The next important part of the system in all trade is a BAR in An IB or IB. only when the bar is currently less than or equal to the bar to the left of it. Bar in it can also be the same size as the previous bar.
The BAR on standard technical analysis pattern is, however, most people are looking for it. You can also use the outdoor bar or OB.
How to Trade the IB for
First find an IB to form then check if it is applicable with the stochastic indicator IB set.
Indicator Stocatic Set up
When the stochastic under or around 20 and oversold and started looking for hook round to IB to go long, When the stochastic to 80 and above and start round hook in looking overbought for the IB to go short You will find their best on the market trends as well as a variety of market-bound but if price action choppy remain outside.
The Stochastic does not have to exactly 80-20 but the signal is stronger if they are. Sometimes for example they may be on the 54 as long as they start to turn around and linking and IB form it is a valid trade possible.
Entry
To enter the trade waited bar next after the IB going up 1-2 pips higher from IB to signal a buy or 1-2 pips lower for sell signal. Also shadow IB must be located within the bar previously also in the size of the overall stated it is not a valid signal.If after the IB formed you get bar to another with the same size with the IB and not go 1-2 pips either way then you can see up to 3 bar more after the IB to confirm the signal bar and enter the trade. If you do not get the signal side stand and wait for the new IB formed.
Stop & Out
To stop and get out you can trail stop at the bottom of the bar before the IB with 1-2 pips if You more aggressively 2 bar under the bar before the IB.
Out when the stochastic cross in the opposite direction but becarefull when going for when hits stochastic 80 could hang out in a few moments before bringing up or just stay flat in the strong trend up so that the wait for hook under and post under 80 level or reversal candle to get out. Also a large number to come out looking for if you're trading the GBP/USD. Try not to enter the trade about the number of waiting for the price of the pass and searching for support or resistance then find an IB to form and take the trade.
I see graphs 1 hour first and see what is above all a trend for today will then trade off the chart 15 minutes for the day.
One benefit of this system is able to bring you into early trade before the crowd. Once you have a demo system how you want to trade live
by James, members of the Forum BabyPips.com
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