Best Thread Potential setups

[therooster]

REM Body Colors *********************************************************

whiteBody = (Close >= Open)
blackBody = (Open > Close)


REM Body Size (%) *********************************************************

smallBodyMaximum = 0.0025

realBodySize = ABS(Open - Close)

REM Candle Definitions *********************************************************
Doji = ABS(Close - Open ) <= (Close *smallBodyMaximum) OR ABS(Open - Close )<=((High - Low)*0.1)

shootingStar = smallLowerShadow AND NOT doji AND ((blackBody AND ABS(Open -High)>2*realBodySize) OR whiteBody AND ABS( High - Close )>2*realBodySize)

Hammer = smallUpperShadow AND NOT doji AND ((blackBody AND ABS(Close - Low )>2*realBodySize) OR (whiteBody AND ABS( Low - Open )>2*realBodySize))

REM Shadows *********************************************************
smallUpperShadow = (whiteBody AND High <= Close *(1+smallBodyMaximum)) OR (blackBody AND High <= Open *(1+smallBodyMaximum))
smallLowerShadow = (whiteBody AND Low >= Open *(1-smallBodyMaximum)) OR (blackBody AND Low >= Close *(1-smallBodyMaximum))

REM Engulfing **********************************************************
Engulfing = ((blackBody AND (blackbody[1]) AND Close <(Close [1]) AND Open >(Open [1]))) OR ((blackBody AND (whiteBody[1]) AND Open >(Close [1]) AND Close <(Open [1]))) OR ((whitebody AND (whitebody[1]) AND Close >(Close [1]) AND Open <(Open [1]))) OR ((whiteBody AND (blackBody[1])) AND Close >(Open [1]) AND Open <(Close [1]))


SCREENER [(shootingStar and not Hammer and not Engulfing) or (Hammer and not Engulfing and not shootingstar) or (shootingStar and not Hammer and not Engulfing)]


I will modify the screener part to show shooting star, hammer and engulfing for the last two bars instead of just the last one.

That's fantastic stuff, thanks Viktor. Do you have one for inside bars also?

 

[vgrade]

Hi there,

vgrade,

I am using a sreener which is scanning all the available currency pairs for pins and engulfing.
I think it is more useful than having an indicator and show what you can already see.

The code needs some tweeking. It is actually a free available screener from Prorealtime website, but i modified a bit and more importantly renamed it so can't remember what is the name of it on their site
I am using IG index SB account for my trades and it is working very well on it as they are using the same charting package for IT-Finance.

I can post the code if you guys are interested.

Viktor

Hi Viktor,

I also use the code in a screener which as you say can scan all currency pairs automatically. On my first chart the indicator was pointing to the pin following the action so when used in a screener I do not get constant alerts while the pin is forming. There is some code on the prorealtime site which has all the interesting candle formations.

Do you know how to access the protrend data within a screener/indicator as price action around these values and MA's is what I want to see.

Martin

 

[vgrade]

 

[HW07]

Hi Viktor,

I also use the code in a screener which as you say can scan all currency pairs automatically. On my first chart the indicator was pointing to the pin following the action so when used in a screener I do not get constant alerts while the pin is forming. There is some code on the prorealtime site which has all the interesting candle formations.

Do you know how to access the protrend data within a screener/indicator as price action around these values and MA's is what I want to see.

Martin

Unfortunately i dont use Protrend data but i guess it can be implemented as any other indicator.

 

[HW07]

That's fantastic stuff, thanks Viktor. Do you have one for inside bars also?

We can modify the code by just changing the outside bar part to do the opposite.

will post it.

 

[HW07]

Small upgrade of the Canle Screener:

It detect Hammer, Shooting star, Bearish-Bullish Engulfing and Inside bars on the last two candles.


Here is the code, just create a new screener and paste it.

REM Reversal Candles Finder


REM Body **********************************************

whiteBody = (Close >= Open)

blackBody = (Open > Close)

smallBodyMaximum = 0.0025

realBodySize = ABS(Open - Close)


REM Shadows *********************************************************
smallUpperShadow = (whiteBody AND High <= Close *(1+smallBodyMaximum)) OR (blackBody AND High <= Open *(1+smallBodyMaximum))
smallLowerShadow = (whiteBody AND Low >= Open *(1-smallBodyMaximum)) OR (blackBody AND Low >= Close *(1-smallBodyMaximum))

REM Candle Definitions *******************************

Doji = ABS(Close - Open ) <= (Close *smallBodyMaximum) OR ABS(Open - Close )<=((High - Low)*0.1)

shootingStar = smallLowerShadow AND NOT doji AND ((blackBody AND ABS(Open -High)>2*realBodySize) OR whiteBody AND ABS( High - Close )>2*realBodySize)

Hammer = smallUpperShadow AND NOT doji AND ((blackBody AND ABS(Close - Low )>2*realBodySize) OR (whiteBody AND ABS( Low - Open )>2*realBodySize))

Engulfing = ((blackBody AND (blackbody[1]) AND Close <(Close [1]) AND Open >(Open [1]))) OR ((blackBody AND (whiteBody[1]) AND Open >(Close [1]) AND Close <(Open [1]))) OR ((whitebody AND (whitebody[1]) AND Close >(Close [1]) AND Open <(Open [1]))) OR ((whiteBody AND (blackBody[1])) AND Close >(Open [1]) AND Open <(Close [1]))

Insidebar = ((blackBody AND (blackbody[1]) AND Close >(Close [1]) AND Open <(Open [1]))) OR ((blackBody AND (whiteBody[1]) AND Open <(Close [1]) AND Close >(Open [1]))) OR ((whitebody AND (whitebody[1]) AND Close <(Close [1]) AND Open >(Open [1]))) OR ((whiteBody AND (blackBody[1])) AND Close <(Open [1]) AND Open >(Close [1]))


REM Screener *****************************************

SCREENER [(shootingStar or Hammer or Insidebar or Engulfing) or (shootingStar [1] or Hammer [1] or Insidebar [1] or Engulfing [1])]

 

[trader_dante]

No disrespect but I don't advise using screeners. They alert you to trades that you would not have otherwise seen! Sounds great in theory right? Never miss anything again. But in actual fact, if you haven't seen it, it's probably not worth taking. There are pin bars, inside bars, engulfing bars every single day of the week across all markets. Most of them I wouldn't touch with a barge pole. You need to be very selective. Draw your levels and wait for the confirmation bars. Don't wait for a confirmation bar and then draw your levels. This is all backward and will not show good results. I know so many people that are now trading this method profitably and none of them use software to alert them to price other than perhaps an alert when a level gets hit.

 

[fifty2aces]

No disrespect but I don't advise using screeners. They alert you to trades that you would not have otherwise seen! Sounds great in theory right? Never miss anything again. But in actual fact, if you haven't seen it, it's probably not worth taking. There are pin bars, inside bars, engulfing bars every single day of the week across all markets. Most of them I wouldn't touch with a barge pole. You need to be very selective. Draw your levels and wait for the confirmation bars. Don't wait for a confirmation bar and then draw your levels. This is all backward and will not show good results. I know so many people that are now trading this method profitably and none of them use software to alert them to price other than perhaps an alert when a level gets hit.

Totally agree - if software is telling you to take a trade, you'll start trying to "force" it to work, in an attempt to justify a mediocre setup. The best trades jump out of the chart and slap you in the face - no need to look for them. There's enough great trades waiting for you that you don't need to waste time and money on the 3rd rate setups.

 

[HW07]

T_D and fifty2aces,

I agree with you two. Maybe you just jumped at the wrong conclusion with that.

Here is how i use the Screener:

I draw my lines on the weekly chart first, then switch to daily, draw a few more, then switch to 4H and draw some more plus the trendlines and Fib levels on any of them

By that time i am fairly familiar with the landscape and what is going on. Then basically i can just check my screener to give indication where is the price action so no need to pull all my markets up and go through it every one or four hours.

It is a very convenient way to monitor the market while i am at work.

The screener not at all gives you any signal but it gives you an alert where to look for price action.

If everything is in place for a good setup, then i can take the trade.

I Hope this cleared the picture

 

[trader_dante]

T_D and fifty2aces,

I agree with you two. Maybe you just jumped at the wrong conclusion with that.

Here is how i use the Screener:

I draw my lines on the weekly chart first, then switch to daily, draw a few more, then switch to 4H and draw some more plus the trendlines and Fib levels on any of them

By that time i am fairly familiar with the landscape and what is going on. Then basically i can just check my screener to give indication where is the price action so no need to pull all my markets up and go through it every one or four hours.

It is a very convenient way to monitor the market while i am at work.

The screener not at all gives you any signal but it gives you an alert where to look for price action.

If everything is in place for a good setup, then i can take the trade.

I Hope this cleared the picture

OK, then you're doing it fine!!

Sorry, if I jumped down your throat there. I just get worried because I teach this strategy to a lot of people and I honestly believe its the sh*t and can make you a great deal of money. It certainly has and still continues, to do so for me!

I just get scared when some people try and cut corners. I see so many people - even people that I have sat there with and taught in person - taking pins without strong levels or taking pins in the middle of consolidation zones or having screeners that flag up 5m pins and then jumping on every single one they see or even trying it for a week or so and then abandoning it for the next best thing because they took a couple of losers and so on and so forth - the list is endless - that I always feel awful when I have to go through the tons of pm's and emails saying "this doesn't work what did I do wrong?". That's partly what I taught it in the first place because I learnt it at J16 and found it fit me and I was making money but I couldn't work out for the life of me why everyone else was finding it so hard! It was a like a challenge for me to get them on the same path I was on!

You have to read through Making Money Trading very carefully to get it all. Perhaps even twice over. And read J16 all the way through too.

I'm going off on a bit of a rant here but this strategy makes money. It's totally black and white. Get good at it and understand it and you have the keys to the mansion. Once you know it inside out and like the back of your hand you can experiment but don't cut corners at the beginning. Read the 225 pages of my thread. Read the 1,000+ pages of the J16 thread. It might take you 6 months+ to get through it all but this is a lifelong career and 6 months hard work now is a small price to pay to be financially secure.

Identifying good support/resistance levels is the key to understanding what the rest of the market is looking at in terms of areas of value.

Studying price action is the key to understanding what the participants are doing.

Adding fibs and TL's is key to understanding that the more odds you stack in your favour, the more profitable the outcome.

And I also believe that no matter what system you trade - all of these points:

- s/r
- price action
- stacking the odds

will help you and can only make a good system BETTER.

And to anyone that is now accusing me of abandoning this strategy because I am testing MrSpreadBetting system this could not be further from the truth. I use price action to make money every day as a professional. I've done it on the daily TF and I've done it on the hourly for a few years now and only lately am I taking it to the 5m to get more active at my prop firm. I will never abandon this strategy because it works like a dream. I am merely testing his system to prove whether paid for systems are any good or this particular vendor is full of sh*t. And I also approach every new idea or system I ever hear about with an open mind. One should always be on the lookout for things that increase their odds. A strategy that has a 90% hit rate might be made to have a 98% hit rate if you add something or even take something away from it. Always try to get better in this game.

The market changes and the trader needs to be open to change.

But as I said, don't worry - this strategy is damn good and it's all you need.

Work at it and get good at it and the money will come in. I've proved it and new people are all the time, too.

-Tom

 

[dilesh23]

Forex & Stock Trading Library Blog Archive Pin bars: introductory tutorial

for those who are too lazy to read thousands of pages

 

[trader_dante]

Forex & Stock Trading Library Blog Archive Pin bars: introductory tutorial

for those who are too lazy to read thousands of pages

Mate this doesn't even look at S/R which is the backbone of the strategy.

Fib confluence and the pin bar itself is a very, very small part of this strategy.

If you look at some of the setups that Jim plays you will see that he often takes pins with huge bodies etc but he has walked the walk - he has been doing this for many, many years and knows it inside out and he has a very good understanding of s/r.

This is what you need to focus on.

There are no shortcuts.

That is why many people are stuggling with this.

 

[dilesh23]

Mate this doesn't even look at S/R which is the backbone of the strategy.

Fib confluence and the pin bar itself is a very, very small part of this strategy.

If you look at some of the setups that Jim plays you will see that he often takes pins with huge bodies etc but he has walked the walk - he has been doing this for many, many years and knows it inside out and he has a very good understanding of s/r.

This is what you need to focus on.

There are no shortcuts.

That is why many people are stuggling with this.

my bad it's a good introduction to your well written, hugely useful posts though, is it not ?

 

[HW07]

OK, then you're doing it fine!!

..................

...One should always be on the lookout for things that increase their odds. A strategy that has a 90% hit rate might be made to have a 98% hit rate if you add something or even take something away from it. Always try to get better in this game.

The market changes and the trader needs to be open to change.

But as I said, don't worry - this strategy is damn good and it's all you need.

Work at it and get good at it and the money will come in. I've proved it and new people are all the time, too.

-Tom

I can understand your frustration about this. It is probably one of the hardest thing teaching a very discretional system even if the rules are very simple and clear.

I am fairly new to trading, just started it live a couple of months ago but backtested, tested, papertraded so many different styles, and systems.

When a opened my first account, the only thing i knew about Technical Analysis is that i can draw lines which connect certain tops or bottoms. I though that is more than enough, so started with that. After a couple of weeks i discovered that i can change my line chart to bar or candles. then i bought my first book.

When i came across with your topic, i read it, well at least your posts and went over to FF and read j16 topic too.

The funny thing is that i only read like 5 books about trading: one about basic TA then one about chart patterns, one about trend following and i am just finishing off one about swing trading.

All of these books tell you the very same thing: use weekly, daily charts to draw your lines, Use fib retracement to find possible reversal areas, find your setup on daily and trade it on the 4hour or hour chart for tighter stops and better entry. All of these books tell you about reversal patterns like pinbar, engulfing and many more.

Reading your topic was so fitting into this picture, it basically gave me the feedback from someone who is doing this live and 100% committed to this style. That was the last push to the direction i am heading.

Of course at the moment i am restricting myself some very basic chart patterns and only the pinbar setup to trade if it looks good.

It is amazing how little effort and how small amount of information is enough to trade, still so hard...

I found myself in so many emotional situation and took a great deal of my time to get the needed discipline.

Well, losses probably the best teachers, arent they?

for example: When i started out trading live, the first month win% was 78% because i was sh*t scared to go for anything else but perfect setups. Tripled my account by the end of the month.

On the first half of the second my win rate went back to 36%. I can only thank to my money management that the account "only" lost half of the gains.

then i stopped and reevaluated. Went back a bit wiser and so far can stick to the plan. Play defensive and the rest will be ok as you can read from "The Market Wizards".

It is not the way you choose to trade but the discipline to stick to it is the hard, isnt it?

Sorry for all this rubbish, the point would be that this is a dead simple system still is so brilliant:clap:

one more thing, since i seen people making real success with this (can we call it swing trading?) i honestly more than happy just wait on the sideline for that really cute setup to appear around my levels.

Also, i am so happy that i dont have to go through so many indicators

 

[HW07]

sorry again, just i have so many free time and nothing on telly

also, as i get along with charting the landscape for my markets and watching turning points and where price stalls or reverses, you can learn a great deal about the whole -how to call it- mechanics? of the whole picture.

As i mentioned i only trade just a very few setups:
Head and shoulders, flags and the famous- infamous Pin bar. As i doing my trades, i seen people taking the inside bars and engulfing bars too. At the moment i find them too far for me -yet.

I eventually will get my head around them, look back on a few markets and check scenarios. If i can find them profitable on main turning points in high enough percentages, i will papertrade them and go for it. Until then just watching people taking them in amazement

 

[Ljr]

EurCad

Anybody else looking at this?

There is confluence with the 23.60 fib from Nov 07 lows to Oct 08 highs. I don't usually pay too much attention to this fib but price has reacted to this level previously.

 

[Second income trader]

At first glance it certainly looked like it had potential, plus on my chart the CCI(20) was showing oversold so another supporting factor. My only concern was would I want to take the entry after the weekend when the Pin bar was for late Friday?

Anybody else looking at this?

There is confluence with the 23.60 fib from Nov 07 lows to Oct 08 highs. I don't usually pay too much attention to this fib but price has reacted to this level previously.

View attachment 43926

 

[HW07]

Usdjpy

I am watching USDJPY at the moment:

there is some sort of Price action forming in the shape of a PIN-ish bar on top of a lower channel line and a PPZ confluence. If it will be valid, it provides a counter-trend entry. Please share your thoughts on that.

Please see chart:

 

[PaulKing]

Its against the general down trend, but I can see a 'counter' trade long (up to your moving average as a first target?)
worth a small stake, reasonably tight stop loss

all the best

I am watching USDJPY at the moment:

there is some sort of Price action forming in the shape of a PIN-ish bar on top of a lower channel line and a PPZ confluence. If it will be valid, it provides a counter-trend entry. Please share your thoughts on that.

Please see chart:

 

[grimweasel]

. Hello all,
Hope that you are all making some good pips in the market?
I've been reading some more books out 'here' and the current one is 'The Psychology of Trading' by Steenbarger. This guy is impressive and his quant trading style is really imaginative. It goes to show that there are no real shortcuts in this business. If you want the profits then you really must do the hard graft.

An important note that I have taken from his book is the way in which we internalize profit and loss. Many times, myself included, I have noticed my body talking to me during a trade. If you find yourself hunched over a monitor all tight and full of tension then it's the body’s way of telling you something is wrong.

Like he says, most people will actively monitor and watch every tick during a losing trade; wondering if they should move their stop, get out now, leave it and hope for a pull back etc. But how many people actively watch every tick on a winning position? I know I have been guilty of not doing so. I see a winner and walk away hoping to come back to large profits later on....

By doing this, we just internalize and cement all the feelings, learning etc from a losing perspective. To be successful, he argues that one should monitor every tick and evaluate every winning position. That way you learn from the positives and internalize the positive thoughts etc associated with winning...

Another good piece of advice is to activate the 'internal observer'. He argues that we have 2 minds and that the mind that plans a trade and executes is not the same mind that manages the trade once we are in it.
It's almost akin to forcing an 'out-of-body' experience and looking at yourself from above during a trade. How many times have we bummed a trade and then when the heat is off and we've reviewed the trade thought 'what the hell was I doing?'

By activating the internal observer early on he argues that you should be able to step aside for a period and review your self; take your trading temperature!

Another key skill is talking each trade thru aloud and justifying it to yourself before you act. He argues that the thinking conscious derives from a different part of the brain to the talking voice....the thinking is more emotional and instinctive; by talking a trade thru aloud it's almost as if you are reasoning with another part of the brain that listens and evaluates from a different point of view. After all, how many times have we come to a decision then when we have tried to convey it to other in a group etc, seen the flaw in our own plan? I've done it a few times.....

My explanations above are very crude and lack some of his finesse so I compel you to read his book to really understand how YOU can be the biggest enemy to your account....

Good trading all...

PS Forgot to say thanks to Trader_Dante for the book recommendation above.....Thanks Tom, hope you are well?