Trendline Scalping 4hr timeframe | Forex Factory

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Trendline Scalping 4hr timeframe

  • #1
  • First Post: Edited Jul 31, 2010 4:06am Jul 7, 2010 4:02am | Edited Jul 31, 2010 4:06am
Guys i have a method which has been very successful for me which i wish to share with everyone else. basically its trend-line trading on a 4hr time-frame. I win 8/10 of these trades and they happen a couple of times a week.
rules:
dont trade 1hour before or after heavy economic news.
Trade only during Euro start to about 3 hours before New York end.
Look for a bullish trendline on the 4hr timeframe. After the second leg retracement buy when the price hits the line again.

tp is 50pips
sl is 50pips.

The screen shots attached are examples of this setup
The first one is of a buy setup the second is of a sell setup.
In the first pic the trend is confirmed by the first two legs. a bounce of this gradient on a third time confirms a buy.
Any questions let me know


****************UPDATE*********************
Attached is my Neural Net client for this system, please read the readme file.

How it works
it works on all platforms with 1-click execution orders.
how it works is it connects to my main nnhost which lists the trades. the trades will be visible through the nnclient and you can choose to autoexecute them if you wish. The way it autoexecutes is via mouse clicks and remembering where the buy and sell buttons are on your one click order window. so when my nnhost(which analyzses market for these trend patterns) lists a trade everyone who is connected can see that trade and auto trade it(when it hits the line on the 3rd bounce) if they choose. if you dont want to autotrade it you can just use it to view which trades i will be taking.

Trades are only for this method described in this thread.
Once connected it will auto update itself with upcoming trades

I have also tried a screen video though teh quality is pretty bad so i have included in a text file what is on the screen.
Youtube URL:
Inserted Video

apologies for the clarity i didnt have time to learn camtasia

Enjoy!
Attached Image(s) (click to enlarge)
Click to Enlarge Name: trendlinebuy.gif Size: 19 KB
Click to Enlarge Name: trender3.gif Size: 24 KB
Attached File(s)
File Type: zip dave486.zip   23 KB | 3,545 downloads | Uploaded Jul 25, 2010 1:58am
File Type: txt screentext.txt   1 KB | 2,416 downloads | Uploaded Jul 25, 2010 1:58am
  • #2
  • Jul 7, 2010 4:32am Jul 7, 2010 4:32am
Fresh, New and Nce!!!!! I trade price action using TL and fib patterns, so i'll be interested in following this thread.

But, kindly give more detailed explanation on what you do[how you determine a bounce off the TL, what candle formations you look at, which of the TL you consider-inner,outer, long term TL, etc], which pairs you trade., how long have you been using this method, and give your trading time period using GMT
Thanks.


Quoting david486
Guys i have a method which has been very successful for me which i wish to share with everyone else. basically its trend-line trading on a 4hr time-frame. I win 8/10 of these trades and they happen a couple of times a week.
rules:
dont trade 1hour before or after heavy economic news.
Trade only during Euro start to about 3 hours before New York end.
Look for a bullish trendline on the 4hr timeframe. After the second leg retracement buy when the price hits the line again.

tp is 50pips
sl is 50pips.

The screen shots attached are examples of this...
God's Love For You Is Sure Never You Doubt It
  • #3
  • Jul 7, 2010 4:41am Jul 7, 2010 4:41am
Quoting D liberators
Fresh, New and Nce!!!!! I trade price action using TL and fib patterns, so i'll be interested in following this thread.

But, kindly give more detailed explanation on what you do[how you determine a bounce off the TL, what candle formations you look at, which of the TL you consider-inner,outer, long term TL, etc], which pairs you trade., how long have you been using this method, and give your trading time period using GMT
Thanks.
sorry dude ill post a more detailed screenshot shortly.

How i determine a bounce?
i look for the low on a bull market, i wait for a retrace, then once the retrace has ended and starts heading bullish again(and stays away from the retracement level for more than 8hrs) i consider this to be the second leg of the trendline. i will then draw my gradient line on these two legs and buy on the 3rd touch. New screenshots shortly to come..
  • #4
  • Edited 6:08am Jul 7, 2010 5:12am | Edited 6:08am
Hi all, I am also using this type of trade on any timeframe and am starting to trust it more because these ones seem to work without too much of the dreaded drawdown associated with usual breakout trades. I don't use a fixed TP because I want to be more greedy and more precise. For my initial TP, I Place a Fib from the top of the first candle (for a short trade) in the "3 in a line" setup and the bottom of the fib on the bottom of the 3rd candle. My TP is the 132% extension (+spread for a short) This is the most guaranteed target. If you want to get greedier, I look to see if this target point would naturally trigger another Fib trade (i.e., breaks another swing low or candle low). In this case it triggers the pink Fib - see second pic, whose 132% ext is at 0.8454 and a profit could have been taken there. You notice that it makes a retrace at the 138.2% at 0.8450 and came up to just touch the new TL (Yellow) without breaking it, so I shorted it again there!!! The new target will be the 132% ext of the yellow Fib at 0.8437+ spread...

Regards and pips to all, Chris

PS: Anyone watching this live will see that my greed has got the better of me again and stopped out my trade. However, there is a new H1 touch of the bigger TL now, so have re-shorted with a new target area of 0.8421 + spread (new yellow fib)- fingers crossed.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: eur-usd1.gif Size: 21 KB
Click to Enlarge Name: eur-usd2.gif Size: 35 KB
Click to Enlarge Name: eur-usd3.gif Size: 25 KB
The world's true gold is it s people (CTGC).
  • #5
  • Jul 7, 2010 5:33am Jul 7, 2010 5:33am
chris nice charts! thanks for the screen uploads. great to see that im not the only one that has noticed this pattern. Yes its true can always aim for more pips than 50. Whats your success rate if you don't mind me asking?

regards
  • #6
  • Jul 7, 2010 5:41am Jul 7, 2010 5:41am
I'll suggest David explains his method in details so we could have a better focus on just one method here on this thread...except if he's confirming your method to be the same with his....so we do not have ''method overload'' which eventually only leads to a crash...

Care to answer other questions i asked David?

Thanks for your understanding


Quoting CTGCollins
Hi all, I am also using this type of trade on any timeframe and am starting to trust it more because these ones seem to work without too much of the dreaded drawdown associated with usual breakout trades. I don't use a fixed TP because I want to be more greedy and more precise. For my initial TP, I Place a Fib from the top of the first candle (for a short trade) in the "3 in a line" setup and the bottom of the fib on the bottom of the 3rd candle. My TP is the 132% extension (+spread for a short) This is the most guaranteed target. If you want...
God's Love For You Is Sure Never You Doubt It
  • #7
  • Jul 7, 2010 5:46am Jul 7, 2010 5:46am
ok guys i have added another pic at the top of this thread.


The confirmation of the gradient legs are labeled 123 for both bullish and bearish trends.

so the time elapsed between the legs is usually greater than 8hrs. when the price moves away from the second leg say for example a bullish trend it will move upwards.. it will move somewhat a hundred or so pips stay around that mark or increase for a period greater than 8hrs then when it the price comes back down and touches the gradient line(drawn by the first two confirmation legs) you buy(or sell if its a bearish trend)
  • #8
  • Jul 7, 2010 5:50am Jul 7, 2010 5:50am
just another question guys(unrelated to this thread) i am new and would like to know who i ask for permission to upload a neural network client that i wrote in c++. its a medium frequency auto trader which i wrote and would like to share.. i can supply source etc if people are worries about .exe??
  • #9
  • Jul 7, 2010 6:53am Jul 7, 2010 6:53am
Quoting david486
just another question guys(unrelated to this thread) i am new and would like to know who i ask for permission to upload a neural network client that i wrote in c++. its a medium frequency auto trader which i wrote and would like to share.. i can supply source etc if people are worries about .exe??
Why would you need permission? You wrote it, and presumably you didn't use any proprietary content, so upload away. The source code to the .exe would certainly make it easier to make sure there are no security threats, if you don't mind of course.
  • #10
  • Jul 7, 2010 7:05am Jul 7, 2010 7:05am
Quoting Ronald Raygun
Why would you need permission? You wrote it, and presumably you didn't use any proprietary content, so upload away. The source code to the .exe would certainly make it easier to make sure there are no security threats, if you don't mind of course.
thanks ronald i will! just didnt want to break any rules... ill tweak the code a bit and upload shortly to a new thread.
thanks for the response
  • #11
  • Jul 7, 2010 7:11pm Jul 7, 2010 7:11pm
Took a USDCHF 4hr trade today and it paid off. I entered short at the opening of the candle after the bounce candle [highlighted with the yellow eclipse and labelled 3]. first chat

stop loss = the top of the bounce candle formation + 20pips[buffer]
TP1= the no of pips between the top of the bounce candle formation
and the opening candle

I then adjusted my trendline as necessary. as shown in the second chart..
Attached Image(s) (click to enlarge)
Click to Enlarge Name: usdchf tl bounce.gif Size: 49 KB
Click to Enlarge Name: usdchf tl bounce ii.gif Size: 49 KB
God's Love For You Is Sure Never You Doubt It
  • #12
  • Jul 8, 2010 12:27am Jul 8, 2010 12:27am
Quoting D liberators
Took a USDCHF 4hr trade today and it paid off. I entered short at the opening of the candle after the bounce candle [highlighted with the yellow eclipse and labelled 3]. first chat

stop loss = the top of the bounce candle formation + 20pips[buffer]
TP1= the no of pips between the top of the bounce candle formation
and the opening candle

I then adjusted my trendline as necessary. as shown in the second chart..
Excellent work buddy! thats pretty much all there is to it. very successful method of trading applied to all pairs and all timeframes(i have had best success with 4hr)... its also a part of my neural-net which has added to my success..
  • #13
  • Jul 8, 2010 5:07am Jul 8, 2010 5:07am
A set up in the making for GBPUSD 4hr tf[will complete in the next 3hrs]BOE interest rate news would have seattled by then.

If the present candle ends up bouncing off the TL, then we might have a signal....if not, look forward to the next Trend line[outer trendline]

N:B
A present 1HR signal is doing marvellously well
Attached Image (click to enlarge)
Click to Enlarge Name: gu tl bounce signal.gif Size: 56 KB
God's Love For You Is Sure Never You Doubt It
  • #14
  • Jul 8, 2010 9:15am Jul 8, 2010 9:15am
Quoting D liberators
A set up in the making for GBPUSD 4hr tf[will complete in the next 3hrs]BOE interest rate news would have seattled by then.

If the present candle ends up bouncing off the TL, then we might have a signal....if not, look forward to the next Trend line[outer trendline]

N:B
A present 1HR signal is doing marvellously well
certainly looks like a setup though having a look at the gbpusd the first bull confirmation of the three leg setup occurred on the 20th of may. i only usually take one long trade per gradient confirmation and it looks like the gbp has been bullish since this date. Doesnt meen to say that this trade wont work out looks like its def finding some resistaance at this level just the more trades you take on a trend the less likely they perform. price for me currently on gu is 1.5134.
you taking this trade?
  • #15
  • Jul 8, 2010 9:32am Jul 8, 2010 9:32am
anyone catch this one. this one was a great trade. sorry didnt post earlier had to go through my logs and find out where exactly my neuralnet executed the trade(as it was done automatically)
i have circled the 3 legs please disregard the other lines
Attached Image
  • #16
  • Jul 8, 2010 10:39am Jul 8, 2010 10:39am
What pair and time frame is this? You have an EA for this method?

Quoting david486
anyone catch this one. this one was a great trade. sorry didnt post earlier had to go through my logs and find out where exactly my neuralnet executed the trade(as it was done automatically)
i have circled the 3 legs please disregard the other lines
God's Love For You Is Sure Never You Doubt It
  • #17
  • Jul 8, 2010 6:37pm Jul 8, 2010 6:37pm
Quoting D liberators
What pair and time frame is this? You have an EA for this method?
quote is gbpyjpy on 4hr time-frame.. no not an mt4 ea but a c++ neural-net which i coded a while back ill upload the client hopefully by the end of the weekend though it doesn't just take 4hrtrendline trades it looks for others aswell(equally as successful)
  • #18
  • Jul 9, 2010 5:27am Jul 9, 2010 5:27am
EURJPY set up for a SHORT signal.. daily time frame is setting up, so also is the 4hr tf which has actually given a short signal Entry @ 112.10 for a 56 pips target. Aggressive traders might come in at the 4hr tf [not doing too well now, but might actually be a better entry for those just seeing it now], while conservative traders might want to wait for the daily tf signal for further confirmation.

Sorry i cant post charts now, i'm not on my ''analysis'' system.. will do so as soon as i can.

N.B.

All signals traded went well yesterday
God's Love For You Is Sure Never You Doubt It
  • #19
  • Jul 9, 2010 5:41am Jul 9, 2010 5:41am
dont know why you entered here, would like to see your charts
  • #20
  • Jul 9, 2010 6:42am Jul 9, 2010 6:42am
Back on my PC now.. let me post my charts..

First is the 4hr tf, Second is the daily tf... The 4hr tf is at a S/R zone, which makes it a high probability turn around..will still look to trade the daily if all things work well...


Quoting david486
dont know why you entered here, would like to see your charts
Attached Image(s) (click to enlarge)
Click to Enlarge Name: ej 4hr.gif Size: 45 KB
Click to Enlarge Name: ej daily.gif Size: 39 KB
God's Love For You Is Sure Never You Doubt It
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