Advanced system #5 (Trend Lines Breakout System)
Submitted by Edward Revy on June 3, 2007 - 15:20.
Breakout systems like this are always in great demand. It is quick, easy and with a proper use has a true winning rate of over 90%.
Currency pair: GBP/USD, EUR/USD - tested. Other pairs may also be used.
Time frame: 1 hour.
Indicators: none.
Trading setup:
For this Forex system to work properly a trader needs to know the basics of identifying swings high and low, rules of drawing trend lines, plus be able to use Pivot Points.
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Hi,
How do I calculate the PP? Should I take only the 4:00 EST candle, or should I make an average of the 5 candles?
Thanks.
Frank,
Hi George,
You're trying to apply your good knowledge of types of triangles to this strategy.
However, this particular trading method has no concern about the type of the triangle a trader may have identified. Here we use only correct up- and downtrend trend lines and don't further analyze chart patterns.
The idea behind this Forex system is based on knowledge of power of a trend line breakout at the Right Time.
All the best in your trading!
Edward.
Hi,
This appears to be a symmetrical triangle not a descending triangle. The apex is at located just before the price falls at 04:00 and the two roughly equal lines extend to the base at 08:00. At far as I am aware, a symmetrical triangle does not give off any positive or negative movement indicator unless one measures volume at the point of the apex to see if it is high or low.
The only triangle configurations that give off any definitive signal are descending or ascending shapes. However, no such configuration is seen here.
I am just confused could you clarify.
George
Thank you for your feedback.
This Forex trading system does not suggest further re-entries after a breakout + 3 hours of trading since the most profitable hours will be left behind and there is very little point to take additional risks for the day.
However, if you want to add another order on a retracement you can do so when the price comes back to test a recently passed Pivot level.
Profitable trading!
Edward.
hi my name is victor,i am verry greatfull for the job your team is doing ,to be frank i tested this verry trend line breakout trade only that i entered verry late but following your rules i made 17 pips before the clse of the third candle thank you for that.And i will please like to know how i can dictate entry points during retracement. thank you once again
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