DIBS Chart Book for Week Ended July 15th 2011

The latest chart book with DIBS set ups highlighted is available. This past week featured a volatile breakout at the beginning of the week on the “risk off” theme, which was very good to early week DIBS breakouts. As the week progressed and the risk-off sell offs retraced, the action became choppier and less favourable to DIBS signals.

Enjoy,

FXdibs4pips

 

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EURUSD – liquidity gap fill to the downside in progress?

I like this chart of EURUSD for the last week, it shows a possible weekly time frame pin bar being formed on the 1H chart, the only thing EURUSD needs to do is finish the week near the current levels, which is by no means a certainty. The chart demonstrates some of the patterns found at the www.nobrainertrades.com web site, which is a great resource for forex traders. The spike base pattern is one that I like to keep my eyes peeled out for on 1H and 15m and 5m charts because it repeats a lot (http://www.nobrainertrades.com/2009/06/spike-base-pattern.html). In this environment where EURUSD is capable of trading like a yo-yo between EU debt concerns and the laundry list of USA concerns (debt ceiling, QE speculation/anticipation etc.) the pattern becomes that much more important since liquidity gaps crop up as a result of ad-hoc news (comments on wires by central bankers, bond auction results, rating agency downgrades, etc. etc.).

If EURUSD wants to print a pin bar for weekly chart this week, maybe on Friday it will try and print a pin bar too, perhaps by tagging the 1.4090s area (Missed Daily pivot from Tuesday)….

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DIBS Chart Book – Week Ended July 8th

The latest DIBS Chart book is available for the week ended July 8th. The week was quite volatile as there was a lot of “risk off” type news developments. On many occasions the DIBS signals ended up being reversal patterns instead of trend continuation breakout patterns.

This week’s chart book covers EURUSD, GBPUSD and the “risk-on / risk-off” pairs: EURCHF and EURJPY.

Good trading,

FXDIBS4PIPS

DIBS Forex Chart Book For the Week Ended June 24th 2011

The latest chart book showing some recent DIBS charts for a few Forex pairs is available. This week the book features EURUSD, GBPUSD, USDCHF and has also included EURJPY, EURCHF and GBPCHF.

Enjoy!

$GBPUSD – Trading News and Multi Time Frames with DIBS

WordPress has fried this blog post, click on the link to the Blog and you can read the original blog post with all the charts.

Go to FX DIBS 4 pips blog

Opening Range Breakouts – $GBPUSD $EURUSD Tanked today

Opening range breakouts sometimes can catch some very strong follow through. In Forex, one of the most important periods is the London open, as it can often set the tone for the rest of the trading session including a follow through into NY Session.

Today’s price action showed an opening range near the day highs on EURUSD and GBPUSD, with both pairs printing opening ranges between 7:30 AM UK time and 7:59 AM UK Time of under 30-pips.

Chart below shows both GBPUSD and EURUSD on 15m charts with an opening range and some extension targets.

The breakouts can take time to get going

  • In the case of GBPUSD, the break gathered downside momentum more quickly than EURUSD today, and then the GBPUSD got strong follow through with a bearish reaction to some dovish MPC minutes (released at 9:30AM UK Time).
22-06-2011_11-12-53_orb_gbpusd

The breakouts can be powerful on newsflow days

  • The Opening Range Breakouts can produce some big follow through on days with heavy newsflow. With the London session on Tuesdays-Fridays featuring data releases affecting GBPUSD and EURUSD, these can be sessions where the breakouts either see powerful follow through or powerful reversals.Either way, the support/resistance zone created by the opening range can help you see areas where price will either be contained by S&R, or areas where price is likely to stage a breakout.

Sometimes inside bars show up on these breaks

  • The chart in this post shows that GBPUSD printed an inside bar on its impulsive down move (none for EURUSD). The inside bar patterns can sometimes offer attractive risk/reward when a break gathers steam.

Where can I get the Free DIBS Indicator for MetaTrader?

The Daily Inside Bar Set Up (DIBS) is something that is super easy to spot on a Forex chart if you use MT4 and have ever loaded a custom indicator.

My preferred DIBS indicator for MT4 is the DIBS version 1.0 indicator. You can download the indicator for free at the following link

http://www.forexfactory.com/showthread.php?p=3007282#post3007282

Just download the  “DIBSv1.0.mq4” file that appears on this post on the ForexFactory site and you can then just follow the standard steps for installing an indicator onto your MT4 platform.

How to set it up on your chart

You will need to adjust the settings on the indicator based on your Forex broker. Here are the settings I use for MT4 on Alpari-UK

1.       Show_IB: Set this to “True”

2.       Show_Daily_Open_Line: Set this to “True”

3.       Show_Remain_Bar_Time: You can set this to “true” or “false”, whatever you prefer

4.       Timezone_Offset: Set this to “7” for Alpari UK

The settings above coincide with the charts that appear in the DIBS Chart Books every week.

The 4th setting is the one that involves the most playing around since it depends on your Forex Broker. My aim is to have the Daily Open Line appear at 6AM local UK time (GMT in the winter / BST in the summer…..BST is just British Summer Time…which is just Daylight Savings Time for the UK). On other Forex brokers offering MT4 you want to find out what timezone they have set their MT4 server to, and from there you can adjust the setting in the DIBS indicator. For instance the MT4 server on www.forex.com is set to the GMT time zone all year-round, which means in the summer the indicator uses an offset setting of “5” and in the winter it uses “6”.

For more on the settings and the rules behind the DIBS Forex trading method, you can check out the free e-book

http://www.scribd.com/doc/57275426/FF4Numpties-Vol1-DIBS-eBook?secret_password=2ov3ej14gayd38roige1

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