Reason why the 1 hour above below prior session stategy works
first of all I know that I would be trading natural gas or cotton due to COT Data on daily charts
in the past i entered above a 1 daily bar and placed the stop at the swing low (VERY HIGH RISK) or below the daily bar
with the 1 hour strategy you can either enter a swing trade (exit below 18 MA on daily chart) or as a daytrade with exit below a 2-3 bars trailing stop.
the stategy will always work in trending markets because they pulled back in the past to prior days low and then gone up again, or they traded above prior days high and then further
the key is a stop order not at the prior day high but at the 1 hour bar that was above prior day high or low and then a price that traded above that bar (this method filters out many false breakouts)
in the past i entered above a 1 daily bar and placed the stop at the swing low (VERY HIGH RISK) or below the daily bar
with the 1 hour strategy you can either enter a swing trade (exit below 18 MA on daily chart) or as a daytrade with exit below a 2-3 bars trailing stop.
the stategy will always work in trending markets because they pulled back in the past to prior days low and then gone up again, or they traded above prior days high and then further
the key is a stop order not at the prior day high but at the 1 hour bar that was above prior day high or low and then a price that traded above that bar (this method filters out many false breakouts)