Hi irsjwoo,
Thanks for reminding me of the "True and False Trendline breakouts", this answers lot of questions.
regards,
Gyula
Rom wrote: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
irsjwoo wrote: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.
May the force be with you,
irsjwoo wrote: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 wrote: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.
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