Inside bar trading
  #1 (permalink)  
Old 02-13-2009, 04:29 PM
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Posts: 5
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Red face Inside bar trading

Inside Bar Trading
Please adhere to the following rules of this thread:

1- Only post charts that are based on the template called inside_bar.tpl attached on the first post.
2- We are only discussing trades on the Hour time frame.
3- Do not post trades after the fact.
4- Please do not discuss other strategies, indicators or timeframes.
5- I am not going to discuss adding new indicators or trying to improve the current strategy.
6- This thread is set up to discuss the strategy detailed below in order to help people learn the system. I am not looking to improve it.
7- Please do not ask basic 101 Forex questions. Visit Babypips for this info.
8- Please do not ask technical questions like how to setup or install templates etc.
9- Please respect the above rules and each other.






I have been asked several times about this trading technique, so I have decided to start a thread. All you need for this is a 30 Minute chart, Daily Pivot Points and the ability to draw trendlines on your chart. So join in and we will graduate to the higher charts together. Once we get several people together, we will assign differant pairs to watch so we can catch them all. Below you see an example of an Inside Bar trade that is triggered to the low side. Once the Inside Bar is formed, you take the High and the low of the previous candle. When the price breaks to the low side 3 pips below the trigger candle low a stop is placed 5 pips above the high of the same candle and the opposite is the same for longs. Entry will vary, you can put a T/P at the nearest Pivot point or you can watch the trade and try to ride it out. You can pull your stop to B/E and just wait for the big ones or you can just settle with 10 or 15 Pips. There are many ways to make it work so lets give it a try.

Profit Targets: If you are trading 1 mini then you have no choice but to target 1/2 the ATR value at the time of the IB as shown in the 2nd chart below, or the first line of support or resistance, such as a Pivot Point or a distict low or high.. If you can pull profit, then you would pull 1/2 of your profit off at the ATR or first line of support or resistance and move stop to B/E and let the other 1/2 run to Support or resistance or double the first value.

On the third chart you see a plethora of opportunities:

IB 1) No long here, only short. You see there is plenty of room to the trendline. Counter trades can be profitable especially trading away from the DPP. ATR says 38 and there is at least 60 to the UTL. Nice trade for 38 pips.

IB 2) Nasty headfake here and I probably would not have taken 2 counters in a row. If I did, it would have been a loser. No long trade here because there is no room to the DPP.

IB 3) A double header and you always take the longer trigger bar. You would check and see that the ATR is 36 and the M3 Mid Pivot is 47 away. A good trade that nets 47 pips.

IB 4) This is a trade within a trade, ATR is 36 but M3 is only 26 so we settle for 26 here. A good trade at 26 pips.

IB 5) Another Double Header and by rule we take the first trigger bar and ignore the other IB. Trading away from the 89 and M3 we have a good 80 pips to the DPP. This one does not spring back to hit your B/E stop and ATR is 40 so you pull 1/2 profit at 40 and let the other run. A good trade at 120 total pips.

IB 6) This trade is ignored because you are already in a counter and you are getting to close to DPP.

231 Pips in one morning, didnt even break a sweat.


Pairs Traded here: USD/JPY
EUR/USD
GBP/USD
USD/CHF
USD/CAD
AUD/USD
EUR/JPY
GBP/JPY For expierienced traders only
EUR/CHF
CHF/JPY
EUR/GBP For expierinced traders only
NZD/USD



LONG STOPS ARE 5 PIPS BELOW THE TRIGGER BAR LOW.
SHORT STOPS ARE 5 PIPS ABOVE THE TRIGGER BAR HIGH + Spread.

If there is anyone who could help me moderate this room, please send me a message as I can not be here 24 hours a day.

There is one more thing, Stay out of IB's when the sessions open and close. Wait and trade the momentum. I have seen this method fail a few times and they happen right at the opening of a certain session.

See post #665 for directions on Trailstop E.A.

5 Questions to ask myself before pulling the trigger!!

1) Am I trading trendwise or at least with T.O.M. (Trend of the Moment)?

2) Am I trading away from my trendlines?

3) Am I trading during any news releases?

4) Am I trading just before session opens.

5) Am I clear of the DPP and the 89 SMA?

T.O.M. = Trend of the Moment
IB = Inside Bar
DPP = Daily Pivot Point
DT = Double top
TT = Tweeser Tops
UTL = Up Trendline
DTL = Down Trendline
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Coming soon
  #2 (permalink)  
Old 02-13-2009, 04:30 PM
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Posts: 5
hard1head1 is on a distinguished road
Default Coming soon

Quote:
Originally Posted by hard1head1 View Post
Inside Bar Trading
Please adhere to the following rules of this thread:

1- Only post charts that are based on the template called inside_bar.tpl attached on the first post.
2- We are only discussing trades on the Hour time frame.
3- Do not post trades after the fact.
4- Please do not discuss other strategies, indicators or timeframes.
5- I am not going to discuss adding new indicators or trying to improve the current strategy.
6- This thread is set up to discuss the strategy detailed below in order to help people learn the system. I am not looking to improve it.
7- Please do not ask basic 101 Forex questions. Visit Babypips for this info.
8- Please do not ask technical questions like how to setup or install templates etc.
9- Please respect the above rules and each other.






I have been asked several times about this trading technique, so I have decided to start a thread. All you need for this is a 30 Minute chart, Daily Pivot Points and the ability to draw trendlines on your chart. So join in and we will graduate to the higher charts together. Once we get several people together, we will assign differant pairs to watch so we can catch them all. Below you see an example of an Inside Bar trade that is triggered to the low side. Once the Inside Bar is formed, you take the High and the low of the previous candle. When the price breaks to the low side 3 pips below the trigger candle low a stop is placed 5 pips above the high of the same candle and the opposite is the same for longs. Entry will vary, you can put a T/P at the nearest Pivot point or you can watch the trade and try to ride it out. You can pull your stop to B/E and just wait for the big ones or you can just settle with 10 or 15 Pips. There are many ways to make it work so lets give it a try.

Profit Targets: If you are trading 1 mini then you have no choice but to target 1/2 the ATR value at the time of the IB as shown in the 2nd chart below, or the first line of support or resistance, such as a Pivot Point or a distict low or high.. If you can pull profit, then you would pull 1/2 of your profit off at the ATR or first line of support or resistance and move stop to B/E and let the other 1/2 run to Support or resistance or double the first value.

On the third chart you see a plethora of opportunities:

IB 1) No long here, only short. You see there is plenty of room to the trendline. Counter trades can be profitable especially trading away from the DPP. ATR says 38 and there is at least 60 to the UTL. Nice trade for 38 pips.

IB 2) Nasty headfake here and I probably would not have taken 2 counters in a row. If I did, it would have been a loser. No long trade here because there is no room to the DPP.

IB 3) A double header and you always take the longer trigger bar. You would check and see that the ATR is 36 and the M3 Mid Pivot is 47 away. A good trade that nets 47 pips.

IB 4) This is a trade within a trade, ATR is 36 but M3 is only 26 so we settle for 26 here. A good trade at 26 pips.

IB 5) Another Double Header and by rule we take the first trigger bar and ignore the other IB. Trading away from the 89 and M3 we have a good 80 pips to the DPP. This one does not spring back to hit your B/E stop and ATR is 40 so you pull 1/2 profit at 40 and let the other run. A good trade at 120 total pips.

IB 6) This trade is ignored because you are already in a counter and you are getting to close to DPP.

231 Pips in one morning, didnt even break a sweat.


Pairs Traded here: USD/JPY
EUR/USD
GBP/USD
USD/CHF
USD/CAD
AUD/USD
EUR/JPY
GBP/JPY For expierienced traders only
EUR/CHF
CHF/JPY
EUR/GBP For expierinced traders only
NZD/USD



LONG STOPS ARE 5 PIPS BELOW THE TRIGGER BAR LOW.
SHORT STOPS ARE 5 PIPS ABOVE THE TRIGGER BAR HIGH + Spread.

If there is anyone who could help me moderate this room, please send me a message as I can not be here 24 hours a day.

There is one more thing, Stay out of IB's when the sessions open and close. Wait and trade the momentum. I have seen this method fail a few times and they happen right at the opening of a certain session.

See post #665 for directions on Trailstop E.A.

5 Questions to ask myself before pulling the trigger!!

1) Am I trading trendwise or at least with T.O.M. (Trend of the Moment)?

2) Am I trading away from my trendlines?

3) Am I trading during any news releases?

4) Am I trading just before session opens.

5) Am I clear of the DPP and the 89 SMA?

T.O.M. = Trend of the Moment
IB = Inside Bar
DPP = Daily Pivot Point
DT = Double top
TT = Tweeser Tops
UTL = Up Trendline
DTL = Down Trendline
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Great System
  #3 (permalink)  
Old 02-13-2009, 04:31 PM
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Default Great System

I will start soon and help anyone i can.
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  #4 (permalink)  
Old 02-13-2009, 04:51 PM
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Hi
What happen to the EA you were working on to trade the IB? I like your system but as you know it is hard to trade when you can't monitor the market all the time.
Mike
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  #5 (permalink)  
Old 02-13-2009, 05:22 PM
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Default

I see they booted you from FF, too!!

This is how I keep track of DIBS and INSIDE BAR trading opportunities:

istixl likes this.
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You are on the internet - If you (google) search for it, you'll probably find it.
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inside bar
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Old 02-13-2009, 11:52 PM
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Default inside bar

inside bar trading is a sign continues trend , is it right ?
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Yea
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Old 02-14-2009, 01:43 PM
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Default Yea

Gonna take me awhile to get going, so be patient. You guys that know the system, know I can't always be here because of my business. Help me keep this running?

Jim
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Example
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Old 02-14-2009, 01:58 PM
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hard1head1 is on a distinguished road
Default Example

Simple system. Enter at break of trigger line and set stop to oppostite IB line and target 20 pips. Once target is hit take half profit and move stop to B/E and change to 20 pip trail.

Jim
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Old 02-14-2009, 02:45 PM
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Nice system
Here is also an indy to show the IB:
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  #10 (permalink)  
Old 02-14-2009, 03:43 PM
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Location: Cleveland OH USA
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Default

Jim glad to see ya here
I really learned a lot from the other forum looking forward to leanring more here.
I've been demoing since 1-28 and I'm hitting over 85% wins almost got to 90 but 2 bad plays too close to the 89 line.

I've uploaded a script that helps place trades faster.
adjust MaxLotDecimal = 1;for FXDD and .01 for interbank doesn't place trades all the time not sure why.
I didn't create these but I think if the IB spread is too small it wont take it by the script
Set Hotkeys and press 2 buttons and trade is there

ps I was wondering what you where getting at here you last post
http://www.forexfactory.com/attachme...9&d=1234033725
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