Asi trendline strategy!
ASI details
I actually entered the above trade when ASI broke at 1.3976 but I closed the trade by mistake and had to reopen it. I am keeping this trade open until ASI breaks the downward trendline.
ASI details:
How to trade with Accumulative Swing Index
Welles Wilder, the creator of ASI indicator said, "Somewhere amidst the maze of Open, High, Low and Close prices is a phantom line that is the real market." The Accumulation Swing Index shows this phantom line - the line of the real market.
Since ASI line represents real market price, Forex traders may effectively use classic technical analysis methods on the indicator itself:
- identify support/resistance levels,
- trend lines and true market direction,
- swings high/low,
- breakout setups
- and divergence between indicator and regular price charts.
todays chart, result of a drunken market swinging up and down. ASI is standing up well though and given clear indications to stay in the trade until the most recent ASI trendline breaks.
update: ASI broke above trendline and candle closed so I went long. Got stopped out. Can be seen in second picture, new position
...
that trade is possibly in the wrong direction...
I have said the same thing about every one of my trades, but if I can create more meaning and justify trading in one direction more than the other, then thats the way I go. Why do you lean towards going long?
Metatrader's statement for this strategy may be fine.
Otherwise it is just simple idea with many others similar on the forum:
...
I have said the same thing about every one of my trades, but if I can create more meaning and justify trading in one direction more than the other, then thats the way I go. Why do you lean towards going long?
looks to me like price going to break out of upper trendline
Yes, often it looks like a trend line will break, until it doesn't. Its a waiting game. But if it does, its is obvious, which is great for eliminating the guessing game.
- Free trading apps
- Over 8,000 signals for copying
- Economic news for exploring financial markets
You agree to website policy and terms of use
This strategy is based on two timeframes, and 2 indicators, one being ASI, and the other being mtf Fractals.
For purchase order- Trend line break, but wait for a bump in ASI so a strong trendline direction can be built. Draw basic trendline break on chart with help of mtf fractals.
Same for sell order.
I will post trades so people can see where improvements can be made- Post any thoughts
How to draw trendlines to trade! with 2 trendlines on ASI
1)look through 3 or 4 timeframes, see if you see if you can connect 2 bumps on ASi on the highest time frame. If you can not, then try to do the same on the lesser long term time frame.
2) Do the same on Medium and short term market moves, connecting as many bumps as possible on ASI on medium and lower time frame.
3)After the main direction is visible and easily defined, try to create a channel where you can create a possible top where market might reverse on each time frame you used for the first 2 steps.
4) Once the channels are drawn on ASI, and on chart candles with the help of mtf Fractals, then see scan every time frame again and look for where you would feel comfortable making a trade in the direction of the medium or lesser long term or long term trend.
5) Make the trade! And follow any new bumps that appear on lower time frames to help follow you out of your trade. Such as if you made a trade on 1 HR, you would go down to 15 min to draw new trend lines on ASI to connect new points that appear while you trade the trend.
Look for in the area of 70 candles or more to determine trend direction. A few days of data helps a lot when spotting market long, medium and short term trends. Trade above 5 Min with 15 Min being the smallest time frame you will trade, and 30 min being a good mix of medium and short time frame.
Also use a 3 simple MA shifted 3 times to confirm trend line breaks on chart. And pay attention to where monthly, weekly and daily pivots are through Waddah Attars Pivot indicator.
Template posted!