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Trend Trading All Pairs

  • Post #1
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  • First Post: Nov 27, 2009 10:22am Nov 27, 2009 10:22am
I am starting this thread for those who wish to exploit the trends on any pair or time frame. Post your charts, entries, targets...etc
Hi, I would be really interested in some of your insights and trading system. I appreciate your willingness to help.
The system I use is rather basic, I will post some charts, I use 3 SMA lines, set up as a 30 SMA 50, and 100, and those help me determine the if we are trending or not, let show you with a couple of charts one showing a trend and one that is not trending. What I look for is for ALL of the MA lines to be parallel and pointing in the same direction. If the lines are crossing and all over the place then the pair is not trending on that time frame. Notice how lines are nice and parallel and all pointine in the same direction...
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Quoting flo7002
Hi, I would be really interested in some of your insights and trading system. I appreciate your willingness to help.
No problem, I am getting ready to start posting some charts
Quoting NightMoves
The system I use is rather basic, I will post some charts, I use 3 SMA lines, set up as a 30 SMA 50, and 100, and those help me determine the if we are trending or not, let show you with a couple of charts one showing a trend and one that is not trending. What I look for is for ALL of the MA lines to be parallel and pointing in the same direction. If the lines are crossing and all over the place then the pair is not trending on that time frame. Notice how lines are nice and parallel and all pointine in the same direction...
Now this shows a pair that I would avoid on this time frame using this system notice how lines are crossing every whichway, not a good idea to trade this in my opinion, just whay to risky...
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The reasion I use the MA lines is because they are dynamic and they will move with the pair, markets are not perfect, and just playing off the straight trend lines...well those are breached many times and and can be difficult to use consistantly, however they do have thier place and I will go over that very soon. The MA lines can tell you a lot about the how healthy the trend is, the 100 MA is one I watch very close, if that starts getting tested then there is a possiblity the trend could be running of gas...
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Quoting NightMoves
The reasion I use the MA lines is because they are dynamic and they will move with the pair, markets are not perfect, and just playing off the straight trend lines...well those are breached many times and and can be difficult to use consistantly, however they do have thier place and I will go over that very soon. The MA lines can tell you a lot about the how healthy the trend is, the 100 MA is one I watch very close, if that starts getting tested then there is a possiblity the trend could be running of gas...
In a trending market you to see the price harmonicaly bouncing off of those trend lines, the market will always come back to those in a trending market. And those are the areas I look for entries and will go over that in a little while. Those 3 MA are the only one I use and nothing else.

If we have an uptrend always look for higher swing highs and higher swing lows and of course the opposite in a down trend, but it must be harmonicaly bouncing in the are of the MA lines, I will tell you the bigger players like to enter in that area. And that is where price action comes into play, if the market is far away from those lines I will always let it come back to those before I look for an entry.

Now the charts you are looking at I call my setup charts, I do not trade off of those. I only use them to look for the setups. I use a smaller time frame to find my entry point and that chart will be my trigger chart...
  • Post #8
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  • Edited at 11:25am Nov 27, 2009 11:22am | Edited at 11:25am
I also draw the trendlines on the setup charts, as I said before they drawn trendlines have there place, here is the EURUSD pair with the trend lines in place, the horizontal line represent the support and resistance lines and as you can see it looks like the Support might hold, as it bounced not only off the daily trend line but it there was a support line in that same area. So we actually have a confluence of support in that area. That is one of the keys to this system is to make you have a confluence of S/R in the entry area. Examples would be Previuos swing highs or lows, Fib numbers, and round number areas, on my charts my grid is setup so only the round numbers are showing, like 1.00, 1.50,2.0...etc Those work as S/R as well. So in basic I wait for the market to rebound back to the MA lines, and look for a confluence of S/R in that area, I need at least 4 confluences before I even think about taking and entry point.
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Now how do I determine when to trigger a trade...well here is how I do it, I will draw my trend lines and look to make sure on the setup chart that we are in the area of the MA lines and that we have our confluence of S/R in that same area, now I will switch to a smaller time frame, usually I use a divide by 4 rule, if we are on the hourly chart for a setup chart then I use the 15 minute chart for a trigger chart that way you can see the price action better. I wait for the price to break the counter trend line and then I WAIT again but this time I wait for a pullback, I like to see about 3 or 4 bar pullback then when the price breaks below the start of the pullback that is where I trigger the trade, I place my Stop right at the area where the pullback ended or a few pips above or below...And I DO NOT move it, if it backs up and triggers my stop, then so be it. I will give examples of how I do this, and also how I set my targets using this system. And also I do not trade if the pip spread is higher than 7 pips, if it is then I leave it alone and look for lowere spreads, but that is just how I do it.

Always remember that the higher time frames will prevail over the smaller time frames. There will be trends within trends...etc
So basically here the rules for this system when looking for an entry point:

1. MA's must parallel and pointing in the same direction
2: price must be in the area of SMA lines to look for an entry
3: There must be a confluence of support and resistance in that area, Fib number, previous swing high or low, round numbers, trend lines...etc
4: Wait for the pullback and continuation formation on the trigger chart.
5: Set stops above the pullback on a down trend and below on an uptrend and do not move them.


I will post charts showing this entry system using some trades that I have taken.
Quoting NightMoves
Now how do I determine when to trigger a trade...well here is how I do it, I will draw my trend lines and look to make sure on the setup chart that we are in the area of the MA lines and that we have our confluence of S/R in that same area, now I will switch to a smaller time frame, usually I use a divide by 4 rule, if we are on the hourly chart for a setup chart then I use the 15 minute chart for a trigger chart that way you can see the price action better. I wait for the price to break the counter trend line and then I WAIT again but this time...
Good job NightMoves,
there is still something to learn from each other, especially good entry points to determine,
keep going bro coz there is always someone to look for suitable strategy for himself.
well done
Do not follow the path trodden by human laziness.
Quoting FiXed sense
Good job NightMoves,
there is still something to learn from each other, especially good entry points to determine,
keep going bro coz there is always someone to look for suitable strategy for himself.
well done
Thanks, I do not calim to be an expert by any means but I do know this system has worked for me, over and over again, what I would recomend is practicing with this on a demo account, and get as much screen time as you can, and back test it so as I did, I practiced this system a lot before I went live with it, I figured if I can go 2 solid weeks without a losing trade then I am ready to try it live. And I have not looked back since. It is the only system I use and it works. I have my charts set up so I can see every pair that I trade, here is what I see in the morning, I use Metatrader for my charting package and I trade on another platform I look to see what pair might offer some trading opportunities in the morning and I make a list of those pairs, and that is my watch list for the day..
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Quoting NightMoves
So basically here the rules for this system when looking for an entry point:

1. MA's must parallel and pointing in the same direction
2: price must be in the area of SMA lines to look for an entry
3: There must be a confluence of support and resistance in that area, Fib number, previous swing high or low, round numbers, trend lines...etc
4: Wait for the pullback and continuation formation on the trigger chart.
5: Set stops above the pullback on a down trend and below on an uptrend and do not move them.


I will post charts showing this entry...
Another thing I should mention too, is look at the Average daily range, and make sure you have enough room to make the trade in the direction of the trend, in my charts I have and indicator that shows me the current days range and the average daily range, and using the ADR and round numbers intself has netted me a lot of good trades, rememebr those round numbers are areas where stops and targets are set by many of the big players and more times than not when the prices reaches those numbers something will happen look at the chart showing the USDJPY and looked at the price action around the grid lines...those gridlines are the round numbers..this is my trading chart...
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Here is how I set my entries, looking at the chart, we are in a down trend so I am looking to short this pair, You can see it has broken the retracement line, price is bouncing off a round number, I am near the MA lines, and then it breaks below the retracement line, I wait for the pullback, and when it continues on down below where the pullback started I place my entry, I placed my stop above the pullback high, if you do not wait for the pull back and place the entry as soon as it breaks the retracement line, well the retracement may never stop and that could really be a bad scenario so always wait fot the pullback. This example took a little while to get going but you can see it clearly did. And did not come close to the stop...
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Always make sure to check the longer term charts as well to make sure there is no longer term conflicting signals, S/R levels on longer time frames will affect the smaller trends if that is what you are trading. And remember
if a winning trade begins to show weakness, pull the profits off the table, and reload the gun later when the next opportunity arises, never let a winning trade turn into a losing a trade.


More charts an examples to come....
If anyone has any questions at all I would be happy to answer them if I can help at all with this system, this is a very solid system once you learn it and apply the rules. I will post charts showing the Conflunence os S/R so you get an idea of those. I guess the main thing there is no system that will work if you do not follow the rules, and I have found myself at times not doing that so the system did not fail me on those trades that I did lose I failed me by not following the rulles.
I have also recorded some live trades using this but I am not sure where to post them. If anyone wants to post their charts and setups feel free to do so, as we go on eploiting these trends. If you see a setup post it, I will do the same and then we can discuss it. I actually record many of my trades yes even the losing ones, I keep a journal to help remind me of what I did right or what I did wrong and a check list to make sure that all the entry criteria is met before I place a trade. And do not forget about intratrade management I am sure most everyone is familiar with that.
One of the pairs I am keeoing an eye on is USDJPY right now, I am waiting for a retracement back to the Pink line which is a previous swing low, and on a round number, the MA lines should be caught up by then, there is also the FIBO range there, I do not look for a specific fibo number I look fo a range between 38.2 and 61.8, I do not use the 23 fibo I feel the retracement was not deep enough at that level, and beyond and if the backs up to the 76% level I feel that is too deep. So I look for a range or a window. Then I look for the other confluences to come together in the same area, so this is one pair I am watching and waiting for some possible short oppotunities.
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Thanks for starting a new thread NightMoves!
I will give it a try and I will try to post my charts here to discuss it before I open a trade
I have a problem following the rules so I keep losing I know this is my problem, I need something that would keep me away from opening trades in a wrong moment, it all takes practice, practice and practice
I am really trying hard

cheers
Quoting akurs
Thanks for starting a new thread NightMoves!
I will give it a try and I will try to post my charts here to discuss it before I open a trade
I have a problem following the rules so I keep losing I know this is my problem, I need something that would keep me away from opening trades in a wrong moment, it all takes practice, practice and practice
I am really trying hard

cheers
I know the feeling, but you get steadfast in only plying by the rules you will be gin to see the pips come in, there many times I could jump into a trade because you just know it is going to go...and then it does not and you get hit. Using this system or method there may be times when you miss a trade all together, but then wait it will come back, and I would rather be out of a trade I wished I was in than in a trade I wished I was out of...

I use this sytem and only this sytem and I will help you with it, it is a good system there is more to it like intratrade management and such. and risk reward ratio but practice the system and get used to it and it works, it is one of the very few systems I have seen out there that works many systems take a lot of decoding to make it work, but not this one, if you do not see a good trade set up then believe me it is not there, a good setup sticks out and then you just plan your entry with the 1,2,3 reversal pattern and your on your way, I do it everyday with this.

If we all start posting charts and setups then everyone will understand it much better. then I will show you how to pick targets
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