Hello, fellow traders.
To earn on Forex trading edge you need.That will give you a statistical edge in the direction of profits and confidence in the long-term success.One of these advantages - limited risk and unlimited profit.
Today we talk about, which has already become a classic, strategy DIBS Method , - a system which contains above-mentioned advantage.
Features forex strategy DIBS Method
Currency pairs: EURUSD, GBPUSD, USDCHF, USDJPY
Trade Time: London and US session
Recommended DC: Roboforex, Alpari
- Inner Bar
- How to trade pending orders
- trailing stop
concept DIBS Method
is Price Action The strategy pattern "Inside Bar".This pattern consists of the parent and the inner spark and means a temporary agreement on price between buyers and sellers.The boundaries of the inner candles are entirely within the boundaries of the preceding, the "mother" candles.
Our goal as a forex trader - to capture the movement to seize
Before we catch the trend, we need to find out its direction not to trade against the trend.
So, at a certain time, at 06:00 Greenwich time (Greenwich Mean Time, you can see here), we define the price line, which will serve us as a reference point, a point of the opening day.Above this line, we will only buy less - only to sell.It was at this time often emerging movement that will dominate throughout the day.Therefore, in finding the price above this line, we can say that there are prerequisites to trend upwards, following - to trend down.
Since 6:00 GMT we are watching the market for the hourly chart, and are waiting for the appearance of "Inside Bar".Once inside bar formed, look, where is the price in relation to our "opening line of the day", held at 6:00 GMT.
If the price is lower - will trade on the internal breakdown of the bar down, if the above - breakdown of internal bar up.
entry and stop loss
We trade breakdown of the boundaries of the inner bar (small candles).If the price is higher than the price at 6:00 gmt, - purchase, if lower - sell.With the pending orders.
Stop loss we will be for the opposite end of the inner bar.the input signals are only looking at the first 9 hours after the 6:00 GMT.
Shopping menedzhent and exit from the market
enter the market, we three orders - A, B and C are the same size.Warrants A and B exhibit a take-profit equal to the stop-loss, and orders with - no take profit.
him we will keep in the market until the trend changes.A warrant us brings a profit, the order B covers possible stop-loss on a warrant C, and orders with - a source of potentially big gains.
stop-loss on a warrant Since we carry the trend, followed by a simple moving average with a period of 20. That is,each candle move the stop-loss deal closer and closer to the current price level moving.If the price is moving in our direction a stop loss moves after it if the opposite - stop loss remains in place.
This tactic sometimes allows a profit of 20-30 times the stop.
Every position on a given system to track individual, regardless of being in the warrants market.
Rule Hot Hand
Another rule strategy DIBS Method - trade only pairs that move.We feed a horse that runs.
How is it done?Very simple.
Open daily (D1) schedule and put on him moving with a period of 20. The price should be above or below the moving, but it is not on the line itself.Also moving should have a slope.That there was no balance of current prices and are prerequisites for the possible movement (which way - it does not matter).
Trading on the higher timeframes
trading at DIBS Method and system can be for a longer time frames - H4 and D1.All the same way as when trading on the hourly charts, but take as a benchmark price discovery of the week (Monday candles).If the breakdown of the inner bar below the opening price of the week - only sell if above - only buy.
Money management and additions
Follow risk: becauseTC used 3 orders, possible 3 stop-loss.The risk of one warrant should not be higher than 0.3% of the deposit.Calculate item helps our mobile app.
- news outlets ignore
- Ensures that the inner bar was not great, becausethe meaning of the pattern (the agreement between buyers and sellers) is lost.
- Do not forget to pay attention to the support / resistance levels.
Notes Peter Kraunsa (strategy author)
- What does trade "discretionary"?
- Trade on the news - perhaps this is not what you think
- Wise people enough one word
- your advantage in the market before the big players
- Trading on the "hot" currency pairs
ForexDIBS Method strategy is very simple.This is its advantage, and this is what allows it to for many years to be effective.Small risk and unlimited profit - to apply the principles laid down in the DIBS is easy in theory, but difficult in practice - hard psychologically to keep winning trades because the paradigm is sitting within us, imposed on advertising - "Get all the here and now!".However, if you do some work on yourself, the principles of management transactions of this strategy (even with other entry rules) once will make you a millionaire.
discussion in the forum