Higher low, lower high system

Recap 21 Jan

The US holidays and poor EUR price action continued yesterday with no moves. GU did give a trade down in line with bias when 1hr engulfing closed negative and a little later 4hr lower high closed negative. EJ gave a couple of scalp sells in line with short term sell bias.

22 Jan

EUR - D close gives no insight and a 50 pip bounce up late Asian session needs to hold. The 4hr is still in effect going sideways. Will be looking for clarity on flow for direction and if this is not clearer at London open perhaps US open.

GU - Another D doji in the area of the Nov lows. In this run down doji's have been followed by a strong down day but we now have that support level. We are now in a late Asian session push up, 4hr still on lower high but showing positive divergence to price. No bias as there are arguments for buy or sell, good 1hr candles could take this either way.

EJ - D negative divergence, RSI crossed below signal line, but still above 50 level. 4hr negative divergence and a lower high following divergence is normally a decent set up. Bias down but there is always the likelihood the BOJ will take some action.

Missed out badly with moves down this morning, it happens.

After the big bounce from W S1/S3 117.30 area 1hr lower high shooting star. 15 min lh little/no lower wick. Happy to exit +51.

Recap 22 Jan

EUR - 1hr doji then a shooting star at W M3 set up sell opportunities at the extremes of the upper range. On any given day the extremes of the immediate range are the places to trade, even more important when there isn't a trend. The first trade is the best trade.

GU - No bias yesterday could have gone either way. There was a London open sell from a 15 min shooting star, at the extreme of price action when W M2 1.5858 held for 4 hours.

EJ - Bias was down and there were 15 min lower high shooting star sells at London open and US session.

23 Jan

UK MPC minutes this morning, with the state of the UK economy would not expect surprises. Will most likely look for trades after the news.

On many days likely set ups are clearly seen, today isn't one of them for me at least.

EUR - D closed a doji that filled the recent range 1.3375 - 1.3265. RSI's ma's flat, no bias. Based on these charts there have to be better set ups elsewhere. The day might bring greater clarity.

GU - D closed a doji with the lows holding. No bias either way.

EJ - D closed lower with the lower support level, W S1 117.37 holding. Bias down.

Great topic! Great thread!!

Most traders fail because they seek the place to "buy low and sell high", or "sell high and buy low" to make easy money.

Money-making however, didn't come that way as far as my trading experience is concerned over the past 15 years.

Most of the money making came, instead, from "buy high and sell higher", or "sell low and buy lower".

Most of the so called gurus are false in misleading novice traders to the misconception of easy money-making, that is,

"buy low and sell high, or sell high and buy low".

This thread pertains to really valuable trading principle in the sense that it brings the danger of trying to pick tops and bottoms to the attention of all novice traders.

In order to execute trades in compliance of "buy high and sell higher" or "sell low and buy lower", traders must know the point of price where the market shows bottom in the period of consolidation after a sharp upside rally and vice verse.

Once again, this is a a great topic and a great thread seen from the stand point of above context.

Hi gold 757

Welcome, sorry I'm not that active lately.

Recap 24 Jan

EUR - There was movement yesterday either earlier than we trade or difficult to get into from either overly large candles or the upper wicks.

GU - The down bias played out with 15 min lower high engulfing closes pre/early US session.

EJ - The up bias played out with 15 min higher lows just after London open and pre/early US session.

25 Jan

EUR - D engulfing positive close at the recent highs, we are still within the 1.3400 resistance level. D still showing divergence. 4hr has closed an evening star pattern and 1 hr on lower high lower low. No bias can go either way.

GU - D engulfing negative close, 4hr and 1hr lower high lower low flow. Bias down.

EJ - D positive engulfing close at the recent highs. 1hr chart is showing divergence. Bias up but can reject the highs.

Mrs V has been sick all week . Just wanted to escape from the bedroom , trend is all too clear. Got in just after LO, got out switched computer off went back to bed. 15 min hl, little no upper wick in direction of trend +50.

Nice one.

28 Jan

EUR - After the positive D close Fri that stopped at the resistance level we have formed a base at 1.3450. We could get a push below this, still bias up.

GU - Gap down this morning at Asian open which may see some pressure to close today. Support at 1.5741. D is hinting at divergence, 4hr showed divergence on 25th but we did have a move up after that. At this stage looking for any push up to give a lower high and sells in trend and for 1.5745 to fail.

EJ - Consolidating above 122.20 after 2 strong days. Even if we retrace further, bias up.

Hello Van

Thank for sharing your great work.
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Cheers frank, welcome.

Mrs V took 1 trade yesterday having left London open as its often a bit choppy. We had bad internet connection here and lost connection 3 times, exited just above BE when she had the chance. Price did not go lower for 4 hrs strongly suggesting the CT move lower ran out of steam. 15 min higher low, about a 6 pip upper wick about the limit for us on 15 min chart.

Pity trade hit her target. Next trade please.

Recap 28 Jan

EUR - London open was very scrappy as it often is on a Mon morning. There were a couple of buy opportunities in line with bias. The best one in the US session but there was little follow through.

GU - There were 15 min sell opportunities in line with bias.

EJ - Bias up and the best opportunity came in the US session.

29 Jan

EUR - D closed a hammer that could not trade higher than yesterday. We are still above RSI 50 levels but failed to make any progress higher. No bias can go either way today.

GU - D engulfing negative close.4hr lower high lower low in tact. Bias down.

EJ - D chart very similar to EUR, hammer close no progress higher. D chart still showing divergence. We are above 50 RSI. We have seen on D chart that moves down can last for a few days. No bias can go either way but view is sells = scalps and looking for return to up trend.

CT but with that unfilled gap I really fancied this trend line and daily pivot test as the us fake out. most of position off at the 50RN. looking to try to run the rest into the open gap.

2 trades. Gu this morning 1hr doji, 15 min 2b we thought rejecting move up through the pivot 1.5716. it didn't -18.

EJ 1hr chopping with a hammer then shooting star. After a 120 pip CT run down 2 x 15 min dojis at 121.50. Waited for high of 1hr shooting star to get taken out. Mrs V waited to long to exit missing 2 opp's at the high, with her neck giving some stick she asked me to watch. Gave it a couple more chances to go higher and happy to exit +50.

Recap 29 Jan

EUR - Had no specific bias yesterday. There was a 15 min sell after London open will little follow through lower. The buys in US session after price formed a low, then an engulfing 1hr positive close. 15 min higher low that took 3 hours to form to revert to trend.

GU - Bias was down, got it wrong.

EJ - I said "No bias can go either way but view is sells scalps and looking for return to trend." Price fell in the morning with a 1hr hammer rejecting the lows, pushed up on 15 min higher low to resume trend.

30 Jan

EUR - D closed positive, 4hr higher high higher low flow in tact. We are right on the highs from Feb '12. Bias up but we can react lower to the resistance level.

GU - D positive close RSI has crossed its signal line but below our lwma. We are at the resistance level from June/July '12. This can be start of move up or retrace in downtrend. A positive D close would be expected to follow through but the resistance level could hold. No bias can go either way.

EJ - We are approaching the April '11 highs. D positive close but we did not break last weeks high. Divergence on D and 4hr, price action yet to confirm. Would like entries to give sufficient scope to move stop or take partial profits before 122.80 and then the major April high. Bias up but can react to the levels mentioned.

Recap 30 Jan

EUR - Sitting on the resistance level. An early move up at Frankfurt open, then a perfect 15 min higher low at 1.5700 in line with trend.

GU - No bias for either direction, it went up.

EJ - Frankfurt move up, then 2 further chances to enter in line with trend.

31 Jan

EUR - D positive close, 4hr flow higher high higher low. Bias up.

GU - No bias either way, can move up with positive D close or react lower to the approaching resistance level 15 Nov lows 1.5825.

EJ - 4hr hinting at scalp sells but I wouldn't like to bet against any resumptions of uptrend.

Had a couple of BE buys ej and gu earlier when there was no follow through.

EJ 4 hr lower wicks the whole day yesterday certainly suggesting that we were going up sometime. D up, 4hr lower wicks, 1hr engulfing close, 15 min engulfing close back into trend. Mrs V insisted we leave this one as we have missed out on too many pips in moves up on EJ in Asian session.

Stop at the moment just below 124.50 for +90.

Mrs V up and making tea. Stop now just below the RN for +136.

The 20 Pips Bank Hall of Fame, after years of faithful service, have requested Mrs V return her Membership Card. They site recent 50-70 pip trades and now a trade left overnight.

Anyway Mrs V now must manage her trade and decide if ultimate target is the Mar/Apr '10 highs, if yes then when to move stop and when to re-enter will be interesting. This is by far her biggest single trade.

Recap 31 Jan

EUR - Bias was up, London open was choppy didn't move up until US session. 15 min buys with stops below the last swing lows would have been safe.

GU - No bias either way D close positive.

EJ - Bias was up, as per EUR 15 min buys with stops below the last swing low would have been safe.

1 Feb

EUR, GU, EJ 4hr flows clearly up. Bias up.

Hi Vantage,
Just wanted to say thanks for all the updates.... they are not going into a void

Cheers Hyperion, I happily carry on my merry way!!

It will be interesting to see how far the exercise goes to gently nudge Mrs V away from scalping to more of a trend trader. I know this morning she was absolutely busting a gut to exit at +200. Old habits dying hard, but she will have to learn to take some knocks along the way, she's not reading this so I'm safe.

Personally I would be happy with 200 pips, 1 trade hitting our min monthly requirement is fine by me.

Her gut bust.

She moved stop to +167 and when it tried to pop earlier and failed exited at +200. She fully realises that for ej the stop was a little close so she'd rather exit than see stop hit. Just as well as stop would have been hit.

I'll post chart later.