Trendline Break (The Only System You Need)

Don t let it die .....

Ducke: Please explain your system. I think it would be interesting. Explicà tu sistema por favor. Puede ser interesante. Un abrazo.

Good day,
Very good thread I hope it can be revived. I am not good at postin pictures...let's hope this works.

Now in play....steep TL let's observe

In order to mitigate the losses from false trendline breaks why not use a 5 min tlb after a 4 hour tlb and then let it run with the potential reward of a 4 hour trade but with 5 min risk. See attached.

good idea, and good first post! hehe

Hi I'm new on here spent a bit of time watching the cable thread, just read through this & learnt loads, great thread. Marked some up as backtest & looks good
Thank you, will demo

regarding post#134. Why did you change things? Did original method fail to produce?

Hey guys, it's been a long time since I posted anything on this thread. I haven't gone anywhere, been monitoring the thread in the background. Just want to chime in on a few things:

1) Direction: When you've established a trendline, remember to only trade in the direction of the trendline. Though the system is called "Trendline Break", you can also make some good money trading with the trend line as well as trading a valid break of the trendline.

2) Bounce: In addition to trading in the direction of the trendline, remember if price doesn't break the trendline and instead bounces off the trendline ... that would be a great opportunity to continue a a trend in the original direction of the trendline (trendline bounce)

Example:


This chart is a trade I took this past week and by following the direction of the trendline and playing orders off the trendline bounce(trend re-entry or reloading my long postions), I took in well over 1500 pips home this week from this currency pair alone. The idea of trading with the trendline is to establish an idea of the trend. Remember the main purpose of trendlines are to identify trends in the market. So if you use the Trendline break and trendline bounce, you should be able to identify some great price action moves.

You don't have a large enough sample size to know if this works enough to justify adding an new variable to a very simple system of trading. You can't avoid losses it's part of trading. The higher the time frame you get a trendline break, the larger the move you can expect from it. Focus on getting a few large wins and they will pay for all the small losses from false breaks outs.

I like to trade the trendline breaks because you have a trigger for entry. If there is confluence at trendline with a support or resistance level then I like to trade with the trend. If there is not confluence, then I try to take a trigger from a candle pattern on lower the timeframe after price hits the trendline of the higher time frame.

I've been practicing this system about a month. Yes this system is working for me. And what I like the most about this system is the nature of LOW SL in this trading system. On M5 chart, we can put as low as 5 pips + spread SL.

Yes I agree with JHIG, no system is a perfect green pips maker. Respect your SL. From what I learned so far, pulling back the SL in most of my case is just make the trade go even worst.

If the trade hits the SL then it's not a valid breakout. Just accept it and move on to the next trade.

I add another rule to myself in this startegy. The rule is:

"If the SL got hits too often (maybe 3 times in a row in one trading session) there must be something wrong with the way I draw the trendline or maybe something is going on in the market that I dont know about. It's time to bail out and come back another day."

Thanks Jhig!

I totally agree...good post!

Hi Josef,

Your Trendline Break System has become a very valuable tool for me in my trading. Can you please share the two other variations?

Thanks.
BC

Great thread Josef. Thanks for sharing your skills with clear chart patterns. Simple to understand and very valuable.

Cheers,
Parky.

Hello Jhig

Hope you would come back to post your trades so that we can learn from you and make this thread active?

By the way your post 169. Is the chart shown the normal candlestick or Heikin Ashi?

Sori I am a newbie.

Thanks, trade price.
I notice you have two threads.
Which is should a newbie to follow?
You seem to have a simple trading method?

TPat

HA + trendline break is good, I traded this method some days ago. Good thread, keep up guys.

City

Not that busy these days

Hi NiceGuy,

When drawing your trendlines do you use the real body of the bar for the trendline or do you include the shadow as well...?

JMWilk