Trend
line is a dynamic support and resistance line that generates
signals for trading when the price break trend line. 34 EMA is used
for confirm of the signal.
Time
Frame 5 min, or higher
Currency
pairs:any.
Forex
indicator:
Draw
trend line or if use MT4 there is Kill trend line in the folder.
34
exponential moving average;
Draw
pivot point for day trading.
Trading
Rules
Buy
Draw
up trend line.
When
the price breaks trend line in upward direction wait that the price
break up also 34 EMA, then place a buy order.
Profit
Target ratio stop loss 1:1.3.
Stop
loss 10-15 pips below the entry bar.
Sell
Draw
down trend line.
When
the price breaks trend line in upward direction wait that the price
break down also 34 EMA, then place a buy order.
Profit
Target ratio stop loss 1:1.3.
Stop
loss 10-15 pips below the entry bar.
This
stratgy can generate false signals in ranging market.
In
first example GBP/USD 30 min we have 6 trades. In the second exampla
the same strategy but the Trend Line MT4 indicator.
Below
the link for download two MT4 templates Trendline breakout with 34
EMA
https://drive.google.com/file/d/0Bwjv2Pbf48itVUhLMjZjOUpVODg/viewusp=sharing
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