Highest Open / Lowest Open Trade (Highest Open / Lowest Open Trade)

“Right now, two patterns of market behavior occur frequently:
1) Price breaks new highs (or lows)
2) Price reverses from new high (or low)
They happen regardless of the time frame.
They are phenomena that can be exploited without fear that they may cease to exist if discovered by others. ” - H. Reardon

Price Action #advancedalientrading

1) Price will break above the previous bar's high, low, or both
2) Price will not break above the previous bar.
3) Price either closes above a certain level (line) or it does not.

Highest opening/lowest opening trade

Draw a line between the highest H1 opening price and the lowest H1 opening price for the day.

After the price rises and falls back, sell short at the H1 highest opening price.

Buy at the H1 lowest opening price after the price drops and recovers.

Stop loss is the current daily high or the current daily low.
Adjust your position size accordingly.

Profit via trailing stop.
When the volume is +5 or above, move the stop loss to BE+1.
When volume is +10 or above, move to BE+5, or switch to a trailing stop.
Selective exit is to exit part of the trading position and bank the profits, move the stop loss to BE+1 and watch the market.

Notice:

Don't wait for the bar close to enter a trade.



When price breaks out of yesterday's high or low, or makes a new high or low today, that's a breakout!
Trade reversals with caution.

To voters who voted against it. Please post why you think this is not simple. Thanks.

“Perfection is not when you have nothing to add, but when you have nothing to take away.” - Antoine de Saint-Exupéry

"It's not an increase, it's a decrease. The less technical you are, the better you are." -Bruce Lee

Please understand that none of these are original or new and are for educational purposes only. You may find that your results may vary. Please consult an accredited financial expert before spending real money. Forex trading can be risky. You have been warned!

Added on May 20, 2016:

Let me see if I can clear up the confusion.

First, read the rules.
Don't add anything to the rules.
Don't subtract anything from the rules.
Don't change the rules.
Read the rules again.

Line 1: Draw a line between the highest H1 opening price and the lowest H1 opening price of the day.
According to your broker, today means today.
My agent starts the day at 5pm New York time, which means when 5pm comes, I have to move the line.

Row 2: Short selling at H1’s highest opening price after price rises and then pulls back.
The price must go up first .
The price must go to the highest opening above H1.
After that, the price has risen above the H1 High Open, then, and only then , when the price falls back to the H1 High Open, do you enter a short trade?

Line 3: Buy at H1 lowest opening price after price drops and recovers.
The price must go down first .
The price must go down to the lowest opening of H1.
After that, the price has fallen below the H1 lowest open, then, and only then , when the price moves back to the H1 lowest open, do you enter a long trade.

The hardest thing about this method is that you have to wait .
For many traders, waiting does not come naturally.
In most cases, not waiting will result in losses.
I recommend that you sit tight while you wait and avoid entering the trade too early.

There is no "trick" to this approach.
No gimmicks.

I recommend you post the marked chart here at the end of the trading day.
We can see the number of days when the price closed above the H1 high open price and below the H1 low open price.
Zero means there is nothing to lose when following the rules.

Many traders ask me how I know when the highest open and lowest open of the day occur because the next bar may make a new high/low.
I have no idea.
No one knows.
Based on previous statistics, we know that the closing price is usually lower than the H1 highest opening price and higher than the H1 lowest opening price.
This is our "advantage".
This is why we can deposit points every day.

Added on May 27, 2016:

This might help those willing to wait:

The M15 pole must open below the H1 minimum opening before you can enter.

The M15 pole must be opened above the H1 top before you can enter.

When you enter a trade, the price will move in your direction.

Added February 6, 2017.

Please see the attached HOLO PDF.

ATR description: https://www.forexfactory.com/thread/...6#post13921836

Example:

http://www.forexfactory.com/showthre...45#post8952745

Great visual explanation: http://www.forexfactory.com/showthre...58#post9007658

challenge

0.01 lots for 10 trades.
Follow the rules strictly.
Stick with the same pair across all 10 trades.
Post your results.
Notice:

Don't wait for the bar close to enter a trade.

To get the latest indicators and template files, click the paperclip attachment icon for this thread.

EA distracts from the method.
You have been warned.

You may wonder why.
EX4 files may contain harmful content.
MQ4 files are compiled on your computer, so you can feel relatively safe.
If the encoder "disappears" then the code cannot be updated if/when the encoder fails and the code cannot be improved or enhanced.
Who wants to be at the mercy of some invisible programmer?

New to this thread, if you'd like the question answered, please copy/paste the following message when asking the question:

I've read the 1st article and example link but still have a problem