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

[Almandine]

We have a sell setup on GBPJPY H4. The price touched the H4 downward trendline from below.
There are some additional confirmations too: there is a bearish pin candle, the price touched the upper Bollinger band, and the Stoch is in the overbought area. The upper trend is bearish. It is a high probability short setup.

[tps]

hi cpr,

I'm not sure why I cant post a chart; I will have a look over the weekend and see if I can fix that; at this stage on this strategy its just a demo, but the resluts have been great so I plan to go live after Easter; I trade another strategy in my live accct.

generally profitable but it is and has been a challenge have been at it for a few years now and its been hard; the key is discipline and spending the time learning the strategies; its not easy;

Almadine; re the sell on GBP/JPY yes that looks good I took it earlier; lets see if it pans out. also the AUD/JPY looks like the same trade which then may set up the NZD/JPY

[Almandine]

tps, you can use one of the free image hosting services to post pictures, like this one:
http://imageshack.us

[cpr]

We have a sell setup on GBPJPY H4. The price touched the H4 downward trendline from below.
There are some additional confirmations too: there is a bearish pin candle, the price touched the upper Bollinger band, and the Stoch is in the overbought area. The upper trend is bearish. It is a high probability short setup.

Can you please post the chart? I don't see the same set-up on my charts..

[cpr]

hi cpr,

I'm not sure why I cant post a chart; I will have a look over the weekend and see if I can fix that; at this stage on this strategy its just a demo, but the resluts have been great so I plan to go live after Easter; I trade another strategy in my live accct.

generally profitable but it is and has been a challenge have been at it for a few years now and its been hard; the key is discipline and spending the time learning the strategies; its not easy;

Almadine; re the sell on GBP/JPY yes that looks good I took it earlier; lets see if it pans out. also the AUD/JPY looks like the same trade which then may set up the NZD/JPY

The good thing on this strategy is - it is VERY simple.. no need of any indicators.. But the challenge I have is since the day I started (from one week), I have not able to spot any trades except one is USDJPY.. on USDJPY I enteted order for short.. but the price never hit that.. I closed the trade. no loss though..
I would appreciate if you share your experience also on this strategy..

[cpr]

Possible short on USDCAD on H4 TF.. Thoughts ?

[Almandine]

We have a sell setup on GBPJPY H4. The price touched the H4 downward trendline from below.
There are some additional confirmations too: there is a bearish pin candle, the price touched the upper Bollinger band, and the Stoch is in the overbought area. The upper trend is bearish. It is a high probability short setup.

Can you please post the chart? I don't see the same set-up on my charts..

Sure.
Here is the D1 chart with the trendline (blue):

GBPJPY_D1.jpg (37.27 KiB) Viewed 6372 times

Later I realised that it is not a simple downtrend, but a triangle. That's the reason of the second (lower) trendline.
And the H4 chart:

As you can see, the trade is still undecided yet. I placed a Buy Stop order in the case the price breaks through the TL.

[cpr]

Almandine,

Thank you for the chart. I am not sure whether or not you are using ZIGZAG indicator. If I go by that indicator, I don't see a trade in Daily chart. But I do see your trendlines on the daily chart connecting two points.. and I also see that triangle pattern.

However, if I go to H4 chart, I do see the price is hitting the trendline using ZIGZAG indicator... According to this strategy, we should be be selling (main trend is down) this 5 pips (entry order) below the trendline.. But the next swing high is almost 200 pips high. which is supposed to be stop loss accrding to this strategy but that does not fit the money management aspect..

Hence I will be watching this strategy., not selling for sure..Unless I see a big pin bar to the down. I may buy this if it breaks the trenlind keeping sl just below the trendline for 20 to 30 pips.. The tp would be around 139.50 since I see a lot of traffic in that area on Feb 8th and 9th.. it is on H4 chart.. Please let me know what do you think ? Your thoughts are, as usually, always appreciated.

Here is the H4 chart on my platform.

[cpr]

I just took a short trade on AUDUSD basded on this zigzag indicator.
Lets see how does this progress ?

[wirrison]

Almandine,

Thank you for the chart. I am not sure whether or not you are using ZIGZAG indicator. If I go by that indicator, I don't see a trade in Daily chart. But I do see your trendlines on the daily chart connecting two points.. and I also see that triangle pattern.

However, if I go to H4 chart, I do see the price is hitting the trendline using ZIGZAG indicator... According to this strategy, we should be be selling (main trend is down) this 5 pips (entry order) below the trendline.. But the next swing high is almost 200 pips high. which is supposed to be stop loss accrding to this strategy but that does not fit the money management aspect..

Hence I will be watching this strategy., not selling for sure..Unless I see a big pin bar to the down. I may buy this if it breaks the trenlind keeping sl just below the trendline for 20 to 30 pips.. The tp would be around 139.50 since I see a lot of traffic in that area on Feb 8th and 9th.. it is on H4 chart.. Please let me know what do you think ? Your thoughts are, as usually, always appreciated.

Here is the H4 chart on my platform.

GBPJPY -Mar 27-2010.gif

Not what I think, but what the strategy says, If the distance to the next swing(high/low) is too big for your appetite then you need to get into smaller timeframes to see if the situation supports your money management and also make sure there's confirmation of trade by trend bounce. The originator of this used to trade like 10 - 15 trades/day, in the 15min, 30min, 1hr,4hr charts... if you look at his demonstrations, you will see the timeframe on the screenshots on the old forum. To make that learning curve go faster, it is advisable to go into smaller timeframes as well, just to see what's there. It's like a Chalie Chaplin version of long timeframes and it's frustrating, but enlightening... shorter tieframes promote more exposure to experience and implicit trading. HOWEVER. BE CAREFUL NOT TO OVERTRADE.