Trendline Forex Trend Following
This system is applicable to all major pairs. This works on a 4 hour and 1 hour.
Forex  Indicators:
- Trendlines
- Pivot Points
- 100 Period Simple Moving Average
- 150 Period Simple Moving Average
- MACD (8,17,9)
- Stochastic (8,3,3)
Chart Setup:
Add the indicators in the trading platform and observe the following rules:
RULES:
- Identify what trend is the market making on the 4hr chart by using trendlines, MACD and
Stochastics. - Identify also the trend on the 1hr chart chart using trendlines, MACD and
Stochastics. - Take note of the pivot level on the 1 hr chart.
- Look for consolidation with a symmetrical triangle
- Wait for a breakout
- If break out is to the upside, the MACD (either the Histogram or Signal Line) is above 0 or if it is below 0, then expect a bullish divergence. If break out is to the downside, the MACD (either the Histogram or Signal Line) is below 0 or if it is above 0 then expect a bearish divergence.
- After the breakout, wait for the price to pull back then open a pending order just above the resistance trend line for long positions. If you are going short, then place the pending order just below the support trend line.
- If there is no pullback place your entry order 2 pips below the low of the breakout candle if want to sell and 2 pips above the high of the breakout candle if you want to buy.
- Stop loss should be place at the next support/resistance level depending on whether you are going long or short.
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