This IB trading is known for many years and I did not hear/read about any great trader that use it.
It is my understanding that since the market is unpredictable, the best short term traders (like the ones on the floor that I am talking to) working orders just as they see a directional momentum being created. This short term momentum can give you a safe in and out for a few ticks. Do it 10-20-30 times a day and you are more than OK with a very low risk per trade.
This is also a thread which serves as a social gathering place for many. But it has merited its place in Big Mike's Forum. Range and volume analysis are outstanding tools in determining trade setups. This thread is about range analysis. If you want to post, you would have to quickly read your way through the prior posts. Some of them are just 1 line long.
Prior to the directional momentum which has been created, there was a period of low volatility such as represented by an inside bar. This thread is not about trading inside bars, but about the breakouts, which occur afterwards.
Also you do not want to trade any directional momentum, which is exhausted. You want to trade it, when it is fresh and alive and accelerates. This is exactly, what happens after a breakout from an inside bar.
If you say that you do not know any great trader who uses inside and narrow range bars, have a look at the website of Crabel Capital Management LLC. They have over $ 1 billion under management, but maybe they are not great traders.
Toby Crabel has published a book in 1990 and some articles in the TASC magazine which can be found here
On the first page, Jeff lists the indicators he uses to trade THE THREE SETUPS for crude. One of them is the TradingTime.cs. I compiled it but don't see where there is an option to change it to a different time zone. Can someone please help. I need to select trading times for EST. Am I over-looking an option on Jeff's to change or is there another indicator that allows for this. Any help would be greatly appreciated. I would be very grateful if someone could point me in the right direction. Thanks.
Thanks for pointing to the Trader Feed post. I love those contributions of Brett. Ayn Rand is completely unknown in Europe. We usually refer to Popper and Kuhn. I guess I will get myself a book by Ayn Rand and read it.
I also agree with your statement that the IB system is not as simple as it is shown here. I am mainly interested in low volatility situations because they precede momentum moves. I use the Toby Crabel patterns, but also consecutive dojis that do not qualify. I then determine a preferred breakout direction based on other indicators and only take the trade, if it conforms to that direction. The low volatility is just a required part of the setup. Low volatiliy means low risk, and small losses if the trade goes wrong. I think that this is one of the secrets of successful trading.
By the way, I think that Crabel is trading part of the assets, as he mentions momentum and mean-reversion trades, but I do not know it.