Higher highs and lower lows in Forex markets. In Forex markets, a higher high occurs when a currency pair closed higher than the day before's high. This is a.
Table of contents
- Forex high and low strategy
- High Low Breakout Strategy Explained
- The ‘Daily High Low’ Based Forex Trading Strategy
- Higher highs and lower lows in Forex markets - BP PRIME
Forex high and low strategy
Time Frames: I would use this on higher time frame charts — four hour charts and above. I would prefer the daily. Make sure that the Forex pair you are trading is actually in a trending environment or is showing some type of directional bias. That is the common belief but the truth is, it depends.
However, there is some market condition where price moves to a range and violates the movement above or below the candle high.
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If you are trading the breakout of a daily candlestick that is larger than the earlier candlesticks, you might be caught by the mean reversion of the price. In the forex market, it is often difficult to predict how long a trend could stay. The basic concept of making a good profit from the forex market is to buy from low and sell from high.
High Low Breakout Strategy Explained
Therefore, any bullish breakout from a significant support level in a daily timeframe would indicate a reliable daily breakout strategy compared to a trade setup from the middle of a trend. This trading strategy is simple as you can make most of the trading decision a day before the movement is expected.
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The main of this trading strategy is to place two pending orders above or below the yesterday candle. We should consider the daily timeframe to determine the high and low prices. Later on, move to the lower timeframe usually H4 to enter the trade. However, for new traders, it is recommended to stick to the daily timeframe.
The ‘Daily High Low’ Based Forex Trading Strategy
In the 9-weeks that we see in the above chart we can see that there have been four profitable trades with two losing trades and three weeks of no trade at all. As mentioned earlier, this trading strategy is not suitable for all traders, especially beginners. Traders need to have some experience of the markets and most importantly build familiarity with the price action methods of trading. Understanding the fundamentals in the market can be of great value addition as it can help you to understand if you are correctly positioned in the market or not.
John has over 8 years of experience specializing in the currency markets, tracking the macroeconomic and geopolitical developments shaping the financial markets.
Higher highs and lower lows in Forex markets - BP PRIME
John applies a mix of fundamental and technical analysis and has a special interest in inter-market analysis and global politics. Support and Resistance — In depth Technical Analysis. Awesome Oscillator and Daily Pivot point strategy. Evaluating your Strategy — Counterintuitive Results. Leave A Reply Cancel Reply.
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