I will explain an easy entry on a channel and a trendline base on this recent chart.
Channel:
- A channel require 3 spots to establish.
- So I drew 3 yellow circles to indicate how i drew it.
- Squares 1 and 2 are 4th and 5th spot which I mentioned high probability winning trades.
- Even if you enter and it breaks the channel, the loss you get are relatively small, even if its a fake breakout, you only lose a trade of maybe 10 pips, you can reenter when it enter back into channel again, if its a valid breakout, close the losing trade, and reenter with the breakout trend, or last, wait for retracement.
Trendline:
- A trendline just require 2 spots to establish.
- I had also drew 2 circles to how I drew my trendline.
- Square 4 are 3rd touches of a trendline, and usually its valid.
Square 3 are resistance line of previous High, a good entry for short, but if enter on that spot, you will get at least a losing trade first if you have a tight stop loss, but even if you lose, its a small loss, and you reenter a short again when it come back verifying a fake breakout.
Hope this is simple for anyone to understand. Its basically simple tools of lines, we all had learned. As for indicators, used anything you like to filter trades and minimize loss. I do still make mistakes and make some bad entries, but those small 10 pips I gained, are enough to hold lot of bad entries I made sometimes.
Channel:
- A channel require 3 spots to establish.
- So I drew 3 yellow circles to indicate how i drew it.
- Squares 1 and 2 are 4th and 5th spot which I mentioned high probability winning trades.
- Even if you enter and it breaks the channel, the loss you get are relatively small, even if its a fake breakout, you only lose a trade of maybe 10 pips, you can reenter when it enter back into channel again, if its a valid breakout, close the losing trade, and reenter with the breakout trend, or last, wait for retracement.
Trendline:
- A trendline just require 2 spots to establish.
- I had also drew 2 circles to how I drew my trendline.
- Square 4 are 3rd touches of a trendline, and usually its valid.
Square 3 are resistance line of previous High, a good entry for short, but if enter on that spot, you will get at least a losing trade first if you have a tight stop loss, but even if you lose, its a small loss, and you reenter a short again when it come back verifying a fake breakout.
Hope this is simple for anyone to understand. Its basically simple tools of lines, we all had learned. As for indicators, used anything you like to filter trades and minimize loss. I do still make mistakes and make some bad entries, but those small 10 pips I gained, are enough to hold lot of bad entries I made sometimes.
The only winner is the one who survive the longest...