Trendline Break (The Only System You Need)

Always include the shadow when drawing trendlines.

Hi,

In a recent post (on another thread) you suggested that most professionals will operate on the 1H time-frame, but earlier on this thread you seemed to be using the 5 minute.

Which time-frame do you most use for this technique, or would you recommend?

Kind regards,

I depends on how far along you are in your trading. I've always advocated if you're inexperienced in the market, always trade Daily or higher. Any timeframe lower than 4 hours should only be used by pro traders. When I started this thread, my intentions where to train my method of trading to aggressive pro traders but I found out quickly, new or inexperienced traders took note of the strategy instead. Since starting this thread, I myself took to allowing myself LESS screen time so I pulled away from the extreme intraday timeframes and moved up to medium/longterm trading frames, allowing myself to live a nice quality of life.

I employ two different timeframes of longterm and intraday. My long term strategy looks to hold positions with stable pairs (pairs like EurUsd GbpUsd) for weeks/months at a time, depending on how far the trend goes. My intraday trading is usually focused on strong moving/super volatile pairs (such as EurNzd EurAud GbpNzd GbpAud etc) and only traded on 1 hour or 4 hour timeframes.

I can't recommend as that would be based on the trader's skill level. All I can tell you is to look long term if you're serious about making money. The thing I said about pro traders is correct. Protraders don't touch anything under an hour. Pro traders trading the hourly is considered ultra-aggressive. The average pro trades the daily or higher. The typical aggressive pro trades 4 hour to daily - yes thats considered aggressive with their favorite being 6H, 8H, and 12H

oh boy, the graph you have is beautiful

I am not trading this currency AJ but drew a trend line this morning when it had a drop and see how trend line supported the price and went up

hi, can you explain why you see the price supported the trendline....from what I see, there wasn't two touches of a trendline prior to price hitting that level...so there was no trendline until After price stopped there and moved away.
cheers.

The trend line was drawn conecting the previouse low and the low happened at 15 gmt and the price held the trend line and moved up

if i recollect correctley it was in the mid afternoon and as i said before i was not
trading this currency but drawn this just to study.

ah ok...so the previous low just isn't shown in your image. cheers.

US CAD squirted up on low volume. Peeking above a short term TL.

My first post on this wonderful thread. Trendline Break (The Only System You Need) and I have tried all the indicators that's available.
Greatest of them all - trend lines - no need for any indicators - a line graph and trend lines - all you need to trade the double cross. The image is self explanatory.

A double cross on the GBPUSD and a possible cross or bounce on the EURUSD

Hi, Jhig!
I discovered this thread few weeks back. Thanks for sharing. I am concerned about your post here about higher TF. This is correct and logical, but what would you say about the whopping SL on higher TF. I'm sure not everyone can swallow that. The edge of the TL break system IMHO is that, if carefully followed with good MM, it can help you grow your account. Then you are welcome to move to higher TF.
Thx.

A day later and the results

trade on nzu based on TL IN H1

Compare HA candles to regular Candles. The high and low of HA candles are not the same as traditional candles (as far as I can tell). Does this impact the drawing of trendlines in any way?

Tipster

Trend lines rules, I always use trendlines as back to any system I use

Hello fellow traders!
Although I don't post much, I have been reading a lot of threads, and the latest one was right this, the Trendline Break thread, and I believe it is a pity that so few people have posted in these last 2-3 months. Yet this is one of the most powerful method of trading that you can use.
Myself, I learned to trade solely with trendlines, pivot points, candlesticks and, sometimes, one indicator (trendlines as my main tool) since a few months, and this has totally changed my way of trading. Since i have thrown away all the indicators, and concentrating on PA only, I have been able to reach a level of confidence that I have never thought I could ever had, averaging constantly 300-400 pips monthly only in EUR/USD.
I will tell you more about it, if any of you is interested, but since a picture is worth than a bunch of words, here's a fresh example:

In the chart below, we can see that in the last 24 hrs before the weekend, we have 2 gold opportunities in EUR/USD 1hr chart. Trendline 1 was broken by a strong bullish candle. In central Europe, it was night at the break time, so I entered the trade when it was already halfway (I don't recommend doing this) , making anyway a nice profit. I drew another trendline (2) and entered the second trade at the close of the first bearish candle (trendline 2 breakout) collecting 35 pips this time. More than 50 pips overall on a friday without any big risk, not bad at all, isn't it? Not every day is like that of course, but I can assure you that you get a wonderful feeling when you know that most of the times you will end your day with nice gains in your pockets.

If you have any question or want to share more thoughts and ideas, go ahead! I can also post more charts in my real trading time starting next week if you are interested. Let's keep this thread alive and let's all benefit from this great way of trading!
Best luck and happy weekend everyone
sedge

Sedge that was a beautiful one, just look out how simple ur screen look, void of clusters of indicators. I wonder y bother with these indicators in d first place . Two clean and very clear signals. Sedge whts ur favorite time frame? I m used to 5mins

Nice clean chart, easy follow. Trend lines baby!

This is almost exactly how I started trading 3 months ago and it's easy and hassle free and the gains are more than the losses. I'd like to see your trades posted as I'm trying to perfect my method. I don't use pivot points but I do look at fibs sometimes, mostly for targets from breakouts.

I use horizontal breakout after congestion and I use breakouts of sloped trend lines. For the past few months I've been using lots of 0.1 and no more. I track my trades on MTi so once I see consistency I might increase lot size to 2% risk of the account value. 0.1 lots is lower than 1% at this time.

MTi will also help me figure out what pairs to stay away from as well as some other metrics.

I don't wait for a close of a breakout bar but I have noticed that tight stops work well. If its going to break its going to do it fast. What do you think?

@ Pip-Stud: as for my trading style, I rarely stick my nose out of the trio 15m - 30m - 1h. I try to avoid being whipsawed too much or risk to have large drawdowns. When I feel like getting into scalping mode, I check the 15m chart, but I look first to the 30m and 1h charts for opportunities.

Tipster: I guess our trading styles are quite similar. I look too for horizontal breakouts after long congestion periods, and I use the same your mini lots and risk percentage as well. Nevertheless, I prefer to wait for the close of the breakout bar, although I don't follow that rule blindly.

The two signals I've shown you in my previous post were indeed very clear and neat. The first one looked at once like a winner. We took the trade in the general upward trend, the slope wasnt too steep, and moreover, the price bounced right on the pivot level. In fact, it worked like a charm.
The second one was a bit more dangerous, first, because it was a counter trade, and second, it came from a very steep slope (more than 45°). In such case, caution is mandatory, and it's all up to the trader's experience.
But, we can notice that, the last bull bar did not close over the R2 line, and we do have a nice doji bar at the top before the breakout bar. Also, the stochastics (not shown) were just leaving the overbought zone and moving down. So, it was a risk worth being taken, and it paid off quite well.

Trendlines can be as accurate as any other trading method, and often, even more. This forum is just great and I hope we can keep giving support and feedback as we approach a new exciting trading week!