Higher low, lower high system

Quoting jag1966

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Dave I am having to pinch myself, the end of another great week trading your entries.

Every morning my mate and I meet on skype between 5 and 6 am, every morning we say, "hmmm not very clear today"

Then 30 mins later we are in the pips with a big on our faces, sound familiar?

For some reason if I trade your entries after 9am I always balls it up so for now 5am till 8am is my working day, bummer.

P.S. My mate traded AU long, I traded GJ long I guess you got some good longs on Cable.

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Quoting trublu

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Hey Thomas I just wanted to clarify that this is from the Al Brooks book correct? I've got it saved on my computer and have read about the first 150 pages or so but find it very hard to understand what he's talking about. He has a very confusing way of writing, to me at least. Looks like I need to give it another go, thanks for the nice chart and info.

trublu

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Quoting Vantage

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Oooops forgot to mention 2b variation. Why add 2b because its test and failure, like hl/lh's are tests and failures. If I'd have known about 2b from the start it would have been in.

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Quoting reflex

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Hi all I have not been trading today but I have a question.
On the chart below is this a 2B reversal setup below the arrow?
I wouldn't have took it anyway being so close to news. It had lots of other thing pointing to short aswell.
It was at the top of yesterdays range it had formed a bear flag and faked out on the 08.45am bar (Lonodn time).
after it faked out the price came back into the bear flag and setup a breakout pullback short off the upper trendline it was also a low2.
But as its a HH I wouldnt be able to take the trade so would entering...

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Quoting Vantage

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I definitely saw it as a 2b set up and was busting a gut to sell but also left because of news. Sometimes this discipline thing is a pain. There were quite a few vsa traders I recall that firmly believed vsa prior to news releases was an early signal of things to come.

At any other time I would, 15 min had a high vol hammer closing near its high and you would certainly expect that to move higher. Any failure to follow up (effort v result) is a sign of weakness and we had an engulfing close on 5900 on much lower vol.

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Quoting reflex

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Thanks for clearing that up I just wanted to make sure I was looking at the right thing. I was reading about 2Bs last night on google and some of the examples were confusing.
To enter on a 2B setup like the short example I posted you cant just enter below the breakout bar you have to wait for a close under the breakout bar and then enter below that is this right?
One more question I see you call the 15min bar an engulfing bar. So do you ignore the wicks on the bar before and call it a engulfing becasue the body of the bar before is engulfed?
I know...

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Quoting Vantage

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I definitely saw it as a 2b set up and was busting a gut to sell but also left because of news. Sometimes this discipline thing is a pain. There were quite a few vsa traders I recall that firmly believed vsa prior to news releases was an early signal of things to come.

At any other time I would, 15 min had a high vol hammer closing near its high and you would certainly expect that to move higher. Any failure to follow up (effort v result) is a sign of weakness and we had an engulfing close on 5900 on much lower vol.

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Quoting chuks

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Hello Vantge,
Am glad you saw this set up. Is really cool. Not minding that GBP news in close. I took the trade +15. These days 15min chart do look cool and sweet to me, most of the time am glued to it.
thanks
chuks

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Quoting Auron112

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I agree with you on this one. He starts the book referring to all sorts of patterns and bars that don't get explained for the next 100 pages. Unless you read through the book a couple of times it's horribly confusing (pointlessly so). It has some excellent material, but it is one of the more poorly written trading books I've encountered yet, and that is saying something.

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Quoting jag1966

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I was taught to trend trade, your h1 reversal and m5 lh/hl entry is pure trading a trend within a trend Vantage. Brilliant.

M5 entries H1 targets.

Here is what I saw H1 and m15, I dropped to the m1 for the 2b long.

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Quoting Vantage

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Oooops forgot to mention 2b variation. Why add 2b because its test and failure, like hl/lh's are tests and failures. If I'd have known about 2b from the start it would have been in.

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Quoting tdeu

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Hi guys,

trend channel line overshoot even working on the weekly. See yellow square.

The book (Brooks) is awesome. Just a little bit confusing sometimes. You have to read it through a couple of times. A couple more charts would do good sometimes.

Start with price action then trends, trend lines and pullbacks.

Have a nice weekend

Cheers

Thomas

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Quoting jag1966

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Hi Dave, I almost wish I hadn't mentioned 2b reversals but couldn't help myself because they almost always occur at the same time as your hl / lh / 123 entries.

As mentioned earlier I have been aware of 2b patterns for a few years but it wasn't until I found your thread I was able to better understand what they were telling me.

I think we should consider thinking of the 2b "reversal" as a 2b "continuation". What I have noticed is that your hl entry is often just an internal part of a 2b reversal on the higher timeframes and as such we can...

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Quoting Vantage

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The main aim behind the hl/lh (now including the 2b variation) was to get in (hopefully) on first move. Then (again hopefully) having gotten some of first move an hourly close in the desired direction would give a 100% system trade.

What your higher time frame charts show will be circumstances where decent entries on 5 min prove in time to be a substantial reversal and more info to stay in longer.

Goodness knows between Aug lack of movement and the auto bank indi I need all the help I can get in that direction. Anyway its something we can definitely...

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Quoting jag1966

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I hope that helps.

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Quoting Auron112

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Nope, didn't mean anything bad. That's why I added the smiley. I was basically just hinting at what Medici said, that the strategy always seems to be changing, yet is consistently profitable. Adaptation to current market conditions is what being a successful trader is all about.

Now I just have to decide how best to sort out my MT4 screen if I add another window. Four windows worked pretty nicely, but adding the fifth may mean cycling through the higher timeframes or something instead of having it all on the screen at once.

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