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Higher low, lower high system

  • #2,021
  • Aug 3, 2010 7:43am Aug 3, 2010 7:43am
The charts didn't come out so I'll try and find and post some.
  • #2,022
  • Aug 3, 2010 7:53am Aug 3, 2010 7:53am
Quoting Vantage
Mmmh cannot remember what we have posted on 2b entries but this says its a variation of 1 2 3 reversals. That is a variation of hl/lh's.

2b reversal.

"In an uptrend, if prices penetrate the previous high but fail to carry through and immediately drop below the previous high, the trend is apt to reverse. The converse is true for downtrends."
[Vic Sperandeo in "Trader Vic: Methods of a Wall Street Master"]
[font=Georgia]The 2B principle gets its power from the large number of stop-loss orders...
2b top. Seems to be regarded as a 1 2 3 variation so I think its OK to post here despite the threads name.
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  • #2,023
  • Aug 3, 2010 8:19am Aug 3, 2010 8:19am
That's spot on, me old mate. Thanks a lot.
  • #2,024
  • Edited 8:04am Aug 4, 2010 1:34am | Edited 8:04am
I suspect this is out early but the +20 auto bank (Mrs V) indi was doing a FH special. 2 1hr hammers, 15 min hammer, higher low at the 75 level. Out +20.

Oh we moved stop to BE fairly early as 92 area was an obvious potential turn point to keep lower highs going.
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  • #2,025
  • Aug 4, 2010 1:56am Aug 4, 2010 1:56am
Quoting Vantage
I suspect this is out early but the +20 auto bank (Mrs V) indi was doing a FH special. 2 1hr hammers, 15 min hammer, higher low at the 75 level. Out +20.

Oh we moved stop to BE fairly early as 92 area was an obvious potential turn point to keep lower highs going.
Took that also, 112.7 was Mondays low so I was looking for the bounce / reversal, I was hoping for a test of Tuesdays low 113.10

Your thread has transformed my trading, I never realised the importance of Pre FO, FO or LO.

Thanks again Dave
  • #2,026
  • Edited 2:13am Aug 4, 2010 2:01am | Edited 2:13am
Quoting jag1966
Took that also, 112.7 was Mondays low so I was looking for the bounce / reversal, I was hoping for a test of Tuesdays low 113.10

Your thread has transformed my trading, I never realised the importance of Pre FO, FO or LO.

Thanks again Dave
Really happy for you that its helped. In turn thanks go to Islander, cheers mate.

15 min vol. Don't post that many 15 min charts but this is what helped the buy, in addition to the 2 x 1hr hammers. 15 min shooting star arrow down on lower vol suggesting that sellers losing interest. 15 min hammer on increasing vol at the 75 area where price has struggled.

Oh and I know that the vsa expert Malcolmb does not like fxpro vol I have compared LOADS of my charts to his and they are indeed very close. Other than that Malcb is tops.
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  • #2,027
  • Edited 8:58am Aug 5, 2010 1:46am | Edited 8:58am
Had a -12 buy above 5900, looking again at 15 min upper wicks that preceeded it, that was a stupid stupid trade.

That has been somewhat rectified with this sell. FH had not done anywhere near its typical range with this lh at 5884 the days open. We know this is FH reversal time but we took trade because of solid 30 min close on DO with no lower wick. The 1 min pa that happened was clear to us that DO was not being supported. Out at 50 level for 32. A good range has now been achieved for FH.
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  • #2,028
  • Aug 5, 2010 1:56am Aug 5, 2010 1:56am
The red line shows the close of 30/15 min candles that both had little/no lower wicks. You can consider for yourselves whether this pa is likely to be that of a level being defended (the days open at 5884).
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  • #2,029
  • Aug 5, 2010 4:42am Aug 5, 2010 4:42am
A friend and I traded these moves together this morning Dave.

We are using your M5 reversal combined with 2bs and H1 support and resistance.

I liked EJ off 113.10 Tuesdays low, the 61.8 fib from yesterdays high to low and the big 113.00 number. Pure price action trading.

What you have done here is priceless.

Really thinking about what the big boys are trying to do at those hourly closes is critical.
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  • #2,030
  • Aug 5, 2010 5:10am Aug 5, 2010 5:10am
Quoting jag1966
A friend and I traded these moves together this morning Dave.

We are using your M5 reversal combined with 2bs and H1 support and resistance.

I liked EJ off 113.10 Tuesdays low, the 61.8 fib from yesterdays high to low and the big 113.00 number. Pure price action trading.

What you have done here is priceless.

Really thinking about what the big boys are trying to do at those hourly closes is critical.
I have added the 30 min chart to those that I watch. The 1hr doesn't show some turns, heres the ej 1 hr and 30 min. The 30 min shows a nice hammer and doji, for a move up from 113. This is difficult to spot on the 1hr alone. You only have the wick failing the prev low, the 30 min is much clearer.
This 30 min has fave 8 lwma and prev day HL + days open.

Ignore the macd and rsi looking at that for other reasons.
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  • #2,031
  • Aug 5, 2010 5:38am Aug 5, 2010 5:38am
Quoting Vantage
I have added the 30 min chart to those that I watch. The 1hr doesn't show some turns, heres the ej 1 hr and 30 min. The 30 min shows a nice hammer and doji, for a move up from 113. This is difficult to spot on the 1hr alone. You only have the wick failing the prev low, the 30 min is much clearer.
This 30 min has fave 8 lwma and prev day HL + days open.

Ignore the macd and rsi looking at that for other reasons.
I don't think I've ever seen someone with as consistently profitable of a trading methodology who makes so many changes to it.
  • #2,032
  • Aug 5, 2010 5:55am Aug 5, 2010 5:55am
Quoting Auron112
I don't think I've ever seen someone with as consistently profitable of a trading methodology who makes so many changes to it.
Sign of a good trader, don't you think, to have an open mind and always learn and develop?
  • #2,033
  • Aug 5, 2010 6:06am Aug 5, 2010 6:06am
Quoting medici
Sign of a good trader, don't you think, to have an open mind and always learn and develop?
I cannot believe how exciting this stuff continues to be. Just when you think you pretty much have a good method in place something else pops up to make it even better.

Anything that gives you more confidence and reduces stress when you pull the trigger is all good.
  • #2,034
  • Aug 5, 2010 6:18am Aug 5, 2010 6:18am
Quoting Auron112
I don't think I've ever seen someone with as consistently profitable of a trading methodology who makes so many changes to it.
Whatever tweaks will help with decisions whilst the basics stay the same ie 5 min hl/lhs (with 2b variation).

It may mean fewer trades we'll see, well I mean from 3-5 a day to more like currently, as fewer than current trades would mean I'm not.

15 min on that ej move had 2 hammers suggesting up. So adding 30 min chart would just help that trade be seen a little clearer. If it doesn't work/add value I'll drop.
  • #2,035
  • Aug 5, 2010 6:21am Aug 5, 2010 6:21am
Quoting jag1966
Anything that gives you more confidence and reduces stress when you pull the trigger is all good.
I'll second that thought.

Auron I'm sure did not mean anything bad, we go back a long way. What is amazing though is recently my profits have been lower. I've made my peace with that but will continue to work on those issues.
  • #2,036
  • Edited 8:02am Aug 5, 2010 6:54am | Edited 8:02am
Quoting Auron112
I don't think I've ever seen someone with as consistently profitable of a trading methodology who makes so many changes to it.
I took your comments as a positive too. Tweaks and changes are good.

I started earlier than usual this morning at just before 5am because it occured to me that it would give me a longer run (2 hours) til FO at 7am.

I was hoping that the EJ I took at 5.15am would hit target at 113.55 before a possible reversal at FO. I decided the best way to trade it would be 1-1 RR and managed to get three trades by taking profits and re-entering using the 1 minute tf.

No stress at all, 1% risk per trade, pretty sure of direction until FO, tiny stops. Set stops and TPs then just time enough to make a few cups of tea between trades.

Three trades, three winners and 3% before 7am. It just keeps getting better and better.

P.S. I would like to add that finding Vantages thread and applying his HL / LH m5 entries along with only trading the three or four hours around London open has totally transformed my trading. Before that I was trading a trend anlysis method using price action at support and resistance on the m15, H1 and H4 timeframes. It meant spending hours studying charts and making sure everything was lined up on all three timeframes, hard work and if you got it wrong and had a loser pretty stressful.

With this method there is no stress, the trades are generally over within an hour (sooner if you get it wrong ), get a loser, so what there will be plenty more opps tomorrow. Best of all the days work is over before most people have had their mid morning tea break.

Cheers Dave
  • #2,037
  • Aug 5, 2010 8:23am Aug 5, 2010 8:23am
Hi guys heres an example of the 30min helping you decide on a trade the hour looked a bit more bullish then bearish like you trade earlier V it only had a bit of a wick. The 30min closed as a short candle just above support but the 15min had a nice inside bar which would have took away any doubts I had about the trade.
entry a nice LH off a double top on the 5min.

What do you guys think?
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  • #2,038
  • Aug 5, 2010 8:35am Aug 5, 2010 8:35am
Quoting jag1966
With this method there is no stress, the trades are generally over within an hour (sooner if you get it wrong )
Almost bust a gut laughing at that one.
  • #2,039
  • Aug 5, 2010 8:41am Aug 5, 2010 8:41am
Quoting reflex
Hi guys heres an example of the 30min helping you decide on a trade the hour looked a bit more bullish then bearish like you trade earlier V it only had a bit of a wick. The 30min closed as a short candle just above support but the 15min had a nice inside bar which would have took away any doubts I had about the trade.
entry a nice LH off a double top on the 5min.

What do you guys think?
Don't know about others but thats exactly the kind of supporting info I'll be looking for.

Whilst we are on this trade (which I didn't take by the way) the 15 min vol (again amazingly close to Malcolmb's) spiked with an upper wick suggesting sellers around especially when it went lower confirming sellers.

Fxpro's live vol seems on the button again.
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  • #2,040
  • Aug 5, 2010 8:58am Aug 5, 2010 8:58am
Could you do us a favour, mate, or any other of the regulars? Just check this set-up for me and let me know if it's a "goer". I'm still a bit "iffy" regarding MTF set-ups, so a word to the wise would be appreciated.
Cheers

Edit: Arrows indicate 1st candle of the hour.
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