Trading trendlines and chart patterns only

I wanted to open this thread in the interactive forum but don't have enough vouchers sadly. Well, why I want to start this thread is quite simple. These days people are using all sort of indicators and make things complicated for them self. I don't really think that that is a good way to trade. Using Stochastics and RSI and so on can fail big time. How many times do we see embeded stochastics? How many time do we see RSI overbought and prices still continnue to go up? How many times do we see MACD cross and next day the trade fails miserably? I don't think I have to answer this for many of us. I've tried many things, even news trading and it simply didn't worked. What did work was simple trendlines and chart patterns recognition. Indicators can sill be used tough but I wouldn't trade on them. The only thing I add is Fiboncacci. So let's keep it simple and clean. Don't need 1000 trendlines in one chart. Just a few and pattern recognition.
So the first up is the EUR/USD.

EUR/USD is trying to form an inverted head and shoulder on the daily. If you don't know what an H&S or Inverted H&S is I would advise you to go trough the basics of patterns recognition. More of pattern recognition can be found here. http://thepatternsite.com/dbw.html

So we need to break the neckline first before we could continnue north.
But. even if we break how far will we go? looking we also see a broadening descending wedge pattern on the daily. This pattern tends to be positive. so one day the Euro will rally against the USD. But looking at the bearflag what is also forming I don't think we will break out to the upside on the first attempt.
Here is my trading plan.
I will go short on the EUR/USD around the 1.2770 area. Will place a stop 150 pips higher. and target towards the 1.1300 area. I think the RR is pretty good for this on.If we start to trade sideways I will close my position and will wait for the break out to the upside.
Here is my chart.

Even tough it isn't really forex trading but look at the S&P500 monthly chart. Added some fibonacci what had a perfect touch during the crash. But the question is, was it really a crash? If the red trendline breaks out to the upside we are set to see some inflation and dollar weakness.

USD/JPY.

Still within. Wonder what direction we'll break out. I think upwards but time will tell.

GBP/USD daily and hourly.

For now I think GU is trying to setup an inverted H&S as well on the daily.
The thing here is that we might overshoot the neckline at first then make the second shoulder and then nail it and head higher.
Also added the hourly. I've taken the long side and luckilly got the full rally we've seen with GU.

USD/CAD.

Let's see how this develops. A break of the green horizontal line would indicate a double top is set and a decline first to the lower trendline and break would give more selling pressure. A break to the upside would open the road towards 1.0850 area.

I like where this thread is going. This is the way I trade. You guys might be interested in this post
http://www.forexfactory.com/showthread.php?t=250637
maybe we can work to make this work real nice and bug free.

Tipster

I like the way you trade, hutrader.

The only professional way for trading is trendlines, patterns, pivots and fibonacci. If you see fund managers and professional technical analysts they NEVER NEVER use indicators ... and 80% use daily or above time frames ... The holy grail is to synchronize individual psychology with collective psychology of all traders and indicators badly fails to synchronize but traditional way does because majority of traders using traditional way and their usage makes this traditional way for markets to react perfectly.

Chart and Candle Patterns - Bulkowski (free access)
https://www.forexfactory.com/thread/...3#post14767513