Advanced system #5 (Trend Lines Breakout System)

[szgy74]

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.

here it is:
http://forex-strategies-revealed.com/ad ... s-breakout

Edward also suggested this:
http://www.trendlinebook.com/

I mentioned earlier, I modified trendlines2 indicator for this strategy. Here it is attached, "Trendlines2_H1-breakout.mq4".

Trendlines2_H1-breakout.mq4

(10.77 KiB) Downloaded 922 times

In the parameters you can set the first bar time (rfbt) and the last bar time (rlbt) of the range (for me this is 07:00-11:00).
Then it draws the trendlines according to the strategy. Please note that it has a small bug, "feature", you can not set a range that is in two different days, eg. 22:00-02:00. I will probably correct this when I have the time.
It writes a comment of the trendlines position and the distance from the TLs. When price is 1-5 pips above/below the TL an alert is displayed, what can be turned off in parameters. In the alert stop is displayed, what is the other side of the breaking candle.
I think this may be combined with the formerly suggested EA that trades the breakout of the properly named trendline objects.
One must simply modify the object names of "H1_S_", "H1_R_".

For those having problems with drawing trendlines, here I attach some versions of "DeMark Trendline Trader".
Probably you find it useful.

Regards,
Gyula

[szgy74]

Hi,

Here is a useful website with real time market opening-closing times:

http://www.2010.worldmarkethours.com/Forex/index.htm

another, a newsreaderer indicator, with some templates:

http://www.forex-tsd.com/215104-post1.html

using the "all total" template, it diplays everything. clocks, news and some more info. (news may take a while to load.)
there is a "only world clock" template, this - as in the name stays - displays only wolrld clock.

by the way, which is your timezone? and the broker timezone?

I hope this helps.
regards,
Gyula

HI Gyula

I was surprised that all the time I have assumed wrong time. Of course that has cost me a lot. I suppose this will be right

kjell

GMT 06 -> EDT 01 -> Tokoy 15 -> London 06 -> Euro open
GMT 08 -> EDT 03 -> Tokoy 17 -> London 08 -> Asia close
GMT 12 -> EDT 07 -> New York 08 -> London 12 -> US Open
GMT 16 -> EDT 11 -> New York 12 -> London 16 -> Euro close
GMT 21 -> EDT 16 -> New York 17 -> London 21 -> US close
GMT 23 -> EDT 18 -> Tokyo 08 -> London 23 -> Asia open
// Forex Momentum Time 20-21, 02-03, 06-07 EST
GMT 06-07 -> EDT 01-02 -> New York 02-03 -> London 06-07
GMT 10-11 -> EDT 05-06 -> New York 06-07 -> London 10-11
GMT 24-01 -> EDT 19-20 -> New York 20-21 -> London 24-01

[cpr]

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.

Thank you for the detailed explanation.. Since I don't use all those indicators it is little difficult me to understand for me. However, I appreciate your attempt to explain me in detail.. Does this mean - you are not totally following this break-out strategy ? Or you are using indicators to support this strategy ?

[cpr]

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.

here it is:
http://forex-strategies-revealed.com/ad ... s-breakout

Edward also suggested this:
http://www.trendlinebook.com/

I mentioned earlier, I modified trendlines2 indicator for this strategy. Here it is attached, "Trendlines2_H1-breakout.mq4".

Trendlines2_H1-breakout.mq4

In the parameters you can set the first bar time (rfbt) and the last bar time (rlbt) of the range (for me this is 07:00-11:00).
Then it draws the trendlines according to the strategy. Please note that it has a small bug, "feature", you can not set a range that is in two different days, eg. 22:00-02:00. I will probably correct this when I have the time.
It writes a comment of the trendlines position and the distance from the TLs. When price is 1-5 pips above/below the TL an alert is displayed, what can be turned off in parameters. In the alert stop is displayed, what is the other side of the breaking candle.
I think this may be combined with the formerly suggested EA that trades the breakout of the properly named trendline objects.
One must simply modify the object names of "H1_S_", "H1_R_".

For those having problems with drawing trendlines, here I attach some versions of "DeMark Trendline Trader".
Probably you find it useful.

Regards,
Gyula

I guess I need to do some home work with this strategy this weekend.. Currently I draw trendlines using ZIGZAG indicator (Strategy #10)..

[Traveller]

I used to follow this market hours clock

http://www.forexmarkethours.com/

@ szgy74:
the newsreader indicator looks like a pilot cockpit
thanks for the reference!

[cpr]

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.

here it is:
http://forex-strategies-revealed.com/ad ... s-breakout

Edward also suggested this:
http://www.trendlinebook.com/

I mentioned earlier, I modified trendlines2 indicator for this strategy. Here it is attached, "Trendlines2_H1-breakout.mq4".

Trendlines2_H1-breakout.mq4

In the parameters you can set the first bar time (rfbt) and the last bar time (rlbt) of the range (for me this is 07:00-11:00).
Then it draws the trendlines according to the strategy. Please note that it has a small bug, "feature", you can not set a range that is in two different days, eg. 22:00-02:00. I will probably correct this when I have the time.
It writes a comment of the trendlines position and the distance from the TLs. When price is 1-5 pips above/below the TL an alert is displayed, what can be turned off in parameters. In the alert stop is displayed, what is the other side of the breaking candle.
I think this may be combined with the formerly suggested EA that trades the breakout of the properly named trendline objects.
One must simply modify the object names of "H1_S_", "H1_R_".

For those having problems with drawing trendlines, here I attach some versions of "DeMark Trendline Trader".
Probably you find it useful.

Regards,
Gyula

Hi Gyula,

Greetings and Thank you for all your help sofar. I spent considerable amount of time this weekend to go over this strategy. Downloaded couple of indicators and installed on my Demo MT4.

I also installed your "Trendlines2_H1-breakout.mq4" indicator. Set the time to 00:00 to 04:00 since my Mt4 is a 24 hr colck and in sync with US EST(NEW YORK) TIME. I also establised pivot points on my chart.

Since now I have some fair amount of idea on the strategy, let me understand how this indicator works.
(1) the working range of 5 candles starting from 00:00 to 4:00
(2) It also identifies and connects swing high from these 5 candles to the previous swing high
(3) Same as above but for swing lows
(4) It also alerts when the price about to hit ( 5 pips away) either the trend line

Is my above understanding correct ? on which pairs you generally trade this ? I am exicted to see this setup on Monday.. Thank you very much for the help.. You have a great trading week.

[szgy74]

Hi Gyula,

Greetings and Thank you for all your help sofar. I spent considerable amount of time this weekend to go over this strategy. Downloaded couple of indicators and installed on my Demo MT4.

I also installed your "Trendlines2_H1-breakout.mq4" indicator. Set the time to 00:00 to 04:00 since my Mt4 is a 24 hr colck and in sync with US EST(NEW YORK) TIME. I also establised pivot points on my chart.

Since now I have some fair amount of idea on the strategy, let me understand how this indicator works.
(1) the working range of 5 candles starting from 00:00 to 4:00
(2) It also identifies and connects swing high from these 5 candles to the previous swing high
(3) Same as above but for swing lows
(4) It also alerts when the price about to hit ( 5 pips away) either the trend line

Is my above understanding correct ? on which pairs you generally trade this ? I am exicted to see this setup on Monday.. Thank you very much for the help.. You have a great trading week.

Yes, you are correct. A small note on point #4.: Alert is displayed when price is 1-5 pips higher/lower than the upper/lower trendline.
When price is more than 5 pips away from the trendline, there is no alert dispalyed.
Maybe alert appears now at every tick, I don't know for sure now. If you don't like this you can disable in parameters by setting dispalert to false. (You can check if the trendlines are OK with the other trendline indicators I have posted earlier.)
If there is no swing high/low in the "working range", the trendline is not displayed, as the strategy requires.

I trade this only on EUR/USD and GBP/USD. Edward also mentioned USD/JPY. I remember others trading the major pairs. I also look the majors on demo acc.
(I combined my indicator to one that displays all the 18 currencies in one screen just to see how other pairs perform.
of course this is only text data, not graphic.)

Wish you good trading too,
Gyula

[cpr]

Hi Gyula,

Thanks you for the information. Hope your trading week is going well. I am having some issues with the indicator.

1) First of all, I am wrong about my time settings initially on the pair. I thought my MT4 is displaying local time but it is actually showing Londaon time - GMT +1. It may be because my FXCM is regulated by UK not US. I have corrected those settings on the indicator as 4:00 to 8:00 and I don't see any line on the chart.. Please see my indicator settings in the atached
2) Then I started identifying working range and trend lines myself. Please see if these matches to what you have on your chart.

In fact, I guess based on the strategy I should have gone long on the 6th candle or the first candle after 5 working range candles. Since I was busy setting up things I didn't go long here.. But prices retraced back violently from there.
How does it look like you ? Does these match to what you have ? Do you have any other recommendations ?

Youe help is appreciated.

[szgy74]

Hi,

excuse me for being short right now, I am in hurry, leave home in some minutes.
Today I did not trade anything, just quickly looked through the charts.

I think you have a little problem with trendline drawing.
Your lower trendline is OK, but the upper seems to be wrong. You identified the previous swing high, that is OK, but for upper trendline drawing you need another, a previous swing high that is higher than the current one.

Please read Edward's first comment on this page:

http://forex-strategies-revealed.com/ad ... t/cpage-11

As I understand, no matter how far is the prev. swing high,
"we scroll back as far as we need, few days, weeks etc before we find a valid swing for a trend line"

I attach my trendlines, one zoomed in, another one the same zoomed out to see the whole trendline.

My broker timezone is GMT+2, so my setup is 07:00-11:00. For GMT+1 I think this sould be 06:00-10:00.

Regarding the price retracing, I noticed that it was at 1.3500. These numbers with 00 in the end sometimes are strong S/R levels.

----
Just another thought, I looked the setup of the Advanced Neat entry strategy on H1 timeframe:
http://forex-strategies-revealed.com/ad ... stochastic

(the third picture attached)

If my understanding is correct here the RSI and Stoch would suggest sell, surely not buy.

Regards,
Gyula

[cpr]

Well. Thank you again for mentoring me on this strategy.

Yes. you are correct. I changed the parameters to 6:00 to 10:00 now I see the trendlines formed by the indicator.

I did realize that my previous swing high should be higher than 5 candles swing high
and the swing low should be lesser than the 5 candles swing low.

However, I do see 2 observations.

1. On EURUSD, I see that upward line is formed with in the 5 candles working range. The first candle of the working range is connected to 2nd candle of the working range. Is this correct ? Should it not be connected to previous candles low outside of the working range ?
1. On GBPUSD, upward line is not formed. Is it because none of the candles are lower than the previous candels in that 5 candle range?