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Higher low, lower high system

  • #501
  • Nov 4, 2009 5:32am Nov 4, 2009 5:32am
Not posted for a while not sure if theres much interest but what the heck.

Just a picture perfect set up for this system. EJ daily had an obvious problem over the last few days with 62% fib. Coming into today 4 hr 4am candle shown has a positive close. Hourly has a higher low move above the ema all positive closes so theres really only 1 direction to think about.

5 min shows 5 possible trades. The 1st I missed around 133.12 too late at computer. 2 perfect hl's followed for +12 and +45. The next trade marked with an x never followed through so no entry. 3rd trade exited +17.

A great morning traded at low risk.

On a break until after US news.
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  • #502
  • Nov 5, 2009 4:53am Nov 5, 2009 4:53am
Some nice trades today.

EJ lower high reject of the (purple) pivot at 134.34, exit +30 when move below 134 was failing.

A couple of gbp trades, after a positive close 1 hr candle 9am, a buy at 6510 after the higher low blue up arrow entry off 1 min chart. The second trade was after the hl hammer entry as shown on the attached chart.

Another good morning.
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  • #503
  • Nov 16, 2009 2:18am Nov 16, 2009 2:18am
Thank Vantage for the great system.

I have read this thread from beginning. But still having hard time to figure out how you use the VSA in the system...

Can you explain?

oh and also... so far i seen the pattern indicator...

if there are 2 PL (Piercing Line) consecutively in EU and EJ pair in H1 Timeframe its a good sign to entry (Buy) after the 2nd PL.

coz its a good signal especially when i check the history.

anyone else can check on this?
  • #504
  • Nov 16, 2009 2:44am Nov 16, 2009 2:44am
Quoting eskelapa-forex
Thank Vantage for the great system.

I have read this thread from beginning. But still having hard time to figure out how you use the VSA in the system...

Can you explain?

oh and also... so far i seen the pattern indicator...

if there are 2 PL (Piercing Line) consecutively in EU and EJ pair in H1 Timeframe its a good sign to entry (Buy) after the 2nd PL.

coz its a good signal especially when i check the history.

anyone else can check on this?
My volume knowledge is not strong so I would definitely suggest looking at the vsa thread by Shamus Famous. Basically the little vsa knowledge I have gave me a better understanding of candles, following through after a candle/vsa and the story adding up.

For example the 15 min chart attached. We have been moving up, see before the red highlighted candle. A lower close around 6707 with vol falling off, then the green shooting star (highlighted) with lower vol again. The red close candle had no follow through and vol falling off, not exactly suggesting a fall. So when price moved up you might have confidence to buy. You would need to get some vsa knowledge as mentioned.

After the first piercing line pattern should normally be a good signal to buy next higher low. After that if you get good signals then carry on buying. Obviously though the further price goes a decent retrace along the way can be expected.
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  • #505
  • Nov 16, 2009 6:43am Nov 16, 2009 6:43am
4hr trendline was rejected, morning all down but I had computer problems and missed out. We are now testing TL again.

1hr had a nice lower close but has lower wicks at the weekly pivot 6674.

Price was struggling to go lower, 5 min shows each lower low only makes it with a few pips until finally a higher low at the weekly pivot/psych level 6675.

15 min vol shows a shooting star then a red close, lower vol and no follow through.

Buy at 1.6784.

Out now whilst we hover around the 4 hr tl.
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  • #506
  • Nov 18, 2009 10:22am Nov 18, 2009 10:22am
Quoting Vantage
4hr trendline was rejected, morning all down but I had computer problems and missed out. We are now testing TL again.

1hr had a nice lower close but has lower wicks at the weekly pivot 6674.

Price was struggling to go lower, 5 min shows each lower low only makes it with a few pips until finally a higher low at the weekly pivot/psych level 6675.

15 min vol shows a shooting star then a red close, lower vol and no follow through.

Buy at 1.6784.

Out now whilst we hover around the 4 hr tl.
What indicator you are using in your chart ? is it moving average?
  • #507
  • Nov 19, 2009 12:01am Nov 19, 2009 12:01am
Quoting Hem
What indicator you are using in your chart ? is it moving average?
4hr has auto drawn DeMark trend lines.
5 min has smcscalper candles audible alert that often are around higher lows and lower highs, also a ma that changes colour up down mine set 8,3,6 which is a linear weighted ma.
1hr has an ema pick what you like, 13-21, any reasonable ma will approximate rsi in that if price is above the ema rsi will be above 50, below the ema rsi below 50. The pivots are from 1st post.
15 min has better vol on, I struggled with vol on 5 min, too much conflicting info for me.
Attached File(s)
File Type: ex4 DeMark lines.ex4   25 KB | 494 downloads
File Type: ex4 smC4Scalper Signals_v1.ex4   12 KB | 607 downloads
File Type: ex4 MA in Color_wAppliedPrice.ex4   5 KB | 433 downloads
File Type: ex4 BetterVolume 1.4.ex4   6 KB | 419 downloads
  • #508
  • Nov 19, 2009 9:41am Nov 19, 2009 9:41am
Quoting Vantage
4hr has auto drawn DeMark trend lines.
5 min has smcscalper candles audible alert that often are around higher lows and lower highs, also a ma that changes colour up down mine set 8,3,6 which is a linear weighted ma.
1hr has an ema pick what you like, 13-21, any reasonable ma will approximate rsi in that if price is above the ema rsi will be above 50, below the ema rsi below 50. The pivots are from 1st post.
15 min has better vol on, I struggled with vol on 5 min, too much conflicting info for me.
Thanks Vantage......
  • #509
  • Jan 12, 2010 6:52am Jan 12, 2010 6:52am
I have been asked if I'll start posting these set ups again.

Todays 1 hr.

5 min chart coming.
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  • #510
  • Jan 12, 2010 7:07am Jan 12, 2010 7:07am
1 higher low. Close of 1 hr candle marked 7.55. Doesn't seem like a higher low from this chart but it was. 1hr pre Franies open had a small positive close and a small hammer. Price went up to D pivot, 25 psych area and stalled.

2 lower high. Counter to 1 hr but 15 min had a nice shooting star, a classic reversal candle. Following this 5 min shooting star was a lower high. Price came down to 6080 areas its previous lows and struggled.

3 higher low. We are now back to following the positive close on 1 hr, it was a fairly large candle which we were a little wary of and exited at BE.

PA became fairly choppy so we had breakfast late (beans on toast).

4 Higher low. 1hr had a nice hammer on stronger volume, exited way too early on this one when it looked like 6125 wouldn't even get hit. No worries.

5 higher low. A nice reject of move down to 6125 D pivot area. I didn't take this one.
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  • #511
  • Jan 21, 2010 7:50am Jan 21, 2010 7:50am
Came across Joe Ross in the commercial section. Have a look at the Traders Trick Entry free ebook that he has made available. It does give good detail on trading 1,2,3 formations which of course are HL/LH's at the end of moves.
  • #512
  • Jan 21, 2010 7:53am Jan 21, 2010 7:53am
I have been hanging out and posting where I can at the Islander and Medici trade the Euro open http://www.forexfactory.com/showthread.php?t=214628 they do HL/LH trades also.
  • #513
  • Jan 22, 2010 8:54am Jan 22, 2010 8:54am
Great thread Vantage, you make it look so easy. I have a question on the attached charts if this is a trade you would have taken.

The first chart is the 1 hour chart showing that the last 3 hours have been down candles, so I'm thinking look for LH's to short. Plus price is below the HAMA, not sure if you still look at that or not.

Then on the second chart which is the 5 min chart, the arrow is the LH that I decided to short. What I liked about the LH was that price was bouncing off the S1 level and it closed below the 8 LWMA.

There were a few things I didn't like about it however. Price was right at the round number, the last hour's candle was still down but not as strong as the previous hours and price had already moved down almost 200 pips today so it might start to correct.

I still took the trade based on the above thoughts I had and I was stopped out for -15. So I was wondering what your thoughts are on if this was just a losing trade or one I never should have took.

Thanks for the thread, still need to read it again as I've only been trading this way for the past 2 weeks and so far haven't been doing that well with it. I started a journal a couple days ago to track my progress with it, still need to practice a lot more, obviously.

trublu

PS. Do you trade NY session as well? It frustrates me when I wake up and see good trends during London session and then NY doesn't seem to trend as well some days.
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  • #514
  • Edited 9:24am Jan 22, 2010 9:20am | Edited 9:24am
Quoting trublu
The first chart is the 1 hour chart showing that the last 3 hours have been down candles, so I'm thinking look for LH's to short. Plus price is below the HAMA, not sure if you still look at that or not.

Then on the second chart which is the 5 min chart, the arrow is the LH that I decided to short. What I liked about the LH was that price was bouncing off the S1 level and it closed below the 8 LWMA.

There were a few things I didn't like about it however. Price was right at the round number, the last hour's candle was still down but not as strong...
Hi trublu

I have 21 ema on 1 hr thats the same as the hama.

You are exactly right to have considered the trade but the concerns listed are completely valid ie massive run already and right on the even number.

Having taken the trade you'd need to consider that GU can easily run 15 pips below the even number and bounce, it does that regularly, also I have W S 1 there at 6086 another very good reason for a bounce considering the length of the run.

Any time there is a run that long you need to be scalping 10-15 pips whatever and get out at those key points. I definitely would not be letting +10-ish go to -15 when price has run anywhere from say 125 pips and up and is hitting a key level.

So finally not even oak trees go to the sky is a phrase I once heard so as I said anytime after 125+ pip runs you can still trade but you need to be very nimble in and out. Be aware of +- 15 pips above/below even numbers as turn points and watch out for W and M pivots after strong runs.

I use the pivot points multitime frame for W and M pivots. Would strongly suggest you add as target levels for end of runs. Also consider the 25 and 75 levels for GU she loves those.

I only would consider trading until now ie around the London close US open overlap. Stick with system you only have to look at the attached charts to see number of possibilities. How would you feel about getting up 4am est?

Don't trade with real money until you are comfortable.

I hope I've covered everything.
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  • #515
  • Jan 22, 2010 9:32am Jan 22, 2010 9:32am
Trublu this is how my 1hr looks. RSI just for divergence.

I have sdx sweetspot indi on 15, 5 and 1 min charts in addition to all the info on 1hr for the 25/75 psych levels. See Islanders thread link on post 1.

The white lines are from market profile indi and show areas of highest volume. You can see how they worked well as supp'rest areas in earlier trade. See vsa thread link also post 1.
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  • #516
  • Edited 9:39am Jan 22, 2010 9:37am | Edited 9:39am
Quoting Vantage
Hi trublu

I have 21 ema on 1 hr thats the same as the hama.

You are exactly right to have considered the trade but the concerns listed are completely valid ie massive run already and right on the even number.
Thank you for your quick response Vantage and yes you covered all my questions. I'll add on the W and M pivot levels and watch the levels you talked about.

I've thought about waking up earlier to trade some of the London session, I will try to do it next week and see how it goes. Also I do stop at London close usually unless the market is still trending nicely which doesn't happen often. Maybe I can take a nap right at London close if I'm waking up earlier, I'll figure it out.

I am trading a live account now but it's a free $50 account I got for opening an account so it's basically free money that I'm treating as demo but working on my psychology by trading live money.

Just saw your last post, thanks for the more info to look at. I've seen plenty of Islander's charts on the psych lines thread and still keep reading over them to figure out how he does it. Thanks for the vsa info, it's something I've never really thought about. Looks like I've got some good weekend reading ahead of me.

trublu
  • #517
  • Jan 22, 2010 9:45am Jan 22, 2010 9:45am
Quoting trublu
Thank you for your quick response Vantage and yes you covered all my questions. I'll add on the W and M pivot levels and watch the levels you talked about.

I've thought about waking up earlier to trade some of the London session, I will try to do it next week and see how it goes. Also I do stop at London close usually unless the market is still trending nicely which doesn't happen often. Maybe I can take a nap right at London close if I'm waking up earlier, I'll figure it out.

I am trading a live account now but it's a free $50 account I got...
OK thats fine.

Just want to stress once again, as far as I'm concerned once a long run has happened you can still trade lh/hl's but you have to get in and out.

You can consider exiting key levels and buying there for bounces up but thats a different story.

The top of last lower high just got taken out so be careful.

I hate using the phrase 'to the pip' but sometimes its just plain wierd. Price hit 6086 pivot/psych level made another bounce lower to hit 75 psych level and bounced up to 25 psych level.

At the end of long runs this kind of PA action can easily happen. The best trader I've seen do this is Islander and I'd strongly suggest checking him out.
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  • #518
  • Jan 28, 2010 2:42am Jan 28, 2010 2:42am
1hr was coming down but stopped at the 252 ema (1hr 21) with a perfect hl hammer see arrow up. The red line at 8.15 shows the 1st hl, a little too early for us.

As this was against the 1hr that was falling off we took several 1 min trades after this, the last was a buy at 6253 exiting at 75 psych level. Those trades have been posted elsewhere.

We've run up 100 pips in session and now had a dble top/lh so we are losing interest in buying.
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  • #519
  • Feb 3, 2010 9:40am Feb 3, 2010 9:40am
I have been looking for a currency strength meter for some time and this looks interesting. Whilst I've focused on a few currencies only this MAY give many more options to at least focus on the strongest v weakest currencies.

I have taken a snapshot of how it looks at the moment. For some hours now usd getting stronger with jpy, chf, eur relatively weaker. Giving you the right currencies to focus on. GBP and JPY not at extremes and that pairs been going nowhere relatively speaking. EU, UJ, UC have had very nice runs.

Download free from http://www.currencystrengthmeter.com/
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  • #520
  • Feb 3, 2010 9:43am Feb 3, 2010 9:43am
This may need its own thread we'll see how it goes and if there is any interest.
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