Wedges and trendline breaks

[pocrel]

stopped out for nothing on the aud/usd, moved my stop a little to close anyway moving stop down 9080 on usd/jpy

this is a full position, no closing of any parts of a position on my trades just leave it run as long as i can


stopped out +28

well i hope you got an idea how i will be trying to manage my trade, i should really be in the aud/usd but on large positions i tend to move the stop in as quick as possible
but i have to say my biggest problem is closing postions to early, in the last few weeks i should have made a fortune but i just closed positions way to early

i dont mind been wrong i am all the time but when i am right i just cant seem to come to terms with that
this is the key for me, if i cant leave postions run and cut my losses early then you cant win at this game

 

[pocrel]

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.

Well after yesterdays trades i think iam going to change things a little

i just found it hard to keep the trade updated and to trade at the same time

i think i will post charts with my trendlines and see if anyone else agrees with the lines or wedge formations and the key areas we should be looking at for a brakeout or reversal

as for entries and exits, i will use a breakout of this area with a pull back and a break off the low or high and move stops down according to the swings till stopped out saves me posting updates every few minutes

stops will be place just above the last swing high or low depending on the direction we entered the trade

for a reversal at a trend line i will use a 123 formation for entry basically the same as the breakout from the trend line

just want to keep things simple and leave everyone to manage there own trade


thanks to the guys who have posted already please feel free to post any charts of areas of interest to you on any currencices charts

we can all learn to gether

have a great bank holiday weekend

pat

ps. sam thanks for the chart yesterday hope you made a few pips and as for my trading its a real account and i risk about 3% max in anyone trade and as for a failed trade anything can happen in one trade just move on to the next, trading is about preserving captil and making the most out of your winning trades

 

[brettus]

Well after yesterdays trades i think iam going to change things a little

i just found it hard to keep the trade updated and to trade at the same time

i think i will post charts with my trendlines and see if anyone else agrees with the lines or wedge formations and the key areas we should be looking at for a brakeout or reversal

as for entries and exits, i will use a breakout of this area with a pull back and a break off the low or high and move stops down according to the swings till stopped out saves me posting updates every few minutes

stops will be place just above the last swing high or low depending on the direction we entered the trade

for a reversal at a trend line i will use a 123 formation for entry basically the same as the breakout from the trend line

just want to keep things simple and leave everyone to manage there own trade


thanks to the guys who have posted already please feel free to post any charts of areas of interest to you on any currencices charts

we can all learn to gether

have a great bank holiday weekend

pat

Hi Pat

I have the same issue cutting profits too early, because the breakouts usually define a new trend/range and rarely come back. we'll get there though. The problem i find at the moment with trading the false break out is that it needs something else because it doesnt always work. I find that it works well with JPY crosses and GBPUSD, but not many others.
I dont know what you feel about it, but i think i feel this strategy is only half there. It does make money.

Brett

 

[pocrel]

Hi Pat

I have the same issue cutting profits too early, because the breakouts usually define a new trend/range and rarely come back. we'll get there though. The problem i find at the moment with trading the false break out is that it needs something else because it doesnt always work. I find that it works well with JPY crosses and GBPUSD, but not many others.
I dont know what you feel about it, but i think i feel this strategy is only half there. It does make money.

Brett

morning mate,
i think our trading will be defined over a serious of many trades and i think there are many false breakouts but we only need to get a couple of good ones, if you can get around the mental thing of a few draw downs and then catch the big breakouts we will still be miles ahead

an example was that aud/jpy trade we took with a stop of 30 pips we could have had 5 bad trades and recoverd all our losses in that one trade

as an example yesterday i did nt post the trade but i was short cable 14580 again i cut the trade way to early 40 pips i think (no reason just that it recovered a losse from a previous trade, mental thing again) now if i had stuck to my plan and move down the stops to the swing high i left 80 points on the table (thats 3 losing trades witha stop of between 20 and 30 pips)

i know its not sexy but trading is just a numbers game, i have tried different stratagies and i find this has the best hit risk reward rate just need to stay strong in the draw down periods

 

[pocrel]

Also i think we could watch for how many hits a horizontal or diagonal line takes a hit, people think Gann made his money by always buying or selling the 4th hit of a horizontal trendline

fade the trend line once twice 3times but never the 4th time

have you heard this?

 

[brettus]

morning mate,
i think our trading will be defined over a serious of many trades and i think there are many false breakouts but we only need to get a couple of good ones, if you can get around the mental thing of a few draw downs and then catch the big breakouts we will still be miles ahead

an example was that aud/jpy trade we took with a stop of 30 pips we could have had 5 bad trades and recoverd all our losses in that one trade

as an example yesterday i did nt post the trade but i was short cable 14580 again i cut the trade way to early 40 pips i think (no reason just that it recovered a losse from a previous trade, mental thing again) now if i had stuck to my plan and move down the stops to the swing high i left 80 points on the table (thats 3 losing trades witha stop of between 20 and 30 pips)

i know its not sexy but trading is just a numbers game, i have tried different stratagies and i find this has the best hit risk reward rate just need to stay strong in the draw down periods

Yea. I want to be able to black box this idea and take away the emotion of trading it. I ran AUDJPY the other day 150 points, but it still went down another 90 points.

 

[pocrel]

Yea. I want to be able to black box this idea and take away the emotion of trading it. I ran AUDJPY the other day 150 points, but it still went down another 90 points.

exactly with the aud/jpy we could have been on a lossing streak for 2 weeks with that one trade and got all your money back and when have you lost for 2 weeks? and i dont think we have been that bad lately we have had some nice trades picking nice levels to watch for reactions insteads of been half way up a poll in all the noise

 

[brettus]

exactly with the aud/jpy we could have been on a lossing streak for 2 weeks with that one trade and got all your money back and when have you lost for 2 weeks? and i dont think we have been that bad lately we have had some nice trades picking nice levels to watch for reactions insteads of been half way up a poll in all the noise

I'm interested in this 4th trendline touch break out. I find that in channels it usually works on the 3rd touch. Only on like a 5-15min time scale.You should check out diagonal channels trending up, always break the downside and ones trending down always break upside.

 

[pocrel]

i have not read any gann stuff but i was told that he did a competition and had a 90% hit rate, no one knows how he did it exactly but this is what people think he based his entries on

so maybe ignore every prior touch and only look for price to break on the 4th hit, forget about everything else see if that will up your hit rate and you can even back test it easily

i agree with you on the channel breakouts and mybe again look for the 4th touch to get in

let me know what you think

 

[brettus]

i have not read any gann stuff but i was told that he did a competition and had a 90% hit rate, no one knows how he did it exactly but this is what people think he based his entries on

so maybe ignore every prior touch and only look for price to break on the 4th hit, forget about everything else see if that will up your hit rate and you can even back test it easily

i agree with you on the channel breakouts and mybe again look for the 4th touch to get in

let me know what you think

I'll post some next week and we'll follow them. It's hard sell into an uptrend at the upper trend line if its trending up.

 

[pocrel]

just got in and had a sneeky look at the charts and i am looking to short cable here

coming up to test 2 trend lines so hoping for a reversal

 

[brettus]

Funny i was just looking at gbpusd and i was thinking that. It's a dangerous level. If it bounces off i think it could go down alot.

 

[pocrel]

ah good man glad we are seeing the same thing just might all be a bit flat tonight no one trading

anyway i will leave it play out i am short here with a 30 point stop simple fading the top

fingers crossed

 

[megamuel]

just got in and had a sneeky look at the charts and i am looking to short cable here

coming up to test 2 trend lines so hoping for a reversal

View attachment 83900

Where are you drawing your downsloping trendline from?

 

[pocrel]

my other trend line is coming off the 4hr chart



price could pop up and then we could be looking for a long here aswell, just an interesting area and if it was nt such a holiday day in uk and us we may get a better reaction

anyway a cheeky bet here is no bad thing :cheesy:

 

[pocrel]

also i dont know what you think of this but if you fib the previous high to the previous low then we are right at the 61.8% retracement level



so 3 things coming together for me, but anything can happen but we need some plan to work off

 

[pocrel]

morning guys

gbp/usd netted me some nice points in the end while i slept

those lines held up pretty well :clap:

time to look for more opps

 

[Blaiserboy]

Nice work on the lines.... !!!!!!!!

 

[pozzyp]

Hello mate, Those cable trend lines are looking good.

 

[pocrel]

Hello mate, Those cable trend lines are looking good.

cheers lads

was also looking at that eur/usd right on the bottom, also eur/gbp is firing but missed an entry on it

will wait and see eur/usd will only be going short on this pair

best of luck today