Wedges and trendline breaks

pocrel · May 27, 2010

Hi guys and girls, i want to start a journal as i have been posting over on pozzyp thread for a while and i dont want to clogg up his thread with my stuff

So i am looking for 1/ the trend on the 4HR or 1HR chart and draw my trendlines from them
2/ lookin for a pullback or consolidation area
3/ then looking for price to brake the trendline and a pullback

4/ now there are 2 entries i will be using 1/ is a brake of the low of the intial brakeout or 2/ i will fib the the top of the move down to the brakout and short the 50% area or if i see a confluence of things at the intial trend line brake then i will enter here

5/ targets: as far as we can hold on, stops will usually be between 20 and 30 points
6/ move stoploss to prior swing lows or highs depending which direction we are trading

pocrel · May 27, 2010

Chart example:

will try and post live examples as soon as i see them and anyone who would like to post wedges please do

pocrel · May 27, 2010

just watching this usd/jpy at the moment, price has been bouncing off this 9050 level and may brake true or turn around, i have shorted it it this morning but got stopped out

but may give it another go

well price has broken to the upside so we could wait for a pull back and a continuation pattern for a long
the trend is not as clear here as i would like

pocrel · May 27, 2010

another example of the brakout trade today that has just happened

aud/usd very similar to usd/jpy but we got a little pullback for an entry

would have been good for 40 pips

the only reason i would nt try for to much more is it ATR is at its extrem already
you can see this on the bottom of my charts

pocrel · May 27, 2010

shorting eur/usd here

reason for enty is we have had a pullback to the 50% line of the fib, we are in a down trend so waited for a pull back 30 point stop

well i think i got in the way of a train that china news giving the euro some momentum anyway move on to the next setup canrt win them all

pocrel · May 27, 2010

not a great start to the tread but just finding my feet but i promise to post some nice patterns
any suggestions will be off help
thanks
pat

pozzyp · May 27, 2010

Wheeey looking good pocrel!!

Subscribed!!

Good luck mate

Pozzy

Splitlink · May 27, 2010

Yes, I'm subscribed, and wish you luck, too.

Split

brettus · May 27, 2010

Good look mate. I'll be following.

Blaiserboy · May 27, 2010

this could be a most helpful thread.

I am sure others will contribute.

Thanks.............!!

megamuel · May 28, 2010

Hey Porcel!

Very pleased to see this thread as I am trying to learn how to trade with trendlines! Will post some ideas up when time permits! Was just wondering, are you demo trading or real? Full time or part time? I also wanted to ask you what you do with a failed trade, do you move on and ignore it or does it fall in line for another setup? Cheers and good luck,

Sam.

jojackson · May 28, 2010

Is that brakes as in slow down or break as in break out?

pocrel · May 28, 2010

megamuel said:
Hey Porcel!

Very pleased to see this thread as I am trying to learn how to trade with trendlines! Will post some ideas up when time permits! Was just wondering, are you demo trading or real? Full time or part time? I also wanted to ask you what you do with a failed trade, do you move on and ignore it or does it fall in line for another setup? Cheers and good luck,

Sam.

hi megamuel,
thanks for your support and to everyone else that is wishing me luck :clap:

well i am a part time trader but with my job i can do it nearly full time but i do trade from different parts of the world as i travel alot so the only time i dont trade really is when i am sleeping or on a train or in the pub :cheesy:

as for failed setups, like yesterdays eur/usd because i was only looking for shorts as i think been long the euro at the moment is just to risky then i will keep watching and see if i can see an area were price might turn
lower lows lower highs, also i would have drawn a trend line up that move and wait for a break restest and break of the low to maybe jump back in

also at night time its good to go over the charts 4hr and 1hr and maybe reset trend lines a little sometimes price over shoots a little and then comes back in side but the trend line is still valid

i will try to give more examples later as i cant trade today till maybe afternoon

also a few people mentioned the title "trendline brakes"

that was a faux pas on my part terrible spelling, sorry bout that but i will leave it as it stands out haha

pat

pocrel · May 28, 2010

here is a trade i just got into sorry did have time to post it ealier sucjh is trading

price range bound so was looking for a brakout little pullback and price to go again

pocrel · May 28, 2010

usd/jpy just lining up for a short

pocrel · May 28, 2010

in on this with a little brake (break) of my diagonal line

fingers crossed

aud/usd boucing off the 8450 level need it to get past that

megamuel · May 28, 2010

Porcel,

Good ideas here. The USD/JPY trade - are you purely taking it based on the break of that 1hr trendline? Because on the 4hr chart price is also touching a downsloping trendline. Is that coincidense or were you looking at that confluence also?

Sam.

megamuel · May 28, 2010

pocrel said:
usd/jpy just lining up for a short

View attachment 83802

4hr trend on the usd/jpy

pocrel · May 28, 2010

yes nice trend line on the 4hr alot of things coming together , although these trades now testing my patience but we need to hold on

pocrel · May 28, 2010

going to move my stops to breakeven on these 2 trades, hopefully they will go now

come on

Wedges and trendline breaks

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