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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Hello Edward
My doubt is, if the price action of a news release breaks the trend line can we enter into the trade accordingly. I am asking this to find out if we should consider the candle stick which breaks the trend line immediately after a news release. During news releases we find a lot of crazy price movements. How do we deal with such situation? Do we enter trade because it broke the trend line or do we just wait and not trade for that particular day or do we enter trade only if it breaks the other trend line.
Thank You.
Krishna
Hi Krishna,
News releases come everyday, however not all of them make significant impact on the market.
If a trader knows that Really important news are about to be released and he doesn't want to be in a trade at that time, he can play safe and stay out. Otherwise, I don't see a problem in trading during the news; news could also be on our side.
Kind regards,
Edward.
HELLO EDWARD
After developing the strategy and discovering new things my opinion is to describe to us the latest and final modification concerning this strategy.
Best Regards Edward.
JOE
Is there any reason why this strategy wouldn't work at other market times such as before the asian open or the european open?
Thanks,
Steve
Hi Steve,
It's never been properly tested during other markets' open. The reason for that is simple: it's been fine tuned to a specific time. And although I can't dispute it being totally ineffective during other market times I have one important note about profit targets, it refers to Pivots.
You would probably need to calculate different Pivots which will be based on the Asian or European market open.
I could be wrong... If you happen to test it I would really appreciate your short review on that.
Best regards,
Edward.
Ok...
If I were going to test it....how long before the respective session opens should I look for a signal?
Hi Edward
Happy new year. Thanks for sharing your ideas and time.
I'm not sure if I understand the rules around "valid" swing highs and lows.
For 31 Dec Euro/USD
would the swing b4 period be the high of the last candle before period
would the swing high within period be the high of the second candle (1am EST / 6am GMT)
would the swing low b4 period start be the low of the 10pm candle?
would the swing low within period be first candle (midnight) or is it the low of the 4th candle?
not sure how to show my chart. If you still have your chart it really help.
Also theoritically could the first candle (or any other candle) serve as the swing high and swing low?
regards
AK
Hi AK,
Happy New Year!
I'm now away from my charts. Please upload your screen shot to filekeeper.org and post a link here. I'll gladly look at it and answer your questions.
Regards,
Edward
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