Higher low, lower high system | Page 273 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

What are Higher High, Higher Low, Lower High and Lower Low? 11 replies

How to program Higher-High Higher-Low 19 replies

Higher High/Higher Low indicator conversion from 4 to 5 decimals. Help anyone? 2 replies

Can u point me to code 2 show each bar with a higher high & higher low? 2 replies

High to High and Low to low time cycles 1 reply

Attachments: Higher low, lower high system
Exit Attachments

Higher low, lower high system

  • #5,441
  • Apr 30, 2012 10:18am Apr 30, 2012 10:18am
I got asked a question so it seemed like a good time to ramble on about it.

Mrs V continues to trade on the 2 basics of good angle + separation on 5 min ema's or alternatively if the ema's are a bit of a mess she wants 1hr to confirm move back to trend.

We also follow the concept of 1 day follows the next (for GU more than anything as ej and gj is follow the trend more specifically).

Ok on 16 Apr we have a good pos close, fozzy cross and just on the rsi 50 level. Price was bouncing between 2 S and R levels so the 17th could have been buy or sell trades perhaps with a slight bias for up after the D pos close.

If you are convinced of trend then you can look more at entries at the extremes I'll post a couple of examples. If you are going to go counter trend you might want to wait for the immediate range to break. When gu breaks immediate range our experience is theres usually enough in for a successful trade.

Today we had a reject at a SR level we had identified, the 1hr had clear divergence with a nice shooting star, the immediate range at 6275 was broken the lh tested that level and had a perfect lh entry around 6270. 5 min lh, little/no lower wick on set up, good angle on ma's.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: 1.gif Size: 16 KB
Click to Enlarge Name: 2.gif Size: 20 KB
Click to Enlarge Name: 3.gif Size: 16 KB
  • #5,442
  • Edited 10:46am Apr 30, 2012 10:33am | Edited 10:46am
From the 17th April close you can argue that the GU is back into uptrend (D chart rsi crossed up and above 50 level) giving opportunity to trade the extremes 5 min 2b's, hl's, dble btm's back into direction of D trend. The moves lower out of Asian session have a habit of being head fake lower in uptrend.

Just an observation (the diff between back to trend at extremes and counter trend waiting for recent range of pa to break) you may want to check out yourself.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: 4.gif Size: 15 KB
Click to Enlarge Name: 5.gif Size: 16 KB
Click to Enlarge Name: 6.gif Size: 17 KB
  • #5,443
  • May 1, 2012 4:10am May 1, 2012 4:10am
Mrs V has just taken this trade and is finished for the day.

Y was a neg close day in uptrend on GU. So it gives chance to sell and buy today. Sells being counter trend and a greater reason than normal for her to bank at 20 pips!

1hr neg close below the immediate range clearly shown by Y's low and the attached indi. From stairstep breakouts http://www.forexfactory.com/showthread.php?t=302007 I have been looking for something like this for a while.

There were 2 chances to sell on 5 min with clear angle on ma's, the 2nd is an evening star pattern one of our faves, 5 min lh little/no lower wick.

Wouldn't be surprised if this ends up being a pos close day at all. We don't know if this is start of a big move down on gu or just a pullback in trend but it was a neg close day, 1hr had an engulfing close below range and 5 min emas confirm so we were allowed a sell. Prior to the neg close gu has been 1 way traffic for a couple of weeks.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: 1.gif Size: 20 KB
Click to Enlarge Name: 2.gif Size: 17 KB
Click to Enlarge Name: 3.gif Size: 15 KB
  • #5,444
  • May 1, 2012 4:13am May 1, 2012 4:13am
Quoting Vantage
From stairstep breakouts http://www.forexfactory.com/showthread.php?t=302007 I have been looking for something like this for a while.
I have a lot of checking to do on this including reading a large thread but I am extremely happy to have found it.
  • #5,445
  • May 1, 2012 4:16am May 1, 2012 4:16am
Hello! And it is possible to make to this system ordinary shooters, so to speak to complete the HARDWARE in one indicator.?
  • #5,446
  • Edited 5:37am May 2, 2012 5:00am | Edited 5:37am
Vantage: "smaller bounce from key area = good possibility of that level failing."

Perfect on EU H1 this morning.
Thanks,
Kan
Thanks for your help, warmth and straight talking Heather.
  • #5,447
  • May 2, 2012 10:51am May 2, 2012 10:51am
Quoting Kanderpro
Vantage: "smaller bounce from key area = good possibility of that level failing."

Perfect on EU H1 this morning.
Thanks,
Kan
If its the one I think you are talking about nice one, Mrs V didn't get entry due to the size of candle and then was out for a large chunk of day. No trades at all.
  • #5,448
  • May 2, 2012 10:55am May 2, 2012 10:55am
Quoting Kanderpro
Vantage: "smaller bounce from key area = good possibility of that level failing."

Perfect on EU H1 this morning.
Thanks,
Kan
I am guessing the key level was the W pivot area 3200 and the progressively smaller bounces up and ultimate failure of level to hold are clear.
Attached Image (click to enlarge)
Click to Enlarge Name: 1.gif Size: 21 KB
  • #5,449
  • May 2, 2012 2:17pm May 2, 2012 2:17pm
Quoting Vantage
I am guessing the key level was the W pivot area 3200 and the progressively smaller bounces up and ultimate failure of level to hold are clear.
Hi !

I saw this EA Timm EA V2.1 on your charts, but only on higher tf's.
Could you please tell something about it ?
  • #5,450
  • May 2, 2012 3:11pm May 2, 2012 3:11pm
Nice post, I love this pattern and call it "Psycho Pattern" in my mental tool box because it has sound behavioural reasons to work. In a failed uptrend the stale longs are waiting/hoping to see new highs, then it doesn't materialize they they get very dissappointed when the reaction low breaks too. Works great on a daily chart too I find.
  • #5,451
  • May 2, 2012 4:29pm May 2, 2012 4:29pm
Quoting Vantage
I am guessing the key level was the W pivot area 3200 and the progressively smaller bounces up and ultimate failure of level to hold are clear.
Yes Vantage. 1.3200. Apologies for not being specific or posting a chart.
Kan
Thanks for your help, warmth and straight talking Heather.
  • #5,452
  • May 3, 2012 9:17am May 3, 2012 9:17am
Quoting ForexTeam
Hi !

I saw this EA Timm EA V2.1 on your charts, but only on higher tf's.
Could you please tell something about it ?
Its a paid for product so I'm not sure about the rights/wrongs of putting out.

Its a full trade or signal only ea based on fozzy cross on either/all of rsi, williams % r, CCI. Has a laguerre filter so just highlights initial possible turns and not every cross in a move. I just use as audible alert with rsi cross as I'm happy to choose that for divergence but the cci and williams % r are there as that option may be preferred (for divergence).

Thats about it. It could be better perhaps to have ma filters instead of the laguerre so that you could put on a lower tf to approx the only buy above ma's/sell below ma's concept.
  • #5,453
  • May 3, 2012 9:26am May 3, 2012 9:26am
Quoting Hyperion
Nice post, I love this pattern and call it "Psycho Pattern" in my mental tool box because it has sound behavioural reasons to work. In a failed uptrend the stale longs are waiting/hoping to see new highs, then it doesn't materialize they they get very dissappointed when the reaction low breaks too. Works great on a daily chart too I find.
If you mean the "smaller bounce from key area = good possibility of that level failing" yes there are definitely sound reasons for it to be true. Regulars on the thread have heard me prattle on about this for years. Quite simply as in the above chart lower bounces means buyers are running out of steam and 2/3 smaller bounces gives high prob of level failing.

If a specific level was key then big boys would have identified it long before you or I and if they were interested in buying, for example, a failed 2b lower or higher lows would be most likely. Of course every now and then news will cause this pattern to fail but in the uncertain world of trading its as good a pattern as any.
  • #5,454
  • May 3, 2012 9:36am May 3, 2012 9:36am
Quoting Vantage
I am guessing the key level was the W pivot area 3200 and the progressively smaller bounces up and ultimate failure of level to hold are clear.
When it ties in with another concept I like (pick your time frame) see the eur 1hr chart above on 1 May, the lower high FOLLOWING divergence is a high prob trade IMHO.

Clear divergence on 1 May, the lower highs followed through on the next day.
  • #5,455
  • May 9, 2012 10:31am May 9, 2012 10:31am
Don't really post much lately but there are examples of 2 simple ideas that have served us well.

OK first, on D we have a lower high neg close Y, the fozzy rsi crossed lower and headed below 50 level. Reasonable to assume we could be headed lower today.

5 min shows LO head fake move up and a 2b or lower high (depending on how you want to look at it) entry below 6150 to resume move down.

Basically looking for head fake moves against the trend. If we feel trend is in a specific direction down on D today, then we'll be looking to avoid LO moves up waiting for downtrend to resume.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: 3.gif Size: 16 KB
Click to Enlarge Name: 1.gif Size: 16 KB
  • #5,456
  • May 9, 2012 10:35am May 9, 2012 10:35am
We regularly post about avoiding weak pre/early US counter trend candles (not to be confused with a strong engulfing candle perhaps due to news moving market). Instead we would be waiting for moves to revert to trend.

Here is a clear example of what we mean, we would not be looking to buy the hl's here but wait for UK session trend to resume.

We strongly believe in the pre/early US session fake out just as much as the LO head fake.
Attached Image (click to enlarge)
Click to Enlarge Name: 2.gif Size: 17 KB
  • #5,457
  • May 14, 2012 10:35pm May 14, 2012 10:35pm
[Finally, after 44 years, City's title.
  • #5,458
  • May 16, 2012 5:58pm May 16, 2012 5:58pm
Hi Vantage et al, I'm looking at the Aussie. This is a decent 1-2-3 pattern right? Buy at market (9920) SL 9890. TP Open. Would you pre-empt it here or wait for a close above 9960ish?
Attached Image (click to enlarge)
Click to Enlarge Name: Capture.PNG Size: 69 KB
  • #5,459
  • Edited 2:25am May 17, 2012 2:19am | Edited 2:25am
Quoting Hyperion
Hi Vantage et al, I'm looking at the Aussie. This is a decent 1-2-3 pattern right? Buy at market (9920) SL 9890. TP Open. Would you pre-empt it here or wait for a close above 9960ish?

Hi
8 hrs ago when posted I was asleep (about 1am here).


OK on D chart you have a proven S level going back to 15 Dec. That gives the potential for a bounce from this level. D close Y was a red doji which MAY support a bounce from .9880 area.

1hr showing divergence on your stoch and my rsi at the low. A 1hr hl after divergence is normally a trade. This would nevertheless be a counter trend trade and you'd need to take care.

The 1hr candle you show, after its close there was a pullback below 5 min lwma and a hl from there. Thats where I'd be looking to get in as opposed to waiting for .9960.

If we go counter trend we'd like to get in early as above or late i.e. if that trade missed prob wait for D to signal a turn properly. As things stand now the bounce from that key area was not that large so we'll see the reaction to the low today.

As usual we'd say a smaller bounce from a key area = good chance it'll fail.
Attached Image (click to enlarge)
Click to Enlarge Name: 1.gif Size: 16 KB
  • #5,460
  • May 17, 2012 2:23am May 17, 2012 2:23am
On subject of trend/counter trend, an intra day hl/lh on 1hr even if counter trend is also normally a good set up.
33 traders viewing now