Trading is as simple as 1-2-3

Q) When is working this trading system and when not?

A) This setup (system) happens daily on each pair. One must select the best pairs to trade.


Q) Any EA?

A) No EA has been written for this as far as I know.


Q) What is the "close enough to HH / LL "?

A) That is a judgement call. For an open 10 pips away from the daily high or daily low, a 5 pip move toward the daily high or daily low would be close enough.


An EA for this would have to calculate position size based on risk and stop loss price. The profit target should be an input with default set to 5 pips. Close enough should be an input - it should be a percentage retrace of distance from H1 open price to the daily high or daily low of H1 bar[1] with default set to 50%. Another feature of the EA (or separate EA) could be an entry set at a fixed distance from the daily high or daily low of H1 bar[1].

Good luck with your EA.

I repeat this so new comers don't have to go back to the first post.


A bar makes a NEW DAILY high and closes. Next bar fails to make a higher high and reverses. Sell when price drops below the open price of the current bar.

A bar makes a NEW DAILY low and closes. Next bar fails to make a lower low and reverses. Buy when price rises above the open price of the current bar.

Let me rephrase in the form of yes/no or true/false questions.

1) Did a new daily high or new daily low happen during the previous bar. If YES/TRUE go to question 2, otherwise find another pair.

2) Did this bar test ( get near ) the new daily high or new daily low of the previous bar. If YES/TRUE go to question 3, otherwise find another pair.

3) Has price returned to the open price of the current bar. If YES/TRUE enter the trade in the direction price is crossing the open, otherwise do not enter the trade.

"Successful people ask better questions, and as a result, they get better answers." - Tony Robbins

Socratic method is named after the classical Greek philosopher Socrates. It is a form of inquiry and discussion between individuals, based on asking and answering questions to stimulate critical thinking and to illuminate ideas.


Please understand none of this is original or new and this is presented for EDUCATIONAL PURPOSES ONLY. You may find your results may differ. Please check with an accredited financial specialist before using real money. FOREX trading can be risky. YOU HAVE BEEN WARNED!

Next hour.

Waiting pays off.

Next hour.

Next hour.

Letting the price test the new daily low. The indicator added at the top shows how far price is from the new daily high (HiCl) and from the new daily low (ClLo). It also shows how far from the daily open (ClOp) as well as current price. The question about the EA prompted this addition.

"Successful people ask better questions, and as a result, they get better answers." - Tony Robbins

Socratic method is named after the classical Greek philosopher Socrates. It is a form of inquiry and discussion between individuals, based on asking and answering questions to stimulate critical thinking and to illuminate ideas.

Price dropped to within 8 pips of the new daily low before reversing. That can be considered a test. Waiting for entry.

A bar makes a NEW DAILY low and closes. Next bar fails to make a lower low and reverses. Buy when price rises above the open price of the current bar.

Price dropped to within 5 pips of the new daily low before reversing. That can be considered another test. Waiting for entry. Waiting is very important.

Next hour.

Trading GBPCHF had been discussed recently. Next hour possibility.

Update.

Good use of ***'s statistical indicators.

I repeat this so new comers don't have to go back to the first post.


A bar makes a NEW DAILY high and closes. Next bar fails to make a higher high and reverses. Sell when price drops below the open price of the current bar.

A bar makes a NEW DAILY low and closes. Next bar fails to make a lower low and reverses. Buy when price rises above the open price of the current bar.

Let me rephrase in the form of yes/no or true/false questions.

1) Did a new daily high or new daily low happen during the previous bar. If YES/TRUE go to question 2, otherwise find another pair.

2) Did this bar test ( get near ) the new daily high or new daily low of the previous bar. If YES/TRUE go to question 3, otherwise find another pair.

3) Has price returned to the open price of the current bar. If YES/TRUE enter the trade in the direction price is crossing the open, otherwise do not enter the trade.

"Successful people ask better questions, and as a result, they get better answers." - Tony Robbins

Socratic method is named after the classical Greek philosopher Socrates. It is a form of inquiry and discussion between individuals, based on asking and answering questions to stimulate critical thinking and to illuminate ideas.


Please understand none of this is original or new and this is presented for EDUCATIONAL PURPOSES ONLY. You may find your results may differ. Please check with an accredited financial specialist before using real money. FOREX trading can be risky. YOU HAVE BEEN WARNED!

In the money. Protective stop set.

Next hour.

What happened here is the main reason for protective stops. One must protect their account and their profits. Without stops, instead of making a profit, there would have been a loss. Waiting for next hour...

EDIT

What were the clues that this trade may reverse?


"Successful people ask better questions, and as a result, they get better answers." - Tony Robbins

Socratic method is named after the classical Greek philosopher Socrates. It is a form of inquiry and discussion between individuals, based on asking and answering questions to stimulate critical thinking and to illuminate ideas.

Update.

Wash. Rinse. Repeat.

Give and take. Give and take.