Quote:
Originally Posted by mtandk0614
Hello everybody that trades this system.
First off....if this really works, then James is Awsome. I assume it works because of the following. I would like to start trading this system, but I just want to verify that I am doing this right. So in my own words;
Step 1 - Check the 1H chart to verify the trend *
*If trend is up we only make buy orders
*If trend is down we only make sell order
*if trend is sideways we stay away till a trend develops
Step 2 - (assuming we how an upward trend in the 1H chart) We will wait for a small down trend on the 15M chart. At the bottom of the trend we are looking for an Inside Bar + Stoch is starting to turn upward. (Reverse this idea for a downward trend on the 1H)
If that is correct then I think I may have it...but I do have 1 question about entry/exit. Are you doing the entry based on the high of the IB, or do we do the entry based off the High of the bar right before the IB (last bar of the previous trend). I only ask this because I belive the 3 Bar Inside is a much stronger indication therefore when we see the IB, we would place a buy if bars 1 or 2 after the IB hit the high of the bar before the IB ???
Please let me know if I am on the right track here.
Thank you everybody.
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Hello Mt
In my own understanding of the system, entry is based on high/low of the IB- you come 2pips higher/lower than the high/low of the IB (all other indications being equal) and not the bar before the ib.
The IB shows the market is contracting and about to explode, so a 1-2 pip move beyond the high or low of the IB might signal the direction of the explosion.
I'm sure you know what a good explosion can result into-a disaster or time to party (your choice)