We have tested Owari's "Valley Method" of Heaven and Earth’s mountains against real charts ①
Shirou here!
I felt that OWARI's "valley method" for the Heaven and Earth mountains and valleys is a very simple and beginner-friendly approach, so I decided to verify it.
I will share the verification results.
Verification results.
What is OWARI's Heaven and Earth Mountain-Valley ”Valley Method”
- Oscillator TF2 LV1 rises and sticks to the chart
- Valley sign (no MTF settings)
- Touches the line
A simple trading setup.
Ideally for Oscillator TF2,
In long positions, it should rise in a straight line from -100 to 80.
When it wobbles or moves irregularly, avoid it.
This pattern is evidence that the market is moving strongly in the favorable direction.
This time's rules
Basic rules
- 15-minute chart
- About 10 currencies
- Oscillator is TF2 LV1 only
- (Only signs in all directions are displayed)
- Display only mountains and valleys
- Set RR at 1:1 for stop loss at the recent high/low
- May change depending on chart conditions
I also unfold the logic I actually think about, so I hope it helps as a reference.
This is what the chart looks like
Verifying OWARI's Heaven and Earth Mountain-Valley ”Valley Method” on actual charts
It is exactly at the cross of the white lines.
TF2 is smooth, and a valley occurs.
Since the mountain is about to end,dangerhere.
Since a dot is forming for me, I would first aim for profit up to the line, and then re-enter from the line and aim for profit again when all-direction signs appear.
I would adjust by lowering the lot size a bit.
You can enter at the cross (one before it).
Since the mountain remains, it is ideal for entry.
In OWARI's style, it feels like it lacks smoothness.
Lack of smoothness can also mean a trend is too strong, which can lead to noise and being swept away, so be careful.
Nice point!
Entry at the cross, with clean profit targets.
Personally, I think a valley forming when about halfway through the mountain peak presents a good opportunity.
This is another good point.
Smooth TF2 + remaining mountains in the valley + near the line
All favorable conditions line up.
In that case, even 1:1 to the nearest high/low could yield large pips.
TF2 and the mountain remain with good conditions, but there is no touch on the line.
As expectedLine touch or crossing the line is preferable.
If it were me, I would also check the resistance/support on the 4-hour and daily charts.
The blue valley on the left center.
TF2 changes color midway, so the state isn’t very favorable.
The mountain remains, and near the line it feels good, but...
When TF2 changes color midway, the direction is not well defined, so it tends to become a range. It is turning into a range after all.
A bad pattern at the end of Part I.
Valleys when the mountain is fading are dangerous. There is a high chance of a trend reversal.