Article Rich - How to use High Low Open and Close price in currency automated trading

Bar Chart (Candle stick)

This is actually commonly refer to candle stick in the trading community. Invented by a Japanese rice trading in the 18th century. Every bar consists of a body and with upper and lower wick. The body can be of any 2 colours which will depend on the open and close price. The upper wick will extend to the highest price and lower wick will extend to the lowest price. By simply looking at the bar or candle stick, you can tell if the trend is rising or dropping.

Buy Trade

If you find close price higher then open price, this indicate a trend to go higher. If you find a long upper wick and a short lower wick, this indicates a lot of support to go higher. Look into smaller timeframe to see the smaller bars to see if the price is trending up. If the above 3 stand true, you will have a buy trade.



Sell Trade

If you find close price lower then open price, this indicate a trend to go lower. If you find a long lower wick and a short upper wick, this indicates a lot of resistance to go lower. Look into smaller timeframe to see the smaller bars, if you find similar and trend going down, will all above 3 same, you will have a sell trade.
Which Time Frame Charting?



In most cases, I will look at H4 timeframe to get a feel of the currency market trend as it roughly divides the trading cycle into 6 slots which gives a very good visual of the days trades and weekly general direction. Then I will zoom into the 15 or 5 minutes time frame. The reason I choose this is a good guage of any trend to start forming within 1 hour, especially the opening and closing and cross of different finances market through out the days.

Body Vs Wick

A tall or fat body will be favourable over short or thin body. A longer wick is favourable over a shorter wick. By comparing the difference, you can find very favourable trades when the currency is trending. Another trick is to look at the body position. A low position body with long wick is favourable to beginning of a up trend. This applies same for the down trend. Many hundred of pips trend begins in this way. Another observation is to have the body lower then 50% mark. This is another indicator of the forming of a trend in the currency price.

There is numerous naming of different candle stick pattern which am not covering here. You can go Google for more information. What I intend to cover is more on the application of this HLOC bar.

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A practical guide to profiting from institutional trading trends

The key to being a successful trader is finding a system that works and sticking with it. Author Al Brooks has done just that. By simplifying his trading system and trading only 5-minute price charts he's found a way to capture profits regardless of market direction or economic climate. His first book, Reading Price Charts Bar by Bar, offered an informative examination of his system, but it didn't allow him to get into the real nuts and bolts of the approach. Now, with this new series of books, Brooks takes you step by step through the entire process.

By breaking down his trading system into its simplest pieces: institutional piggybacking or trend trading (the topic of this particular book in the series), trading ranges, and transitions or reversals, this three book series offers access to Brooks' successful methodology. Price Action Trends Bar by Bar describes in detail what individual bars and combinations of bars can tell a trader about what institutions are doing. This is critical because the key to making money in trading is to piggyback institutions and you cannot do that unless you understand what the charts are telling you about their behavior. This book will allow you to see what type of trend is unfolding, so can use techniques that are specific to that type of trend to place the right trades.

• Discusses how to profit from institutional trading trends using technical analysis
• Outlines a detailed and original trading approach developed over the author's successful career as an independent trader
• Other books in the series include Price Action Trading Ranges Bar by Bar and Price Action Reversals Bar by Bar

If you're looking to make the most of your time in today's markets the trading insights found in Price Action Trends Bar by Bar will help you achieve this goal.

Trading Price Action Trends: Technical Analysis of Price Charts Bar by Bar for the Serious Trader (Wiley Trading) Click here for more amazon customer reviews and rating... 

Praise for Trading Price Action Trading Ranges

"Al Brooks has written a book every day trader should read. On all levels, he has kept trading simple, straightforward, and approachable. By teaching traders that there are no rules, just guidelines, he has allowed basic common sense to once again rule how real traders should approach the market. This is a must-read for any trader that wants to learn his own path to success."
—Noble DraKoln, founder, SpeculatorAcademy.com, and author of Trade Like a Pro and Winning the Trading Game

"A great trader once told me that success was a function of focused energy. This mantra is proven by Al Brooks, who left a thriving ophthalmology practice to become a day trader. Al's intense focus on daily price action has made him a successful trader. A born educator, Al also is generous with his time, providing detailed explanations on how he views daily price action and how other traders can implement his ideas with similar focus and dedication. Al's book is no quick read, but an in-depth road map on how he trades today's volatile markets, complete with detailed strategies, real-life examples, and hard-knocks advice."
—Ginger Szala, Publisher and Editorial Director, Futures magazine

Over the course of his career, author Al Brooks, a technical analysis contributor to Futures magazine and an independent trader for twenty-five years, has found a way to capture consistent profits regardless of market direction or economic climate. And now, with his new three-book series—which focuses on how to use price action to trade the markets—Brooks takes you step by step through the entire process.

In order to put his methodology in perspective, Brooks examined an essential array of price action basics and trends in the first book of this series, Trading Price Action TRENDS. Now, in this second book, Trading Price Action TRADING RANGES, he provides important insights on trading ranges, breakouts, order management, and the mathematics of trading.

Page by page, Brooks skillfully addresses how to spot and profit from trading ranges—which most markets are in, most of the time—using the technical analysis of price action. Along the way, he touches on some of the most important aspects of this approach, including trading breakouts, understanding support and resistance, and making the most informed entry and exit decisions possible. Throughout the book, Brooks focuses primarily on 5 minute candle charts—all of which are created with TradeStation—to illustrate basic principles, but also discusses daily and weekly charts. And since he trades more than just E-mini S&P 500 futures, Brooks also details how price action can be used as the basis for trading stocks, forex, Treasury Note futures, and options.

Trading Price Action Trading Ranges: Technical Analysis of Price Charts Bar by Bar for the Serious Trader (Wiley Trading) Click here for more amazon customer reviews and rating...