Before we begin I would like to go over a few basic rules:
1. Dignity and Respect at ALL times. Anyone not being respectful will be banned
2. If you don’t like this method, please move on. Take your opinion to another thread in this forum.
3. Know it All’s beware! Your opinion is valued here, but must be presented in a clear and concise manner. Please refrain from attempting to change the rules of this method because you think you know better. If you sincerely think you can make a suggestion that will improve this method, simply do that, make a sincere suggestion. Someone from the forum will look into it and get back to you.
4. If you are confused and need genuine help I ask that you PM myself or any of the other members that help me maintain this thread.
5. NO CONSPIRACY THEORY TALKS – TAKE THEM OFFLINE – NOT WELCOME HERE AT ALL
6. Please do not be negative in this forum. There are other people trying to learn, negativity breeds negativity. Negative posters will be banned.
Good luck to you and Happy Pippin!
This system is based on the “Balance Line” system (Dimension 5) of Bill Williams Trading Chaos system.
The system in and of itself is simple, yet very powerful.
The premise of the Balance Line according to Bill Williams is to think of the Blue line (balance line) as the top of a hill. As price approaches the blue line, it is moving up hill, therefore there is more resistance to GET to the blue line. Once at the top of the hill (the blue line) price moves away from the blue line easier (because it is now rolling down the hill).
My concept is this: Think of YOU as the BLUE LINE; You ARE the blue line. As the blue line, it is your job to react to price ONLY WHEN IT COMES TO YOU. When price moves away, take a nap (on that pair anyway) until it comes back to you.
Rules / tools:
Most effective on the 1H time frame and higher – I prefer 1H. Use pairs that trend well and have lower spreads
Tools: Apply Bill Williams Alligator to your chart. Change the color of the Red and Green lines to “NONE” within the properties. Save as template
What to look for:
You want to look for pairs that are in “immediate or shorter term trends” (long trends are excellent for bounce or continuation trades). Ranging or wild patterns are not recommended. Price hanging ON the blue line also not recommended.
Bounce Trades
A bounce off the Blue Line is when price has retraced from a trend and “touched the BLUE line”. When it touches and “bounces” off wait for the candle to close and set a pending sell / buy stop according to the rules below. This is prices way of telling you that the long term trend is potentially still intact and is about to continue.
Rules for Entry:
Look for HOW price approaches the blue line. If the angle is steep, the potential setup is more powerful. If price “CLOSES” really close to the blue line, again – more powerful; stay away from poor or no angle trades. Plenty of examples can be found in this thread with regard to angle. Keep in mind you are watching the “closing price” of a candle – “NOT THE OPEN PRICE” very important
Buy:
When the candle closes above the blue line (the closer to the blue line the better) set a pending buy stop order at the high of that candle plus the spread, plus 3 pips. The same applies for your stop loss. Set your stop at the low of the candle minus spread, minus 3 pips
EXAMPLE: GBP/JPY closes above blue line at 131.61, the spread for this pair is 3 pips (for my broker), plus 3 pips = Buy stop at 131.67 (131.61+.03+.03=131.67)
Sell
When the candle closes below the blue line (the closer to the blue line the better) set a pending sell stop order at the low of that candle minus the spread, minus 3 pips. The same applies for your stop loss. Set your stop at the high of the candle plus spread, plus 3 pips
EXAMPLE: GBP/JPY closes below the blue line at 131.61, the spread for this pair is 3 pips (for my broker), minus 3 pips = sell stop at 131.55 (131.61-.03-.03=131.55)
NEVER, EVER UNDER ANY CIRCUMSTANCES WILL YOU SET AN IMMEDIATE MARKET ORDER AT THE CLOSE OF A SIGNAL CANDLE. SET BUY/SELL STOPS ONLY!
THE DAY YOU STOP CHASING YOUR ENTRY, IS THE DAY YOU BEGIN TO REALIZE ACTUAL PROFITS.
LET PRICE COME TO YOU, YOU ARE THE BLUE LINE!
1. Dignity and Respect at ALL times. Anyone not being respectful will be banned
2. If you don’t like this method, please move on. Take your opinion to another thread in this forum.
3. Know it All’s beware! Your opinion is valued here, but must be presented in a clear and concise manner. Please refrain from attempting to change the rules of this method because you think you know better. If you sincerely think you can make a suggestion that will improve this method, simply do that, make a sincere suggestion. Someone from the forum will look into it and get back to you.
4. If you are confused and need genuine help I ask that you PM myself or any of the other members that help me maintain this thread.
5. NO CONSPIRACY THEORY TALKS – TAKE THEM OFFLINE – NOT WELCOME HERE AT ALL
6. Please do not be negative in this forum. There are other people trying to learn, negativity breeds negativity. Negative posters will be banned.
Good luck to you and Happy Pippin!
This system is based on the “Balance Line” system (Dimension 5) of Bill Williams Trading Chaos system.
The system in and of itself is simple, yet very powerful.
The premise of the Balance Line according to Bill Williams is to think of the Blue line (balance line) as the top of a hill. As price approaches the blue line, it is moving up hill, therefore there is more resistance to GET to the blue line. Once at the top of the hill (the blue line) price moves away from the blue line easier (because it is now rolling down the hill).
My concept is this: Think of YOU as the BLUE LINE; You ARE the blue line. As the blue line, it is your job to react to price ONLY WHEN IT COMES TO YOU. When price moves away, take a nap (on that pair anyway) until it comes back to you.
Rules / tools:
Most effective on the 1H time frame and higher – I prefer 1H. Use pairs that trend well and have lower spreads
Tools: Apply Bill Williams Alligator to your chart. Change the color of the Red and Green lines to “NONE” within the properties. Save as template
What to look for:
You want to look for pairs that are in “immediate or shorter term trends” (long trends are excellent for bounce or continuation trades). Ranging or wild patterns are not recommended. Price hanging ON the blue line also not recommended.
Bounce Trades
A bounce off the Blue Line is when price has retraced from a trend and “touched the BLUE line”. When it touches and “bounces” off wait for the candle to close and set a pending sell / buy stop according to the rules below. This is prices way of telling you that the long term trend is potentially still intact and is about to continue.
Rules for Entry:
Look for HOW price approaches the blue line. If the angle is steep, the potential setup is more powerful. If price “CLOSES” really close to the blue line, again – more powerful; stay away from poor or no angle trades. Plenty of examples can be found in this thread with regard to angle. Keep in mind you are watching the “closing price” of a candle – “NOT THE OPEN PRICE” very important
Buy:
When the candle closes above the blue line (the closer to the blue line the better) set a pending buy stop order at the high of that candle plus the spread, plus 3 pips. The same applies for your stop loss. Set your stop at the low of the candle minus spread, minus 3 pips
EXAMPLE: GBP/JPY closes above blue line at 131.61, the spread for this pair is 3 pips (for my broker), plus 3 pips = Buy stop at 131.67 (131.61+.03+.03=131.67)
Sell
When the candle closes below the blue line (the closer to the blue line the better) set a pending sell stop order at the low of that candle minus the spread, minus 3 pips. The same applies for your stop loss. Set your stop at the high of the candle plus spread, plus 3 pips
EXAMPLE: GBP/JPY closes below the blue line at 131.61, the spread for this pair is 3 pips (for my broker), minus 3 pips = sell stop at 131.55 (131.61-.03-.03=131.55)
NEVER, EVER UNDER ANY CIRCUMSTANCES WILL YOU SET AN IMMEDIATE MARKET ORDER AT THE CLOSE OF A SIGNAL CANDLE. SET BUY/SELL STOPS ONLY!
THE DAY YOU STOP CHASING YOUR ENTRY, IS THE DAY YOU BEGIN TO REALIZE ACTUAL PROFITS.
LET PRICE COME TO YOU, YOU ARE THE BLUE LINE!
Attached Images