Day Trading & Forex Forum

Kurrency

I apologize in advance if this has been covered and discussed here but I wanted to post this because I find it to be a good strategy. I first remember watching a video about it and then tried it out.
No automated strategy here (not from me anyways) so move along if you love downloads
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An inside bar is a bar when at it's close has a high that is less than previous bar's high and a low that is greater than the previous bar's low.

The market has to go somewhere after the formation of a inside bar. It is either going to go higher, lower or bounce within the range of the inside bars.

I am attaching a screenshot so I can better explain things.

Entry:When price breaks above (BUY) or below (SELL) the Inside Bars.

Exit: I am bad at exits so I say don't be greedy and find your own way.

Stop Loss: Stop loss should be at or below the low of the lowest of the 2 bars (that create the inside bar technique). But as you will see on my chart; to the right of it... if you had a hard stop loss set in you would be stopped out before the Eur/Usd climbed higher.
** the right side setup didn't have an entry point until it broke UP from the lines drawn.** this was just intended for a demonstration of what happens to hard stop losses.

The longer the 2 bars are the better the trade might be (see the middle part where we have a few small bodied inside bar setups)

I hope you liked this and let me know if you have any questions.

-K

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A Dashing Blade

Never ever seen anything wrong in using this concept as a basic trading startagy.

foredog

Two links in my signature that may help as well

My (short) blog on Cable IB's and the other has links to Post by Peter Crowns on another forum (FF) where he trades solely 1HR IB's

May help (may not!)

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Thinking of paying for a course, read this first http://www.trade2win.com/boards/gene...tml#post707344

My blog of a simple GBPUSD system http://simpledibs.blogspot.com/ or here http://www.trade2win.com/boards/trad...side-bars.html

Splitlink

It has many failures, though. I've been trying it for weeks. It is correct, provided that you have the direction right but then, so is almost everything else.

For those wanting to give it a try I would suggest that the trigger bar should have completed before entering the trade because there are many false, or sucker, trades in which the bar reverses and goes out the other side. I was advised that, when that happened, the trade was almost certain to reverse and so should be reversed when it enters the IB bar area, without waiting for it to go all the way through. That did not work often enough for me, either. Quite often there occurs another IB.

Hope that I haven't put you off, you may do better on another instrument or TF.

foredog

These days if it breaks out then pulls back to my entry or below i tend to just get out. Sometimes you miss a good one as it pings back into profit, sometimes you don't. I'd rather be out and wait for another than sitting there getting twitchy as it goes all the way back to my stop.

That's just me though, probably a scalper at heart!

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Thinking of paying for a course, read this first http://www.trade2win.com/boards/gene...tml#post707344

My blog of a simple GBPUSD system http://simpledibs.blogspot.com/ or here http://www.trade2win.com/boards/trad...side-bars.html

trendie

Cant remember where, but I read that IBs were at their most effective at price extremes. (sorry for introducing indicators, but boll-bands)

The idea is that price has extended, runs out of steam, congests, forming the IB, and then springs back to the median.
IBs within normal price ranges can be almost random, as per Splitlink, but at extremes, more reliable.
Will try to find out where I read that, but dont hold your breath.

hope that helps. (I dont trade them)

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If the only tool you have is a hammer, you tend to see every problem as a nail - Abraham Maslow
There are 10 kinds of people in the world; those that understand binary, and those that dont. -Anon
Warning: May contain nuts.

timsk

Hi Kurrency and welcome to T2W.
There is indeed quite a lot posted about inside bars here and elsewhere. If anyone is looking at them afresh and, particularly if they are new to trading, I would advise starting with 'failed' breakouts within the context of established trends. In this context they are a continuation pattern as opposed to a reversal pattern. They carry less risk and are much easier to trade than attempting to pick reversals. I've annotated your chart with an example.
Tim.
P.S. If you missed the entry that I've shown here, you could have had a second chance to get in just 4 bars later, where exactly the same set up presented itself. There's another example - exactly the same, earlier in the day just before 11.00.

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

Splitlink

This has just happened. IB was followed by uncertainty, as far as I am concerned. The last bar had not completed. This is a 5M Footsie.

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