Highest Open / Lowest Open Trade

M5 with M15 shading.
Best of both worlds

Perfect setup and reward I broke my rule of sticking to one pair but I couldn't pass it up. Short at the highest open.

hi tooslow, when we switch to M15 or M5, what are the criteria that we are looking for ?

USDCAD setting up at open of the day.

WARNING

When price breaks through yesterday's high or low or makes a new high or low today, that is a breakout!
Trade the reversal with caution.

See notes on chart.

hi tooslow, how about the counting of candles in M15 or M5 ?

18 pips from GU hit the highest open went short and made profits.

http://www.forexfactory.com/showthre...85#post8945585

BE+5 Eur JPY Too slow do you wait for it to go back up to open and try a re entry?

Well done

Either a pair is at the level to enter via this method or it is not at the level.
The choice is binary.

Understood. Thank you.

Grabbed another 18 from the eur jpy, When i listen to your wise words I always do well.

WHY THE CANDLE SHOULD OPEN ABOVE THE HIGHEST OPEN

Highest Open trade is a reversal method.
We want to take advantage when price makes a new high and reverses.
We want price to be GOING DOWN!
When price opens ABOVE the highest open and goes down, the candle will be red.
The entry is the highest open.
Price is moving in our direction.

When price opens BELOW the highest open and goes up, the candle will be green.
We do not want to be entering short when the candle is green.
Price is not moving in our direction.

This method uses the H1 open as the entry level.
A lower time frame candle has to be used to determine direction of movement.
M15 gives us 4 chances to enter per hour.
M5 gives us 12 chances to enter per hour.
M1 gives us 60 chances to enter per hour.

When the current hour makes the highest open and price goes up, then the H1 candle is green.
Any entry taken above the highest open will be in the upper wick of the candle or in the candle body.
That is not desirable.

When the first M15 candle of the hour closes above the H1, the M15 candle will be green
If the next M15 candle goes down from its open, it will be red.
When the M15 candle reaches the highest open price ( which is the open of this H1 candle ) the H1 candle will be a doji ( close = open ) and be colorless.
If price continues down, both the M15 and H1 candles will be red and the trade will be in profit.



In above M15 chart, the shaded areas are H1 candles.
Bar[24] made the highest H1 open (top of shaded H1 candle)
Bar[23] did not open above highest H1 open, it did cross above and cross below this highest H1 open.
Bar[22] did not open above highest H1 open, it did cross above highest H1.
Bar[21] opened above the highest H1 open (top of shaded H1 candle) and gave a chance to enter.
When price crossed below the highest H1 open, both M15 and H1 were red.

Yes, you could have entered on bars 23 and 22.
Those would have be entered in the right place but not at the right time.

Does this explanation of how to trade the Highest Open answer your questions?

Price has not moved 18 pips.
How are you counting pips?

I use the mt4 points thing on the profit column, is that not what a pip is? my life is a lie

Profit column is in dollars, ( or your currency ), not pips.

If you right click, under "profit" you can change it from pips to currency. :-)