Higher Highs, Lower Lows, etc

[MrT]

Hi Neal,

A few questions on HHHL and LHLL. I've heard you mention several times to look for them to confirm that we're in a trend, but I guess I'm a bit confused about when to look for them and what constitutes a valid HHHL/LHLL pattern.

- When we look for them are we only looking for very obvious new highs and lows? For instance GJ looked to be in an ascending triangle pattern this morning (attached picture) it's making HHHL before it breaks, but not very obviously. Does that count as HHHL and we are therefore just waiting for a break above the level and then buy on retraces?

- A very similar question - If you’re below an SK or resistance level that you’re waiting to break and it’s already making obvious HHHL, do you need it to make HHHL above that level before entering or does the pattern below that level count?

- Is it only when it’s ranging that you look for HHHL or LHLL's? Or if the market starts making a strong move are you also waiting to see it?

Many thanks

Mike

http://i735.photobucket.com/albums/ww358/mthomlin/Neal%20Hughes%20Forum/hhhl.gif

[FibMaster]

Hi Mike,

You really want the higher highs and higher lows to be obvious. The more so the better. Also, you want support/resistance to be broken.

See this FibMaster Breakout Trading video, it will give you a good idea of the concept;
http://www.fibmaster.com/fibmasters_tips/all.html

Also check my Daily Forex Charts trader tools page, for another example. See the first video on this web page ;
http://www.dailyforexcharts.com/sample.html

[MrT]

Thanks Neal. I knew there was a good section in at least one of your videos somewhere, I was just struggling to find them. I'll watch them again.

Many thanks

Mike