Buy above yesterday high sell below yesterday low

X1

X2

x3 ended above BO bar high

X4

Some time ago I wondered if the price moved in one direction or another for some amount if it could be counted on to continue moving in that same direction enough to reliably trade the move. Thats pretty much what you are doing here, "Betting on the Direction".
https://www.forexfactory.com/showthread.php?t=224694
Now, what I did in the EA was bet on an ATR move to see if you could get another ATR - quite different criteria for betting on the direction than this. If you run that ea, in the strrategy tester, you will find that you will not make money long term.

So, do you think betting on the move to yesterdays hi or low continuing will enable a profitable strategy?

Here's a little indicator that shows the trade levels - and also lets you choose to show the current spread on the trade level (or not). Somebody outta make an EA....

o, do you think betting on the move to yesterdays hi or low continuing will enable a profitable strategy?
Yes.

[quote=lukeb;10503203]{quote} c If you run that ea, in the strrategy tester, you will find that you will not make money long term.
Any trader that leave the job to your EA might not make money long term. but when you combine signals and work manually,you can double your account very easy.
My trade in the nex chart show how i dected an Earlier signals=bearish engulfing hinted to a downside BO

Taking profits=When I see a NR4 or NR7 I decide to take profits or play a reversal

X5

[quote=XXX]I can tell you my personal solution, but you will have to find your own: I never look at or pay any attention to the 50, 100, or 200 period moving averages, and I pretty much stop reading anything as soon as I see someone discussing a touch, crossing, or slope of one of those averages–my statistical work has strongly suggested that these tools have no power, and we have better tools. Just because you hear everyone talking about something, that does not mean it is useful, and it does not mean it works. Make your own choices, but make them with an awareness of the statistical tendencies at work in the market.
{quote}
I do not agree with XXX.
MA guide when you combine then with other system.

I agree that the BoD (Break of the Day) strategy can’t be applied by itself ...
I usually use it after (1) I identified a direction I want to play with, and (2) when the market is in its corrective state of the identified direction ...
The BoD will then be on its reversing side ...

Any chart to see it in action?

x6 FRI close

x7 sunday open

Actually I was about to comment on the daily chart that you put out yesterday ... but by the time I came home, you already took it out ...
(if you could put it back, it would be a good example of what I was talking about) ...

Good thing it's all Demo Trading:

The BoD strategy is to be used as EP, not TP ...
Although the above chart is not a D1 chart, it can be used to explain my point ...
(1) the break of 1.18554 is a buy-trigger ... (2) the market then moved to around 1.18706 before making a correction ... (3) a buy-stop order could then be placed @ the high-of-the-day, which I think should be around the 1.18706 area ...
Although having a TP is a “good” practice, once the trade has been moving in the intended direction, a Trailed-SL could be applied @ Reversing-BoD ...

[quote=4for4;10529862] I think you are advocating a multi-day strategy using day bars, versus a day trading strategy, but translated to the chat above,
If we put this into rules, would this be your strategy?
1) Today's price must reach yesterday's High (or Low) and have a correction (so, it could exceed the high or low of the previous day considerably without an entry).
2) After a #1's correction, enter at the days high (or Low), not the previous day's high or low.
3) place a trailed stop loss @ Reversing BoD, which in the above chart would begin at 1,18126.

In the above 15 min chart for Friday, Nov 24, we can see a touch of yesterday's high, 1.18554, at about 12 bars in (I'm assuming it touched there, without going to the actual chart and checking the PA), followed by a correction to about 1.18400.
Place a buy entry at 1.18554 (the high of the day so far, and the touch of yesterdays high, both).
Place a trailing stop starting at 1.18126 (428 points trailing stop, ~43 pips or $420 risked per lot). The trader will need to have additional strategies to exit and realize a profit, as many days movement can yield a profit, but would not yield a profit just with the trailing stop.

That would have kept you in for the big run, although there are a couple corrections that would tempt you to get out before the big run, and a day trader would recognize the 'sea of red' after the price reached about 1.19365 as time to close. If the trader got out at 1.19223, that would be 669 points. With a 2 pip spread, the trader could realize ~$640 per lot, a very good day's take.

Changes and new ideas are fine.


#1 PA hit both high and low

Yes, I definitely talked about using D1 chart as the thread is about breaking daily high/low ...
What I will be waiting for is a similar situation as the above chart ...
First, a breakout (a buy-breakout in this case, where I’ll be calculating a 1R-TP using the breakout price and an existing valley) ... Then, a correction (which in this case, the last candle didn’t break previous high, meaning the upward movement was “temporarily” suspended) ... Only after that will I put a trailing buy-stop order @ previous high provided the calculated TP hasn’t been reached yet ... I will then trail the SL @ every newly formed valley ...

If after the “suspension”, the market moves backward and reaches the initial existing valley, I will abandon the buy-attempt and wait for another opportunity ...