Attachments: Trendline Break (The Only System You Need)

Trendline Break (The Only System You Need)

#21
Apr 11, 2009 12:19pm Apr 11, 2009 12:19pm

taomql4
Joined Dec 2008 | Status: Resident Psychiatrist!!! | 2,600 Posts

Quoting jgadefelth

Disliked

jhig will it work with a demakrk undicator that are mentioned by someone ?

trendlines are otherwise verry personal 10 persons can draw 10 different trendlines on the same chart ?

best regards

Ignored

Fantastic question---

this should tell why demarker indicator users are not so satisfied---cause sometimes trendlines are not broken but respected--and you sometimes end up looking at the price travel between the supply and demand line all day---

#22
Apr 11, 2009 5:27pm Apr 11, 2009 5:27pm

Jhig
Joined Oct 2008 | Status: Sentiment and Global Macro | 2,321 Posts

Quoting taomql4

Disliked

Fantastic question---

this should tell why demarker indicator users are not so satisfied---cause sometimes trendlines are not broken but respected--and you sometimes end up looking at the price travel between the supply and demand line all day---

Ignored

Sorry, I'm un-aware of the De Mark Indicator. Trendline Break system is a "modular" setup to where you could use Ocsillators Indicators as well as Pricing Action Indicators to increase trading profitability. For instance, you could use an Stochastics to guage market reversals and time exits strategies. In addition you could also use MACD in the same manner as well as Parabolic Sars to say, confirm directions and trend reversals.

A personal favorite of mine is to use Fibs w/ trendlines to gauge the depth of the reverals and to anticipate wha fib level price will bounce off. Pivot Points could be used as well in the same degree but with slightly different rules of engagements. I would invite traders to get a solid grasp of the basics in using trendlines before adding additional indicators.

#23
Apr 12, 2009 8:24am Apr 12, 2009 8:24am

juicyt
| Commercial User | Joined May 2008 | 480 Posts

Hi, thanks for sharing. On the pictures you posted can you please tell us what candle patterns you entered on? I am seeing a lot of reversal candles that occured, then price went through your trendline and reversed and continued in the same direction. So is there a reason you were not triggered into the trades? Do you, for example, only enter on the close of the candle to avoid the false breaks?

Thanks

Quoting Jhig

Disliked

Example
A example of a trade setup on a 1 Hour timeframe.

Attachment

Example of trade setups on 4 Hour timeframe

Attachment

Ignored

"Even if you fall down face first, you still went forward."

#24
Edited 9:18am Apr 12, 2009 8:46am | Edited 9:18am

Jhig
Joined Oct 2008 | Status: Sentiment and Global Macro | 2,321 Posts

Quoting juicyt

Disliked

Hi, thanks for sharing. On the pictures you posted can you please tell us what candle patterns you entered on? I am seeing a lot of reversal candles that occured, then price went through your trendline and reversed and continued in the same direction. So is there a reason you were not triggered into the trades? Do you, for example, only enter on the close of the candle to avoid the false breaks?

Thanks

Ignored

Trade is executed at the close of the candle break through candle. As with all trading systems, there will be false signals. The key to avoiding these false signals is knowing how to place correct trendlines & not rushing into a position. You could also us Stochastics 8,3,3 to guage over-bought areas. As with any market the trader must use discretion when entering into a postion. Risk management should always be on a trader's mind

#25
Edited 9:21am Apr 12, 2009 9:09am | Edited 9:21am

Jhig
Joined Oct 2008 | Status: Sentiment and Global Macro | 2,321 Posts

People, seriously! This trading method is one of the easiest trading method ever implemented and it seems everyone is making this more complicated than it has to be. Everyone is looking for this guaranteed profit-making system and I'm sorry, there isn't such a strategy; trading system. The market is based on a huge phletora of unknowns and what makes of a good trader is the ability to manage Risk and choose to trade in the right direction of the market at lease 60+ percent of the time; that's where this system comes into play.

As I said in another thread, the maket is full of unknowns and everything is NOT in your favor. We retail traders sit in a plastic life boat riddled with holes in the thick of the sea, millions miles away from shore in the mist of night; darkness surrounding. Man eating sharks all around. Wading out the most horrific storm. We hold no control over what go on around us. The only thing that is for certain is the entire world is betting against us; anticipating our demise. The only thing we traders have on our side and have complete control over is Risk. If traders would start focusing on handling the situation of what we do have control over and not dealing with the problems of what we don't have control over ... you'd see a lot more profitable traders. The trader with the most indicators and physics based, complicated system; is a trader that is answering a question to a problem no one knows of or haven't a clue about. These are the traders that are afraid and haven't grasp any info or knowledge on how the market works. These are the 95 percentiles that statistically, we hear so much about.

#26
Apr 12, 2009 9:16am Apr 12, 2009 9:16am

vxdxm
| Joined Jan 2008 | Status: Trader | 40 Posts

Keep up the good work Jhig

#27
Apr 12, 2009 12:31pm Apr 12, 2009 12:31pm

gutek04
| Joined Mar 2009 | Status: Trader | 84 Posts

I dont know if You guys seen this but here is some good site with patterns.

http://www.thepatternsite.com/CandleVisual.html

#28
Apr 12, 2009 2:18pm Apr 12, 2009 2:18pm

FX_California
| Joined Jan 2007 | Status: Trader | 290 Posts

Jhig:

Thanks for your good work. It's the best if we can keep it simple. Can you please post some live trade example with chart (it could be on demo also), so that we can follow better?

Thanks,

-FX_California

Quoting Jhig

Disliked

People, seriously! This trading method is one of the easiest trading method ever implemented and it seems everyone is making this more complicated than it has to be. Everyone is looking for this guaranteed profit-making system and I'm sorry, there isn't such a strategy; trading system. The market is based on a huge phletora of unknowns and what makes of a good trader is the ability to manage Risk and choose to trade in the right direction of the market at lease 60+ percent of the time; that's where this system comes into play....

Ignored

#29
Apr 12, 2009 3:10pm Apr 12, 2009 3:10pm

enochben
Joined Dec 2007 | Status: a.k.a. the speculator | 931 Posts

You have mentioned pivot points a few times - I am going to assume that you look for reversal patterns around a pivot point and use the same sell setup?

Thx in advance.

#30
Apr 12, 2009 6:51pm Apr 12, 2009 6:51pm

darkness
| Joined Feb 2009 | Status: Trader | 213 Posts

Do you draw the trendline looking at longer term chart and then execute trades based on the 5m chart as you mentioned? I would think that trendlines on 5m chart are not as significant, prone to false breakouts.

Do you take into account news and keep or stop trading around significant news times?

What is your typical stop loss and profit target?

#31
Apr 15, 2009 11:50am Apr 15, 2009 11:50am