Forex Early Warning
The low Cost Leader in Forex Trade Alerts
Copyright © 2013 MT2 Enterprises, LLC. All right reserved.
Agenda
Resources
3 Rules
Forex Basics
Parallel and inverse
Trends
Support and Resistance
Multiple Timeframe Analysis
ENTRY...
Reference Materials
All online at
Forexearlywarning.com
Reference
Materials
35 Lessons
In Order To Trade The Spot Forex
You need to know the direction of the Trend.
You need to have a valid entry point
3 Simple Rules
There are some very Simple things a forex
trader can try to understand that will
increase their trading acc...
Currency Transaction Basics
Exchanging currency at the Border
Currency Kiosk
Trade 10,000 USD for CAD at exchange rate of 1.05
Don’t spend the money.
If exchange rate moves down to 1.0...
Currency Kiosk
Trade 10,000 USD for CAD at exchange rate of 1.05
Don’t spend the money.
If exchange rate moves up to 1.06....
Currency Pairs
If you Buy a currency pair online you want it to go
up
If you Sell a currency pair online you want it to go...
Cash Transaction
SAME AS
Online Transaction
Cash is Unleveraged 1:1
Online 50:1 Leverage+
Anatomy of the Transaction
Exchange rate shows how many USD
needed to Buy or Sell 1 EUR
Anatomy of the Transaction
PIP “Price Interest Point”= .0001 Yen based = .01
PIP Value is based on 3 Factors
1) The curren...
Anatomy of the Transaction
Calculating PIP Value
1)EUR/USD
2)10,000
3)1.4600
1) 10,000 x .0001 = 1 USD per PIP
2) 100 pip ...
Anatomy of the Transaction
Calculating PIP Value
1)GBP/NZD
2)20,000
3)1.9945
1) 20,000 x .0001 = 2 NZD per PIP
2) 2/1.9945...
Anatomy of the Transaction
Calculating PIP Value
1)EUR/GBP
2)20,000
3).8580
1) 20,000 x .0001 = 2 GBP per PIP
2) 2/.8580 =...
Anatomy of the Transaction
Calculating PIP Value
1)GBP/JPY
2)350,000
3)152.60
1) 350,000 x .01 = 3500 JPY per PIP
2) 3500/...
How Do Currency Pairs Move?
Currency Pairs ONLY move up or
down based on??
Individual currency
strength & weakness
Basics
CAD Weak
USD Strong
Buy the USD/CAD
Basics
CAD Strong
USD Weak
Sell the USD/CAD
Strength and Weakness
The individual currency pushing is
STRONG
The Individual currency being pushed is
WEAK
Time to Learn
Parallel and Inverse – 2 Weeks
Support and Resistance – 3 months (If full time)
MTFA – 1 year
Parallel and Inverse
USED 2 WAYS
At Analysis
&
At Entry
8 Individual Currencies
USD US Dollar
CHF Swiss Franc
EUR Euro
GBP British Pound
JPY Japanese Yen
CAD Canadian Dollar
AUD ...
• GBP is Weak
• CHF is strong
• Sell the GBP/CHF
Parallel An Inverse Analysis
Reference: Lesson 8
Forex Article
Parallel and inverse analysis is the study of
how individua...
Individual Currency = The Country
Currency Pair = the Transaction
Individual Currency IS NOT a Pair
8 Individual Currencies
USD US Dollar
CHF Swiss Franc
EUR Euro
GBP British Pound
JPY Japanese Yen
CAD Canadian Dollar
AUD ...
28 Pairs
USD US Dollar
CHF Swiss Franc
EUR Euro
GBP British Pound
JPY Japanese Yen
CAD Canadian Dollar
AUD Australian Doll...
Currency Pairs Should Be Grouped
As Individual Currencies
EUR/USD
GBP/USD
AUD/USD
NZD/USD
USD/CAD
USD/CHF
USD/JPY
EUR/USD
...
The Market Is The Indicator
Pairs move only by Individual
Currency Strength and Weakness
Parallel and Inverse analysis is ...
Technical Indicators
Do Not Measure Individual Currency
Strength and Weakness
Why are they on charting platforms?
Technical Indicators
Strength and Weakness Examples
The individual currency pushing is
STRONG
The Individual currency being pushed is
WEAK
Strong USD
Strong EUR
Not Strong or Weak
Strong Vs Strong
Weak VS Weak
Slingshot
Slingshots
Your best and safest trade
Fastest movement in a direction
Groups of Individual Currencies
EUR/USD
GBP/USD
AUD/USD
NZD/USD
USD/CAD
USD/CHF
USD/JPY
EUR/USD
EUR/JPY
EUR/CHF
EUR/GBP
EU...
/
/
/
EUR Weak on All Pairs
/
/
/
/
Strong on All Pairs
Slingshot
On the Charts
EUR/JPY
GBP/JPY
AUD/JPY
NZD/JPY
CHF/JPY
USD/JPY
CAD/JPY
Drivers Changing
Strength and Weakness DRIVES the Market.
Change in DRIVERS is a change in which
individual currency is st...
When Do The Drivers Switch??
During the Intraday consolidations
Usually after the Main session
Sometime News events
When Do drivers
Lesson 14 - Best Times To Trade The Forex Market
When do drivers change?
Separate The Pairs
NOT EUR/USD
EUR USD
Always think of them Separate!!
Parallel and inverse
If you can identify what parallel
and/or inverse group is DRIVING
the market, you can successfully
tr...
Trend
Definition:
Trend on a currency pair is a long series
of movements and market dynamics on
both sides of the pair tha...
Trends
Trends
Trends
/
/
/
/
EUR/JPY Oscillation
Choppy
/
Choppy
Mine Mine Mine!!
Free Trend Indicators
F.A.S. – Fresh Cross. Angle. Separation.
Fresh trends = Lower Risk and Higher Risk
Reward Ratio
Over...
Trend Cycles and Fresh Crosses
Free Trend Indicators
Strong Uptrend Strong Downtrend
Trends
Trends
Trends
No Trend
No Trend
Price Chart Without Trend Indicators
You can see direction with just price
Price Chart With Trend Indicators
Price Chart With Trend Indicators
Trend indicator point to a direction
Noisy price chart
Same Chart – No Noise
Noise VS Clear Direction
Noise Direction
Support and Resistance
Lesson 10 - Forex Support and Resistance and Price Alarms
Article 2 - Effective Use of Price Alarms...
Support and Resistance
Support
A support level is a price level where the price tends to find support as it is going
down....
Support and Resistance
Entry Points
Targets
Stop levels
Support and Resistance
Support and Resistance
Short term Support and Resistance
M5, M15, H1 Timeframes (Intraday S&R)
Long Term Support and Resistance
H4, D1, W1, MN Timeframes
Support and Resistance
The Difference between Long Term and Short term S&R is
you profit potential or “Room to Move”.
How ...
Support and Resistance
What if you do not have 100 pips?? Road Block!
DO NOT consider the
trade!
Move on and find
another ...
Support and Resistance
Wait until the level is cleared. Temporary Road Block
Support and Resistance
Visual Examples of Support and Resistance
http://www.flickr.com/photos/forexearlywarning/
Support and Resistance
Entry = Short term Support & Resistance
Profit Target = Long term Support & Resistance
Stop Loss = ...
Support and Resistance
S&R Numbers are REPETATIVE on ranging and
oscillating pairs
Support and Resistance
Trend Indicators converging:
an indication of a currency pair
stalling at support or resistance
Price alarms
Used to monitor Short term S&R for possible entry
Your Job
Yes , work is involved
Know the condition of the market
by examining charts systematically
to assist in planning ...
MTFA- Multiple Time Frame Analysis
Lesson 11 - Multiple Time Frame Analysis of The Spot Forex
Article 4 - Multiple Time Fr...
MTFA- Multiple Time Frame Analysis
Lesson 11 - Multiple Time Frame Analysis of The Spot Forex
Article 4 - Multiple Time Fr...
MTFA- Multiple Time Frame Analysis
Simply put:
You are looking for the BEST and SAFEST direction
to trade a currency pair
MTFA Timeframes
W1- Weekly Long term Trend
D1 – Daily Intermediate term Trend
H4 – 4 hourly Short Term Trend
Main Directio...
MTFA – What to observe
Is it Trending or Oscillating?
Is it Choppy Ranging?
How FRESH or OLD are the Trends?
MTFA – What to observe
Is it Trending or Oscillating?
This is your Direction
Is it Choppy Ranging?
This means don’t trade ...
MTFA – What to observe
Is it Trending or Oscillating?
The higher time frames trends and the
direction of the major trend a...
MTFA – What to observe
“When the smaller time frames are in agreement with the larger
trends you can enter a spot forex tr...
MTFA – What to observe
Parallel and Inverse
Are all or most of the pairs in a group of 7 going
the same way or doing the s...
MTFA- Smaller Timeframes
If you have a Large trend
like W1 you could wait for a
fresh trend on D1 or H4
back in the direct...
MTFA for Parallel & Inverse
http://finance.groups.yahoo.com/group/4xtrendtraders/
FEW Analysis Heatmap
MTFA for Parallel & Inverse
http://finance.groups.yahoo.com/group/4xtrendtraders/
FEW Analysis Heatmap
MTFA for Parallel & Inverse
http://finance.groups.yahoo.com/group/4xtrendtraders/
FEW Analysis Heatmap
MTFA for Parallel & Inverse
http://finance.groups.yahoo.com/group/4xtrendtraders/
FEW Analysis Heatmap
JPY Weak AUD Weak C...
What Do I Do Now?
I have analyzed currency pairs using MTFA.
I found a currency pair in a strong uptrend.
Parallel & Inver...
How Do I Enter Trades?
You enter trades with the Forex Heatmap®
In the MAIN trading session
The Forex Heatmap®
Visual map
of Parallel and
Inverse at entry
The Forex Heatmap®
Main Goal at the beginning is to Learn to:
Master it!
When Do I Enter Trades?
How Do I Enter Trades?
The Forex Heatmap®
Monitors 28 Pairs in Real Time
Measures Movement of Currency Strength and Weakne...
What the Heatmap Does NOT Do
Does NOT know the direction of or if a Trend exists
Does NOT know strength or quality of the ...
What the Heatmap Does Do
Tells you which individual currencies are
strong or weak or mixed.
Point you to additional tradin...
Anatomy of the Heatmap
Arranged by 8
individual Currencies
USD
CHF
EUR
JPY
GBP
AUD
CAD
NZD
All pairs are
represented twice
Strong on All Pairs
Anatomy of the Heatmap
Separated into 2 Sessions
Anatomy of the Heatmap
Current time in GMT
NEXT reset to zero
(countdown timer)
Refreshes every 30 seconds
Anatomy of the Heatmap
Change in price shown
in percentage
Visual Bar showing price
change direction
% Change and Bar Graph Move Together
Highest % UP and Down
Biggest mover UP
(over.25) Gets
green Arrow
Biggest mover
DOWN(over.25)
Gets red Arrow
Anatomy of the Heatmap
% change is based on the currency pair price movement
0.25% move up
EUR/USD current rate = 1.3330
1...
Anatomy of the Heatmap
1.00% move on GBP/CAD
GBP/CAD current rate = 1.6263
1.6263 x 1.00%(.01) = 162 pips of movement
162 ...
Anatomy of the Heatmap
Price Rising = Green Bar
Price Rising = % Rising
Price Drop = Red Bar
Price Drop = % Drop
Parallel and Inverse
The only thing that DRIVES price and
price movement
EUR Strong CAD Weak
/
CAD STRONG EUR WEAK
/
/
EUR and CAD are BOTH Strong or BOTH Weak
JPY Strong on All Pairs
JPY Strong on All Pairs
Slingshots
Slingshot GBP/AUD
Mixed Signals
Simply don’t trade!!
The Forex Heatmap is
a GO
or NO Go indicator.
Heatmap Supplemental Trades
Point you to additional trading opportunities in the same P&I
group of pairs that you may have...
Heatmap Supplemental Trades
Don’t Fall into the trap of only trading
Heatmap Signals!!!
Use it for what it was designed fo...
Heatmap Scenarios
The GBP/JPY is consolidating and starts a fresh
movement, but only the GBP is strong, do you take the
tr...
Heatmap Scenarios
Some news comes out and a price alarm hits, you see a
strong EUR and the EUR/JPY has a fresh moving aver...
Heatmap Scenarios
The EUR/CHF is consolidating but in a strong
downtrend, the D1 and W1 timeframes are separated
with no s...
Heatmap Scenarios
You check the heatmap in the main session and the
EUR/CAD is a slingshot with EUR strong and CAD weak.
Y...
Heatmap Scenarios
The AUD/JPY starts to move in the Asian session and
moves 225 pips overnight, do you buy it in the main
...
Heatmap Scenarios
If the Heatmap gives you an unexpected or
supplemental trade in the main session that is a
slingshot loo...
Heatmap Scenarios
You have a fresh or developing intermediate uptrend
(D1) on the USD/JPY with some very minor resistance
...
Money Management
Very important IF you need it.
Do NOT need it if - The forex trading system you are using does not
work a...
Money Management
Very important IF you need it.
NEED IT - If the forex system you are using works and
you are using the sy...
Good Money Management
•Having a system that works
•Paper Trading (Demo) - Not as exciting as losing real money
•Adjusting ...
Knowledge Reduces EGO
If You Do Not Know?
Do NOT Trade
with real
money!!
Manage an Entry
1. Placement of your initial stop order
2. Moving your stop order up to breakeven
3. Closing out or scalin...
Manage an Entry
1. Placement of your initial stop order.
20-40 Pips
OR
Lows or Highs on smaller timeframes
Initial Guideli...
Manage an Entry
1. Placement of your initial stop order.
20-40 Pips
OR
Lows or Highs on smaller timeframes
Initial Guideli...
Manage an Entry
2. Moving your stop order up to breakeven
•Time
•Time of Day
•Price Alarms
•Set pip amount
Manage an Entry
3. Closing out or scaling our profitable lots as the trade proceeds into
profitability.
Profit Management
Profit Management Rule of Thumb
Profit Management Rule of Thumb
Close out half of your profitable lots.
Letting the rest of your lots ride to see
there th...
Money Management
Money Management Ratio
Minimum of +2:1 ( can reach +20:1)
Calculated in planning process
Scalpers are -3:1
Consolidation Cycles
Learn to recognize the most common types of
consolidation and retracement cycles that occur
Helps wit...
Consolidation Cycles
If a currency pair is consolidating or resting (moving sideways)
for a good period of time, then move...
Profit Taking Based on Time of Day
If you choose to close out a portion of your lots after a
strong move you can do so at ...
Profit Taking Based on TRENDS
If you buy the EUR/JPY, for example, and all of JPY pairs are trending
upward on the D1 time...
Profit Taking Based S&R
If you spot the next major resistance and the pair you
bought is approaching this price or stallin...
Profit Taking P&I
If P & I is strong in whole group, Hold Longer.
If P & I is changing, Take profit.
Plus
Profit Taking P&I
Use the Heatmap??
Tells you to get in trade but can also tell you when to
exit.
Also,
After a couple day...
Help Avoid Stop Outs
Veteran Traders only!
After you use the “rule of thumb” to take profits,
Put your stop on remaining l...
Other Profit Taking Techniques
Price alarms and Partial Limit orders
Trend Trader
Ultimate goal as a trend trader is to trade the larger time frames like
D1 and W1 and just ride the major tre...
Trend Trader
Trend Trader
You can tell yourself you want to be a trend trader
or you can actually do it with micro lots and prove
that ...
In Order To Trade The Spot Forex
You need to know the direction of the Trend.
You need to have a valid entry point
Detroit Forex Seminar 8-31-13
Detroit Forex Seminar 8-31-13
Detroit Forex Seminar 8-31-13
Detroit Forex Seminar 8-31-13
Detroit Forex Seminar 8-31-13
Detroit Forex Seminar 8-31-13
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Detroit Forex Seminar 8-31-13

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Powerpoint used at the 8-31-13 Forexealywarning.com Seminar. Topics Include Resources: 3 Rules,Forex Basics, Parallel and inverse, Trends, Support and Resistance, Multiple Timeframe Analysis, ENTRY Management, Profit Taking Money Management, Process of becoming a Forex Trader.

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  • Quiz
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  • Rick Teach FAS on White board
  • Rick Teach FAS on White board
  • Detroit Forex Seminar 8-31-13

    1. 1. Forex Early Warning The low Cost Leader in Forex Trade Alerts Copyright © 2013 MT2 Enterprises, LLC. All right reserved.
    2. 2. Agenda Resources 3 Rules Forex Basics Parallel and inverse Trends Support and Resistance Multiple Timeframe Analysis ENTRY Management Profit Taking Money Management Process of becoming a Forex Trader
    3. 3. Reference Materials All online at Forexearlywarning.com
    4. 4. Reference Materials 35 Lessons
    5. 5. In Order To Trade The Spot Forex You need to know the direction of the Trend. You need to have a valid entry point
    6. 6. 3 Simple Rules There are some very Simple things a forex trader can try to understand that will increase their trading accuracy from the more common 90% failure rate to as high as 90% positive trading accuracy in the matter of a few weeks. Reference: Lesson 18
    7. 7. Currency Transaction Basics Exchanging currency at the Border
    8. 8. Currency Kiosk Trade 10,000 USD for CAD at exchange rate of 1.05 Don’t spend the money. If exchange rate moves down to 1.04. Exchange CAD back for USD now have 10,100 Same as Selling the USD/CAD Online
    9. 9. Currency Kiosk Trade 10,000 USD for CAD at exchange rate of 1.05 Don’t spend the money. If exchange rate moves up to 1.06. Exchange CAD back for USD now have 9,900 Same as Selling the USD/CAD Online
    10. 10. Currency Pairs If you Buy a currency pair online you want it to go up If you Sell a currency pair online you want it to go down
    11. 11. Cash Transaction SAME AS Online Transaction Cash is Unleveraged 1:1 Online 50:1 Leverage+
    12. 12. Anatomy of the Transaction Exchange rate shows how many USD needed to Buy or Sell 1 EUR
    13. 13. Anatomy of the Transaction PIP “Price Interest Point”= .0001 Yen based = .01 PIP Value is based on 3 Factors 1) The currency pair 2) Size of the trade 3) The exchange rate
    14. 14. Anatomy of the Transaction Calculating PIP Value 1)EUR/USD 2)10,000 3)1.4600 1) 10,000 x .0001 = 1 USD per PIP 2) 100 pip movement would = 1x100= $100 USD profit or Loss Conversion to USD Not required since USD is in pair
    15. 15. Anatomy of the Transaction Calculating PIP Value 1)GBP/NZD 2)20,000 3)1.9945 1) 20,000 x .0001 = 2 NZD per PIP 2) 2/1.9945 = 1.00 GBP per PIP 3) 100 PIP movement = 100 x1.00 = $100 GBP profit/loss Conversion to USD $100 x current GBP/USD rate=Profit/loss in USD 1.5567 x 100 = $157.65 USD profit/loss
    16. 16. Anatomy of the Transaction Calculating PIP Value 1)EUR/GBP 2)20,000 3).8580 1) 20,000 x .0001 = 2 GBP per PIP 2) 2/.8580 = 2.33 EUR per PIP 3) 100 PIP movement = 100 x2.33 = 233 EUR profit/loss Conversion to USD 233 x current EUR/USD rate=Profit/Loss in USD 233x1.3364=$311.38 USD
    17. 17. Anatomy of the Transaction Calculating PIP Value 1)GBP/JPY 2)350,000 3)152.60 1) 350,000 x .01 = 3500 JPY per PIP 2) 3500/152.60= 22.94 GBP per PIP 3) 100 PIP movement = 100 x22.94 = 2,240 GBP profit/loss Conversion to USD 2,240 x current GBP/USD rate=Profit in USD 2,240x1.5567=$3,487.01
    18. 18. How Do Currency Pairs Move? Currency Pairs ONLY move up or down based on?? Individual currency strength & weakness
    19. 19. Basics CAD Weak USD Strong Buy the USD/CAD
    20. 20. Basics CAD Strong USD Weak Sell the USD/CAD
    21. 21. Strength and Weakness The individual currency pushing is STRONG The Individual currency being pushed is WEAK
    22. 22. Time to Learn Parallel and Inverse – 2 Weeks Support and Resistance – 3 months (If full time) MTFA – 1 year
    23. 23. Parallel and Inverse USED 2 WAYS At Analysis & At Entry
    24. 24. 8 Individual Currencies USD US Dollar CHF Swiss Franc EUR Euro GBP British Pound JPY Japanese Yen CAD Canadian Dollar AUD Australian Dollar NZD New Zealand Dollar
    25. 25. • GBP is Weak • CHF is strong • Sell the GBP/CHF
    26. 26. Parallel An Inverse Analysis Reference: Lesson 8 Forex Article Parallel and inverse analysis is the study of how individual currencies influence the movements of currency pairs.
    27. 27. Individual Currency = The Country Currency Pair = the Transaction Individual Currency IS NOT a Pair
    28. 28. 8 Individual Currencies USD US Dollar CHF Swiss Franc EUR Euro GBP British Pound JPY Japanese Yen CAD Canadian Dollar AUD Australian Dollar NZD New Zealand Dollar
    29. 29. 28 Pairs USD US Dollar CHF Swiss Franc EUR Euro GBP British Pound JPY Japanese Yen CAD Canadian Dollar AUD Australian Dollar NZD New Zealand USD US Dollar CHF Swiss Franc EUR Euro GBP British Pound JPY Japanese Yen CAD Canadian Dollar AUD Australian Dollar NZD New Zealand
    30. 30. Currency Pairs Should Be Grouped As Individual Currencies EUR/USD GBP/USD AUD/USD NZD/USD USD/CAD USD/CHF USD/JPY EUR/USD EUR/JPY EUR/CHF EUR/GBP EUR/CAD EUR/NZD EUR/AUD EUR/JPY GBP/JPY AUD/JPY NZD/JPY CHF/JPY USD/JPY CAD/JPY For Analysis USD JPYEUR GBP/USD GBP/JPY GBP/CHF EUR/GBP GBP/CAD GBP/NZD GBP/AUD GBP
    31. 31. The Market Is The Indicator Pairs move only by Individual Currency Strength and Weakness Parallel and Inverse analysis is the only way to measure Strength and Weakness
    32. 32. Technical Indicators Do Not Measure Individual Currency Strength and Weakness Why are they on charting platforms?
    33. 33. Technical Indicators
    34. 34. Strength and Weakness Examples The individual currency pushing is STRONG The Individual currency being pushed is WEAK
    35. 35. Strong USD Strong EUR
    36. 36. Not Strong or Weak Strong Vs Strong
    37. 37. Weak VS Weak
    38. 38. Slingshot
    39. 39. Slingshots Your best and safest trade Fastest movement in a direction
    40. 40. Groups of Individual Currencies EUR/USD GBP/USD AUD/USD NZD/USD USD/CAD USD/CHF USD/JPY EUR/USD EUR/JPY EUR/CHF EUR/GBP EUR/CAD EUR/NZD EUR/AUD EUR/JPY GBP/JPY AUD/JPY NZD/JPY CHF/JPY USD/JPY CAD/JPY For Analysis USD JPYEUR GBP/USD GBP/JPY GBP/CHF EUR/GBP GBP/CAD GBP/NZD GBP/AUD GBP
    41. 41. / / / EUR Weak on All Pairs / / / /
    42. 42. Strong on All Pairs
    43. 43. Slingshot
    44. 44. On the Charts EUR/JPY GBP/JPY AUD/JPY NZD/JPY CHF/JPY USD/JPY CAD/JPY
    45. 45. Drivers Changing Strength and Weakness DRIVES the Market. Change in DRIVERS is a change in which individual currency is strong and which is weak
    46. 46. When Do The Drivers Switch?? During the Intraday consolidations Usually after the Main session Sometime News events
    47. 47. When Do drivers Lesson 14 - Best Times To Trade The Forex Market
    48. 48. When do drivers change?
    49. 49. Separate The Pairs NOT EUR/USD EUR USD Always think of them Separate!!
    50. 50. Parallel and inverse If you can identify what parallel and/or inverse group is DRIVING the market, you can successfully trade almost everyday there is movement.
    51. 51. Trend Definition: Trend on a currency pair is a long series of movements and market dynamics on both sides of the pair that favors movement in one direction.
    52. 52. Trends
    53. 53. Trends
    54. 54. Trends / / / /
    55. 55. EUR/JPY Oscillation
    56. 56. Choppy /
    57. 57. Choppy Mine Mine Mine!!
    58. 58. Free Trend Indicators F.A.S. – Fresh Cross. Angle. Separation. Fresh trends = Lower Risk and Higher Risk Reward Ratio Over extended trend = Higher Risk and Lower Risk Reward Ratio
    59. 59. Trend Cycles and Fresh Crosses
    60. 60. Free Trend Indicators Strong Uptrend Strong Downtrend
    61. 61. Trends
    62. 62. Trends
    63. 63. Trends
    64. 64. No Trend
    65. 65. No Trend
    66. 66. Price Chart Without Trend Indicators You can see direction with just price
    67. 67. Price Chart With Trend Indicators
    68. 68. Price Chart With Trend Indicators Trend indicator point to a direction
    69. 69. Noisy price chart
    70. 70. Same Chart – No Noise
    71. 71. Noise VS Clear Direction Noise Direction
    72. 72. Support and Resistance Lesson 10 - Forex Support and Resistance and Price Alarms Article 2 - Effective Use of Price Alarms The forex market is a support and resistance market. All trends start and end at support and resistance. All reversals and retracements start at support and resistance.
    73. 73. Support and Resistance Support A support level is a price level where the price tends to find support as it is going down. This means the price is more likely to "bounce" off this level rather than break through it. However, once the price has passed this level, by an amount exceeding some noise, it is likely to continue dropping until it finds another support level. Resistance A resistance level is the opposite of a support level. It is where the price tends to find resistance as it is going up. This means the price is more likely to "bounce" off this level rather than break through it. However, once the price has passed this level, by an amount exceeding some noise, it is likely that it will continue rising until it finds another resistance level. Source: wikipedia
    74. 74. Support and Resistance Entry Points Targets Stop levels
    75. 75. Support and Resistance
    76. 76. Support and Resistance
    77. 77. Short term Support and Resistance M5, M15, H1 Timeframes (Intraday S&R)
    78. 78. Long Term Support and Resistance H4, D1, W1, MN Timeframes
    79. 79. Support and Resistance The Difference between Long Term and Short term S&R is you profit potential or “Room to Move”. How much room to move between Long and Short term?? My personal rule is it must be AT LEAST 100 pips! FEW is around 100-125 MINIMUM
    80. 80. Support and Resistance What if you do not have 100 pips?? Road Block! DO NOT consider the trade! Move on and find another trade OR Wait till that level is cleared.
    81. 81. Support and Resistance Wait until the level is cleared. Temporary Road Block
    82. 82. Support and Resistance Visual Examples of Support and Resistance http://www.flickr.com/photos/forexearlywarning/
    83. 83. Support and Resistance Entry = Short term Support & Resistance Profit Target = Long term Support & Resistance Stop Loss = Short term S&R for Beginners = Longer term S&R for Experienced Veterans(Bigger Stops) http://www.forexearlywarning.com/forex-lessons/forex-profit-taking
    84. 84. Support and Resistance S&R Numbers are REPETATIVE on ranging and oscillating pairs
    85. 85. Support and Resistance Trend Indicators converging: an indication of a currency pair stalling at support or resistance
    86. 86. Price alarms Used to monitor Short term S&R for possible entry
    87. 87. Your Job Yes , work is involved Know the condition of the market by examining charts systematically to assist in planning and entries
    88. 88. MTFA- Multiple Time Frame Analysis Lesson 11 - Multiple Time Frame Analysis of The Spot Forex Article 4 - Multiple Time Frame Analysis Multiple time frame analysis (MTFA) is the inspection of very basic forex trend indicators and forex charts, starting with the largest trends and time frames, and working backwards down through successively smaller time frames to see how the smaller time frames and trends feed the larger time frames.
    89. 89. MTFA- Multiple Time Frame Analysis Lesson 11 - Multiple Time Frame Analysis of The Spot Forex Article 4 - Multiple Time Frame Analysis When the smaller time frames are in agreement with the larger trends you can enter a spot forex trade in the direction of the trend with very good safety. If no trend exists on a particular currency pair the smaller time frames and trends will, at some point, build an uptrend or downtrend.
    90. 90. MTFA- Multiple Time Frame Analysis Simply put: You are looking for the BEST and SAFEST direction to trade a currency pair
    91. 91. MTFA Timeframes W1- Weekly Long term Trend D1 – Daily Intermediate term Trend H4 – 4 hourly Short Term Trend Main Direction Timeframes
    92. 92. MTFA – What to observe Is it Trending or Oscillating? Is it Choppy Ranging? How FRESH or OLD are the Trends?
    93. 93. MTFA – What to observe Is it Trending or Oscillating? This is your Direction Is it Choppy Ranging? This means don’t trade it! How FRESH or OLD are the Trends? This is your assessment of RISK
    94. 94. MTFA – What to observe Is it Trending or Oscillating? The higher time frames trends and the direction of the major trend always overrule the lower time frames. What is the Largest time frame with Trend??
    95. 95. MTFA – What to observe “When the smaller time frames are in agreement with the larger trends you can enter a spot forex trade in the direction of the trend with very good safety.” New trends in the smaller time frames enable us to enter the trends in the larger time frames if a currency pair is trending.
    96. 96. MTFA – What to observe Parallel and Inverse Are all or most of the pairs in a group of 7 going the same way or doing the same thing???? Important!!
    97. 97. MTFA- Smaller Timeframes If you have a Large trend like W1 you could wait for a fresh trend on D1 or H4 back in the direction of the W1. Direction. Direction. Direction. W1 D1 H4 H1 M30 M15 What is a smaller time frame? Depends on the trend or oscillation you are trading. If you are trading the H4 trend, You could wait for a fresh H1 trend to get in H4 trend
    98. 98. MTFA for Parallel & Inverse http://finance.groups.yahoo.com/group/4xtrendtraders/ FEW Analysis Heatmap
    99. 99. MTFA for Parallel & Inverse http://finance.groups.yahoo.com/group/4xtrendtraders/ FEW Analysis Heatmap
    100. 100. MTFA for Parallel & Inverse http://finance.groups.yahoo.com/group/4xtrendtraders/ FEW Analysis Heatmap
    101. 101. MTFA for Parallel & Inverse http://finance.groups.yahoo.com/group/4xtrendtraders/ FEW Analysis Heatmap JPY Weak AUD Weak CAD Mixed
    102. 102. What Do I Do Now? I have analyzed currency pairs using MTFA. I found a currency pair in a strong uptrend. Parallel & Inverse verifies the Direction. The difference between short term and long term resistance is 300 pips. I have a price alarm set at short term resistance.
    103. 103. How Do I Enter Trades? You enter trades with the Forex Heatmap® In the MAIN trading session
    104. 104. The Forex Heatmap® Visual map of Parallel and Inverse at entry
    105. 105. The Forex Heatmap® Main Goal at the beginning is to Learn to: Master it!
    106. 106. When Do I Enter Trades?
    107. 107. How Do I Enter Trades? The Forex Heatmap® Monitors 28 Pairs in Real Time Measures Movement of Currency Strength and Weakness Lesson 15 - The Forex Heatmap
    108. 108. What the Heatmap Does NOT Do Does NOT know the direction of or if a Trend exists Does NOT know strength or quality of the Trend Does NOT know if the movement has just started Does NOT know if the pair moved hundreds of pips already, Does NOT plan a trade for you. Does NOT know where support or resistance is. Does NOT know if news drivers are coming out.
    109. 109. What the Heatmap Does Do Tells you which individual currencies are strong or weak or mixed. Point you to additional trading opportunities in the same P&I group of pairs that you may have not considered during the planning process.
    110. 110. Anatomy of the Heatmap Arranged by 8 individual Currencies USD CHF EUR JPY GBP AUD CAD NZD All pairs are represented twice
    111. 111. Strong on All Pairs
    112. 112. Anatomy of the Heatmap Separated into 2 Sessions
    113. 113. Anatomy of the Heatmap Current time in GMT NEXT reset to zero (countdown timer) Refreshes every 30 seconds
    114. 114. Anatomy of the Heatmap Change in price shown in percentage Visual Bar showing price change direction
    115. 115. % Change and Bar Graph Move Together
    116. 116. Highest % UP and Down Biggest mover UP (over.25) Gets green Arrow Biggest mover DOWN(over.25) Gets red Arrow
    117. 117. Anatomy of the Heatmap % change is based on the currency pair price movement 0.25% move up EUR/USD current rate = 1.3330 1.3330 x 0.25% = 33 pips of movement 33 pip move on EUR/USD 33 / 1.3330 = 0.25%
    118. 118. Anatomy of the Heatmap 1.00% move on GBP/CAD GBP/CAD current rate = 1.6263 1.6263 x 1.00%(.01) = 162 pips of movement 162 pip move on GBP/CAD 162 / 1.6263 = 1.00%
    119. 119. Anatomy of the Heatmap Price Rising = Green Bar Price Rising = % Rising Price Drop = Red Bar Price Drop = % Drop
    120. 120. Parallel and Inverse The only thing that DRIVES price and price movement
    121. 121. EUR Strong CAD Weak /
    122. 122. CAD STRONG EUR WEAK /
    123. 123. / EUR and CAD are BOTH Strong or BOTH Weak
    124. 124. JPY Strong on All Pairs
    125. 125. JPY Strong on All Pairs
    126. 126. Slingshots
    127. 127. Slingshot GBP/AUD
    128. 128. Mixed Signals Simply don’t trade!! The Forex Heatmap is a GO or NO Go indicator.
    129. 129. Heatmap Supplemental Trades Point you to additional trading opportunities in the same P&I group of pairs that you may have not considered during the planning process. Points you towards that you may not have anticipated based on the trend analysis and trade planning process. (Warning!)
    130. 130. Heatmap Supplemental Trades Don’t Fall into the trap of only trading Heatmap Signals!!! Use it for what it was designed for.
    131. 131. Heatmap Scenarios The GBP/JPY is consolidating and starts a fresh movement, but only the GBP is strong, do you take the trade?? Generally speaking yes because it’s a fresh move starting after a consolidation, check the charts for next resistance point.
    132. 132. Heatmap Scenarios Some news comes out and a price alarm hits, you see a strong EUR and the EUR/JPY has a fresh moving average cross trend on the H4 chart, do you take the trade?? Yes, if there is no nearby resistance.
    133. 133. Heatmap Scenarios The EUR/CHF is consolidating but in a strong downtrend, the D1 and W1 timeframes are separated with no support, a fresh down cycle starts through support, the EUR is weak and the CHF is neutral. Do you enter the trade?? Yes, the trend is strong and the pair was consolidating so likely no slingshot is required.
    134. 134. Heatmap Scenarios You check the heatmap in the main session and the EUR/CAD is a slingshot with EUR strong and CAD weak. You check the H4 and it is separated with no resistance. Do you take the trade?? Yes, most definitely.
    135. 135. Heatmap Scenarios The AUD/JPY starts to move in the Asian session and moves 225 pips overnight, do you buy it in the main session if the heatmap signals are good?? No, definitely not, too deep into the move, it has been moving for 12 hours, you missed it.
    136. 136. Heatmap Scenarios If the Heatmap gives you an unexpected or supplemental trade in the main session that is a slingshot look straight at H4 chart, if the trend is good and there is no support or resistance, would you trade it?? Yes. This is a real timesaver because you look at one timeframe to assist with your trade decision.
    137. 137. Heatmap Scenarios You have a fresh or developing intermediate uptrend (D1) on the USD/JPY with some very minor resistance nearby. In the main session the USD is strong but the JPY is neutral, do you take the trade. Yes, you have a fresh trend on a larger time frame.
    138. 138. Money Management Very important IF you need it. Do NOT need it if - The forex trading system you are using does not work and consistently give you positive pips with demo trades Do NOT need it if - The forex system you are using works at making pips but you are not applying the system correctly or as designed and using it your own way then you will not consistently see positive pips Loss Management – Keeping you from losing your money slower.
    139. 139. Money Management Very important IF you need it. NEED IT - If the forex system you are using works and you are using the system correctly you will consistently see positive pips. Need profit management. Profit Management - manage the profits and the occasional small losses or break even stop outs
    140. 140. Good Money Management •Having a system that works •Paper Trading (Demo) - Not as exciting as losing real money •Adjusting your risk to fit market conditions •Gaining Knowledge - Not Gambling - DTH
    141. 141. Knowledge Reduces EGO
    142. 142. If You Do Not Know? Do NOT Trade with real money!!
    143. 143. Manage an Entry 1. Placement of your initial stop order 2. Moving your stop order up to breakeven 3. Closing out or scaling our profitable lots as the trade proceeds into profitability. Lesson 29 Part 1 - Profit Taking Techniques Lesson 29 Part 2 - Profit Taking Techniques Lesson 7 - Forex Trading Tips
    144. 144. Manage an Entry 1. Placement of your initial stop order. 20-40 Pips OR Lows or Highs on smaller timeframes Initial Guidelines
    145. 145. Manage an Entry 1. Placement of your initial stop order. 20-40 Pips OR Lows or Highs on smaller timeframes Initial Guidelines
    146. 146. Manage an Entry 2. Moving your stop order up to breakeven •Time •Time of Day •Price Alarms •Set pip amount
    147. 147. Manage an Entry 3. Closing out or scaling our profitable lots as the trade proceeds into profitability. Profit Management
    148. 148. Profit Management Rule of Thumb
    149. 149. Profit Management Rule of Thumb Close out half of your profitable lots. Letting the rest of your lots ride to see there the trend takes the pair.
    150. 150. Money Management Money Management Ratio Minimum of +2:1 ( can reach +20:1) Calculated in planning process Scalpers are -3:1
    151. 151. Consolidation Cycles Learn to recognize the most common types of consolidation and retracement cycles that occur Helps with stop placement Helps to hold on to trends longer
    152. 152. Consolidation Cycles If a currency pair is consolidating or resting (moving sideways) for a good period of time, then movement starts, it tends to keep moving. Hold on to trends longer
    153. 153. Profit Taking Based on Time of Day If you choose to close out a portion of your lots after a strong move you can do so at the end of the USD session in a time window of 11:00 - 12:00 noon EST plus or minus 30 minutes.
    154. 154. Profit Taking Based on TRENDS If you buy the EUR/JPY, for example, and all of JPY pairs are trending upward on the D1 time frame, then it is best to hold onto your EUR/JPY trade. Why would you exit?? Incorporating the trend into your thinking as to how to exit a profitable trade and using the D1 time frame for these decisions to hold. If you drop down to the H4 time frame you are looking to swing trade only for 2-4 days. Plus
    155. 155. Profit Taking Based S&R If you spot the next major resistance and the pair you bought is approaching this price or stalling near this price, it would be wise to scale out additional lots or possibly all of your lots. Plus
    156. 156. Profit Taking P&I If P & I is strong in whole group, Hold Longer. If P & I is changing, Take profit. Plus
    157. 157. Profit Taking P&I Use the Heatmap?? Tells you to get in trade but can also tell you when to exit. Also, After a couple days if the Heatmap has slingshot the opposite direction. Take Profit
    158. 158. Help Avoid Stop Outs Veteran Traders only! After you use the “rule of thumb” to take profits, Put your stop on remaining lots equal to the amount of profit taken. Ref:Lesson 29 Part 2 - Profit Taking Techniques Deeper stops “Guaranteed no-loss method of running deeper stops”
    159. 159. Other Profit Taking Techniques Price alarms and Partial Limit orders
    160. 160. Trend Trader Ultimate goal as a trend trader is to trade the larger time frames like D1 and W1 and just ride the major trends of the market, when those trends present themselves. if the market is not trending you must shift your profit taking to shorter term moves You cannot control the market only your own analysis and behavior towards the current market condition and what is presented to you today.
    161. 161. Trend Trader
    162. 162. Trend Trader You can tell yourself you want to be a trend trader or you can actually do it with micro lots and prove that you are.
    163. 163. In Order To Trade The Spot Forex You need to know the direction of the Trend. You need to have a valid entry point
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