About Trading Strategy

Beginner Questions Candlesticks, Chart Patterns, and Price Action
1

Hi,
good day! I like to share one thing with you. For your kind information, I use trendline strategy and Daily timeframe in Forex trading. In trendline strategy, I draw a downward trendline using a minimum of 2 peaks for a market that is in a downtrend and I draw an upward trendline using a minimum of 2 peaks for a market that is in an uptrend. I am waiting for is for price to come back up and touch that trendline and when it does, I enter a short trade and I am waiting for is for price to come back down and touch that trendline and when it does, I enter a short or long trade. I use of bearish/bullish reversal candlesticks as trade confirmation with this trading method. While its happen I switched to the 1hr timeframe and waited for price to come and hit the support/resistance zone and saw a bearish/bullish reversal Candlestick pattern that was my clue to execute a short/long trade right there.

But unfortunately when I do the above things almost every time the price breakout the trendline and move down or up. I don’t know why it’s happen and how to avoid this. And I also interested to know the additional things about trade confirmation

GBPUSDH4&1
GBPUSDH4&11200×1000 111 KB

. No more, I am waiting for your kind response.

2

Oh man this is rough because you picked the most volatile pair with tons of fundamental things going on for it. If you shorted it back in August though you would have made a good chunk of $ by now!

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3

You must be aware the UK has the third Prime Minster in 7 weeks, a record that even Italy cannot match.

Many traders will not touch the GBP/USD even in calm times a sit is just too volatile.

The reliability of TA decays with every downwards shift in time-frame.

Many traders will not regard a trend-line with or without a candlestick as sufficient grounds for an entry.

With a V-shaped chart like this, a long entry on a short time-frame is equally good as a short entry on a long time-frame - i.e. 50-50, a coin-toss.

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4

I guess the best trading strategy is one that involves time-to-time changes and modifications. I tend to keep a strict check on my trading strategies and come up with the one which suits me the best.

5

How much back testing have you done with this strategy? What does the long term data suggest? If it doesn’t work then tweak it or go back to the drawing board.

6

I have no idea of the logic behind what you just said.

7

I think, you are missing the support/resistant levels; supply demand levels are so important!