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Higher low, lower high system

  • #5,341
  • Jan 13, 2012 9:50am Jan 13, 2012 9:50am
Quoting Vantage
The above trades are either in line with the 5 min emas OR on gu where the ema's are messy upper wicks on 1hr signalling revert back to trend then looking at 5 min for entry.

Hey, V.

I am really sorry to bother you with trivialities, but i have never really looked too closley at your 8WMA until yesterday. I have always looked at the lower highs/higher lows etc.

If we are looking at the 8WMA, then assuming normal rules apply - higher low/lower high etc, do you take each cross of the MA or does a candle have to open on one side of the MA and close on the other?
  • #5,342
  • Jan 14, 2012 12:30am Jan 14, 2012 12:30am
Quoting Delite
Hey, V.

I am really sorry to bother you with trivialities, but i have never really looked too closley at your 8WMA until yesterday. I have always looked at the lower highs/higher lows etc.

If we are looking at the 8WMA, then assuming normal rules apply - higher low/lower high etc, do you take each cross of the MA or does a candle have to open on one side of the MA and close on the other?
I do prefer the candle (for sells) to open above and close below the 8 lwma as a general rule. IF trend is strong you could look at candles that don't quite make it.

Lets face it any ma is an arbitrary line on the chart so whilst I don't want to get tooooo pedantic about such things experience has shown me that its as good as any other method (eg trend lines or fancy custom indi's) of timing an entry.

Having said that if I look at the 2 losing trades Mrs V has had recently both were good reversal candles on 5 min back into trend but neither had crossed the 8 lwma. Of course now I have to try and remember how many like that worked.

So I would suggest stick to candles that close across the 8 lwma unless you see another reason to go earlier eg a good flag in trend. So essentially that close (for sells) lower is the final confirmation for me that the 1 2 3 in trend has set up.
  • #5,343
  • Jan 14, 2012 12:43am Jan 14, 2012 12:43am
I'll say again after a reasonable retrace in trend (here Musashi's thread is pretty clear on the idea) to a psych level/pivot that crosses 8 lwma with a closed candle (Ok say 25-30 pips or so retrace) back into trend is generally a good trade to take.

One of the provisos, take care pre/early US session it loves to give (in downtrend) a lh, it fails setting up a hl which fails to give a 2b type entry back into trend. I'll stick to my assertion that in trend you will get 7-8 of 10 winning trades if you took every one in the day.

I'm repeating trend often just to make it absolutely clear every cross of 8 lwma is not a trade its a signal to a potential trade if all else makes sense.

That is the trend on D chart, the trend of day, 25 pip or so retraces to previous supp or psych levels or pivots.

If you think back (you've been around here long enough) to the times I've said I'm just buying or just selling today. Thats why.
  • #5,344
  • Jan 17, 2012 9:29am Jan 17, 2012 9:29am
Quoting Vantage
I'll say again after a reasonable retrace in trend (here Musashi's thread is pretty clear on the idea) to a psych level/pivot that crosses 8 lwma with a closed candle (Ok say 25-30 pips or so retrace) back into trend is generally a good trade to take.
25 ish pip retrace to 50 psych level. Mrs v took this hl exiting just before the news. Solid close little/no upper wick candle crossing the 8 lwma.
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  • #5,345
  • Jan 17, 2012 9:33am Jan 17, 2012 9:33am
Our other basic trade when the ma's are turning is to trade the lh back into main trend. Here the lh is clear but she didn't think the 1hr candle was quite a good enough set up. Pity but she made a choice so fair enough.
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  • #5,346
  • Jan 17, 2012 10:36am Jan 17, 2012 10:36am
EU

PS.
Dont see "buy entry".. it's another thing
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  • #5,347
  • Jan 17, 2012 11:13pm Jan 17, 2012 11:13pm
Quoting Danyjoe
EU

PS.
Dont see "buy entry".. it's another thing
The point 3 would be the sell area (most 1 2 3 charts have that as break of 2 point). If I'm selling I normally try and get in earlier using a 1hr as set up and next 5 min hl/lh. Never traded 30 min charts this way.
  • #5,348
  • Jan 18, 2012 6:42am Jan 18, 2012 6:42am
Quoting Vantage
The point 3 would be the sell area (most 1 2 3 charts have that as break of 2 point). If I'm selling I normally try and get in earlier using a 1hr as set up and next 5 min hl/lh. Never traded 30 min charts this way.
sorry but i dont understand english very well.. i didnt understand what you said..
  • #5,349
  • Jan 20, 2012 9:39am Jan 20, 2012 9:39am
D identified this area as a possible R level. 1hr showing divergence with a doji. price went below the Asian S level. Nice lh little/no lower wick, out just shy of +20.
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  • #5,350
  • Jan 20, 2012 9:43am Jan 20, 2012 9:43am
Trade 2, nice retrace and reject of 2925/D pivot. Little/no lower wick cross of 8 lwma, normally a safe trade in trend. Unfortunately exited at BE after target not reached.
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  • #5,351
  • Jan 20, 2012 9:47am Jan 20, 2012 9:47am
As mentioned often this pre US open sideways chop or slightly hl is a counter trend/London session fake out. Mrs V sold the 2b exited +19 (20 pip bank Hall of Fame happy).
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  • #5,352
  • Jan 20, 2012 10:00am Jan 20, 2012 10:00am
Mrs V is no longer a fan of ej and she asked for au to go up (she watches 3 currencies).

This is about a good a set up as you'll get. Trend is clear, D chart fozzy crossed up and we are above 50 level. 1hr retrace and move up on rsi above 50. 5 min hl in trend (short term as shown by the 5 min ema's and in line with long term D chart view).

Nice set up, she wasn't in front of the computer at the time.
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  • #5,353
  • Jan 20, 2012 10:13am Jan 20, 2012 10:13am
I like the latest Ralph shell article here http://www.cashbackforex.com/article...t.aspx?aid=112 titled Euro Finally Rallies More to Come?
  • #5,354
  • Jan 20, 2012 9:32pm Jan 20, 2012 9:32pm
Excellent thread along with Psych Levels, Pivots and Trend lines - Resurrected one of the best.
I just wonder how guys that trade market from different perspective can be so sure that day traders cannot make money

Here is example:

 Originally Posted by mtrader123 http://www.forexfactory.com/images/buttons/viewpost.gif
I would be really happy if I could use both of the strategies - the new system for daytrading and the 3sma system for long-term trading till I have enough money to start doing something else.. Those are just my wishes and dreams.

Post hidden because mtrader123 is on your ignore list.
well, unless you are an extremely gifted trader, I would say that this will stay in the wishes and dreams category. Of course there are thousands of others here that will tell you the opposite, but sooner or later you will realize that trading the markets intraday is a futile exercise, that will just drain your account. You have to answer yourself one question: Do I want to make money from trading or do I want to have excitement? Mostly these two are mutually exclusive.
But since you are a newb I advice you to try out every intraday system you get your hands on for the next year and watch one after the other fail. Hopefully after that year you will be so disgusted and depressed by intraday trading, that you will have an innate urge to trade the markets in a more logical way and hold trades more medium term (weeks to months).


Good trading to everyone.
  • #5,355
  • Jan 21, 2012 2:32am Jan 21, 2012 2:32am
Quoting Vantage
So I would suggest stick to candles that close across the 8 lwma unless you see another reason to go earlier eg a good flag in trend. So essentially that close (for sells) lower is the final confirmation for me that the 1 2 3 in trend has set up.
Delite, now I think about it and had a chance to look at recent trades that eyevoltage (I trust you are well sir) has posted on the psych levels thread. He takes many trades on flag patterns as you will well know. However look at the actual entries, many are either when a candle has closed or a decent number of pips moved from the flag trend line to confirm the move.

What I am getting at is effectively this = my view of cross of 8 lwma.

I hope what I'm trying to get at is clear.
  • #5,356
  • Edited 10:03am Jan 24, 2012 9:47am | Edited 10:03am
Mrs V took this one influenced by the massive 1hr shooting star (and a little bit by the big boys adding yet further to their eur shorts) and head and shoulders. 5 min lh, little/no lower wick.

Never followed through and I think we were lucky to get out at just above BE.
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  • #5,357
  • Jan 24, 2012 10:02am Jan 24, 2012 10:02am
She got these early US session trades for a nice run down. Consistent upper wicks on 1hr, 5 min lhs little/no lower wicks.

20 pips bank Hall of Fame happy.
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  • #5,358
  • Jan 25, 2012 10:52am Jan 25, 2012 10:52am
Mrs V is pretty ticked off putting it mildly.

This is the aud after pic.

1st trade she got great entry, 1hr showing divergence at Y's high with a nice shooting star. 5 min lh little/no lower wick. She moved stop to BE at about +15 i think she said, got hit and then missed the lh re-entry.
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  • #5,359
  • Jan 25, 2012 10:56am Jan 25, 2012 10:56am
Decent retrace nice lh cross through 8lwma, little/no lower wick. Exit at 50 area for +20.

I'll let her off her chillie and pasta is great.
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  • #5,360
  • Jan 25, 2012 10:59am Jan 25, 2012 10:59am
She was focused on aud but posting this pic perfect eur chart.

Apart from the pic perfect lh's we would not buy the weak hl's pre US session open.
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