The all-powerfull five bar reversal (5BR) system

[Freddie]

Hi Freddie so will you post the 5BR method once you get a good internet..

It is not a method as such it is just look at a chart on any time frame. As you watch you will see a bar going higher or lower than the last. If the next bar goes even further then buy/sell at that point.

 

Look at the entry of any of the pics that I have posted, see if you understand what I mean.

 

Freddie

[Freddie]

Try this picture. No indies, just the bars and their behavior.

 

http://i914.photobucket.com/albums/ac341/freddieforII/5BREx.jpg

 

Freddie

 

Got to go, I will try again later

Edited July 21, 2010 by Freddie
Trouble with pic.

[sillykiddo]

Hi Freddie .

what do u mean by going higher than previous bar and go even higher? you mean bar that makes higher high than last 5 bars? please explain.. I am really interested

thanks

[Freddie]

Try this picture. Five bars.

 

http://i914.photobucket.com/albums/ac341/freddieforII/5CReversal.jpg

 

Look at post #27 above the first bar is missing but the rest demonstrate the pattern although there is an extra little green bar popping in. This happens at times. We have to accept the general idea. It could involve even more candles if it becomes a bit of a battle but it is the overall view that is important. Forex is vary rarely 'exact' for anything.

 

Freddie

Edited July 21, 2010 by Freddie

[metalriff]

Are you actively trading this Freddy? thanks

[Freddie]

Are you actively trading this Freddy? thanks

 

I don't have reliable internet here so I cannot trade live. Must wait until I go toMalaysia in October to trade live.

 

This method is the result of studying hundreds of systems and coming to the conclusion that price will go its own way. Many times it will go my way. If I am lucky I will catch the winning run, if not cut it short. The old advice.

[Freddie]

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Freddie

[Freddie]

What does this look like?

 

http://i914.photobucket.com/albums/ac341/freddieforII/dri-2.jpg

 

So...are they asking $47 for a light coloured blob ( and an arrow) over something that you can see with your own eyes??

 

I should tell you that there are loads of these indicators for free on the web.

[Freddie]

Do you want any more of these pics?

 

Are you convinced about the five bar reversal. BTW the pics leave out those reversals that don't make a small fortune.

 

Freddie

[anton1713006147]

Hi Freddie,

 

Thank you for your kind and great share.

 

I would like to ask some questions.

 

The thumb is the first candle.

The forefinger is the second candle (is this candle has higher high thank the 1st. is the 2nd candle should have higher low than the 1st candle?)

The middle finger is the 3rd candle/the highest (Should the 3rd candle has higher low than 1st and 2nd candle?)

The 4th finger has lower high than the 3rd finger (Should the 4th candle has lower low than the 3rd candle?)

IS the 5th candle is THE ENTRY candle (after the 4th candle closed?)

IS THE ENTRY point at the low of the 4th candle?

 

 

Thanks and regards

[Freddie]

Hi Anton look at post #29 it shows the bars. We are only interested in the highs if we have a reversal of the upward price.

 

I will put up the entries of a few examples like those above.

[metalriff]

Good thread , had to bump.

[Freddie]

Hi Metalriff, I have moved on a little since this. I came across two more strategies, very close to the 5BR but abrieviated!

"3rd c@ndle" starts the count on the highest candle and then trades on the third: It is available here, just search.

K@rl Dittm@nn uses something similar.

Fractals indicators paint when the third is reached so all in all it is a popular reversal finder.

[metalriff]

Thanks freddie, whats the thread called? lots of threads in here.

[Freddie]

Thanks freddie, whats the thread called? lots of threads in here.

 

There is no thread, just updated my ideas, read more systems.

Cannot remember Dittmann's indicator if there was one. Actually I think that it was just a rip off of '3rd Candle'.

 

Craig Harris uses the same sort of entry but requires a change of colour on candle 2.

From what I remember Lindencourt on the daily uses it but has stochastics as the trigger. When Stochs are in the right position the cross hairs are usually on the third candle.

[cubicrey]

Hi metalriff,

 

Maybe Freedie is referring to this ,

http://www.hiddenforexpips.com/hiddenforexpips.pdf

 

 

http://indo-investasi.com/showthread.php/8056-REQ-Hidden-Forex-Pips-Karl-Dittmann?highlight=Karl+Dittmann+pipscheers

 

Rey

Edited September 11, 2010 by cubicrey

[Freddie]

That's the one thank you

[et_phonehome_2]

Nice work Freddie with the charts....

[linkrink]

Hi freddie & others,

 

Please suggest if I have been able to find the entry points correctly.

following is a screen shot of the daily chart of eurusd.

 

http://img215.imageshack.us/img215/1259/reversal1.png

 

RED arrows represent the entry point.

 

Thanks.

[linkrink]

I have been reading lots of charts on a daily time frame and what I am experiencing is that not always is the candlestick is of the form of small body and long wicks. More often, either there are no wicks or very very minimal.

 

Should we consider such candles as candle #1 for spotting a trend reversal, which is very unlike what is explained in "hiddenforexpips" page # 6.

 

Like as in above post of mine, candle #1 of instances 1 & 2 both have very very small candle with no wicks.

 

Thanks.

Edited October 1, 2010 by linkrink

[Freddie]

Hi Linkrink, as you have observed, candles often do not behave as the 'system sellers' show us. Similarly the the sellers cherry pick the best examples.

 

Your chart shows a selection of entries including one that didn't work. None the less it was a correct entry.

 

There are a lot of 'methods' available and I have come to the conclusion that it is something of a lucky dip-you make your bet and hope for the best.

I am also favouring 3rd Candle system: 1 is the point - lowest or highest, 2 confirms and 3 is the entry.

 

Since starting this thread I have read or watched a number of methods around this one. Each tries to make a rule that will confirm the reversal.

I had a video yesterday that used the 'three down bars then an inside bar' or of course up bars. The IB indicates the reversal. Your second 123 marked reversal shows it.

 

The reversal at the lowest point on your chart is typical of the Craige Harris method - the second bar has changed colour so we bet on it as it passes the end of the prior bar.

 

The reversal upward after that (ie after the red bar) is another CH entry: Red, Blue reversal pivot, entry as bar passes previous close.

 

If you consider wicks then you could have second thoughts on your first marked trade entry. Candle 1 was a dogi after an upward move, 2 confirmed the reversal but when we got the entry it was very quickly pushed back up and maybe a time to get out! However when the price passed the end of the previous wick then you have a comfirmation.

Edited October 1, 2010 by Freddie

[linkrink]

Hats off to you freddie for such a clear analysis and explanation.

[Freddie]

Hats off to you freddie for such a clear analysis and explanation.

 

You are very welcome

[linkrink]

Hi Freddie, one more thing.

 

Do u give any emphasis on the size of the body of the pivot candles?

From the previous examples in this thread, it is just not very clear to me.

The author gave some examples, buy yet gain as you said, word is just not perfect. There happens to be lot many moves but not the way the author have explained in his book as far as the body of the pivot candle is concerned.

 

your take on this.

 

Thanks,

[Freddie]

I am afraid that I am a simple person. I would simply use the reversal and take my chances. There are almost as many reversal 'methods' as there are reversals.

The chap on 'FX for noobs' works on 4H charts and demonstrates a long move down(or up) followed by his reversal rule. He says that it must be a LONG move made up of a number of small candles or a few bigger candles.

I don't think that the body is as important as the wick.

In a down move lots of people sold then lots of people bought so we get a long candle that then develops a long wick. This is usually interpreted as a reversal.

If the number of people now buying is even greater we get a shooting star or hammer. Pin bar 'addicts' then say that this is likely to be a reversal, watch the next candle.

 

There is also an 'in bar/out bar' view: Just before your first 'numbered' reversal is a large blue followed by a small red.

The IB/OB camp say this is a clear reversal;

You have it as a KD reversal;

Someone else might see it as a move up that has a retrace, then a continuation that hits resistance. Then comes the indecision dogi. Then another failed up move, it passes the dogi but little further so the blue candle, the highest becomes the pivot.

 

Hope that was not too confusing but people see reversals differently and have different explanations. The end result is a reversal. The important thing is that you got in for the middle bit.

 

As usual I cannot give you a definitive answer but then I am not selling a system!!

 

My stance is that nobody can do that. That is why there are so many systems all about the same thing but all with different answers.

Edited October 2, 2010 by Freddie