Strength Of Trendlines

New comment
 

Hi,

Can a pro who has been using trendline’s tell me of their experience when usually they are broken or when best to buy or sell off a bounce or when they break? After trading for 1 year I find it breaks usually on the 4th or 5th bounce more on the 5th bounce break and the odd occasion 3rd while the 2nd bounce is the strongest.

Thanks.

 
unreal:
Hi, Can a pro who has been using trendline’s tell me of their experience when usually they are broken or when best to buy or sell off a bounce or when they break? After trading for 1 year I find it breaks usually on the 4th or 5th bounce more on the 5th bounce break and the odd occasion 3rd while the 2nd bounce is the strongest. Thanks.

from my perspective, we should give our chart a simple logical reading according to the current price action based on a few basic chart fundamentals.

i do not believe in a single sure fire holy grail kind of strategy.

but, if we opens up our mind during trading and trade according to how it is logically should be done, i'm sure we could avoid simple mistakes.

i do have a de mark trend line indi, together with a zup 64 on my chart for an auto trend lines & fibo readings. but i also have a manual drawn trend lines and fibo chart for control purposes. auto pilots could be ur best friend, unsupervised, it could lead to disaster.

a simple trend line trading rules would be:

sell when a price bar opens below support and vv for buy.

i'll stay with this fundamentals no matter what.

combining these with fibo readings in order to give me accurate swings and of course the never lied 10 ema to let me see price position and direction, it's hard to go astray in my trading i would say.

have a look at my cable chart below, hope that it will become clearer to all of us.

 

It really depends, Since you've already stated that TL can be used or often S/R levels that are tested many times before a Clean break takes place,

its not necessary about HOW MANY Times the retest happens but causes the change in martet sentiment.

Did a new high or low happen, this often causes a reversal which then supplies enough momentum to break the S/R level .

Did a news release change the current fundamental outlook?

Is this a more active trading time ( this is really important because retests often happen during Aussie/Asian sessions and the initial momentum will take place in Lond/US session)

There are also other factors like is ATR >< Daily ATR.

Now all these ideas, concepts or using TL for trading is from connecting Highs and Lows, Lower lowers, and Higher Highs, etc ( basically fractal points) however this is the Common way to trade with TL.

What about using TL for more aggressive Angles? If Price Spikes Up, place a TL at a sharper angle than if you were to use the fractal points... This will allow your orders to enter faster and catch the retracement. And since Price often comes back to our Fractal TL, we should place a TP at this TL.

I use TL to trade NFP this way. - PipInvestment's Channel - YouTube

New comment