Hi, on my previous trendline breakout trading I already show you how to trade the trendline breakout on a trend reversal. So actually this method will give the best result if the price is really make a trend reversal on the selected time frame. Here, I want to show you how to trade by following the trend using Trendline breakout confirmation and MACD Histogram is used to determine the trend.
OK on the picture above, we spot a huge movements on the price and confirmed by the MACD flip. If you have MACD flip up on the next trade we should only consider BUY, not sell. We try to spot any possible entry to go with the trend.
After makes a huge rally, price seems to retrace with 4 red candles down in a row. I remain you again not to think sell. It's a big uptrend!. On the retracement process indicator shows a hidden divergence. On this such condition, we prepare our self to go long. But when? The answer is trendline breakout.
Draw a line connecting the highs. On the picture above I connect the highest high to lower high. We go long on the trendline breakout with confidence. But, AGAIN, place your stop loss below the previous low. Remember that risk management is the key of success. No one can guarantee that price will move up as we predict. Not even the expensive indicators can guarantee this. Be wise.
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