What follows below is another work in progress and therefore experiemental. It's nothing new in theory, just another way of looking at 4 bar reversals/trend continuations. I've only looked at this manually on GBP/USD 1 hour. Pretty self explanatory from the first picture. The setups resembles hooks and ticks hence the title of the thread.
Rules:
Buy setup - Bar 2 makes a lower low and a lower high than bar 1. It doesn't matter if they are bullish or bearish. Bar 3 makes a higher low than bar 2. It also doesn't matter what direction it is. Bar 4 makes a higher high and higher low than bar 3 and bar 1 AND closes bullish.
Buy entry - Buy at open of bar 5, TP 10, SL at low of bar 4.
Sell setup - Bar 2 makes a higher low and a higher high than bar 1. It doesn't matter if they're bullish or bearish. Bar 3 makes a lower high than bar 2. It also doesn't matter what direction it is. Bar 4 makes a lower high and lower low than bar 3 and bar 1 AND closes bearish.
Sell entry - Sell at open of bar 5, TP 10, SL at high of bar 4.
Rules:
Buy setup - Bar 2 makes a lower low and a lower high than bar 1. It doesn't matter if they are bullish or bearish. Bar 3 makes a higher low than bar 2. It also doesn't matter what direction it is. Bar 4 makes a higher high and higher low than bar 3 and bar 1 AND closes bullish.
Buy entry - Buy at open of bar 5, TP 10, SL at low of bar 4.
Sell setup - Bar 2 makes a higher low and a higher high than bar 1. It doesn't matter if they're bullish or bearish. Bar 3 makes a lower high than bar 2. It also doesn't matter what direction it is. Bar 4 makes a lower high and lower low than bar 3 and bar 1 AND closes bearish.
Sell entry - Sell at open of bar 5, TP 10, SL at high of bar 4.
Attached Image (click to enlarge)
