Who here trades the IB befor the break?

[infinitym4ge]

i know the "rule" is to trade at the break out but how many people here trade the hourly chart and when they see an IB form place orders at the breakout points, before the actual breakout bar has formed? i am thinking about this for Peter crown's DIBS method because surely if the method says only buy if the market is up and only sell if the market id down, seeing that inside bar for should already give you the direction to take?

and because its a buy order if the price dose not get to the breakout you haven't lost anything but if it dose your in the trade as early as possible?

I am only thinking of ways to get in to a trade early rather than late.

thank you in advance
chris.

 

[foredog]

good question, but at what point do you decide it's breaking out of the IB, after 30 mins 55mins?

I think this will only work with certain bars.

Eg if theres a long bar followed by 30 minutes of narrow range and it takes out the low of other bar (assuming shorts) then it should work.

 

[infinitym4ge]

Thank you fordog, i thought it might work but i am finding this method VERY time consuming because there is a lot of waiting around for the IB's to form. and i am only trading on a few pairs. Some days i wont even come across a single IB because my personal "trade window" is limited because of work.

 

[foredog]

look at different TF, daily 4hr etc may throw up a few.

 

[gedward3]

I use an indicator to help me with whats happening. (Oh no an indiactor all the price boys shout).

If you put the BB Squeeze on your chart it will mostly confirm the direction of the inside
bars direction providing you stick with what you already said. Only buy above the open
and sell below the open.

Ged

 

[Calinor]

infinitymage, what you said is how I understood the Dibs is supposed to be played. As soon as you see that inside bar, you place the order at the breakout point. You don't need to wait for it to breakout and an hourly bar close and THEN make the trade.

The only thing you have to be careful of is an inside bar forming, then you placing your order at the breakout point, and then price going the other way for an hour or two, and hitting your order later in the day. But check your limit order on your platform, and there might be a Good Til Cancelled (GTC) option, which you could change to, good until X, wher X is an appropriate time.

 

[Scanjet]

If you are trading IB breakouts on 1hr bars you should use a 15 or 10 min bar to time your entry. You need to differentiate between a breakout and a fakeout. Financial Institution traders know how the novices operate and will lure you into positions you regret entering. Watch for pullbacks on the 10/15 min charts and don't enter until they have become overcome.

 

[Calinor]

But Peter Crowns is hardly a novice, and if he says just keep it simple and place the order, with the trend and with the day's direction, then that is probably a good enough way to do it. If you wait for a pullback after it breaks the inside bar then you will miss some of the best moves, and still get faked out sometimes anyway. Besides if price breaks out from the inside bar, then reverses and stops you out, then that setup just didn't work that time, which isn't a fakeout the way I understand it.

 

[infinitym4ge]

Calinor, i understood it to make your move after the breakout for confirmation, either way the only difference would be your entry point.

wouldn't changing the Tf effect the method foredog? and Gedward3 i would use indicators but i am on igindex i guess i could have the charts running on MT4 then when the indicator highlights an IB i could swich to the igindex charts.

 

[foredog]

Tf won't affect method, just sizes, a dialy may need a 150 pip stop where as an hour may only need 30 so you would only be able to trade 1/5 size but it'll still work

 

[Calinor]

Sure, once it has broken the high (or low) of that inside bar, that counts as a breakout for that method.

About the timeframes, Peter Crowns posted this when asked if it worked on other timeframes:

Absolutely!

A method is pretty hard to trust if it only works on one timeframe.

For the 4/6/8 hour charts and daily charts you check to see if you are up or down versus last week's close. Take buys if you are above, sells if you are below.

Also no offence intended about the indicators, I'm sure if you are experienced enough you can improve on Dibs by using indicators, support + resistance and other methods, but I thought another quote from Peter Crowns would at least give some caution

I feel extremely comfortable in stating that most of you don't anywhere deserve DIBS. Because most of you believe that perfection needs to be changed. Try taking 100 trades (at a penny a pip even) before you pass judgement on how it should be improved.... Ego has no place in trading methodologies.

I didn't invent DIBS. Do I care? No.

It's like being given a Porche 911 and before you even drive it a block, you say, "I think the engine would be faster if I drained the oil and replaced it with water. That heavy oil is too sticky." Good luck on that.

 

[gedward3]

Calinor, i understood it to make your move after the breakout for confirmation, either way the only difference would be your entry point.

wouldn't changing the Tf effect the method foredog? and Gedward3 i would use indicators but i am on igindex i guess i could have the charts running on MT4 then when the indicator highlights an IB i could swich to the igindex charts.

In my opinion your better off using Mt4 charting anyway and trading off who ever
your broker is. That way you will have the benefit of doubt if a trades going against you
in that you cant whinge that your brokers screwing you.

I trade with IG and direct access but still use Mt4 as my charting mostly.

Ged

 

[elitejets]

In my opinion your better off using Mt4 charting anyway and trading off who ever
your broker is. That way you will have the benefit of doubt if a trades going against you
in that you cant whinge that your brokers screwing you.

I trade with IG and direct access but still use Mt4 as my charting mostly.

Ged

I place orders before bar closes and the hour is up often.
The reason is that Im not spreadbetting, I trade CFD's and they wont accept orders that are less than 10 pips away from price or stops less than 10 pips from price, so then I have to enter at market and if things are moving I have been badly slipped.

 

[infinitym4ge]

4H TF looks appealing to me, the only problem would be the large amount of money id be risking per trade, on the other hand at 4H id only be making 1 or 2 trades per pair.