Simple Trendline Orderflow System (Simple Trendline Orderflow System)
I want to introduce a very simple but highly rewarding strategy.
This strategy requires patience, but it has a good risk-reward profile.
The basis of this strategy is the use of trendline tools and horizontal lines.
rule :
1. Identify a clear trendline breakout surrounding the compression area. Let the price do its thing and break the trendline to the downside/upside depending on the direction. Ideally we would like to see a price breakout up/down towards/above the trendline, but just a few moves above is enough.
2. Draw a horizontal line to mark the price point at which the trend line was broken.
3. Watch the price return to that level.
4. Sell/buy when the price returns to the price level, or wait for the structure breakout/confirmation when the price returns to the price level before buying/selling.
For best results, trade in the direction of the trend. It is also key to observe where the price comes from after the trend line is broken. For best results, we like to see prices coming from weak levels.
Why do we need to look for compression zones?
The basic idea is that in a compression zone, buy or sell orders are accumulating. When one set of orders significantly outnumbers another, price can move impulsively out of a compression zone. When price returns, breaking out of a level or area becomes important. Ideally, we would like to see a slowdown/weakness in price as it returns to the breakout level. We expect a significant price reaction upon returning to this level/area
Thread rules :
Please read at least the first 110 posts before asking any questions. In most cases, the answer to your question is included in the post.
Please do not share indicators in this thread.
Spammers and trolls will be blocked without any warning.
Keep your charts and posts at the heart of this strategy
This strategy requires patience, but it has a good risk-reward profile.
The basis of this strategy is the use of trendline tools and horizontal lines.
rule :
1. Identify a clear trendline breakout surrounding the compression area. Let the price do its thing and break the trendline to the downside/upside depending on the direction. Ideally we would like to see a price breakout up/down towards/above the trendline, but just a few moves above is enough.
2. Draw a horizontal line to mark the price point at which the trend line was broken.
3. Watch the price return to that level.
4. Sell/buy when the price returns to the price level, or wait for the structure breakout/confirmation when the price returns to the price level before buying/selling.
For best results, trade in the direction of the trend. It is also key to observe where the price comes from after the trend line is broken. For best results, we like to see prices coming from weak levels.
Why do we need to look for compression zones?
The basic idea is that in a compression zone, buy or sell orders are accumulating. When one set of orders significantly outnumbers another, price can move impulsively out of a compression zone. When price returns, breaking out of a level or area becomes important. Ideally, we would like to see a slowdown/weakness in price as it returns to the breakout level. We expect a significant price reaction upon returning to this level/area
Thread rules :
Please read at least the first 110 posts before asking any questions. In most cases, the answer to your question is included in the post.
Please do not share indicators in this thread.
Spammers and trolls will be blocked without any warning.
Keep your charts and posts at the heart of this strategy
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