Consecutive high - low system

Very simple setup....

Daily Time Frame

BUY bar is where PREVIOUS 2 days are lower and NEXT day is lower

SELL bar is where PREVIOUS 2 days are higher and NEXT day is higher

 
A setup is only formed when a buy bar is followed by a sell bar, or a sell bar is followed by a buy bar (see image)

In the case of a buy bar setup, if there is a further buy bar found, then the whole setup is invalidated, and the process has to begin again, in this case, we need a subsequent sell bar

In the case of a sell bar setup, if there is a further sell bar found, then the whole setup is invalidated, and the process has to begin again, in this case, we need a subsequent buy bar

IF, the exception occurs, where the bar fulfils both the buy AND sell conditions above, then this is just classed as a normal daily bar.

The trade setup is as follows:

BUY trade – find difference between previous buy high and sell low, multiply by 27% (Fibonacci), providing stop and targets values.

SELL trade – find difference between previous sell low and buy high, multiply by 27% (Fibonacci), providing stop and targets values.

Entry on both is 1 point above buy high, or 1 point below sell low.

Ideally, I would like to see a sell bar colored red, and a buy bar colored blue.

Any takers?