Advanced strategy #10 (Trend Line Trading Strategy)

Hello,

Got it, thanks Chinto. Also I was wondering how can I put a order when you miss to place a sellstop order or buystop order after it made a turn and obeyed the trendline? For example, Gbp/usd obeyed it's daily trendline today and fell roughly 300 pips , I guess it's to late for me to place a order? or can I wait till a subsequent swing high has formed on a lower timeframe and place my stoploss 5 pips above it?

Cheers,

Abdullah

Do you guys switch to small timeframes (M5 and M15) for entering a position? I feel I can't rely on small timeframes. But if I wait for H1 candle to close, then SL often is too large. Maybe is it better to open a position on a trendline and not to wait for a candle to close (because SL would be small then)? Could somebody give me an advice?

Matcey

If a candle is too long, then we place stop half way of candle's length.

If we plan to enter using smaller TF without waiting for a 1h candle to close, it'll give us a better entry, correct, but we won't know where to set a Stop loss: too close and it'll be hit almost every time, too wide and it might be risky, because should a trend line fail before 1h candle closes, we'll be in a difficult position, like: should we exit now because the trend line is broken? should we wait a bit longer, may be a reversal is near? if so, how long should we wait? is it wise to widen stops, etc...

Hope this gives you an idea why we want a hourly candle to close.

Rich

Thanks a lot for your answer, Rich, I appreciate that, but then I wonder why Myronn wrote he uses M15 and M5 timeframes for entering a position? Just to see what is happening in the market in smaller timeframes or for something else?
I read this system carefully a few times, but when I try to find entering opportunity by myself its still hard for me.
Matcey

Hi Abdullah,
I would wait to see if price trades back up to the TL again or look for other pair to trade.
Remember, it is better to miss a trade than to lose on a trade.
If you are thinking about trading for long time,i am completly sure that you will have many trades like that or better.

Regards,
Chinto.

Hi Matcey,
It is truth that Myronn states he takes some trades using small timeframes, but the way he does it is by looking at the bigger timeframes first.
If on the Daily,H4 and H1 timeframes you see that the trend is up/down than you can move to a smaller timeframe to have a better entry, see back on page #10 how he uses small timeframes on the tow charts of GBP/JPY.

Keep on reading and also looking at the charts to fing thoes trade setups and be patient, very soon you will see how powerful this method can be.
I have been trading it for some time and the results are amazing and better than any other method i have used before.
Once you can apply it to your trading you can start to see some serious numbers in your account adding up.This is the way the most professional traders trade successfully.

Regards,
Chinto.

Matcey,
To fing some trade setups you can look at the pair that are trending like EUR/USD,NZD/USD Draw your trendline on H1 charts and you will find some good setups there. There are other pair that are showing nice setups.
I hope that helps a little.

Regards,
Chinto.

Hi to all,
Looking at the charts tonight, nice trade setup still forming on NZD/JPY on H4 timeframe. Also USD/CHF on H4 price is already testing the trendline and trading down. For USD/CHP would be a good idea to move to H1 timeframe to have a good entry.
Lest see how those pair trade tonight.

Regards,
Chinto.