Monika Korzec Session Trendlines called MKS trendlines or MKS system

A Session Trendline is not your regular trendline that connects lows and highs, but instead is a time-sensitive trendline that connects price action between two different timeframes.

I have discovered that four of them work extremely well. Some of the minor ones are not as good, so those will not be discussed. I checked the behavior of these trendlines using the following currency pairs: GBP/USD, EUR/USD, CHF/USD, USD/CAD and USD/JPY. Based on the fact that they work on the above-mentioned pairs, I believe that they will also work with other pairs.

The "discovery" of these trendlines happened when I was researching the price behavior around the times when major news is released and around the times when the main currency markets open. These trendlines should be used on the 15-minute charts, as they are good for day trading strategies only. MKS trendlines can be used to create visual representation of the trend happening during current trading session. We need to watch them at specific times of the day to see on which side of the trendline price will close and then we need to follow the price in the direction.

You can use the MKS trendlines as a stand-alone indicator, however, if there is a confluence of two or three other events, you get a pretty strong trade.

These trendlines are described below, with all times given in Eastern Time (ET), and are designated as follows:

MKS-1 trendline

Connect the 5:45 pm candle with the 12:15 am candle MKS-2 trendline

Connect the 5:45 pm candle with the 2:45 am candle MKS-3 trendline

Connect the 3:15 am candle with the 8:15 am candle MKS-4 trendline

Connect the 8:15 am candle with the 2:15 pm candle

To draw the MKS-1 trendline, we need to have a 15-minute chart opened, and we have to connect the "closing price" of the candle that starts at 5:45 pm ET with the candle that starts at 12:15 am ET (see Figure 5.7).

Monika Korzec
Figure 5.7. MKS-1 trendline

To draw the MKS-2 trendline, we need to have a 15-minute chart opened, and we have to connect the "closing price" of the candle that starts at 5:45 pm ET with the candle that starts at 2:45 am ET (see Figure 5.8).

Drawing Trendline
Figure 5.8. MKS-2 trendline

To draw the MKS-3 trendline, we need to have a 15-minute chart opened, and we have to connect the "closing price" of the candle that starts at 3:15 am ET with the candle that starts at 8:15 am ET (see Figure 5.9).

Figure 5.9. MKS-3 trendline

To draw the MKS-4 trendline, we need to have a 15-minute chart opened, and we have to connect the "closing price" of the candle that starts at 8:15 am ET with the candle that starts at 2:15 pm ET (see Figure 5.10).

Mks System Chart
Figure 5.10. MKS-4 trendline

The idea behind these trendlines is to enter a trade at the closing price of the first candle that forms after our trendline is established. If the candle closes below the MKS trendline, we go short, if it closes above the MKS trendline we go long. The only time when we would not take a trade using these trendlines is when the first candle that formed is a doji. (A Doji is a candle that has the same opening and closing price.) We can also use the MKS trendlines to make another trade if price goes thru the trendline and closes below/above it before the next trendline is established.

Let's discuss the four examples that I used to describe the MKS trendlines, and then we will discuss an example showing how these trendlines work with each other:

1. The first candle that closed after our MKS-1 was established, closed above the trendline. In this case, we should be buying USD/CAD at the price at which the candle closed. This trade was good for approximately 60 pips, using an approximate 30 pip stop (review Figure 5.7).

2. The first candle that closed after our MKS-2 was established, closed below the trendline. In this case, we should be selling USD/CAD at the price at which the candle closed. This trade was good for approximately 20 pips, using an approximate 30 pip stop (review Figure 5.8).

3. The first candle that closed after our MKS-3 was established, closed below the trendline. In this case, we should be selling USD/CAD at the price at which the candle closed. This trade was good for approximately 90 pips, using an approximate 15 pip stop (review Figure 5.9).

4. The first candle that closed after our MKS-4 was established, closed below the trendline. In this case, we should be selling USD/CAD at the price at which the candle closed. This trade was good for approximately 30 pips, using an approximate 15 pip stop (review Figure 5.10).

Using these trendlines is a very efficient way of catching at least 15 pips, on average, with each setup. Since there are four major setups, we should be getting at least 60 (4 x 15) pips per day.

In the next example I am going to explain to you the best usage of this trading system. For each trade we will have three possible stop targets and two possible exit targets.

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