Pete's Journal

yes, order is not important. Best to buy at bottom of channel, and sell at top of channel.

Good day Pete.


Hey, are you using 30 minute charts still or are you on 1 hr charts?

30min charts. But also good to check daily chart to check for the reversal pattern candles, so we could also know whats the long term trend of the currency just by lookin at candle patterns.

Peter,

I have to say that your system is more convincing than sidus and bago 's. Yours are a new system, implied with very very effective filters. I am going to try and post charts in your thread if you don't mind.

aha

Pete,

I modified the indicator you posted for Bago and now it should be no problem anymore.

aha

Thanks for providing the indicator of channel.I have installed it.Your charts are impressive work.
Good Trading.

Peter, I am using James 's price action to identify trend reversal. In the attached chart a small pin bar is formed at the bottom of the 1-hour channel signalling the end of the down trend and price will bounce up. This may or may not happen, so we have to wait the EMA cross to confirm the trade.

Hello Aha, sorry what is a pinbar ? is it inverted hammer candle ?

Just 5 minute later, the 1-hour trend channel changed direction. The price is in the middle of the trend line. Don't know if that will change the situation. Let's wait and see.

Aha, can you turn the grid lines off your chart please? Also, u didnt answere my question of what pin bar is.

You can read about pin bar in James public thread.
As I know it a pin bar has open close very near which are called two eyes and the low or high is the nose of the bar.It is same in candlesticks which has small body and long wick.Its shape and position will determine its name whether it is spin top or hammer or hangman.

09AUG- AUD/USD Long: we had two long signals on this pair

10 minutes later, a bearlish bar pattern formed and EMA did not cross. The former bar pattern signal is successfully filtered by the EMA cross filter.

Nice!

Peter,

Sorry, I didn't see your posts earlier. Ok I will turn the grid off later.

Pin bar is for Pinochio bars. I learnt it from James16 group. It usually signals a trend reversal, like a mini head and shoulder pattern. The one in the USDJPY chart is not a perfect pin bar because the nose is not long enough.

I didn't realize the trend channel might change direction. Does it mean the price breaks the trend line? It seems to be the case in the charts I posted.

aha

I am also testing suggestion made by jsabdul in this journal, where sometimes we dont see a reversal pattern on 30min chart, but we have a cross of emas and it goes for a long ride, in this case, jsabdul suggested that we look for reversal patterns on 15min chart. so if we have ema cross and we didnt spot any reversal pattern, then we turn to 15min chart to check for revesal. This still needs testing .... any comments ?

Aha, yes the channel will change direction if the trendline break, and may or may not be visible on screen untill price has made highs and lows which could form a channel.

That is a good idea Peter. You could have a slow reversal happening on a 30 minute chart but on the 15, it would give you the signal you are looking for.

10AUG- USD/CHF Short: on 8th price had bounced from topline of 4hr and today we have evening start at first three candles of morning session,but not too sure of that evening star. then we have a 5/12 crossdown, and then we have clear bearish engulfing reversal pattern, price has dropped and broken 1hr support trendline, price currently has now reached 4hr mid line.

10AUG- EUR/JPY Short: firstly we have tweezer tops at top of 1hr and 4hr channel, but wasnt too sure of that pattern, then we have bearish engulf and 5/12crossdown together. and since then price has dropped about 30pips from the entry.

I did explain this trade live to one trader buddy on chat.This trade was against the trends on 1hr and 4hr channel, but we have reversal at top of both channels, and if price navigates in channels and it bounces of top line, it has tendency to go to midline or to bottom of the channel.

SELL Tops, BUY Dips

UPDATE: this trade went all the way down to 4hr midline, over 100pip trade

10AUG- GBP/USD Short: Evening Star + 5/12crossdown at top of 1hr channel. Entry 9049, and price has dropped more then 40pips. Risk is big on this trade.