DanUK's Advanced Trend Trading Strategy | Page 12 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

Advanced Manual Stop Loss Strategy 2 replies

Advanced Strategy Tester 12 replies

DanUK's Intraday Experiment 279 replies

DanUK Simple EUR/USD Trading Journal 2009 1,005 replies

DanUK Trend Trading Journal 2010 433 replies

Attachments: DanUK's Advanced Trend Trading Strategy
Exit Attachments

DanUK's Advanced Trend Trading Strategy

  • #221
  • Sep 23, 2010 5:18am Sep 23, 2010 5:18am
Quoting kdee1
Hi dan,
Pls how do you draw your trend lines? I mean should it be at the lowest low of the bar touching one or two other lows? and again the support and resistance can we also have them on 50? Then at times there are s/r that are not on BRN should we ignore such? just trying to learn are my TL's correct? Thanks
Hi kdee1,

Yes I draw my trendlines using the lows in an uptrend and the highs in a downtrend.

With regards to s/r levels... first problem is you are looking at an H4 chart and I would prefer it if we stuck to daily for the time being. Now to identify the key levels of s/r the best thing to do is zoom your charts out and even move up to the weekly timeframe to see things clearly. It is these "key" levels that we are interested in trading from because they offer the highest probability of a successful trade. The use of trendlines and fib retracements are guides only to the best/most likely level to look to trade from.

You are right... sometimes s/r levels do fall around the xx50 levels as well as the xx00 levels and they are not always at "big round numbers" - but they often are!

Try what I suggest above about really zooming out to identify s/r levels and see if that helps - if it doesn't please feel free to ask more questions - the purpose is to learn after all!

Regards,

Dan
  • #222
  • Sep 23, 2010 5:19am Sep 23, 2010 5:19am
Quoting bboyomega83
I think the EUR officially resumed the uptrend with the close above 1.3000 this week and the breakout of the consolidation.
Agreed!
  • #223
  • Sep 23, 2010 5:20am Sep 23, 2010 5:20am
all very nice, but when will the bleeding critter retrace to allow us to enter?

Quoting DanUK
Agreed!
  • #224
  • Sep 23, 2010 6:13am Sep 23, 2010 6:13am
DanUK thank you for your effort in sharing your method!

What do you think about this Eur/chf? How do we approach this situation? This is probably on your watch list? (if i missed something about this in the thread i apologize)
Attached Images
  • #225
  • Sep 23, 2010 6:18am Sep 23, 2010 6:18am
touch trade long at 3300? anyone?
  • #226
  • Sep 23, 2010 7:14am Sep 23, 2010 7:14am
Quoting coolshades
touch trade long at 3300? anyone?
I am also looking towards that area for possible long
  • #227
  • Sep 23, 2010 7:16am Sep 23, 2010 7:16am
Quoting coolshades
touch trade long at 3300? anyone?
Yes i entered abit higher at 3320 earlier today.
  • #228
  • Sep 23, 2010 8:02am Sep 23, 2010 8:02am
Hi guys,

Yes I would agree that 1.3300 area is worth watching but I would prefer it if we didn't discuss "touch trades" for the time being please... if you get a good candlestick setup though please feel free to post it!

Regards,

Dan
  • #229
  • Sep 23, 2010 8:53am Sep 23, 2010 8:53am
Good point, sorry Dan won't happen again

Quoting DanUK
Hi guys,

Yes I would agree that 1.3300 area is worth watching but I would prefer it if we didn't discuss "touch trades" for the time being please... if you get a good candlestick setup though please feel free to post it!

Regards,

Dan
  • #230
  • Sep 23, 2010 9:15am Sep 23, 2010 9:15am
Quoting DanUK
Hi gododdin,

It is the break of the most recent lower high (in a down trend) that confirms the change of direction (as per amended attachment).

However this does not yet involve key s/r levels... I am also looking at the key levels (that you and I discussed in some earlier posts) to gauge whether or not the trend is changing - this is perhaps the most important test.

[color=black][font=Verdana]If for example the most recent lower high breaks just...
This is a great thread and it fleshes out for me some of the questions I had about the trading style of Sam Seiden who is my hero.
You have a lot of similar points and I love it.

Re post 219: in your illustration of the breakout of the lower high to confirm a trend change, are you believing the confirmation when it happens on a daily or bigger frame or would you believe it on a 4H?

Thanks for sharing your ideas; they are excellent.
Scarlett
  • #231
  • Sep 23, 2010 10:36am Sep 23, 2010 10:36am
Quoting coolshades
all very nice, but when will the bleeding critter retrace to allow us to enter?

im lucky i got in with a break above the consolidation at 2950 also i beleive we will see a pullback between today and mid next week to allow us to enter.

This is where it gets tricky as to how deep do you allow it to retrace to before we enter again? That where i want your opinion Dan.
  • #232
  • Sep 23, 2010 5:20pm Sep 23, 2010 5:20pm
gah, lost going short eurusd, was thinking the long term down move was continuing after this small retrace. anyway losers happen . im actually thinking of making a permanent hedge plan to try and ride trends with less drawdown on open pnl, instead of scaling out
  • #233
  • Sep 23, 2010 5:20pm Sep 23, 2010 5:20pm
Hello Dan,

I have another question that may seem vague and broad. How long do you typically hold your trades with this strategy?

For instance, do you profit 3,4,5 months on a 6 month trend or 1,2,3 weeks on a 2 month trend using daily charts? This would help me better define trends. Same question for H4 charts.

Thanks in advance Dan,
Eric
  • #234
  • Sep 23, 2010 10:32pm Sep 23, 2010 10:32pm
Hi Dan,

EUR/CHF looks like approaching a major S/R area at 1.3100 Would you enter this trade once that area has broken through? Providing there is other confluence. A chart would better show this, if I get a chance later I will get a chart up.

Cheers.
  • #235
  • Sep 24, 2010 1:44am Sep 24, 2010 1:44am
Nice to see you back Dan. Can't beat the trend trading. Simplicity rules. Reading an excellent book on trend trading, 'Trend Following' by Michael Covel. Keep up the good work.
  • #236
  • Sep 24, 2010 2:20am Sep 24, 2010 2:20am
Quoting GJP
Hi Dan,

EUR/CHF looks like approaching a major S/R area at 1.3100 Would you enter this trade once that area has broken through? Providing there is other confluence. A chart would better show this, if I get a chance later I will get a chart up.

Cheers.
Hi GJP

Just my take on EURCHF but i think a perfect entry would have been 1.3350 at the 50% fib area with some S&R and yes i would be watching when price hit 1.3050 - 1.3100 area. But i like a bargain
  • #237
  • Sep 24, 2010 2:20am Sep 24, 2010 2:20am
Quoting Porkpie
Nice to see you back Dan. Can't beat the trend trading. Simplicity rules. Reading an excellent book on trend trading, 'Trend Following' by Michael Covel. Keep up the good work.
I loved that book
  • #238
  • Edited 10:43am Sep 24, 2010 2:59am | Edited 10:43am
Hi Dan - I think I'm getting it now! One thing still puzzles me though - if you add to a position because the trend is continuing, how do you manage the multiple stops? Do you move the initial stop up to match the second position stop and so on, so that you can then manage them as one stop effectively, or do you manage them separately (seems a bit messy).

Thanks again
When in doubt, sit on your hands...
  • #239
  • Sep 24, 2010 7:29am Sep 24, 2010 7:29am
Hi gododdin,

I'm not Dan but i believe he uses only one stop which is far enough away as to hopefully never get hit, just in case of emergency if he can not get to his pc. Then i think he progressively moves the stop with the trend (one SL price for all entries) but again looking to manually stop a trade if the trend changes instead of waiting for the stop loss to be hit.
Only my interpretation of the trading style.


Quoting gododdin
Hi Dan - I think I'm getting it now! One thing still puzzles me though - if you add to a position because the trend is continuing, how do you manage the multiple stops? Do you move the initial stop up to match the second position stop and so on, so that you can then manage them as one stop effectively, or do you manage them separately (seems a bit messy).

Thanks again

Rhod
  • #240
  • Sep 24, 2010 1:11pm Sep 24, 2010 1:11pm
H4 cadchf looks like a beauty short
1 trader viewing now