FREE FOREX STRATEGIES

Advanced strategy #10 (Trend Line Trading Strategy)


A truly great work has been done by Myronn, the author of the current Trend Line Trading Strategy.
Support-resistance trading, trend line trading, checking higher time frames, money management — the strategy has a concrete-like theory base and a simple implementation — a winning combination, that places it into the category of advanced strategies.

Remember, your feedback, comments and suggestions are always in great demand!

Edward Revy

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Hello all,

First of all, this site is awesome. Edward, you are a great man.

I have been demoing a simple trading strategy for a week (29th September-3rd of October 2008) and achieved almost 200% return on investment in a week with $5000 account and I would like to share it and it would be great to have many involved in testing this strategy out.

I am calling this a Trend Line Trading Strategy and it is based on:

Following the trend.

Heard & read that before a million times? Lol… I cant blame you. But maybe you can learn something extra here.

Do yourself a favour and take a look at a chart and see if you can identify a trend. Is there a main established trend? It is important that you identify the main trend & once that is identified, your trading decisions are based in the direction of the main trend. There are exceptions where you can go against the main trend, but I wont touch on that here. KISS… KEEP IT SIMPLE & SIMPLE.

TIMEFRAMES:
Timeframes suitable for these strategies are the daily, 4h, 1hr, 30mins.

INDICATOR:
I use only 1 Metatrader4 indicator called Swing ZZ(zz for zigzag). It is freely available in the net, just google it and you can download it. Thanks to the programmer who wrote it. This indicator is helpful simply because you can identify previous swing highs and lows which act as resistance & support levels and I think it is a handy tool to use in this strategy.
Swing_ZZ.mq4

So lets get started shall we? I call this trendline trading strategy because it involves drawing trend lines using the swing highs and lows of the Swing ZZ indicator.

SHORT ENTRY RULES:
(a) look at the timeframe you wish to use and identify the main trend. Get the big picture first, that is very important. For me, when I want to trade on the hourly chart, I first check the daily chart and also like to see what is happening in the 4hr chart as well to see if I can spot an obvious trend or channel or congestion happening in the daily and the 4hour charts. I stay out if there is congestion until breakout of the congestion happens and a trend is established. I draw trendlines in the daily or on the 4rhly charts chart then switch to the 1hr timeframe. I identify trends in the hourly and draw trendline(s) as well.
(b) I place a sell stop order, at least 5pips below the LOW of the candle that touches or intersects the trendline. The trendline can be the daily, 4hrly or the 1hr trendline. You must place your order when that candle closes. Why 5 pips? I don’t know, 5 seems like a good number to me… I have five fingers on each arm and similarly for the legs, so 5 is a number I was born with… Put 10 pips if you want. Note you must wait for price to approach a trendline or very near to the trendline before you place your sell stop order.
(c) I prefer to place my stop loss at least 5 pips above the most recent swing high. You should set your stop loss according to your money management calculations and risk tolerance.
(d) I set my profit target just WITHIN the level of previous swing low.
(e) Trade management: as trade moves in my favour, I move my stop loss to at least 5 pips ABOVE each lower subsequent peaks (lower swing highs).

LONG ENTRY RULES:
Just do the exact opposite of short entry.
(1) Set your buy stop order 5 pips ABOVE the high of the candle that intersects the trendline when that candle CLOSES.
(2) I set my stop loss just below the recent low.
(3) I place my profit target WITHIN the level of the previous high.
(4) As trade moves in my favour I move stop loss to at least 5 pips just UNDER each higher subsequent higher swing lows that form.

SHORT ENTRY EXAMPLE:
The attached is 4hr USD/JPY chart showing short trades that could have been taken and would have been very profitable using this strategy.

(all screeshots are clickable)

USDJPY short entry example




LONG ENTRY EXAMPLE:
Attached is USD/CAD daily chart and possible trade entries are shown to give you a visual understanding of how to identify potential trade setup and take them.

USDCAD long entry example




Here is a screenshot of the trades I have taken using the strategy above. I have tried 1 min timeframe, 5 min timeframe and 15mins but towards the end, have tended more toward using larger timeframes like the 4hr, 1hr & 30min timeframe so that I don’t stay glued to the computer all day long.

Attached are account history screenshot of trades taken in two parts as I am unable to take 1 complete screenshot.

Forex demo-trading results

Forex demo-trading results

Wish you all good health.

Cheers

Myronn
email: myronn_s(at)yahoo.com


Edward Revy,
http://forex-strategies-revealed.com/

Copyright © Forex Strategies Revealed

To Stephen: your comment has been moved here:
http://forums.forex-strategies-revealed.com/post1350.html#p1350

Hi every one,

We are discussing this method with more screen-shots on this new thread http://forums.forex-strategies-revealed.com/advanced-strategy-trend-line...

There we post lot of screen-shots...come in join us!!

Best regards,
Chinto.

My pleasure, Chinto!
I'm simply proud to be able to gather such a wonderful trading community around and be able to share knowledge with everyone!

Best regards,
Edward

Yes, that is what i thought Edward, a System like that never fail.
I have been using it and really, really works.

At first when i started using it, i lost few times and didn't know if it was going to work, then, i had 3 winging trades and madeup the loses and my account was up 20%!

Edward, i just can't thank you and your team enough, this is the perfect method for ME, and thanks to you i am now trading like a profesional trader. Well, thanks to Myronn as well of course!!.

And you are right, it most take atlot of work to support a thread for months....i always wonder how you do it for free for us....we should all be gratefull to Edward and his team and apreciate the help he provides to us.
This is a business that gives an opportunity to make a nice living and if you are luky enough to find this website when you first start trading, than you can have all your study for free and become a profesional trader. You don't need to pay anything to anyone for information.

Best regards,
Chinto.

Hi Chinto,

Sorry for the confusion.
I was referring to the fact that Myronn is no longer supporting this thread.
He didn't blew his account, he simply decided to leave.

His system is based on fundamental pillars of technical analysis (trend, S/R levels, sound risk:reward). Such systems never fail.

Best regards,
Edward

Hi Edward,
First,i would like to thank you and your team for the SUPER work you have done helping us Traders, You are one of the kind person.

Can you please tell me what of the tow questions are you answering to the previus Trader, with your answer ((( No, it's not.)) .Are you answering that this method doesn't work? .Or Are you answering that myronn blew his account with this method and disappeared? Thank you in advanced.

Best regards,
Chinto.

No, it's not.
It's never easy to support a thread for months, Myronn simply left when he felt it was the time to leave, it happens sooner or later. Quite understandably.

Regards,
Edward

hello,

is this system still profitable? bcos I heard myronn blew his account with this method and disappeared. is tat correct?

please enlight me..

thanks

Hi to all,

I had an sell order on EUR/CAD at 1.59400 with a SL above the 4 hour TL ,300 pips profit.
This is the kind of R:R ratio i was taking about.
Risking 60 pips to get 300, that is,1/6.

Opportunities are in the Forex Market every day, this Trading method helps us to find those opportunities and take advantage.

Regards,
Chinto.

Hello Friends,

i found this strategy last week and i will trading this in the future. Thanks to Myronn for sharing this KISS System.
Every Trader here are welcome to the new Tread about the Trading with this Trendline System :

http://forums.forex-strategies-revealed.com/advanced-strategy-trend-line...

We can share in this Thread all Setups , Signals and Suggestions for our maximum education and profit. Also we can making a Skype Chat Group together !

I hope wee see us soon - Greetings and a lot of Pips - Jens

Hi to all,

180 pips profit! that is really good!
I am still on that ERU/CAD trade,we'll see how it plays out.

Have a nice trading week to all.
Chinto.

I took that EUR/CAD trade too (on demo). My TP was 1.58260 and it was hit 1 hour ago: 180 pips profit.

Hi everybody,

hope everyone had a nice weekend.

At this moment i am short EUR/CAD on H4 chart.
I like this setup because the profit potential and the small stop lost.
It could easyly go down to 1.53000. We will see what happens.

Hope every one has a nice trading week!

Hi to all,

There is a nice setup forming, on GBP/USD H4 TF, to the down side.
I am waiting for this H4 candle to close and i may place a sell order below previus candle at 1.65800 , lets see how it plays out.

Regards,
Chinto.

Hi to all,

I closed my long trade on EUR/USD with a nice profit at 1.48400 as the System.

It may still go up to the 1.50000 previus resistance on the Daily TF, but since i opened the trade using a smaller TF, i was more comfortable taking the profit at previus resistance level on the H4 TF.

I will be waiting for the next trade setup.

Regard,
Chinto.


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