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Higher low, lower high system

  • #3,461
  • Nov 10, 2010 9:09am Nov 10, 2010 9:09am
Quoting Csenge
Hi Boomslang,
Please tell me what is your EMA settings! Thank you!
Best regards, Csenge
sma, not ema: pink--10,blue--20,white--60 for 15m chart seting
  • #3,462
  • Nov 10, 2010 9:23am Nov 10, 2010 9:23am
Hi Boomslang,
Many thanks! Best regards,
Csenge
  • #3,463
  • Nov 10, 2010 9:11pm Nov 10, 2010 9:11pm
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  • #3,464
  • Nov 10, 2010 11:09pm Nov 10, 2010 11:09pm
3ma r stick together now in EG,a big move will occur soon, someone can practice this one.
  • #3,465
  • Nov 11, 2010 8:24pm Nov 11, 2010 8:24pm
Where r u Mr. Vantage.
Hope all is going well with u..!!
  • #3,466
  • Edited 1:48am Nov 12, 2010 12:53am | Edited 1:48am
A while back I posted the EURGBP LH on the daily chart. It has been kind with the pips.

I meant to post the 1st chart on Wednesday, pure support and resistance levels and the odd trendline work well don't they. I just use the HL LH on the lower time frames to fine tune my entries.

Thanks again Dave, your HL LH setup transformed my understanding of trend analysis using candlesticks on all time frames.
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  • #3,467
  • Edited 1:42am Nov 12, 2010 1:37am | Edited 1:42am
shorted CAD/JPY using the m30 LH and m5 trend this morning.
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  • #3,468
  • Nov 12, 2010 4:11am Nov 12, 2010 4:11am
Nice trades jag.

Yes pottering around everything fine here, thanks king/jag for the kind thoughts.

GU 15 min, showing that chart here but entry was from the next 1 min lh that followed the 15 min close.

Why this 15 min set up candle and not the others, well this one closed on the low of prev support with little/no lower wick. The 1 min lh that followed 15 min close, price stayed below the 50 level (another one of our favoured set ups) to confirm the sell even though at that stage the low of range hadn't been broken.

My target was originally the 85 level once 6015 area broken (yes the 15/85 trade) but when RN was giving some resistance Mrs V said out so we did.

Nice trade though.
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  • #3,469
  • Nov 12, 2010 4:26am Nov 12, 2010 4:26am
Quoting Vantage
Nice trades jag.

Yes pottering around everything fine here, thanks king/jag for the kind thoughts.

GU 15 min, showing that chart here but entry was from the next 1 min lh that followed the 15 min close.

Why this 15 min set up candle and not the others, well this one closed on the low of prev support with little/no lower wick. The 1 min lh that followed 15 min close, price stayed below the 50 level (another one of our favoured set ups) to confirm the sell even though at that stage the low of range hadn't been broken.

My target was originally...
Nice trade Dave, glad to see you are still about.
  • #3,470
  • Nov 12, 2010 4:54am Nov 12, 2010 4:54am
We have had a remarkable consistent run lately but almost shifting away from 5 min chart which is really wierd for us and why I haven't posted as much lately. Almost as if a 15 min hammer/shooting star, engulfing/inside candle next 1 min hl/lh thread is in the works (but I doubt it).

We have been really enjoying good candles on 15 min chart and then looking at 5/1 min charts for 1 min hl/lh's that follow (or of course line up with 15 min close).
  • #3,471
  • Nov 13, 2010 6:02am Nov 13, 2010 6:02am
Quoting Vantage
We have had a remarkable consistent run lately but almost shifting away from 5 min chart which is really wierd for us and why I haven't posted as much lately. Almost as if a 15 min hammer/shooting star, engulfing/inside candle next 1 min hl/lh thread is in the works (but I doubt it).

We have been really enjoying good candles on 15 min chart and then looking at 5/1 min charts for 1 min hl/lh's that follow (or of course line up with 15 min close).
Hey V, Im just wondering what entry candle you use on the 5min chart. E.g. if we have a lower/neg close on 1hr and 15m, we look for a lower high on the 5 min/1 Min ... but what candle(s) do we use for entry ? doji, pin, engulfing ? ...or do we just enter on the break of the previous swing low ? (btw this is for the setup (2) trade .. with trend already established)

Thanks
Dan
  • #3,472
  • Nov 14, 2010 11:10am Nov 14, 2010 11:10am
Quoting dan89
Hey V, Im just wondering what entry candle you use on the 5min chart. E.g. if we have a lower/neg close on 1hr and 15m, we look for a lower high on the 5 min/1 Min ... but what candle(s) do we use for entry ? doji, pin, engulfing ? ...or do we just enter on the break of the previous swing low ? (btw this is for the setup (2) trade .. with trend already established)

Thanks
Dan
Hi Dan
Entry would be from any candle (when selling in this example) that is a lower high and has little or no lower wick (doji's the only exception to this rule that I use).

In this example. The red lines show the close of 15 min candles.

So you could look to sell the break lower of the shooting star, arrow left, following the 15 min shooting star/neg close.

Then there is another lower close 15 min candle (the middle red line) and the middle arrow down is a perfect lower high little/no lower wick.

In these 2 examples the lower high follows the close of the 15 min candle, often the 5 min lower high and 15 min close happen at the same time, thats fine.

The right red line, time 23.25 shows a 15 min positive close. So normally you'd be careful as a positive close 15 min candle on a supp level can easily be the start of a move up. In this case the 3 5 min candles that form the 15 min candle are 2 x shooting stars with upper wicks and then a doji (so perfect you cannot see it due to the yellow ma and the red line). Those 3 candles still form a lower high on 5 min so you might enter on the close of the 5 min doji around 6135 or on the failure of the 15 min candles low around 6127.

You'd need to be aware that you are going against the 15 min candle and assess the 5 min candles. If a 15 min candles range is all done in first 5 mins and the next 10 mins fails to follow through I'll consider taking a sell like this one, but its flying against the rules a little.

If too many trades are not working out for you going against the 15 min chart then don't take them. We are having a good run waiting for the better 15 min candles and trading from there, taking entries as described in 1st post.
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  • #3,473
  • Nov 14, 2010 11:33am Nov 14, 2010 11:33am
Quoting dan89
Hey V, Im just wondering what entry candle you use on the 5min chart. E.g. if we have a lower/neg close on 1hr and 15m, we look for a lower high on the 5 min/1 Min ... but what candle(s) do we use for entry ? doji, pin, engulfing ? ...or do we just enter on the break of the previous swing low ? (btw this is for the setup (2) trade .. with trend already established)

Thanks
Dan
Dan most of the charts I post are taken live as you'll see from the buy/sell lines mt4 are kind enough to show. The arrows I put in show the entry candles. Have a flick through from the start of the thread. You'll see the kinds of candles taken. There are prob literally hundreds of live charts posted over the years.

Whilst little things have changed (5 min 5ema 3 shift became 8lwma, currently both gone from 5 min chart, 1 hr 21 ema became 8 lwma also) hl/lh's on 5 min with entry candles having little/no wick in direction of move are constant. Hl/lh's at extremes, thereafter following 1 hr until good reason not to remained constant. Little things improved as experience improved (being aware of LO head fake prob one of the most important and bringing in 15 min chart also) but the nuts and bolts are the same several years on, a few of the fluff items got amended. Several things got tested along the way and usually discarded. That prob shows how simple and robust the method is. Another simple fact is (and this I'll stick to) price action rules, virtually every indi based system is prob better off using some of these simple pa based hl/lh entry ideas.
  • #3,474
  • Nov 14, 2010 12:10pm Nov 14, 2010 12:10pm
Quoting Vantage
Dan most of the charts I post are taken live as you'll see from the buy/sell lines mt4 are kind enough to show. The arrows I put in show the entry candles. Have a flick through from the start of the thread. You'll see the kinds of candles taken. There are prob literally hundreds of live charts posted over the years.

Whilst little things have changed (5 min 5ema 3 shift became 8lwma, currently both gone from 5 min chart, 1 hr 21 ema became 8 lwma also) hl/lh's on 5 min with entry candles having little/no wick in direction of move are constant....
Hey V, thanks for taking the time to reply. this has been a great help and im starting to understand your method a lot better. You something about London Open head fake. Ive tried searching this but i cant seem to find any information on it. Any info you could give me ? sorry if this has already been answered in the thread .. i havnt gone through the whole thing just yet.

Thanks
Dan
  • #3,475
  • Nov 15, 2010 1:50am Nov 15, 2010 1:50am
Quoting dan89
Hey V, thanks for taking the time to reply. this has been a great help and im starting to understand your method a lot better. You something about London Open head fake. Ive tried searching this but i cant seem to find any information on it. Any info you could give me ? sorry if this has already been answered in the thread .. i havnt gone through the whole thing just yet.

Thanks
Dan
Nothing as specific as the FH half hour reversal time wise that I am aware of. Have a look at lots of charts for LO and just after. How many days have a move that fails only for the bigger move to occur after 9-9.30 gmt than before. 70%, 80% more?
  • #3,476
  • Nov 15, 2010 12:50pm Nov 15, 2010 12:50pm
Quoting Vantage
Nothing as specific as the FH half hour reversal time wise that I am aware of. Have a look at lots of charts for LO and just after. How many days have a move that fails only for the bigger move to occur after 9-9.30 gmt than before. 70%, 80% more?
Hey thanks for the help V, really appreciate it.

I tried your 'system' today and it worked out nicely on one trade and the second trade i was not sure what candle to take so i just left it. Anyway, could you have a look at this chart and give me your opinion on which of the candles in the red box you would have taken for a short. (the green thumbs up and down show the 15 min candle trend )

Also what about the lower high that occurd just before the red box. Would you of taken the break of that red inside bar ?

BTw the green arrow is the first trade i took (i closed the trade at the BRN) but it continued on for a bit. Did you take this trade aswell by any chance ?

The problem im having is correctly identifying a lower high (in this example). Do you do it on a candle by candle basis (as in, if there is a downtrend and then a corrective candle occurs but does not penetrate the previous candle high, then is this not considered a lower high

Thanks
Dan
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  • #3,477
  • Nov 16, 2010 1:58am Nov 16, 2010 1:58am
Quoting dan89
Hey thanks for the help V, really appreciate it.

I tried your 'system' today and it worked out nicely on one trade and the second trade i was not sure what candle to take so i just left it. Anyway, could you have a look at this chart and give me your opinion on which of the candles in the red box you would have taken for a short. (the green thumbs up and down show the 15 min candle trend )

Also what about the lower high that occurd just before the red box. Would you of taken the break of that red inside bar ?

BTw the green arrow is the first...
The lh to the left of the box would have been tricky as it followed the close of a nice hammer. Admittedly it wasn't a hammer at the end of a run down at a price extreme but still it would have given cause for concern. Normally if in doubt I'd wait for low of hammer to fail, see 1st post the point 3 for entry.

The box, on my chart the middle down candle (20 mins to hour) is a lh after 2 15 min dojis at a key level so again there may be doubts it'll fall. In any event it doesn't go lower with a pip so its no entry. Again you might need the engulfing 15 min to close giving an entry at 6066. Again the 3 point see 1st post.

We try for entries at point x but don't always get them.

I am fairly careful with hl/lh's and would prob have viewed this as sideways junk. If in doubt stay away theres more than enough good set ups around.
  • #3,478
  • Edited 7:03am Nov 16, 2010 6:38am | Edited 7:03am
Trading pre UK news 9.30 gmt was boring with no decent set ups. GU jumped up on the news but quickly struggled. A 15 min shooting star was followed by a perfect lh, price fell below the 1 hr 8 lwma (gold ma) and another 2 lh's followed.

I might be finished for the day with all the US news, we'll see.
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  • #3,479
  • Nov 16, 2010 7:37am Nov 16, 2010 7:37am
Boring, no way

you must have taught me too well V.

M30 HL / LH trades work well too. They are still a work in progress, most fly without a retrace, others you may have to wait for a m5 LH / HL for the safest entry.
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  • #3,480
  • Nov 16, 2010 7:45am Nov 16, 2010 7:45am
all had similar m30 HL LH setups. I watch a handful of pairs for the best setups, I only took CAD this morning though.
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