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Advanced system #17 (Trendlines & Chart patterns)

Submitted by Azim

Hello Everyone!
I would like to share an effective way of trading. It is simple and very profitable with excellent risk reward ratio.

It is trading using Trendlines & Chart patterns. I focuses on QUALITY trades, NOT QUANTITY. Less trades but quality trades is the best way of trading.

1st: You need to identify channel.

2nd: Look for a breakout.

3rd: Look for a pullback testing the trendline.

4th: Enter the trade after the pullback, and put the stop loss 5 pips behind the pullback.

5th: Profit target – Calculate the size of the channel

Example for BUY:

Example for SELL:

Goodluck & Happy Trading!

Azim

I remember reading an article about G. Soros, and his favorite setup was exactly the same :)

Well i learned this from my friend, just want to share with you guys hehe (^_^)

Hi, In other words One only enters a trade when there has been a pullback either way going long from the upper channel or going short from then lower channell. Do You enter a trade if the price reaching the upper or lower channel instead to break it at the limit of the channel retraces backwards? I mean if the price reaches the upper channel and goes a little further up and then retraces do You enter going short because it means the price dosn't wants to go up or the rule is only what You said. I hope I made it clear.maybe not! Al

I'm sorry i didn't get it. can you illustrate it with an image?

Anyway, after you draw a channel, just find a breakout and look for a pullback. There are two ways to enter the trade.

1st: You enter the trade after the pullback. Once you see the first solid blue candle closed, enter it right away.

2nd : after you see the breakout, wait for a red candle to close. Then you set a pending order few pips above the breakout.

I am sorry but I am not able to send an illustration. After all Your illustrations are so clear and understandable that adding different options would be just confusing. Anyway this is a great Site to learn thanks to Edward and all those who contribute to it. Al

Hello Azim.. This trading system is best work on what currency pair and time frame? Thanks.

Hello there, as i have tested this stragegy works on all pairs. but i would recommend to trade on major pairs only.

Timeframe 15 min and above..The higher the Timeframe, the better it is

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