Advanced strategy #10(Trend Line Trading Strategy) - ENJOY !

[Ramirez]

Hi Guys,

I need your advice and experience in the eur/chf setup, I posted on Friday.

I made 110 Pips, but I'm pretty sure that I could have made many pips more, if had found a better exit point.

Actually I wanted exit the trade after bouncing away from the blue 4 hour trendline. But as I saw the steam and power
which the 1hour bar had, I decided to stay in and to try a breakout (what I actually don't do anymore).

What happened next? The breakout came and went down 7 pips above the yellow daily trendline. In hindsight I think, that was the point to exit.
Instead to exit, I waited for a touch of the trendline (cause I hoped for a another breakout of the yellow daily trendline) and missed to go out. Within a couple of secs the bar went up again above the blue trendline, and then I closed the trade.

How could I have traded this trade better.

I appreciate any help and advice.

Greetings Ramirez

[simpleforex]

Hi Guys,

I need your advice and experience in the eur/chf setup, I posted on Friday.

I made 110 Pips, but I'm pretty sure that I could have made many pips more, if had found a better exit point.

Actually I wanted exit the trade after bouncing away from the blue 4 hour trendline. But as I saw the steam and power
which the 1hour bar had, I decided to stay in and to try a breakout (what I actually don't do anymore).

What happened next? The breakout came and went down 7 pips above the yellow daily trendline. In hindsight I think, that was the point to exit.
Instead to exit, I waited for a touch of the trendline (cause I hoped for a another breakout of the yellow daily trendline) and missed to go out. Within a couple of secs the bar went up again above the blue trendline, and then I closed the trade.

How could I have traded this trade better.

I appreciate any help and advice.

Greetings Ramirez

Hi Ramirez,

Actually the situation you have encountered is what we all encounter everyday and I guess one of the greatest difficulties we all face is not so much to do with the entry but WHEN TO EXIT. Sure, you may have set your profit targets way below or above (...geezz, we all want big profits dont we?) and the price is not even near to that yet and now there is a an OPPOSING TRENDLINE or HORIZONTAL SUPPORT and RESISTANCE level that the price has to break in order to continue moving towards your profit target (your exit). If it does then that is absolutely fantastic. But then the question is: what if it doesn't? What if price bounces back from the opposing trendine or horizontal support and resistance levels? Then you see your big profits getting eaten right before your eyes and you just cant sit still in your chair!

The best way to avoid this is to have a plan (a system) to follow that tells you exactly what you are to do when such situations happens to save yourself from stressing out too much

AND...here are some techniques to help you:

(1) if you are in a short (sell) order, just wait for the candle that bounces off from the trendline to close. Then watch the next candlestick to form to see if it will break the high of this "bounce" candlestick or not? If it does, then wait for this candlestick to close. Once it closes, move your stop loss and place it some few pips above the high of that candlestick that broke the high of the bounce candlestick. How many pips above should you place it? Your choice...2-3 or 5?

(2)You need to understand something about reversal candlesticks...if you see that the bounce candle is a very strong reversal candlestick pattern, you better start thinking about
(a)moving your stop loss tighter as in (1)
(b) just get all you profits out immediately ( you will never go broke taking a profit...)
(c) or take partial profits off and leave the remaining and move stop loss tighter and see if it might be just a temporary reversal off the trendline and will eventually fall back and break the opposing trendline or support level to the downside.

(3)Is there a nearby "peak" where you can bring your stop loss (trailing stop technique) and place it just a few pips behind it? If you cant find it in the larger timeframe Like 1hr, 4hr), switch to the smaller timeframe (5, 15 and 30min tfs) and you can some peaks there and do that.

Ok, this is for a short trade so do the exact opposite for a long trade.

If other traders here have something better or some techniques that they would like to share, pls do so as we all can learn and improve.

Regards

[simpleforex]

hello folks,

Just to show you an example of a trade I have been waiting on for quite a long time and how I got in with almost pin-point accuracy and the market tumbled right at my entry point.

my trendline was drawn from the 4hr timeframe, my entry was in the 5min timeframe. That's right, watch your setups in the larger timeframes and get in at the smallest timeframe if you can. This is for two reasons:

(1) minimizing risk (small stop loss distance)
(2) if you are right, the market will not hang in there, it runs away from that entry level as fast as it can allowing you to be in massive profits in just a short period of time and also allowing you to move your stop loss to break-even without getting worried about getting stopped out prematurely.

[simpleforex]

7hrs later, usdchf trade...

This is something I use to increase my account fast...capitalizing on the move. You got to develop the skill to get in and add on as trade moves in your favour. you just got to have the patience to wait for them to happen and get in.

regards

[TrendTrader]

But then the question is: what if it doesn't? What if price bounces back from the opposing trendine or horizontal support and resistance levels? Then you see your big profits getting eaten right before your eyes and you just cant sit still in your chair!

The best way to avoid this is to have a plan (a system) to follow that tells you exactly what you are to do when such situations happens to save yourself from stressing out too much


regards

Well said Simpleforex, my hat goes off to you brother! you nailed it. what everybody needs is a system to follow and to apply a money management to save you from the stress of emotional destruction, and greed. We have to make a plan before we enter the trade. if the system says buy then buy, and if it says sell then sell. No string attached.
In order for people to feel and understand all the good advices you are offering us for free and they don't even offer them in trading classes, they have to be in live micro micro account, buy small quantity according to your money management and risk ratio and experience the real behaviors of the market and the reaction to our emotions. It is from my experience. Money management makes us control how much we buy, how much we can lose, where to put stop loss and the profit goal. and the major aspect of trading also is PATIENCE to wait for setup and DISCIPLINE with consistency will make us very successful traders.

Treat forex as business, trading is about how you approach trading. It’s about treating your forex trading as if it were your profession, developing a mindset of a professional rather than that of someone doing it as a past time.

Most of the time, this forum offers a lots of setups lol, and all it takes is, apply your skill accordingly, and boom u made tons of pips. everything is offered here.

why am I writing this? well I thought i know it all, but when i got to real account, I forgot about all these rules and money managemt, and lost half of the account before I realize I am my own enemy. Thanks to someone who helped me and made me realize my mistake and the need to conrole my behaviors.

simpleforex, you have great skill and great advices, we are learning and getting stronger.

My regards

[simpleforex]

Hello Traders,

yesterday's USDCHF trade. well, looks like the upward trendline was putting up a good fight at the moment when i took a screen shot of this..
my 2 short trades yesterday were closed with a good number of pips.

I actually went long on the bounce of the upward trendline but exited with a 10 pips profit when I saw a reversal candlestick that I did not like in the 4 hr timeframe.

[simpleforex]

Now, this is the USDCHF...its getting confused for the moment...
I'm anticipating at breakout to the downside...just waiting with a sell stop order.

[sneid]

Hi all, a little intro here, I'm a newbie to this forex and I'm staying in SG. Time zone is GMT+8hrs.
I see that most of u trade during london ex hrs which is EST time = GMT-5hrs, right?
I'm very interested in this strategy and I'm very excited to hear that many of u can capture 100pips of forex or more in some trade. I'm still learning to capture on how to draw trendline correctly even though I've read a link from this thread http://www.trendlinebook.com/ on how to draw trendlines.

I've read the forum on how to use this strategy and decided to try it out on live account.

Scenario:
On the big pic as shown in attached, the TL was tested with one false break and another one hit the TL and fall back. I thought this time was a bingo and I shorted it as per attached on 1hr TF. I zoomed in to 15min TF to capture the entry (which is at 5pips below the candle's low which nearly hit TL) so as to minimize my risk.

Result: Few hours later, Ouch!!! This pair breakout of the TL... Is this a breakout or false break?

Can anyone please enlighten me on the following questions:
1. Did I draw TL correctly on the 4hr TF?
2. How to confirm if the candle which nearly hit the TL and has some retracement on the hourly basis is the correct current hot swing high candle that we can short sell?
3. Do we need to wait for big pic 4hr to show some signs of retracement before we act? But this brings our stop loss even further away from entry...
4. If this current price has broken out of the old TL but still fallback to the old TL's trading range, do I need to redraw the TL from the highest of 4hr TF point to this recently swing high?

I've traded 3 pairs recently with this strategy only to see I'm being cut, confidence also hurt, can anyone help???
Thanks

[capitala4]

Hi Simple forex & Others

I have recently gone through all your post and discover that this system is near to perfect trend trading. I will try to implement it and see how far I can adorpt.

You all are great

[TrendTrader]

Here are couple setups, one I am already in long, the EUR/USD and I'm just waiting for a sign to get out of it. 33 pips in profit so far

gbp/aud, breakup can happen anytime in any direction.