I managed to get where I could upload this older pic to give you a visual on the basic idea…the dotted red trendlines are shown drawn along a given trend, and when broken, the trade is entered and only closed when the trend it creates is broken, so according to the pic, we should have closed our buy, and just entered our sell…any questions?
I have never understood why so many people say that traders - and in particular new traders - should stick to the Majors only, or even to just one Pair. The cross pairs can trend beautifully, and can be less sensitive to news, so if anything are a more stable, reliable option than, say, Cable (which I find far spikier, although I do trade it).
The buy at 1.9100 is at 1.9430, after reaching a peak of 1.9495…trendline is still being respected. That was 395 pips!
The neat thing about trendlines is you can tell when the price is going to break or respect it when the candle is about to close just because of the passage of time.
This could be time to close the buy, and open a sell order.
A downward trendline using the tops of the daily chart has been touched, and the price action is now breaking the lower trendline which angles upwards. I have a stop at 1.9470, which if hit, closes the trade for 370 cool pips, and stop order to enter the sell, as this will mean the trendline will have been broken. The new trade, if opened will have 80 pip SL at 1.9520, above the trendline. If the original order, still open, stays above the trendline, then I expect resistance at 1.9600.
This pair loves to bounce off round numbers, 100 pip numbers, that is…
Price was continuing to rise until early this morning, blasting through resistance, peaking at 1.97390, 639 pips up!
I personally closed the trade at 1.9700 level for 600 pip profit for the week because it was well above the trendline, the holidays are here, and I want to stay out of the market until the new year starts.
For traders who are psychologically adept, when the price goes far above the trendline like this, you can take your profit and wait for the price to meet the trendline again for a re-entry, which allows some extra profit in the pocket, as long as the price moves back down to the trendline, instead of waiting for it to rise to meet it.
I am not trading until the beginning of the new year, since the holidays and fiscal cliff have pairs in a range, which has affected our pair here, GBPNZD.
Look at this chart, how, despite the recent ranging, how well the andrews pitchfork works as trendline indicator.
When the bottom trendline of the pitchfork is broken, then it’s time to open a trade south (sell).
Lower trendline is now broken, so I would be selling now…
Great thread thanks
Spread is the big problem
You think less than 10 pips is a problem with 700+ pip moves?
I have had a lot of luck with this and I wanted to thank you for posting the information!
Just found this thread. Drew some trend lines this morning. I barely got done (0430 Mountain) when the PA crossed over the line I had just drawn. Mentally made a trade and am watching it follow the pattern you described; PHENOMENOL! Still trying to digest where to put Entry/SL/TP, so I didn’t trade. Will now keep this on my radar for the reversal, be ready for position parameters, and then pull the trigger.
Thanks pipcompounder!
My first live trade this pair. Already 120+ pips now, my 10%, should close at 1.91000 :57:
Very good. I am personally waiting until this downtrendline breaks to the upside to enter. That ranging at the top was part of the holidays and US fiscal cliff uncertainty, and now the pair seems to be trending as usual. Just slow and easy makes the pips.
Thanks pip,
Actually I closed previous trade at 110+.
I’ve just re-entered after price break 1.91000 and support level right below.
+20 pips now.
I think next target is 1.90000
Great stuff.
I wonder how many other exotics this could work for?
Hi marshalmax,
This is the first time I trade this kind of pairs so I can’t answer you but as I see with GBPNZD it has features: 100+ pips average every day, spread quite high (around 7 pips for me). So you may try similar pairs with those features.
Anyway, I made 2 trades yesterday, just closed all at ~21 pips because market is so choppy today.
Looks like it want to retrace more or try to reverse.
I think 2% live is not bad 
This pair can really roll in the dough. It trends better than any other pair, good enough to respect straight trend lines.
Draw a trend line from that high around 1.97724 on the left to the last high on the right of about 1.91995…then just trade sells when the price touches that trendline. This will allow you to put a closer stop (remember to include the spread). And If the price breaks the trendline, just enter in the opposite direction. (Buy)…I keep my trades open until the trend line is broken. If I had entered at the 1.97724 at the beginning of the year, I would have over 700 pips in my pocket in about 2 weeks time. Most strategies don’t even make 700 pips in a month.
Hi, do you wait for confirmation on the 1H or 4H that the trendline is broken? Also EUR/NZD correlates with GBP/NZD, but I’m guessing you probably knew that.
TRENDLINE BREAKING
Buying at 1.9094…stop at 100 pips below, for now…again I will keep this buy open as the price trends upward, and as a trendline is created, if price breaks below that, then I will close it.
