Higher High Lower Low Pattern Trading Strategies. Entry and Exit

All Trending market, either upward, Downward or sideways, offers trading opportunity on both side. We can either buy low and sell high and or sell high buy low. IE market offers buying opportunity and Shorting opportunity in every market. Like wise higher high lower low pattern also offer trading opportunity in both side. Buy low sell high and sell high buy low.


In This topic we cover Trading Opportunities on Higher High Lower Low Pattern. We try to find which is best trading strategies we can apply in this types of pattern. 

When to buy and when to sell in this higher high lower low pattern. ?
which is high probability trade Buying or Selling?

We also study the Probability, Risk, Success rate in each trading strategy
Higher High Higher Low Pattern is uptrending pattern price move upward direction in this pattern. Price create series of Higher High and Higher Low point in this pattern generally move according to a trendline. We look over the trading opportunities on the basis of this pattern depicted on the above chart.

We know that every market offers two side trading opportunity. Go Long and Go Short.

Entry and Exit Strategy in HH HL Pattern
In the above picture, previous Higher High is the strong support area where price often retrace from this area. Thus higher Low point forms. Correction in this price pattern often end in the last higher high point. 
This is an up trending price pattern there have impulsive and corrective move. Impulsive move start from support area which is Previous Higher High Price Point. Likewise Corrective Moves end in Previous Higher High price point his is the support area.
Any types of market offer both side trading opportunity. Long and Short Opportunity (Buy and Sell). Like, this up trending pattern also provide trading opportunity in both side. Going long (Buy) is more easier and less riskier here because we trade with trend. Sell (Short) is more riskier because we ride against trend. Below are The entry and Exit Point of both types of trading.

 Trade against trend (Go Short)
In this Up trending market, correction will end on the last higher high area. If we trade Against the Trend, This should be our Target area. Entry will be the higher high area (enter on pullback from the area). Stop loss Above Higher High

Trade        : Go Short (Sell)
Entry        : Just Below Higher High
Target       : Previous Higher High
StopLoss   : Above Higher High (above Entry point)

 Trade on trend (Go Long)
Trend will resume after the correction which end on last higher high area which is now know as higher low act as support. the new impulsive move starts here. our entry point is here (buy on Pull back from this point) and the target can be set to different point. one is above previous higher high (HH-HL*2). we can trade with 2:1 Reward risk ratio. Stop loss will be just below our Higher low which is just below our Entry Point.

Trade       : Go Long (Buy) 
Entry       : Higher Low (Previous Higher High)
Target      : 1st Target : Last Higher High, 2nd Target : above higher high
Stop loss  : Just Below Entry (Higher Low)

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