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prochargedmopar
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Being a market rider?

Postby prochargedmopar » Sat Jan 03, 2009 4:55 pm

I hear, "be the leaf", "go with the flow", "trade with current candle color", ect.

Well,
I was thinking about how to do this literally.
Say for instance a particular pair has an avg range of 60. Knowing this it should only take 2 hrs to rake in at least 50 pips with a max of 6 trades.

Check my thinking.

I see that most candles have wicks.
Most candles start one direction(color) and then retrace to form the wick. They will then form a body before beginning to retrace again to form the wick in the other direction.

Knowing this:
Lets say just as the first hr closes and the next opens I wait for 2 pips, What ever color the candle is at that moment I will jump in with a trade in that direction. We know the odds are that it will retrace and become a candle of a different color as shown by "stats2". Most of the time it goes red,green,red,green,red,green......
As the retrace starts we can jump off with -5 to +5 pips. Immediately trade in the "new" direction when the candle changes colors (within 1-2 pips).
Now, ride the body and the portion of the wick that has yet to form. You should now have 15-90 pips being that the "avg" range is 60. When it starts to retrace a third time and you SEE the wick forming at the other end (5pips worth) you would jump off and re-enter riding the 2nd wick formation.

3 trades per hr as prescribed.
6 Max per day.

It may actually take you 12 trades in a 4 hr period but you would never have more than a 5 pip loss per entrance/exit. You could also skip the first trade and wait for the "2nd" signal which would be the beginning 1-2 pips for the "body" formation which would have to match the H1 and D1 color.

The reason this popped into my head is because it's agonizing for me to watch/wait while a candle progresses toward a line (10-20 pips or more wasted) and then have the thing turn around just as I jump on to "go with the flow". For me the flow is already over and I'm swimming up stream in sh*t! I feel as I'm wasting pips likes there is no tomorrow. I don't see how I could get eaten up by a two pip spread and a 3 pip S/L (5 total) if the candles avg. range is at least 60 and up. Just think about using this on "buzzards". Ride the waves.......

All TRO's stats would be useful to keep the "probabilities" on your side. But think about it. Even these stats are the PAST. Doesn't he always ask "what is the price doing RIGHT NOW?

Anyone here ever read the book "The Power of Now" by a German named Eckhardt Tolle?

It fits what we are doing.

I may try this Monday if I'm feeling extremely present.
#1BODY in direction of profit #2INCREASE lot size Obsessively
My Losses cause me Great Laughter!
Trading Bible here> therumpledone/the-ideas-that-i-trade-by-t3256/page1670

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Re: Being a market rider?

Postby MightyOne » Sat Jan 03, 2009 6:06 pm

prochargedmopar wrote:I hear, "be the leaf", "go with the flow", "trade with current candle color", ect.

Well,
I was thinking about how to do this literally.
Say for instance a particular pair has an avg range of 60. Knowing this it should only take 2 hrs to rake in at least 50 pips with a max of 6 trades.

Check my thinking.

I see that most candles have wicks.
Most candles start one direction(color) and then retrace to form the wick. They will then form a body before beginning to retrace again to form the wick in the other direction.

Knowing this:
Lets say just as the first hr closes and the next opens I wait for 2 pips, What ever color the candle is at that moment I will jump in with a trade in that direction. We know the odds are that it will retrace and become a candle of a different color as shown by "stats2". Most of the time it goes red,green,red,green,red,green......
As the retrace starts we can jump off with -5 to +5 pips. Immediately trade in the "new" direction when the candle changes colors (within 1-2 pips).
Now, ride the body and the portion of the wick that has yet to form. You should now have 15-90 pips being that the "avg" range is 60. When it starts to retrace a third time and you SEE the wick forming at the other end (5pips worth) you would jump off and re-enter riding the 2nd wick formation.

3 trades per hr as prescribed.
6 Max per day.

It may actually take you 12 trades in a 4 hr period but you would never have more than a 5 pip loss per entrance/exit. You could also skip the first trade and wait for the "2nd" signal which would be the beginning 1-2 pips for the "body" formation which would have to match the H1 and D1 color.

The reason this popped into my head is because it's agonizing for me to watch/wait while a candle progresses toward a line (10-20 pips or more wasted) and then have the thing turn around just as I jump on to "go with the flow". For me the flow is already over and I'm swimming up stream in sh*t! I feel as I'm wasting pips likes there is no tomorrow. I don't see how I could get eaten up by a two pip spread and a 3 pip S/L (5 total) if the candles avg. range is at least 60 and up. Just think about using this on "buzzards". Ride the waves.......

All TRO's stats would be useful to keep the "probabilities" on your side. But think about it. Even these stats are the PAST. Doesn't he always ask "what is the price doing RIGHT NOW?

Anyone here ever read the book "The Power of Now" by a German named Eckhardt Tolle?

It fits what we are doing.

I may try this Monday if I'm feeling extremely present.


"Be the tree"

Trees grow up because that is where the (profit) is, and they need the (profit) in order to continue growing. Like most plants, trees grow from (small initial deposits) and have (trading knowledge), (the understanding of how to apply such knowledge), and (flexibility in how a trade can be executed).

A (small initial deposit) sends its (trading knowledge) deep into the (brain) where it begins to grow, to take (ideas) from the (brain) to help it grow. The (trading knowledge) keeps growing deeper, sending off new (applications of such knowledge) in all directions as it seeks the (ideas) it needs.

After the (trading knowledge) has started, an (application of such knowledge) begins to grow up towards the (realization of profit). The (application of knowledge) carries (ideas) into the (realization of profit) where all three work to form (even stronger trading knowledge), (flexibility) and, eventually, (a massive account size).

The continuous (strengthening of knowledge) and then producing of (flexibility) is necessary because it is the (flexibility) that makes (paychecks) out of (trade execution) to nourish the (trader). Without (all of the above) trees would not grow.
Last edited by MightyOne on Sat Jan 03, 2009 6:15 pm, edited 1 time in total.

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TheRumpledOne
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Postby TheRumpledOne » Sat Jan 03, 2009 6:10 pm

Image

Put the finishing touches on the DIBS indicators.
IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!

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Postby razorboy » Sat Jan 03, 2009 6:44 pm

Just so I am on the same page - the dots mark the top and bottom thirds of a candle and the whatever is the space in between - trade the current candle vs these points in the previous candle. Looks similar to ideal of using the pivot point of previous candle to enter except that it gives you both short and long set ups

how do you "define" a "break out"

MightyOne wrote:
[align=center] You can use whatever time frame you want to show you the way.
You are not trading on a higher time frame you are trading with it.
[/align]


Image

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Postby MightyOne » Sat Jan 03, 2009 6:47 pm

TheRumpledOne wrote:Image

Put the finishing touches on the DIBS indicators.


I know plenty of traders that trade only:

Inside Bars

Outside bars

Two equal or almost equal highs (within 2 pips) side by side

Two equal or almost equal lows side by side

And multiple bar inside bars as shown below...
they do well for themselves:

Image
Last edited by MightyOne on Sat Jan 03, 2009 7:17 pm, edited 1 time in total.

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Postby MightyOne » Sat Jan 03, 2009 6:59 pm

Yes, the dots mark the top and bottom thirds of the candle.
Yes, long trades ONLY above the top dot and short trades ONLY below the bottom dot.
Yes, the middle area you can go either long or short.
Yes, you look at the dot on the current candle instead of the previous candle should price "breakout" above the high or low extreme of the previous candle.

I "define" a breakout, for this method, as a move above the previous high or low.

After a breakout and price moves to the dot of the current candle you can look for shorts, but waiting for price to close so you have candle color on your side is more ideal.
That said, we are discretionary traders and discretionary traders do whatever the _ _ _ _ they want :wink:

razorboy wrote:Just so I am on the same page - the dots mark the top and bottom thirds of a candle and the whatever is the space in between - trade the current candle vs these points in the previous candle. Looks similar to ideal of using the pivot point of previous candle to enter except that it gives you both short and long set ups

how do you "define" a "break out"

MightyOne wrote:
[align=center] You can use whatever time frame you want to show you the way.
You are not trading on a higher time frame you are trading with it.
[/align]


Image

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Postby MightyOne » Sat Jan 03, 2009 7:25 pm

Here is an example of near equal high and low BO trading:

Image

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Postby TheRumpledOne » Sat Jan 03, 2009 7:26 pm

Image


MightyOne:

I thought an INSIDE BAR is a bar where:

PREV BAR HIGH > CURRENT BAR HIGH

AND

PREV BAR LOW < CURRENT BAR LOW

Some of your IB labels are on bars that do NOT fit that criteria.

Perhaps you can elaborate.

Thanks.
IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!



Please do NOT PM me with trading or coding questions, post them in a thread.

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MightyOne
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Postby MightyOne » Sat Jan 03, 2009 7:33 pm

TheRumpledOne wrote:MightyOne:

I thought an INSIDE BAR is a bar where:

PREV BAR HIGH > CURRENT BAR HIGH

AND

PREV BAR LOW < CURRENT BAR LOW

Some of your IB labels are on bars that do NOT fit that criteria.

Perhaps you can elaborate.

Thanks.


When an IB forms instead of saying "prev. bar" say "trapped inside the range of."
When future candles are "trapped inside the range of" this bar they they share highest high and lowest lows until they "break outside the range of."

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Postby prochargedmopar » Sat Jan 03, 2009 7:37 pm

I thought an Inside Bar would be something like Nickb's "Master Candle Method" where the first bar would be considered the master and all subsequent bars were inside this range. The more bars the more it's a "master" and the first that breaks this range tends to be a breakout in that direction.
#1BODY in direction of profit #2INCREASE lot size Obsessively
My Losses cause me Great Laughter!
Trading Bible here> therumpledone/the-ideas-that-i-trade-by-t3256/page1670

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