DanUK's Advanced Trend Trading Strategy

1. support and resistance levels
2. trend line
3. Fibonacci retracement
4. Candlestick Patterns and Breakouts

This topic is a development of the original Trend Trading Charts topic I started in August 2009. Since I started this topic, my trading has continued to grow and my strategy has changed slightly. So I decided to start a new thread and work out my strategy instead of confusing the old thread with my new ideas.

Don't worry if you've never visited the old posts - I'll explain everything from the beginning, so there's no need to review all the old posts.

If you do follow an old thread, feel free to continue posting there or here - it depends on which variation of the approach you prefer!

I call this topic "Advanced Trend Trading" because entry and trade management are more refined than before (not rocket science, I still like to keep it simple!), but the general premise of trend trading remains. I will also discuss some counter-trend trades as a supplement to the main strategy.

I'm afraid there's nothing here that's new or exciting - it's just a mixture of what I've found works for me. I'm not a professional trader, nor do I claim to be (although I may hope to be one someday!). Anyone who wants to try this trading method should only do so in the demo! I can't guarantee that anyone will be successful trading the way I do - after all, success depends largely on your own psychology. One of the most important things you need to overcome in order to become a profitable trader is yourself!

Potential trade setups

This thread should be used for educational purposes only . It is not intended to be a signaling service.

As this post grew, a few of us decided to start posting possible trade setups. These should not be considered trading signals and no warranty, implied or otherwise, is given here. These trades are shown for educational purposes to help illustrate what we are looking at and how we might act on a trade - if you wish to place a trade, you should only do so after conducting your own analysis.

CFTC Risk Disclosure Statement:
NOTE: "Hypothetical performance results have a number of inherent limitations, some of which are described below. No representation is made that any account will or is likely to achieve profits or losses similar to those shown. In fact, there are often significant differences between hypothetical performance results and the actual results subsequently achieved by any particular trading plan.
One of the limitations of hypothetical performance results is that they are often prepared with the benefit of hindsight. In addition, hypothetical transactions do not involve financial risks, and any hypothetical transaction records cannot fully explain the impact of financial risks on actual transactions. For example, the ability to withstand losses or the ability to adhere to a particular trading plan despite trading losses are also critical points that may adversely affect actual trading results. There are many other factors related to the market generally or to the implementation of any particular trading plan that cannot be fully taken into account in preparing hypothetical performance results, all of which may adversely affect actual trading results.


That being said, let’s get started…