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Using only LINE CHARTS to measure moves, or as I frequently call my trading method, "the power of two"......two points in the chart to draw a trend line, nothing more powerful and elegant than that. I hope you enjoy this thread.
Hello,
I have been trading FOREX, CFD's and FUTURES, using only diagonal trend lines, & fibonacci retracements on LINE CHARTS.
This method is very simple but helps me to be more objective about the observations I make, and measuring price targets, using LINE CHARTS (close).
I only switch (briefly) to candlestick charts once I have set up my trade, to check if the calculated price target has been reached by the HIGH/LOW prices.
BTW, I have not seen many postings here that use only LINE CHARTS.
But, I have seen lots of mouteki/demark set ups that are similar to mine, but the observations made by the traders are very subjective as they use bar or candlestick charts to draw the trend lines.
I guess the simplest way to describe my way of trading, is to say that is somewhat similar to mouteki/demark, but I draw my diagonal trend lines on LINE CHARTS only. This reduces the noise.
I will provide examples of my set ups, and how I determine price targets if I see people interested.
The name of my trading method (I don't have a system) is "measured moves". I know that is not an original name, but it is the best way to describe it.
If you reply to this thread, please read most of my examples first, and do let me know if you also use LINE CHARTS only.
I will proceed to provide examples of measured moves, in different time frames, and in different FX pairs as well as other instruments like stocks, futures, and even oil and gold, not just FX.
Thanks.
EBTA FOLLOWER.
PS I have also started a similar thread at another forum, using different name, so that I can keep track of my postings at both places.
Please could you explain your second rule below which states "Then I check to see if the trend line is broken once, and re-tested, without it being broken a second time." Do you change to candles to see this effect and if so will you not take the trade if it was broken twice or more?
Yes, I have tried this in several time frames, from daily to 30 minutes. The best results are when the daily trendlines are used as a reference for the lower time frames.
Also, the lower the time frames, the least certain one is about the overall trend, so I tend never to use time frames lower than 1 hour.
Now to explain the other question, no, I do not switch to candle charts to check if a trend line has been broken or retested. For that I only use line charts, that is the key to this method.
I only switch momentarily to candle charts when I need to ascertain if a price target has been reached by the HIGH or LOW, which is (of course) not seen in line charts.
I would like to stay away from the way the trades are managed for now, or how/when I enter/manage/exit trades........currently, my interest iis mostly in showing you what I see as far as price action using LINE CHARTS.
Thanks for your interest.
By the way, do you only use line charts (like me) for your trading, or do you use bar/candle?.
Regards,
EBTA FOLLOWER
Last edited by EBTAFOLLOWER; 08-03-2009 at 01:35 AM.