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Forex trading strategy #15 (Trend line simple trading)

Submitted by Joseph.

I have been working on a very simple trend following system. It requires no indicators..... only a trend line. Some functions are going to be automated to address my weak points. I am in the process of getting someone to write it now.

Basic strategy:

Trendline placed and named (something simple BBB for buy SSS for sell)Necessary to identify what should be followed.

trade opened automatically in direction of trendline once price has moved 5 points above trend line in a BUY or 5 points below line if a SELL. This provides a degree of safety should the trend not go as planned.

Stop loss automatically set at 5 points below entry for a BUY, and 5 points above for a SELL. Again, a safety point.

Trade will stay active until trendline is broken by X number of points (configurable) or if the stop loss is triggered.

Trailing stops not needed. It's already handled in the functions.

An audible alert when trade is closed.

Can be used for times you can stay and play or longer trends when you cannot.

Trend line simple trading

I have looked at about 1500 indicators and a lot of EA's and none were worth anything. All lagging or don't work right. Play with that stuff if you like but I'm taking a simple, fast, accurate approach. I'm looking for a way to eventually automate the process with something that will automatically draw the trend lines but that is still being researched. If anyone knows of a good, stable one, please let me know.

Joseph



http://forex-strategies-revealed.com/


Hi Joseph,
There are very many weird indicators around for trendlines but try this one - DeMark.

jose coge i-fractalex y une dos puntos, con lo que tendras una linea de tendencia...tan simple como eso.
saludos amigo

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jose take i-fractalex and connects two points, giving you a trend line ... as simple as that. saludos amigo

what timeframe are you trading on and what currency pairs?

I'm 90% sure that that is 1m time frame.... only if you're working with high risk
This is just basic use of trend line, nothing special

This 4 minute time frame...

I like the strategy

Thanks Joseph
Mohammed Al Khuseibi

if you ever get this on auto let me know please

Right Joseph....
I did trade with trendline on m1 and m5 chart and it's great simple way for trade. I use zigzag(24;10;6) for my entry point.

Hi Joesph,

I have come to the same realisation as you, and now manually trading the same approach (5min timeframes). As I'm sure you realised trendline alone will give a lot of whipsaws, so I hope you haven't given up just because of them. Add a stochastic to it and you can often see if the trendline will be broken or if it will bounce off, based on the distance between the 2 stoch bands (if it is really wide, then don't enter or you'l get whipped). add me on skype, we can talk about this more: (skype: nikolai.lou)