For those that expressed an interest, I have now uploaded my strategy for trend line trading entitled [B]‘Advanced trend line trading with SSD’[/B] in Free Forex Trading Systems.
For this one here on 6/10/09, would you have placed the SL at the top of that red candle, that’s almost 100 pips.
I may have the trendline in the wrong place as it doesn’t include the 9am GMT candle as that is presumably when it breaks out.
I think I would have put my stop loss at the top of those two candles to the left of that. what’s that about 50p ?
If it went back that far I’d be thinking of bailing out anyway.
Wouldn’t this one have been entered short (A), stopped out, entered long (B) stopped out? The entry later would have been more than 3 candles ahead.
SanMiguel
I entered two candles earlier around 1.5980 on the 09:00 local london time candle and close for 43 pips. (I don’t remember why I closed at 43?)
I think the concept is a real moneymaker but I’d also put it in the discretionary trading category.
Maybe paying more attention to the concept and less following the rule step by step…
I’m not going to follow the rules too closely. Instead I’m going to polish up on my discretion* and trend line drawing skills. If GBP/USD & EUR/USD have been consolidating overnight they’ve got to breakout, right?
Out of all the London breakout strateges I’ve seen… and I’ve looked at a lot of them… I think this is the best, so far anyway… maybe one of the hardest too… ever heard of the BunnyGirl MA breakout, it seems well thought out too…
thanks!
PS and believe me, my discretion needs work, and not just with trading! :o
London open is 08:00 local currently this means 7GMT.
?
Just to throw in a discretionary trade idea to this, you can wait for a test of the trendline to confirm it’s valid, then a re-entry back into the trendline area, then the break. You will miss out on some break outs using this method but it confirms the trendline and is a bit more conservative. Friday was a textbook example of this.
Hello RCarter,
This method looks very promising and definitely worth trying out. I wonder if you or someone can help by posting MT4 indicator that plots S1 S2 Pivot R1 R2 for the day.
Regards,
Muthu.
[B]SanMiguel[/B]
Friday PA behaviour was news related.
Long wick @seond 1h candle after valid 1.5687 entry.
I stayed out because of news…and PA did flip back touching above 1.6094.
Could have easily gone way north. Ain’t worth the risk IMHO.
Ok, but in principle you could get tests of the trendline if valid.
If you backtest a little, you will see many times, the price breakout of the trendline only to reverse, and then break out again later. It’s rare that price breaks out directly from the trendline so the SL placing is important.
If any applicable 1h candle for a valid trendline break entry shows a solid body…lets say for 1/4 to 1/3 of the candle body…you have a strong indication that there is no reverse coming because PA momentum is strong enough to prevent a reverse.
A little trick of the trade so to speak. 
SanMiguel,
Exactly, that’s what happen Friday, price tested and even nudged the trend line down a few times.
Actually I got faked out and entered on an earlier trend line test/nudge, lost a few pips and quickly got out on the retrace and then sat on my hands and waited.
Also, if I didn’t know any better, I would think that there’s some stop hunting going on at that time of day, but big [B]honorable bankers [/B]wouldn’t do that… would they?
Sounds like you’re moving the trendline around between the hours of 7-9GMT?
Yeah I was moving it, first swing low I used was the 3:00 GMT candle, then 6:00 GMT candle and kept creeping it down on the 15m candles.
Truth be told, Friday morning I expected the price to break to the up side and return to the 20ma in the center of the bolls. I was all loaded, aimed and ready to follow the price up. I was even going to try to pick up a few extra pips by jumping in before the high trend line was broken. I wasn’t taking the low trend line very seriously.
Boy was I wrong!!! LOL!
thanks!
GU looks great today… already 40 pips…:)…
I just woke up, I guess you’re the early bird getting all the worms. nice!
Hi,
My understanding was that i consider candles from 04:00 GMT and 08:00 GMT and trade the candles that follow when they break the trend line. It looks like your entry was early. Pls enlighten.
Thanks,
Muthu.
fayizal is the “early bird” and seems to successfully knock out 20 plus EUR or GBP pips every morning, 
IMO there’s a few ways to play this strategy, follow the rules exactly, candles & times etc,
OR trade the concept, and that being, drawing appropriate high & low trend lines and as the morning unfolds waiting for breakouts
thanks!
Excellent ! Thanks for your valuable tip !
Regards,
Muthu.
What a morning ?
First long, then short.
May the pips follow you this week.
[B]matlobien[/B]
We might get a third opportunity this morning.
Happy Trading.