DIBS Method System - Your Trading Edge

Hello, fellow traders.
In order to make money in Forex, you need a trading edge. Something that will give you a statistical advantage toward profit and confidence in long-term success. One of those advantages is limited risk and unlimited profit.

Today we will talk about the already classic strategy DIBS Method, a system that contains the above-mentioned advantage.

Platform: any
Currency pairs: EURUSD, GBPUSD, USDCHF, USDJPY
Timeframe: H1-D1
Trading time: London and American sessions
Recommended brokers: Roboforex, Alpari

The strategy is based on the Price Action pattern "Inside Bar". This pattern consists of a mother candle and an inside candle and means a temporary agreement on price between buyers and sellers. The boundaries of the inside candle are completely within the boundaries of the preceding, "mother" candle.

Our goal as Forex traders is to catch the move, catch the trend, a little earlier than other players. And stay in the trend as long as possible.

Before we catch the trend, we need to determine its direction so as not to trade against the trend.

So, at a certain time, at 06:00 Greenwich time (you can check Greenwich time here) we determine the price line that will serve us as a reference point, the opening point of the day. Above this line we will only buy, below it only sell. It is at this time that the moves that will dominate during the day most often begin. Therefore, when the price is above this line, we can say there are prerequisites for an upward trend, below it for a downward trend.

Starting from 6:00 GMT, we watch the market, the hourly chart, and wait for an "inside bar" to appear. As soon as the inside bar has formed, we look at where the price is now relative to our "day opening line" drawn at 6:00 GMT.

If the price is lower, we will trade the breakout of the inside bar downward, if higher, the breakout of the inside bar upward.

We trade the breakout of the boundaries of the inside bar itself (the small candle). If the price is above the price at 6:00 GMT, we buy, if lower, we sell. Using pending orders.

Our stop-loss will be behind the opposite end of the inside bar. We look for entry signals only in the first 9 hours after 6:00 GMT.

We enter the market with three orders - A, B and C of equal volume. We place orders A and B with a take-profit equal to the stop-loss, and order C without a take-profit.

We will keep it in the market until the trend changes. Order A brings us profit, order B covers a possible stop-loss on order C, and order C is the source of potentially large profit.

We will trail the stop-loss on order C along the trend, following the simple moving average with a period of 20. That is, with each candle we move the trade's stop-loss closer and closer to the current price at the moving average level. If the price moves in our favor, the stop-loss moves after it, if in the opposite direction, the stop-loss stays in place.

Such tactics can sometimes allow you to earn a profit 20-30 times greater than the stop.

Track each position in this system separately, regardless of the orders currently in the market.

Another rule of the DIBS Method strategy is to trade only pairs that are in motion. We feed the horse that is running.

How is this done? Very simply.

Open the daily (D1) chart and apply a moving average with a period of 20 to it. The price must be above or below the moving average, but not sitting on the line itself. The moving average should also have a slope. So that there is no equilibrium in the current price and there are prerequisites for a possible movement (in which direction is not important).

You can trade the DIBS Method system on longer timeframes as well - H4 and D1. Everything is the same as when trading on hourly charts, but we use the week's opening price (the candle on Monday) as the reference point. If the inside bar breaks below the week's opening price, we only sell; if it is above, we only buy.

Watch the risk: since 3 orders are used in the trading system, 3 stop losses are possible. The risk on one order should not exceed 0.3% of the deposit. Our mobile app will help you calculate the lot size.

The DIBS Method forex strategy is extremely simple. That is its advantage, and that is what has allowed it to remain effective for many years. Small risks and unlimited profit - applying the principles embedded in DIBS is easy in theory, but not simple in practice; it is psychologically hard to hold profitable trades, because we carry the paradigm imposed by advertising - "Get everything here and now!". However, if you do some work on yourself, the trade management principles from this strategy (even with other entry rules) will one day make you a millionaire.

Respectfully, Pavel Vlasov TradeLikeaPro.ru