Trendline breakout trading on EURJPY 31 July 2013

Trend line breakout is a simple and powerful trading strategy that works on any time frame and pairs. Here I want to show you a nice bullish breakout trading EURJPY on 31 July 2013. With a proper stop loss we can gain many green pips without having to lose your account.

On the chart above, I draw a trendline connecting highs. When price move up and break this trend line, I open buy with stop loss below the previous low. I only take 10-20 pips per trade and that's enough for me. Now I am waiting for the price to retrace down and maybe give a good sell signal.

5 pips per trade with trendline breakout strategy

Its now time for scalper. What do you think if we can get 5 pips per trade. Is it enough for you? For some people, 5 pips is garbage and not worthy but think again. For example we can open position 10 times per day, we can get 5x10 equal 50 pips per day. This method that I will show you give a pretty good probability. See my transactions today below

Click the image for larger view.

So, which technique that I used to get the above result? The answer is trend line breakout. I tried many indicators and EA but its too complicated to follow. Metatrader already equipped with many powerful tool we can use to trade with simple. See how I trade trend line breakout with only 8 pips target (minus 3 for spread). The only indicator that I am using is the EMA 60 as the trend indicator. I trade along with the trend. If the price moving above the EMA, I only take Long and if the price moving below the EMA 60 I only take short.

Scalping using TDI and MACD Histogram indicator

To scalp and get few pips per trade, we can easily using TDI combined with Colored MACD Histogram indicator. We read the MACD bar to determine the micro trend and use TDI cross over as the open position confirmation. 

Indicator used:

• MACD Histogram
• TDI Red Green

You can easily get those indicators for free on many Forex forum on the net. Here is the example

As you see on the chart, we open BUY when MACD bar already green and TDI indicator cross between the green and red line. Our target is 10-15 pips depends on the situation. EURJPY M15 time frame is the best to scalp using this technique. 

Scalping technique with MACD Histogram and trend line breakout

MACD Histogram is a good tool to help a scalper like me to enter the market any time whenever there is a trend line breakout. This indicator helps me to confirm the trend line breakout and get some pips (10-20 pips) on M15 time frame.

On an up trend, draw supports line by connecting the significant lows of the uptrend. We prepared ourselves to catch the retracement or reversal possibilities. When the price break our trend line, check if the MACD Histogram bar already in RED color. Usually, the bar already turned red before the breakout.

Bullish divergence on USDCHF 17 July 2013

A nice bullish divergence was developed on USDCHF pair on 17 July 2013. After few days USDCHF made a nice down trend, today I spot a bullish divergence on hourly time frame.

Compare my dotted arrows on the price and on the indicator. The The discrepancy between the price and indicator develop a divergence. Price made lower low but MACD Histogram made a higher low. It's a bullish divergence.

I always use a trendline to help me open my trade. When the price break the trend line, I can open my trade confidently.

Pivot Point bounce trading system

Pivot Point, Support, Resistant are important parts on Forex trading. Price is respect to these. I always load my Support and Resistant indicator on my chart. On this post, I want to show you how price bounce on Pivot Point line and we how we trade it. By its theory, when price break S&R line, it will continue to move up or down. But sometimes, we can use the bounce of the S&R line to open a trade.

On the chart above, see how price tested the Pivot line twice before it break the line and move down significantly. For a scalper with 10-20 pips profit target, we open a position on a pivot line bounce. Put the stop loss below the line when buy and above the line when sell.

How to trade hidden divergence the right way

Hidden divergence is a powerful trading setup when we manage it correctly. The example below will show you how to trade hidden divergence the right way. Both normal or hidden divergence need a confirmation before it really a normal or hidden divergence. A good confirmation is the trendline breakout. And as my own experience, MACD Histogram is the perfect indicator to detect divergence. See example below (M15 time frame)

 

Trend line breakout with TDI Cross Over

Trading trend line breakout can be profitable if we do it in a good manner. In Forex, there are many false breakout. To avoid false breakout signal, I often use other indicator such as TDI red green cross line.

 

Get ready to buy EURUSD H1 time frame 13 July 2013

I am currently waiting for a bullish hidden divergence on EURUSD pair 13 July 2013 H1 time frame. If we look at the chart below, we see that EURUSD made a nice up trend on H1 time frame and at this moment the retracement still in progress. CCI indicator has made lower low and a trend line break would be a good confirmation to get 20-30 pips I think.

I think it's a good trade signal. But make sure a trend line break is full filled before open BUY position.

Bearish divergence on AUDUSD 11 July 2013 H1 Time frame

Sorry late to post this signal because I am still working. This is my first day working on my exploration company after 1 month long leave. I spot there was a nice bearish divergence on AUDUSD 11 July 2013 H1 time frame.

 

CCI Hidden divergence trading USDJPY H1 time frame

Hidden divergence is a powerful signal if we manage it correctly. H1 time frame is more reliable to detect divergence other than M15 or lower time frame. The example below showing a nice CCI divergence signal on USDJPY H1 time frame. We trade after a trendline is broken.

 

Trading result BUY EURJPY 10 July 2013

If you follow my trade signal previously posted on this blog, you should have won 30 pips on your basket. Here is my previous BUY signal EURJPY 10 July 2013

 

CCI Hidden Divergence trading EURJPY 10 July 2013

I try to learn something for my trading experience. I am currently floating 60 pips because I do not care about hidden divergence on EURJPY 10 July 2013 on M15 time frame. It was my bad day :( I trade using my Android smartphone and I cannot load my favorite indicator MACD Histogram on it.

EURJPY BUY Signal 10 July 2013 H1 time frame

EURJPY has made a significant dip today. About 220 pips so far. And now if we look at the H1 time frame, there is a nice bullish divergence signal on MACD Histogram indicator. I trade this signal and try to get about 30 pips. I hope EURJPY retrace up and hit my target.

We'll see what happen in the next few hours.

Trading result SELL AUDUSD 9 July 2013

If you follow me on my previous SELL signal on AUDUSD, you must be floating profit right now. Few more pips, my target should be hit.

This trade is based on bearish divergence signal on H1 time frame AUDUSD pair 9 July 2013. I will keep post any divergence signals in the future.

AUDUSD Divergence signal 9 July 2013 H1 time frame

I found a bearish divergence on AUDUSD pair 9 July 2013 on H1 time frame. AUDUSD has made a bullish journey for the whole day. I think this signal is good to be taken with 50 pips target. Here is the setup

 

MACD Divergence trading setup

MACD is a powerful indicator if we use it properly. I only look for any normal divergence or any hidden divergence on the price. I never trade MACD for flip over or cross over only. Divergence must exist on every trades I took.

 

Hidden divergence trading AUDUSD M15 time frame 2 July 2013

I did not take all trading setup written on this blog. I am not a full time trader, so sometimes I missed the divergence signals. But I like to write any divergence signal on any pairs and time frames in order to sharpened my own trading system. This blog is more like a divergence trading journal for me.

 

AUDUSD Bullish divergence trading 3 July 2013 H1 time frame

At the first, I am not too sure when opening this position. I saw a nice Bullish divergence signal on H1 time frame at 3 July 2013. A pin bar bearish candle indicate that buyer is ready to take control over the seller. CCI indicator also showing a higher low to confirm the bullish divergence.

 

EURJPY Bearish divergence trading M15 time frame on 5 July 2013

Today is the first Friday of the month where US Non Farm Payroll is the most awaited Forex news of the day. EURJPY at the 5th July 2013 move up at the morning and MACD Histogram shows a bearish divergence. It's a good trade setup before the NFP news announced.

 

Bearish divergence trading setup EURJPY on 5 July 2013 M15 time frame

For a technical trading system, we do not care about anything else but the technical factors such as price movement, divergences, indicator cross over etc. Here I want to show a nice SELL position on EURJPY 5 July 2013 M15 time frame. There is a bearish divergence that is confirmed with a trendline break. This trade setup has given me about 90 pips profit.

 

Bullish divergence trading EURJPY 2 July 2013

EURJPY on 2 July 2013 was not move as volatile as usual. A sideway price movement was shown as there are not many important news on that pair. But, we have a nice divergence trading setup on EURJPY 2 July 2013 on M15 time frame. A Bullish divergence on CCI indicator has given us some green pips. See the chart below