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Higher low, lower high system

  • #1,241
  • Jun 5, 2010 11:48am Jun 5, 2010 11:48am
Quoting khairul81
Thank You Van.You cleared it all up.Do you take counter trends too? I have been looking at the charts on 5min and there are a lot of chances for counter trend.Though it is risky,have you ever tried it? If we follow your method using pivots and round numbers as possible retracement areas,it should work.Maybe throw in RSI to look for divergence?
Been reading a lot and Ryanmcd uses it very well for counter trend trades..

Kai
I like divergence, not using at the moment. I will take counter trend if a hl/lh at what I regard as an extreme, at an important level see trade 1 on 1st post.

Trade 2 following 1hr - yes but then we're following good 1hr candles and using that to determine our change in trend.
  • #1,242
  • Jun 5, 2010 10:05pm Jun 5, 2010 10:05pm
Quoting Vantage
I like divergence, not using at the moment. I will take counter trend if a hl/lh at what I regard as an extreme, at an important level see trade 1 on 1st post.

Trade 2 following 1hr - yes but then we're following good 1hr candles and using that to determine our change in trend.
Alright then.You have a gd method here so lets not make things complicated.haha.Post some charts soon!
  • #1,243
  • Jun 6, 2010 5:17am Jun 6, 2010 5:17am
Quoting khairul81
Alright then.You have a gd method here so lets not make things complicated.haha.Post some charts soon!
Good, looking forward to seeing some charts and trades, with brief reasons for it, so we can all benefit. A screenshot with entry shown live is always good.

If you want to add divergence onto that no problem with me (although I don't want to see this revert to a discussion thread on divergence/timeframes/diff indi's which is best for divergence).

I'd like to stick to 1hr, 15 min, 5 min please. Just as an example you might say we have 1hr divergence and give that reason for 5 min lh/hl at an extreme. My trading view has been that for divergence to confirm the 1hr candle must close and in all likelihood the 1hr close will have the right kind of candle that WILL IN ANY EVENT trigger the hl/lh trade from 5 min.

As I forgot to say welcome, welcome and all the best with your trades, cheers.
  • #1,244
  • Jun 6, 2010 8:11am Jun 6, 2010 8:11am
Hi V,been looking at some of the charts here and I realized that there are some entry that confuses me.

1-There are some trades where you enter at the break of the (lets say in an uptrend) first HL after a bounce while there are some trades where you enter at the 2nd HL at the break.

I understand that sometimes there is a pivot or a round number which would cause you to enter a little later to wait for a break of that line.

Maybe you have a chart or two explaining why there are 2 different entries.

p.s I love your method and I plan to do well hence the questions.
  • #1,245
  • Jun 6, 2010 10:01am Jun 6, 2010 10:01am
Quoting khairul81
Hi V,been looking at some of the charts here and I realized that there are some entry that confuses me.

1-There are some trades where you enter at the break of the (lets say in an uptrend) first HL after a bounce while there are some trades where you enter at the 2nd HL at the break.

I understand that sometimes there is a pivot or a round number which would cause you to enter a little later to wait for a break of that line.

Maybe you have a chart or two explaining why there are 2 different entries.

p.s I love your method and I plan to do...

Thats a tricky one, even if you referred to the chart its not likely that I'd remember why. Perhaps I didn't regard price as being at an extreme, perhaps whilst a valid hl maybe the 15 min candle was still suggesting down. Perhaps I just missed it being away from the computer.
  • #1,246
  • Jun 6, 2010 11:00am Jun 6, 2010 11:00am
haha..guess I am complicating myself by asking too many questions! so a break of the 1st HL/LH would be the Preferred way right.
  • #1,247
  • Jun 6, 2010 11:48am Jun 6, 2010 11:48am
The godfather is here!
  • #1,248
  • Jun 7, 2010 3:18am Jun 7, 2010 3:18am
Quoting khairul81
The godfather is here!
???
  • #1,249
  • Jun 7, 2010 3:20am Jun 7, 2010 3:20am
Quoting Vantage
???
I think he considers you some sort of FX guru. I'm sure you're overjoyed...
  • #1,250
  • Jun 7, 2010 3:23am Jun 7, 2010 3:23am
Not the best start to the week.

Sold this ej lh after low of doji broke. Went below the even number moved stop to +10 where it took us out.

1hr closed as a shooting star, 15 min a hammer. Sold the lh below 109 that was failure of hammer low. Out -23.
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  • #1,251
  • Jun 7, 2010 3:30am Jun 7, 2010 3:30am
Quoting Vantage
Not the best start to the week.

Sold this ej lh after low of doji broke. Went below the even number moved stop to +10 where it took us out.

1hr closed as a shooting star, 15 min a hammer. Sold the lh below 109 that was failure of hammer low. Out -23.
Didn't take the first one because that 15min candle closed so strongly. Guess that didn't bother you when the 15min shooting star didn't follow through and had a bullish close immediately afterwards?

Exact same on that more recent EJ trade. Looked like it was going to go, then suddenly shot the other way. Full loss.
  • #1,252
  • Jun 7, 2010 3:47am Jun 7, 2010 3:47am
Quoting Auron112
Didn't take the first one because that 15min candle closed so strongly. Guess that didn't bother you when the 15min shooting star didn't follow through and had a bullish close immediately afterwards?

Exact same on that more recent EJ trade. Looked like it was going to go, then suddenly shot the other way. Full loss.
The 15 min shooting star prior to first trade was good vol, the push up then closed pos but lower vol and it couldn't break the days open, Y low combo. That couple with the weakness shown last Fri plus the 5 min doji was enough for us.

Mrs V has questioned whether we should be looking at trading failure of candle lows in direction of major trend, OK this one lost but they're normally good trades. She is perhaps suggesting we stick to the right candles in direction of trade. Specifically that ej losing trade kept us out of the 15 min hammer 1 min hl that followed.
  • #1,253
  • Jun 7, 2010 3:51am Jun 7, 2010 3:51am
Morning all,
stubbed toes all round then. I took a short the same time on GU, but had the stop set to -12. Taken out at the exact high of the move, all within the same minute, sigh..... Trade was against the 60 min positive close of the previous hourly bar, but trigger was a break of a 2 bar low on the 15 min, starting a new 15 min down swing.
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  • #1,254
  • Jun 7, 2010 4:28am Jun 7, 2010 4:28am
I went long on EJ at 0815GMT (looked like a good system trade) but went out at +10 because I feared for a bounce off of the day's open. In the end it retraced & continued to rise!

Steve
  • #1,255
  • Jun 7, 2010 4:39am Jun 7, 2010 4:39am
Interesting volume clusters on the weeklies recently.
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  • #1,256
  • Jun 7, 2010 4:40am Jun 7, 2010 4:40am
Quoting zhdeef
I went long on EJ at 0815GMT (looked like a good system trade) but went out at +10 because I feared for a bounce off of the day's open. In the end it retraced & continued to rise!

Steve
You should post a chart. If you're using MetaTrader you can click on File in the upper left and Save As Picture. Put some arrows on there so we know what area you're talking about.
  • #1,257
  • Jun 7, 2010 5:03am Jun 7, 2010 5:03am
Quoting Auron112
You should post a chart. If you're using MetaTrader you can click on File in the upper left and Save As Picture. Put some arrows on there so we know what area you're talking about.
I don't have Metatrader but here's my chart. The trade was over within the 5 mins of the 0815GMT bar. I should have stayed in though.

Steve
Attached Image (click to enlarge)
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  • #1,258
  • Jun 7, 2010 5:23am Jun 7, 2010 5:23am
Now that the EJ is rising strongly, how can we get on board? I looked at the M1 chart but not much opportunity because I understand that the M1 entry candle should have no upper shadow.

Steve

NB One no upper shadow M1 just happened (1018GMT) while I was typing!
  • #1,259
  • Jun 7, 2010 5:29am Jun 7, 2010 5:29am
Quoting zhdeef
I don't have Metatrader but here's my chart. The trade was over within the 5 mins of the 0815GMT bar. I should have stayed in though.

Steve
Yeah, this was a tough one. Glad you got some pips out of it. I liked the way it looked (as in, strong bar closes on 5min) and the 15 min hammer was nice. Thought it held a bit too much risk for me though with the hourly candle and the LH and LL that had formed on the 5min chart. Because of that, if I had taken it I wouldn't have been looking for a large target. In fact, I would have aimed for the swing high, yest low as well as a first target and would have exited at first sign of trouble. You at least had a pretty good chance of hitting that area.

Just my observations, but I think you did a pretty good job with the quicker exit here. It's easy to beat yourself up when they take off like that, but when you're fighting a number of different elements on the chart sometimes it's a good idea just to take your pips at the first trouble area and run, in my opinion.
  • #1,260
  • Jun 7, 2010 5:33am Jun 7, 2010 5:33am
Quoting zhdeef
Now that the EJ is rising strongly, how can we get on board? I looked at the M1 chart but not much opportunity because I understand that the M1 entry candle should have no upper shadow.

Steve

NB One no upper shadow M1 just happened (1018GMT) while I was typing!
Again, just my opinion, but I wouldn't look too hard to jump on this trend from the 1min right now. It's gone a long ways without any real retracement on the 5min and 15min, so you know it's a higher probability of coming soon. As Vantage would say, it's different if you've been in each wave from the bottom and are up 70pips to risk 18-20, but trying to get in a move like this late is going to be a bit risky. Of course, it could keep going (and there's not a lot of nearby resistance to stop it) so if you're going to try just be careful and wait for the first moderate retracement and a 1min candle with a very strong close crossing the 1min LWMA that's not running into a major level.
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