Simple's Green Room

[pennies2007]

Smoothed HA Test Example #2

I didn't even get a chance to test trade this one. When I loaded it up in the strat tester, it had already picked a time and date where the trade was already underway.

GU 15 minute chart. In this case, the HA candles made it to the EMA196 itself before rolling over. This is the sheer beauty of the setup...a lot of us would probably have shorted right at the EMA196 just for the heck of it but the price action actually went almost 11 pips above that level to form a new zone above the EMA196. That would have put us in drawdown territory temporarily. But by waiting on the hammer HA candles to form along with the zone, we would have had a perfect entry with almost no drawdown.

Same thing applies...once the zone is formed and the HA candles start exhibiting long wicks and small bodies, it's time for the downtrend to kick back in.

This trade would have yielded 25 to 30 pips depending on how long you held it from the looks of it. I can't tell exactly because there's a lower zone just now forming.

BTW, notice where the smoothed HA candles broke below the guppy and then came back up for a few white reversal HA candles. The price did come back down some after that but we would have only gotten a few pips at best and price spent a long time going back and forth in tight consolidation. This is why I found out that waiting on the zones and rejection at the zones produces the largest number of pips in the shortest time.

GU 15 Minute Chart...