{"id":1736,"date":"2022-03-24T05:54:24","date_gmt":"2022-03-24T05:54:24","guid":{"rendered":"https:\/\/mdr.foobrdigital.com\/?p=1736"},"modified":"2022-03-24T05:54:24","modified_gmt":"2022-03-24T05:54:24","slug":"high-low-momentum-trading-strategy","status":"publish","type":"post","link":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/2022\/03\/24\/high-low-momentum-trading-strategy\/","title":{"rendered":"High\/Low Momentum Trading Strategy"},"content":{"rendered":"\n

One of the most popular\u00a0momentum oscillators<\/strong>\u00a0is constructed by subtracting a moving average\u00a0from a closing price. When the close is above the moving average and accelerating upward from it,\u00a0momentum is bullish<\/strong>\u00a0and increasing; when the close is below the moving average and accelerating downward from it,\u00a0momentum is bearish<\/strong>\u00a0and getting even more bearish.<\/p>\n\n\n\n

We wanted to design a momentum-based system but with a twist: we\u2019ll use highs, lows, and a moving average rather than closes and a moving average.<\/p>\n\n\n\n

High\/Low Momentum<\/h3>\n\n\n\n

We\u2019ll construct two momentum oscillators. One will represent the high minus the moving average; the other will represent the low minus the moving average. Our system will also employ a longer-term moving average of closes to\u00a0identify the trend.<\/p>\n\n\n\n

When the\u00a0trend\u00a0is up, we\u2019ll use the oscillator of lows to set up an opportunity to buy. When the trend is down we\u2019ll use the oscillator of highs to signal a selling opportunity.<\/p>\n\n\n\n

For both long and short positions, we\u2019ll set a\u00a0money management\u00a0stop and enable a trailing stop.<\/p>\n\n\n\n

Our signal to exit a long position will be when the oscillator of highs crosses below zero; we\u2019ll exit our short position when the oscillator of lows crosses above zero.<\/p>\n\n\n\n

Figure shows the High Low Oscillator system applied to a daily chart of GBP\/USD. Also applied are two indicators, High Oscillator and Low Oscillator.<\/p>\n\n\n\n

Setup<\/strong><\/p>\n\n\n\n

c) Calculate a 50-bar\u00a0EMA (exponential moving average)\u00a0of closes and 100 Ema bar<\/p>\n\n\n\n

d) Calculate the high oscillator and the low oscillator.<\/p>\n\n\n\n

Long Entry Position<\/strong><\/p>\n\n\n\n

a) Check for the\u00a050-bar EMA\u00a0to be greater than\u00a0100 EMA.<\/p>\n\n\n\n

b) Check for the low oscillator to be below zero but rising. In other words, the low oscillator should be a negative value but less negative than one bar ago.<\/p>\n\n\n\n

c) Buy on the next open.<\/p>\n\n\n\n

Short Entry Position<\/strong><\/p>\n\n\n\n

a) Check for the 50-bar EMA to be less than 100 Ema Bar.<\/p>\n\n\n\n

b) Check for the high oscillator to be above the zero line but declining. In other words, the high oscillator should be a positive value, but less than it was one bar ago.<\/p>\n\n\n\n

c) Sell short on the next open.<\/p>\n\n\n\n

Exit Order<\/strong><\/p>\n\n\n\n

a) Once we enter a position, we\u2019ll set a\u00a0money management\u00a0stop, a breakeven stop, and a<\/p>\n\n\n\n

trailing stop.<\/p>\n\n\n\n

b) Also, we\u2019ll exit our long position on the next open when the high sscillator crosses below<\/p>\n\n\n\n

zero; we\u2019ll exit our short position when the low oscillator crosses above zero.<\/p>\n\n\n\n

Take Profit<\/strong>: 60 pips EUR\/USD, 70 pips GBP\/USD 4H Time Frame, for Daily time frame 200pips EUR\/USD , 250 pips GBP\/USD (recommended).<\/p>\n\n\n\n

\"\"\/<\/a><\/figure>\n","protected":false},"excerpt":{"rendered":"

One of the most popular\u00a0momentum oscillators\u00a0is constructed by subtracting a moving average\u00a0from a closing price. When the close is above the moving average and accelerating upward from it,\u00a0momentum is bullish\u00a0and increasing; when the close is below the moving average and accelerating downward from it,\u00a0momentum is bearish\u00a0and getting even more bearish. We wanted to design a […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[286],"tags":[],"_links":{"self":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/posts\/1736"}],"collection":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/comments?post=1736"}],"version-history":[{"count":0,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/posts\/1736\/revisions"}],"wp:attachment":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/media?parent=1736"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/categories?post=1736"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/tags?post=1736"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}