Archive for March 2016

Trading with Ichimoku Clouds ebook

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Japanese Candles” is a phrase that is well known among the trading cammWlity. If the phrase is searched on the Internet, 3,810,000 searches are available in the Google search engine today. In comparison, if Ichimoku” is searched, 141,000 searches appear, which is quite a difference. Steve Nison brought Japanese Candlesticks to the Western world and did a greatjob illustrating how it can be used to become a successful trader. He left a huge mark on the trading community, and today institutions down to the average retail trader use Japanese Candlesticks in some form or fashion in their technical analysis.

This book brings Ule next phrase of Japanese technical analysis to the Western world, Ichimoku Kinko Hyo.” Ichimoku Kinko Ryo is a system Umt has been used successfully throughout Japan for years but never has progressed fOr\vard in the Western world. If a trader combines Japanese Candles with Ichimoku Kinko Byo, a powerful system is available to him or her. In fact, it increases the probability of trading drastically and can be evidenced by trading in a “paper” account after reading this book Japanese Candlesticks will not be discussed further in this book and any additional infomlation regarding this topic is avaiJable through Steve Nison’s books and training seminars.

Content :
Background
Components of a Trading System
Ichlmoku Components
Tenkan Sen
Kijun Sen
Chikou Span
Kumo Cloud Components
Senkou Span A
Senkou Span B
Kumo Cloud
Ichlmoku Trading Plan
Components
Strategy Description
Backtesting
EURUSD-A Two-Year Backlest
Summary-Two Years of Backtesting
Examining the Backlest Results
Optimize Trading Plan
lchimoku Strategy
Ichlmoku ‘I’tme Elements
Ichimoku Time Elements
Doug Laughlin
Is It as Easy as Just Being Taught a New System?
The Problem We Have with Getting in Our Own Way
Is There a Conspiracy Against the Small Trader?
Traders Myth-Smart People Make the Best Traders
Losing Trades Are Acceptable
A Successful System Will Fortify Your Convictions
Self-Sabotage and How It Applies to Your Trading
In Summary-Trader Psychology Overall
Consequences of Trading without a Trading Plan
Trading Plan
Backtesting
Conclusion
Ichlmoku Anulysls Sheet

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Blackedge FX system

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Black Edge FX is a trading machine created by Josh Taylor. He has been in the front of the cutting-edge forex trading. He has developed a signals service with more than 5,000 customers and a couple of innovative trading tools. He focused on helping traders to become winners in forex trading.

Josh is excited to share with you a reliable forex system. He describes his product as a super-powered MT4 software. According to him, this is easy to use for both beginners and expert traders. You can begin earning trading profit with this software even if you have not traded before.

You can see how profitable the Black Edge FX in less than two hours. If you happen to be an expert trader, this serves as a treat for you. It works very well, and you can spend lesser time trading and making money. You can adjust the settings of Black Edge FX and let it perform other trading tasks.

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Ebook 14 Strategies From A Millionaire Trader

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Giving Yourself Time and Room to Be Right , How many times has this happened to you? You waited patiently for the market to show you where it’s going, then bought or sold the breakout to new highs or lows, only to be stopped out when price pulls back against the new trend. And of course, once you were stopped out of the market, the market returned to the trend—without you!

Or maybe you waited patiently for price to approach a prior area of support, then got long at that support area. Once you were in the market, price briefly violated the support area, stopping you out of your position. And of course, once you are stopped out of the market, the market climbed back above the support and headed higher—without you! The traditional method for buying at prior support would be a limit buy order at the test of the prior multiple bottoms marked by the blue trend line and then putting a stop loss order below the trend line.

You can see this method would have resulted in you entering a long position and then quickly getting stopped out as price briefly plunged through the trend line area. When prices began to trade below the trend line marking the multiple lows, breakout traders began selling “at the market” to enter new short positions.

These new entry orders pushed the market lower, executing stop loss orders left by the traders that had been getting long against the support marked by the trend line. But note that once the breakout traders’ orders and the stop loss orders ran their course, price pulled right back above the trend line and headed higher—as the new short positions entered on the break below the trend line began to be stopped out! Getting “washed and rinsed” is a common occurrence in trading.

Is there a way you can avoid it? I have been working with my students in one-on-one mentoring with a pattern we call the “Lazy Z” that was designed to help avoid being “washed and rinsed” when attempting to enter trades at these critical areas. Let’s look at some charts and see if I can explain how we use this “Lazy Z” pattern to help avoid being “washed and rinsed.”

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Pin Bar Trading Strategy

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The Pin Bar Trading Strategy might be one of the most overlooked strategy because it’s seems too simple to be effective for many traders. Many traders think that price action is all technical analysis, however, that’s only true to some extend because price action is a more psychological analysis because the price action candles is telling us a story, what the market is thinking and what it could be getting ready to do in the near future. The first thing any professional trader should want to do whether it’s a Pin Bar or any other price pattern is to understand why you’re trading this pattern, what’s the story behind it?


Pin Bar Trading Strategy is the core of Price Action Trading


The Pin Bar Trading Strategy is really the bread and butter setup for any price action trader as it’s very easy to be spotted on a chart (see chart below) with clear characteristics and it can be fairly profitable if it’s in the right market context. Going forward you’re going to learn more about the psychology behind the Pin Bar, how to identify a Pin Bar and how to properly trade the Pin Bar.


The Psychology behind the Pin Bar


Candlesticks can form for a lot of different reasons, but in the case of a Pin Bar, which is a reversal pattern, generally there are two big reasons why they form which in an uptrend the cause can be either buyers getting exhausted or institutional selling pressure while in a down trend the cause can be either either sellers getting exhausted or institutional buying stepping in the market. There is a second dynamic to Pin Bars, generally the price reversal is very aggressive and we should see a quick and sharp reversal.

Effective Trading with Pin Bars


Just because you found a Pin Bar it doesn’t mean you should trade it, because it needs to be in the right market context and it needs to be in the right position. The first think you have to do is to look at the trend prior to the Pin Bar as when we make trades we want to make sure we’re trading with the trend. The second thing we have to look after major support and resistance levels and the third thing we look after the break of that support and resistance level and then the pullback. For the Pin Bar to be valid you definitely want to have the right market structure, because it’s going to give you the highest chance of success.


The characteristics of a Pin Bar:



  • The size of the Pin Bar: you need a big, bold candlestick that sticks out on a chart;
  • The size of the PB needs to be at least equal or larger than the previous bars;
  • The wick need to protrude beyond the previous candlesticks and beyond any major support and resistance;
  • The body size it can’t be any more than a third of the total candlestick size;

The higher the quality of a PB the more assurance of success you can have and that will help you determine how you’re going to plan your trades. The entry and exit rules are quite simple you can either enter at the break of the Pin Bar, once the high/low are broken or you can either use the left eye, which is represented by the candle prior to the PB. Stop Loss is usually placed few pips above/below the wick.

To be a successful trader you don’t need to use a lot of indicators or a special system, all you need to do is look at what the price is doing as price is telling you everything you need to know and you can use that in your favor to make successful trades.


Pin Bar Mt4 Indicator Download


If you like this strategy, then we have just the treat for you. We have a Pin Bar Mt4 Indicator for you to download free. It is designed to help you detect bullish and bear pin bar on your MT4 chart. Click here to download it now.

Extreme FX profit indicator and EA by Kishore M

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-Whenever there is profitable trade detected, it will automatically pop-up an Order Window for you to enter the trade. Target profit & stop loss are automatically set for you.
-Easy-to-setup automated Buy/Sell arrow indicators on your trading chart
-Over 90%++ winning accuracy (proven live-trading record)
-No trading experience required
-Works on all MT4 platforms
-Works with all major currency pairs
-Works 24 hours at anytime of the day/night
-Works on ALL timeframes (recommended timeframes are 15 minutes, 30 minutes, 1 hour) so that you can make much more profit within a much shorter time)
-You can choose if you want to enter the trade or not (flexibility for seasoned traders)
-I also include a powerful step-by-step video in showing you how to maximize your profit with this trading system.
-The system is engineered by an elite team using my proprietary Trading strategies backed up with 2 decades of my trading experience.

Password is : kishoreM
( make sure you copy and paste the password )

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RSI Stochastic Divergence Strategy

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It is generally known that the trend is your friend. Buying pullbacks within an established trend forms the basis for almost any trading following strategy. While there are many different approaches to trend trading, in this trading strategy we make use of the oscillators to find hidden divergences and trade in the direction of the trend. Hidden divergences are usually less frequent than the classic divergences. They are more valid and signal a more powerful trend continuation pattern.


RSI Stochastic Divergence Strategy – Chart Set ups



  • EMA’s 20 and 50, Closing prices: The two Exponential moving averages serve as a visual guide to the trend. We look for short positions when the 20 EMA is below 50 EMA and conversely, long positions are taken when the 20 EMA is above the 50 EMA
  • Stochastic: (14,3,3 High/Low Exponential): The Stochastic Oscillator will be the main indicator pointing us to hidden bearish and bullish divergences
  • RSI (13 or 14, Closing prices with 50-line only): The RSI acts as a trigger indicator for us to go long or short. Long positions are taken when RSI crosses above 50 and short positions are taken when the RSI crosses below 50, following a hidden divergence and trend confirmation from the Stochastic and the EMA’s.

Once the indicators are added to the chart, the set up is as shown on the chart below.


  • Bullish Hidden Divergence: Price makes a higher low, Stochastics makes a lower low
  • Bearish Hidden Divergence: Price makes a lower high, Stochastics makes a higher low


The illustration below gives a quick snapshot of the two types of hidden divergences. We wait for these appear just before the EMA crossover or only after the first EMA crossover.

Trend divergence trading – Trade Set ups


For long positions



  • EMA 20 is above EMA 50 or has made a bullish crossover
  • Stochastics has signaled a hidden bullish divergence
  • Buy when RSI 14 crosses above 50-line
  • Set stops to recent swing low
  • Book first target at the most recent high
  • Trail the second target by moving to break-even after the first target is reached

For short positions


  • EMA 20 is below EMA 50 or has made a bearish crossover
  • Stochastic has signaled a hidden bearish divergence
  • Sell when RSI 14 crosses below 50-line
  • Set stops at recent swing high
  • Book first target at the recent swing low
  • Trail the second target by moving to break-even after the first target is reached

Important Notes:



  • A hidden bullish/bearish divergence is to be used only on the first bullish/bearish EMA crossover
  • There is a good chance that the second position often gets stopped out, unless where trends are strong in which case, the profit potential can be greatly magnified
  • For additional confirmation, look for inside bars or engulfing bars from the candlestick patterns

RSI Stochastic Divergence Strategy – Trade Setup

Short Set up Example



  1. 20 EMA crosses below 50 EMA
  2. Stochastics shows a hidden bearish divergence
  3. RSI crosses below 50-line
  4. Additional confirmation: Bearish engulfing near the end of the hidden bearish divergence
  5. Short set up reaches the first target, while the second position would have been stopped out

Long Set up Example



  1. EMA 20 crosses above 50
  2. Stochastics prints a hidden bullish divergence
  3. RSI moves above 50-line
  4. Long position is taken with stops set to the previous swing low
  5. The first target set to the recent swing high is reached
  6. Stops for the second position is trailed to break even and the trade is eventually stopped out at the next swing low point shown on chart

RSI Stochastic Divergence Strategy – Powerful Reversal Strategy


One of the biggest advantages of trading the hidden bearish divergence with the trend divergence set up is that trades are often reversed. The stops are usually tighter compared to the targets and when a trend starts to unfold, big profits can be captured. The trend divergence strategy can be used on time frames from H1 and up to D1.

By: forexstrategieswork

Technical Analysis of Gaps

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Gaps have attracted the attention of market technicians since the earliest days of stock charting.
Agap occurs when a security’s price jumps between two trading periods, skipping over certain prices. A gap creates a hole, or a void, on a price chart. Because technical analysis has traditionally been an extremely visual practice, it is easy to understand why early technicians noticed gaps. Gaps are visually conspicuous on a price chart. Consider, for example, the stock chart for Huntington Bancshares (HBAN) inFigure 1.1. A quick glance at the price activity reveals four gaps.Gap types differ based on the context in which they occur. Some price gaps are meaningful, and others can be disregarded.

Breakaway (or Breakout) Gaps

A breakaway gap is one that occurs at the beginning of a trend (see Figure 1.2). In November 2006, AT&T (T) was in a trading range. On November 29, the stock gapped up and an uptrend began. Because profits are made by jumping on and riding a trend, breakaway gaps are considered the most profitable gaps for trading purposes.

Content :
1: What Are Gaps?
2: Windows on Candlestick Charts
3: The Occurrence of Gaps
4: How to Measure Returns
5: Gaps and Previous Price Movement
6: Gaps and Volume
7: Gaps and Moving Averages
8: Gaps and the Market
9: Closing the Gap
10: Putting It All Together

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FOREX NAUTILUS Indicator

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We’ve been working on it for months and I’m proud to call it the best indicator of the year. A perfect mix of innovational algorithm that allows to provide a trader with accurate signals, user-friendly visualization with all the essential information on the chart, no repainting and all the necessary alerts
and notifications.

 It is better to close the orders when you get a special alert, on its peak.
You will have the opportunity to modify the order lately.
 Also when the line (red or blue) crosses the bar is considered a nice point to enter the market.

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Buy Sell Arrow Scalper MT4 Indicator – Free MT4 Indicator

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The Buy Sell Arrow Scalper MT4 Indicator is perhaps one of the most versatile of trading indicators available today. As the name suggests, the Buy Sell Arrow Scalper Indicator is a scalping indicator and is therefore best used for intraday trading. Of course, swing traders can also make use of the Buy Sell Arrow Scalper MT4 Indicator. At the very core of this scalping indicator is the fact that it is a trend following indicator. While not sure how this indicator plots the lines, it does seem to be some kind of a moving average line with the up and downtrends being depicted when prices trade above or below the Buy Sell Arrow Scalper MT4 Indicator. This is one good indicator and it does not repaint.

If you are new to trading Forex, or haven’t had much success in the past, the Buy Sell Arrow Scalper MT4 Indicator is highly recommended (of course, start with practicing on a demo account first) as it keeps you on the right side of the trade.

nother big advantage to this trend trading system is that because it is based on a trend following system, advanced traders can employ their own price action techniques or trading strategies to filter only the best trading signals.

Buy Sell Arrow Scalper MT4 Indicator – Settings


The Buy Sell Arrow Scalper MT4 Indicator settings are surprisingly simple in comparison to the effectiveness of the signals that are produced. The picture below shows the settings that can be configured in the Buy Sell Arrow MT4 Scalper Indicator.
Add Buy Sell Arrow Scalper MT4 Indicator - Settingscaption



Amplitude: The default setting is ‘2’ and this can be changed. Lower the value to make the indicator more sensitive. This however comes with the benefit of capturing trends quite early. You need to be quick to act when the trend changes. When the Amplitude is set to a higher value 5 or more, the Buy Sell Arrow Scalper MT4 Indicator becomes less sensitive. Trends are prolonged and if you do not enter at the correct price, chances are that you could get whipsawed in the process. Traders are recommended to experiment with the settings and choose a value. That said the default setting of 2 works just fine to ride the short term trends. The most important thing you can do for yourself is to practice on a demo account.

Show Bars: The Show Bars setting can be toggled to True/False. When set to true, you also notice small bars showing up from the main trend line. These lines depict the trailing stops that can be used and it is ideal to leave the Show Bars to ‘True’ in order to lock your profits and minimize risks.

AlertsOn: A useful setting that helps in alerting you to a trend change

Once the Buy Sell Arrow Scalper MT4 Indicator is applied to the chart with the default settings, you can see the following.

Buy Sell Arrow Scalper MT4 Indicator – Trading Rules


Trading with the indicator is very simple. Wait for the previous trend to change to which you will be alerted to. Go long or short depending on the trend and set the initial stop loss to the most recent high or low. Once price starts moving in your direction, use the ‘bars’ to trail your stops accordingly.

The first chart below shows a buy example. After the up arrow is shown on chart, wait for the first bar to close and then enter long. Set your stop loss to the nearest low and once price starts moving forward, trail the stops to below the bar until you get stopped out. There are times when your position does get stopped out within a few sessions after entering the position. However, the fact that the winners far outweigh the losers ensures that your trading set up is robust.

The thick horizontal line shows the 5 day high and low while the thin horizontal lines are the 1 day high and low. In the above example, note how the 1 day and 5 day low are clustered close together, thus indicating a key support level. A typical way to trade this set up would be to buy on a bullish candlestick pattern off the support level, targeting the one day high, or to sell the support breakout.

Traders can also make use of moving averages, or oscillators to time their entries or use pivot points as well to target the intraday support and resistance levels.

To make it easier, here’s the summary of the trading rules for Buy Sell Arrow Scalper MT4 Indicator.

Entry Rule

When the price breaks above the blue line, then go long.
When the price breaks below the red line, then it’s time to short.

Exit Rule

This strategy aims to ride the trend as far as possible.
For long position, set a trailing stop loss as the session low.
For short position, set a trailing stop loss as the session high.
You might get stopped out a bit using this exit strategy but if you catch one big trend, it’s gonna be worth it.

A simpler exit is to target 10 pips per trade.

Stop Loss
For long position, use the session low as stop loss.
For short position, use the session high as stop loss.
Be aware that if the session candle is very long, then your risk is higher.
You can either skip the trade or enter a smaller lot size.
It’s all about risk management first, profit second.

Time Frames
We suggest that a 15 min time frame be used for better consistency. You can of course try the 5 min chart. We are not a big fan of short time frames but this is one strategy that is designed for fast and short holding period.


Buy Sell Arrow Scalper MT4 Indicator – Powerful Scalping Indicator


In conclusion, the Buy Sell Arrow Scalper MT4 Indicator is probably one of the most ideal trend following strategy based indicator. There are no complex settings involved and neither are there too many variables to consider when taking a position. With the risks staying tight in comparison to the profits, the Buy Sell Arrow Scalper MT4 Indicator is definitely worthy of a place in your trading arsenal.

Buy Sell Arrow Scalper MT4 Indicator – Download


We have provided this powerful scalping indicator to you at no cost. We humbly request for your help to spread the word by sharing on one of the social platforms below. To unlock the download link, you just need to share this page to help us achieve our goal of helping more traders out there.

Buy Sell Arrow Scalper MT4 Indicator Download

3 Bar Net Line Strategy – a Joe Stowell Price Action Strategy

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The 3 Bar Net Line Strategy was made famous by Joe Stowell. The 3 Bar Net Line Strategy is a price action strategy to determine the change of trend. No lagging indicators are used in this strategy. And because price action is used as the only means to determine the change of trend, this method can be used alongside existing methods such as moving averages to confirm the trend change and thus allow traders to trade in the direction of the trend.

What is the 3 Bar Net Line Strategy?

Existing trend: Down

Aim: Determining change of trend from ‘Down’ to ‘Up’

  1. Find the lowest low in price and mark the high of this bar as #1
  2. Compare this high to the most recent higher high and label this bar as #2
  3. Using the high of #2 bar, find the most recent highest high and label this bar as #3
  4. The high of the #3 bar becomes the three bar net line. When prices close above the high of the #3, it signals a change of trend.


Existing trend: Up

Aim: Determining change of trend from ‘Up’ to ‘Down’

Find the highest high in price and mark the high of this bar as #1
Compare the low of the bar #1 to the recent lower low and mark this as bar #2
Look for the lowest low of bar #2 and label this bar as #3
When prices close below the low of bar #3, it signals a change of trend from Up to down

Notes:

When new highs or lows are formed, repeat the process
Ignore any inside bar that are formed
The above screenshots shows how using Stowell’s 3 Bar Net Line Strategy set up, you can anticipate potential change of trend as they happen.

How to trade the 3 Bar Net Line Strategy


As you can see by now, the trading strategy can be customized in different ways. For example, when trading with divergence, you can make use of the 3 Bar Net Line Strategy to confirm the change of trend and then take positions accordingly.

Another way to trade the three bar net line strategy is to apply moving averages. First, wait for confirmation of a change of trend from the 3 bar net line strategy and then wait for the moving averages to confirm the same and then enter a position.

The chart below illustrates both a buy and a sell signal by combining the 3 Bar Net Line Strategy and the moving averages (20/50 EMA’s).

Notice how the three bar net line first gives us a signal of a potential change of trend on a break of the three bar net line. The change of trend is then confirmed by the moving averages confirming the trend as well.

In both the entries, the set ups were really smooth leaving no subjectivity. Another important factor is that by using the three bar net line, traders can gain more confidence in trading something as simple as moving average crossover.

3 Bar Net Line Strategy – Simple and powerful


The 3 Bar Net Line Strategy is very simple and easy to master. There isn’t much of subjectivity involved when identifying the highs and the lows in prices. It might perhaps take some practice on your part but it’s all gonna be worth it as this will become a lifelong money making skill for you and your family.

By: forexstrategieswork.com

Making Money in Forex, Trade Like a Pro Without Giving Up Your Day Job

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You should understand that I am a trader, not an analyst. This book contains my experience and methodologies as a trader interested in two things: reducing risk and making money. I don’t care about market correlations, the Big Mac Index, or speculating about whether a central banker is going to shave his mustache off. I do not spend my time analyzing the market to death; I’m a trader and making money is all I care about.

Do not expect a detailed analysis of each currency pair or the effect crude oil may have on the Canadian dollar. I will not discuss traditional technical patterns, Elliot Wave theory, or Gartley patterns (whatever the heck they are). These topics have been discussed ad nauseum by other authors and I see no reason to cover them again.
I don’t use them in my trading, so why should I include them in this book? I am only interested in identifying support or resistance, where price is now, where is it headed, and how can I profit regardless of the cost of tea in China. Throughout this book I refer to the theme of bargain hunting. Many traders tend to lose their shrewd business sense when it comes to trading.

The same trader who wouldn’t pay a penny too much for a car will pay full price for a trade. These traders chase breakouts, sell resistance, and buy support. I want to reset your thinking and remind you that trading is no different from any other market. Demanding the best deal out of every trade lowers your risk and increases your profits. No trade is worth taking unless you are able to dictate your terms to the market. Throughout the chapters on bargain hunting you’ll learn the principles and methodologies I follow to be the cheapest trader I can possibly be. It’s a badge I wear proudly.

Content :
CHAPTER 1 Exploring the Currency Market
What Is Forex ?
Forex Roots
Forex Participants
Forex versus
Exchange Markets
Trade Mechanics
Order Types
Margin and Leverage
Earning Interest S
electing a Currency
Dealer

CHAPTER 2
Principles of a Bargain Hunter

CHAPTER 3 Reading Price Action
Understanding Supply and Demand
Identifying Support and Resistance
Trading Price Action

CHAPTER 4 Managing Risk
Always Use a Stop Order
Beware of Overtrading
Reducing Your Transaction Costs
Stop Thinking about Losses in Pips
Managing Risk through Position Size
Manage Risk Consistently
Be Conservative with Trailing Stops
Is Losing 70 Percent of Your Trades Bad?
Know When to Take a Break

CHAPTER 5 Managing Profit
Common Profit Management Techniques That Increase Volatility
Identifying Profit Targets
Identifying Profit Targets with Fibonacci Ratios
Using Trailing Stops
Automating Profit with Limit Orders

CHAPTER 6 Bargain Hunting Along
the Edge
Determining Trends
Identifying a Bargain Day
Locating a Support and Resistance Zone
Managing Risk
Managing Profit
Example Trades

CHAPTER 7 Bargain Hunting with Price Action
Identifying a Bargain Day with Price Action
Managing Risk
Managing Profit Example Trades

CHAPTER 8 Bargain Hunting with the
Commodities Channel Index
The Traditional CCI Trade
The Bargain Hunter’s CCI Trade
CHAPTER 9 Bargain Hunting with
Fundamental Data
Why Trade News? What News Is Worth Trading?
Which Currency Pair Should You Trade
Understanding Market Reactions
Trading a Fundamental Event Closing Bell

CHAPTER 10 Achieving Consistency: Simple
Steps Every Trader Can Take
Stop Searching for the Forex Holy Grail
Fix Yourself First
Are You Really Going to Earn 100 Percent a Month?
Consider Long-Term Trading
Specialize
Develop a Written Trading Plan
Keep a Trading Journal
Demo Trade Properly


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Author:By RYAN O’KEEFE
John Wiley & Sons, Inc.
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