Inside Bar Trading Technique -Good Results-

[tenbobtrader]

consider just a narrow range bar Split

Thanks for the link. I found it very useful. I'm working on lower TFs, now, because I am, by nature, an impatient soul and need a morning trading idea that I can close, hopefully at a profit, by 1300. Hourly TFs do not give me enough bars to analise for that period and my preference is TF15.

I know what you guys will say but those are the cards I must play with, unless I trade overnight, which I don't like, either.

Split

Split

confess that my only interest in inside bars or any other price pattern for that matter that forms on intra day timeframes is to locate the market stops fuel locations (retail traders) and set up from there

another trader noted that inside bars worked best at extremes

noticed you like M15 timeframe Split, you could perhaps consider a study of narrow range M15 bars at extremes

extreme judged by perhaps by H1 & S & R locations, ATR or displacement from a SMA or combination. Volume if you have access is another filter to consider.

glad you liked the article, hope you fall into something soon

 

[neil]

thanks

Hi neil,
Check out the posts by 'Hawkmoon' and 'ampro' in foredog's thread on IB's - they go into using a multiple time frame approach:
http://www.trade2win.com/boards/trading-journals/43898-simple-inside-bars-4.html
Tim.

Excellent reference. I see he trades higher time frames than some would tolrerate.
Thanks for the reference Tim

 

[SvenFoster]

The basic problem i see is peoples charts with selective IB on them. It all looks great till you make sure you put them all on using something automated.

Go back over the charts and make sure they are all on. It starts to look less appealing in my mind. A MTF and Higher TF approach should improve things.

Don't let that stop you .

 

[Splitlink]

The basic problem i see is peoples charts with selective IB on them. It all looks great till you make sure you put them all on using something automated.

Go back over the charts and make sure they are all on. It starts to look less appealing in my mind. A MTF and Higher TF approach should improve things.

Don't let that stop you .

They have to be used with something else.

 

[timsk]

The basic problem i see is peoples charts with selective IB on them. It all looks great till you make sure you put them all on using something automated.
Go back over the charts and make sure they are all on. It starts to look less appealing in my mind.

Hi Sven,
If you just trade them in isolation, then yes, you're absolutely right. They are anything but appealing. However, I would maintain that any kind of candle formation you can think of would suffer the same fate if used in complete isolation and without reference to what's gone before. As Split rightly says, they need to be used in conjunction with something else. Put them in the context of trend, support /resistance and possibly volume, then many IB's will auto-eliminate. Those that are left are the ones of interest. Given that there's plenty of ways of trading IB's, many of these will also auto eliminate, because price doesn't move in such a way that your trade entry is triggered. Because context is king, they are not suited to any kind of automated trading; they are very much a tool for discretionary traders, IMO.
Tim.

 

[SvenFoster]

Hi Sven,
If you just trade them in isolation, then yes, you're absolutely right. They are anything but appealing. However, I would maintain that any kind of candle formation you can think of would suffer the same fate if used in complete isolation and without reference to what's gone before. As Split rightly says, they need to be used in conjunction with something else. Put them in the context of trend, support /resistance and possibly volume, then many IB's will auto-eliminate. Those that are left are the ones of interest. Given that there's plenty of ways of trading IB's, many of these will also auto eliminate, because price doesn't move in such a way that your trade entry is triggered. Because context is king, they are not suited to any kind of automated trading; they are very much a tool for discretionary traders, IMO.
Tim.

Absolutely, Thats why i said MTF and such may improve them. I'm not against them and i'm a discretionary trader.

I was probably, a little to -ve before. Quite often things like this are posted with everyone getting excited and there was no mention of discretion. Looking at the charts i can see loads that were "no taken" or possibly ignored.

Maybe the bad ones should be annotated too with reasons why they shouldnt be taken. That way i wouldn't jump to the wrong conclusion

cheers

 

[Tickdoc]

Timsk, will be interesting to see what happens now you have a tentative breakout in the direction you tipped...

A range somewhere in 4000-4500? What is your reason for thinking a return to the lows? I mean fundamentally I would agree but I'm not sure we're at the point yet where this, albeit almost inexplicable, optimism collapses.

 

[timsk]

What is your reason for thinking a return to the lows? I mean fundamentally I would agree but I'm not sure we're at the point yet where this, albeit almost inexplicable, optimism collapses.

Hi Tickdoc,
Typically, trading ranges separate trends. The trend up from early March has been a full 1,000 points from 3,500 to 4,500 which the index hit in early May. Since then, it has been rangebound, making no less than 5 attempts to breach resistance at 4,500 - all without success. The bottom end of the trading range at 4,300 is old resistance from February. As you know, this was breached yesterday with no evidence of a fight from the bulls. So, there's ample evidence to show that price can't go up, so it follows the path of least resistance (to borrow a line from Livermore) which is down. If a new trend is to be born out of the trading range, then it looks like being a down trend as things stand. Also, if you use Bolly Bands, you'll note that price is beyond the low deviation following a particularly tight Bolly 'squeeze'. All in all, it's pretty bearish behaviour. How low will it go? I've no idea (there's a surprise lol) but, technically, there isn't really anything that I can see to prevent price from waterfalling all the way back to the March lows. Lovers of round numbers and Fib' levels will, I imagine, be looking carefully to see if price finds support at 4,000 - the 50% retracement level. I will be to.
Hope that goes some way to answering your question!
Tim.

 

[Tickdoc]

Absolutely! Thanks for taking the time to write it up...

I would see some support at 4000 from the chart itself anyway (probably a self-fulfilling round number fib phenomenon!). I am also bearish both fundamentally and technically, but the current attitude to "less bad is good" and so on has thrown me a bit recently!

Hi Tickdoc,
Typically, trading ranges separate trends. The trend up from early March has been a full 1,000 points from 3,500 to 4,500 which the index hit in early May. Since then, it has been rangebound, making no less than 5 attempts to breach resistance at 4,500 - all without success. The bottom end of the trading range at 4,300 is old resistance from February. As you know, this was breached yesterday with no evidence of a fight from the bulls. So, there's ample evidence to show that price can't go up, so it follows the path of least resistance (to borrow a line from Livermore) which is down. If a new trend is to be born out of the trading range, then it looks like being a down trend as things stand. Also, if you use Bolly Bands, you'll note that price is beyond the low deviation following a particularly tight Bolly 'squeeze'. All in all, it's pretty bearish behaviour. How low will it go? I've no idea (there's a surprise lol) but, technically, there isn't really anything that I can see to prevent price from waterfalling all the way back to the March lows. Lovers of round numbers and Fib' levels will, I imagine, be looking carefully to see if price finds support at 4,000 - the 50% retracement level. I will be to.
Hope that goes some way to answering your question!
Tim.

 

[Splitlink]

I didn't see any IBs, this morning (15M). I shorted against the averages.

 

[winnerwinner]

Hi Tickdoc,
Typically, trading ranges separate trends. The trend up from early March has been a full 1,000 points from 3,500 to 4,500 which the index hit in early May. Since then, it has been rangebound, making no less than 5 attempts to breach resistance at 4,500 - all without success. The bottom end of the trading range at 4,300 is old resistance from February. As you know, this was breached yesterday with no evidence of a fight from the bulls. So, there's ample evidence to show that price can't go up, so it follows the path of least resistance (to borrow a line from Livermore) which is down. If a new trend is to be born out of the trading range, then it looks like being a down trend as things stand. Also, if you use Bolly Bands, you'll note that price is beyond the low deviation following a particularly tight Bolly 'squeeze'. All in all, it's pretty bearish behaviour. How low will it go? I've no idea (there's a surprise lol) but, technically, there isn't really anything that I can see to prevent price from waterfalling all the way back to the March lows. Lovers of round numbers and Fib' levels will, I imagine, be looking carefully to see if price finds support at 4,000 - the 50% retracement level. I will be to.
Hope that goes some way to answering your question!
Tim.

great post

 

[maq]

suscribe

 

[Kurrency]

maq... Que?

 

[sibreztech]

ïîëèóðåòàíîâûå ñàéëåíòáëîêè è äðãóèå ðòè

Åçäèë ñåãîäíÿ íà ñàì çàâîä ñìîòðåòü êàê âûãëÿäèò ýòî ïðîèçâîäñòâî è ñåáå ïðèêóïèë íà ïðîäîëüíûé çàäíèé ðû÷àã...

Âîîáùåì äåëî ýòî î÷åíü êëàññíîå. Ïî öåíå, ñ ó÷¸òîì òîãî, ÷òî äåëàþò â íàøåé ñòðàíå ïîëó÷àåòñÿ î÷åíü çàìàí÷èâî.

Íî ýòî ïîëèóðåòàí! Ñ âèäó êàê êàó÷óê... Íî ïî ôèçè÷åñêèì õàðàêòåðèñòèêàì ýòà îñíîâà ãîðàçäî êðó÷å îáû÷íûõ ðåçèíîâûõ...
Çàìå÷ó, ÷òî íà ìîðîçå, êàê ïåðâûå ïîïûòêè êèòàéöåâ, íå ëîïàþòñÿ.
Ïî çàÿâëåíûì õàð-êàì òåìïåðàòóðà êðèñòàëèçàöèè (ò.å. íà÷àëà çàòâåðäèâàíèÿ) íèæå 80 ãðàä. öåëüñèÿ.

Âîîáùåì ÿ äîâîëåí. Îáðàçöû ìîæåòå ïîñìåòðåòü è ïîäîáðàòü íà ñàéòå çàâîäà:Çàâîä ïî ïðîèçâîäñòâó ÐÒÈ èçäåëèé äëÿ àâòî-ìîòî òåõíèêè

PS: Ïðîøó ñèëüíî íå ïèíàòü åñëè íå â òîò ðàçäåë çàïîñòèë...

 

[Lord Flasheart]

Just to add my penneth worth. Threads about inside bars are always welcome, BUT WHY DO SO MANY PEOPLE TRY TO RE_INVENT THE ****ING WHEEL. I have reseached all major currencies on a 1 hr time frame for the last 5 months and the results are obvious.IT WORKS. Ive taken some live and monitored others when not at computer.If taken in total isolation without any pre conditions using the peter crown rules the results are staggering in some cases. I used £3 pp as a start, taking off 1 as soon as possible as to lock in a small profit, the 2nd after a 2.5/1 risk/reward ratio and the third using a simple MA. I had to have precise exit rules so as to run the experiment.All trades that were not taken live were analysed as if in real time to make sure that it was possible to trade the prices etc. Yes you will have six losers on the trot,lots of small loses and break evens, but large profits.Only eur/chf is down over that period. The EUR/GBP hasnt made anything for 3 months, so yes it can be a very frustrating method. JUST BACK TEST THE EUR/JPY over the last 3 months and see the results.

SO MANY PEOPLE WANT A METHOD THAT IS SIMPLE TO USE AND MAKES PROFITS EVERY DAY. Get in the real world and just look for something that works and makes money.

 

[jiggly]

They have to be used with something else.

exactly,

you could incorporate this as an entry trigger when price approaches predetermined support or resistance levels.

as a stand alone strategy it wont be as effective as if you use maybe another two techniques to act as some sort of filter and confirm the entry.

heres one I made earlier :

chart : silver
timeframe : 4hr
reason to enter trade long :

at long term pivot(blue horizontal), at long term trendline(magenta) 61.8 fib retracement from swing high, inside bar formed.

a break of the high bar indicated by the blue arrow triggers the trade and an entry using this inside bar technique. stops just below the low.

let your profits run

***********this is not a recommendation to trade.