Higher low, lower high system - MT4/MT5 resources
The original idea behind this post, a good trader said to me that the first pullback is the best trade. First higher low/lower high .
Trading is a battle between trends and support and resistance levels. You can never go wrong by looking at SR levels with some higher time frame analysis.
The latest HL/LH version is very close to the 5 minute standalone approach I want (with obvious reference to the SR level).
Okay, so the current setup is focused on GU and GJ, 5 minutes 15lwma, 3 bars reverse indi, with 9 9 1 stoch filter. GU and GJ agree (both on the same side of the lwma). The same is the case with the EU and European Japan. Of course, EJ and GJ would agree if Yen did things on his own. Consider entering HL/LH in and around 15lwma, either through the HL/LH at lwma or after price crosses the first subsequent HL/LH.
The 3-bar reversal indicator (link http://www.forexfactory.com/showthre...22#post8878722) was written to help indicate these reversals. When the signal candle closes lower than the previous two candles' close (one of the first two candles must be a positive close), it will sound an alert with a downward arrow. When the signal candle closes higher than the previous two candles (one of the first two candles must have a negative close), it will alert with an upward arrow. The arrows are located above/below the candle following the signal candle. Therefore, it is purely based on price action and according to the above definition, captures the initial shift and then resumes the trend movement because one of the candles must close in the opposite direction to the direction of your trade.
Below is a 123 reversal when price fails to make lower lows or higher highs
1. The trend line is broken (I don’t use TL)
2. A lower high in an uptrend, or a higher low in a downtrend.
3. Break through the previous low in an uptrend and the previous high in a downtrend.
At point 3, the reversal is confirmed and everyone is entering. A stop-loss run will usually follow to retest the penetration of point 3. A faster trader might go short at X.
Attached pictures
http://cdn.forexfactory.com/attachme...1&d=1278063333
Attached pictures
http://cdn.forexfactory.com/attachme...1&d=1278065829
Typically we like candles with few/no wicks in the trading direction. Stops: Last swing high/low. Exit: It's up to you. On GJ, if LO movement fails in one direction, there should be a stable movement in the opposite direction. 50 points on GJ are commonly found on target pivots, SR zones, and 50/100 levels.
See attached GJ diagram with blue rectangle. In and around LO, trade first around lwma cross line, HL, GU aligned, little/no upper shadow buy zone 161.50. About 90 minutes later LO, lwma crossed, LH, GU agreed, little/no lower wick, sell area at 161.88.
Trading is a battle between trends and support and resistance levels. You can never go wrong by looking at SR levels with some higher time frame analysis.
The latest HL/LH version is very close to the 5 minute standalone approach I want (with obvious reference to the SR level).
Okay, so the current setup is focused on GU and GJ, 5 minutes 15lwma, 3 bars reverse indi, with 9 9 1 stoch filter. GU and GJ agree (both on the same side of the lwma). The same is the case with the EU and European Japan. Of course, EJ and GJ would agree if Yen did things on his own. Consider entering HL/LH in and around 15lwma, either through the HL/LH at lwma or after price crosses the first subsequent HL/LH.
The 3-bar reversal indicator (link http://www.forexfactory.com/showthre...22#post8878722) was written to help indicate these reversals. When the signal candle closes lower than the previous two candles' close (one of the first two candles must be a positive close), it will sound an alert with a downward arrow. When the signal candle closes higher than the previous two candles (one of the first two candles must have a negative close), it will alert with an upward arrow. The arrows are located above/below the candle following the signal candle. Therefore, it is purely based on price action and according to the above definition, captures the initial shift and then resumes the trend movement because one of the candles must close in the opposite direction to the direction of your trade.
Below is a 123 reversal when price fails to make lower lows or higher highs
1. The trend line is broken (I don’t use TL)
2. A lower high in an uptrend, or a higher low in a downtrend.
3. Break through the previous low in an uptrend and the previous high in a downtrend.
At point 3, the reversal is confirmed and everyone is entering. A stop-loss run will usually follow to retest the penetration of point 3. A faster trader might go short at X.
Attached pictures
http://cdn.forexfactory.com/attachme...1&d=1278063333
Attached pictures
http://cdn.forexfactory.com/attachme...1&d=1278065829
Typically we like candles with few/no wicks in the trading direction. Stops: Last swing high/low. Exit: It's up to you. On GJ, if LO movement fails in one direction, there should be a stable movement in the opposite direction. 50 points on GJ are commonly found on target pivots, SR zones, and 50/100 levels.
See attached GJ diagram with blue rectangle. In and around LO, trade first around lwma cross line, HL, GU aligned, little/no upper shadow buy zone 161.50. About 90 minutes later LO, lwma crossed, LH, GU agreed, little/no lower wick, sell area at 161.88.
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