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Higher low, lower high system

  • #461
  • Aug 3, 2009 2:28am Aug 3, 2009 2:28am
GU 1 hr set up nicely with the positive close around 6759.
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  • #462
  • Aug 3, 2009 2:29am Aug 3, 2009 2:29am
1st trade gu, on the close of hourly (shown by the red line) a nice hl 5 min chart with good vol, entry 6763. Close for +85.
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  • #463
  • Aug 3, 2009 2:31am Aug 3, 2009 2:31am
2nd trade gu after the hammer in up trend exit +30 at W R1.

As I think we could hover around here for an hour or so I'm taking a break pending pre US open.
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  • #464
  • Aug 3, 2009 2:39am Aug 3, 2009 2:39am
This mornings pa is a classic example of what this simple system can do. Eu did set up on hourly, lh trade off 5 min didn't work but the loss was small.

GU also had similar hourly set up for sell but there was no lh on 5 min so no trade. Then the positive hourly close around 6759 coincided with a hl on 5 min and that gave trades that far out weighed the small eu losing trade.
  • #465
  • Aug 4, 2009 10:31pm Aug 4, 2009 10:31pm
Hey Vantage,

Just so that you don't think you are the only one reading and updating this topic, I'm a follower of this method as well. Actually, I have been trading pullbacks using the Stoch 5-3-3 oscillator on the hourly and 5min charts, and have decided to use HL or LH to further filter my entries.

I will post a more detailed explanation of how I trade when I find time.

For now, there was a nice trade on the eu this morning around 5:45GMT (7:45 Cyprus time). LH on the Daily and Hourly charts, and a pullback with a crossover of the Stoch 5-3-3 on the 5min chart. Entry around 1.4403, with a s/l of 20 pips.

What do you think?
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  • #466
  • Edited 2:34am Aug 5, 2009 12:58am | Edited 2:34am
This was before I get to the computer, still sleeping/getting ready. Nice trade 4xtradercy. Keep 'em coming.

I've shown what I consider nice opportunities based on pa/candles. The one on left has a green shooting star then a small lower close candle right on the yellow line which is 38% off y's high. I'd have looked to sell the break below those lows.

The middle trade again has a green shooting star and needs a couple of candles to confirm the lower high.

The 3rd has a spinning top with the lower close for an evening star pattern.
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  • #467
  • Aug 5, 2009 2:15am Aug 5, 2009 2:15am
It seemed to be turning into a frustrating morning like yesterday.

After the 1 hr positive close we were looking for buys. We had 2 go nowhere, basically BE trades and the 3rd attempt was a winner. Price ultimately stopping at y's high around 1.7005.

In all likelihood I'll be out for an hour or so pending pre US open.
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  • #468
  • Aug 5, 2009 2:32am Aug 5, 2009 2:32am
Quoting 4xtradercy
Hey Vantage,

Just so that you don't think you are the only one reading and updating this topic, I'm a follower of this method as well. Actually, I have been trading pullbacks using the Stoch 5-3-3 oscillator on the hourly and 5min charts, and have decided to use HL or LH to further filter my entries.

I will post a more detailed explanation of how I trade when I find time.

For now, there was a nice trade on the eu this morning around 5:45GMT (7:45 Cyprus time). LH on the Daily and Hourly charts, and a pullback with a crossover of the Stoch...
Oh 4xtradercy forgot to add earlier whilst lining up 2 indi's on different time frames is a solid way to go and will give you many good trades they will lag in many instances.

If this works well for you go for it but I would suggest having a good look at getting as much knowledge as possible on candles. Theres actually superb candle info on the trade using vsa thread by Shamus http://www.forexfactory.com/t/157629...nalysis-1.html and if you happen to pick up some vsa knowledge then darn so be it!! See the various attachments on page 1 of that thread.

You'll then get 1 hr set up candles in many instances earlier than a stoch cross. All the best on your trading, feel free to post here whichever way you decide to go.
  • #469
  • Aug 5, 2009 6:56am Aug 5, 2009 6:56am
Hey Vantage,

I'll have a look at the link you provided. To be honest, so far I was using the Stoch crossover in the direction of the trend (whatever way you use to calculate it) to enter. This HL and LH method opens up a new can of possibilities for me, which I am exploring.

The issue of course is potentially many whipsaws. There are a lot of LH and HL out there, how do you choose the "right ones"?

Case in point, we now have a LH on the Hourly and LH on the 5min. A good setup in other words. Let's see how it will work out... (of course, we are in a range, so it might just keep going sideways)

By the way, what's your view on using the daily as a filter. For example, if there is a LH on the daily, you are only looking for shorts - ie you wait for a LH on the hourly and then take the entry off the 5min.

Your views please. Oh, and keep up the good work!
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  • #470
  • Aug 5, 2009 1:17pm Aug 5, 2009 1:17pm
Seems I chose the worst day to post my charts above. Have been oscillating up and down for the whole day, getting signals and not going anywhere...

Vantage, how do you deal with sideways days? Of course, you don't know in advance a trade will turn back and whipsaw you...

Do you tend to move your stops to b/e after a certain move of the instrument? Do you rush to take profits .. but then exit too early on those days when the market is trending? Or do you just keep your stops where they are, accept that whipsaws are part of the game and more than make up for them on trend days?
  • #471
  • Edited 2:12am Aug 6, 2009 1:55am | Edited 2:12am
Quoting 4xtradercy
Hey Vantage,

I'll have a look at the link you provided. To be honest, so far I was using the Stoch crossover in the direction of the trend (whatever way you use to calculate it) to enter. This HL and LH method opens up a new can of possibilities for me, which I am exploring.

The issue of course is potentially many whipsaws. There are a lot of LH and HL out there, how do you choose the "right ones"?

Case in point, we now have a LH on the Hourly and LH on the 5min. A good setup in other words. Let's see how it will work out... (of course,...
Firstly I'll follow the 1 hr and try and get the best 1 hr candle from the 3 currencies we watch. Also its time of day, and the mid morning US session that you've shown I tend to stay away from, it can be very choppy.

There are certain times of day that things happen, like Frankies open (see psych levels pivots and trend line thread Islanders post) where we'll look to trade bounces from key levels.

If its too choppy we'll either leave or wait for the right candle on 5 min i.e. if selling a shooting star or a lower close with no or virtually no lower wick. If buying a hammer or higher close with no or virtually no upper wick. Of course price must carry on for that 1 pip to enter.

We don't filter trades from daily but if we are running daily and hourly together in same direction then great.

Have a look at this ej chart, I've got in hourly period's shown. The vertical line to left of A is after the close of an hourly candle, see the 1 hr red hammer wick at 136.58.

On the 5 min A is the 1st HL AFTER THE HOURLY CLOSE. B is choppy and difficult to trade. C is a nice HL with virtually no upper wick on the green closed candle. D is a nice hammer with little/no upper wick.

Compare this style to your chart, which candles look good to enter. Lastly if the HL/LH's looks ugly then the trade probably will be. So in doubt let it pass.
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  • #472
  • Aug 6, 2009 2:05am Aug 6, 2009 2:05am
Quoting 4xtradercy
Seems I chose the worst day to post my charts above. Have been oscillating up and down for the whole day, getting signals and not going anywhere...

Vantage, how do you deal with sideways days? Of course, you don't know in advance a trade will turn back and whipsaw you...

Do you tend to move your stops to b/e after a certain move of the instrument? Do you rush to take profits .. but then exit too early on those days when the market is trending? Or do you just keep your stops where they are, accept that whipsaws are part of the game and more than...
See post 467. If I believe in the move but worried it may fail I'll exit with BE/small loss/small profit but looking to get in again. The trade that did go had, on 1 hr, a positive close followed by a nice hammer. It took 2 hours for it to finally go. When we had the 2nd hourly close we were pretty convinced a successful trade was coming.

Once I'm in its time of day, Fankies hour prior to London open 20 pips or so and I'll exit. London I'll look to bank at key levels (hopefully) 30 pips and more.
  • #473
  • Aug 6, 2009 2:08am Aug 6, 2009 2:08am
This is last trade before the UK/Eur int rates (no doubt why trading largely disappointing this UK session).

Have a look at the ej hourly close highlighted and compare that to the eur and gbp candles. Eur and gbp had upper wicks, no comparison ej was the choice and that trade gave a quick 30 odd pips.
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  • #474
  • Edited 5:17am Aug 12, 2009 5:04am | Edited 5:17am
I sometimes forget to post here.

Trades I took and trades missed.

Took - EJ 1 hr the fall to y's low had little (no demand) follow through up, then early Asia saw a fall to S1 then again no demand, with a shooting star close on S1 was just looking for sells. Got 42 pips in the fall to 134.50, we were looking for some kind of retracement which happened but by then internet was stuffed so we missed the fall from 134.50 after the nice shooting star. For that reason (slow/no internet connection) I never got in the buys either.
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  • #475
  • Aug 12, 2009 5:11am Aug 12, 2009 5:11am
Trades missed GU. Normally the 1 hr lower close in a down trend would be looking to sell, there was a shooting star on 5 min the candle after the 1 hr close highlighted. Thought a little too much and convinced myself that the monthly pivot 6475 was an issue.

Well done missed opportunity 7927, OK at least there was ej today.
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  • #476
  • Aug 12, 2009 5:20am Aug 12, 2009 5:20am
As a matter of interest since I have (again) left indi's, as this thread started out, the trading performance has improved. A basic vsa knowledge has I believe also helped.
  • #477
  • Aug 26, 2009 7:36am Aug 26, 2009 7:36am
Haven't posted for a while, the red lines show trades taken.

In Frankies hour and before we look to bank profits as the runs are often small. I'm trying to let run a little longer after LO.

The arrows come from the smc4scalpersignals v1 that is used on several forums here. I don't use to trade off but they do give audible alerts during a candle and are of use as a heads up for possible hl/lh trades. If its not a hl/lh in the candle where the signal comes then it may follow soon.

Trading hl/lh is the back bone of this method and will remain as such.

The smc4 settings are period avg 8, trix period 3, mode average 1 2 and 3 are all set at 1.
Attached Image (click to enlarge)
Click to Enlarge Name: gu 5 b.gif Size: 28 KB
Attached File(s)
File Type: ex4 smC4Scalper Signals_v1.ex4   12 KB | 422 downloads
  • #478
  • Aug 26, 2009 1:24pm Aug 26, 2009 1:24pm
hey Vantage,

Thanks for the indicator, I will check it out.

I noticed you were mostly taking short trades today. Can you explain your logic please?

Was it because the hourly was also making LH s?

I'm having a bit of trouble deciding which direction of the LH or HL to take, to be honest.... Today's e/u session was a bit of a mess, started bullish, then turned down...

Awaiting your thoughts

Edit:
how do you make the Moving Average appear, by the way?
  • #479
  • Aug 26, 2009 11:28pm Aug 26, 2009 11:28pm
Quoting 4xtradercy
hey Vantage,

Thanks for the indicator, I will check it out.

I noticed you were mostly taking short trades today. Can you explain your logic please?

Was it because the hourly was also making LH s?

I'm having a bit of trouble deciding which direction of the LH or HL to take, to be honest.... Today's e/u session was a bit of a mess, started bullish, then turned down...

Awaiting your thoughts

Edit:
how do you make the Moving Average appear, by the way?
Follow the 1hr BUT if there is a close within previous range at a proven level of supp/res it can obviously turn there. See gu 1hr yesterday 26th its bouncing off 6312-ish but cannot break above 6346-ish the M M2 which was supp on 25th (res becomes supp and vice versa).

We did take a buy pre Frankies hour then at the upper res had a lower high sell. Then the last trade was a very weak move up for a nice lower high and the prev 1 hr candle was down. LH + red 1 hr = sell.

The MA is a LWMA on close, this one also is nice enough to change colour, attached with setting 8, 3, 6.

So all I can do is say follow 1hr but be careful at proven supp/res areas as it can obviously turn. Look at PA at these levels is it rejecting key level or following through. If its following through I don't like break out trades and prefer to see the break, retracement and then an entry.
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Attached File(s)
File Type: ex4 MA in Color_wAppliedPrice.ex4   5 KB | 303 downloads
  • #480
  • Edited 1:24am Aug 30, 2009 1:00am | Edited 1:24am
Whilst monthly still has a day to run if we close lower on Monday there could be more downside. The area where we turned is clear enough. Weekly has closed on some previous lows, should we go lower we could try for W's previous lows of around 1.60. Could be some resistence around 6150 Wed/Thur lows first. Daily has a nice shooting star in downtrend. These would be the first targets.
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