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Trading on trend lines

  • #1
  • First Post: Jul 21, 2016 2:02am Jul 21, 2016 2:02am
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Question about trend line, as you see the example I posted, trend line on the top obviously broken, but how do you decide if it's bounced off or breakout? very often I feel it's like gambling to trade at this level, hope anyone who are experienced with this could help a bit.

And no, please don't ask me to add another indicator, I don't want to know it. Thanks.
  • #2
  • Jul 21, 2016 2:25am Jul 21, 2016 2:25am
Quoting lkthomas
{image} Question about trend line, as you see the example I posted, trend line on the top obviously broken, but how do you decide if it's bounced off or breakout? very often I feel it's like gambling to trade at this level, hope anyone who are experienced with this could help a bit. And no, please don't ask me to add another indicator, I don't want to know it. Thanks.
On your chart example you have a couple of swing highs there which means there will be resistance or swing highs further to the left of your chart , swings highs and defined turning points like that shouldn't be overlooked especially if they coincide with tl's this is called confluence and adds weight to your expectation.. Anyway for tl breakouts price has to close above your line on your chosen tf because they will often try and fake you in.
Never said I was Batman,all I'm saying is you'll never see us together.
  • #3
  • Jul 21, 2016 2:29am Jul 21, 2016 2:29am
Quoting headfake
{quote} On your chart example you have a couple of swing highs there which means there will be resistance or swing highs further to the left of your chart , swings highs and defined turning points like that shouldn't be overlooked especially if they coincide with tl's this is called confluence and adds weight to your expectation.. Anyway for tl breakouts price has to close above your line on your chosen tf because they will often try and fake you in.
So if closing price above trend line, then I could basically have higher chance of success on long; Closing price is more important than open and max/min correct?


I always worry that it will be too late by the time I enter market as it already move too quickly. For breakout, some people use method to wait until pull back moment, but same question remains, how do you know that pull back is not false positive and right after you are in for long then it drops and break the trend line below again?
  • #4
  • Jul 21, 2016 10:26am Jul 21, 2016 10:26am
Quoting lkthomas
{quote} So if closing price above trend line, then I could basically have higher chance of success on long; Closing price is more important than open and max/min correct? I always worry that it will be too late by the time I enter market as it already move too quickly. For breakout, some people use method to wait until pull back moment, but same question remains, how do you know that pull back is not false positive and right after you are in for long then it drops and break the trend line below again?

sorry but i just read between the lines that you are afraid, maybe because you dont have a strategy which works for you!?! Life is hard, Trading is hard and you never know but you can asume a quality of a breakout but that need experience. The best breakouts are if you have a consolidation right before the rest is MM or an idea of what to do if it is not going in your favour.
(.)(.) think first ...
  • #5
  • Jul 21, 2016 10:27am Jul 21, 2016 10:27am
Quoting maximumguita
{quote} sorry but i just read between the lines that you are afraid, maybe because you dont have a strategy which works for you!?! Life is hard, Trading is hard and you never know but you can asume a quality of a breakout but that need experience. The best breakouts are if you have a consolidation right before the rest is MM or an idea of what to do if it is not going in your favour.
Hi,
Do you have a real example to show please? one chart means a lot!
  • #6
  • Jul 21, 2016 10:46am Jul 21, 2016 10:46am
Quoting lkthomas
{quote} Hi, Do you have a real example to show please? one chart means a lot!
okay, will have a look if i find some good examples but not right now.

i attache a link from a german website (iīm German) and if you scroll down a little bit than you will see at the right side currencies as Blocks in blue. There a thousands of examples. These guys done a project regarding "qualified breakouts". Maybe this helps a little bit and even if you donīt understand german you will see what is ment.
http://www.scalp-trading.com/projekt...-beschreibung/
(.)(.) think first ...
  • #7
  • Last Post: Jul 21, 2016 10:48am Jul 21, 2016 10:48am
Quoting maximumguita
{quote} okay, will have a look if i find some good examples but not right now. i attache a link from a german website (im German) and if you scroll down a little bit than you will see at the right side currencies as Blocks in blue. There a thousands of examples. These guys done a project regarding "qualified breakouts". Maybe this helps a little bit and even if you dont understand german you will see what is ment. http://www.scalp-trading.com/projekt...-beschreibung/
I will have a look, thanks.
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