Trendline only system- Please critique

Hi All,

I just want to thank everyone so far for all their help and feedback, this forum and all its members are fantastic.

Ok I will get right to it: I have attached an example of what I will try to explain below and am looking for imput or criticism or whatever on this method as it ONLY uses trendlines.

So what I have been trying for a short period of time is choosing entry points on the live date only if the following occurs:

5day chart, today being the 9th- I would take a trendline high from the 6th runninng into the trendline high on the 8th continuing the line into the LIVE date the 9th. I would do the same with the trendline low from the 6th into the low on the 8th continuing the line into live date the 9th. I would replicate this using the 7th also same as above and ALSO hitting through the 8th with line continuing into the live on the 9th.

So essentially 2 trendlines-using previous to live always as key point. Should BOTH trendlines cross an entry point short or long I would enter the position.
Should both trendlines show and entry point the size of your thumb or smaller its an excellent entry point. In this instance shown in the attached example
it was a !! STRONG entry Short which I did at 1.1784 with a limit at 1.1745 and a stop at 1.18.

I hit my mark and took my gains very happily.

Now I have had great success using this method, however have not yet used it for the duration of a full month.

I have had some feedback thus far saying to use this as indicators only and rely more on support and resistance lines rather than trendlines. Although when I first was doing this i was using only 1 to 1 trendline now am using 2:1 and in some instances 3:1 if I am unsure.

Any feedback or imput at all would be Greatly appreciated

Thanks

Hi there-

ok please help me out here if this is just luck-

I have used the same methodology on 2 other positions with the same success- using march 5 to 8, 6 to 8 and 7 to 8 all crossing through into the LIve March 9th. Now 3 for 3 on the day

please view 2 other examples and please any input on this at all
thanks

If it's working for you then stick to your plan, keep working with it and as time goes on you will probably evolve your method or keep it as is. Nothing is wrong with trend lines, they have been around as long as trading.

Asking for feedback on a forum has proven to be pointless. Where do you think the 90% who fail hang out?

kevlot, I think what you are doing is fine if you incorporate the S&R lines into the mix. When you do that, you will actually be unwittingly setting up 1-2-3 trades, wherein Point 1 is a recent hi/lo (S or R), Point 2 is a level of retracement from Point 1, and Point 3 is the break of Point 1. You may still take your entries exactly where you are now, but be mindful of the S&R lines with regards to taking profits and potential reversals. What you are doing is taking more aggressive entries, and that is fine if you have a gameplan to defend yourself when price stalls out at one of these spots.

Make sense?

hidethereal and forexyo,

Thanks so much for your feedback_

I have actaually been backtracing my trendlines further and on the 3 positions i entered today in which I was successfull the back trends on the 20 day charts further supported.

I do have a relative short Stop on all the positions and not a huge limit no more than 50 pips on the direction attained. I am still working on putting together some more rules which is why I have the short spreads- perhaps that is always why I have been able to pull these off.

Trading right now I am using the turtle wins the race mindset- not looking for letting these ride just yet untill i am more comfortable

Thanks again

Your on the right track, support & resistance are the drivers of the market, they correspond to fear & greed. If you dig trend lines, check out some of the Andrews' pitchfork & medium line ideas, it will blow your mind how many of the highs and lows line up.

damn straight.but sometimes u can learn from another failure maybe can suit this...but..darn i still smile.

Very true, and this has a lot to do with why I am at the point that I am.

People have a tendancy to question there abilities and seek advice (usually from the wrong people) which ends up leading them to over analyization and then the search for perfection (holy grail).

Trading is as hard as you make it.

trendlines and S and Res are easy to trade but how often do you get them bounce or penetrate? that's what's killing me. Other iwise from that it wrks. period

it is, out there , the trend of indicator !!! like "it is the RSI week" ,,, or thing like that,

sometimes it is even the "move the other way as the news said" trend,, or "wait 5 min after the news to move"trend... it hapened..

ahem,, back to topic,
about s & R , i prefer to use it as a time indicator, like when should i concentrate in front of the chart, or i just leave it to stop & limit.

Combine trendlines (and trendline breakouts) with horizontal levels of support/resistance (previous swing high/lows, pivot points, etc) and chart patterns (flags, 1-2-3's, triangles, etc) and you will be definitely onto something.

WTB,

I have been trying that using the S/R horizontals overlayed on my 3+ trendlines on 20 day and 5 day charts.

Essentially what I have been doing is ONLY enter positions in which there are 2 or more closely linked trendlines from different points all of which use the one precending day as the single point. Ie as with my example in the 3 attached, if I am looking to enter on the 9th I will go back 20 days and 5 days choosing trendlines from multiple days all targeting highs and lows on the 8th- extending these lines through into the 9th.

If they break either short or long and ONLY if it breaks on multiple trendlines then I enter. If its one trendline only or its to netruel i wont enter.

As for the S/R I am only using this now in combination of the timeframe I want to let the position sit for as well as to attain the possible returns but am still focusing ONLY on the trendlines for entry and S/R for mesurement of how long or not to hold the position- of course with Stps and Lmts always in Place.

On a few occassions I have removed the limits and taken partial profits then adjusted the stops to break even. that is of course only when I have the time to sit infront of the computer. I find that invokes too much physcological tendencies on my part which I am still working on in being disciplined. You know watching that Profit/Loss reading show Profit+++ and more +++ you want to ride it out.

best advice is pick a point and stick to it- take your gains and be happy with them.

BTW

This forum is amazing and I thank you all for your support and feedback as you ahve all made me feel very welcome.

You couldnt be more right.

Im learning that discipline + patience is key here. Money management, lock in your profits and protect your capital. If i do that i all the time, i'm going to accumulate some wealth thru trading.

2 years old thread

Spasibo muzhik.