Advanced discussion about trend lines

I tried to apply Daivid40 rules. Hope he will come back.
Yesterday, before going to bed, I saw a nice set up on NZDUSD H1 with a confluence of 3 TLs.



On H4, price was testing a resistance :

On Daily, price have broken a TL and was coming back to it to test it :



Here is what the H1 chart looks like now :

Trendlines are everywhere and in any timeframe. I saw another interesting setup on AUDUSD H1.

Here is what it looks like :



The Daily chart shows a possible breakout of a support and it's all clear until 0.7150 :



Zooming on the M5 timeframe, I waited for a breakout of that upper TL for added confirmation, before I enter the short trade on H1 :

Before going to bed, I just noticed that NZDUSD is back to the same TL on H1.
Not sure if it will break it or rebounce which will give us an opportunity to add a second trade.
There is still 30 minutes left for that candle. So I guess that it should close below the TL in order for the rebounce to be valid :



I go to bed so I cannot watch it. I am just using the smallest position size before gaining more experience since I never use demo trading.

OK, just before going to bed, I checked the chart and...look how that same candle turned out a bearish one just a few minutes before it closes...I added a new position when I saw it, a little bit late however. Let see tomorrow how it unflods.

Daivid40 I think this thread is excellent. It has sent me back to work on my TL's. I hope you keep going.

T/Ls can be used in a variety of ways. I often use them as a final support to my analysis and any potential entry. There are dozens of ways of course to arrive at a t/l, and I have my own rules for construction which is not the same as shown in this thread and quite different to anyone elses, but does take some of the same kind of aspects already mentioned into account.

I don't think there is a right or wrong way in general personally, because t/ls are notoriously known for being highly subjective. There is only the way that an individual trader can easily apply their own rules consistently to help their own trading decision/edge. In other words, explaining a method is certainly not easy and cannot be conveyed in just one or two sentences.



The point being, establish some t/l rules, apply, test, and adjust until you get a consistent working model for yourselves. As I said, there is no one single golden t/l rule that necessarily outweighs the next persons, just your own!

Anyhow, here's a UJ H4 short trade entry that complies with my requirements and incorporates (amongst other things) one of my particular t/l methods, which I appreciate will not be easy to understand why.

Same kind of entry as before, my conditions satisfied...NU long

Trendlines have some of the best R:R ratios out there, especially if you combine it with price action.

OK....and?

Sorry guys for delay but I'm always short of time. I own a small business and not to mention a 24/5 job, which is trading and if I have any other time I either study the market or play poker so it's hard to find time to continue a thread especially on a constant basis. I started this thread to help my study part, maybe I would find other people who have been studying the same subject so that we could share our knowledge. Since I didn't find any, I lost my interest but as far as there are people interested in this thread I'll try to continue again but this time I'll try to be as concise as possible and do that on a weekly basis. That way I might be able to manage it. Ok let's get down to brass tacks without further ado.

Before getting to other ways of drawing a line or other setups, I'm going to talk about some points of this method in this post.

The first one is about GAPS. When you draw a line you should consider gaps as wicks. It means most of the time there isn't any problem if your line crosses the body of the candle which is after a gap. You always consider the candle after the gap as a wick at first, and draw your line according to the candles before and after that candle. Of course sometimes the arrangement of those candles is in a way that your line doesnt cross the body of the "gap candle" which is ok. So consider the whole gap candle as a wick unless the arrangement of previous and next candles contradicts that.

The next point is about the only indicator that we use in this strategy which is ATR. ATR is a simple indicator that shows the average size of "n" candle (n is the period of ATR). For example, if the size of current candle is 20 and the previous candle is 30, the number that an ATR with the period of 2 shows is 25 ((20+30)/2). We use an ATR with the period of 30 for setting our SLs. If your line is correct and is drawn according to this thread. In 90%, or so, of the time this SL is the correct SL and after that you can be sure that your position has failed and there is no place for regret. Just in a few news release cases, a candle may go further than that ATR number and make a big shadow and close behind your line. Of course you can avoid those candles by not entering a position in big news such as NFP. Of course not every red news has an impact on this method if you follow the rule that we discussed in previous posts about the number of candles for a correct wave. Make sure that you use the right timeframe for ATR. We've discussed the right timeframe to draw a line before but to review that, choose the timeframe with the least numbers of candles that your wave has formed. For example your wave has formed with 15 candles at H4 and ATR shows 50. You have 240 candles in the same wave at m15 with the ATR=12. You have to set your SL for 50 not 12 because H4 is the timeframe with the least number of candles that you are able to draw your line.

ATR is also good for setting your TP. The best numbers are 2 or 2.5 or 3 times of ATR regarding the situations of the market which I'll explain more after finishing all the setups.

Just one more thing. All the talking about setting SL and TP are about reversal situations not breaking a line.

UJ clinging on...may well be stopped out

NU going ok...closed 80% at 30 pips, stop adjusted to b/e on remainder



Everything concerning t/ls is subjective remember, because of the multitude of ways that they can be constructed as I said before. Find the easiest and most consistently repeatable way to draw them in order to minimise ambiguity for yourself, which will lead to indecision if not careful.

For example, give 10 people the same chart, and there will be at least 5 different t/ls drawn. That doesn't mean in any way that most are wrong necessarily, just because it is not the same as your own for instance. So long as they are consistent and apply repeatable rules, then adjustments can be fine tuned to arrive at optimum rules to suit the individual trader concerned.

At present, looking to long GU on H1 chart when/if my conditions are met. .

So enter a setup with a high R:R. Is price approaching the trend line? Then if it touches, enter with X pip stop and aX pip TP. When X=1,2,3, your R:R can easily be 1:5 or higher. In fact, you can take 1/2 at 1:2 and voila, B/E position to let run.

Talk is cheap.

If you think you have what it takes, then don't talk about it, simply post your live entries in real time. Your consistency of success or failure will then do the talking for all to see! If you can't do that, then it's just cheap talk....so go ahead and prove what you preach.

Wow, a little hostile aren't we? I already funded a live account for you. This is my current chart, each line has been drawn since 8am (15:00 server time). If you have any questions let me know!

You can judge how you like. I judge on results from a live entry in real time.

So, as you asked, my question is, can you post live entries in real time only?

I'm not interested at all in what you did earlier, or in your account whatsoever, I'm interested in a live entry in real time only from which I 'll be able to start judging your earlier claims for myself. Until then, the jury's out.

Jeeeesus. My entries/exits are all right there. But sure, I'll do some live calls this week. Maybe even a session play-by-play?

Live chart calls is all that's needed. Credibility can be measured from that much easier than any other means.

False, live account data is also needed to prove you back your calls with real money.

Incorrect, so far as this exercise is concerned. Your chart will show an entry and a t/l, I don't care how much it is or whether you're trading with pretend money. The objective is whether you can back up your earlier claims full stop on a live trade in real time, nothing more nothing less. Very simple and uncomplicated, yet revealing.

Stopped out for 1.5 pips.