Day Trading & Forex Forum

Scanjet

The best way of trading inside bars is to identify them on a higher time frame then trade them on a lower one. For example, 4hr and 15min is a good combination. Draw a horizontal line at the breakout points on your 15m chart and trade a trend away from the line using trend following indicators and the mark1 eyeball.
Price action rules IMHO. Much better than buying the wonderful $7k black boxes so beloved by many on these boards.

timsk

Hi Split,
If - as seems to be the case - you're struggling with inside bars and when (or not) to trade them, I suggest a longer TF. Try 10, 15 or 30 minutes. There are numerous inside bars on your 5 minute chart (including one after the one you've highlighted) and, assigning deep significance to each and every one will drive you batty and probably lose you money if you try and trade them all. It's essential, IMO, to have some way of distinguishing between those that are significant from those that are not. A slower TF, basic trend analysis and S/R will help greatly in separating the men from the boys.
Tim.

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Great traders and great comedians share a common skill that underpins their success: they're both experts at TIMING.

Splitlink

I'll try Scanjet's way, see how it goes. I have a problem with faraway stops. I have survived by exiting quickly.
This is my problem with long bars in higher TFs and the reason that I don't like the hourly ones. TD's hourly pinbars are the same. Scan jet suggests 15M as a trigger, which I may like better. I'll let you know how it goes and Good Luck to those who are researching this.

Thanks for the feedback.

Split

Scanjet

One thing, your trend hunt is only valid for the duration of the next 4hr bar assuming you're using 4hr/15m.

Kurrency

I love discussions .
Splitlink, Thanks for blowing up my screenshot to show more that I missed. The 5 inside bars I have put a rectangle around are the trades I did on that chart.

After I posted this I made another trade and got out for 18 pip loss.
I also trade equity this way that is why I thought it might be nice to have a thread started and discuss different ways to use it (Like Scanjet's way)

Am new to the forum but not to trading nice to see so many helpful replies.

Splitlink

Right, thanks. I can only trade mornings so I am starting with 2 hours. The first one was 0600 on May 12. At 0800, look what happened.

timsk

If you're a fan of IB's and you trade the FTSE, then these are exciting times! The probability of a breach of Monday's low (the big red bu88er) is better than 98%, IMO. However, the possibility that price will find support at 4,300 is almost as great. Buying pressure could then see tomorrow's close back 'inside' the extremes of the big red bu88er. If that happens, yet another test of 4,500 is on the cards. On the other hand . . . if price just blasts right through support, then we could look for a test of same to see if it then becomes resistance. If this happens - and it holds - then this is extremely bearish action and price could waterfall all the way back down to the March lows.
Tim.

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__________________
Great traders and great comedians share a common skill that underpins their success: they're both experts at TIMING.

neil

Scan - could you illustrate via a chart please?

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neil
Education is an admirable thing but it is well to remember, from time to time, that nothing that is worth knowing can be taught.
(Oscar Wilde)