Advanced system #5 (Trend Lines Breakout System)

Hi Sarah,

The first (initial) stop loss is placed 5 pips behind the candle that broke through the trend line and triggered our Entry order.

Regards,
Edward

Hi Edward, a little confused, which should be the first stop loss?

Good trades for everyone
Sarah
Barcelona

Hi Ami,

What I meant is that I watch the price till I'm able to define both up and down trend lines.
Once both trend lines are in place I set limit orders which would be triggered if price goes through any of the trend line. At that point I stop monitoring the charts.

In some rare cases when no orders were triggered and I happen to be around and review my entries I re-adjust the entries to get filled at a better price.

Regards,
Edward

Dear Edward,
In one of your post for this strategy you said ‘I don't monitor the price, but rather set two orders: Buy Stop and Sell Stop…’
Doing that means that the entry will be at breaking the highest high or lowest low of the first 5 bars of the day rather then braking the trend line (which will be difficult to predict on the beginning of bar number 6). If the entry should be on breaking the trend line then one must monitor the price until the break and only then place the order. Please explain which approach is the correct one.
Thank you for your time.
Ami

Hi Mani,

Sure we can. That's exactly the situation as shown on the picture on the main page for this system.

Happy trading!
Edward.

Hi Edward!

Can we consider the very first candle as a swing high or low. I mean if the 11:00 pm est and the 1:00 am est candles are lower than the 12:00 am candle can we consider that candle as a swing high candle? Or should we identify the swing high only WITHIN the 5 candles?

Mani

Hi DK,

I consider trading on the break of another trend line only if my first trade resulted in loss. If a profit target is reached within the first breakout, I no longer trade this system for the day.

Regards,
Edward

Edward,

Let us say that the down trend line was broken and we went long and we reached our target. Then the up trend line was broken at a later point during the day (e.g 9 or 10a.m). Would you suggest that we short the market or just leave it at the first trend line break?

Thanx much
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

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

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

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

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 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

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