DislikedSo I just took this trade at the opening of the bearish 5m candle. The candle before that did not create a new high. So to me, all rules are met. Price went down to trigger the trade and went up again hitting my sl. This happens a lot actually. {image}Ignored
Highest Open / Lowest Open Trade
- #15,922
- Edited 7:53am Oct 20, 2021 7:36am | Edited 7:53am
- | Joined May 2009 | Status: lost in the void | 2,977 Posts
Hi.
Great thread @TooSlow. Please let me know if it get this correct.
EUR/USD. The last H1 bar lowest open marked by the red vertical line on my chart would have been the trigger to go long at 1.37614 while that bar was forming?
But in this case it did put in a new lower low within that ongoing H1 bar, putting in a new current daily low, making this a breakout situation. This would have been also where i would have been stopped out (Sl at the current daily low).
Otherwise if gone long at 1.37614 it moved up only +4.1 before retracing back to make a new low. So no chance to had the stop moved to BE/+1 once +5 in this instance.
thanks in advance.
Edit. Some time after. So price made a new lowest H1 open then shot instantly up higher.
So when is "dropped below" below enough? Here it doesn't looks to have dropped below at all.
When price "dropped below" isn't that automatically a new low for today? So the breakout situation in this case is just natural if you want to see it like that unless you do not only look at the previous day's low/high for that.
Great thread @TooSlow. Please let me know if it get this correct.
EUR/USD. The last H1 bar lowest open marked by the red vertical line on my chart would have been the trigger to go long at 1.37614 while that bar was forming?
But in this case it did put in a new lower low within that ongoing H1 bar, putting in a new current daily low, making this a breakout situation. This would have been also where i would have been stopped out (Sl at the current daily low).
Otherwise if gone long at 1.37614 it moved up only +4.1 before retracing back to make a new low. So no chance to had the stop moved to BE/+1 once +5 in this instance.
thanks in advance.
Edit. Some time after. So price made a new lowest H1 open then shot instantly up higher.
AFTER, price has dropped below the lowest H1 open, THEN AND ONLY THEN, do you enter a long trade when price rises back up to the lowest H1 open.
So when is "dropped below" below enough? Here it doesn't looks to have dropped below at all.
When price breaks through yesterday's high or low or makes a new high or low today, that is a breakout!
When price "dropped below" isn't that automatically a new low for today? So the breakout situation in this case is just natural if you want to see it like that unless you do not only look at the previous day's low/high for that.
- #15,926
- Oct 20, 2021 8:54pm Oct 20, 2021 8:54pm
Another loss. The pending order was placed when the 5m bar (15m bar would also be in that area) opened between daily low and lowest open. Price did a retrace to activate the pending buy, and went down to make a new daily low. So far, the losses do not match the wins resulting in a overall loss. What am I doing wrong here? {image}
Hi Cologne.
I hope I can help you out a bit here.
Firstly, I am going to make an assumption, because I obviously don't know what you actually did, so my apologies if I have this wrong.
If I have this right, it appears that you entered on the 15 minute candle prior to the close of the hour. If that's true, then it would not have been a valid entry.
So let's walk through each step.....again, my apologies if you know any or all of this, but it may help others.
Candle A appears to be your entry candle. If it was, then as mentioned, it was not a valid entry, as that particular candle did not open in (what was) the area of interest at that time. (not marked on the chart)
When candle B opened, it was the start of the new hour.
It also printed the NEW H1 Lowest Open price.
So, it became our new "line in the sand".
The DAILY LOW did not get breached in the previous hour....so....we have a NEW AREA OF INTEREST (AOI) to look at for our setup.
So we now wait to see if we get an M15 candle to open in our AOI to validate an entry.
When Candle C opens in our AOI, it validates an entry being taken.
So we would then place a pending Buy Stop trade at the Lowest H1 Open price...with a stop at the Daily Low price.
NOW......this is where the "nuisance factor" comes into play. The spread would have then triggered your trade from candle C I'm guessing. Unfortunately, nothing we can do about that. To state the obvious, with zero spread, the trade would not have triggered.
If you had of NOT placed the trade off candle C, and waited for Candle D to open, then your trade would probably not have been triggered by the spread, but that's all fine in hindsight.
And Candle D then went on to stop you out....and also then made a new daily low, so the show starts all over again.
Again, I hope this helps you (and others).
Probably not a pair I would have traded, but of course, you WILL have HoLo's on any pair every single day.
Cheers and happy trading to you.
Michael
{quote} Thanks very much. You are right about my entry. But I entered on a 5m tf sometime in that hour candle. Price was below the current lowest opening and above daily low. So what I understand is we should not enter a trade within an 1h candle that formed a new lowest open or highest open? I thought only a break of daily low or high cancels a trade.
Here is a current chart of GJ (didn't trade this) But the green line shows the lowest hourly open for the day. The current 15m bar opens below it and crosses back through the h1 open, this is where u would buy. Hope this helps.
- #15,930
- Oct 21, 2021 9:12am Oct 21, 2021 9:12am
- Joined Mar 2012 | Status: Trader | 14,321 Posts
My Threads: Trading is as simple as 1-2-3, Highest Open / Lowest Open Trade
- #15,931
- Oct 21, 2021 10:12am Oct 21, 2021 10:12am
Hi all,
TooSlow, MichaelG,Lemer
Hope you guys are trading well, this is my take on 1-2-3, Highest Open / Lowest Open Trade.
I was trading on mobile phone since 2017,when i first saw upon this thread.
the challenge was marking the lines each and every single day, because of that i only traded this on XAU.
And trade 1 pair ever since. Makes more sense to me compare to other methods that i learned.
I must say thank you again to all of you for this simple method
Yet it took me 4 years to really apply it into my trading.
I must say I took 4 year to really observed and understand, these Statement . For sure , I was in the trigger happy club
"When price is above an open, it is up. Conversely, when price is below an open, it is down. It is a good idea not to short when price is up and not to buy when price is down. Naturally, most traders look for reversals but are impatient and trigger happy thus buying when they should be selling and vice-versa.
A sell below the H1 open of the bar immediately following the bar making the highest high would have resulted in profit. 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.
A buy above the H1 open of the bar immediately following the bar making the lowest low would have resulted in profit. 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."
HIGHEST OPEN / LOWEST OPEN TRADE
Place a line at the highest H1 open and lowest H1 open for the current day.
Sell short at the highest H1 open after price goes up through it and comes back down.
Buy at the lowest H1 open after price goes down through it and comes back up.
Daily open is my guide, i live in asia, US open is at 9pm. I could take on asian market during work hour.
Monitor the H1 open, and proceed accordingly.
Indi are tools to make life easier, use it or not, we can still trade
The uereka moment happened when i was thinkering this indi My gratitude to you Swingman
Bye tqvm all.
TooSlow, MichaelG,Lemer
Hope you guys are trading well, this is my take on 1-2-3, Highest Open / Lowest Open Trade.
I was trading on mobile phone since 2017,when i first saw upon this thread.
the challenge was marking the lines each and every single day, because of that i only traded this on XAU.
And trade 1 pair ever since. Makes more sense to me compare to other methods that i learned.
I must say thank you again to all of you for this simple method
Yet it took me 4 years to really apply it into my trading.
I must say I took 4 year to really observed and understand, these Statement . For sure , I was in the trigger happy club
"When price is above an open, it is up. Conversely, when price is below an open, it is down. It is a good idea not to short when price is up and not to buy when price is down. Naturally, most traders look for reversals but are impatient and trigger happy thus buying when they should be selling and vice-versa.
A sell below the H1 open of the bar immediately following the bar making the highest high would have resulted in profit. 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.
A buy above the H1 open of the bar immediately following the bar making the lowest low would have resulted in profit. 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."
HIGHEST OPEN / LOWEST OPEN TRADE
Place a line at the highest H1 open and lowest H1 open for the current day.
Sell short at the highest H1 open after price goes up through it and comes back down.
Buy at the lowest H1 open after price goes down through it and comes back up.
Daily open is my guide, i live in asia, US open is at 9pm. I could take on asian market during work hour.
Monitor the H1 open, and proceed accordingly.
Indi are tools to make life easier, use it or not, we can still trade
The uereka moment happened when i was thinkering this indi
My gratitude to you SwingmanBye tqvm all.
{quote} This was more like a run-away train down South to me and only inexperience would have tried to go long on this train IMHO anyway. I am attaching the US30 of this morning for comments, please. I STILL battle with what happens when a HOLO is established and therefore we are supposed to look for an opposing direction trade. On TS' template, he has written a couple of points one has to keep in mind and one of them being ... BUY @ Lowest Open AFTER price comes back UP!! - in my case. My confusion still rages when the rules state that the price...
- #15,934
- Oct 21, 2021 12:47pm Oct 21, 2021 12:47pm
{quote} Hi Hercs, what is your question exactly? Will be easier to give an informed answer
Here is my problem:
My confusion still rages when the rules state that the price has to still go further down into the Area of Interest ( HOLO) and when the price comes back up again, the trade is taken at the LOWEST OPEN ( as a BUY in my case).
If you can show me on any of the candles towards the bottom where the HOLO is, what to do next, I would be very happy.
Many thanks for your kind offer to assist.
Hercs.
Hercs
- #15,937
- Oct 21, 2021 10:58pm Oct 21, 2021 10:58pm
- Joined Mar 2012 | Status: Trader | 14,321 Posts
The uereka moment happened when i was thinkering this indi
My Threads: Trading is as simple as 1-2-3, Highest Open / Lowest Open Trade
