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 illumination signals system

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Easy trading signals with arrows. works in all pairs and time frames.

Forex illumination signals system.rar
candle_time_end_and_spread.ex4
Heiken Ashi.ex4
PROFIT_MASTER_V3.ex4
Forex illumination.tpl

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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.