Highest Open / Lowest Open Trade

I don't know how I found this thread. Thanks Lemercenaire. Thanks TooSlow. I don't know where to find the POST #1. Is it the first post on this thread? If so, I shall look. I have seen this thread yesterday. I was a little lost. But I will try again. Thank you. frisco

I HAVE READ POST #1 AND THE EXAMPLE LINKS BUT I STILL HAVE A QUESTION

Hmm, now I have big letters. Dang! OK. I think I understand the premise of the Hi-hi, hi-lo. I record the highest high and lowest high(?) of the first hour of trading after the open (5 PM EST).
i will re-read it until things "click". The part about using M15 confused me. I will study the charts now. just a rambling commentary.

I am appealing to anyone who is fluent with this system. Still trying to work out the method.

Sittin here eating canned mushroom soup. Wish I had some Mexican mushrooms.( after watching Hamilton's Cornucopia)They might trigger a Hi/Lo epiphany~

I have reread the instructions a few times. Still missing something. Wondering what yesterdays Ho/lo has on today's trading. From what I can discern, After the first of hour of trading is when you have PX levels to work with. If after four 15 minute bars come and no trade yet triggered, The new (Second H1 bar) H1 paints a new level? and if no trade triggered in the 3rd hour, then watch fourth hour for trigger.

So I am thinking that yesterdays Hi/Lo gives us two levels where "breakouts could occur, thus voiding any trade. Hence, if first hour is below yesterdays Low, then that is a breakout, and no trade. Vice-a versa on yesterdays high. If PX opens above yesterdays high, then that too is a breakout, which means, no trade.
But what if, as often happens, After the first hour, PX settles down from a (HIGH) breakout, then the second H1 bar opens within yesterdays high -Low Zone, Does that make that new "area of interest" a valid area to look for a trade using say 15 minute bars?

The other thing I am confused about is talk about m5 BARS. can I use 5 minute bars instead of15 minute bars? Or BOTH? (Logic tells me...one or the other, not both)
Now here is another innerestin point. My computer is Pacific Time. So my daily Bars Begin at Midnite PST. With Globex trading. (24 hours), I suppose I could begin and end at just about any hour. The method should work regardless of what I choose as my first hour of a new day. Make sense?
I apologize for being long-winded.
I would like to inquire as to are any of you trading this on a daily basis? If so, then it must be profitable. I would like to hear from someone who is trading it. Now, I WILL MOST DEFINITELY, Begin trading this (on my sim account) once I get the method down.
LAST COMMENT. THERE ARE MANY MANY pages for this thread, so I will be busy for awhile until I can comprehend the method & the rules with clarity.
CAIO Frisco

Hi Frisco. My, you are tying yourself in knots here!

So, for the sake of your sanity, I will give you a small breakdown into the bones of it all. (Please note, that I have done this a good few times already in the thread and that after this, the info will be put into a Word doc and stuck to Post#1 and/or paperclip).

First off - take a deep breath!!!

You are over-thinking this way too much. Now, I must admit that I did the same thing when I first joined TooSlow's crew here - I just couldn't get my head around the Higher Highs, Lower Lows, New Higher Lows, New Lower Highs, etc etc et al (and I've been in this game for nearly two decades now! I had to take a step back and strip it down - and all of a sudden, lightbulb moment.

Here's what I did and what you should do:

Blank chart.
Switch to bars.
No colour up, no colour down - zero distractions.
Bring up H1 tf.
Bring up two yellow dashed or dotted horizontal lines.
Right, now you're set...

Now moving through the day, move the yellow lines to each successive New Higher Open and New Lowest Open.
At some point you will see that after one of these points, price will break these levels - watch how it behaves.
At the point that price crosses back over that level, you would enter your trade (with one caveat that we will come back to in a minute).

Here's a couple of example charts from Cable trades mid-way through last year:



So price has gone up over the last New Higher Open and come back down. You would enter your trade at the point price crosses the line - at the red circle.
You would then manage your trade as it moves on.

Now as the day moves on, with that first trade ignored for the purposes of this example, here's another trade set-up - this time a long entry:



You can see again, that the yellow line marks the level, this time of the last New Lowest Open.
Price moves on and then breaks back up through that level. You would enter there, at that red circle.

So that's HOLO at its simplest level. I would seriously suggest taking a day or two at least to sit in front of your charts and watch this happen live. Stay on the H1 tf. Watch price move across those lines.

At this point, it is fine to watch a number of pairs at a time, to get as many examples as possible.

OK - you've done that and you've had your own ''lightbulb'' moment. Now you're ready to take the next step.

Watch your charts for the new day. See price set us up with an opportunity as it crosses (for instance) an New Higher Open level. Now here comes that caveat...
Switch your chart to the 15min tf.
Nothing has changed as far as the levels go - price is the same on all time frames. You are simply down on the 15min chart.

Now you wait...

You are waiting for a 15 min candle / bar to OPEN in this area. (Forget about any lower tf for now).
If / when a candle opens, now you are fully ready to go.
Once price crosses over the entry level, you pull the trigger.

If a new candle / bar does not open in this area, moving back across the line before it does so, then you do not enter.


That's all there is to it (at least for the entry part of the equation - for trade management, see Post #1 and MichaelG's doc).

Once you have gained a bit of experience with it, you can begin to look for entries on the 5min chart (some of us will go to the 1min at times but this is extreme and not recommended, at least for a good while yet).


As for breakouts, again, it's simple. The rule is in place. If the H1 candle is a BreakOut candle - do not enter. A BreakOut being defined as a candle that makes a high or low, higher or lower than any made in that day so far.


I would also suggest that you don't fret too much about the previous day's Highs and Lows etc for now, they are there to fine-tune your thinking but are not really necessary initially.


Once you've run things this way for a week, stick on the most basic of indicators and template and do exactly the same - just this time, using the indicator and template, not the naked chart.


The last point to make is that of the broker's day. I am in the UK, TooSlow, Wannalearn, Hal and others are in the US, while a few are in the Southern Hemisphere. All have come across this issue. You trade what's in front of you. Southern Hemisphere guys have more of a problem usually, as when they are wanting to get in with us, there is no info on their charts yet, while we have a full day behind us. I say to them and you can do the same if you are able (I know it can be a problem for traders in the US to open any kind of overseas broker acc), that you can put your indicator on any broker platform but place the trades on your own live account.

That aside, however, for all purposes, the start-of-day is the broker's start time.

I hope that this has gone some way towards getting you on the right track.

Now, empty your mind - forget all that other stuff you have learned and tried and used before and commit to and trust the method. It works!!!

I am a full-time trader, coming from a fund background and have used HOLO-type methods before. All of them work.

This is beautiful in its simplicity.

Go for it.

Hey Lemercenaire, OK soldier, I am on board, I did not read your post (above) yet. but will do shortly. Just wanted to thank you before you logged off...and to say Hi from Gray & rainy San Francisco, Calif. Dang!you just logged off....thanks anyway. I will read your post and hopefully things will click. I have one question for you. Am I to understand that this method of TooSlow's s a daily traading "staple" which you and other traders rely on to accumulate pips? (I actually don't know what a pip is, other than a form of metric for FOREX. I don't know if a USD/CAD pip is the same value as a USD /JAP pip.)

Further. when describing the trailing stop or the "B/E plus 5 pips, 10pips etc.. I was thinking, Wow, 5 ticks is almost a sure stop-out every time you put on a trade. SO, logic tells me that a pip has to be valued with multiple ticks. I can google this and find out how much a pip is worth. I am not lazy. (just a bit confused)
Anyway, I have been playing with stock & futures charts for years with no real success. I got back on board after my bone marrow transplant 1 year ago. With a commitment to succeed...with your help and TooSlow's generous sharing of his method. I am truly grateful/
I repeat my question> Is this a daily staple to your trading plan? I am curious to see results over a given time period...an average week..an average month. Anyway, thanks again.
So mercenary, I hope to hear back from you soon.

Yes, this is a "daily staple".
This works each and every day the market is open.
Lemercenaire, spelled it out for you.
Now, it is up to you to watch, study and learn.
The only way to learn trading is to trade.
Take the 10 Trade Challenge.

Who is taking the 10 trade challenge the week of JANUARY 8, 2017?

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!

Very interesting concept. I have only read post 1 and 2714 by MichaelG and I understand the method completely. My answer to your poll question is yes this is a simple system. Good job! I am going to keep an eye out for these reversals while trading my own system and I will read more if the thread in the coming days.

This is the best description I have seen here yet--- but just to clarify the definition for the break out candle is

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.


regards

Lumercenaire advises:

"Once price crosses over the entry level, you pull the trigger.

If a new candle / bar does not open in this area, moving back across the line before it does so, then you do not enter."

I just spent time looking at the BP 1 hour & 15 min charts side by side, marking and following px.. I see I missed TooSlow and others who posted while I worked on charts. Still not clear on what Lemercenaire says about using 15 minute tf. That a new bar must open in the zone, then reverse back through the trigger area to enter a new trade. (I don't know if I got that right...) So, it sounds as if, on a 15 minute (or 5 minute or whatever chart you choose to use) if Price trades through lets say the Lower open line, then goes down a few ticks, then reverses back UP through the Lower open level...that is NOT a TRADE unless it is a new bar which opened below the (Lower low level) trigger .
I am confused about this point. I am now going back to page one and I will keep reading until someone makes it clear. Trade management should be easy to figure out once I know the entry method.
Oh...another point I am not clear on. The Breakout candle spoken of. I am trying to picture that. Let's say the PX (price) moves up through Highest High Open level...and when it stops, it stops BELOW yesterdays high, then after consolidating, it moves back down through the Highest Hi trigger, thus triggering a trade entry.
Now, if that PX had moved up through the Highest Hi hourly Open, then continued through yesterdays high level before reversing back down through the HiHi trigger level,....That constitutes a breakout...right? meaning (as TooSlow advises) "proceed with caution" . (I interpret this as follows: Don't take the trade unless you have enough screen time & experience to know whether or not it has a higher probability of succeeding. )

Anyway. There are enough pages in this thread that I should not have to bother you guys. I will also look at POST 2714. (Thanks Wizlon32~) My answer is in here somewhere. I shall seek & hopefully I shall find before market open Sunday night.

Do any of you folks use SIERRA CHARTS for FX? or is is TradeStation, Meta Trader & Ninja?
One open question to all traders who employ this method. If any of you are using SIERRA CHARTS, I would like to hear from you. I am pretty new with Sierra. I had Trade Station back in the early 90's. So now I have Sierra. It looks like a good program with lots of bells & whistles. I am wondering if Sierra is capable of using an EA of this method? Anyone have a clue...cue me in please. Thanks again to Lumercenaire, TooSlow and now Wiz-kid.
Frisco

adr

Adr?

Hi again, Frisco. Sorry missed your post - had to duck out.

As TS says, yes, this is a trading staple. You can use this method on its own and get a very good return.

Personally, HOLO forms part of a selection of methods for me, including HOLO's cousin, 1-2-3. All the methods overlap and complement one another and fill all the ''spaces'' in my trading day. All of that is immaterial however and is in no way meant to detract from HOLO's effectiveness.

As for my results, I have in the past here given a quick run-down of my strike-rate etc and that's in there if you wish to look hard enough. I won't be doing so again, as it truly doesn't and shouldn't matter. We will talk of profit in pips, never dollar amounts. Ever. We do things differently here. This is not a pissing contest. We will show the method and show possible set-ups coming as and when we see them, however, we will not spoon-feed. We want you guys to learn by doing. This is why you should - after taking a few days to do as I suggest in the previous post - take the 10-Trade Challenge.

Every trader is different. Every trader here will get different results. This is no reflection on the method - every trader will get the same entry, to within broker variant pip-levels, however as you touched upon, the trade management is one area where there are slight variations on a theme for many of us.

The BE+1 / BE+5 may take some getting used to but this is a major part of HOLO - getting into and protecting profit as quickly as possible. Twenty +1's is +20 pips. Do that every day and use compounding and your account will look very healthy, very quickly. All those +1's and +5's mount up and then if you are diligent, you will be rewarded with the big runs every other day that really give things a rosy glow.

Yes, that's correct. However I personally give much more weight to the High and Low of the present day. You have to read it right. Price could break yesterday's High but still be below today's for instance. That's no breakout.

It could be below yesterday's High but above today's. That is a breakout.

I use yesterday's levels more as pivot points where price could react.

Hi frisco, with respect, you sound like you are "brand new" to FX. Perhaps you might like to take a look at this site which might clear up some of your questions about "pips" etc. Hope it helps. (read the "school" section. Don't be too concerned with the other stuff (unless you want to), and just one word of caution if I may. ForexFactory is a magnet for new players. It , THEREFORE is, a magnet for scammers. Try to be aware of your surroundings, and remember that "if it sounds too good to be true"......well, you know the rest. (You are safe here though )
Good luck to you. Cheers.
Michael

http://www.babypips.com/

''That a new bar must open in the zone, then reverse back through the trigger area to enter a new trade. (I don't know if I got that right...) So, it sounds as if, on a 15 minute (or 5 minute or whatever chart you choose to use) if Price trades through lets say the Lower open line, then goes down a few ticks, then reverses back UP through the Lower open level...that is NOT a TRADE unless it is a new bar which opened below the (Lower low level) trigger .''

Yes, you got that right.

That constitutes a breakout...right?

If price makes a New High / Low on the day (on H1 candle primarily), then that is a breakout. Do not trade. (Or, yes, trade with extreme caution while you build up screen-time on HOLO...Poke the bear too many times and he will bite!).

99% of traders here will be using mt4 charts. I would really suggest strongly that you open a broker account where you can use mt4. Put all the necessary indicators and templates on there. You don't need to place the trades on that broker, you can place them wherever you want (that's what I do). If nothing else, it makes it a heck of a lot easier for us to see what you have done or are asking questions about if you are using the templates provided.

@ lem

Those are some very good points.

I play a similar game with the HOLO and primarily only look for the extreme move of the day or session or (high ADR) befrore I implement this kind of trade.

Average Daily Range. If price is sitting near these levels that can have a bearing on how price is going to move. Not part of any rules but something to add in later as you gain experience with how HOLO works.

Are you aware of TooSlow's 1-2-3? I and others here run both together.

Looks like we are having a HOLO convention.

TooSlow
,
lemercenaire
,
MichaelG
,
Where's Pippy?