In my early of trading i use to use a strategy similar to yours. It was trading highs and lows of the day.
The best thing i found out you can do is to go with the long term trend. Dont just go short because it has broken the lower time frame unless the longer term is pointing down aswell.
One thing i did was spot outside bar reversal patterns, inside bar reversal patterns, dojis, bullish/bearish 3 method continuation patternon the daily charts. If those signals where a bullish signal on the daily i would then zoom a 15 minute chart and trade the high of the the confirmation bar for those patterns.
For instance if it was a bullish outside bar reversal pattern on the daily. I would wait until the next day (after the outside bar) and trade the break of the outside bars high. This increased my chances massively.
Good luck hope that helped.
Well said! In fact, instead of trading Highs AND Lows, it should be Highs OR Lows. You trade only Longs on the Low pivot points when the trend is up or you trade only Shorts on the High pivot points when the trend is down. One of the first line that I heard when I learned DayTrading was “Don’t fight the trend”. So if the trend is up, don’t trade in the short side, you’ll lose all your gains. You can use MAs and add a daily volume indicator like I do to know who’s in control.
Don’t forget the 3 bar break pattern when an upbar breaks the high of the previous 3 bars or vice versa, that’s also a nice confirmation that the trend is reversing.
In your example, I would have entered at the Open of the breakout bar since the previous bar’s low is lower than the low of the 3 bars before it.
Merlin
lol yeah sorry thats what i meant…lows or highs. I look at weekly lows or highs and then trade on a 4 hour chart.
Nice fading strategy and congratulations on your excellent results. 
Hi ngautam. I am very interested in your new system but tell me how do you determine that you are approaching the weekly low or high? I am still a beginner myself
Hi daniel, Please enlighten me what is the method of trading the daily high and low, I am very interested
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