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 Nelson,
I could only suggest reviewing Elliot wave theory, Fibonacci trading plus the basics of Support/Resistance trading.
I don't trade monthly charts, in Forex it would mean a too long investing prospective, which doesn't fit my goals.
Regards,
Edward
Hey Edward,
I'm a noob at forex. I do however know the basics of drawing trend lines and a few other things. This method shows potential for consistent earnings based on the previous posts. However, one major question that I still have regarding this strategy; do I have to wait until the completion of the 12 am - 4am candles before I can start drawing my trend lines? What if the market shows significant movement before 4am (e.g 2am), what modification to your method should one make?
Thanks for sharing your insight with others. Good Job!!!!
DK
Hi DK,
You do draw trend lines earlier if you have spotted a valid swing high or low withing first 5 morning candles; e.g. if, for example, 1 am candle becomes a valid swing high, there is no need to wait till 5 am to place a Long order. We connect our highs and ready to go Long earlier, while may be still waiting for a valid swing Low to emerge.
If a move had started before we had our trend lines in place, it simply means we missed the move.
Regards,
Edward
Hi Edward,
I use oanda and a lot of pivot points also with this one strategy. I have noted that manually calculated pivot points do not match with oanda's pivot points, I have tested some currencies
ant time setting ( GMT, local time , etc)and match only once on EUR/USD.
My local and PC time is GMT + 2 .
Do you have any opinion , what could be wrong ???
P.S. Pivots are calculated on http://www.fxpivot-points.com/pivot_point_calculator/02/
Andris
Hi Andris,
It looks like Oanda allows you to adjust to your local time, so that when you look at hourly charts, for example, you would see hours there matching your local hours.
However, from what I have observed, Oanda calculates its Pivots based on GMT - 5 zone, which is New York local time.
Therefore, to make your calculated pivots match Oanda's ones you'd have to set your time zone to GMT - 5 on the trading platform.
Regards,
Edward
Edward,
Off course Oanda allows to adjust time settings, there is option to change from GMT -11 up to GMT +14 but I used to use GMT time on my Oanda platform and I thought if time on trading platform is changed then PP should be adjusted automatically, but you are right it doesn't matter which time settings you have oanda displays PP only according to NY time. Even after manual calculation still small PP deviation with Oanda PP presents
Andris
Hey Edward,
Just wondering how long one should wait for a trend line to be broken(e.g. 6am, 7am, 8am etc)in order to enter a trade?
DK
Hi DK,
Normally as long as it takes. But if by the close of New York session the price haven't broken out of the trend lines - cancel all pending orders for this strategy for the day.
Regards,
Edward