the following is not an interpretation of this strategy but a bouncing off of ideas with a twist to it.
of course this is after the fact analysis.
1. starts at 5pm EST
2. use 60 minute chart with the MACD and RSI on the chart
3. keep watching until the high or low for the day has been hit
4. as soon as the daily high or low has been hit on the 60 minute charts, switch to your 1 minute charts. if the daily high or low has also been hit on the 1 minute chart, the signal is confirmed
5. if it is the high for the day that has been hit, go short. if it is the daily low that has been hit, go long
6. set stop loss of 15 pips and a profit target of 25 pips
2. i don't think i see people discussing the h1 macd and rsi here. maybe could use for regular/hidden divergence.
3. a lot of us will ask the question how do we know when it's the high or low for the day.
4. since we have this difficulty in identifying point 3 above, i break the day into 3 sessions (asia, europe, new york) for easier identification of trading the sessions high or low.
5. i would rather trade along with higher time frame main trend. if trend is down, i only look for session high to sell.
the only thing is that it could not be applied to a runaway trend.
we could use m1 lower low lower high or trend line break to sell.
if price could not break up the europe high and the asia high is above, we could more or less say that asia high is the high of the day.
the last example shows price broke up new york session high reaching for europe high, then asia high.
one could see that the sessions high mostly happened close to the sessions open.