Hi/Lo of the day trading method.

[joffie]

Hi Guys,

I've finally had a little time to post this method, sorry about the delay. First off let me say this is not my method and I have learnt this from another trader. I am going to show you the basics of how to trade this method and what to look for with both EU and GU charts from last weeks trading. Now this is a day trading method and requires your attention from 8am London open until end of the day New York close if you are holding trades this late into the day. Some trades will be left over night but mainly are closed out the same day. We only trade these 2 pairs as they are the most active during these hours.

This method will required for you to hedge your position on some trades, this means we have tried to sell or buy at the low or high of the day and have got it wrong and price reverses against our entry. Here we are looking to recover our loss at best and get some profit along the way. In most cases you win more on your hedge position than your losing trade. But with every thing forex there is a risk of having both trades stopped out, which has happend a couple of times to me.

So we mark the high and low of the asian session range and look for price to make a new high or low of the day with a opposite candle. We are then looking for price to make a new high or low in the opposite direction for a profit, but on some occasions this will need to be hedged if we dont have the high/low of the day.
Once in a trade on the first reversal candle if in profit we move our stop to break even to protect the account. Then let the profit run and lock in more as price moves. I will leave this up to you how you manage your take profit targets, either a fixed or let it run. I personally will lock in a 1:2 as soon as a 1:3 has been hit and let the trade run.

Below are trades from last week using this method, any questions just let me know.

joffie

Added rule that I use is not to trade into or touching a round number, the best trades come when traded with room or bouncing off or near a round number . If I now trade near a round number I will move to break even once hit or breached rather then waiting for a reversal candle if in profit of course, other wise i look to hedge.

Trading Rules

1. Need a new high or low of the day during london and US sessions
2. Then look for a reversal candle of this high or low of the day
3. Need to see price near, bouncing off, spiked or a fake break of a round number
4. EU only traded after the 1st hour of euro session
5. GU only traded after the 1st hour of london session
6. Entry must trigger on next candle or trade is to be canceled
7. Require space for trade.. in other words room to the next round number
8. Break even on first reversal candle and let trade run
9. If a reversal after entry, hedge the trade in oposite direction, locking in a 1:1 once closed past
10. Lock in a 1:2 profit once a 1:3 has been hit and let trade run locking in profit
11.Lock in profit once a 2nd reversal candle, but giving trade still room to move

 

[clementngu]

So your trading decision based only on Rejection candle signal in H1?

 

[joffie]

It is based on a reversal candle, so bullish to bearish to sell off high of the day or bearish to bullish of the low of the day. On the 1hr chart yes

 

[joffie]

Here are today's trades, GU gave a sell of the high of the day and the EU gave a buy of the low of the day. Now as I said above, how I use the round numbers, you will see that this morning the EU did give a 1st buy being the low of the day, but this was a no entry for me as it was buying into the round number of 1.1200 and as expected it reversed of this level to then give a buy of the next round number. Both trades at break even on the first reversal candle and then closed out at the end of the day.

 

[tjenarvi]

the first engulfing candle on

Here are today's trades, GU gave a sell of the high of the day and the EU gave a buy of the low of the day. Now as I said above, how I use the round numbers, you will see that this morning the EU did give a 1st buy being the low of the day, but this was a no entry for me as it was buying into the round number of 1.1200 and as expected it reversed of this level to then give a buy of the next round number. Both trades at break even on the first reversal candle and then closed out at the end of the day.

On your attachment chart, I can see there is a first signal on EU with engulfing candle, that would make it into BE right?
and we still take another signal afterward?

 

[tjenarvi]

would you share the indicator?
I think it needs 1 more hour to cover "all Sydney session"

 

[joffie]

the first engulfing candle on


On your attachment chart, I can see there is a first signal on EU with engulfing candle, that would make it into BE right?
and we still take another signal afterward?

I personally don't take these set-ups as just too close to the round number, which I see as a potential resistance area, yes you could have bought and gone to break even as it touched this level. Because price dropped lower this showed that this first buy was not coming off the low of the day being a daily support. Hope this helps to understand my thinking

Joffie

 

[joffie]

would you share the indicator?
I think it needs 1 more hour to cover "all Sydney session"

Hi tjenarvi,

If you pm me your email address I can send you my template and indicators for the method as am unable to post in them forum

Joffie

 

[fxvictory]

Hi Guys,

I've finally had a little time to post this method, sorry about the delay. First off let me say this is not my method and I have learnt this from another trader. I am going to show you the basics of how to trade this method and what to look for with both EU and GU charts from last weeks trading. Now this is a day trading method and requires your attention from 8am London open until end of the day New York close if you are holding trades this late into the day. Some trades will be left over night but mainly are closed out the same day. We only trade these 2 pairs as they are the most active during these hours.

This method will required for you to hedge your position on some trades, this means we have tried to sell or buy at the low or high of the day and have got it wrong and price reverses against our entry. Here we are looking to recover our loss at best and get some profit along the way. In most cases you win more on your hedge position than your losing trade. But with every thing forex there is a risk of having both trades stopped out, which has happend a couple of times to me.

So we mark the high and low of the asian session range and look for price to make a new high or low of the day with a opposite candle. We are then looking for price to make a new high or low in the opposite direction for a profit, but on some occasions this will need to be hedged if we dont have the high/low of the day.
Once in a trade on the first reversal candle if in profit we move our stop to break even to protect the account. Then let the profit run and lock in more as price moves. I will leave this up to you how you manage your take profit targets, either a fixed or let it run. I personally will lock in a 1:2 as soon as a 1:3 has been hit and let the trade run.

Below are trades from last week using this method, any questions just let me know.

joffie

Added rule that I use is not to trade into or touching a round number, the best trades come when traded with room or bouncing off or near a round number . If I now trade near a round number I will move to break even once hit or breached rather then waiting for a reversal candle if in profit of course, other wise i look to hedge.

All trading 60minutman copy

 

[joffie]

All trading 60minutman copy

I've never heard of this, but I learnt the method from another trader in another forum group I'm in, which is a paid forum and he's one of the traders in there who teaches you different methods using the 1 and 4hr charts

 

[tjenarvi]

thanks Joffie.
Any trading strategies is also good to share here, I dont care if it's from another person copy

 

[joffie]

Just the one trade today for me with the buy with a hedged sell on the EU, just closed out the sell with a 1:2 profit giving me a 2% profit for the day. Reason so to cover my buy loss and to get some profit before hitting the round number.

 

[tjenarvi]

Hi joffie, I did buy EU too, with 17 pips loss.
I should follow your rules, just hedge it.

Just doing it for my education on my very small account.
I will try again next time.

Thanks

 

[joffie]

When I get the time I will go over some old examples with using hedging and the reverse trade entry

 

[joffie]

Todays trades, A buy on the eurusd, on the chart price made a new low and close bullish, here I didnt take a buy as price had rejected the round number and closed back below. On the next bullish candle it had closed above the round number so I placed a buy stop order but never got triggered so canceled the trade. Then 3 candles later still coming of the low of the day we got another bullish candle closing above the round number where I took the buy as was triggered in on this candle. Closed the trade at the end of the day.

Gbpusd also had a buy trade today coming off the low of the day, closed bullish and had room up to the next round number. Got triggered on the next candle, but 2 candles later got a reversal candle and hedged the buy with a sell which got stopped out and I am now holding the buy still. Then from the high of the day we got another sell signal but was into the round number but 2 candles later the next bearish candle that closed below the round number was the sell signal and closed out at end of the day.

 

[joffie]

Today's trade was simple to monitor from yesterdays buy, closed out for a +4% profit

 

[tjenarvi]

still dont get about your hedge position lot size.

 

[tjenarvi]

4 entries so far, tested this on my small account.
SL I would put around 30 pips.
1. EU BUY -11 pips
2. GU SELL -83 pips
3. GU BUY (Hedge), same position lot +60 pips
4. EU BUY +135 pips (NFP)

You see number 2 and 3? I hedged and ended up -20 pips. Just 10 pips different with my real risk around 30 pips. So thus I still don't understand your hedge strategy and still profit

Note the position lot size on this small account for test are all only 0.01

 

[joffie]

4 entries so far, tested this on my small account.
SL I would put around 30 pips.
1. EU BUY -11 pips
2. GU SELL -83 pips
3. GU BUY (Hedge), same position lot -60 pips
4. EU BUY +135 pips (NFP)

You see number 2 and 3? I hedged and ended up -20 pips. Just 10 pips different with my real risk around 30 pips. So thus I still don't understand your hedge strategy and still profit

Note the position lot size on this small account for test are all only 0.01

Tj the GU trade I took last week was a buy first with a 2% risk on the trade, then 2 candles later there was the bearish candle closing against my buy trade, putting my trade in negative. So here I sold becasue 1. price was coming of the high of the day. 2. the reverse happened within 2 candles after the buy entry 3. I was negative on the buy trade.
So I placed a sell trade here with again a 2% risk on the trade. All that is left to do now is let the trades play out, one will get stopped out and normally the other trade will move into profit. I look to lock in a 1:1 proft when price has closed past the 1:1 and i either get stopped out with a break even or price continues into more profit.

Now there is also the chance both trades will stop out for a full loss and this can happen. But sticking to the rules these reverse hedge trades can also make good profit.

joffie

 

[joffie]

Today's trades, sell on both eurusd and gbpusd, gu got stopped out at break even but eu took a 2% profit today.