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Higherlows

The basics: Higher Highs and Higher LowsMarkets trend. There are impulses, and in those the price consistantly makes several higher highs and lows, or lower highs and lows in the case of a downtrend impulse, or leg. The majority that try to compete in this activity fail, and from what I have seen they either don't know the basics, or have loss phobia. Or are dense, that's also a possibility. It is basic. Do not go against the trend. Especially when it is diagonal. The market goes up in impulses. Forget elliott or dow waves, there can be any number of impulses within the impulse. 5 higher highs and lows, 6, 7, 8. Of course I am not used to seing something like 25 in a row. People would become instant billionaires if that happened. I wish... I can't prove the market behaves in that way but I can use some empirical evidence. In here I will present a couple of examples. 2, 3 or 4 examples can be a coincidence. But when something repeats itself over and over it is unlikely it is a coincidence. It's basic and easy to play around the fact that currency pairs make successive higher highs and lows. For example it might be pointless to hold a long once the price has reached a lower low (but it's a bad idea to have a stop at the very low or just below it). Eurodollar downtrend from the 20 April to the 10 May: Put into context: And then the new low: Another example: Forex charts look noisy and random, but they are obviously not random. The price does not randomly make a higher high in a downtrend then continues down. It keeps making lower highs without fail, and once there is a higher high well, most of the time it does not go just slighlty higher then drop. How embarassing is it that PHD economists can't see this? Sometimes a higher high in a downtrend is a trap Here is what individual investors can be seen doing: Retail positions have no predictive abilities that I know of. Their entries are basically random. And don't matter. I am not contrarian to retail positions when I enter, sometimes I buy with 80% of them. I see 0 correlation with my entries. But where is there a difference? Each time I have a big winners going past 5R I look at retail positions, and what I see is 80-90% are in the opposite direction (and have been for a while). Them sucking and being on the wrong side could either be due to entering at stupid moments, or closing winners quickly and holding losers which leads to an aggregate of "80% long" at the bottom of long downtrends. Are they dumb or afraid? By afraid I mean loss aversion. I do not think personally they are all idiots that just go against the trend, but I do think there are a lot of individual investors that do just that. I can imagine them being all nervous while I'm just chilling. I would say at least 90% got to be afraid, let's simply call it what it is: weak. There are plenty of idiots. Who gets into this? People that have money and went to school right? Engineers and doctors? There has to be some gamblers too. In investing in general I know the vast majority is "educated" as well as IQ > 100 but short term like this might not have the same distribution. How basic is it? Price makes lower lows and highs it is going down, and once there is a higher high the trend takes a break or reverses. Trade like a pro, not another statistic.
Editors' picks
Education
by MrRenev
38
USDCAD: Bullish ContinuationHello, Traders! USDCAD is fun to trade. There has been so many good opportunities for long entries this month and I expect the uptrend to continue. I prefer to go long in an uptrend and short in a downtrend rather than looking for short and long entries in the same chart. It has been safer this way and that's how I think unnecessary losses can be avoided. If you are a beginner like me I recommend you to do the same as it works perfectly for me. Good luck!
Long
by cnesrin
Is the Bearish Trend still Possible??Considering the Bearish Trend which created a LLs and LHs inside the Ellipses, we saw an invalidation through the channel which tried to create a HHs and HLs but then the ZONE from the HH was a SUPPORT AREA which we saw a consolidation and a break below, the Break-out was also a consolidation which we were expecting a break either above or below but the certainty was a SELL OFF because we needed to observe the previous price action to determine what to expect ahead. Price has now invalidate the channel up and a break below the ZONE Area. I am anticipating a continuation of the DOWN-TREND because the recent HH is a Swing High and were we have an invalidation of the recent HL as a Swing Low. From the the Fibbonnaci we have seen a correction of 50% towards the Resistance Area, a Bearish Engulfing has been confirmed at the Resistance Area which a SELL OFF is possible and likely to resume a LH and a LL...
Short
by MII1502
3
DELTA CORP LTD Long term trendline BreakThe stock has broken its 3 years downtrend trendline in Dec 2020 and has been able to sustain above it and consolidating in the range of 200- 150. Currently, prices are trading at and taking support at the lower range. And it is likely that it might bounce and move towards the upper side of the range at the minimum. One more positive thing to notice here is the higher high and higher lows structure of this recent rally that started in March 2020. This could be traded with a stop below 140 levels for an initial target of 200 and if the stock reaches its initial target, it could be trailed for higher targets. Type of Trade: Positional
NSE:DELTACORPLong
by manuagarwal21
1
AAPL: Could these patterns reverse the trend again?Hello traders and investors! Let’s see how AAPL is doing today! Since last month, when we were discussing the reversal patterns AAPL was doing, our view was clearly bullish. Now that it went from $ 120 to almost $ 140, what’s next for it? Well, in the 1h chart we have again some nice reversal patterns. Apple is doing higher lows , and if it breaks the blue line at $ 130.44 it’ll trigger a bullish pivot . It has a gap to fill (yellow square), and it’ll probably seek the $ 137 again if it does that. Let’s see the daily chart: The problem with the daily chart is the volume . The high volume in the bearish days indicates that the bears are not kidding here. Maybe this was all thanks to earnings, but we can’t be sure. But it is a fact that it is sitting right above the $ 128 and it is doing a good reaction now. But if AAPL loses the $ 128 again, things might get ugly for it, and it could retest the $ 120 area next. This is a decisive moment for AAPL, and I’m eager to see how it’ll play. Remember to follow me to keep in touch with my daily updates on stocks and indices, and if you liked this idea, remember to support it! Thank you very much!
NASDAQ:AAPL
by Nathan_The_Finance_Hydra
6
Crypto.com - Simply Bullish? (Small update v4)Not investment/trading advice. It was requested I updated my TA. Can't provide a whole lot of information.. but the ride with CRO has been great! We have seen a great bullish trend, following the blue bull trend line which has proved to be strong. However it has been broken a few times. Just recently dipping below the bull trend line finding some support above the red zone. The trend still remains intact at the time of writing. Continuing to put in higher lows from the previous break. I went ahead and marked the two main dips to show the higher lows being displayed. (yellow) This does not mean the trend cant break at any time. With stronger volatility being shown as we near closer to mainnet launch. 2 zones were added. Green target zone Yellow caution zone. Red bearish zone extended beneath. Additionally a ghost line at the highs & ghost circles at the short term lower lows cluster. I remain bullish long term, however at this point be extremely careful when trading. If you like my chart, please show some support or leave a thumbs up. Thanks!
Long
by Crypto-TJ
1
Crypto.com - Simply Bullish? (Mainnet Influence)My personal opinion chart. This is mainly for my own reference. If you haven't seen my 1st chart, please check that one for my original bull trend lines. This is just building upon my previous chart. The details are general not exact. -Continues to put in Higher lows . -Staying on course, following the trending the bull line. (blue) -I added a few possible price target zones & range. -Might be another possible breakout around 13th to 15th. -Additionally, a parabolic trendline added for bull range. (orange) -Neutral Mainnet launch box. (large white).
Long
by Crypto-TJ
6