Higher low, lower high system | Page 320 | 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

  • #6,381
  • May 12, 2013 11:57pm May 12, 2013 11:57pm
EUR GU EJ 13 May

EUR - D closed negative with a decent sized lower wick, probably a mixture of typical London close bounce and the low from 24 Apr. 4hr chart is showing divergence but no reaction to that as yet. 1hr flow lower high lower low. Bias down.

GU - D closed negative on the lower channel trend line. 1hr flow lower high lower low. There is the potential to move up and test the back of the trend line, bias down.

EJ - D closed positive but little follow through higher during London session, divergence showing. 4hr and 1hr showing divergence. Bias remains up until price action confirms change in flow.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: eurusddaily.png Size: 35 KB
Click to Enlarge Name: gbpusddaily.png Size: 34 KB
Click to Enlarge Name: eurjpydaily.png Size: 35 KB
  • #6,382
  • May 13, 2013 11:28pm May 13, 2013 11:28pm
Recap 13 May

EUR - D closed negative with a decent sized lower wick, probably a mixture of typical London close bounce and the low from 24 Apr. 4hr chart is showing divergence but no reaction to that as yet. 1hr flow lower high lower low. Bias down.
Result: Bias down did not play out, very choppy day.

GU - D closed negative on the lower channel trend line. 1hr flow lower high lower low. There is the potential to move up and test the back of the trend line, bias down.
Result: We did test the back of the trend line with a move up to 1.5390 area. Fell from there in line with bias.

EJ - D closed positive but little follow through higher during London session, divergence showing. 4hr and 1hr showing divergence. Bias remains up until price action confirms change in flow.
Result: The topping out process continues with resistance at 1.3230. 4hr RSI has crossed lower but no decent negative closes to confirm.
  • #6,383
  • May 13, 2013 11:39pm May 13, 2013 11:39pm
EUR GU EJ 14 May

EUR - D closed a doji after a decent lower wick on 10th. Moves below 1.2950 have been rejected twice now. Heading towards the W pivot 1.3038, that level provided support on 2nd and 3rd May. D has not yet signaled a buy, scalp buying from 4hr signal need to be aware of potential bounce at 1.3038.

GU - D closed negative after test of back of trend line.4hr flow lower high lower low. Bias down.

D closed a doji, double top. 4hr clearly shows the struggle at 132.30. No bias.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: eurusdh4.png Size: 39 KB
Click to Enlarge Name: gbpusdh4.png Size: 36 KB
Click to Enlarge Name: eurjpyh4.png Size: 36 KB
  • #6,384
  • May 14, 2013 3:01pm May 14, 2013 3:01pm
65 pips today..
GU Sell..

Any suggestions Dave ?
Attached Image (click to enlarge)
Click to Enlarge Name: gu sell.gif Size: 18 KB
My Mantra - Go with the flow until a key level is hit
  • #6,385
  • May 14, 2013 11:23pm May 14, 2013 11:23pm
Quoting money89
65 pips today.. GU Sell.. Any suggestions Dave ? {image}
Sorry didn't get the alert on phone that I normally do, prob just as well I would have been asleep!!!

Of the 3 pairs yesterday I thought GU would likely give the best trade so nice one. If you are still in you've had a small bounce, see 4hr chart, which is nothing to be worried about. W M1 is 1.5193 on the lows for the week of 23 April. For now I see no reason to change bias down and you could see how price reacts when we get there.

All said and done it is your (very nice) trade and if you don't exit I would be move stop to lock in some profits.

Once again nice one.
  • #6,386
  • May 14, 2013 11:57pm May 14, 2013 11:57pm
Recap 14 May

EUR - D closed a doji after a decent lower wick on 10th. Moves below 1.2950 have been rejected twice now. Heading towards the W pivot 1.3038, that level provided support on 2nd and 3rd May. D has not yet signaled a buy, scalp buying from 4hr signal need to be aware of potential bounce at 1.3038.
Result: The identified W pivot/1.3030 resistance area from early May held and we moved down from there.

GU - D closed negative after test of back of trend line.4hr flow lower high lower low. Bias down.
Result: On the day this was the only outright bias down we had of the three pairs, it played out nicely.

D closed a doji, double top. 4hr clearly shows the struggle at 132.30. No bias.
Result: Lower wicks from 9th on moves below 131.70. A 1hr hammer finally saw move up in return to trend.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: eurusdh1.png Size: 34 KB
Click to Enlarge Name: gbpusdh1.png Size: 32 KB
Click to Enlarge Name: eurjpyh1.png Size: 34 KB
  • #6,387
  • May 15, 2013 12:11am May 15, 2013 12:11am
EUR GU EJ 15 May

EUR - D closed negative. 4hr flow lower high lower low flow but positive divergence still there. December lows 1.2878 and W S1 1.2882 could provide support. Bias down.

GU - Bias down.

EJ - D closed a doji, 4hr negative divergence no real idea on these time frames what EJ wants to do. There are decent 1hr set ups that happen but get them wrong and you could get chopped. All in all we are above 50 RSI on all 3 time frames so bias up.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: eurusdh4.png Size: 38 KB
Click to Enlarge Name: gbpusdh4.png Size: 36 KB
Click to Enlarge Name: eurjpyh4.png Size: 35 KB
  • #6,388
  • May 15, 2013 11:38am May 15, 2013 11:38am
Recap 15 May - EJ lower high following divergence

EUR - D closed negative. 4hr flow lower high lower low flow but positive divergence still there. December lows 1.2878 and W S1 1.2882 could provide support. Bias down.
Result: Down bias played out.

GU - Bias down.
Result: Very choppy, yesterdays lows held (so far).

EJ - D closed a doji, 4hr negative divergence no real idea on these time frames what EJ wants to do. There are decent 1hr set ups that happen but get them wrong and you could get chopped. All in all we are above 50 RSI on all 3 time frames so bias up.
Result: Whilst we have bounced up the 4hr lower high following divergence gave a nice sell.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: eurusdh1.png Size: 34 KB
Click to Enlarge Name: gbpusdh1.png Size: 33 KB
Click to Enlarge Name: eurjpyh4.png Size: 36 KB
  • #6,389
  • May 15, 2013 2:10pm May 15, 2013 2:10pm
Thanks for the reply Dave. I've closed the GU trade for 70 pips overall.

Well, Here's today's trade. It's EU Sell. I've executed the position during new york session. Entry was late by few pips. But later price was reluctant to go south.
Couldn't understand what exactly made price react like that where there was no key level. Please do let me know.

The red dotted line is the SL
Attached Image (click to enlarge)
Click to Enlarge Name: eu trad.gif Size: 17 KB
My Mantra - Go with the flow until a key level is hit
  • #6,390
  • May 15, 2013 11:13pm May 15, 2013 11:13pm
Quoting money89
Thanks for the reply Dave. I've closed the GU trade for 70 pips overall. Well, Here's today's trade. It's EU Sell. I've executed the position during new york session. Entry was late by few pips. But later price was reluctant to go south. Couldn't understand what exactly made price react like that where there was no key level. Please do let me know. The red dotted line is the SL {image}
We had the support level drawn from the Dec lows. Sometimes price respects almost to the pip, sometimes slips through and rejects leaving a wick that after the fact you'll see as a fake move. Or perhaps like 19 mar '13 you think its through and next day rejects. Needing to build up a little more before it breaks the level. What i would definitely say is that having rejected that level once, with a decent range having been achieved already for the day, I would not have let a loss happen when it failed a couple of times and was now heading into London close and possible reversal time. Also you had a couple of hesitation candles on 1hr. I would have been at BE. You might of course still be in good luck bias of course is still down, I'd definitely be looking this morning to cover any possible rejection of level again.

Mrs V missed out in the morning on EUR with the lower high at the RN, and that was prob around the time of BOE speech, it happens. Back was playing up and only pitched for US session. She didn't like EUR and the EJ move was the days save.
  • #6,391
  • May 15, 2013 11:20pm May 15, 2013 11:20pm
EUR GU EJ 16 May

EUR - D closed with a lower wick rejecting move below the support level 1.2878. The move up has been weak. Bias down until flow changes to higher low.

GU - D closed a doji, 4hr shows how the move is running out of steam. Whilst this does give potential for counter trend buy viewing this just as pause in down trend. Bias down.

EJ - As often the case doing analysis does not quite play out but she does give solid signals as the day unfolds. Looking for reaction to the April highs that acted as support yesterday. No bias.
  • #6,392
  • May 16, 2013 11:50pm May 16, 2013 11:50pm
EUR GU EJ 16 May

EUR - D closed with a lower wick rejecting move below the support level 1.2878. The move up has been weak. Bias down until flow changes to higher low.

GU - D closed a doji, 4hr shows how the move is running out of steam. Whilst this does give potential for counter trend buy viewing this just as pause in down trend. Bias down.

EJ - As often the case doing analysis does not quite play out but she does give solid signals as the day unfolds. Looking for reaction to the April highs that acted as support yesterday. No bias.
  • #6,393
  • May 16, 2013 11:54pm May 16, 2013 11:54pm
Recap 16 May

EUR - D closed with a lower wick rejecting move below the support level 1.2878. The move up has been weak. Bias down until flow changes to higher low.
Result: D closed an inside candle doji, still below 8lwma and RSI 50 level. 4hr had a move up forming a double bottom then almost immediately an evening star pattern.

GU - D closed a doji, 4hr shows how the move is running out of steam. Whilst this does give potential for counter trend buy viewing this just as pause in down trend. Bias down.
Result: Down bias did not play out, support/W M1 held. D closed a large body doji, still below 8lwma and RSI 50 level but did signal as a 3 bar reversal. The 4hr signaled a counter trend buy which did allow a scalp trade but heading lower to signal resumption of move down.

EJ - As often the case doing analysis does not quite play out but she does give solid signals as the day unfolds. Looking for reaction to the April highs that acted as support yesterday. No bias.
Result: D closed an inside candle doji. 4hr appears to be forming a lower high.
  • #6,394
  • May 16, 2013 11:59pm May 16, 2013 11:59pm
EUR GU EJ 17 May

EUR - D has not signaled a buy, 4hr evening star pattern. Bias down with potential to move up from the lows 1.2840 area.

GU - 4hr about to close and signal sell. Bias down with potential to move up from the lows/W M1 1.5193 area.

EJ - Bias down with potential to bounce from the lows above 131.00.
  • #6,395
  • Edited 9:40am May 17, 2013 9:17am | Edited 9:40am
4 hr negative close just above Y's low/W_M1 after sideways action this morning. RSI below 50 level/ma.

1 hr solid neg close below 8lwma.

15 min lh little/no lower wick just below 1.5200. Sold at 5193 keeping a close eye in case price bounced up from the weekly pivot/Y's low. Out for +27 at MS2/5 day ADR.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: gu_20131705-h4.gif Size: 16 KB
Click to Enlarge Name: gu_20131705-h1.gif Size: 21 KB
Click to Enlarge Name: gu_20131705-m15.gif Size: 15 KB
Follow, don't anticipate.
  • #6,396
  • Edited 9:51am May 17, 2013 9:27am | Edited 9:51am
Quoting Ian
4 hr negative close just above Y's low/W_M1 after sideways action this morning. RSI below 50 level/ma. 1 hr solid neg close below 8lwma. 15 min lh little no lower wick just below 1.5200. Sold at 5193 keeping a close eye in case price bounced up from the weekly pivot/Y's low. Out for +27 at MS2/5 day ADR. {image} {image} {image}
A shame the hour before didn't close a bit lower through the 8lwma and with a smaller lower wick, would have given an entry on 15 min at 5230.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: gu_20131705-h1-1.gif Size: 21 KB
Click to Enlarge Name: gu_20131705-oanda.gif Size: 32 KB
Follow, don't anticipate.
  • #6,397
  • Edited 2:23am May 18, 2013 2:09am | Edited 2:23am
Quoting Ian
{quote} A shame the hour before didn't close a bit lower through the 8lwma and with a smaller lower wick, would have given an entry on 15 min at 5230. {image} {image}
Its been a very frustrating couple of weeks, for a couple of reasons Mrs V's time at the computer has been few and far between. Oh well for now thats the situation we are in and we have to live with it, until we can make another plan (which we are looking at).

Nice continuation trade you had.

I would like to think that for a number of reasons I'd have taken the first 15 min lower high also. In the bigger pic the D candles for move up did not inspire confidence that this was anything other than a CT rally. 4hr had signaled back down. London did nothing, we had a 1hr upper wick rejecting the D pivot going into US session. We had a down bias for the day and would have been 'looking' for reasons to sell.

Even before the neg 1hr close, the 1hr shooting star back into trend, then a 15 min lower high wave (not just a lower high in 2 or 3 adjoining candle wicks), at the extreme of price action (so it counts as a trade 1 from 1st page and also trade 2 following a 1hr shooting star) at the risk of repeating myself but back into the D trend, all together made that a trade in my book.

15 min chart - the x shows the higher low. If you had bought there (against the neg close 4hr, against the 1hr upper wick, against the D down bias) you'd have had to take the knock on the chin and sell the lower high arrow down back into trend.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: gbpusdh1.png Size: 37 KB
Click to Enlarge Name: gbpusdm15.png Size: 31 KB
  • #6,398
  • May 18, 2013 2:42am May 18, 2013 2:42am
Recap 17 May

EUR - D has not signaled a buy, 4hr evening star pattern. Bias down with potential to move up from the lows 1.2840 area.
Result: Down bias played out, negative close on 1hr followed by 15 min lower high (head and shoulders) at the upper extreme of recent price action..

GU - 4hr about to close and signal sell. Bias down with potential to move up from the lows/W M1 1.5193 area.
Result: Down bias played out, 1hr shooting star followed by 15 min lower high at the recent upper extreme of price action.

EJ - Bias down with potential to bounce from the lows above 131.00.
Result: As with EUR and GU the moves of the day were in the US session. Decent move down in line with bias to the recent support levels above 131.00 where we bounced.


I don't think it would be unreasonable to say that all 3 pairs moved in line with with the analysis done at the start of the day. Does this work every day as well as this, no if course not. On most days even if moves are counter to the initial view there is usually ample information to support following the counter trend trade rules. Proven support/resistance levels or W pivots. Change of flow on 1hr i.e. multiple candle patterns higher low/lower high, double bottom/top, evening/morning star patterns with 3 bar reversals.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: eurusdh1.png Size: 34 KB
Click to Enlarge Name: gbpusdh1.png Size: 36 KB
Click to Enlarge Name: eurjpyh1.png Size: 38 KB
  • #6,399
  • May 18, 2013 3:10am May 18, 2013 3:10am
Quoting Vantage
{quote} We had the support level drawn from the Dec lows. Sometimes price respects almost to the pip, sometimes slips through and rejects leaving a wick that after the fact you'll see as a fake move. Or perhaps like 19 mar '13 you think its through and next day rejects. Needing to build up a little more before it breaks the level. What i would definitely say is that having rejected that level once, with a decent range having been achieved already for the day, I would not have let a loss happen when it failed a couple of times and was now heading...
Hi money89

Further to the discussion we had earlier on about your eur trade.

In general if price is trending down the expectation is for the trend to continue, but you have to be aware of SR levels and protect yourself. You never know how big a bounce will be and dealing with relatively small stops as we do that is always an issue. My general advise would be when trading trend near a SR level to get stop to BE sooner rather than later.

Have a look at the 4hr charts. This is what I meant by the comment needing to build up a little more before it breaks the level. Only now when I read it back I realise that the comment is somewhat vague. It is a little difficult to explain the idea. Its a combo of trading the reaction to SR levels but also when price does react, in this case bounce higher, it sometimes just needs a little more time/space before the move down continues. Probably the big boys needing a little CT move to start getting guys interested so that can trade against them.

Sometimes when price pauses at a level you can genuinely get a CT trade in (buys in this case see arrow up). You always need to have the view that CT is a scalp (until D confirms) and thinking that you are dealing with a bounce (sell rallies in down trend buy dips in up trend), looking to get back into trend however your trade rules allow.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: eurusdh4.png Size: 36 KB
Click to Enlarge Name: gbpusdh4.png Size: 36 KB
  • #6,400
  • May 18, 2013 3:33am May 18, 2013 3:33am
Haven't posted these in a while, D charts with the SR levels we have. Generally I draw the SR levels from historical candle bodies and like EUR Fri that level gets respected almost to the pip.

The SR levels would always be a band from the original candles body to the extreme of the wicks e.g. see EUR level 1.3177. Thats the bodies from middle April, R level would be band from the candle bodies to the highs of 16/17 Apr.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: eurusddaily.png Size: 35 KB
Click to Enlarge Name: gbpusddaily.png Size: 34 KB
Click to Enlarge Name: eurjpydaily.png Size: 34 KB
1 trader viewing now