Aurix Exchange

Line breakout

saambasp

Member
HI ALL,
i like simple systems.breakout of trend line is suitable for scalping.here is my scalping technique with small stoploss.your stoploss at zigzag low point.
zipfile including indicator and template.
you need to draw trend line.
it is excellent at the m30,h1,h4,d1 time frames.

as usually exit depends on your wish.i cant say it because i too can not do it good

thank you
MS REDDY
 

Attachments

  • line breakout 1.JPG
    line breakout 1.JPG
    246 KB · Views: 5

saambasp

Member
here is an example of 1:1 rr 100% win.
can some body tell me how i can put big picture here.
 

Attachments

  • line breakout 123.JPG
    line breakout 123.JPG
    228.4 KB · Views: 3

stovedude

Active member
You will need to upload it to a place like . Then, copy the code (use forum code) and, in your reply post, click the little picture that looks like mountains, and paste the code there.
 

Squall

Member
Saambasp thank you for this handy template. I have studied breakouts like this in various training courses. I tried to trade manually when I began trading but I did not have the required discipline to make it work. I might give it another try using this system on a small cent account.

Can I confirm your settings for the SOM coloured moving average? Is it the default of 80?

Should we vary this to suit recent market conditions or do you leave it at one particular setting?

MACD and CCI settings I can see from your screenshots:
MACD: 8,13,1
CCI:20

Would you mind saying a few words about how you use the CCI in this system? I am aware that it is basically an 'overbought'/'oversold' indicator so am I right in saying that you use it to confirm that a trend is reversing and a breakout is happening?
 

saambasp

Member
Saambasp thank you for this handy template. I have studied breakouts like this in various training courses. I tried to trade manually when I began trading but I did not have the required discipline to make it work. I might give it another try using this system on a small cent account.

Can I confirm your settings for the SOM coloured moving average? Is it the default of 80?

Should we vary this to suit recent market conditions or do you leave it at one particular setting?

MACD and CCI settings I can see from your screenshots:
MACD: 8,13,1
CCI:20

Would you mind saying a few words about how you use the CCI in this system? I am aware that it is basically an 'overbought'/'oversold' indicator so am I right in saying that you use it to confirm that a trend is reversing and a breakout is happening?

hi squall,
this is very simple system,you have to be patience and money management to this.if i asked for suggestion i would say one plan for moneymanagement.just invest 500usd then trade with 0.03lotsize.then your equity stoploss around 1650pips.ok if you catch 2000pips in 4 pairs for 1 or 2 months then your depposite doubled ,then double your trading lot size with 0.06 it is money managent for any trader for any trading system.
next come to line breakout system.it is very simple scalping system.we use 2 indicators cci20 macd8,13,1.those 2 indicators are zerline based indicators.if price crosse zero line from bottom it is buy signal and above zero line is buy area.this applies to both indicators.
if you draw a trend line in any timeframe chart.if at certain place you feel that price breaking trend line.then you look for indicators confirmation,if they too support go for trade in that direction put stoploss as swing low or swing high then first target is your stoploss pips.that is you are applying 1:1 risk reward ratio.
eurusd,usdchf,gbpusd,audusd,nzdusd these 5 pairs i noticed good for this strategy.
commodities gold silver is very good for this strategy
 

Squall

Member
Alright I just used this system to enter a short on USDCHF. It's going against me right now but that's not important. No system will work every time.

I would appreciate if you could say if I followed the rules correctly because that's what's important. I'm wondering if I should have waited for a lower reading on the CCI indicator?

You must be registered for see images
 

saambasp

Member
Alright I just used this system to enter a short on USDCHF. It's going against me right now but that's not important. No system will work every time.

I would appreciate if you could say if I followed the rules correctly because that's what's important. I'm wondering if I should have waited for a lower reading on the CCI indicator?

You must be registered for see images

hi squall,
you did right,noproblem.you have to be patience when you trading usdchf,usdjpy,eurgbp.
like you said no system give 100% win.if we have atleast 70%winning system that is excellent,we all are searching for it.
better use this system in london,newyork times.
coming moneymanagement i said use 0.04%risk for every trade.trade 5 to 6 instruments after you thought you are ok.trade multiple pairs gives you basket profit.
better practise with eurusd.
i suggest better use bar chart.
more over if you are familiar with line chart it is good ,because for line chart trend line works perfectly.
 

Attachments

  • linebreakout1.JPG
    linebreakout1.JPG
    198.5 KB · Views: 2

Squall

Member
Thanks very much saambasp. You've been really helpful since you joined the forum.

I just saw that the breakout happened a little later. The take profit was reached at about 07:30 GMT :)

It's defintitely a good system but I have to train myself to use it.
 

geges

Member
Here is a trade for today...

Here is a trade for today...

I used this method for a good trade
 

Attachments

  • eurusd.jpg
    eurusd.jpg
    22.3 KB · Views: 2

Squall

Member
Hi Geges thanks for your input but you need to use a file-hosting website. I use photobucket and it's pretty easy.

Entered a demo trade earlier on EURUSD that's going well so far. I entered the trade late but I caught it on a retrace back to the new trendline.

My trading time is limited to the evenings because of my job. Even still, I've managed to find at least one decent trade between 5 pairs during the last few nights using this method.

Since i took the screenshot below the market has gone down to give me +32 pips so far toward my 45 pip target.

You must be registered for see images


EDIT: I woke up to see a full Take Profit this morning. I changed my take profit by a few pips last night so it was just above the 23.6 Fibo for the uptrend from 16th to 22nd March. Good thing I did because it proved to be a barrier for the downtrend I was riding :)

You must be registered for see images
 

Squall

Member
I have been distracted by other systems recently but I will be returning to this system tonight.

I have been thinking about setting up a group mailing list (or something else) for people who trade using this system. We can alert each other if we find a good trade and in that way we can make it easier for all of us.

Posting in this thread would also be a way to alert each other but I think email would be much faster. Does anyone else think this is a good idea? Maybe you know of a better way we can alert each other?
 

geges

Member
Worked

Worked

I used the simple system w/ts today. It worked.:)
 

Attachments

  • Capture.jpg
    Capture.jpg
    24.5 KB · Views: 2

Squall

Member
Made two successful buys last night. One on GBPUSD and one on EURUSD. It's nice to wake up and see two full Take Profits :)

Pictures are in the zip attached.

PS: Ignore all the sell lines on the GBPUSD. I'm testing a grid robot (Indo Run) on the same demo I'm testing this breakout system.
 

Squall

Member
Selling GBPUSD

You must be registered for see images




EDIT: Alright this trade is going bad. I thought the 1.64 level was going to provide more resistance.
New Rule for me: Always trade with the higher TF Trend. I need to go back and revise Bob Iaccino's and Hector's price-action videos in the next few days.


Second Edit: Right now I am at about -12 pips. -95 was the worst point of the day. I am wondering if this strategy should use the changing colour of the SMA as an exit signal.
You must be registered for see images
 

geges

Member
Im trying to keep it as simple as possible

Im trying to keep it as simple as possible

Here is my trade for today with this method.
I opened the 5 minute GBPUSD @ 15:05 GMT.
I drew a trend line from the last swing low at 1.6330 to the terminating candle @1.6424.
I drew a 2nd trend line extending down below the original swing low point.
Price closed below the slope of moving average line 3 candles later...This was the 1st confirmation that could be a good trade.

I plotted a trend line on the indicators.
CCI was already below zero and near -100 when MACD crossed the zero line.
I entered the trade @ the close of the 16:00 candle.

I moved to BE after 10 pips and later put on a TS. My target is the original swing low point.

You must be registered for see images
 

Squall

Member
Nice setup well done.

I closed out my position from this morning for -19 pip loss. In future I will not trade against the trend unless that trend is much higher than the timeframe I'm using. My mistake here was taking a short on M30 TF when there was an uptrend in the H1 TF.

Still learning and picking up more rules as I go.

Here are my thoughts in general right now:
USDCHF: Strong downtrend in higher TF's. M5 bearish breakout might happen soon.
AUDUSD: Watch for bullish breakout. Higher TF is in uptrend.
NZDUSD: Similar to AUDUSD
EURUSD: Slight downtrend in a higher TF uptrend.
GBPUSD: The close of todays daily will decide if we resume the uptrend or not.

Edit:If you think my analysis is wrong please tell me why you think so. I will always be happy to accept being wrong if I learn something from it.
 

geges

Member
Alternative MACD

Alternative MACD

I went back and read post # 8 and realized my MACD template setting are standard and post # 8 recommends setting to 8,13. Those settings would have gotten me into todays trade a few candles earlier. Then I remembered I have a customized MACD that gives a even faster signal with those settings on the 5 minute tf.
You must be registered for see images attach
 

geges

Member
Just early warning

Just early warning

I guess with this strategy tf (5 minute)...one could use both.

The Macd histogram (setting 8,13 ) I posted above indicated shorting @ 1.6405 just as price hit the SOM line but not closing below it.

That Macd signaled short on the on the 4th and 5th candle after the terminating candle reversal @ 1.6425...I did not get a 5 minute candle close below the SOM line until the 6th candle which I mentioned above was the 1st clue for a good trade.

Perhaps using both Macd would be helpful.


Possible trade checklist for 5 minute TF,

1.Draw trend line 1
2.Watch price action..look for reversal candle(s)
3.Draw second trendline
4.Macd Histogram setting 8,13,9 indicates possible reversal (early warning)
5 Candle closes below SOM line
6.Standard Macd setting 8,13,1 crosses Zero line
7.CCI crosses Zero Line
8.Pull the trigger.
9.Stop loss/take profitbasp as per original saambasp...
"put stoploss as swing low or swing high then first target is your stoploss pips.that is you are applying 1:1 risk reward ratio."
10.Second take profit is starting point of trenddline # 1.
11.Move to breakeven as soon as possible based on market conditions.
12.Option : Close trade @ consolidation @ known S&R levels.
14.Option : Use trailing stop of X depending on market conditions...must
allow price to breath.
15.Best times to trade = first half London session
= first 2-3 hours US session 9-11 am EST.
 

Aurix Exchange
Top