Simple Setups To Trade

Hi Folks

Went "Live" today with this trendline break system and bagged 200 plus pips!!!

First of all checked out my weakest/strongest analysis on Monthly,weekly and daily charts which came up with eurchf to be sold.

Then just put on an up sloping trendline waited for break and hey presto 200 little beauties! Left another 100 on the table, but who cares, can't be too greedy.

Must be beginners luck! Surely it can't be this simple can it??? Time will tell will post next setup here.

Chart attached.

Anyone got any setups on the boil?

It's been a long time since a thread caught my eye, but I'm very intrigued by this method. As noted, it's simple but, based on some trades I've been taking this week, this thread deserves more attention than it's been receiving. It's refreshing to see an indicator-free method, and a number of trades seem to be available every day that offer a R:R of 3:1 or better.

Attached are a couple of winning trades from this week on EUR/AUD (on a demo account). There's a third setup noted that would have been profitable as well, but I wasn't around for it. A fourth possibility is setting up right now.

All in all, a very promising start. Thanks for sharing!

Here's a trade I missed today while I was out, but what a nice setup.

Hi Guys

Here is a good setup taking shape on EURCHF, its just broken out on London open in direction of daily trend so could go a long way until the Swiss bank intervenes???

Drop down to 1 min chart and wait for first pullback then apply trendline and enter on break.

Should be small stop 20 pips maybe with enormous potential 100 pips.

Will update when I can.

Just thought I would update on the last setup.

Chart 1 below shows the placing of the trendline. I always try to use the most significant support candles ie both candles either side are higher than the support candle I use for trendline.

Chart 2 shows my actual entry where I have chosen to enter due to the following factors.

 

1. Use the most recent 2 most significant pionts of support, keep moving the trendline as the pullback developes and as each candle prints.
2. Wait for CCI to go above 100 this signifies a quality pullback ready for the CCI to cross back down through the 100 as part of my entry signal
3. The stochastic crosses down from above 80 level
4. The trendline is broken
5. The first Hieken Ashi candle close red
6. Wick of candle tests 1.1100 whole number which is good resistance
7. Price is almost retesting the old support level, when this does happen usually a high probability trade

stop is placed above old support line about 20 pips away, but for an even tighter stop you could use top of highest candle. Using these tight stops means if the trade goes your way for 40 pips or more you get a nice 2:1 trade.

Will save images as trade progresses and post here later when trade finished.

Lets hope its a good one or it could be embarrasing

Chart 1.

ok up 10 pips so now moving stops to break even. My thoughts on this are to get to break even asap so if you are wrong and the trade moves against you you have lost nothing! Don't worry about being stopped out at break even if you do and the trade set up still looks good, re-enter. Wait for stochs and cci to rise again and have another go. |But if the price just keeps going the wrong way you have saved yourself 1 to 2 % of your account depending on what % you risk.

Chart 2.

I try to hold trades for as long as possible to maximise returns, I have found the best way to do this is simple price action on 1 min chart. Don't bulk at the idea of 1 min charts as when the price is moving fast as in this breakout you will find the price action very smooth and easy to read.

Price raced down the page then pulled back to produce a lower high so all good there to keep holding and in fact you could use this pull back to load trade or/and trail the stop down to just above its high.

However price pushed down but didn't exceed previous low so obvious 123 reversal signal so closed out trade at 1.10387 for 53.5 pips profit. A nice little 2.5:1 risk reward trade and as I had used 2% risk earned a nice 5.35% growth on account.

After closing trade watched price action for possible re-entry but as you can see started to print more higher lows and higher highs so all selling trades off the table.

Just realised I left my trade entry and close arrows off the picture so will copy new image and post later, so you can all see trade.

The reason i take off trade details is they get in the way when trying to trade fast on 1 min charts.

Any questions please feel free.

I will try and post more next week but hard to post and trade.

As for my first week trading trendline breaks I am very happy as have increased account by just over 27% so I am going to stick with it.

As Jon says find fast moving pair wait for pullback put on trendline and enter on break.

Anyone else got any set ups to post?

here you go last chart for today!

Happy trading.

Clive.

Thought I would post another EURCHF trade I took this week as one of the best and is a classic of my trading style.

Look for strongest/weakest pair and right now that is EURCHF hence my success with this method. Its really important to trade the right pair which gives you an edge right from the start and obviously trade with its trend. See first chart posted of EURCHF daily. Don't think there's any doubt whether to sell or buy? Is there???

So you want to sell then go to any time frame you want,I tend to use 5 min with entry and trade management on 1 min, but it will work on any timeframe you like, just takes longer. Put a upward slanting trendline under price movement and wait for price to break down through it.

Manage trade by moving trailing stop down to top of each new lower high printed. As long as it keeps printing lower lows/lower highs keep holding until either price action tells you to get out or as in this case, trade trendline broken to upside then close out on next candle.

EURCHF has provided some great trade opportunities these last 2 weeks but Swissy Bank are trying to spoil it!!!!

Oh well all good things must come to an end sometime I suppose.

Anyone else got any good setups to show us????

This is getting ridiculous! Its like taking candy from a baby!!!

Where was the Swissy Bank? Were they were bluffing???

B******S!!!! Could of made a ton of pips on this for 20 pips risk.

Oh well tomorrows another day!

I hope people see the value in this thread.
Identify a confirmed trend - (you must define what a confirmed trend is, and when the given symbol is not trending)
Identify a pullback within that trend for good possible continuation reward
Identify a low-risk entry, as good r:r helps with market uncertainty in the long run.
There are many ways to do this profitably, and I don't doubt that this could work just fine.
I think most people realize this...but lack the Patience to wait for setups and Discipline to execute the setups *consistently*

Well said. The nice thing about this method is a number of valid trade opportunities seem to open up every day. Here's an example from just a little earlier today.

Hi Yen44 and qwerty00

Yep couldn't agree more it really is a very simple method and it can be made even more profitable by waiting for a fast moving breakout trade, then just enter on first pullback or trade in the direction of a "very strong" prevailing trend.

Fast Moving Breakout Method.

With this method you are looking for a fast price move usually associated with a breakout trade, so the first job is to find the breakout. Choose a strong trending pair as described below then identify a period of consolidation or ranging. Put your trendline underneath if looking for a breakout downwards or above if expecting one upwards.

then sit back and wait for breakout and price to be moving fast. Either enter on break or more cautiously and to avoid false breakouts wait for first pullback.

It doesn't matter how fast the move is either as by dropping down to 1 min chart I gaurantee there will be a pullback. It has to happen as scalpers get out for handful of pips then the trade carries on with full force momentum behind it.

Once pullback occurs put on pullback trendline and enter on break.

Very often this means if you enter correctly the price rushes away from your stop within minutes and allows you to move your stop to break even very quickly. Sometimes after 4 or 5 pips up. Then hey ho and away you go! Nothing to lose and everything to gain!

Quite often I get stopped out for break even but all it means is the pullback hadn't finished so you get a 2nd go at an even better price plus you have a nice new support to use for your trendline.

In other words what I am trying to say is, wait for market to make its move, don't try to enter on initial move, wait for first pullback then enter. No more trying to guess when the market will move, just watch it move then jump on for the ride!!!

Don't be afraid to use the 1 min timeframe as under these conditions of a strong "Breakout" move in progress you will be surprised how good the price action is. Also try out Heikin-Ashi candlesticks, you will be amazed how clear the price action gets plus the pullbacks stick out like a sore thumb. Back test it and have a look at some of the fast breakouts experienced on EURCHF over the last 2 weeks.

I have posted many of these types of trades on this thread already, they are especially good around London and New York opens and are referred to regularly as "The London Breakout Trade".

By the way always best to use this technique around high volatility times like the first 3 hours of any of the sessions opening times, London, New York and Tokyo.

Trading with a "Very Strong" Prevailing Trend .

This Trendline breaking method works very well on "Very Strong" Trending pairs. So it is imperative to identify them.

One method that I have used to identify "Strong Trending" pairs is to put a 200ema on the 1 hour, 15min, 5min and 1min charts,then when the price is below the 200ema on all 4 time frames you have a "Very Strong" trending pair.

Once you have identified your "Strong Trending" pair, then put a rising trendline on and wait for the breakout.

Once the breakout occurs, to be even safer and to avoid false breakouts wait for the breakout to get to its first pullback and enter there with another trendline break of that pullback.

Of course the same applys to buy trades just the complete opposite with price above 200ema on all timeframes.

By the way its even better if your breakout is in line with the daily and 4 hour too, then you get some right flyers. Again use the 200ema on those timeframes too!

For a great example of what I am talking about look at the EURCHF charts below all 4 timeframes are under the 200ema hence the great trades seen on it recently. Look at charts attached and you will see what I mean.

I can't emphasise enough how important it is to choose a "Strong Trending" pair for this method. Right now most CHF pairs fall into this category but in particular eurchf and usdchf.

Good Money Management, the key to Success.

As with all trading strategies money management is key to successful implication of any system so always use the same % of account for every trade and make sure it is a % of the your accounts "OUTSTANDING BALANCE". In other words if you decide to use 1% then always use 1% and re-calculate lot size after every trade, win or lose. This re-calculating of your lot size has 2 massive advantages.

 

1. You can never blow your account as it is absolutely impossible to blow your account using the % of "OUTSTANDING ACCOUNT BALANCE" each time you trade.You could lose every trade for the rest of your life and it will never ever be zero! Gauranteed!
2. By using re-calculating % of "OUTSTANDING ACCOUNT BALANCE" when you win regularly the compound growth effect will grow your account expodentially with amazing results!

How am I doing using this system?

Well I have only been trading this method for last 2 weeks and only "live" this week but results so far are impressive to say the least with my actual account growing by 27% over last 4 days. Beginners luck I'm sure but time will tell.

Hope this helps.

Happy Trading.
Clive

Here's the daily and 4 hr charts that should of posted with last post.

my first trade in this method,

Hi FXPATT

Saw your post this morning and I assume you have probably been stopped out by now or are holding a losing position, you basically got pulled in on a false breakout which happens with this system and doesn't matter as long as you use good money management because the winners will out wiegh the losers over time.

By the way can't see your stop? Please put one on if still in this trade or better still close it out as non farm payroll only an hour away!!!!!

Firstly can I say you have got the right idea with entering in the direction of the daily and 4hr trend and have dropped down to the 1 hour for entry. Excellent but you need to work on your entry method.

However that said maybe I could help you to avoid false breakouts in the future with the help of a couple of indicators which would of definitely kept you out of this trade.

Please refer to chart below.

Firstly use Heiken Ashi indicator on candles as it makes it so much clearer and only enter when you have a closed red candle, and place stop behind its high. As you can see on my chart below all you had was a red doji wait for a nice full red candle before entering.

Secondly put on a CCI sqeeze indicator (set 20) like mine and wait for CCI to come up to over 100 before even considering this as a quality pullback. Waiting for this means it is a quality pullback worth entering on when the CCI turns back down through the 100 level.

Thirdly put a slow stochastics (8,3,3) on and again wait for it to come up over 80 level before considering any breakouts. Enter when it crosses back down through 80 level.

Fourthly keep adjusting trendline to the last 2 most significant levels of support from right to left. This takes a bit of practice but again HA candles do make it very clear.

Lastly wait for price to approach old support or resistance where I have marked it at 1.4170 area, as you can see some high wicks are appearing here which signifies price is slowing down.

OK once you have those things on then wait for all 4 to happen before entering. Sure you will miss some good trades but it will keep you out of some losers too! I'd rather be cautious and hold onto my money than rush in too early.

As you can see from my chart below this is now building up to a nice pullback and entry is not too far away!

Wait for HA candle to turn red.
CCI to turn down through 100 level.
Stochastic to cross down through 80 level.
Latest trendline broken.

When all confirmed hit the trigger, place stop above red HA candle and hold on tight for a fast ride.

Soon as you are up say 30-50 pips move stop to break even sit back and relax.

For a quick buck just close out soon as you see a full green HA candle or if you prefer to go for longer returns and bigger profits then, as trade progresses keep manually trailing stops down to each lower high until stopped out!!

Hope that helps.

Happy Trading.
Clive

WARNING!!! WARNING!!! WARNING!!!

This is not the right time to be entering a hourly trade no matter how good the set up as Non farm payroll is just 90 mins away!!!!

Hi FXPATT

Your eurusd trade looking really cool now as NFP has given us some USD strength to give us some momentum to the existing downtrend, will expect a downturn this afternoon sometime.

But here's the great thing about trendline break trades. If I am wrong and the market decides to go the other way, no sweat, no break, no trade! Don't you just love it!


As for this trade with CCI above 100, stochs high (would be better above 80) just waiting for red Heikin-Ashi candle and break of trendline and in we go!

Will put stop above red HA candle high and lets see what happens?

Chart attached.

Gone past resistance now so have put a Fib levels on as giudance expect turn at 0.618. Look at first chart.

I have gone down to 1 min as well here to watch for a reversal as confirmation and to get a tight entry when it happens.

When 1 min reverses I will enter on first pullback with tight stop. See chart 2 below.

Of course if it keeps going straight up, no trade!!

Lets see what happens?

1 min trendline broken but want to see confirmation of reversal before I enter as could just be a pullback in upward move.

When it pullsback and makes a lower high I will get in on break of that pullbacks trendline.

Will try to keep posting but don't want to miss this as too good set up!

Very very tempted to just jump in here but will stick to my trade plan and wait for pullback bfore entering.

But God its tough. My trigger finger is itching to go!

Trouble is I think it is going to go without me, oh well if it does so be it.

Stoch is just trying to come up????

Pull back started thank God I didn't pull the trigger earlier.

Now lets wait for red candle and in!!