Maybe straying from all pairs may have been a good idea.
Trading is as simple as 1-2-3
- #4,026
- Jun 8, 2017 2:01pm Jun 8, 2017 2:01pm
- Joined Mar 2012 | Status: Trader | 14,310 Posts
My Threads: Trading is as simple as 1-2-3, Highest Open / Lowest Open Trade
- #4,027
- Edited 7:46pm Jun 8, 2017 7:15pm | Edited 7:46pm
{image} Just follow the rules.
On this chart, I see bar #7 labeled as "open low". There was a test of the previous low (bar #8), Bar 7 Price tested the low & reversed. It would have triggered a buy at the opening price level (109.431) . (Right, so far?) The move up was beautiful. Four nice up bars before hitting congestion in bars 3,2,1. So where did you take profit?
Now the part that has me baffled. BAR 0. It appears on this chart that you have Bar 1 labeled with "High open". Price in Red, looks to be "110.144".
So, I am looking at what appears to be a higher open sell trade? My first issue> Is this a valid set up? Bar 0 has made higher high. Mustn't you now wait for new H1 bar and a test of Bar 0 for this to be valid?
The other thing is I am not clear on this chart is, where the actual LAST price was when you captured the screenshot. I see a bunch of levels indicated with -5,-10,-15. and the bottom of the Bar 0 is labeled (109.933). But where is price when you captured this image?
And what am I missing with this whole picture. Was this a trade?
I also see a price level labeled "D1(1) OPEN" , I interpret this as the previous days high, which means this pair had break-out to the upside. This would void any High Open sell trades, right? But "High Open" is still on this chart.
Again, to be clear, I see if you considered H1(1) OPEN, 110.144 as the sell entry, but wasn't this trade voided the minute the market took out BAR 1 High (110,231)
Please explain this for me. My wish is to be able to read your charts correctly. In a nutshell: How many trades on this chart, and when at what price?
{image}{quote} TS, I have studied this chart time & time again. Please explain to me what I am seeing. I naturally expect that on posted charts, I am supposed to look at the right side of the chart. On this chart, I see bar #7 labeled as "open low". There was a test of the previous low (bar #8), Bar 7 Price tested the low & reversed. It would have triggered a buy at the opening price level (109.431) . (Right, so far?) The move up was beautiful. Four nice up bars before hitting congestion in bars 3,2,1. So where did you take profit? Now the part...
If I might just jump in here.....
Please refer to the chart below. I have it as candle sticks, as I prefer them over bar charts (Sorry Lem), so I hope that's okay.
Not sure if you might be getting your 1-2-3 rules mixed up with your HoLo rules, but I hope this helps a bit.
You can see on the chart that (basically) the only level we need to take into account with TS's method, is the Daily Open price. Essentially, we want to trade back towards that level with this method.
So if price is above Todays open price, we will look to sell back towards the open price.....and if price is below the open, we look to buy back towards the open.
Next step is to look for a candle that 'makes a NEW Daily High/Low. You see that the candle prior to "A" made a new daily low. So we need to see the very next candle(A) NOT make a new daily low. That's our trigger. ("A" is not the best example on this chart, but it does represent a possible trade, though you would possibly not been able to get on it, as there wasn't much room there)
"B" gives us a better representation, as you can see, the candle prior to "B" made a new daily high. Candle "B" then "retested" that High price, but failed to make a new high.
So, we have our trigger.
Next step is to enter a sell trade as price moves back through the OPEN price of candle "B", with a stop at the high of the day so far.
Depending on YOUR trading plan, you may do as Lem, Hal and others, and take a large % of your trade off when price gets to 5(?) pips in your advantage. And then let the rest run.
Or you might just want to get to break even + a pip or two at the earliest opportunity, and see how the trade pans out. That is, of course, up to you.
As you can see, if you didn't move your stop, you may have been able to ride it down to the new daily low at the candle prior to "C".
And at that level, we have a new daily low, and a trigger for a buy trade when candle "C" DID NOT make a new low. And again, a buy trade placed at the open price of candle "C" would have given us a nice result.
The candle prior to candle "D" made a new daily high as you can see. Candle "D" then DID NOT go on and make a new high, so enter when price comes back through candle "D"open price.
In this case, you can see price did push down, but only went about 12 pips. So this is where YOU have to decide how YOU want to trade this method. Again, that may come back to taking a large proportion of the trade off at a certain price point(5,6,7,10 pips?) Up to you.
And lastly, we would have seen our last trade opportunity when a new daily high was made prior to candle "E". Again, a sell order is placed when price comes back through candle "E" open price, and away you go again. (that's if your still awake Lol)
I hope that helps you (and possibly others). Please ask further questions if that is not clear, or I have missed something.
Cheers
Michael
- #4,037
- Jun 9, 2017 3:40am Jun 9, 2017 3:40am
- Joined Apr 2011 | Status: Trader | 3,454 Posts
Hey gang still around doing my mischief. I popped in here this morning and caught this JY short right out of the box and caught it for +8. Still have it. Been focusing on HOLO trades this week with pretty good results also.
- #4,039
- Jun 9, 2017 4:05am Jun 9, 2017 4:05am
- Joined Apr 2011 | Status: Trader | 3,454 Posts
{quote} Nice catch. As I said above somewhere, summer is a strong time for HOLO to take its place at centre-stage again. It loves the more ranging markets at this time. You will still catch good 1-2-3 trades as well, as you will see them develop first hand as a failed HOLO set-up.
