Higher low, lower high system

Vantage

I understand most of your acronym's but what is LO/FO?
NB?
RN?


Thanks!

PGPB

Musashi,

hello,

can you tell me what the indicator is on your charts that have the red or blue dots with the lines? Trailing stop indi?
where can I find it?

thankx for all your post...

dojirock

Hi PGPB,

LO = London Open.
FO= Franfurt Open.
RN= Round Number.

Tc..

NB is Latin means take note.

V, I didn't get a chance to look at Trend Magic this weekend but I'm hoping to take a look tomorrow. Mind sharing your settings and time frame(s) that you're using it on, or is it default? Just asking because I see it on 5min so I'm wondering if you modify in the same way you would a 8LWMA from H1 to M5. Cheers.

Hi Auron
TM is 50, 5. The BB MACD is 144, 233, 21. Only on 5 min charts. 5 min charts have those and psych levels on, much cleaner.

Hi Auron - FWIW I use Trend Magic at CCI 50 and ATR 5. Just had a nice little LH trade , entered at LO and out half +19. Might keep the rest with a target at psych No 50 TWT. There was an earlier LH entry at 9:35 my chart but I elected to wait until LO.

Hit my target OK and also out with +21 on a LH entry on E/U. Out too soon on G/U by the looks.

Nice one O.

The perfect lh sell 5925 was a little early for us. We considered the 2 shooting stars around 5909 but chickened out as too close to the RN.

We had to wait for this one and exited +24 when it looked like break below 50 level might fail. This was Mrs V's trade (I had beetroot and venison yesterday and was not available yes I know too much information ) and she called exit which is fine as range for session 100+ and considering size of move from Asian open much more.

Ok, so going with the EUR/GBP Trendmagic Thread fib numbers. Thanks for the reply. I'll take a closer look tomorrow when I get a chance.

How many filters is needed for trend? I presume Trend Magic is to be used as a trend filter?

Hi V
Great thread , great people, great stuff.
Can u point to this perfect LH or tell at what time it happened ...as I do not see it clear.
Tks
David

Hi M
TM and BB macd from this thread
http://www.forexfactory.com/showthread.php?t=252157 settings there and my post top of page, they're the same.

Great people, yep couldn't agree more. Never said it before but thanks to all those that contribute without causing any rubbish/negative posts.

Chart attached.

Is the first question rhetorical? The answer, in my opinion, is zero. If you need an indicator for anything you are doing it wrong. For my purposes it is the potential benefit of being able to rapidly view data within a specific set of parameters. Sometimes it's beneficial and sometimes detrimental, but at least in most cases it is worth spending the time to figure out how it works within your system.

Plus, something like this has the added potential of being used in some sort of exit strategy. I personally am very discretionary with my exits rather than mechanical, but I will still test it against my own data to see how it comes out if used for trailing purposes (like the BAT I used some time ago). Perhaps it has specific applications where it would be beneficial. Perhaps not. Only one good way to find out...

Attachment Indeed... The most important nut and bolt of any system... the allusive exit strategy...

When the market trends...that's when you want to use a nice trailing exit indeed.

The wider the trail the better for a trending market typically.

TM is also an easy visual to scan several pairs and to (hopefully) choose best one to trade.

BB macd with the settings used is a slow macd and whilst we won't become indi reliant if you know what you're working with ..........

Your profit is made on right entry (IMHO), if lucky to get in 1st move in run best exit still a decent session target.

We continue to work on that one.

Hi V
Followed the TM. Entered as shown in chart.
112.75 was res and became supp .
Exited for +18 , around 113 as price was not able to break RN for a long time.
1. Can u see an early entry based in your methodology combined with TM ?
2. Do you think we need 2 ind.(TM+BBMACD) ? IMHO they tell more or less the same information .The TM by itself is actually a different graphic way to show when CCI 50 crosses the zero line , and cci50 is already slow.
3. Did you take the 2B setup (hammer @ extreme = 112.50) or in those days do you prefer to take trends only with the trend (=TM).
Tks
David

We discounted ej very early this am, all else being equal we trade gu first. So when gu was trending down nicely ej was going sideways. We went with what was going - gu.

Your left arrow down, in the bigger pic this was a lh but there were 2 lh's before it about 8 and 14 candles back. So whilst a great trade not strictly a lh the way I look at them (great trade = supp/res level, psych level, spinning tops). There was a shooting star about 3 candles after your left arrow down, thats a trade as I view it. Anyway these ej sells were going against several 1hr hammers which doesn't inspire as much confidence.

For the mo we are using tm and bbmacd. I don't know yet how close they are to mirroring each other. We are largely using to try and focus on number 1 currency pick, if we have right requirements AND TM/bbmacd lining up well thats what we'll go with as we then have our normal requirements and we are in the bigger pic trend.

Back to your chart, how nice were the hl trades after the 2b, when 5 min hl's 1hr hammers and tm/bbmacd are lining up for buys. What a struggle the sells were and how easy the move up when everything lining up! Everything is dead easy in hindsight, what you want are the set ups that afterwards you step back and say thats a perfect trade because you followed the odds that were in your favour. Whats going to do that, good 1hr candles, trend, hl/lhs in that direction.

Mrs V read something on trading, (reads novels by the truck load but trading stuff no way) and wants us to focus on trend. I used a ma previously to mimic rsi trading above/below its 50 line (eg 14 ema and 14 rsi) not sure how well tm does its equivalent job, yet. Also I'm still watching how it compares to 1 hr 8lwma. For now we have ZERO losing trades lining tm and bbmacd up, using normal lh's and entry on candle with little/no wick (in direction of trade) as per our normal trades. Thats something thats not to be sneezed at and largely explains Mrs V trend only choice. Edit yes I know full well its short term and zero losing trades not going on forever but it does have out attention fully on good 1hr candles, hl/lh's that follow with tm/bbmacd lining up. We are also fully aware that this set up will miss some trades.

We did not trade ej's 2b at all. WE did look at gu hl possibility after the 1hr hammer closed but Mrs V dead tired after yesterdays entertaining (napping as we speak) and I had an appointment to go to so we left for day, 1 trade 1 winner.

Once gu has decided on a direction there is normally some time for it to turn. Today was another good example, there was a hl hammer at 9.40 gmt that would prob have seen us out at BE. However when the 1hr hammer had closed there was another 5 min hl hammer at 10.10 gmt, that ran up nicely to 1.59. If we are going counter trend after LO move Mrs V wants us to wait for 1hr close ie she doesn't want 2b's/hl lh's (unless runs are big and turn levels really stand out).

So its actually working out at FEWER trades for us again, after last months poor showing we thought more trades the answer - its not, at least not for us.

I hope this ramble helps.