Hey Chuck:
This thread is pretty inactive but just to let you know I still grab some quick pips now and then. Nothing real big, rarely over 20 p. but it works well with another strategy I’m using and doesn’t need indicators. Thanks again.
Great thread Chucknorris… keep it up!
Hello Chuck,
In the attached chart, the highlighted area shows the valid short entry as per your trade and would have become just one of those which did not materialize. right?
I mean, I am asking just to make sure I understood your approach and not to poke holes are anything.
Thanks
TradeStar - I can’t tell from you chart but the low of the 3rd candle did not break the low of the 2nd candle by much (I can’t see the prices very well). So technically it was a V setup but after fumbling with setups like this I started usong the Limit Sell/Buy. I use the Limit order to get it after a move of 5-6 pips, even more if trading a Daily TF. Yes, I miss the early pips and over a month"s time this can add up but so can the stop losses such as the chart you posted. Just my .02 cts. d
This trading method has a candlestick pattern name. It is called the “3 inside down” (for shorts) and the “3 inside up” (for longs).
You can find out more about this pattern on the following hyperlink :
I dont think that is fully accurate. According to the definition on the site, the second bar of a “3 Inside Down” must be an IB (“The second day is a red day where the body is engulfed by the body of the first”). Candles 1 and 2 form a Harami. It doesnt seem that Chuck Norris’ method has the same requirement, rather he is specifically looking for the next lower high/low (Sell trade: “Our next step is then to look for the first candle to make a lower high. Once we see a candle that makes a lower high then we know a reversal is about to occur”).
Another difference seems to be that the 3 Inside Down/Up candlestick pattern requires consecutive candles where Chuck apparently does not (“Our next step is then to look for [I]the first candle to make a lower high[/I]…”). Thus, if I am reading it correctly, a V-formation set-up might have 2 or more consecutive candles with equal highs and then a lower high. This would not be a valid 3 Inside Down pattern.
If Chuck is still around, perhaps he can correct me. And maybe give an update?
ps – Have you seen this Chuck? They talk about you for pages Forums - Chuck Norris Trading Facts
Could somebody help me grasp the “higher high” and “lower low”…
I am starting to understand a good amount of the market, but I still get stumped on this idea.
For example if I am using a 1HR Chart…and waiting for a “higher high”…what is the previous High that I am comparing the current market price to…the last 4 hours, day, week…i just dont get that part of it.
It is easy to see when i look back at the price movements, but I am not sure how to tell a higher high from a small spike.
If anyone could give a basic example as to what I would be comparing the current price to, I would appericate it.
Thank you.
If you look at the thumbnail it shows the principal.
Higher highs (higher lows) are allied to an uptrend,
lower highs (lower lows)are allied to a downtrend.
See also peaks & troughs.
Would anyone believe that an arm just reached out from my monitor and slapped me across the face…OUCH. LOL, Thank you, the light turned on and I see what the “sticks” are saying 
Wow, I did this last night…produced 20 Pips (which is actually 5 less than my weekly goal)
I am courious if anyone has used this “V” system on the 15 min chart…but add Bollinger Bands. Then only open a trade if you get a signal that agrees with the Daily Trend and is very close to the top/bottom line of the BB ??
Example (Daily trend is going up. Wait to get a buy set up that forms very close to the bottom band) ??
I would love to know if anyone has tried this.
Very interesting idea, I might try it as I like the shorter TFs. What were your BB settings? And I assume you had smaller TP/SL too. Good idea. d
I use default settings on MT4, I belive they are something like 20, 0, 2 (if memory serves) I do not have access right now.
when I was playing around with the idea, i only made 1 buy order, i set my stop loss to the last “lower low” before the buy signal was made, then i subtracted 5 from it. For a T/P i just doubled the S/L in the opposite direction of course and set the MT4 Trailing stop to 15.
I only have about 2-3 hours a night to watch the market so my target goal is 25 pips/week, very obtainable, so if I hit 1 or 2 good trades I have my goal, and of course the 2:1 risk reward ratio is just common place in the market.
Are you in the US and trading the Asian session? If so then your strategy is even more impressive. Actually, regardless of where you live, trading this during the Asan is an accomplishment because of lower liquidity. Good job M. d.
I’ve been demo’in this on the daily chart. Pretty much setting it up on how ChuckNorris did. I’m debating on changing up the take profit set up however.
As it stands, I’m up 400 pips over the last two days. I’ll keep you informed whether it be for good or bad.
Wow, from scalping to daily! Hey guys, leave some for us middle TF players. d
hmmmmm…I just got a crazy idea…I think I could actually write an EA that would follow these rules…I think i just found a weekend project
Hey people:
I have been trying to trade this on Oanda’s 3H TF with little success this morning. Question: which TF, the 3H or the Daily, would be better to use to indicate trend? I maybe am not screening out retracements very well so comments please. Thanks, d.
I went back and read post #1 which I should have done before posting. I am back to the 1H TF and looking for the trend to be the same on 1H, 3H (Oanda), Daily. I’m sure there will be fewer trades but they should be good ones. d
The thread is quite older. Creators of this thread are not active. Anyhow I am bringing up this thread as the strategy is matching with my trading style. It has a positive potential, if discussed and contributed to modify and build up a profitable system.
It has been over a year since anyone has posted but I still use this on the H4 TF @07:00 CDT. I scan 8 prs and get a trade or two, sometimes three, per week. I also trade a similiar PA pattern, the 3 White Soldiers & 3 Black Crows. Not a lot of trades because even if I see a potential setup I will only trade in the direction of the D trend, no retracement trading for me. Have a nice Labor Day weekend all, d.
Hey dobro!
This is one of my favorite entry triggers, I like it a lot. It’s a nice simple very tradable candle pattern. I use it on my 4 & 1-hour charts and “usually” only in the direction of the daily and/or weekly trend.
Anyone looking for a simple straight forward trading strat should take a look at this old but still useful thread! 