Trendline Basic
Forex don’t have any time frame
In the beginning of trading forex, everyone will learn about how to using chart including Bar , line and candlestick chart , so I probably that you have heard about time frame such as M15 M5 M1 H1 H4 D1 right ? Then you will realize that Forex don’t have any time frame , since you want to trade with fast speed (full time monitoring), use fast chart, since you want to trade slowly (part time monitoring), use slower chart. So, smallest time frame only help for a traders to analyze in validation seller or buyer confirmation take a part or not by see pinbar hammer as buyer power and inverted hammer pinbar as seller power and of course this pinbar location have to filtered with basic trendline that we draw.
System Definition
So now I will talk about System Definition :
What my system based on ?
My system base on Trend lines that can be modified , you maybe known that many trader draw 1 outer Trend-line with some inner Trend-line , and when price break outer Trend-line , they think the trend have been breakout , PA is going to change from UP/DOWN to DOWN/UP , is it right ? Nope it’s not right with me , it’s too newbie thinking , I’m not that , PA have random movements , they never go along 1 line ! Your Trend-line can be breakout anytime , but the Trend Of Price ( TOS ) is not easy to break , price is not easy to turn from Down To Up ! Please remember that , when your Trend-line was breakout , your price still can go down/up continuously ! you will see more details with my system.
How to draw Flexible Trend-line – How can we know this flexible Trend-line is true or false ?
Flexible Trend-line is look like same as others , but it need some very IMPORTANT requirements to be done !!! (We will talk about uptrend at this tasks )
– If PA go down and breakout Support line , it mean the Flexible trendline is look like same as others , but it need some very IMPORTANT requirements to be done !!! (We will talk about uptrend at this tasks )
1 ) You need to find Start Point (where previous trend is broken ) to draw Flexible trendline , if the start point was false , it mean your flexible trendline won’t not true .
– Note :The Start Point ( The First Candle of Trendline ) will never be replaced until this trend finished
2 ) Draw line connect “Start Candle” with “Second candle” , then it’s your First Trendline . Draw Horizontal Line at Low of second candle , then it’s SUPPORT now
3 ) Everytime you saw your trendline was breakout , then the highest high now is RESISTANCE .
4) If PA can’t break Support line , it turn back and break out Resistance line , it means now Market decide to go straight ahead with same direction , The Trendline should be modified now , draw line connect low of Start Point with the low of lowest candle (outside of previous trendline )
– If PA go down and breakout Support line , it mean the trendline was broken , the trend has been changed ( not modified ) to DOWNtrend , find the start point of this downtrend and start to draw again !!
All steps above is too easy about how to draw Flexible Trend-Line .
Let’s go ahead and talk about how to trade with trend line now.
How to trade with Flexible Trendline
What time frame that we should trade by using Flexible Trendline ?
– Flexible trendline is easy to trade , but you need to look for “Start Point” exactly , if fist candle of trend is wrong , your risk is higher than you planed !
– The more faster chart (or smaller time frame) , the more you can find start point easier . So avoid to trade on Daily – Weekly – Monthly chart , just trade daily if you’re probably that you have define start point exactly – Say “NO” to Weekly and Monthly chart.
Cases and Solutions for trading with Flexible Trendline
I) PA move within Safe Area ( Trendline haven’t been broken yet)
*1) If you see PA is moving near Trendline , it means opportunities are opening ….you have two cases to trade ,here are they including their solutions
+ PA go near Trendline place order
+ If PA move near Trendline , then turn to main direction of trend , then Place SL at Support line , Place TP POINT base on previous movement and minimum Risk:Reward is 1:2 .
+ If PA move near Trendline , then Breakout trendline and go against your trade Keep your patience , don’t close your trade since PA haven’t broken SUPPORT LINE , ok ? please sit down and wait for next movements ,if PA go to exactly Support Line , then Open Another trade ( Double Risk same size) with tight SL from 10-15 Pips , then modify SL of previous trade to same as next trade . If SL was touched , then QUIT both of them Trend Changed Accept lost, wait for new trend that are establishing
Attention
Note: When PA move near Trend-line , it must be about 10-30 pip ( M5-M15-M30 ) or 40-60P ( H1 – H4 – D1) far from Support Line , if it’s too far , then stay away that trade . The more closer Support Line , the more Profits and Less Risk you have. So, exercise in how to draw trendline with right or you can test a simple profitable trendline strategy for intraday trader by analyze previous high low strategy using trendline and remember never use trendline indicators better manually drawing our trendlines support resistance levels.
