Highest Open / Lowest Open Trade

Follow the rules.

Look again.
You tell me.

The candle before your entry is a breakout bar because of that you dont have to trade this setup why did you enter above the higher open?

Hi gelbear,
let me see if I can throw some light on this for you.
Please refer to the copy of your chart below. Because it is an M15 chart, I am assuming that you are using the M15 as your "trigger time frame", so you are looking for M15 candles to open in the area of interest.
So lets look at each candle.....one step at a time....starting with candle "A".
As you know, candle "A" was the first candle of the new hour. As it was the Highest H1 Open for the day, it printed as the Highest H1 Open on the indicator.
As you can see, price rose up, and would have also moved the Daily High price of the indicator as it rose up. So, JUST BEFORE candle "A" closed, it would have shown with both the Highest H1 Open....and....the Daily High .
So.....when candle "B" opened, it DID open within our area of interest, so it was a valid setup according to the rules. No problem there at all.
But that set up became INVALID (according to the rules) when candle "B" made a NEW DAILY HIGH. If a candle makes a new daily high, it is considered as a BREAKOUT candle, and breakouts should be TRADED WITH CAUTION.
So, if we followed that rule, we may have acted with caution.....and waited.
So we have waited until candle "C" opens, to see if it prints as a valid setup.....and as you can see, it DID open in our area of interest (between the Highest H1 Open price......and.....the Daily High Price.
So candle "C" gives us a valid entry according to the rules, so a SELL at MARKET entry would have been taken once the ASK price(NOT the BID price for a sell trade)crossed the Highest H1 Open price at 0.75903.
As you can see, candle "D" eventually dropped away down to about 0.75871, before candle "E" and "F" took price back up.....and the candles after would have stopped out your trade.
We also have the rule where we would move our stop to Breake Even +1 pip when price gets to 5 pips in our favour, but this only travelled about 3 pips in our favour, so no luck there.

WHY. Well.....firstly....it doesn't appear to me that you did anything wrong with your entry, except it does look like you may have entered a bit early, and not on the HIGHEST H1 OPEN price. And so long as you recognised candle "B" as a BREAKOUT candle, and took your entry off candle "C", then that's okay.
BUT.....UNFORTUNATELY....they don't ALL win. The rules are in place to try and REDUCE losses, but there is always going to be some. Otherwise, we would all be zillionaires
I hope this helps explain a few things that you may not have known. If you have any questions, please ask, and I or someone else will try to help out.
Cheers
Michael

yeah thanks michael. you give me a light. I know if i follow the rule, the price still can hit my StopLoss. But my question is, is my trade break the rules.

Thanks

Hi gelbear,
As I mentioned.....your entry looks like it was a little bit early. The ENTRY should be at the Highest H1 Open price. This can be a little difficult sometimes when using Market entries, if there is a bit of a lag between when YOU push SELL.....and your broker accepts the trade. Also, you can get slippage at volatile times as you know.

Also as I mentioned, if you waited until candle "C" opened before placing the trade, you would have been within the rules because, as I mentioned, candle "B" was a breakout candle.

So if you did those things, then your trade was a valid one.
I hope that helps answer your question.
Cheers
Michael

Hello ,
First thank you very much for you strategy which is very simple and constrained, I registered especially to thank you.
Second, I have a little question.
if the prices follow the rule and hit the target, then come back again to the interest area, is this another chance? or we use this once per day for a pair ?
like chart

Hi khaledemran,
So long as you are looking for setups that fit the rules, then a second or third (or more) entry can be taken. No problems.

As long as the rules are met, then there is no limit to the number of trades you can take.

I hope that helps.
Cheers
Michael

This answers your own question. It's a new higher open, any previous high(er) open is now binned. If it is also a breakout candle then it wouldn't be traded however.

"In an era of human history in which we prize comfort above nearly every other virtue, we have overlooked an important truth: comfort never leads to excellence. What it takes to become great at your craft is practice, but not just any kind of practice the kind that hurts, that stretches and grows you. This kind of practice, which Ericsson called deliberate and we might consider more appropriately as painful, is extremely difficult. It takes place over the course of about ten years, or ten thousand hours incidentally the average length of an apprenticeship. But this is not where the practice ends; its just where it begins. In other words, you don't clock in ten thousand hours and instantly become an expert. You have to do the right kind of practice."

Jeff Goins

Are you using the latest one I posted?
Do you have the inputs set correctly? (HINT: Use the template I posted and DON'T CHANGE A THING!!)

You are welcome.
Now, please read Post #1.
Do the rules mention any limits to the number of times you can enter?

Everything that needs to be explained is in POST #1.
Now what?
READ POST #1 until it sinks in.