Simple Setups To Trade

chart...

we have got to give it a bit of time . remember you would still be the trade if you took it yet, so lets see how it developes...

jon

+30 pips so far.

Any other conslidation setup guys??

I've just been introduced to this method by another member on FF who uses it on a 1 min chart.

Just wait for a fast/strong move by a low spread pair like eurusd on a 5min chart, then drop down to a 1min chart and wait for first retracement add your trendline and wait for the break. 10 pip stop will suffice and quite often get 3:1 plus return.

Move stop to break even after 4 or 5 pips and hang on for a quick ride!

Once in trade put a new trendline on in direction of trade, exit when price breaks trade trendline.

Great example of this on eurchf today at 11.50 gmt worth 40 pips for just 10 risked 4:1 trade. All over in 20 mins. Sorry would post chart but haven't work out how to yet.

Only just introduced to this method so no "live" trades yet but been back testing manually and works best if move is in direction of higher trend.

Great thread think there is a lot of potential pips out there whenever a big move is in motion.

Will post some examples soon as I have worked out how to!!!!

Hi Jon
Really like the look of this method of trading as it is simple and appears to work well on all time scales. As I said earlier I have only recently discovered this method so haven't actively traded it live yet.

However from my little research so far I think the secret to trading this method successfully is:

 

1. Trade a strong move in the direction of the overall trend.
2. Positioning the trendline correctly to maximise the chance of a good entry
3. Relatively small stops so you can get at least 1:2 risk reward ratio
4. Letting the trade run to its maximium by using trendlines again to exit.

Heres an example of what I mean from this mornings London session, assuming the charts post ok.

First I like to use a pair that is trending strongly like EURCHF. To me I use a 200ema and in the case of EURCHF like to see the price under the 200ema on all timeframes but in particular the shorter ones from 1 hour down.(see chart attached "Which pair today" 1hr chart.
Having decided EURCHF is a good pair to trade,looking for a sell setup, I put a trendline on the 5 min chart and wait for a break.

Once the break occurrs as at 0600hrs this morning then I drop down to the 1 min chart looking for the first pullback for entry.

The secret is to wait for a nice clean pullback, this one was an excellent example as used 200ema as resistance, could of been pulled into trade early by move down on 06.37 candle but it wouldn't of mattered if you had as 10 pip stop would of covered it ok. Another way to aviod false breaks is to wait until you have 3 good touches on trendline as confirmation of trendline then enter on break of that 3 touch trendline. Sometimes of course the trade will go without you but that's trading!

Once in trade get to break even after 4/5 pips, because I am expecting this type of trade to move away sharply from my stop. If it comes back I want out at break even and will try to re-enter again if I still feel the setup is good.

On 1 min charts I think it is perfectly reasonable to have a couple of goes at re-entries especially on these trades as the risk reward is worth going for.
If you get the trendlines right these trades should quickly drop away from entry. If that doesn't happen get out at B/E asap as the pullback hasn't finished!

1st entry was at 1.1673. Once in trade and stop at break even then put another trendline down the trade, what I call my "trade trendline" and hold the trade until the price breaks that trendline as it did here at 1.1631 for a 42 pip win.
Adjust these "trade trendlines" as the price goes down by moving it to the last 2 significant pionts of resistance. A significant piont is a candle which has 2 candles either side lower than its high. This is illustrated better on the 2nd trade where you can see I have moved the trendline down as these significant pionts appear. Exit when a candle opens the other side of the trendline.

2nd trade entry at 1.1630 and exit at 1.1562 for 68 pips.

From my back testing you can quite often get these trades at London and New York open when the price is moving fast. Not often you get 2 trades like this as quite often the first pullback is further down the move. however very similar trade happened on Friday afternoon too at the New York open.

As putting the trendlines on correctly is so important to this type of trading style I have attached a pdf file I found on another thread which describes how to place trendlines. I found it very useful especially the bit about starting trendlines from right to left not left to right! Invaluable! Not so keen on th targeting method described but others might find it useful. File attached.

Thanks again Jon for starting this thread I think this is definately the way to go when trading Forex.

All the best Clive

2 charts I mention in previous post.

Anyone know best way to post charts?

Cheers Clive.

Having some trouble posting these charts!!!!???

But here we have the Monday morning London open trade I refer to in 1st post!!

Happy Trading Clive.

I also trade smaller timeframes so this certainly interests me, keep it happening Clive! (With Jon's permission of course!)

Pete

Sorry Jon, Pete has made me realise you wanted 15min to 1 hour timeframes. I just got a bit carried away as I love this method of trading!

Are you ok with me posting 5min/1min variations of trendline trading or would you rather keep it at 15min and above?

Hope I haven't offended a co-trendline trader???

All the best with your thread.

hey Clive, good stuff mate. nice examples. glad some people are finding this helpfull. i dont mind at all what time frames you post. i like the chance to see other options to this method also.

keep on posting. i cant be around too much for now so i look forward to catching up when i can.


jon

only thing which bothers me is to find out if the break is real or a fake.3tap break shud be real.

nice approach

Thanks Jon looking forward to posting some more examples of this method. At the moment just researching opportunities but fully intend to go "live" next week looking for similar set ups to this.

I like to trade pairs that are in a major downtrend like EURCHF is right now. I just use the 200ema on 4 timecharts daily,4hr,1hr and 15 min, if all 4 are below 200ema then drop down to 5 min chart and look for selling entries looking for a trendline break in direction of trend.

Good example this morning on EURCHF put an upward sloping trendline on it and waited for break.
Result 30 pip plus trade with only 10 pip risk nice little earner at 3:1 risk reward ratio.

Charts attached.

Notice it is remarkably similar to last Fridays and Mondays trade?

I think picking the right pair to trade first is most important and when the 5 min and 1 min charts join the higher timeframes below the 200ema just wait for trendline breaks and go for it!

By the way I also like to see confirmation as Jon spoke about in first post, this is illustrated perfectly in this trade with 2 candlestick patterns, crossing 200ema and CCI crossing down 100.

Going to start trading this live next week. Lets see what happens then.

Hi Jon !

Thanks for starting the thread.

I like your clear cut method which reminds me of a time, where
no personal computer existed.

Combine this trading method with some tape reading skills and it
should work out quite nice

Well done and hope to read more.....

Regards

Bernhard

Hi Bernard
What are tape reading skills? Whats involved?

Thanks Clive

Hi Guys

Love the look of this hourly trendline building up on GBPAUD can't wait for it to break, reasons I like this a lot?

 

1. Major downtrend in place on daily
2. approaching likely reversal position with 200ema looming
3. Approaching 1hr downward trendline
4. CCI about to cross down from above 100
5. Divergence on stochastics

Waiting for a reversal candle set up and break of trendline to hit trigger.

Have to dash out so hope I don't miss this turn but if I do will try and catch 1st pullback on 5 min chart.

Anyone got any setups imminent??

Why not post them here for us all to share?

Oh forgot to mention big nos 1.5000 looming on horizon too!!!

ud/yen showed a nice example today 1H chart and 15 min...


jon

hey buddy, this one is running a little too long for my liking. i prefere a shorter retrace. not saying it wont work out but it is not really the setup i have been posting here. that 1.4940-50 area looks good for short term revesal though...??? maybe a good price for a touch trade short????
keep posting


jon

any way guys, i posted the simplist setup i could think of. nobody out there got one they are willing to share!?!?!?!


Jon