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Trading is as simple as 1-2-3

  • #41
  • Jul 19, 2015 3:55pm Jul 19, 2015 3:55pm
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When we talk about price we usually refer to price as "up" or "down" or "going up" or "going down". The reference point is usually an open, in most cases the daily open. Another perspective or reference would be "moving towards" or "moving away". "Price moving away" from the open indicates the distance is increasing. "Price moving towards" the open indicates the distance is decreasing. Once you enter a trade, price has to move away from your entry in the direction you choose for you to gain. There are two points of reference, the open and your entry.

"95% of the time price will close above or below the open." Amateurs will never see the edge in this quote, unless a professional point it out where the edge lies within this quote. I am not sure who is the original author of this quote. I found it on a post by CrucialPoint.

Testing this statement shows it holds true for daily and weekly periods. At the hourly or H1, it is closer to 90%.

The obvious conclusion is the closer your entry is to the open, the better the chance for a positive outcome.

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The chart has dotted lines for the last 24 H1 opens. Each open price is listed with the difference in pips from the current price.
My Threads: Trading is as simple as 1-2-3, Highest Open / Lowest Open Trade
  • #42
  • Jul 19, 2015 4:35pm Jul 19, 2015 4:35pm
Higher high only higher than bar before or new swing high?
  • #43
  • Jul 19, 2015 6:20pm Jul 19, 2015 6:20pm
Quoting Anusragger
Higher high only higher than bar before or new swing high?
Welcome Anusragger.

Unsure of exactly what you are asking since you omitted a quote. I will do my best to answer.

A) The high would be the daily high. When price makes a new high for the day on the previous H1 bar[1] and fails to make a new high on the current H1 bar[0] there is a short trade entry possibility when prices returns to the open price of the current H1 bar[0].

"In summary, a bar makes a high and closes. Next bar fails to make a higher high and reverses. Sell when price drops below the open price of the current bar."

"Successful people ask better questions, and as a result, they get better answers." - Tony Robbins

Socratic method is named after the classical Greek philosopher Socrates. It is a form of inquiry and discussion between individuals, based on asking and answering questions to stimulate critical thinking and to illuminate ideas.

Please understand none of this is original or new and this is presented for EDUCATIONAL PURPOSES ONLY. You may find your results may differ. Please check with an accredited financial specialist before using real money. FOREX trading can be risky. YOU HAVE BEEN WARNED!
My Threads: Trading is as simple as 1-2-3, Highest Open / Lowest Open Trade
  • #44
  • Edited 1:44am Jul 20, 2015 1:29am | Edited 1:44am
Quoting TooSlow
{quote} Welcome Anusragger. Unsure of exactly what you are asking since you omitted a quote. I will do my best to answer. A) The high would be the daily high. When price makes a new high for the day on the previous H1 bar[1] and fails to make a new high on the current H1 bar[0] there is a short trade entry possibility when prices returns to the open price of the current H1 bar[0]. "In summary, a bar makes a high and closes. Next bar fails to make a higher high and reverses. Sell when price drops below the open price of the current bar."...
Thanks, exactly what I wanted to.know. I thought maybe you were fading the last bars high, if that was a higher high than the bar before it. I like your posts. Happy trading!
  • #45
  • Jul 20, 2015 8:01am Jul 20, 2015 8:01am
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1-2-3 HL-LL-HL Trading today in tight range. No news to push price.
My Threads: Trading is as simple as 1-2-3, Highest Open / Lowest Open Trade
  • #46
  • Jul 20, 2015 5:35pm Jul 20, 2015 5:35pm
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What happened after the 1-2-3 HL-LL-HL
My Threads: Trading is as simple as 1-2-3, Highest Open / Lowest Open Trade
  • #47
  • Jul 21, 2015 8:38am Jul 21, 2015 8:38am
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Setting up.

In summary, a bar makes a low and closes. Next bar fails to make a lower low and reverses. Buy when price rises above the open price of the current bar.

"Successful people ask better questions, and as a result, they get better answers." - Tony Robbins

Socratic method is named after the classical Greek philosopher Socrates. It is a form of inquiry and discussion between individuals, based on asking and answering questions to stimulate critical thinking and to illuminate ideas.

Please understand none of this is original or new and this is presented for EDUCATIONAL PURPOSES ONLY. You may find your results may differ. Please check with an accredited financial specialist before using real money. FOREX trading can be risky. YOU HAVE BEEN WARNED!
My Threads: Trading is as simple as 1-2-3, Highest Open / Lowest Open Trade
  • #48
  • Jul 21, 2015 9:54am Jul 21, 2015 9:54am
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Brown line marks lowest open price. When price crosses above this line, price is moving up relative to that line.
My Threads: Trading is as simple as 1-2-3, Highest Open / Lowest Open Trade
  • #49
  • Jul 21, 2015 10:57am Jul 21, 2015 10:57am
Do you watch out for a trade evert time a new daily h/l is established? And you probably won't like this question: do you put your stop above/below the h/l price reversed from.
  • #50
  • Jul 21, 2015 11:07am Jul 21, 2015 11:07am
Quoting Anusragger
Do you watch out for a trade evert time a new daily h/l is established? And you probably won't like this question: do you put your stop above/below the h/l price reversed from.


Do you watch out for a trade every time a new daily h/l is established?

Yes. Reversals happen.

do you put your stop above/below the h/l price reversed from.

Best place for a stop would be below the low/above the high. Naturally, you adjust your position size to stay within your risk parameters.



"Successful people ask better questions, and as a result, they get better answers." - Tony Robbins

Socratic method is named after the classical Greek philosopher Socrates. It is a form of inquiry and discussion between individuals, based on asking and answering questions to stimulate critical thinking and to illuminate ideas.
My Threads: Trading is as simple as 1-2-3, Highest Open / Lowest Open Trade
  • #51
  • Jul 21, 2015 3:18pm Jul 21, 2015 3:18pm
"In summary, a bar makes a low and closes (Bar One) . Next bar fails to make a lower low and reverses (Bar Two?). Buy when price rises above the open price of the current bar" (Bar Three?)




This line I'm not sure about - are you saying the current bar is two bars after the bar making the low, or could it be bar two which may not have closed yet?



"Next bar fails to make a lower low and reverses" - are you rigid with literally the next bar, or just whichever the next bar is that makes a reversal (and closes?)?
  • #52
  • Jul 21, 2015 3:43pm Jul 21, 2015 3:43pm
Quoting TooSlow
{image} Brown line marks lowest open price. When price crosses above this line, price is moving up relative to that line.
Could one state that the trade potential of a 123 setup is the same for a 15 min open or a 1hr open?......
  • #53
  • Jul 21, 2015 4:52pm Jul 21, 2015 4:52pm
Quoting MikeCo
"In summary, a bar makes a low and closes (Bar One) . Next bar fails to make a lower low and reverses (Bar Two?). Buy when price rises above the open price of the current bar" (Bar Three?) This line I'm not sure about - are you saying the current bar is two bars after the bar making the low, or could it be bar two which may not have closed yet? "Next bar fails to make a lower low and reverses" - are you rigid with literally the next bar, or just whichever the next bar is that makes a reversal (and closes?)?
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Current bar is always bar[0] and you count back. Current bar is one bar after the bar making the low. Not 100% rigid. The bar after the bar making the low may not do much but the next bar may test the low and reverse like a rocket.
My Threads: Trading is as simple as 1-2-3, Highest Open / Lowest Open Trade
  • #54
  • Jul 21, 2015 4:57pm Jul 21, 2015 4:57pm
Quoting forexdave1
{quote} Could one state that the trade potential of a 123 setup is the same for a 15 min open or a 1hr open?......
Not sure. Have not considered that as an option. Possibly a higher potential for loss with M15. One H1 bar contains 4 M15 bars. The combinations of up/down are 16. Up Up Up Up, Up Up Up Dn, ... Dn Dn Dn Up, Dn Dn Dn Dn some of them could cause a stop to be triggered when then entry may not have occurred on H1.
My Threads: Trading is as simple as 1-2-3, Highest Open / Lowest Open Trade
  • #55
  • Jul 22, 2015 8:16am Jul 22, 2015 8:16am
In summary, a bar makes a high and closes. Next bar fails to make a higher high and reverses. Sell when price drops...

Attached Image


"Successful people ask better questions, and as a result, they get better answers." - Tony Robbins

Socratic method is named after the classical Greek philosopher Socrates. It is a form of inquiry and discussion between individuals, based on asking and answering questions to stimulate critical thinking and to illuminate ideas.

Please understand none of this is original or new and this is presented for EDUCATIONAL PURPOSES ONLY. You may find your results may differ. Please check with an accredited financial specialist before using real money. FOREX trading can be risky. YOU HAVE BEEN WARNED!
My Threads: Trading is as simple as 1-2-3, Highest Open / Lowest Open Trade
  • #56
  • Jul 22, 2015 8:22am Jul 22, 2015 8:22am
Attached Image



In summary, a bar makes a low and closes. Next bar fails to make a lower low and reverses. Buy when price rises above the open price of the current bar.

"Successful people ask better questions, and as a result, they get better answers." - Tony Robbins

Socratic method is named after the classical Greek philosopher Socrates. It is a form of inquiry and discussion between individuals, based on asking and answering questions to stimulate critical thinking and to illuminate ideas.

Please understand none of this is original or new and this is presented for EDUCATIONAL PURPOSES ONLY. You may find your results may differ. Please check with an accredited financial specialist before using real money. FOREX trading can be risky. YOU HAVE BEEN WARNED!
My Threads: Trading is as simple as 1-2-3, Highest Open / Lowest Open Trade
  • #57
  • Jul 22, 2015 8:35am Jul 22, 2015 8:35am
Attached Image


Time to move stop?
My Threads: Trading is as simple as 1-2-3, Highest Open / Lowest Open Trade
  • #58
  • Jul 22, 2015 8:39am Jul 22, 2015 8:39am
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Will the trade get stopped out?
My Threads: Trading is as simple as 1-2-3, Highest Open / Lowest Open Trade
  • #59
  • Jul 22, 2015 9:01am Jul 22, 2015 9:01am
Attached Image


stopped out.
My Threads: Trading is as simple as 1-2-3, Highest Open / Lowest Open Trade
  • #60
  • Jul 22, 2015 9:51am Jul 22, 2015 9:51am
Attached Image


The 1-2-3 pattern repeats itself.
My Threads: Trading is as simple as 1-2-3, Highest Open / Lowest Open Trade
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