ninjatrader/strategies/higher-highs-and-lower-lows/README.md

# Higher Highs and Lower Lows

The idea for these strategies comes from chapter 3 of [*How Markets Really Work*](https://moshferatu.dev/moshferatu/how-markets-really-work) (2012) by Larry Connors.

As with most of the strategies from this book, they are meant to illustrate certain characteristics of the market rather than be traded directly.

## Rules

**Higher Highs**

1. Enter a long trade when the market (e.g., SPX or SPY) makes a higher high for 3 consecutive days.
2. Exit the trade after one week.

**Lower Lows**

1. Enter a long trade when the market (e.g., SPX or SPY) makes a lower low for 3 consecutive days.
2. Exit the trade after one week.

## Parameters

**Consecutive Higher Highs / Lower Lows**: How many higher highs / lower lows must have occurred in a row to enter a trade. (Default: 3)

**Long-Term Trend Period**: The period of the long-term trend as measured using a simple moving average. (Default: 200)

## Backtest Results

### SPY

#### Higher Highs

##### 3 Consecutive Higher Highs

![SPY 3 Higher Highs Analysis](https://static.moshington.com/images/strategies/higher-highs-and-lower-lows/spy-3-higher-highs-analysis.png)

![SPY 3 Higher Highs Summary](https://static.moshington.com/images/strategies/higher-highs-and-lower-lows/spy-3-higher-highs-summary.png)

#### Lower Lows

##### 3 Consecutive Lower Lows

![SPY 3 Lower Lows Analysis](https://static.moshington.com/images/strategies/higher-highs-and-lower-lows/spy-3-lower-lows-analysis.png)

![SPY 3 Lower Lows Summary](https://static.moshington.com/images/strategies/higher-highs-and-lower-lows/spy-3-lower-lows-summary.png)

### QQQ

#### Higher Highs

##### 3 Consecutive Higher Highs

![QQQ 3 Higher Highs Analysis](https://static.moshington.com/images/strategies/higher-highs-and-lower-lows/qqq-3-higher-highs-analysis.png)

![QQQ 3 Higher Highs Summary](https://static.moshington.com/images/strategies/higher-highs-and-lower-lows/qqq-3-higher-highs-summary.png)

#### Lower Lows

##### 3 Consecutive Lower Lows

![QQQ 3 Lower Lows Analysis](https://static.moshington.com/images/strategies/higher-highs-and-lower-lows/qqq-3-lower-lows-analysis.png)

![QQQ 3 Lower Lows Summary](https://static.moshington.com/images/strategies/higher-highs-and-lower-lows/qqq-3-lower-lows-summary.png)

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