4xpipcounter's trendlines

[4xpipcounter]

Re: Nugget #1

Pitush, nice to meet you.

Yes, because if the TL is drawn correctly, then it was a rush to break the previous trend. It will be a longer than usual candle that broke it. The new trend will continue for awhile, but it will get tired, and will need to correct. The correction will take place to the point of the TL break> the TL. Anywhere between those 2 points is your entry and it will go beyond the swing point.

What this does is eliminate getting faked out. Many people want to enter while the candle is breaking the TL. If it turns out to be a wick spike only, then they will get hammered on the trade and very quickly. This also avoids a common malady of chasing the trade.

just a clarification, so we're supposed to enter on the first retrace after the trend break?

 

[piyush.arora90]

please correct me if i'm wrong here, just a beginner in price action and trading trendlines.

SBI action day:

i had been going after every trend break, which leaves me sometimes unclear as to where is should be putting my SL'es.
The dilemma faced is in the ellipses.

 

[4xpipcounter]

Piyush, as per my original posts, there is only one TL, and that is the one drawn from the dip (in this case) to the first swing low.

Also, it is best worked on 4-hour or higher, because the smaller TF's tend to generate more volatile pricing activity, so the TL methodology will not work to its fullest on lower TF's.

please correct me if i'm wrong here, just a beginner in price action and trading trendlines.

SBI action day:

i had been going after every trend break, which leaves me sometimes unclear as to where is should be putting my SL'es.
The dilemma faced is in the ellipses.

 

[piyush.arora90]

Re: Nugget #1

Pitush, nice to meet you.

Yes, because if the TL is drawn correctly, then it was a rush to break the previous trend. It will be a longer than usual candle that broke it. The new trend will continue for awhile, but it will get tired, and will need to correct. The correction will take place to the point of the TL break> the TL. Anywhere between those 2 points is your entry and it will go beyond the swing point.

What this does is eliminate getting faked out. Many people want to enter while the candle is breaking the TL. If it turns out to be a wick spike only, then they will get hammered on the trade and very quickly. This also avoids a common malady of chasing the trade.

That makes more sense, we'll miss out on some big moves, but we'll book less losses. Thankyou Sir

 

[4xpipcounter]

Re: Nugget #1

You are actually getting a bigger move, because you're getting the new swing already established, and then the extension. The other way you might get the original move, but then the move might double-cross you and you take it on the chin.

That makes more sense, we'll miss out on some big moves, but we'll book less losses. Thankyou Sir

 

[4xpipcounter]

@Piyush
Where you are going to actually leave pips on the table is in trading the swing highs and lows. That's where you enter as soon as the swing is broken, but you wait until it is broken. The advantage on trading swings is that the price takes off quickly in your favor.
On swings, you can set your entries, then take the rest of the day off. With TL's, you have to wait until the correction completes itself.

 

[anilnegi]

http://imageshack.us/photo/my-images/27/uflex.png/[/url]

thanks

anil negi

 

[4xpipcounter]

Anil, you did not catch the entire URL. Can you recopy it, or just tell me the market?

http://imageshack.us/photo/my-images/27/uflex.png/[/url]

thanks

anil negi

 

[piyush.arora90]

@ Paul , Anil posted this...

that support shouldn't hold i guess, its making LL/LH in the last leg...

whats your take?

 

[anilnegi]

@ Paul , Anil posted this...

that support shouldn't hold i guess, its making LL/LH in the last leg...

whats your take?

piyush, but we are trading TL breakout, does we consider this LL/LH, also one more thing how you posted this image

anil negi