Another trend line system - MT4/MT5 resources
I use it as part of my overall trading strategy and have been demo trading on and off for about six months. I always trade by placing stop loss and take profit pending orders. It works well, but I think it would work better as part of an EA system with a MM system that allows partial take profit. I don't have that to test what I'm looking at, but that's what I do.
I took much of it directly from the Denmark and Pearl books. I hope you like it!
Good luck and be happy!
Danish trend line
The goal of this system is to identify ruptures based on a very strict mechanical system. I use an indicator that automatically draws the TD line to the first magnitude and then monitors for TD line breaks that meet these criteria. I will only trade anything less than 1 hour in the direction of the main trend. Scenarios 1-3 have been time-tested by many people using the system, and I've found them to be very reliable in my testing. Scenario 4 is what I'm trying. Over the past six months of testing and implementing this system, I've found that I'm successful more than 70% of the time, with a risk-reward ratio better than 1:1.
Scene one:
X = current candle
X-1 = previous candle
X-2 = 2 candles before the current candle
For the long term:
A breakout is valid if the close of the previous candle (X-1) is lower than the close of the two bars before the current bar (X-2).
If X-1 is lower than X-2, it is a valid breakout.
In short:
If the closing price of X-1 is higher than X-2, it is a valid breakthrough
Scenario 2:
The market opened on the other side of the TL, with a gap in the direction of the breakout. The order is executed after one price move in the direction of the breakout.
Scene 3:
For short positions: Calculate the difference between the closing price of X-1 and the greater of A) the high price of this bar or B) the closing price of the previous bar. Subtract this value from the closing price of X-1 and if this number is higher than TL, you can short the intraday bar.
Scene four:
This book is not from Denmark or Pearl Books. I've been playing around with this to see how it works. When a trendline breakout does not fit into the first three scenarios, I will enter at half the normal entry price. I quickly quit the industry but continued to work.
right:
This can be used on any currency pair or market and is being used in it. This is what I trade.
Daily and 4 hours: E/U, G/U, J/U, U/CHF, UCAD, A/U, E/J, G/J, E/CHF
1Hr: E/U, G/U, J/U
Money management:
Currently I just set my stop loss to 15 and my take profit to 20. I'm thinking of starting using a trade management EA and starting testing it at different stop loss and take profit levels.
EA:
There is currently no EA for this system. If anyone can find one on FF or elsewhere, I'd love to see it. It would be great if someone is a good coder and can code this.
I have attached the indicator.
I took much of it directly from the Denmark and Pearl books. I hope you like it!
Good luck and be happy!
Danish trend line
The goal of this system is to identify ruptures based on a very strict mechanical system. I use an indicator that automatically draws the TD line to the first magnitude and then monitors for TD line breaks that meet these criteria. I will only trade anything less than 1 hour in the direction of the main trend. Scenarios 1-3 have been time-tested by many people using the system, and I've found them to be very reliable in my testing. Scenario 4 is what I'm trying. Over the past six months of testing and implementing this system, I've found that I'm successful more than 70% of the time, with a risk-reward ratio better than 1:1.
Scene one:
X = current candle
X-1 = previous candle
X-2 = 2 candles before the current candle
For the long term:
A breakout is valid if the close of the previous candle (X-1) is lower than the close of the two bars before the current bar (X-2).
If X-1 is lower than X-2, it is a valid breakout.
In short:
If the closing price of X-1 is higher than X-2, it is a valid breakthrough
Scenario 2:
The market opened on the other side of the TL, with a gap in the direction of the breakout. The order is executed after one price move in the direction of the breakout.
Scene 3:
For short positions: Calculate the difference between the closing price of X-1 and the greater of A) the high price of this bar or B) the closing price of the previous bar. Subtract this value from the closing price of X-1 and if this number is higher than TL, you can short the intraday bar.
Scene four:
This book is not from Denmark or Pearl Books. I've been playing around with this to see how it works. When a trendline breakout does not fit into the first three scenarios, I will enter at half the normal entry price. I quickly quit the industry but continued to work.
right:
This can be used on any currency pair or market and is being used in it. This is what I trade.
Daily and 4 hours: E/U, G/U, J/U, U/CHF, UCAD, A/U, E/J, G/J, E/CHF
1Hr: E/U, G/U, J/U
Money management:
Currently I just set my stop loss to 15 and my take profit to 20. I'm thinking of starting using a trade management EA and starting testing it at different stop loss and take profit levels.
EA:
There is currently no EA for this system. If anyone can find one on FF or elsewhere, I'd love to see it. It would be great if someone is a good coder and can code this.
I have attached the indicator.
Attachment to original post (1)
💡 Featured Recommendations
✍️ Latest by the author
- •
- •
- •
- •
- •
- •
📌 Popular topics
- •
- •
- •
- •
- •
- •
- •
- •
🔗 You May Be Interested In
- •
- •
- •
- •
- •
- •