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Higher low, lower high system

  • #3,721
  • Dec 22, 2010 4:11am Dec 22, 2010 4:11am
Quoting Vantage
Great to hear jag.

Not been a good week. Mrs V's BP has been all over the place. She was taken to hospital last night and was put into ICU.
Sorry to hear about That Vantage, I'll remember her in my prayers. Have a good xmas
  • #3,722
  • Dec 22, 2010 4:13am Dec 22, 2010 4:13am
Quoting jag1966
I am still banging out HL LH trades every day thanks to your thread Dave.

It is quiet here so I just wanted to take the opp to wish you and yours a happy xmas.

Cheers.
Hey jag, i need some help using this system, I've been trying out my hand with this method and it looks promising, but i cant seem to integrate the 1H timeframe. any help would do. Thanks
  • #3,723
  • Dec 22, 2010 4:41am Dec 22, 2010 4:41am
Thanks guys the warm fuzzies are much appreciated.
  • #3,724
  • Dec 23, 2010 10:58am Dec 23, 2010 10:58am
Quoting TenFX
Hey jag, i need some help using this system, I've been trying out my hand with this method and it looks promising, but i cant seem to integrate the 1H timeframe. any help would do. Thanks
Hi Tenfx
Take some time to look at a lot of charts! Not this weeks though due to prob smaller vol/moves.

Chuck an 8 lwma on 1hr chart for fun. Just have a look at trends that normally happen, have a look at types of candles that start moves. Take off the ma if you like.

Pick a candle, any candle from 1hr, during London session including the US open overlap, ie the times generally when you can be reasonably assured of some follow through. Don't just pick winning moves pick some good candles that never went anywhere.

OK from looking at 1hr chart you should be comfortable that those nice runs above/below 8 lwma have a 1hr candle setting it up. You never know though which candle will follow through.

Start looking at 15 min charts and 5 min after the close of the 1hr candle. Put a line up on 5 min showing close of 1hr candle. After that look for 5 min hl/lh's in the direction of the 1hr chart where there is no obvious candle on 15 min to warn you off.

In many cases you either won't get a set up because the market is turning around and the 5 min hl/lh's won't have supporting 15 min candles or you'll get stopped out pretty quick. Thats OK nothing works all the time. You then might have 1hr close in opposite direction OK look for set ups that way.

You know from looking at lots of charts that chop days don't last you'll get good runs.

If in doubt wait for LO head fake to clear.

Haven't had time to proof read off to hospital, hope this helps.
  • #3,725
  • Dec 23, 2010 11:08am Dec 23, 2010 11:08am
Quoting Vantage
Hi Tenfx
Take some time to look at a lot of charts! Not this weeks though due to prob smaller vol/moves.

Chuck an 8 lwma on 1hr chart for fun. Just have a look at trends that normally happen, have a look at types of candles that start moves. Take off the ma if you like.

Pick a candle, any candle from 1hr, during London session including the US open overlap, ie the times generally when you can be reasonably assured of some follow through. Don't just pick winning moves pick some good candles that never went anywhere.

OK from looking at 1hr...
Bless you I'll follow thru the steps you have outlined. My regards to Mrs V
  • #3,726
  • Dec 23, 2010 12:24pm Dec 23, 2010 12:24pm
Quoting TenFX
Bless you I'll follow thru the steps you have outlined. My regards to Mrs V
Thanks.

I'll post some charts and show you what I mean.
  • #3,727
  • Edited 1:23pm Dec 23, 2010 1:00pm | Edited 1:23pm
My charts are 2 hours ahead of London so 9.55 is 7.55 gmt etc etc.

The red lines on 5 min show the close of 1hr candles.

Frankies hour (hour before LO) and London open can be very volatile so be prepared to bank pips quickly.

London can turn very quickly , pre US open can take a couple of hours to turn.

OK, Mon 20 Dec, prev Fri a big down day so the move up early on 20th is counter trend. So be prepared to bank pips.

Close of 9am candle (7 gmt) going into London open is positive, so think buy. 15 min candle close small neg inside bar and the move up doesn't really go anywhere. You might not have made pips but certainly should not have lost any.

Close of 10 am candle is again positive. There are lots of 5 min upper wicks showing, the x's. Move is up so whilst there is a hl, 2nd arrow up from left, with a warning from 15 min and the upper wicks here on 5 min take care. In any event the 5 min hl never went 1 pip beyond set up and this was now against a much more negative 15 min candle. This is a no trade.

Examples of sticking to rules trading 1hr in line with 15 min saved the day on what turned out a pretty crappy early London session.

If London is rubbish then usually the US open/London overlap will be good.
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  • #3,728
  • Dec 23, 2010 1:18pm Dec 23, 2010 1:18pm
Same day 20 Dec, the 1hr hammer hasn't followed higher and 13.00 candle highlighted closes negative.

Following the 1hr neg close, 15 min has 2 upper wicks then a neg close. 5 min lh, left arrow down, runs down to 25 psych level.

1hr closes neg, there is a lh in next hour slot, doesn't go lower by 1 pip so no entry. See x.

Price jumps up against 1hr neg close so no trade there, would have been an inspired buy not one I'd have any chance of getting.

15.00 (1pm gmt) 1hr closes green with a large upper wick, could go anywhere. 15 min has solid neg close, 5 min nice lh shooting star nice trade.

16.00 (2pm gmt) 1hr closes neg, 15 min neg also. If not in already there is a 5 min lh doji right on 16.55.

So here 4 poss set ups, 1 no entry, 3 trades.

Following the 1hr taking trades in line with 15 min has pretty high win %.
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  • #3,729
  • Dec 23, 2010 3:29pm Dec 23, 2010 3:29pm
Quoting Vantage
Same day 20 Dec, the 1hr hammer hasn't followed higher and 13.00 candle highlighted closes negative.

Following the 1hr neg close, 15 min has 2 upper wicks then a neg close. 5 min lh, left arrow down, runs down to 25 psych level.

1hr closes neg, there is a lh in next hour slot, doesn't go lower by 1 pip so no entry. See x.

Price jumps up against 1hr neg close so no trade there, would have been an inspired buy not one I'd have any chance of getting.

15.00 (1pm gmt) 1hr closes green with a large upper wick, could go anywhere. 15 min has solid...

Thanks so much great illustrations here. I'll take it in little steps, the charts and lines are good indications of wat to look out for. Thank you Thank you Thank you
  • #3,730
  • Dec 24, 2010 3:56am Dec 24, 2010 3:56am
Quoting TenFX
Hey jag, i need some help using this system, I've been trying out my hand with this method and it looks promising, but i cant seem to integrate the 1H timeframe. any help would do. Thanks
Hi Tenfx,

sorry I only just saw your post. It looks like Dave has cleared things up for you, if not shout.
  • #3,731
  • Dec 24, 2010 4:03am Dec 24, 2010 4:03am
the charts speak for themselves, I also got a long on gold and aud. Viva HL LH.

Dave I hope mrs V is getting better, keep us posted.
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  • #3,732
  • Dec 24, 2010 5:57am Dec 24, 2010 5:57am
Quoting jag1966
Hi Tenfx,

sorry I only just saw your post. It looks like Dave has cleared things up for you, if not shout.
Thanks Jag,

Dave has helped with some good foundations for me to build on, One thing that came to mind is; after the 1hr close and 15 min confirmations, should the 5min HL/LH occur after the last 1hr candle close or can we use an immediate HL/LH
  • #3,733
  • Dec 25, 2010 1:06am Dec 25, 2010 1:06am
Quoting TenFX
Thanks Jag,

Dave has helped with some good foundations for me to build on, One thing that came to mind is; after the 1hr close and 15 min confirmations, should the 5min HL/LH occur after the last 1hr candle close or can we use an immediate HL/LH
I will let Dave answer that Ten because whilst I use Daves HL LH setups for my trades I use slightly different reasons for my entries. I don't want to confuse things.
  • #3,734
  • Dec 25, 2010 5:10am Dec 25, 2010 5:10am
Quoting Vantage
Same day 20 Dec, the 1hr hammer hasn't followed higher and 13.00 candle highlighted closes negative.

Following the 1hr neg close, 15 min has 2 upper wicks then a neg close. 5 min lh, left arrow down, runs down to 25 psych level.

1hr closes neg, there is a lh in next hour slot, doesn't go lower by 1 pip so no entry. See x.

Price jumps up against 1hr neg close so no trade there, would have been an inspired buy not one I'd have any chance of getting.

15.00 (1pm gmt) 1hr closes green with a large upper wick, could go anywhere. 15 min has solid...
you have a high patience,,

I want to learn a lot about it,,

so far I have tried to learn to understand the points the right to conduct transactions, such as the closure of candles,

but why is it so difficult to be patient and get high profit,,
only an analysis, and I'm always wrong, don't follow me,
  • #3,735
  • Dec 25, 2010 9:10am Dec 25, 2010 9:10am
Merry Xmas Everyone !
  • #3,736
  • Dec 26, 2010 2:03am Dec 26, 2010 2:03am
Mrs V came out of hospital on 24th, a big surprise. Whilst we were going to have family at our place (that obviously got bounced) we had a great xmas visiting (read eating) at family of hers and my brothers.

I hope you all had a great day. Once again many thanks to all for the warm fuzzies for Mrs V.

She's going to watch a Sarah Brightman dvd just now, so I'll prob be off reading a book somewhere or checking out the latest squiggly line for the charts (which will get kicked into touch in a week or so). Maybe I'll get my chance and there'll be some time for Rush in Rio later.

All the best for 2011, I hope its a great trading year!

Cheers, V's.
  • #3,737
  • Dec 26, 2010 2:06am Dec 26, 2010 2:06am
Quoting TenFX
Thanks Jag,

Dave has helped with some good foundations for me to build on, One thing that came to mind is; after the 1hr close and 15 min confirmations, should the 5min HL/LH occur after the last 1hr candle close or can we use an immediate HL/LH
Hi again tenfx
If the 1hr closes at the same time as a 5 min hl/lh and 15 min lining up take it.
  • #3,738
  • Dec 26, 2010 2:20am Dec 26, 2010 2:20am
Quoting andelumut
but why is it so difficult to be patient and get high profit,,
Probably because thats the single most important point in trading. Having a plan is one thing, having the discipline to wait for the trades to come and line up is another.

Mrs V often talks about the mental image she has of a nice hl/lh wave, ie she's waiting for the trades to happen, waiting for that mental image.

I strongly believe 'discipline is the bridge between goals and accomplishments'. I want a 6 pack stomach, but heck I don't have the time to do any excercise and wow I just love that slab of chocolate every day. Why aren't I achieving my goals???? Just an example but life and trading are the same, in fact being a successful trader (unless you are very lucky) will take you years to get right and will prob be the most difficult thing you ever do. It will take time, effort and lots of hard work. Hard compared to what though, my prev job on a good (rare) day was an hour in traffic each way, could easily be two hours each way. Thats hard.

If you cannot have patience and jump in all over the place the results will be the same and they won't be pretty. You are in the right place to get help. One of the tricks is to find a method thats right for you, understand it fully and then just do it. So if its not this thread have a look at Shahab8b, Eyevoltage, Malcolmb just to name a few.

Get it right and it will be worth it.
  • #3,739
  • Dec 26, 2010 2:36am Dec 26, 2010 2:36am
Quoting andelumut
you have a high patience,,

I want to learn a lot about it,,

so far I have tried to learn to understand the points the right to conduct transactions, such as the closure of candles,

but why is it so difficult to be patient and get high profit,,

You might also want to check out this thread, http://www.forexfactory.com/showthread.php?t=232466 in particular posts from Paulus. They concerntrate on entering at 2 point on 1 2 3 tops/bottoms. We sometimes enter earlier so the types of candles ie little/no wick in direction of trade (doji's the exception) is important.
  • #3,740
  • Dec 26, 2010 2:41am Dec 26, 2010 2:41am
Quoting andelumut
but why is it so difficult to be patient and get high profit,,
Oh I also believe in the idea (obviously cannot prove it though) that a 'good trader' with a bad plan will outperform a 'bad trader' with a good plan.
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