Forex_Trading_To_Riches_Bonus_Edition.pdf

Forex Trading To Riche$ Bonus Edition
Forex Trading To Riche$
Bonus Edition
By Daniel S.
ForexTradingPower.com
Disclaimer: No part of this book may be used or reproduced in any manner
whatsoever without written permission from Forex Trading Power. All information
on this ebook is for educational purposes only and is not intended to provide
financial advise. Any statements about profits or income, expressed or implied,
does not represent a guarantee. Your actual trading may result in losses as no
trading system is guaranteed. You accept full responsibilities for your actions,
trades, profit or loss, and agree to hold Forex Trading Power and any authorized
distributors of this information harmless in any and all ways.
© 2009 ForexTradingPower.com

Table of Contents
Introduction......................................................................................... 3
Pips Mover Pro
™
Trading Rules.......................................................... 5
NEW TREND................................................................................... 6
CONTINUOUS TREND................................................................. 11
200 EMA/WEEKLY PIVOT BARRIER........................................... 15
Conclusion........................................................................................ 21

Introduction
All these while, I have been posting examples on trades and analysis
based on my original trading system, the Pips Mover™. Most of
Forex Trading Power members are happy that the “Forex Trading To
Riches” ebook I provided was useful and beneficial to them and most
importantly, they find my forex trading system easy to use and it can
make them good profits.
The only thing about the system is that it is very conservative and
does not generate many forex trading signals. I also have received
many feedbacks asking for more trading signals and that’s why I
decided to introduce my advanced trading system called the Pips
Mover Pro™ in this bonus edition to the highly popular “Forex Trading
To Riches”.
Pips Mover Pro™ has some improved parameters over the original
Pips Mover™ trading system. Some modifications were made to the
parameters for MACD, Stochastic, and additional trading rules which
can allow for more trading signals.
Despite the trading system can generate more trading signals, I did
not ignore the fact that it may cause more whipsaws. Although the
advanced system still can filter out choppy forex market, but you will
still need to trade with care and strictly follow the trading rules. This
system can be used by more experienced traders as they will know
what the market conditions are. For beginners, it’s better that you
master the original Pips Mover™ trading system before using the
more advanced Pips Mover Pro™.
So here’s the Pips Mover Pro™ trading system. This system is only
available free to Forex Trading Power members and not for the public.
This is because the Forex Trading To Riches Bonus Edition is
created solely for members like you, to thank you for your kind words,
support and encouragement to what I’m doing, giving me feedbacks
and are serious about improving your forex trading skills.
To Your Forex Trading Success,
Daniel Su
CEO, ForexTradingPower.com

Advanced Trading System: PIPS MOVER PRO
™
This is a day trading system which is the modified version from the
previous Pips Mover™ Trading System, and it also uses half-hourly
timeframe. This is suitable for people who have time to monitor but
yet no need to stay in front of the computer for the whole day. Once
you have opened a trade, you may need to monitor it for every 1 hour
to adjust your profit target and stop loss. Those people who are
working can also use this strategy if they can monitor the trades in
their office.
Since there are many traders who said that there are very few trading
signals for them to trade, therefore I came out with this strategy which
has more trading signals, but it’s more for advanced traders because
more signals mean more whipsaws. This system has two types of
strategies, ‘New Trend’ and ‘Continuous Trend’. The ‘New Trend’
strategy is almost the same as the Pips Mover™. For the
‘Continuous’ Trend, we can find more opportunities to trade when the
trend has already established.
I can expect trading signals coming in at least a few times per week.
Sometimes, you can even find trading opportunities everyday, when
the forex market is very trendy. With this strategy, I have seen good
results for EUR/USD, GBP/USD, EUR/JPY, USD/CHF and AUD/USD.
This strategy is used by me for generating intraday income, which
means that I usually open and close trade on the same trading day.
The profits sometimes can be substantial and I enjoy using this
strategy because I’m a full time trader.
Here are the parameters of my Pips Mover™ Pro Trading System:
Parameters:
1. 30 Minutes (M30) Chart
2. Exponential Moving Average (EMA) 6
5. Stochastic 8,3,3. Levels at 20 and 80.
6. Moving Average Convergence Divergence (MACD) 8,26,3

Pips Mover Pro
™
Trading Rules
Checklist before Taking In Trading Signals (BUY OR SELL):
1. Forex Factory – Do not trade 2 to 3 hours before medium and
high impact news are released. Go to http://www.forexfactory.com
to check for news releases.
2. Yahoo Finance – http://finance.yahoo.com/intlindices?e=asia
If you are trading USD/JPY, EUR/JPY and GBP/JPY, check the
indexes to have an idea on how bearish or bullish the stock market
is. The 3 pairs above have co-relation to the stock market.
3. Sessions To Trade – Asian Session (2300 GMT to 0300 GMT) –
trade only AUD/USD, USD/JPY. European Session (0700 GMT to
1000 GMT) – all pairs. U.S Session (1200 GMT to 1600 GMT) – all
pairs. These are the sessions where there are good volatility and
ranges.
4. Trendiness – The chart must look trendy before you start to look
at the trading signals.
5. 50 Pips Rule – Do not trade when there is a barrier in front which
is less than 50 pips between the current price and all kinds of
levels, be it Daily Pivot Point, Weekly Pivot level or 200 EMA. This
is to prevent from hitting the potential support and resistance
levels.
6. 4-Hourly (4H) Chart – Switch to 4H chart to see if the Stochastic is
pointing at the same direction as the half-hourly chart (which you
are trading). This is to filter out whipsaws.
7. Look For Indicators – If those indicators are looking flat, try not to
trade because it means that the price is not going any direction.
8. 200 EMA – If you want lower risk, you should trade in the direction
of the 200 EMA. But if there is a trading signal which is against the
direction of 200 EMA, you are taking more risk and therefore should
not trade if the price is less than 50 pips away from 200 EMA.

NEW TREND
The following are the sequence to entering a BUY trade based on
‘New Trend’ signals:
1. EMA 6 crosses up EMA 62.
2. MACD indicates an uptrend (above the 0 level).
3. The current price is most preferably to be above the 200 EMA and
Weekly Pivot.
4. Stochastic must not be crossed for more than 3 candles (1 candle
= 30 minutes).
5. Switch to 4H chart to confirm the Stochastic has crossed up and
the direction is pointing up also.
6. Buy as close to the 6 EMA as possible, preferably less than 15
pips away from the current price. Do not enter more than 15 pips
away from the current price.
7. Place a stop loss of around 30 to 35 pips.
For profit target, there are 2 ways.
1) You can place it at the Daily Pivot levels (S1, S2, R1, R2 etc),
Weekly Pivot levels or other levels that is visible.
2) OR By Risk to Reward ratio: if you risk 30 pips, you should
target around 60 pips of profit, which means a healthy Risk To
Reward ratio of 1:2.
8. Shift the stop loss to the entry price of the trade when you have at
least profited 30 pips.
Let us look at an example of identifying and opening a ‘New Trend’
BUY trade.

Example 1
In the chart above, the trade setup for buying is as follows:
1. EMA 6 crossed up EMA 62, and MACD is above the 0 level, so
indicating an uptrend.
2. The price is above the 200 EMA and Weekly Pivot.
3. Stochastic has not crossed for more than 3 candles.
4. Switch to 4H chart, the Stochastic has crossed up and the direction
is pointing up also.

7. Place a stop loss of around 30 to 35 pips away from the entry price
and set target profit according to your preferences. You may want
to adjust your stop loss as the trade goes with your direction.
For profit target, you may want to set by Risk to Reward ratio
method (risk 30 pips, so target 60 pips or 90 pips profits etc) OR
you can set the Weekly Pivot, S1, S2, R1, R2 etc as your profit
levels.
In this case, the target profit for this trade was set at the R1 level
(1.2608) and the trade was closed when it hit that level.
Let’s assume that you opened the trade at the price of 1.2460 and the
trade was closed when it hit the R1 level at 1.2608. From here, we
can see that this trade earned you around 148 pips.
We have looked at how we can open a buy trade for ‘New Trend’,
now we will see how we can open a sell trade based on the new
trend.
The following are the sequence to entering a SELL trade based on
‘New Trend’ signals:
1. EMA 6 crosses down EMA 62.
2. MACD indicates a downtrend (below the 0 level).
3. The current price is most preferably to be below the 200 EMA and
Weekly Pivot.
4. Stochastic must not be crossed down for more than 3 candles (1
candle = 30 minutes).
5. Switch to 4H chart to confirm the Stochastic has crossed down and
the direction is pointing down also.
6. SELL as close to the 6 EMA as possible, preferably less than 15

Let us look at an example of identifying and opening a ‘New Trend’
SELL trade.
Example 2
In the chart above, the trade setup for selling is as follows:

1. EMA 6 crosses down EMA 62, MACD is below the 0 level,
indicating a new downtrend.
2. The price is below the 200 EMA and Weekly Pivot.
3. Stochastic has not crossed down for more than 3 candles.
4. Switch to 4H chart, the Stochastic has crossed down and the
direction is pointing down also.
7. Place a stop loss of around 35 pips away from the entry price since
this pair is GBP/USD, which is more volatile. Set target profit
according to your preferences. You may want to adjust your stop
loss as the trade goes with your direction.
levels.
In this case, the target profit for this trade was set By Risk to Reward
ratio because the S & R levels of Daily Pivot are out of range. We set
a Risk to Reward ratio of 1: 4. But a reminder here, not every time
this kind of high Risk to Reward ratio can be met.
Let’s assume that you opened the trade at the price of 1.4545. We
have a Risk to Reward ratio of 1:4, so we risk 35 pips, aim for 140
pips profit target. The trade was closed when it hit the price at 1.4405.
From here, we can see that this trade earned you around 140 pips.
We have covered the topics on ‘New Trend’ for BUY and SELL
signals. The next page we are going to start on the methods on
‘Continuous Trend’ for both BUY and SELL signals.

We have looked at how we can open positions for ‘New Trend’, now
we will see how we can open positions based on the existing trend,
which is named ‘Continuous Trend’. This means that we can look
for signals even after 6 EMA has crossed 62 EMA and the trend has
already established.
CONTINUOUS TREND
The following are the sequence to entering a BUY trade based on
‘Continuous Trend’ signals:
1. EMA 6 has already crossed up EMA 62, not a new trend anymore.
2. MACD indicates an uptrend (above the 0 level).
3. The current price is most preferably to be above the 200 EMA and
Weekly Pivot.
4. Stochastic must not be crossed for more than 2 candles (1 candle
= 30 minutes).
5. Switch to 4H chart to confirm the Stochastic has crossed up and
the direction is pointing up also.

Let us look at an example of identifying and opening a ‘Continuous
Trend’ BUY trade.
Example 3
In the chart above, there was a trade setup for buying the currency
pair based on continuous trend:
1. EMA 6 has already crossed up EMA 62 some time ago, the trend
has established. The MACD is above the 0 level and Stochastic
has just crossed up, so indicating a continuous uptrend.
2. The price is above the 200 EMA and Weekly Pivot.
3. Stochastic has not crossed for more than 2 candles.
4. Switch to 4H chart, the Stochastic has crossed up and the direction
is pointing up also.

7. Place a stop loss of around 30 to 35 pips away from the entry price
and set target profit according to your preferences. You may want
to adjust your stop loss as the trade goes with your direction.
levels.
In this case, the target profit for this trade was set at the R1 level
trade was closed when it hit the R1 level at 1.3685. From here, we

Example 4
1. EMA 6 has crossed down EMA 62 long ago, so not a new trend
anymore. MACD is below the 0 level, Stochastic crossed down,
indicating a continuous downtrend.
2. The price is below the 200 EMA and Weekly Pivot.
3. Stochastic has not crossed down for more than 2 candles.
4. Switch to 4H chart, the Stochastic has crossed down and the
direction is pointing down also.
7. Place a stop loss of around 35 pips away from the entry price since
this pair is GBP/USD, which is more volatile. Set target profit

according to your preferences. You may want to adjust your stop
loss as the trade goes with your direction.
levels.
In this case, the target profit for this trade was set at the S1 level
trade was closed when it hit the S1 level at 1.1400. From here, we
Once again, remember that not all the trades can hit the R1, R2, S1,
S2 levels all the time if the levels are too far from the current price. So
if the trend is not strong enough, you may want to take profits using
the risk to reward method.
We have seen how we identify and open trades for ‘New Trend’ and
‘Continuous Trend’. For the next topic, I will show you how you can
buy if all the requirements are met but the current price is below the
200 EMA/Weekly Pivot. Vice versa for selling.
200 EMA/WEEKLY PIVOT BARRIER
The above 4 examples show trades which all the requirements are
met. But below I’m going to show you how you can still trade when
the price is below the 200 EMA and/or Weekly Pivot when buying,
and when price is above them for selling. But remember, this means
you are taking a higher risk as the requirements are not met fully.
Make sure that the price is at least 50 pips away from EMA 200
and/or Weekly Pivot if you want to trade.
Price Is Below 200 EMA/Weekly Pivot When Buying (New Trend)

Example 5
For the above chart, all the requirements for a buy trade are met
except that the price is below 200 EMA instead of being above. The
weekly pivot is not present in this chart. Actually we should not be
opening a trade if the price is not above EMA 200/weekly pivot when
buying. So can we trade here? The answer is YES.
Why? Because like I mentioned earlier, if you wanted to take a higher
risk, you can trade, but make sure that the price is at least 50 pips
away from EMA 200/weekly pivot. So in this case, the difference
between the price and 200 EMA is 148 pips, so the trade is still valid.
If you still do not understand, let me explain further. The 50 pips
comes from the 50 pips that is stated at the beginning of this ebook,
number 5 under the trading rules. Why must there be more than 50
pips before we can trade under such circumstances is because we
need to have a wider cushion and have more space for profit target.

For example, let’s say if the price went 50 pips ahead and met the
200 EMA, then it rebounds and go against your direction. At least you
have already shifted your stop loss to breakeven or more and won’t
incur a loss. But if you still trade when it’s only say 20 pips away from
200 EMA or weekly pivot, then you are placing a huge risk on your
trade because the price may rebound off and hit your stop loss.
For the forex chart above, you will still have enough room for a
healthy risk to reward ratio profit target.
For the next page, we will see how you can also trade with
continuous trend when the price is below 200 EMA/weekly pivot
during buying.

Price Is Below 200 EMA/Weekly Pivot When Buying (Continuous
Trend)
Example 6
For the above forex chart, we can see that this is a continuous trend
signal and all the requirements are met except for the weekly pivot.
The price is above 200 EMA but is below the weekly pivot. So how do
we trade here?
The same rules applies again, ahead of the price must have at least
50 pips clear from the weekly pivot. In this case, there is a difference
of 99 pips (between 1.7730 and 1.7829), so this trade is still valid.
We will now look at selling trades below.
Price Is Above 200 EMA/Weekly Pivot When Selling (New Trend)

Example 7
For the above example, we can see that this is a new trend signal as
6 EMA just crossed down 62 EMA. All the requirements are met
except for the weekly pivot and 200 EMA. The price is above both
indicators this time. So ask yourself…can we sell here?
The answer is Yes because the same rules applies again. We do not
talk about weekly pivot because it’s too far away. Instead, we look at
200 EMA and there is a difference of 75 pips between 200 EMA and
the price, with the minimum requirement of 50 pips, so this trade is
still valid. Anyway, if you traded this, you may have set your target the
S1 level.

Price Is Above 200 EMA/Weekly Pivot When Selling (Continuous
Trend)
Example 8
This is the last example of the Pips Mover Pro trading system and
you should be able to understand it well after you read the whole
ebook.
This is a continuous trend because 6 EMA has crossed 62 EMA long
time ago. In this example, the price is below 200 EMA but above the
weekly pivot. But as the price is away from the weekly pivot for a
hefty 153 pips, we can still sell the trade. An additional info here,
there is a convergence between the S2 level and the weekly pivot,
and the price bounced off after it touched the S2 level. What I’m
trying to say here is that levels which are very close to each other
increases the probability of a resistance or support.

Conclusion
Well, that’s the end of the Forex Trading To Riches Bonus Edition
with the Pips Mover Pro™ trading system and I hope every Forex
Trading Power members can benefit from it.
Keep practicing and follow the rules and you’ll be able to do well one
day. I hope I can serve you better by providing you more resources
and stuffs that can assist you to become a successful trader. That’s
all I have for now. Do remember to drop me a mail at
dan@forextradingpower.com if you have any questions at all, or even
to just to say Hi :)
Good luck to your trading!
Regards,
Daniel Su
CEO, ForexTradingPower.com
http://www.ForexTradingPower.com
P.S. Your feedback are incredibly valuable and important to me. So if
you have any questions or feedback, feel free to email me at
dan@forextradingpower.com and I’ll get back to you personally as
soon as I can.
P.S.S. For more forex trading tips, resources and see my premium
trades, please visit my blog at http://www.forextradingpower.com/blog.
I’m updating it with the latest useful forex trading information almost
everyday. So check it out now!

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