Quote:
Originally Posted by RickW00716
For this pattern what is meant by a lower high of the close...do the bars that make higher highs have to have higher closes as well?
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Thanks for your question:
A new High,higher high,lower high of CLOSE...though IMHO,I will personally require the highs(at least the first 2) to be higher.
For forex,we are trading one pair against the other,in stocks,indexes,etc,the actual definition of MSH,doesn`t specify the close,the definition is "new high followed by higher high followed by lower high"...you will understand in a moment ,when I explain the definition of MSL(Market Structure Low) that we have to take a symmetric view,for Forex,to use MSH
MSL:"A new Low,lower Low,higher Low of CLOSE,please see the word in caps,MSL is based on CLOSE values,not lows or highs".
A MSL based long is triggered when prices close above the highest high value of the MSL pattern .A stop is placed below the lowest low of the MSL structure to protect the trade..and the targets and trade management are target for exit either a reversal MSH formation or a previous Resistance area or a close of a bar below the previous bar low .
Since Forex is symmetric,I believe that in this case MSL and MSH must have the same requirements...I will check with Suri to seek his opinion..additionally ,I prefer the highs and lows to be higher and lower respectively too..and I will check this too
