Advanced system #5 (Trend Lines Breakout System)

[szgy74]

Hi irsjwoo,

Thanks for reminding me of the "True and False Trendline breakouts", this answers lot of questions.

regards,
Gyula

[szgy74]

Hi,

I am glad you like these.

According to : http://www.timeanddate.com/library/abbr ... timezones/
EDT=GMT-4 in US, I think this is the one used.
As I know this is Daylight Saving Time of EST, but I am not sure right now.

you can check the time zones visually here: http://www.timezonecheck.com/

regards,
Gyula

Hello Gyula

Wonderful resources you share. I will work on integrating these new indicators into a system. Expects something in 2 months. Just now I am confused about the simple relationship (not being American) EDT = EST = GMT - 7 ?

regards
kjell

[cpr]

Greetings,
I will take the EUR/USD trade today as a example, I have attached the 1h & 15m timeframe for visualisation. On the 1h timeframe (GMT) you see both trendlines. The purple lines are the boundaries of the range on the 4h timeframe, price is at the moment rangebound on the 4h timeframe. The black line is the support line of the asian range, the resistance line of the asian range coincides with that of the 4h timeframe. On the 15m timeframe price broke out of the asian range you could have traded this breakout, but at the moment we wait for a clear break of one of the trendlines according to Edward's strategy. When price approaches the trendlines I start marking off the price action sequence of swing highs and lows. As you see before price breaks the downtrendline it is making lower highs and lows, so as the break takes place I will be quite confident that the break is genuine. In this case we should take profit in time since price is near a higher timeframe resistance (4h timeframe). As you see price reverses in the vicinity of the lower boundary of the larger range.

example1.jpg

example2.jpg

May the force be with you,

Thank you for the example.. I guess I need to reread the strategy to understand the change you have made for this strategy.

[irsjwoo]

Greetings to you all,
Great setups today for most of the major pairs, I've taken the GBP/JPY as an example. In the picture both the trendlines are drawn in brown and orange, the dotted lines represent the pivot points. Also drawn are the 1H asian range (black) and the 4H range (purple), this pair has been rangebound on the 4H timeframe since yesterday. As you notice price broke and closed above the downtrendline after the Frankfurt open, price then rallied towards the upper boundary of the asian range, notice the large price momentum breaking through this level. Because price broke the asian range with quite some momentum, I decided to stay in the trade, next resistance level is the upper boundary of the 4H range, you notice that price hesitates at this level and therefore I decide to close my position and bank about 94 pips, also notice that price is at the next pivotpoint level R1. The other major pairs also would have given nice profits, but I only trade one pair at the same time.

Happy trading,

[cpr]

First of all thank you for posting your live trades.. I am still in the process of understanding this strategy.. takes time for me.. (not sharp)

I apologize for asking these questions.. May be they are primitive..
1) I believe both the trend lines (up and down) from Daily time frame, right ?

2) Is it a Daily pivot line ?

3) 4H range is also for only Asian session ?

5) The price break at Frankfurt open is what you are showing on the visual with an upward arrow, right ? or this is the point where you got into the trade ?

6) When did you get out of the trade to collect 94 pips ?

7) How long you were in the trade ?

[irsjwoo]

Greetings,
First of all, the most important issue is drawing the down/up trendlines correctly, according to Edward's strategy they are drawn in the 1H timeframe. Please visit his website for a full explanation, it's really quite simple and straightforward. The pivotpoints are daily pivotpoints based on the London market ie. the pivotpoints are updated as the London market opens. The asian range is determined off the 1H timeframe, in this case the upper boundary of the asian range coincidentely coincides with the upper boundary of the 4H range. The green arrow denotes the entry point at 13,582 on the close of the 07:45 candle, exitpoint was at 13,668 on the 09:30 candle, look again at the example which displays the currency pair on 15 m timeframe. The mentioned profit includes the spread of 8 pip.

Happy trading,

[Maverick69]

Trend line trading is the most profitable trading system in my opinion. I shorted the EUR/USD yesterday after several failed attempts at breaking the 1.3556ish area. To confirm this, %R was at 0 and the trend was down. Just cashed out with 226 pips. With pyramiding I ended up cashing out with a $3,450 profit on the mini account. Not a bad trade. Had I been on the standard account, that would have been $34,450, more than some people make in a year.

[cpr]

Greetings,
First of all, the most important issue is drawing the down/up trendlines correctly, according to Edward's strategy they are drawn in the 1H timeframe. Please visit his website for a full explanation, it's really quite simple and straightforward. The pivotpoints are daily pivotpoints based on the London market ie. the pivotpoints are updated as the London market opens. The asian range is determined off the 1H timeframe, in this case the upper boundary of the asian range coincidentely coincides with the upper boundary of the 4H range. The green arrow denotes the entry point at 13,582 on the close of the 07:45 candle, exitpoint was at 13,668 on the 09:30 candle, look again at the example which displays the currency pair on 15 m timeframe. The mentioned profit includes the spread of 8 pip.

Happy trading,

If you don't mind, can you post the link of 1h trend lines process that Edward suggessted ? I am currently drawing trendlines based on ZIGZAG indicator (Strategy #10)..

Thank you.. I will try to spot some areas tomorrow morning.. see if I can do any demo trading on this ? Thank you for your help.. It is appreciated.

[cpr]

Trend line trading is the most profitable trading system in my opinion. I shorted the EUR/USD yesterday after several failed attempts at breaking the 1.3556ish area. To confirm this, %R was at 0 and the trend was down. Just cashed out with 226 pips. With pyramiding I ended up cashing out with a $3,450 profit on the mini account. Not a bad trade. Had I been on the standard account, that would have been $34,450, more than some people make in a year.

Hi, Thank you for the post .. What do you mean - "To confirm this, %R was at 0 and the trend was down".. Can you throw more light on this ?

[Maverick69]

Hi cpr,

If you look at the 1 hr charts, the EUR/USD tried many times to break through resistance at 1.3559 indicating that that was pretty strong support (1 indicator). The %R (measures overbought and oversold) was at 0 (indicating overbought and usually when it hits 0 or 100, the trend tends to reverse) and hit the top of the down trend (2 more indicators). Also the MACD crossed and pointed downwards (another indicator). S2 was pretty close to that too meaning the market was most likely going to disregard that level and crash through it (another indicator). All in all I had 5 indicators telling me to sell. It's just like poker, you're going to risk more when you have a full house (many indicators telling you the same thing) and your going to risk less if lets's say you have a pair of 2's (one indicator). I was pretty damn confident on this trade because I had 5 indicators telling me to sell ALONG with the trend and you can usually never go wrong trading with the trend. Like I said, with pyramiding you can make excessive amounts of cash.