Trendline Break (The Only System You Need)

HI,
How do you use the PJ Over Price indicator with the trend break strategy?

You could use the entry strategy for exits as well:
Once you opened a trade and it moves into the right direction, draw a trendline as soon as you can and wait for a valid break of that trendline. If it breaks, get out.
Pros: Huge potential profit - Cons: You need patience because the trendline can only be drawn after price moved a bit.

Another Idea is to move your stop to new Highs/Lows and manually trail the dips of the trend. So when a low/high is broken, you will be sopped out with profit.
Pros: Huge potential profit - Cons: price might not make a new high/low and hit you stop loss before you moved to/above breakeven.

The first one is my favourite, i make nice profits by letting the trend play out as much as possible, its a great low risk/high reward exit strategy.

Other options, that were mentioned here before, will get you out earlier most of the time, wich is not necessarily a bad thing, because you will have more winning trades, its personal preference:
fixed risk reward exit, like 1:2
counter trend pattern exit
support and resistance level exit
Average true range as take profit
Fibonacci expansion levels as take profit

By the way... it obviously does not work well in an uptrend if one is only trading bearish breaks, because the retraces in a bullish trend are small. In a bearish trend on the other hand, it works incredibly well, because it is "counter-trendline-break trading WITH the trend", price continues moving into trend direction and the counter trendline break is the confirmation and entry signal.

If i want to trade breaks into both directions, i need to know the trend first, and only take breaks into trend direction. By adding the 200 SMA, i instantly know which direction to trade, and just have to wait for the next counter trendline break. This seems to work really well, and is as simple and easy to execute.

Did anyone had a similar experience?

Of course, if you you still want to limit yourself to bearish trades, just wait until the SMA turns bearish as well.

Interested in taking a look at this, always liked trendlines but wondering if there's any indicators that help with false breakouts?

No, but this might help to filter out a few of them:

. You have a good point there. However, one can still stay just bearish but trailing stop which equals half the take profit will do some good.

Hi everybody! Nice thread! I love trendlines. Work out very nice in combination with s/r..

$126 in 70 minutes this morning using this technique. Not too bad.

Thanks for the clear advice.

hello any one still interested on this ??!!

***Sad to see that this thread got hijacked. The thread was about using zero indicators. I just watched that waste of time video above and it's nothing but indicators.***


I realize this is an old thread but if you're new OR if you have been struggling with hit and miss trading, then go back to page one of this thread and read it. Page one.

Next, open up a pair that has been killing you, just beating you like an old mule. Now remove every single indicator including moving averages...nothing but regular Japanese candlesticks.
Now open up a Daily or 4 hr chart because this will be the easiest at first (you can drop the timeframes in about a week). Now draw some trendlines and look for the breaks like Jhig said on page one.

Once you train your eyes to see the trend, you are halfway there. Once you train your eyes to see the break of the trendline, you ARE there. The break of the trendline is your entry and it is also your exit. Period. If you are going LONG and exit on a pullback then just draw a new line on the top of that pullback and when price breaks, you go LONG again. Rinse and repeat. Rinse and repeat son.

The only problem with this method of trading is that you must be in front of the screen to watch it take place. But you can use your phone and just watch for new candles on whatever timeframe you're trading.

Just look at this chart. It tells you when to get in and when to get out. You can do this on any timeframe but just remember that a 5 min chart will have less pips than a 4 hr chart per move.

This ain't sexy but it is very effective.

Edit: Looks like I cut the dates off at the bottom when I cropped it. It is from today, AUDUSD 1 hr chart

Here's a trade I just entered. Let's see where this goes

We were doing so good for a very poor time of the day to trade. And then, wham! New day and a gap up...but whatever.

It broke the trend line and I was in on the first candle breach and out on the first candle breach. Money management.

Edit: I do want to add this since I brought up money management. This method takes out hope and fear. In the past when my trade was doing the opposite of what I had intended, I was hoping. And when it did what I thought it would do, I was afraid it was gonna reverse and take away all my gains. Hope and fear are done. Now I'm methodical. Try it tonight on your demo account, any pair, any timeframe.

And watch how cocky you get.

Thanks

Hi to all the contributors here, I trade DAX and was wondering if anyone would be interested in posting DAX trades using the strategy of this thread and discussing setups ? I will post if anyone is interested.

Best

Nigel

nice

is anybody here?

Hi please check
https://www.mql5.com/en/market/product/48619

Hi Kourosh, Thank you for your post, are you having any success with this indicator ? best Nigel

Yes. But I'm happy to have its problems told by others so I can complete it