Higher low, lower high system

An incredible afternoon. On 1 hr chart a nice hammer and several higher lows after that as shown on 5 min.

I have to work much harder on letting trades run, I tend to target pivots/even numbers only to see trades slip through and run more.

The macd signals I'm looking for on 5 min:

Signals to buy

Saucer

This is the only signal to buy that comes when the bar chart is higher than the zero line. One must bear in mind:
§ the saucer signal is generated when the bar chart reversed its direction from the downward to upward. The second column is lower than the first one. The third column is higher than the second.
§ for the saucer signal to be generated the bar chart should have at least three columns.
Keep in mind, all columns should be over the zero line for the saucer signal to be used.

Two pikes

This is the only signal to buy that can be generated when the bar chart values are below the zero line. As regards this signal, please, bear in mind:
§ the signal is generated, when you have a pike pointing down (the lowest minimum) which is below the zero line and is followed by another down-pointing pike which is somewhat higher (a negative figure with a lesser absolute value, which is therefore closer to the zero line), than the previous down-looking pike.

Signals to sell

Signals to sell are identical to the signals to buy. The saucer signal is reversed and is below zero. The two pikes signal is higher than the zero line and is reversed too.

Using the exact same chart as earlier I've just shown the specific signals which I use with the other indicators.

I'm sure Phillip Nel's thread covers this in more detail.

GBP again massive moves in US session. Hourly has a nice engulfing candle and after signal candle it took 25 mins on 5 min chart for first hl.

The 2nd hl shown at about 1.4975 took 4 candles before the top of the 14.05 candle got taken out. You can either put in a buy stop or work same system off 1 min chart or just wait for top to clear. I favour 1 min charts once signal generated from 5 min and it doesn't carry on going immediately.

I went out and missed some more trades but got back in for a 50 pip trade, seemed like a couple of mins but probably a little longer.

Lot of spaghettti on them thar' charts, Vantage : are you really using it all ('thinking about how this thread started !) ?

How's it going with FXPro brokerage ?

Wishing you a great trading year ahead.

J.

Vantage,

Try this. Thanks to Neobine.

VBro

Yes J I am actually, I still take some hl, lh trades where all haven't quite lined up. The macd, stoch combo from force 5 works really well and as for the fozzy rsi cross I suppose old habits die hard.

Again for the indicators thats really for those that want an 'indicators' line up trade.

All the best to you as well.

Thanks to both of you.

Took this double top/slightly lh trade with Force 5 chat room. For entry I waited for the yellow dotted line to break (thats a 38 fib of yesterdays move) I exited at the confluence of long term tl (see 1 hr chart) and the even number/pivot, got 1.3599.

Chickened out of re-entry of break below pivot.

There was a clear hl buy about 1 hr 20 mins earlier, the 3 blue arrows, I was a litle late getting to computer and missed it.

J on 1 hr chart at the moment eur is negative, below 50 line on rsi, macd histo falling away and on open candle gone below waterline. So I'm thinking just sell. Here is a classic example of a potential sell on 5 min. However 5 min fozzy rsi has not crossed down, also after a 20 odd pip negative close candle macd has moved up not down. This kept me out of this trade. There will be opportunites to sell soon I'm sure.

Again hats off to forexjedi for this simple combo that works well on 5 min time frame (fozzy rsi my add on).

Great works like a charm it seems, thanks .

Thanks for the chart, Vantage.

Now that you're spending some time with forexjedi, have you reduced the number of pairs you trade ?

I only trade EURUSD, EURJPY, GBPUSD, GBPJPY, but I sometimes think there could be advanatges to trade only EURUSD, as do forexjedi and Jacko; ie. to really become familiar with all the price levels.

I have 4 screens up 1 for hourly charts of the 3 pairs I trade being eur, ej and gbp. The other 3 screens have 5 min and 1 min for each pair.

When I'm in the force chart room I focus solely on eur. If theres something I like on other currencies I stay out of room.

I'm thinking of focusing more on eur though, haven't made up my mind.

Hi Vantage. What do you have on your 1 min. charts? Same as 5 min I assume?

Same fozzy rsi, stoch and macd coloured with 5 ema 3 shift and 34 ema. As gbp and eurjpy tend to be more volatile I tend (after signal on 5 min) to use 1 min cross of 5 ema for entries. Works well.

Long time no post. As mentioned before I'm in the force 5 chat room a lot lately and I've been asked if I still trade this way. Yes definitely, along with signals from double tops/bottoms these are still my favourite bread and butter trades.

I took a sell on eurusd but that went nowhere and I got out at BE.

Saw that gbp was moving and there was a big engulfing candle on the 1 hr, red arrow. Sold the lh that followed, exited 60% at +35 in the hesitation doji and the balance at 1.4250. Didn't re enter in the following chop.

The white arrows are signals from force 5 system audio alert that Robdee has put together, (thanks Rob ) you'll find it on that thread.

Cheers
V.

'Always enjoy your posts, V.

I spent last week in the Force 5 chat and traded the method live : 4 out of 5 days positive for a reasonable week... but I am still working on strippng my charts down to the min. Just put my Fozzy version on, as I like RSI, but the thread I am reading most right now is shakesfx's remarkable journal.

Anyway, "what I learned" (to borrow a phrase from the very helpful robdee) and have brought into my trading from the Force is the use of test / retest / failures of trend lines and support / resistance as a higher probability set up for an entry.

A work in progress as always and I have done an unusually large amount of experimenting so far this year : I was doing very well during Q4 2008 with key to the mint-based trades, but I find I need to be able to trade in both directions to stay sufficiently focused. I am on a good winning streak right now, but I am breaking one of my most important rules : I am trading without a clearly written rule set (I call it the "shakesfx effect" !!!), albeit with reduced position size, so my goal this week is to define things more clearly, after which I'll post some charts / trades.

Btw, I've also been experimenting with various timeframes including tick and range bar charts... another work in progress .

J.

This could be interesting, 5 min wave analysis thread http://www.forexfactory.com/showthre...=1#post2549664 trading higher lows and lower highs with 4hr and 30 min charts as set ups.

They have a chat room so I'll also be popping in there from time to time.

Hello. I usually hang out in the Inside Bar and DIBS threads here. I noticed this thread for the first time today. My trading style is breakouts. If I am not mistaken, higher lows means uptrend and lower highs mean downtrend. I haven't read the entire thread yet, so I'll hold off on questions. Thank you.

Chart with plot of last candle's high and low so you can easily see the action.

http://i41.tinypic.com/vifxn9.gif

I look for 1hr candles as a set up and not for the higher low from them (but if I see that fine), the 8am candle highlighted is a nice +close candle. The red line on the 5 min shows the close of hourly 8am candle. An immediate higher low follows, entry in this case is just after the tops break around 4275.