to see higher highs and higher lows (for the short signal - lower lows and lower highs). Please see Pictures 11 and 12:
And I do recommend to read Lance Beggs on Price Action, Volumes 2 and 3, I already gave the link.
g). Then we double-check H1. We look at Babon-H1, if H1 shows the trend up or if it was a trend down but now the price started going up, then we can decide that basically H1 supports our decision to go long.
h). So, if everything is right, we enter. I recommend SL (or lock) 15 pips for EURJPY and GBPJPY, 12 pips for EURUSD, GBPUSD etc. I recommend 15 pips emergency stop, I personally use locks, but it doesn't matter - you have to have either SL or lock, I would never trade without that, and the currency doesn't matter - I've seen USDCAD making 100+ move in a couple of minutes. We don't need TP. Now we have to watch both templates, Babon-A and Babon-B, it is also a good idea to keep Babon-H1 open too.
15. Classic Babon - Exit Rules
If everything is OK and the price goes up, we want to exit depending on the strength of the movement. If the trend is so-so, we'd better exit when the price at Babon-B M1 crosses TMA M1 upper band (the upper black line). If the trend is good, we want to wait at least until the price crosses TMA M5 (the upper yellow line). If the trend is very good, we can wait until the price crosses TMA M15 (the upper red line). At the same time we have to pay attention to H1: how close is the price to the blue line (TMA H1)? Sometimes when the trend is not just very good, but excellent, we can exit when the price crosses the blue H1 line. Whatever the TMA is, I usually try to exit at the end of the minute.
But at the same time we have to remember - if Babon Slope changes color to red or if the price went under Babon Slope's line, it is a very good sign that the up-movement is over or almost over. Yes, sometimes I don't exit because my TMA lines show that I'd better wait, but you need a lot of practice to decide what is more important at the moment - the movement's strength and momentum or the Babon's signal.
We also have to remember - if the price goes inside the Ichimoku cloud, we'd better exit.
I also exit if the M1 candle is too long and this long candle crossed one of the TMAs.
And, of course, if we see that the price went against us, we'd better exit with a small profit or a small loss, after all we can always re-enter if the situation improves.
Even if we entered according to the Classic Babon Rules, we have to watch out for two TMA M1 patterns on the Babon-B template. If we see "TMA M1 beyond TMA M5/M15", we'd better think about profit-taking, because the pullback is coming. On the other hand, if we see a good "TMA M1 beyond the Ichimoku cloud" pattern forming, we can stay in the trend much longer than we expected in the first place.
I prefer to exit when the price crosses TMA M5 or TMA M15. I have to see a very good and strong movement to decide to go to TMA H1. But if I think there is a possibility to go to TMA H1 or even to TMA H4, I double-check my H1. First of all I want to know that we are not near the TMA H4 center line (white line). This center line is a very strong S/R. If the center line is OK I look at the TMA H1 and TMA H4. I want to see that the price inside TMA H1 and inside TMA H4 goes in the same direction. The angle of the slope doesn't matter, only the price's direction is important! So if I think that we can go as low as the TMA H1 lower border, I want to see the price going from the TMA H4 upper border toward it's lower border and I want to see the price going from the TMA H1 upper border toward the lower border. And, of course, I watch for the "Double breakout" pattern.
16. Pattern "TMA M1 beyond the Ichimoku cloud"
See Pictures 13 and 14:
Attached Image
Attached Image
It is a very important and a very profitable pattern!
When the whole TMA M1 channel (both the upper border and the lower border) goes under the Ichimoku cloud and the channel is NOT horizontal, then we can expect a very good and profitable short trade.
And, of course, when the whole TMA M1 channel (both the upper border and the lower border) goes above the Ichimoku cloud and the channel is NOT horizontal, then we can expect a very good and profitable long trade.
A good thing about this pattern is that even when we see only the TMA M1 center line crosses the cloud we already anticipate the pattern formation and can get ready, checking M1 Price Action and H1's "big picture".
We can trade this pattern independently, we don't have to follow the Classic Babon Rules.
To enter with this pattern we want to see three things:
a). The right H1 "big picture"
b). A good TMA M1 angle
c). A good M1 Price Action
And we can enter not only if we see a Babon Slope signal, but also independently, based on M1 Price Action only.
I enter when I see a good M1 Price Action pattern, and for this kind of trading it could be not only higher low - lower high, but any good M1 Price action pattern, for example a breakout.
If we see a good signal but the signal candle is 10 pips or more, then we wouldn't enter, we wait a little bit and watch the price action before we enter.
It is because my experience says: on M1 after a long (10+ pips) candle we usually have a pullback, so we don't want to enter under the worst conditions, we want to wait and decrease the possible drawdown.
SL, TP and exit - exactly as in Classic Babon.
This pattern is probably the best method I've ever created. When we get a Dashboard, we'll be able to watch 8-10 pairs and choose the best patterns.
17. Pattern "TMA M1 beyond TMA M5/M15"
See Pictures 15, 16 and 17:
Attached Image
Attached Image
Attached Image
When after a good trend TMA M1 goes beyond TMA M5 or it goes even beyond both TMA M5 and TMA M15, then we have either a pullback or even a trend's change! This pullback can be as small as 8-10 pips or as big as 30+ pips, but we have to have this pullback at any case!
What does that mean?
First of all, when we see this pattern, we know that in a little while we'll have a pullback, so if we have an open trade, we have to think about closing it taking our profits. Of course, the pullback won't start immediately after we see the pattern, there will be a little while, we can get almost maximal profit and exit when the Babon or Price Action or our experience tells us to do that!
Second, some of you can try to trade this pullback. I personally don't trade this pattern's pullbacks, I use this pattern only to get out, but I do know traders who trade this pullback successfully. You can get 8-10 pips practically every time, just remember that it is a counter-trend and don't be greedy.
Third, if the trend is strong, we can re-enter after the pullback is over (the Babon and Price Action will show us where and when). I trade those re-entries after pullbacks successfully.
If the TMA M1 went not only beyond TMA M5, but also beyond TMA M15, we usually have much stronger pullback than if it just TMA M5.
Even when we see TMA M1 beyond TMA M5 we could stay for a little while IF the TMA M1's angle (the slope) is still good at the pattern "TMA M1 beyond the Ichimoku cloud"!
18. Classic Babon - trades, illustrations, details.
http://www.forexfactory.com/showthread.php?p=6543511#post6543511
http://www.forexfactory.com/showthread.php?p=6543784#post6543784
http://www.forexfactory.com/showthread.php?p=6544780#post6544780
http://www.forexfactory.com/showthread.php?p=6546865#post6546865
http://www.forexfactory.com/showthread.php?p=6547054#post6547054
http://www.forexfactory.com/showthread.php?p=6550475#post6550475
http://www.forexfactory.com/showthread.php?p=6550672#post6550672
http://www.forexfactory.com/showthread.php?p=6550738#post6550738
http://www.forexfactory.com/showthread.php?p=6550747#post6550747
http://www.forexfactory.com/showthread.php?p=6551872#post6551872
http://www.forexfactory.com/showthread.php?p=6567876#post6567876
http://www.forexfactory.com/showthread.php?p=6567947#post6567947
http://www.forexfactory.com/showthread.php?p=6571958#post6571958
http://www.forexfactory.com/showthread.php?p=6583628#post6583628
http://www.forexfactory.com/showthread.php?p=6583692#post6583692
http://www.forexfactory.com/showthread.php?p=6583716#post6583716
http://www.forexfactory.com/showthread.php?p=6583914#post6583914
http://www.forexfactory.com/showthread.php?p=6584755#post6584755
http://www.forexfactory.com/showthread.php?p=6586480#post6586480
http://www.forexfactory.com/showthread.php?p=6586622#post6586622
http://www.forexfactory.com/showthread.php?p=6586651#post6586651
http://www.forexfactory.com/showthread.php?p=6586690#post6586690
http://www.forexfactory.com/showthread.php?p=6587625#post6587625
http://www.forexfactory.com/showthread.php?p=6588707#post6588707
http://www.forexfactory.com/showthread.php?p=6589984#post6589984
http://www.forexfactory.com/showthread.php?p=6590893#post6590893
http://www.forexfactory.com/showthread.php?p=6591044#post6591044
http://www.forexfactory.com/showthread.php?p=6593420#post6593420
http://www.forexfactory.com/showthread.php?p=6593985#post6593985
http://www.forexfactory.com/showthread.php?p=6595661#post6595661
http://www.forexfactory.com/showthread.php?p=6595886#post6595886
http://www.forexfactory.com/showthread.php?p=6596131#post6596131
http://www.forexfactory.com/showthread.php?p=6603738#post6603738
http://www.forexfactory.com/showthread.php?p=6603901#post6603901
http://www.forexfactory.com/showthread.php?p=6611722#post6611722
http://www.forexfactory.com/showthread.php?p=6613530#post6613530
http://www.forexfactory.com/showthread.php?p=6614111#post6614111
http://www.forexfactory.com/showthread.php?p=6615583#post6615583
http://www.forexfactory.com/showthread.php?p=6615607#post6615607
http://www.forexfactory.com/showthread.php?p=6615877#post6615877
http://www.forexfactory.com/showthread.php?p=6615897#post6615897
http://www.forexfactory.com/showthread.php?p=6616137#post6616137
http://www.forexfactory.com/showthread.php?p=6616966#post6616966
http://www.forexfactory.com/showthread.php?p=6619653#post6619653
http://www.forexfactory.com/showthread.php?p=6619694#post6619694
http://www.forexfactory.com/showthread.php?p=6619706#post6619706
http://www.forexfactory.com/showthread.php?p=6620010#post6620010
http://www.forexfactory.com/showthread.php?p=6625292#post6625292
http://www.forexfactory.com/showthread.php?p=6629875#post6629875
http://www.forexfactory.com/showthread.php?p=6630482#post6630482
http://www.forexfactory.com/showthread.php?p=6632255#post6632255
http://www.forexfactory.com/showthread.php?p=6634142#post6634142
http://www.forexfactory.com/showthread.php?p=6634926#post6634926
http://www.forexfactory.com/showthread.php?p=6634960#post6634960
http://www.forexfactory.com/showthread.php?p=6635072#post6635072
http://www.forexfactory.com/showthread.php?p=6636475#post6636475
http://www.forexfactory.com/showthread.php?p=6636564#post6636564
http://www.forexfactory.com/showthread.php?p=6636795#post6636795
http://www.forexfactory.com/showthread.php?p=6637432#post6637432
http://www.forexfactory.com/showthread.php?p=6639073#post6639073
http://www.forexfactory.com/showthread.php?p=6639287#post6639287
http://www.forexfactory.com/showthread.php?p=6639393#post6639393
http://www.forexfactory.com/showthread.php?p=6640239#post6640239
http://www.forexfactory.com/showthread.php?p=6640668#post6640668
http://www.forexfactory.com/showthread.php?p=6640681#post6640681
http://www.forexfactory.com/showthread.php?p=6640768#post6640768
http://www.forexfactory.com/showthread.php?p=6642326#post6642326
19. "TMA M1 beyond the Ichimoku cloud" - trades, illustrations, details.
http://www.forexfactory.com/showthread.php?p=6551084#post6551084
http://www.forexfactory.com/showthread.php?p=6551992#post6551992
http://www.forexfactory.com/showthread.php?p=6554093#post6554093
http://www.forexfactory.com/showthread.php?p=6554140#post6554140
http://www.forexfactory.com/showthread.php?p=6554726#post6554726
http://www.forexfactory.com/showthread.php?p=6564962#post6564962
http://www.forexfactory.com/showthread.php?p=6566037#post6566037
http://www.forexfactory.com/showthread.php?p=6567726#post6567726
http://www.forexfactory.com/showthread.php?p=6569038#post6569038
http://www.forexfactory.com/showthread.php?p=6569107#post6569107
http://www.forexfactory.com/showthread.php?p=6586774#post6586774
http://www.forexfactory.com/showthread.php?p=6590292#post6590292
http://www.forexfactory.com/showthread.php?p=6590327#post6590327
http://www.forexfactory.com/showthread.php?p=6603749#post6603749
http://www.forexfactory.com/showthread.php?p=6603976#post6603976
http://www.forexfactory.com/showthread.php?p=6604026#post6604026
http://www.forexfactory.com/showthread.php?p=6607719#post6607719
http://www.forexfactory.com/showthread.php?p=6608590#post6608590
http://www.forexfactory.com/showthread.php?p=6608796#post6608796
http://www.forexfactory.com/showthread.php?p=6611316#post6611316
http://www.forexfactory.com/showthread.php?p=6614197#post6614197
http://www.forexfactory.com/showthread.php?p=6616161#post6616161
http://www.forexfactory.com/showthread.php?p=6617016#post6617016
http://www.forexfactory.com/showthread.php?p=6618466#post6618466
http://www.forexfactory.com/showthread.php?p=6620826#post6620826
http://www.forexfactory.com/showthread.php?p=6631040#post6631040
http://www.forexfactory.com/showthread.php?p=6632506#post6632506
http://www.forexfactory.com/showthread.php?p=6639921#post6639921
20. Naked pattern trading with "TMA M1 beyond the Ichimoku cloud" - trades, illustrations, details.
http://www.forexfactory.com/showthread.php?p=6597898#post6597898
http://www.forexfactory.com/showthread.php?p=6598064#post6598064
http://www.forexfactory.com/showthread.php?p=6603546#post6603546
http://www.forexfactory.com/showthread.php?p=6603607#post6603607
http://www.forexfactory.com/showthread.php?p=6603840#post6603840
http://www.forexfactory.com/showthread.php?p=6605000#post6605000
http://www.forexfactory.com/showthread.php?p=6611207#post6611207
http://www.forexfactory.com/showthread.php?p=6611474#post6611474
http://www.forexfactory.com/showthread.php?p=6611507#post6611507
http://www.forexfactory.com/showthread.php?p=6611515#post6611515
http://www.forexfactory.com/showthread.php?p=6611913#post6611913
http://www.forexfactory.com/showthread.php?p=6615698#post6615698
http://www.forexfactory.com/showthread.php?p=6616443#post6616443
http://www.forexfactory.com/showthread.php?p=6619780#post6619780
http://www.forexfactory.com/showthread.php?p=6619916#post6619916
http://www.forexfactory.com/showthread.php?p=6620109#post6620109
http://www.forexfactory.com/showthread.php?p=6625621#post6625621
http://www.forexfactory.com/showthread.php?p=6626140#post6626140
http://www.forexfactory.com/showthread.php?p=6629851#post6629851
http://www.forexfactory.com/showthread.php?p=6630556#post6630556
http://www.forexfactory.com/showthread.php?p=6631951#post6631951
http://www.forexfactory.com/showthread.php?p=6632205#post6632205
http://www.forexfactory.com/showthread.php?p=6632891#post6632891
http://www.forexfactory.com/showthread.php?p=6632990#post6632990
http://www.forexfactory.com/showthread.php?p=6634799#post6634799
http://www.forexfactory.com/showthread.php?p=6634839#post6634839
http://www.forexfactory.com/showthread.php?p=6634907#post6634907
http://www.forexfactory.com/showthread.php?p=6639689#post6639689
http://www.forexfactory.com/showthread.php?p=6639824#post6639824
http://www.forexfactory.com/showthread.php?p=6640009#post6640009
http://www.forexfactory.com/showthread.php?p=6640067#post6640067
http://www.forexfactory.com/showthread.php?p=6640112#post6640112
http://www.forexfactory.com/showthread.php?p=6640217#post6640217
21. Pattern "TMA M1 beyond TMA M5/M15" - trades, illustrations, details.
http://www.forexfactory.com/showthread.php?p=6604862#post6604862
http://www.forexfactory.com/showthread.php?p=6605078#post6605078
http://www.forexfactory.com/showthread.php?p=6598746#post6598746
http://www.forexfactory.com/showthread.php?p=6603607#post6603607
http://www.forexfactory.com/showthread.php?p=6603990#post6603990
http://www.forexfactory.com/showthread.php?p=6608417#post6608417
http://www.forexfactory.com/showthread.php?p=6608586#post6608586
http://www.forexfactory.com/showthread.php?p=6609046#post6609046
http://www.forexfactory.com/showthread.php?p=6609196#post6609196
http://www.forexfactory.com/showthread.php?p=6611228#post6611228
http://www.forexfactory.com/showthread.php?p=6611550#post6611550
http://www.forexfactory.com/showthread.php?p=6611932#post6611932
http://www.forexfactory.com/showthread.php?p=6612531#post6612531
http://www.forexfactory.com/showthread.php?p=6612645#post6612645
http://www.forexfactory.com/showthread.php?p=6621473#post6621473
http://www.forexfactory.com/showthread.php?p=6625265#post6625265
http://www.forexfactory.com/showthread.php?p=6625392#post6625392
22. You can download "Lance Beggs' Summary for Babon Traders" here:
(unfortunately it requires registration)
http://www.4shared.com/file/W7RL1Ax4/Lance_Beggs_Summary_for_Babon_.html
or without registration (thank you, Technician) here:
http://yadi.sk/d/QgOotuQj4Ga7r
23. You can download "The Most Important Price Action Patterns for Babon Traders" here:
(unfortunately it requires registration)
http://www.4shared.com/file/Xe6XkqCn/The_Most_Important_Price_Actio.html
24. My MM (but please remember that MM is a very personal thing):
http://www.forexfactory.com/showthread.php?p=6623081#post6623081
THE END OF THE BABON FINAL SUMMARY
Gentlemen always play by the rules. If they can't, they change the rules.