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


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After all this explanation by you, i feel that i know nothing much about candle formations and their relative patterns that they form.

I kinda have feeling of going back to basics again and gain some more ground on candlesticks.

 

I need to bring myself near to your level if I want to understand what you have tried to explain me.

 

see you after couple of days.

 

Thanks.

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After all this explanation by you, i feel that i know nothing much about candle formations and their relative patterns that they form. I kinda have feeling of going back to basics again and gain some more ground on candlesticks. I need to bring myself near to your level if I want to understand what you have tried to explain me. see you after couple of days. Thanks.

 

Hi Link, I thinkthat I might have over explained.

All I do is look for the point, the pivot.

If the next bar is lower we have a reversal.

If the next one is lower we have an entry.

 

I apologise for giving you too much information.

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Hi Link, I thinkthat I might have over explained.

All I do is look for the point, the pivot.

If the next bar is lower we have a reversal.

If the next one is lower we have an entry.

 

I apologise for giving you too much information.

 

No No, good for me.

After all this i just realized that how powerful the candle formations could be.

Though I perceived what you wanted to communicate, I just wanted to be more comfortable with candlesticks formations and various patterns that they form. i want to alleviate my understanding of it. I just grabbed myself a copy of fx4noobs (which I got to know from this discussion only) and some other price action stuff and will try to make a better foundation.

 

You just did a fantastic favor.

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... I just wanted to be more comfortable with candlesticks formations and various patterns that they form. ... and some other price action stuff and will try to make a better foundation. You just did a fantastic favor.

 

There is a fellow in Oz, Lance Beggs, 'Your Forex Trainer' I think but his name on google would find it. He has a whole lot ov vids explaining reversal candles.

 

Good site.

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Hi Freddie, i just realized that the pivot bars in my previous post were actually bars that were created on weekends (look at 1st & 2nd instance of my markings), thats why they are very small in size. Should we consider such bars in our analysis?

 

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.

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Hi Freddie, i just realized that the pivot bars in my previous post were actually bars that were created on weekends (look at 1st & 2nd instance of my markings), thats why they are very small in size. Should we consider such bars in our analysis?

 

We delete the w/e bars. I should have noticed that. I have marked you pic. I have also said 'small profit' but they are day bars so big profit!! Day TF needs a lot of pips in its SL.

Also notice that the 'exit' bar is the next 'bar 1' - that is if you use that method.

 

I made a mess of the bars for the trade that didn't work.

 

http://i914.photobucket.com/albums/ac341/freddieforII/reversal1.jpg

Edited by Freddie
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Seems like this is "Third Candle" system.

 

Certainly does! In fact all these candle reversal systems work the same way.

 

Third candle is the essence of them all.

Harris uses the pass of candle 3 when 2 has changed colour (and stochs are pointing right)

Dittmann...I have forgotten what he says but it is similar.

The inside bar strategy expects a reverse but it is often a continuation first giving a wick that makes the pivot.

 

Having started this thread I was intending to leave it because I have moved my thinking to the 3rd Candle method. The first two of the five were superflous anyway.

 

Linkrink came along so we continued with this thread.

Edited by Freddie
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  • 1 month later...
Hi Freddie, ...Where would you place your initial Stop-Loss and where would you place your Target Profit ?. Do you trade this method now live ? fxfxfx

 

SL goes under the pivot candle target is decided by next reversal.

 

I am preparing to live trade a mix of the Asian Run, London BO and London Close. Finalising details and practising this week and perhaps next. Live after that.

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Thx Freddie for the fast reply, Makes sense to me to put the SL above/below the pivot...Can you please also provide me the info about the other systems that you trade and where I can find them ? Thx in advance fxfxfx

 

Asian Run, London BO are in the systems forum, and London Close is a breakout using about 12:30 to 13:30 for the range. Could also be seen as the NY open. Just trying to catch the afternoon UK time movement.

 

All going slowly today. Just missing their targets and dropping back to their BE + 1 SLs

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