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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,

This is Sunday 5:14am 12th October, Aussie time,

going thru the charts this morning, I spot a great short trade setup occuring at GBPJPY in the 1hr chart as per the strategy. If you switch to the 30min timeframe, you will see the 3rd candle before the close of trading is a very bearish candle that happened very near(almost touched) the main trendline. That candle gives a high probability that price has reacted to this 1hr trendline and most likely it will head down again.

It will be interesting to see how this turns out. I intend to place my sell stop order when market opens again @ 170.78 & my stop loss @ 172.35 & I have 2 possible profit targets @ 168.06 or 166.23. So my stop loss=157pips & my max potential gain=455pips.

Regards

Myronn

Potential short trade setup for GBPJPY.

Potential short trade setup GBPJPY

Hello all,

I entered the GBPJPY trade I spotted above & Price went went down as predicted but to at least 190 pips and I had the opportunity to lock in some of that pips gained but I chose not to & that decision cost me...as price went back up against me in the trade above and hit my stop loss.

Regards

Myronn

Hi Myronn,
I'm admiring your work. Keep it up and thank you soooo much!
Cheers,
Ali

Appreciate your comments Ali,

Regards

Myronn

Myronn4

Back to work.

MYRONN WROTE:

I cant help but wonder why that trade went against you so I had to find out why and when I opened up my chart and had a look at the EURUSD long trade you took on Thursday (as shown in the chart you posted) this is what I found:
(1)The peak (swing high prior to your long entry) happened to be in a area of 1hr main trendline (down) & price was made to obey it. You took a long entry on a downward plunge of price that was made to obey that main trend. That peak could have provided a good short entry opportunity as per the strategy.
2 THINGS.
1—I WAS SLEEPING WHEN THAT SWING WAS AT IT’S HIGH, AND
2—SHORT WOULD HAVE BEEN COUNTER TREND TO THE 3H AND 1 DAY TRENDS AND
3—IT WASN’T TRENDING DN ON THE 1HR. REMEMBER THAT HIGHER TF’S HAVE PRIORITY.

(2)you could have placed you stop loss just below the candle that you shorted on previously.
I AGREE. I COULD HAVE MOVED IT UP TO EVEN BEFORE GOING TO LUNCH . MY STOP WAS PREPROGRAMMED AT 50 PTS AND I DIDN’T CHANGE IT.

(3)your trade was against the main trend using a minor uptrend Channel & I do spot 2 other possible long entry points in your chart including the one that you took. Did you spot that or you missed it?
MY DEFINITION OF A TREND IS HIGHER HIGHS, HIGHER LOWS AND VV. SINCE OCT 5TH, EUR WAS TRENDING UP ON THE DAILY, 3H AND 1H. IF YOU LOOK AT DAILY TREND OVER MONTHS, THEN YES, I WAS COUNTER. BUT ACCORDING TO WHAT I CONSIDER A TREND I WAS WITH IT. I DID NOT TAKE PREVIOUS TRADES BECAUSE I AM LIVE AND WAS IN CHF AT THE TIME, THEREFORE ACCORDING TO MY RULES OF MONEY MGMT, COULD NOT. PLUS CHF IS HIGHLY CORRELATED, SO WAS NOT WORRIED. AS YOU WILL REMEMBER, I WAS ON THE PROFIT SIDE OF CHF.

It looks like you made the same mistake on GBPJPY as I did on the EUR. . What happened to the trailing stops? We have to keep in mind that these prices will either obey the TL or not So to move the SL at least to even (or plus $1) once the price has moved in your direction will go a long way to your win/loss and profitability. Also, liquidating half your pos when you have decent pts in the bank is a good idea. Possibly the best is to liquidate half, and move the stop to even. Best of both worlds.

You need to read Tom Demark trendlines on this site. He has one thing that is imperative in your TL system-- read right to left.

Remember too that things change after the weekend, that the trend that was valid last week may be invalidated.

Also, a TL that is too steep will be broken easier than a shallow one.

Is that it for now? Yes.

one more thing. upload some of your mistakes including all pertinent info so we can learn from ya.

G

Thank you!

Great strategy! Does anyone know if I set the entry simply using the prior "line breaking candle" even when the current price candle is away form the line or do I manually wait for the price to come to the line and then set my entry order the very moment a candle closes that has broken the line?


 
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