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Higher low, lower high system

  • #6,561
  • Aug 9, 2013 12:21am Aug 9, 2013 12:21am
Question on absolute basics of method


Vantages post I was refering to..

V..... was discussing general trading ideas with someone that is just starting his journey. It often helps to tie up concepts with a concise summary.

It comes down to: 1hr flow in line with D view. Essentially thats it.

If it appears that D view is not working then counter trend rules come into play: proven support and resistance levels and W pivots, when price has proven over a period of several hours that it does not want to continue in trend (specifically not 1 x 1hr candle).

We really want to see good 1hr flow.

Some examples to expand the idea. Taking my early morning view of 21 June as a basis for discussion. Going into the day I made this general comment:

It does not seem that there were strong Asian buyers for EUR and GU this morning. Makes me think there is chance of move down continuing. We'll see what candles give us.

The general view for EUR was:
EUR - D closed negative with a decent lower wick, RSI has crossed below 50 level. 4hr RSI crossed up but could easily flip over. We are moving up to a support/resistance level around W M2 1.3260 and if we are headed lower that would be a level to watch out for. No bias can go either way.

Going into LO on 4hr we had a shooting star. On 1hr the arrows up show the sequence of higher lows and higher highs i.e. short term uptrend. The x shows where the flow shows first change with a shooting star that makes a lower high, the arrows down show where this one hour flow changed. So if your D view was down you could be looking to enter after the 1hr shooting star marked X as the immediate flow is back in line with the biggerpicture. There is another 1hr lower high going into the US session.

So now D down, 4hr shooting star before London open and a 2nd going into US open, 1hr flow confirming move down.
  • #6,562
  • Aug 9, 2013 12:45am Aug 9, 2013 12:45am
Hi danc

Its the blog post link http://vantagefx.blogspot.com/2013/0...of-method.html
  • #6,563
  • Aug 9, 2013 12:49am Aug 9, 2013 12:49am
9 Aug 2013

EUR - D closed positive and we are right on the 18/19 June highs. Bias up but we can obviously react to the resistance level 1.3400/3415.

GU - D closed marginally positive, no real progress higher, struggling with the May highs. Bias up but we can obviously react lower to the resistance level 1.5570/5600.

EJ - D closed positive reacting to the previously mentioned July lows. The 4hr is on a lower high after moving into the 29-31 July lows (support now resistance?). It appears the D is a move up counter trend and an opportunity to sell a rally. One of those tipping points, a positive close here on 4hr puts us on a higher low and a change in flow for the short term at least.

EURAUD - D closed negative. 4hr lower high lower low, last close a doji. Asian session shown many times it will move EURAUD when it wants to, but not today. Its been a struggle and move up would be no surprise but bias down.

AUD - D closed positive. 4hr higher high higher low. We are at the 18, 25 July lows (support now resistance?). Bias up but we can obviously react lower to the resistance level 0.9130/9150.
  • #6,564
  • Aug 9, 2013 1:33am Aug 9, 2013 1:33am
Its hard to explain I suppose but yesterday Mrs V exercised a peremptory (we watched The Good Wife last night and that is as good a word as any to explain this). Like a game of ping pong I made a mistake on GU so she is allowed a challenge. She amended our stop yesterday so we are still in EURAUD trade, target the next W pivot 1.4610.
  • #6,565
  • Aug 9, 2013 2:14am Aug 9, 2013 2:14am
Its hard to explain I suppose but yesterday Mrs V exercised a peremptory (we watched The Good Wife last night and that is as good a word as any to explain this). Like a game of ping pong I made a mistake on GU so she is allowed a challenge. She amended our stop yesterday so we are still in EURAUD trade, target the next W pivot 1.4610.[/quote]
Well done Mrs V, its well on its way. I also learned a new word
  • #6,566
  • Aug 9, 2013 2:30am Aug 9, 2013 2:30am
Quoting mt2
Well done Mrs V, its well on its way. I also learned a new word
Yes stopping at S1/25 psych level for now.
  • #6,567
  • Aug 9, 2013 3:20am Aug 9, 2013 3:20am
Quoting Vantage
{quote} Yes stopping at S1/25 psych level for now.

Stopped at S1 for 2 hours and whilst its highly likely to go lower out at +87. Its a holiday here so probably done for the day. Well done on this call Mrs V.
Attached Image (click to enlarge)
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  • #6,568
  • Aug 9, 2013 12:35pm Aug 9, 2013 12:35pm
Quoting Vantage
{quote} Stopped at S1 for 2 hours and whilst its highly likely to go lower out at +87. Its a holiday here so probably done for the day. Well done on this call Mrs V. {image}
Nice one, the days of the 20 pip bank hall of fame are a distant memory now..

Quoting Vantage
EJ - D closed positive reacting to the previously mentioned July lows. The 4hr is on a lower high after moving into the 29-31 July lows (support now resistance?). It appears the D is a move up counter trend and an opportunity to sell a rally. One of those tipping points, a positive close here on 4hr puts us on a higher low and a change in flow for the short term at least.

Got short EJ at 129.14 this morning.

Daily pos close was well short of the 8lwma and RSI. Price was failing at Y's high and we eventually got a 1hr LH engulfing close through the 8lwma and RSI heading down below 50 level and MA. We were on a potential 4hr HL but it couldn't break higher.

My original target was Y's low/W_S2 at 128.25 but I closed out for +52 as we had hit 5 day ADR, were bouncing off daily S1/50 level, it was London Close time and I had to leave the screen.
Attached Image(s) (click to enlarge)
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Follow, don't anticipate.
  • #6,569
  • Aug 9, 2013 2:31pm Aug 9, 2013 2:31pm
Quoting Vantage
{quote} Stopped at S1 for 2 hours and whilst its highly likely to go lower out at +87. Its a holiday here so probably done for the day. Well done on this call Mrs V. {image}
Those AUD trades kept on running, EA currently up over 200 pips from your entry yesterday, AU now at +120 from my entry yesterday. Just wondering, V., how you decide whether or not to leave a trade running overnight? Any thoughts would be gratefully appreciated.
Follow, don't anticipate.
  • #6,570
  • Aug 10, 2013 4:25am Aug 10, 2013 4:25am
Quoting Ian
{quote} Nice one, the days of the 20 pip bank hall of fame are a distant memory now.. {quote} Got short EJ at 129.14 this morning. Daily pos close was well short of the 8lwma and RSI. Price was failing at Y's high and we eventually got a 1hr LH engulfing close through the 8lwma and RSI heading down below 50 level and MA. We were on a potential 4hr HL but it couldn't break higher. My original target was Y's low/W_S2 at 128.25 but I closed out for +52 as we had hit 5 day ADR, were bouncing off daily S1/50 level, it was London Close time...
Help me, Pls. How can I determine the top or bottom of the indicator?
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MQL4, Amibroker
  • #6,571
  • Aug 11, 2013 3:12am Aug 11, 2013 3:12am
Quoting Ian
Got short EJ at 129.14 this morning. Daily pos close was well short of the 8lwma and RSI. Price was failing at Y's high and we eventually got a 1hr LH engulfing close through the 8lwma and RSI heading down below 50 level and MA. We were on a potential 4hr HL but it couldn't break higher. My original target was Y's low/W_S2 at 128.25 but I closed out for +52 as we had hit 5 day ADR, were bouncing off daily S1/50 level, it was London Close time and I had to leave the screen.
Great trade.
  • #6,572
  • Aug 11, 2013 3:34am Aug 11, 2013 3:34am
Quoting Ian
{quote} Those AUD trades kept on running, EA currently up over 200 pips from your entry yesterday, AU now at +120 from my entry yesterday. Just wondering, V., how you decide whether or not to leave a trade running overnight? Any thoughts would be gratefully appreciated.
Hi Ian
Its still something our (hopefully previous) scalping focus makes us work hard on. It is far from a natural thing for me. We are trying to focus more on trades running to the next identified support/resistance level and of course the W pivots. So it would depend on where we are in move, trying to look at our trade set up rules (D hl/lh, rsi cross 8lwma cross etc etc) for trend or CT and trying to get a better balance between scalping and letting run a little.

EURAUD hit our bigger pic target just much, much quicker than expected. Looking at D chart it stopped basically to the pip at the 12 July high.
  • #6,573
  • Aug 11, 2013 10:53am Aug 11, 2013 10:53am
Quoting TieuHo
{quote} Help me, Pls. How can I determine the top or bottom of the indicator? {image}
I'm not quite sure what you mean. This is a price action based thread where the use of moving averages and RSI just provide confirmation of direction and momentum to help with trade setups. I can't see from your chart what the indicator is anyway so not sure how to help.
Follow, don't anticipate.
  • #6,574
  • Aug 11, 2013 2:07pm Aug 11, 2013 2:07pm
Quoting Vantage
{quote} Hi Ian Its still something our (hopefully previous) scalping focus makes us work hard on. It is far from a natural thing for me. We are trying to focus more on trades running to the next identified support/resistance level and of course the W pivots. So it would depend on where we are in move, trying to look at our trade set up rules (D hl/lh, rsi cross 8lwma cross etc etc) for trend or CT and trying to get a better balance between scalping and letting run a little. EURAUD hit our bigger pic target just much, much quicker than expected....
Makes perfect sense, great stuff, thanks.
Follow, don't anticipate.
  • #6,575
  • Aug 11, 2013 11:58pm Aug 11, 2013 11:58pm
12 Aug 2013
Click on date for D + 1hr charts.

EUR - D closed negative reacting to the June high, RSI showing divergence and crossed below its signal line. The 1hr did not want to go higher for 4 hrs then gave a 3 bar reversal negative close going into the US open. We have W pivot at 1.3323 and a support/resistance level at 1.3300. Only time will tell if this is dip in uptrend or start of move down. No bias can go either way.

GU - D closed an inside candle rejecting the identified resistance level. 4hr RSI crossed lower after divergence. We pulled back to an area 1.5490 that gave support in June-Aug 2012. I suspect down but no bias can go either way.

EJ - D a lower high negative close. 4hr on lower high lower low but showing positive divergence. For now we have stopped at the 10 July low with our next identified support level about 100 pips lower. Bias down.

EURAUD - D closed an over sized candle at the 12 July high. Often these over sized candles do not follow through immediately. A bounce up would not be unexpected but bias down.

AUD - D closed positive. 4hr shows a series of 'weak' negative closes that could not close below the 8lwma. After several days straight up a pause/retrace is due but bias remains up.
  • #6,576
  • Aug 12, 2013 12:07am Aug 12, 2013 12:07am
Quoting TieuHo
{quote} Help me, Pls. How can I determine the top or bottom of the indicator? {image}

I will try and help anybody as much as I can. But questions like this have no place in this thread (or any other) and make me think that you are one of those people that deliberately tried to disrupt the Another Simple System 15 min TF thread.

If I'm wrong my apologies but sometimes reading charts certain set ups spring out at you that something is going to happen, reading this post just springs out at me.
  • #6,577
  • Aug 12, 2013 12:13pm Aug 12, 2013 12:13pm
Bought EA at 1.4497. 4hr RSI crossed up at the previously mentioned support level. 1hr hl from this morning. As usual will post charts if we progress.

Sold AUD 4hr lower high 0.9151, also read Ralph Shells COT report.
  • #6,578
  • Aug 12, 2013 5:22pm Aug 12, 2013 5:22pm
Quoting Vantage
Bought EA at 1.4497. 4hr RSI crossed up at the previously mentioned support level. 1hr hl from this morning. As usual will post charts if we progress. Sold AUD 4hr lower high 0.9151, also read Ralph Shells COT report.

I was bit hesitant to take up the EA trade as there wasn't any confirmation of bull signal in Daily..
My Mantra - Go with the flow until a key level is hit
  • #6,579
  • Aug 12, 2013 6:37pm Aug 12, 2013 6:37pm
Quoting money89
{quote} I was bit hesitant to take up the EA trade as there wasn't any confirmation of bull signal in Daily..
Totally agree no D candle signal. That is as good a SR level as you'll see on a chart IMHO though. In terms of our CT rules we have a proven SR level. London couldn't take it lower, US tried until the post news move up to give the hl. The hl spread over the day so price has proven over hours that it didn't want to go lower.

Trades haven't worked yet as stops are not yet at BE.

PS the EA buy was Mrs V's call and the AUD sell mine. Due to who was in front of the computer when they happened.
  • #6,580
  • Aug 12, 2013 6:47pm Aug 12, 2013 6:47pm
Quoting Ian
{quote} Makes perfect sense, great stuff, thanks.

Sorry forgot to mention the fact that so much of the EA and AUD moves will happen in Asian sessions if you want to trade them you are almost forced to leave trades overnight.
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