Highest Open / Lowest Open Trade

On this one (NZDJPY), the warning is most definite - ''H1 Low Breakout''. Rule #1, no trade.

PLUS, even if the trade had been legit, there is no way you would have been entering there anyway. Your entry is long at the new H1 Low (82.404).

Yes.

@lemercenaire Thank you for your explanations but sorry I don't understand when I must enter a trade (:

Could you post a chart with a long trade example with text explanations? If the price go up on this bar... and if there is no text as 'H1 Low Breakout'... and if... we can take a long trade at the open/close on this bar.

No problem. I am on my phone just now but I will post an example or whatever when I am at my main screens.

Please read POST #1.

Who is taking the 10 trade challenge the week of December 18, 2016?

During the challenge you are only to trade the same pair.
Beginners do not get to trade multiple pairs until they have mastered trading one single pair.
GREEN PIPS TO ALL.
Cheers!

Right. Of course, you must look at this in conjunction with Post #1 c/w MichaelG's document.

I am not going to go into a blow-by-blow breakdown of a trade example, as (a) the markets are closed and (b) even if they weren't, if I saw a trade happening, I'd be more inclined to, you know - trade it - rather than annotate a description. Plus, as we have said here many times, we do not spoon feed...

What I will do, is give you a quick graphic presentation I have used before. If I could remember what post I had stuck it on originally, I'd point you in the direction but you lucked out, as I can't remember and I'm certainly not going to go look for it now.

So. What I've got below on the first chart, is GBPUSD on the H1 time-frame. I am going to stay on the H1 for now. The two dotted horizontal lines are the last Highest Open and the last Lowest Open levels...as the move set up.


The last Highest Open is marked with the yellow square.
You can see that price then dropped back. That level, however stays the same - that is your ''line-in-the-sand''.
In the next hour, price then reverts to the original direction and rises, eventually moving up and over that line.
(You would now at this point switch to the m15 tf but as I said, for the purposes of this demonstration, I am staying on the H1 - I'll come back to this point later).
The next bar opens and as you can see, price then drops...
As it does so, it crosses the dotted yellow line - the last Highest H1 Open level, that ''line-in-the-sand''. As it does so, you enter your trade HERE, marked by the red circle.

On the chart below, you will see a long trade.


This time, it is the last Lowest Open that is marked with the yellow square.
Price drops down from there and the level remains.
Price reverses and as it crosses that marked level, once again marked by the red circle, you enter.

Now - caveats. Obviously on the H1 chart here, there is a new H1 open formed on the bars that crossed the line - in these examples, I am asking you to ignore those. If you have to, then imagine that they are the new m15 bar's opens.
It would have been ideal if I could have found examples where price crossed back across in the same bar that formed the new levels but I couldn't spare the time, nor did I have the inclination, to be honest. Them's the breaks, live with it.

Also, in the real-life situation, once price crossed the new H1 Open level for the first time, you would switch to the m15 chart. I know you will see others go to the m5 or even m1 - don't do that until you have totally understood what you are doing. For now, stick to the m15.

Once on the m15 tf, you wait...

You wait till a new m15 bar/candle opens in that area above/below the entry level.
Once that happens, you have met all your entry criteria and you are ready to go in when / if price crosses back over the line. Not a pip before, not a pip after...when it crosses....at the red circle.

Ok. That'll do ya.
Hope it helps.

Now go read Post #1.

G'day TooSlow,
Like what your doing here friend,will be hanging around a bit if thats OK,GW.

Hi can someone please point me to the indi that shows +/- 5pip increments after the entry.
many thanks

this...

Welcome to the thread, Ghost Walker.
This is a friendly thread.
Please read POST #1.
Then take the 10 TRADE CHALLENGE.
The only way to learn HOLO is to TRADE HOLO.
Green pips to you.
Cheers!

Thank you for assisting a fellow trader, sam69.

Welcome aboard the good ship HOLO, Ghost Walker. Cap'n TooSlow will steer you right!

A moment frozen in time but one which gives us interesting possibilities once the market opens (once that idiotic spread sorts itself out anyway).

What we see on the H1:


On the big picture of H4:


On the even bigger picture of the Daily:


Just to round it all off - here's the Weekly:


May all go to pot if it gaps on the open but we shall see where the rabbit hole takes us, one way or the other...

Hey guys, I am new to this thread and I repeatedly read couple of first pages. However, I am still not sure if I have to wait until M15 candle closes above H1 highest open (for short trade) or it is enough if price goes up couple of pips and then turns back to H1 highest open (when I pull the trigger). If the second option is also possible how much pips should I wait for confirmation? Thank you.

Hi there. You wait until an m15 candle OPENS in the area of interest. It does NOT need to close.

Thanks, so is it ok to trade the first M15 candle that opens at the same level as new high of H1 candle?

Simple. Buy low. Sell high. Forex easy.

I like sells top and buys bottom.

System easy. Making moneys easy.

Easier to see with a couple of examples...

#1:
As you can see at the top left, these three moves are not entries. (They may well have been on the m5 or m1 but as we are talking about m15 here, they are not.)
Then we get the green candle in the yellow box, which does open above the new Higher Open, so now we have an entry set-up. Once price drops down over the trigger line, we enter.
You can also see the examples at the new Lower Open - none of these are entries.



#2:
Now, this is an example that isn't as straightforward as it seems. Again, top left, we get what looks like an entry signal, however in this case, we actually have a breakout candle and if price had continued straight down, we should not enter, or at least be very cautious, as per Rule #1.
However, as price continues to move in the ''Area of Interest'', the second red candle opens lower and this gives us an entry signal. Price would bounce around for a couple of tries before finally breaking down.
Once again, at the Lower Open, none of these are m15 entries.



#3:
A close-up look at another short entry. The red candle opens above the new Higher Open level and we are good to go, once price crosses the new Higher Open line.
Again, for the purposes of this example, we will assume that this is not an H1 breakout situation.

many thanks Sam69