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Confirming Trendline breaks, chart patterns and other breakouts. 2 replies

Breakouts 3 replies

Trendline breakouts

False breaks as the longer term chart is indecisive (25 min)
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As the green candles mount up, eurusd rallies above the resistance trendline...
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Before anyone asks, the green and white bars represent when momentum and inertia of the market in that timeframe are pointing in the same direction:

Momentum=MACD Histogram standard settings
Inertia=13 ema

This is Dr Elder's 'Impulse Momentum' system in his book, "Come into my trading room".
Quoting zykas
Ya , this is a nice work , emarco. keep it up
Thanks for the encouragement.

I was thinking might wrap up the thread here, make it short and sweet. One problem I found with some threads is they are very very long, not easy for new traders to read...
On EUR/USD 1H chart, the trendline has been breached, and now it's back to the breakout point. Will you take this one, emacro?

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Hi Far East Man

Thanks for the heads up. I am ony just starting today to look at the charts.

I'd wait for the Macd histogram to hook up then can go long eurusd. By the time it hook up, momentum is in your favour (at least) and the level you enter might just end up being approx what you enter by catching the falling knife.

But if you want to enter on the retrace to the pullback level, it is still ok, as long the risk management stop you can stomach.
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This candle might see the macd histogram hook up for the entry...
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Quoting emacro
Hi Far East Man

Thanks for the heads up. I am ony just starting today to look at the charts.

I'd wait for the Macd histogram to hook up then can go long eurusd. By the time it hook up, momentum is in your favour (at least) and the level you enter might just end up being approx what you enter by catching the falling knife.

But if you want to enter on the retrace to the pullback level, it is still ok, as long the risk management stop you can stomach.
Thank you for your reply, emacro! Yea, I tend to jump in. When it works it works without indicators. But nobody knows future. I just like to take it simple. Besides, I use a tiny experimental micro account risking only 2%. So there's nothing to worry about.

That said, I think your way of trading is good.
Trading with the 60 min chart with the 5 min chart...
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this kind of trading looks very difficult, but interesting. where do you get your informations from?
This is a 'harry hindsight' trendline....
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Quoting Holder
this kind of trading looks very difficult, but interesting. where do you get your informations from?
Yes, discretion and the trader plays a role.
5 min & 60 min of euro futures.... looked pretty dodgy as US equity session opened, now seeing nice break...
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Trendline breaks, retest, support/resistance are universal across markets. 5 m chart of the FKLI futures contract today...
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Eurusd shows divergence.... the most powerful signal in technical analysis on the 60 min. A good bet for longs.

The trendline breaks shown are the ones that catch you while you are not looking....
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5 min eurusd chart trendline break....
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Some follow through on 5 m eurusd after the trendline break...
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A last post before I leave the office on the 5m eurusd...
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Can you also trade this system using the 15min chart or is it more effective in the 60min chart?
Quoting Le Loup
Can you also trade this system using the 15min chart or is it more effective in the 60min chart?
It's just trendline breaks, support and resistance points being broken. I guess you can use 15 min as trigger, but 5 min is good to trigger the trade, once the 60 min shows heads up. For example, today the 60 min showed a divergence, which as Dr Alexander Elder describes, "The most powerful signal in technical analysis..."
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