(binned per thread starter's request) Channel/trendline trading | Forex Factory

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(binned per thread starter's request) Channel/trendline trading

  • #1
  • First Post: Feb 5, 2016 8:50am Feb 5, 2016 8:50am
Hey guys, simple trading method here works efficiently and is easy to use. There is no need to over explain it, perhaps just few rules to follow. This method focuses on using trendlines and following channels, channels themselves do not need to be typical equal highs and lows channels where you draw trendline on both sides of it, but simply focusing only on one side of channel.

For bearish channel (with droping price) one focus only on upper trendline that follows highs.
For bullish channel (with rising price) one focus only on lower trendline that follows lows.
Examples of bull and bear channels:
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Its important that highs and lows respect the trendline, if they dont simply avoid trading it. Also if highs and lows change in hight (new freshyl formed ones) then adjust trendline so that it respects the last highs or lows the most, becouse those are the most important.

For trendline drawing, make sure that trendline is drawn in a way that it follows as much highs and lows as possible.

Its trading bumps of trendlines or trading breakout, SL is usually set bellow last placed high or low, but its up to individual where to place it.

Here are examples of channels:
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  • #2
  • Feb 6, 2016 4:31am Feb 6, 2016 4:31am
any indicater who draw a trend line
  • #3
  • Feb 6, 2016 6:55am Feb 6, 2016 6:55am
Quoting janpec1000
Hey guys, simple trading method here works efficiently and is easy to use. There is no need to over explain it, perhaps just few rules to follow. This method focuses on using trendlines and following channels, channels themselves do not need to be typical equal highs and lows channels where you draw trendline on both sides of it, but simply focusing only on one side of channel. For bearish channel (with droping price) one focus only on upper trendline that follows highs. For bullish channel (with rising price) one focus only on lower trendline that...
all your samples are overlapping waves and none of them can be traded with the trendline touch.those screenshots are seleceted.when waves overlapping its very rare of getting more then 2 bounce where your setups are >= 3 bounces.i can show you hell number of fails of bouncues of those kind of trendlines.if you are looking bounces then you should find impulsive waves not overlappings.
  • #4
  • Feb 6, 2016 11:01pm Feb 6, 2016 11:01pm
Quoting vasily
{quote} all your samples are overlapping waves and none of them can be traded with the trendline touch.those screenshots are seleceted.when waves overlapping its very rare of getting more then 2 bounce where your setups are >= 3 bounces.i can show you hell number of fails of bouncues of those kind of trendlines.if you are looking bounces then you should find impulsive waves not overlappings.
Hello Vasily, what do you mean by "overlapping waves"?
LDFX Trading Ltd
  • #5
  • Feb 7, 2016 9:04am Feb 7, 2016 9:04am
Some trades from yesterday/2 days.
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  • #6
  • Feb 8, 2016 5:04am Feb 8, 2016 5:04am
USDTRY setup for long.
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  • #7
  • Feb 8, 2016 7:04am Feb 8, 2016 7:04am
Quoting janpec1000
USDTRY setup for long. {image}
Closed +30.
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  • #8
  • Feb 17, 2016 11:55am Feb 17, 2016 11:55am
Nice clean example from yesterday EA. HL made before break.
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  • #9
  • Feb 24, 2016 11:47am Feb 24, 2016 11:47am
Setup on EU atm.
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  • #10
  • Feb 25, 2016 9:16am Feb 25, 2016 9:16am
Quoting janpec1000
Setup on EU atm.{image}
Got 25 pips from that one. Atm holding GU long on m1 setup.
  • #11
  • Feb 25, 2016 6:04pm Feb 25, 2016 6:04pm
Very interesting and simple.
I gave a quick look, and I did not understand why at the time of breckout, you get long?
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  • #12
  • Feb 26, 2016 3:13am Feb 26, 2016 3:13am
Quoting giuse224
Very interesting and simple. I gave a quick look, and I did not understand why at the time of breckout, you get long? {image}
Yes i do usually wait for candle close to long the bump, but somethimes not due to better RR, especially if price tests trendline precisely usually it forms then bull pinbar in such case, and entering on its bottom is good RR. But ye usually its better to wait for candle close.
  • #13
  • Feb 26, 2016 3:24am Feb 26, 2016 3:24am
Got 9 pips on gold breakout.
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Atm watching EA trendline for break. Preffered 20 pips lower near m15 demand zone.
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  • #14
  • Feb 26, 2016 3:35am Feb 26, 2016 3:35am
Quoting janpec1000
Got 9 pips on gold breakout. {image} Atm watching EA trendline for break. Preffered 20 pips lower near m15 demand zone. {image}
EA broke and TP.
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  • #15
  • Feb 26, 2016 9:13am Feb 26, 2016 9:13am
Large one on UZAR h4 and daily aswell. Looking for longs next week.
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  • #16
  • Feb 26, 2016 9:37am Feb 26, 2016 9:37am
How to establish the entry in USAR h4?

Why do not you joined the long green candle?
  • #17
  • Feb 26, 2016 2:47pm Feb 26, 2016 2:47pm
Quoting giuse224
How to establish the entry in USAR h4? Why do not you joined the long green candle?
Becouse the breakout impulsive move has already happened. Once its done is done. If it travels to 50% of descending channel then entry is gone already. The closer you are to broken trendline the lower the risk.

Meanwhile TRY had even better breakout.
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  • #18
  • Feb 27, 2016 7:58pm Feb 27, 2016 7:58pm
Would be safer, expect a retracement of a previous low / high? No?!? Read private message
  • #19
  • Feb 27, 2016 9:03pm Feb 27, 2016 9:03pm
How many points of contact do you prefer (i.e. how many highs do you want to connect) prior to the breakout trade setting up?
Do you prefer to wait for the pullback to the trendline, or just after a close confirming the break?
What do you target on the M1?
What do you target on the H1?

Is the attached example a good one? How would you trade this (if you would)?

Thanks -
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  • #20
  • Feb 29, 2016 6:41am Feb 29, 2016 6:41am
Quoting JMaurice
How many points of contact do you prefer (i.e. how many highs do you want to connect) prior to the breakout trade setting up? Do you prefer to wait for the pullback to the trendline, or just after a close confirming the break? What do you target on the M1? What do you target on the H1? Is the attached example a good one? How would you trade this (if you would)? Thanks - {image}
Only a close is confirmation for breakout in my view. Targets are usually 50% of whole channel lenght, unless you trade along with higher TF. For example if you use combo of two tfs H1 for general support/resistance interest area, and using m1 or m5 for chanel setup, then TP is larger, eg 25-30 pips usually in my case.
The above example is good, since its TF above h1 i always look for additional m1 or m5 signal for entry /short in that case, to get more precise and to have as least risk as possible. You risk m1 setup, but your target is h4 50% of that channel.
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