Wednesday, September 10, 2008

Taking a different setup...

A short setup appeared called a DIBS setup. This is a break of an 'inside bar', where the high and low of an hour's prices are contained within the high and low of the previous hour. The 4am bar displays this setup, and the 5am bar broke the low and is under the open price. This is a low risk setup, because the stop is placed at the opposite extreme of the inside bar that was broken.
Additionally, this particular example of this setup gives a signal in the opposite direction if this first trade should fail.

Short 2800 EUR/USD at 1.4144
Initial stop: 1.4169
Initial exposure: 25 pips, $7.00 or 8.71%

Current Closed Equity: $80.38
Current position: Short 2800 EUR/USD at 1.4144
Current exposure: $7.00 or 8.71%

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