HIGHER HIGH LOWER LOW STRATEGY

This trading strategy involves entering long positions when the current price is higher than the highest price of the previous 41 bars, confirmed by being above a shorter term high. For short positions, it enters when the current price is lower than the lowest price of the previous 41 bars, confirmed by being below a shorter term low.

To trade this strategy manually on TradingView:

• Use the 'Price' as the close of the current candle.
• Set 'LookBack' to identify the highest high and lowest low of the previous 41 candles – you will need the 'highest' and 'lowest' functions for this.
• If the current price is higher than the previous (41 candles back) highest high and also above the highest high of the last 10 candles, this is confirmation to enter a long position.
• If the current price is lower than the previous (41 candles back) lowest low and also below the lowest low of the last 10 candles, this is confirmation to enter a short position.
• The safety confirmation uses a shorter lookback of just 1 bar to filter out false signals. Long trades are only made if the previous highest value is greater than the high of the past 10 bars, while shorts are made if the previous lowest value is lower than the low of the past 10 bars.
• To execute these trades, set buy (long) or sell (short) orders when these conditions are met for entry signals. There are no defined exit conditions in this strategy; they should be based on the trader's risk management or desired profit targets.

Improving the Higher High Lower Low strategy for manual trading on TradingView can be approached by refining entry signals, integrating multiple timeframes, and enhancing trade management. These customizations aim to maximize profitability and minimize risk.

Refine Entry Signals:

• Implement additional technical indicators to bolster the entry criteria. Moving averages can be utilized to determine the overall market trend with a long position only being taken if the price is above a certain moving average and vice versa for a short position.
• Volume analysis can provide confirmation of the breakouts; look for higher than average volume on the breakout candle to validate the entry.
• Apply price action patterns such as flags, pennants, or wedges near the breakout points to increase the probability of a successful trade.

Integrate Multiple Timeframes:

• Use a higher timeframe to set the overall market direction and make trades only in that direction on the trading timeframe to filter out counter-trend signals.
• Incorporate a lower timeframe to fine-tune the entry point once a signal is given on the primary trading timeframe, allowing for a more precise and potentially more favorable entry.

Enhance Trade Management:

• Apply a trailing stop loss based on recent swing highs or lows to lock in profits and limit downside exposure as a trade moves in the intended direction.
• Consider partial profit taking at certain risk-reward ratios to ensure some profit is secured while still allowing a portion of the trade the opportunity to run.
• Introduce technical exit criteria such as the opposite conditions of entry signals or other pattern completions to exit trades in an objective manner.

Risk Management:

• Adjust position sizes based on the current volatility of the market. Consider using indicators like Average True Range (ATR) for this purpose to maintain consistent risk management.
• Set a maximum stop loss threshold as a percentage of the trading capital to ensure no single trade disproportionately affects the trading account.

Implementing these strategies involves a disciplined and systematic approach to trading. Regularly reviewing and backtesting each improvement will help determine their effectiveness and contribute to the overall enhancement of the Higher High Lower Low strategy.

This strategy suits traders who are comfortable with technical analysis and thrive on actively managing their positions. It's particularly appealing to:

• Day traders: Due to the nature of detecting short-term price breaks, those who trade within the daily timeframe will find it most beneficial.
• Swing traders: With the right adjustments to the lookback period, swing traders can also capitalize on the strategy's signals for multi-day price movements.

The trading style it adheres to is predominantly trend-following, seeking to capitalize on the momentum after a price breakout or breakdown. Price action traders would also find this strategy in line with their approach, as it relies heavily on identifying and acting on significant price movements. This strategy requires vigilance and a readiness to act quickly once conditions are met, making it less suited for passive or long-term investors.

• Strategy Focus: Targets significant price movements indicating a trend continuation.
• How it works: Generates entry signals by comparing current price to the highest high and lowest low over a previous set period, with a safety check to filter fake-outs.
• For whom: Ideal for day and swing traders, especially those who utilize technical analysis and active management.
• Trading type: Trend-following, with an emphasis on short-term momentum and price action.
• Manual Trading: Requires diligent monitoring, identifying breakouts or breakdowns using high/low inputs from a selected lookback period.
• Automation option: Set alerts on TradingView to notify when potential entry conditions are met.
• To enhance it: Add moving averages, volume analysis, multiple timeframes, and trailing stop losses to improve entry points and risk management.
• Risk Management: Utilize stop loss thresholds and adjust position sizes based on market volatility to protect capital.