Simple System for anyone

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.

Shorted at the retouch of top channel line with 5 mins zoom in. R/R is attractive even its a 10 pips capture or more.

Small TP for 2 touches of short earlier at the channel top.

But now the pair look like they're gonna move in another vehicle, staying out atm. Below is 5 mins and 15 mins chart.

Hi kinspk

Intresting system you have, please could you tell me does the blue have to cross the red below the black line ( STOCH) to be confirmed as part of the signal or is it just as long as the blue crosses the black line

Thank you !

Hope I get your question, I will try to quench your doubts as much.

- I dont use any cross-over of MA, Stoch, MACD, etc as signals.
- The black line is RSI, I just merge 2 indicators(Sto and RSI) in 1 indicator window.
- I use Stoch for swing high/low.
- I use RSI for strength and momentum, sometimes I used CCI and ADX.
- The 20-60, 40-80 acts as a channel of uptrend or downtrend channel/transition of clustered price movements(I treat clustered prices as a swarm of bees moving).
[I learned it from one of a thread here in FF, cant remember which, if i came across again, I will update in my first post, but I applied my own other observations and understandings to it]

Hope you understand what I mean, if not, feel free to ask.

I just shorted from the confluence area for small profit. Below I posted an example of the 20-60 channel to establish the downtrend sentiment. I also highlighted in small red rectangles of how it is kept in the channel, how the fake breakout being identified.

Oh sorry I didn't notice that there are 2 indicators in 1 window.
Thanks for that explanation it'll surely help me alot.

Easy 10 pips out of the 20+ pips range, and opportunities appeared twice.

After collecting few sets of 10 pips profits, its good to stay out and look at the bigger picture, and start waiting again...

Look like one good opportunity, may adjust TP if I am in front of chart

Outlook on H1 chart for my short term entry. Lets see if it sit on the trend line or the S/R region.

Aww, I'm hurt missed TP by a pip, and it hit my SL instead when I'm out.

Aww, missed this as well from US unemployment claims. Technically reversed from channel too.

Gonna monitor this and wait for a retracement to re-enter at daily chart.

Longer term outlook.

So boring yet a bit happy as most of my savings I invested in Asia stocks Aug 2011 (during bad times) finally put me up at 30% gain, breaking new high of this 2 years. Gonna sit on it and see how it goes months or years ahead.

Good opportunity to short, 86.40, SL = 86.55/60 and trailing stop = 86.55/60. TP = 86.30, 86.20, 86.10

Though not the best entry, but trendline and channel respected. 15min downtrend angle incremental by approximately 10 degree. SL adjusted for tighter loss and maybe breakeven later.

50% of position closed @ TP1.

Pending closure remaing 30% @ TP2 and 20% @ TP3.
SL adjusted to breakeven, trailing stop removed. Free trade. Small profit banked.

TP2 taken, but TP3 hit SL. :S

My thoughts

Had read some threads and make me think on this statement "Trend is your friend"

- It may be your friend if you luckily ride on it, it's your enemy if you ride the wrong way.

- Many had claimed trading trend is easy, but is that really easy? Do you know when to enter on the start of a trend? Do you know where to exit a trend? If you pick top and bottom, you had also pick support and resistance.

- Eg, you are approaching 1.3000, previous high at 1.3000, but past few candles had been bullish, keeping going up, do you treat it as a resistance and sell at 1.3000 or do you follow the trend and long at 1.3000. I am just giving you an example, it's a whole lot different when you are trading live at that moment. But if you approach it as a probability, it doesn't matter it's a trend or range, you still make money, because you don't determine or predict the market.

- It's never easy for newbie to trade a trend, because they will not know how to exit, or how to manage the profit, which end up a loss eventually. But for range, its easier, think like a box, you enter on point A of it's breadth, and exit at point B of it's breadth.

- Eg, I like to trade AudJpy, I know how much average pips it provide in a trend for a specific timeframe I trade, so i exit at the nature of it's trend. I know how much it retrace for that TF, so i enter or counter trend on retracement. So does it for range for this pair of my preferred TF.

- We don't determine TP at 100 pips, or 500 pips, or whatsoever, we only TP at what are given to us.