Trendline-Demark Breakout system

Trendline-Demark Breakout system is a combination of two different indicators, the demark trend line and BBand stop indicator. This strategy works best on higher time frames from H4 and higher. The system is relatively simple to trade and mostly self explanatory

Strategy set up

• Demark trend line
• Bband stops

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Strategy Rules Trendline-Demark Breakout system

Long Set up:

• Look for long set ups only when the last arrow/trend line before break out was blue arrow with the blue dots
• Stops are placed at the nearest lowest white dot
• Target is set to the horizontal line

Short Set up:

• Look for short set ups only when the last arrow/trend line before break out was red arrow with the red dots
• Stops are placed at the nearest highest white dot
• Target is set to the horizontal line

Examples Trendline-Demark Breakout system

Long set up

• In the above chart, we look for long positions as the BBand stops indicator starts to print in the blue up arrow
• We enter the trade on break out of the blue trend line with stops placed to the previous white dot low
• The target is set to the horizontal line
• As seen in the chart above, the long trade resulted in a profit

Short set up

• In the above chart we notice that the red trend line was broken on appearance of the red down arrow
• Stops are placed near the previous white dot (the start of the blue trend line)
• The target is placed to the red horizontal line
• The short trade resulted in a profit

Conclusion

Demarks trend lines are known to be quite consistent in terms of trading breakouts. (Read more about BreakOut Trading Method) It is especially useful for traders who do not know how to plot trend lines correctly. In a way, this trading system is an improved version of the trend line break out system, but with the assistance of the bband stop indicator.

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