• Registered: 2010-12-26
  • Posts: 38

Topic: not sure how to simulate trendline crossing in a FSB strategy

Hello everyone

I've had some time away from the forum and started to have a little more success with a manual trading strategy that incorporates the use of trend lines as a trade entry filter.

That is, as well as the relevant opening logic indicator conditions, I require a price close above or below a drawn trend line, to confirm trade entry.

Unfortunately I have no idea how to simulate this using FSB.

Can the requirement to cross a trend line (opening logic condition) be simulated in FSB and if yes, how?

Thinking about this as I type, I am not sure how trend lines are drawn in an automated fashion either.

I hope someone might suggest a way forward or suggest an alternative.

Obviously I have tried moving average entry filters, but the trend line approach seems more effective.

thanks in advance
dave88

  • footon
  • footon
  • ◄≡≡≡►
  • Offline
  • Registered: 2009-08-17
  • Posts: 2,969

Re: not sure how to simulate trendline crossing in a FSB strategy

Welcome back, Dave!

In principal, yes, it is possible. For it to happen you need trendline drawing indicator, of course. Year ago I was working on a trendline indi, with invaluable help from Krog it worked (to an extent I saw fit back then). I went through my indis quickly, I think I found it, but it might need a few touches.

I am not sure how trend lines are drawn in an automated fashion either

That's the most important thing about it, really. Make 10 people draw a trendline by hand, and at the end of it you'll have more or less 10 different lines... What I did was basing the trendline on Recent Swing High/low indi, that means on recent swing highs (last 2 of them, if I recall it correctly) it draws a higher trendline, on recent lows it draws lower trendline.

How is your strat working, on a trendline break or a confirmation of sorts (for instance, opens above higher trendline etc)? If it's a breakout, is it all systems go at a trendline touch or does it have to close above for it to be considered a breakout?

I have alternatives too big_smile
http://forexsb.com/forum/topic/2771/gan … indicator/
And lastly - maybe a novel use of Donchian channel?

Thanks!

  • Registered: 2010-12-26
  • Posts: 38

Re: not sure how to simulate trendline crossing in a FSB strategy

thanks for the reply and suggestions, I will follow up and report back!!!!

in simplest terms for trend reversal confirmation I am waiting (in case of a long entry against a short trend) for a close price above the trend line and previous bar high

in conjunction with other factors of course.....

I am not familiar with Donchian Channels, but will explore and provide feedback on all of the above

(Good to be back, thanks again)

Dave