Trendline Staircase Strategy

When the most recent trend line (number 1 on the chart) has been pierced, we would have to wait first for a retest of the diagonal support and enter after it has been confirmed, either at the level of the first break (above the high of the piercing candle) or with a limit order just above the level of the trend line itself. Initial stop-loss to be set at the lows of the piercing candle for a conservative approach, but for a better risk-to-reward ratio we can use the previous horizontal resistance area that was broken.

The first area to target would be the middle line (number 2) where you can take partial profits or either set stops to break-even or just below the lows of the second piercing candle. The main target of this strategy is line number 3 which in this case also coincides with an area of resistance between 131.00 and 131.65.

Here we have another potential set-up on GBPUSD 4-hour charts, for the continuation of the staircase towards target 3, in which we will have to wait line 2 to be significantly pierced and then enter according to the above defined parameters: