Seeking Some Advise When Trading Off An Hourly Chart

[roshannaidu]

Hi guys, please can someone advise me on the following two questions.

1. When trading a trendline breakout system, on an hourly chart, does one consider a violent spike (candle shooting up/down) over a few seconds/minutes, as a valid breakout?

2. When checking for the daily trend, main chart still hourly, how many days must the trend be considered over for use on an hourly chart?

Thanks Guys

 

[Rossini]

Use MA's to define the trend?

 

[MrGecko]

Hi...

there isn't going to be a right or wrong answer to your questions, I'm sure you get all sorts of responses. Mine are:

1. On an hourly chart, you might find this happens alot, particularly with choppy pairs; perhaps you could look for a close above / below the trendline and take the trade on a break of the high / low of the 1st bar that closes beyond it. Numerous combinations, but I like to look at the closing prices.

2. Not sure this is the right question to be asking. The number of days isn't important, it's what they show and how you can interpret it.

GL

 

[guptara]

Always wait for the candle to close to check if the trendline has been broken or not. Also, the length of the candle is important. I would recommend the length of the body of candle that broke the trendline to be atleast 15 pips.

To check thedaily trend, you can look at daily chart instead of hourly chart. 30-40 candles should give you good idea of the trend.