I'll post Uptrend first, and down trend in another post on this thread:
Small Hours rules simplified:
Definition of acronyms:
HH5: Highest High of the last 5 bars
LL5: Lowest Low of the last 5 bars
ATR: Average True Range
Small hours Up Trend Setup Rules:
NOTE: The ATR will be used to identify the small hours price range cycles.
Please click the link below to be taken to the post with the revebalized rules:
http://www.forexfactory.com/showthre...=1#post4395337
1. The HH5-LL5 must be less than the ATRx1.5 as of the most recently closed candle
a. Mouse over setup bar to get ATR value
2. The high of the most recently closed candle must be less than HH5
3. The close of the most recently closed candle must be greater than the 20SMA or 40SMA (can be both)
4. If any one of these conditions is not true, setup is not valid
Entry:
1. Buy at the HH5 plus 3 pips plus the spread (open 2 trades)
Initial Stop loss:
1. Set stop loss at the LL5 minus 3 pips, minus spread
Note: If TP’s or stops are not hit, change your stop after the close of each bar as follows: Move stop to the LL3 minus 3 pips, minus spread.
Target Profit’s (TP1, TP2):
1. First TP is calculated by using entry price plus the value of ATR x .75
2. Second TP is calculated by using entry price plus the value of ATR x 1.5
When first profit target is hit, move stop loss on remaining order to break even. Continue to move stop to LL3 as new bars form.
Good Luck!
Small Hours rules simplified:
Definition of acronyms:
HH5: Highest High of the last 5 bars
LL5: Lowest Low of the last 5 bars
ATR: Average True Range
Small hours Up Trend Setup Rules:
NOTE: The ATR will be used to identify the small hours price range cycles.
Please click the link below to be taken to the post with the revebalized rules:
http://www.forexfactory.com/showthre...=1#post4395337
1. The HH5-LL5 must be less than the ATRx1.5 as of the most recently closed candle
a. Mouse over setup bar to get ATR value
2. The high of the most recently closed candle must be less than HH5
3. The close of the most recently closed candle must be greater than the 20SMA or 40SMA (can be both)
4. If any one of these conditions is not true, setup is not valid
Entry:
1. Buy at the HH5 plus 3 pips plus the spread (open 2 trades)
Initial Stop loss:
1. Set stop loss at the LL5 minus 3 pips, minus spread
Note: If TP’s or stops are not hit, change your stop after the close of each bar as follows: Move stop to the LL3 minus 3 pips, minus spread.
Target Profit’s (TP1, TP2):
1. First TP is calculated by using entry price plus the value of ATR x .75
2. Second TP is calculated by using entry price plus the value of ATR x 1.5
When first profit target is hit, move stop loss on remaining order to break even. Continue to move stop to LL3 as new bars form.
Good Luck!
Attached Image (click to enlarge)
)
