EURO CAD BULLS HAVE THE EDGE WITH STRONG BULL CROWN - macd forex trading system

EURO CAD BULLS HAVE THE EDGE WITH STRONG BULL CROWN ~ macd forex trading system

A Bull Crown Formation has now appeared at the Inner Downtrend Line following the sharp Bearish breakout from the Range Setup. This appears to indicate the start of an Uptrend in the days ahead, despite the predominantly Bearish direction of this currency pair.

From the chart below, we can see that the Breakout that was taking place from the Range Setup on the Daily Chart has now ended with a rally above the Inner Downtrend Line.

DAILY CHART- OVERALL DOWNTREND

Breakouts from Consolidations such as these can include periods of pullbacks that eventually lead to the continuation of the trend. In fact, above the Inner Downtrend Line, a Range Setup has been formed above the Uptrend/Counter Trend Lines. If these are broken bearish with a strong candle, it could lead to the resumption of the overall breakout.

DAILY CHART- RANGE SETUP

However, there are two factors that give the edge to the Bulls and the likelihood of a new Uptrend in the days ahead. The first is that Breakouts from Range Consolidations of this size are generally expected to last a longer time than appears to be happening here. Although the pullbacks are expected, the time that it has now taken in moving sideways is longer than is normal for Breakouts such as these.

DAILY CHART- EXPECTED BREAKOUT DISTANCE

The second factor has to do with the Bull Crown setup that has appeared above the Inner Downtrend Line. Not only is it unusual to have such a long period of indecision with these Breakouts, but it is even more so whenever a strong setup that signals a move in the opposite direction appears.

DAILY CHART- BULL CROWN

Because of these two factors, a breakout above the Resistance of the Range Setup is the more likely scenario. This would first carry us to the Outer Downtrend Line where the pair could encounter some resistance. From here, a break of this barrier could take place to signal even stronger gains for the EURO. This would require another strong signal given the significance of the barrier and that there is always a possibility of the existing trend continuing as long as we are still below this trend line.

DAILY CHART- PROJECTED MOVES

Aggressive traders may be tempted to get into this trade before a breakout signal is provided. This is often done to get in ahead of the market especially if the breakout candle is too large and does not provide a small enough Stop Loss. However, given the frequency of False Breakouts, it is always better to wait for the Daily Chart to signal the direction in order to trade with greater confidence. Stop Losses may be larger but if they are placed at an area that is strong enough to protect the trade, a trader can hold his/her position with greater certainty that profit targets will be hit.

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AUD NZD 200 PIPS BEARSIH OR 150 PIPS BULLISH - quantum forex trading system

AUD NZD 200 PIPS BEARSIH OR 150 PIPS BULLISH ~ quantum forex trading system

Consolidation has been the name of the game in the Currency Market for most of 2014 and the AUD NZD has faithfully played its role in this regard. A large 300- Pip Pennant can now be seen following a nearly 3-year downtrend that started in 2011. Within the next few days, we will see either a continuation of this pattern with a Bearish break down to Support or a Bullish move that starts a new Uptrend towards the major Outer Downtrend Line.

The strong decline in the AUD NZD started from the high of 1,3794 in March 2011 to eventually end at the low of 1,0491 in January 2014. In the process, it created an Inner and Outer Trend Line as the market accelerated in the latter part of the downtrend before ending with the current Pennant formation.

DAILY CHART

This Pennant can be seen more closely on the next chart where a small Range has also been formed at the Resistance.

DAILY CHART

At this point, the currency pair could continue to move within the boundaries of the Pennant. This would require a break of this small Range to start the downtrend that carries us to the Support area at 1,0662.

DAILY CHART

The move could take approximately 6 to 10 days and offer traders between 100-250 Pips in gains. Given that it would start with a break of a small Consolidation, however, the trend could actually move very quickly, reaching that Support target in only 3-4 days.

In the Bullish scenario, a breakout above the Resistance of the Range would start a strong breakout that sees the Aussie rally a few hundred pips heading into September.

DAILY CHART

The first target to be hit would be the Weekly Range (WR) followed  by the Breakout Equivalent (BE) of the Range. This rally could also take fewer than 6 days to hit those price points and give the trader close to 150 Pips in gains. Following this stage, the market is likely to pause once more before continuing much higher to the larger target of the Outer Downtrend Line of the previous trend. 

Breaks of Inner Trend Lines usually lead to moves towards Outer Trend Lines as long as the setups to start these trends are strong enough. Given the size of the current Pennant Consolidation formed over an 8-Month period, it would only be a matter of time before that Outer Downtrend Line is hit.

Bullish or Bearish, stay sharp and patient fellow traders and large profits will be yours once more.

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Duane Shepherd 

(M.Sc. Economics, B.Sc. Management and Economics)

Currency Analyst/Trader

Contact: shepherdduane@gmail.com

Twitter: @WorldWide876

Facebook: DRFXTRADING 

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A method for optimizing parameters - simple forex trading strategies that work

A method for optimizing parameters ~ simple forex trading strategies that work

Most trading systems have a number of parameters embedded, parameters such as the lookback period, the entry and exit thresholds, and so on. Readers of my blog (for e.g., here and here) and my book would know my opinion on parameter optimization: I am no big fan of it. This is because I believe financial time series is too non-stationary to allow one to say what was optimal in the backtest is necessarily optimal in the future. Most traders I know would rather trade a strategy that is insensitive to small changes in parameters, or alternatively, a "parameterless" strategy that is effectively an average of models with different parameters.

That being said, if you can only trade one model with one specific set of parameters, it is rational to ask how one can pick the best (optimal) set of parameters. Many trading models have a good number of parameters, and it is quite onerous to find the optimal values of all these parameters simultaneously. Recently, Ron Schoenberg published an article in the Futures Magazine that details a way to accomplish this with just a tiny amount of computer power.

The key technique that Ron uses is cubic polynomial fit of the P&L surface as a function of the parameters. Ron uses the VIX RSI strategy in Larry Connors book "Short Term Trading Strategies That Work" as an example. This strategy has 5 parameters to be optimized, but Ron only needs to compute the P&L for 62 different sets of parameters, and the whole procedure only takes 58 seconds.

Although Ron has confirmed that most of the parameters that Connors picked are close to optimal, he did find a few surprises: namely, that RSI of period 3 or 4 is significantly more profitable than the 2 that Connors used, at least in the backtest period.

Now, for a true test of this optimization, it would be helpful if Ron performed this optimization withholding some out-of-sample data, and see if these parameters are still optimal in that withheld data set. Since he didnt do that, we need to wait for another year to find out ourselves!

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Josh Brolin on day trading - forex trading system for daily charts

Josh Brolin on day trading ~ forex trading system for daily charts

Actor Josh Brolin ("Milk", "W", "No Country for Old Man") said on Charlie Rose that his trading portfolio had a 57% return this year. His strategy is based on entering on reversal from a trend. Sounds pretty reasonable to me: maybe some of our readers can backtest this.

Below is the full interview, beginning with Sean Penn, then goes on to Gus Van Sant, then finally Josh Brolin mentioned his day-trading at the very end of the 1 hour show.



Interested? He is starting a multi-million dollar hedge fund to manage your money.
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Forex Trading and Risk Return ratio - forex keltner channel trading system

Forex Trading and Risk Return ratio ~ forex keltner channel trading system

by: Andrew Daigle


Forex trading is fast becoming the top method of making money on the internet and plenty of average people are trying their hand at becoming millionaires. For most people, forex trading is a much needed source of a second income, to supplement their current single income from their main profession. However, the true potential to become very wealthy is not tapped by most such investors and they earn mere pennies on the dollar, compared with what they could be earning. While everyone has their own forex currency trading system, this will be in proportion to your risk appetite and will only bring the returns that you strive for.

While there are many ways to invest your money in currency, most people play safe by either investing small amounts or spreading their money very thin across the various currencies they are invested in. This makes for a very small return but practically no risk potential, since the bases are mostly covered so that if one currency depreciates, the other appreciates and the losses are minimal. However, clearly this will never make the forex trader a millionaire.

Life is short, and most forex trading millionaires made their money fast off the forex market. These individuals are generally highly leveraged, because they know that money makes money, and the more money they invest, the greater the risk and the greater the potential reward. Also, betting on unlikely currencies is risky and can have a huge potential upside.

So what exactly will leveraging yourself mean for you? You can start with a portfolio, meaning that you put your investment towards buying a part of the forex trading. Then, you buy shares of the forex trading the world over, depending on what countries appeal to you. The prices of these shares may rise slowly to increase your portfolio, and you are still playing safe. Once your total portfolio value goes over the 5000 dollar mark, you as a forex trader can apply for something known as a console, which now puts you in the position to act as an agent for others. At this point, you can process exchanges for small investors who want to buy and sell currencies through you. For each transaction processed, you will earn a fee of 6% and this can roll into your portfolio, increasing further, making your status as a forex trader more credible.

Other than an unlikely event such as a war or natural calamity, nothing on the forex market will give you a sudden unexpected windfall. Do not expect to become a millionaire over night. You will have to plan and strategize, and most importantly, leverage yourself, to truly make a lot of money. The forex market will generally move like the stock market, in small digits and only when you have plenty of money spread out on the forex market do you stand a chance of making a great deal of profit.

While this type of trading is not for the faint hearted, experience in forex trading will bring some confidence to your forex trading strategy, especially as you learn which systems work for you and which dont. As your level of confidence grows, the process will seem much less daunting. However, it is great to be cautious and be sure of any risks you take. That said, do remember that millionaires are always highly leveraged in the forex market – take calculated risks.
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An additional ETF pair - forex trading technical strategies

An additional ETF pair ~ forex trading technical strategies

Many of you know that there are a number of dependable commodity-related ETF pairs that remain cointegrated ever since I mentioned them in 2006: IGE-EWC, IGE-EEM, IGE-EWA, EWA-EWC, etc. (Their latest zScores are available here to my books readers and to Premium Content subscribers.) A recent visit to a client in South Africa prompted me to add a new one: EWA-EZA.

It is worth noting that for those country ETF pairs that cointegrate, their underlying currency cross-rates are often stationary as well. Now, there are several advantages in trading currency cross rates instead of ETF pairs. When trading a stationary cross rate, you can enter a limit order to enter and exit, but trading pairs of ETFs involve market orders on at least one side. Also, ETFs can sometimes be hard-to-borrow, and their margin requirements are much more onerous than that of currencies. However, the one major disadvantage in trading cross rates is that they are not always available on your brokerage. For example, based on the cointegration of EWA and EZA you would think that trading AUDZAR would be quite profitable. And you would be right, theoretically, except that AUDZAR is not available for trading on Interactive Brokers. If you know of a good Forex brokerage that have many emerging markets cross-rates for trading, especially those of Latin American countries, please let the rest of us know!
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IvyBot Forex Trading Software Review - global forex trading system

IvyBot Forex Trading Software Review ~ global forex trading system

There are so numerous automated forex systems today that have surely aided forex trading. You can now trade forex without having to spend all your time into it; this ease in trading forex wouldnt have been doable if not for the advent of robots. One of the FX trading robots that will aid your forex trading is the Ivybot forex robot; it has some attributes that are peculiar to it. What Are The attributes of Ivybot?

This automated currency trading robot trades 4 currency pairs and utilizes individual expert advisors for each of the 4 currency pair traded. Owing to the high volatility of the currency market, this automated systems expert advisors are generally updated to meet the trend of events in the forex market. Indeed, the forex trading industry has undergone technological alters via the emergence of lots of auto trading systems known as robots or forex advisors and Ivybot is one of them that could be trusted to deliver good result.

The work of an specialist advisor is to instantly place trade on behalf of the trader; they are hand-free trading tools that can operate from any computer all around the globe. These automated systems watches and then places trade for the trader, using certain tactics and parameters that help them to perform mostly rewarding trade while keeping the chances of loss trade notably minimal; this is also how the Ivybot forex robot system functions.

Ivybot expert advisor works with plan and sticks to such plans in order to produce the best results. It runs 24/7. Besides, this forex auto system offers real life proof as well as back tests. A forex robot that shows back test as well as real life proof is a good one to look at. This is why most currency wholesalers have resorted to the use of this expert advisor for their trading.

If theres a time when trading forex has ever been enjoyable, stress-free and more profitable; it is nowadays of auto FX trading and Ivybot has contributed immensely alongside other good auto currency trading systems, in achieving this feat. figure out more about this forex expert advisor.

By Jo Adams
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Introducing Forex Income Boss - stealth forex trading system download

Introducing Forex Income Boss ~ stealth forex trading system download

Hi guys, hows everyones trading results lately?

Im glad to introduce a new Forex trading system by my good friend, Russ Horn, that is suited for new to intermediate traders. 

With the trading strategies taught in this system, there is no need to spend extensive hours watching the market, which is perfect for part-time traders with a full-time job. In my opinion, anyone can trade this system in just a couple hours per day, and theres a few ways you can do it. 

However, please note that the method in this system can only be traded using the MT4 platform. If you are a new trader or you have not used this platform before, there is an entire DVD to show you exactly how to use it. The MT4 trading software is very easy to use, which is why it is the preferred platform of many traders.

Using this system, you can trade whenever you see a signal, no matter the time except in instances mentioned in the manual like when there are some high impact news events imminent or a trading session is opening. 

Forex Income Boss will work well on any currency pair, so if you have a few favorites, go ahead and trade them. However, if you do choose to trade lower timeframes like the 5 minute or even 1 minute, you will want to keep your trades limited to the pairs with lower spreads, otherwise, spreads could eat your profits. 

The system includes both trend following and reversal entry types. Of course, trading with the trend is definitely the most profitable way to trade especially for new traders and I would really recommend starting with that first. The methods include scalping, intraday, and swing trading. In other words, it can absolutely be used to scalp the 5 minute and even the 1 minute timeframes, but you can also use it very effectively on the 4 hour, daily or weekly timeframes. The best thing of all is the system works on every timeframe. 

The techniques in Forex Income Boss are relatively easy to follow, which is why I can recommend it for new traders. Aside from the numerous examples and live trades to show you how to apply them, there is the Members Area to answer any questions and help you understand how to trade the system better, as well as regular webinars especially to help new traders. 

Personally, I achieve a winning rate of approximately 60% using the system.

Forex Income Boss, which includes the 6 DVDs, a trading manual, cheat sheets, Members Area, webinars and all the bonuses, are all for a one-time only fee of $997. Dont worry if the system doesnt suit you as there is a 60 Days Money Back Guarantee. You will also have unlimited access to the private members only area for 6 months. 

For serious traders, I highly recommend this course.

For more information, check out the official website below.

Forex Income Boss

Happy trading all!

Cheers,

Austin

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GBP CAD 500 PIP RALLY IN NEXT FEW DAYS - neural spray forex trading system

GBP CAD 500 PIP RALLY IN NEXT FEW DAYS ~ neural spray forex trading system

This pair has started to break out above the latest Pennant setup on the Daily Chart which could set the stage for strong Pip gains in the days ahead. Before this takes place, however, we would need to see a stronger Bull Candle (Normal Candle) than the one that has appeared at the end of Mondays session. 

DAILY CHART - WEAK CANDLE BREAKOUT

Once we have this signal, we will be able to enter with greater confidence that another 200-Pip trade will be there for the taking.


The expected rally would continue the momentum of the major break out above the Outer Downtrend Line, which started a few weeks ago on January 21, 2015.

DAILY CHART- OVERALL DOWNTREND

DAILY CHART- START OF TREND LINE BREAK

As is typical of the Currency Market, breaks of major barriers such as these tends to take place with a break of a large Consolidation - a Pennant in this scenario. What this means is that any breakout from the smaller Pennant Setup would be supported by the momentum of the breakout from that larger Pennant- leading to profit targets being hit in a very short time.

If we see the hoped for Bull Candle this week, it will need to first go through our gauntlet of checks and balances prior to entry.

TRADE SHEET CHECKLIST

Once these criteria are met, another strong trading gain will be added to our growing trading accounts.

________________________________________

________________________________________

Duane Shepherd

(M.Sc. Economics, B.Sc. Management and Economics)

Currency Analyst/Trader

Contact: shepherdduane@gmail.com

Twitter: @WorldWide876

Facebook: DRFXTRADING
Website: www.drfxswingtrading.com

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Momentum strategies in futures and forex - forex strategy trader software

Momentum strategies in futures and forex ~ forex strategy trader software

I have long found that it is easier to find good (i.e. high Sharpe ratio) mean-reverting strategies than good momentum strategies. Partly, that is because I was mainly a stock trader instead of a futures/currencies trader, and individual stocks mean-revert most of the time. There are exceptions, such as after special corporate events such as earnings announcements, and I have tested momentum strategies based on these events. But the success of even these event-driven strategies has been uneven, especially since more traders become aware of them.

Now that I am focusing more on trading futures and currencies, I have gradually been introduced to the world of momentum investing. There is a good book in this area that deserves to be better known: Joe Duffys The Ultimate Trading Robot, which is an almost step-by-step guide to constructing futures trending strategies that rely on prices alone. Another example would be the London Breakout strategy mentioned by our reader Bernd in the comments here. After studying these examples, I realized why my previous, rather desultory, search for momentum strategies in the futures and FX markets had been in vain: the overnight gap in these markets seems critical. For futures, the overnight gap is obvious, but in the case of the London Breakout strategy, for example, the trader has the task defining for herself what the optimal closing and opening times are in order to compute the gap. Intraday trend without an overnight breakout does not seem persistent enough to be traded profitably. I also wonder if there is a more elegant (i.e. mathematical) way to quantify such breakout phenomena without using the traditional technical indicators.

If you know of ideas for good momentum strategies, you are most welcome to share and discuss them here!
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Unstoppable Forex Profit - forex trading system forexpros system

Unstoppable Forex Profit ~ forex trading system forexpros system

Unstoppable Forex Profit is a Forex software signal indicator that works on the MetaTrader 4 trading platform, providing trading signals based on the concept of volatility breakout. When the market breaks out from some of the important levels calculated by the system, such as after a rollback, a signal will be generated.

Volatility based indicators are considered one of the most reliable and profitable technical indicators in Forex trading and are widely used by professional Forex traders worldwide, enabling them stay in profit for many years of their Forex trading careers.

Basically, volatility indicators show the size and magnitude of price fluctuations. In any market, there are periods of high and low volatility, and these periods come in waves, i.e. low volatility is replaced by increasing volatility, while after a period of high volatility there comes a period of low volatility and so on.

Low volatility usually suggests a very little interest in the price, but at the same time it acts as a reminder that the market is resting before a new large move. Low volatility periods are used to set up the breakout trades. A rule of thumb is that a change in volatility would lead to a change in price and while a low volatility can hold for an extended period of time, high volatility is not that durable and often disappears much sooner.

Unstoppable Forex Profit is optimized to work best on M15 EUR/USD. It also works well on M30/H1/H4 EUR/USD, M15/M30/H1/H4 GBP/USD and M15/M30/H1/H4 USD/JPY but it is still highly recommended to use it mainly on EUR/USD.

The full interface of Unstoppable Forex Profit is shown below.

A blue arrow signifies a BUY signal while a red arrow signifies a SELL signal. The yellow squares are the fractals (swing highs and swing lows) which will be used as the stop loss levels.

The following chart shows an example of a BUY trade:

As shown above, the blue arrow signifies a BUY trade. A BUY entry would be made at the closing of the candle on which the blue arrow is pointing. The trade would be exited on the closing of the candle marked by the red arrow. The stop loss level would be the fractal which is nearest to the entry point as indicated by the yellow square.

Unstoppable Forex Profit is designed in a user-friendly way so that it is easy to use and eliminates any difficulties one could experience when using the software.

On the top right hand side of the chart, there will be a table showing all the required information for monitoring the market and entering into a trade:

• Current spread and stop levels
• Current trading time (as indicated in blue)
• Current profits made (as indicated in yellow)
• The latest signal generated (BUY or SELL with an arrow alongside it)

When a signal is generated, a popup window will appear on the screen with a sound alert. This is particularly useful for traders who are not in front of their computers monitoring the market all the time.

The Email option in MetaTrader 4 can also be used to send emails when a signal is generated. This is useful for those who trade using mobile devices.

Unstoppable Forex Profit is priced at $87 and comes with a "30 Day 100% Money Back Guarantee".

Find out more about Unstoppable Forex Profit now!

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Best Forex Trading Education - kumpulan trading system forex

Best Forex Trading Education ~ kumpulan trading system forex

by: Ricky Lim


There are many forex trading courses and educational material that a person can find online. However how does someone go about finding the best Forex trading education information? Certainly there are huge amounts of information that will educate you about Forex trading, but not all of it will help you to achieve your goals of making a profit rather than losing.

Below are some guidelines which should help you to find the best forex trading education course

Point 1 - Avoid Day Trading Systems

Many people when starting out in Forex trading will be enticed into thinking that the best way of making money is through day trading. Certainly if you were to ask a person who is selling a Forex trading course for details relating to their real time track record with regard to profits relating to day trading they will not be able to provide one to you.

So if you are looking to produce an income from your trading then do not waste your time on day trading.

Point 2 - Real Time Profit Records

When buying any sort of forex education course, you need to be provided with these records. If a person selling their system does not have confidence in the abilities of their system and are not investing their own monies then why should you. Unfortunately some of these courses being offered online today are from people who have either never traded in their lives or have failed when they have used the system themselves.

Point 3 - Understand It

Once you find a forex trading system which either has a track record or is willing to show their real profits then there are some other things which you will need to take into consideration.

It is important that you learn everything you can about the system in question so that you understand it completely. Unfortunately if you have no understanding of how the system works then you will not have the confidence to trust in it and follow the system through to a likely conclusion if you start to suffer losses.

By keeping these points in mind, you will find the best Forex trading education that is suited to your kind of personality. There are literally hundreds of places on the web that can offer you an education as well as free advice on Forex trading so do some investigating and you will soon find one that is ideal for you.
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The Average Trader Is Being Set Up By The Market - ddfx forex trading system free download

The Average Trader Is Being Set Up By The Market ~ ddfx forex trading system free download

The legendary trade Jesse Livermore once remarked very aptly that "The market is designed to fool most people most of the time." He has also been quoted in saying that "Markets never change, because human nature never changes." Although many aspects of this mans life may not be worth learning from, his perceptivities into the financial markets are timelessly invaluable to anyone who is serious about achieving success in trading.

If you have ever had some experience in investing or trading, have you ever felt that the market seems to have a way of going against you "most of the time"? For instance, if you have traded Forex before, have you ever felt that "it always goes down whenever I buy, and it always goes up whenever I sell"? Is it a matter of bad luck? Or are there some fundamental reasons why most traders lose money?

Think about it. If you do not have a highly systematic and controlled way of approaching the markets, the fact is that the markets are always rigged against you. It is not unlike going to a casino, where your chances of making money in the long term are practically zero. In the casino, all the games are rigged against us in the sense that they always have an edge over us. An "edge" is simply a statistical advantage that ensures that you will lose money if you stay long enough in the game.

So, how do some people devise strategies to take money out of the casinos? They do so by systematically eliminating the "house edge", and establishing "an edge over the house". Professional gambling syndicates win the games they play by playing only when the odds are in their favour, and knowing when to walk away without allowing the joy of winnings to get them carried away.

In very much the same way, the Forex market (and any financial markets, for that matter) is being "set up" against us. Firstly, we know that we start from a losing position from the very first moment after entering into a position. This is due to the transaction cost of entering a trade, i.e. the difference between the bid and ask price, known as spread which immediately shows up as a floating loss from the very first instance after entering a position. Psychologically, many traders are affected by the floating negative number that is displayed on the trading statement, and spend a lot of time scrutinizing the moment-by-moment increases and decreases of that number.

Our psychological reactions to market movements, and the ups and downs of the numbers in open positions, will almost certainly leads us to make counter-productive trading decisions. The interaction between human emotions and price movements naturally cause us to buy high and sell low most of the time!

What we see on price charts is essentially a graphical representation of the ebb and flow of mass market psychology, which involves millions of trading decisions at any one point in time. These trading decisions are the outcome of human nature at work in the market, involving many instinctive trading habits and attitudes.

The more we understand these and overcome the same habits and attitudes ourselves, the more we are able to eliminate the markets edge over us and stand out above the majority of traders and win successfully. Successful trading is about eliminating the markets edge over us and developing an edge over the market. It is only possible if and when you realize how the market is naturally "designed" to beat you. This involves not only understanding the market behaviour, but also understanding your own psychology as a trader.
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Using R to Test for Cointegration - forex volatility trading strategies

Using R to Test for Cointegration ~ forex volatility trading strategies

Paul Teetor, who guest-blogged here about seasonal spreads, recently wrote an article about how to test for cointegration using R. Readers who dont want to pay for a copy of Matlab should find this free alternative with similar syntax quite interesting.
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The Forex Profit System - forex ea auto trading system

The Forex Profit System ~ forex ea auto trading system

The Forex Profit System is a trend following strategy that uses only 2 types of technical indicators, i.e. the Parabolic SAR and the Exponential Moving Average (EMA). These indicators will indicate the direction of the market as well as be used for determining entry and exit points.

Here is how it works:

CHART SETUP

1. Setup a H1 USD/CHF chart. This is my favorite currency pair to trade because it swings up and down the most. You can choose any major pairs that you prefer as long as they have high volatility.
   
2. Insert the Parabolic SAR indicator and set 0.02 and 0.2 for its acceleration factor and constant respectively.
   
3. Insert 3 Exponential Moving Averages, i.e. EMA 10, EMA 25 and EMA 50, all with closing prices.

ENTRY
A trading opportunity arises when the EMA 10 crosses both the EMA 25 and EMA 50.

If it crosses up from the bottom, a BUY entry should be made. Conversely, if it crosses down from the top, then a SELL entry should be made.

In addition, ensure that the Parabolic SAR is at the bottom of the price before a BUY entry is placed and at the top of the price when a SELL entry is placed.

In the chart below, notice that I placed a SELL entry as the EMA 10 (green) crosses both the EMA 25 (red) and EMA 50 (blue) from the top. In addition, the Parabolic SAR is at the top of the price when the entry was placed.

Important: If you are trading the hourly charts like in the above example, make sure that the Parabolic SAR on the M15 chart is in the same direction. Never trade against the M15 Parabolic SAR!

EXIT
The ideal time to exit the trade is when price crosses over all 3 EMAs on the chart. In the chart above, I exited the trade when price crossed over all the 3 EMAs after approximately a week. This trade generated over 140 pips profit!

STOP LOSS
The initial stop loss for the trade should be set at the most recent swing low (for BUY entry) or swing high (for SELL entry). When price moves in your direction, the stop loss should be moved to near the 50 EMA accordingly.

In the chart above, I have set my initial stop loss at the most recent swing high. I would then move my stop loss lower to be close to the EMA 50 as price gets lower. This way, if price subsequently moves against you, you would have locked in some profits.

This strategy should be used on higher time frames, i.e. H1 and above, as on lower time frames price will sometimes ‘whipsaw’ back and forth, causing trades to be stopped out early.
More info for The Forex Profit System ~ forex ea auto trading system:

199 PIPS ON GBP CAD TRADE PUSHES RETURN UP TO 22 - best forex news trading system

199 PIPS ON GBP CAD TRADE PUSHES RETURN UP TO 22 ~ best forex news trading system

The Swing Trading Methodology continues to produce results with the most recent gain of 199 Pips on the GBP CAD. This brings the overall return from the strategy to 22% since it was launched in July, from only 8 trades. As it stands, clients are now only 8 trades away from a return of 100%, which is likely to be reached in the first four months of 2015. The Demo Account, which lags the Live Account by just 3 trades, is now up 17% since it was opened in October.

The Range Consolidation on the Daily Chart of this pair was initially broken short a few days ago, indicating the potential start of a sharp bearish breakout. However, given that the pair had already provided 3-Waves of Bearish Signals in breaking the Support boundary, a bullish pullback was always expected.


DAILY CHART




This reversal began a few days later with the appearance of Bullish Signals and a break of the Downtrend Line.


DAILY CHART

At this juncture, there were two possible scenarios that could have unfolded. The first was for the pair to continue its reversal and break back inside the Range, rallying sharply to the Resistance boundary once more.


DAILY CHART

This sharp rally would be typical of what takes place with False Breakouts. Not only would the reversal take the pair quickly to the other end of the Consolidation, they often lead to breakouts at the other end of the setup for even stronger gains for traders. Despite the bullish signals that initially favoured such a move, we also had to consider the bearish scenario as well.

The boundaries of Consolidations are often "tested" for a brief period before resuming the breakout. This "test" often takes the form of a U-Turn or a break of a small Consolidation setup formed at that area. A sharp bearish breakout following such a pullback was also a scenario to be considered.


DAILY CHART 

As it turned out, the bullish scenario eventually took precedence as the pair provided an ABC Reversal Signal to continue the False Breakout Reversal. The pair of Double Bottoms below the Range also provided support for the trade. 


DAILY CHART

FXCM Charts are used to provide signals based on the New York Candle Close of the Daily Chart

Given this strong setup and signal, entry then took place on the 4 Hour Chart. The Stop Loss was placed below the Range and the Entry Order set just above its Resistance in expectation of a pullback. This would allow our Stop Loss to comply with the 120-Pip maximum for entries based on the Daily Chart. 


4 HOUR CHART

This was the Entry Trade Sheet as sent to my Subscribers;

TRADE SUMMARY & SETUP 

PAIR	GBP CAD
TRADE TYPE	FALSE CONSOLIDATION BREAKOUT
ENTRY DATE	TODAY, DECEMBER 8, 2014
TRADE DIRECTION	LONG/BUY
ENTRY TYPE	ENTRY ORDER
ENTRY PRICE (MAXIMUM)	1,7904
STOP LOSS	1,7784
LIMIT ORDER	1,8104
MAXIMUM HOLDING PERIOD	7 DAYS - WEDNESDAY DEC. 17, 2014
DAILY TIME CHECK	21 00 GMT

After pulling back to test the Resistance of the Range our Entry Order was triggered. Following the U-Turn to resume the breakout, the target was hit a few days later.


4 HOUR CHART

DAILY CHART- LIVE ACCOUNT RESULT

This movement to our target was very fast. Given that we had the combination of the Double Bottoms, a False Breakout Setup and the ABC Signal - which individually always lead to sharp movements - the short duration of the trade was not a surprise. 

The main Technical factors involved in this trade were;

• The 3-Wave Rule (Section 4 - Consolidation Trading on the Forex Market);

• Double Bottoms (Section 3 - Currency Trading with the Daily & 4 Hour Charts);

• False Consolidation Breakouts (Section 6 - Consolidation Trading on the Forex Market);

• ABC Signals (Section 6 - Consolidation Trading on the Forex Market);

Placing this trade in a larger context, the Methodology has now produced a 22% Rate of Return since it started in July of this year. Only 8 trades have been made so far with a simplistic assumption that will be no further losses, clients are only a handful of trades away from realizing a 100% return.

RATE OF RETURN AS AT DECEMBER 12, 2014

These projections assume that each of the next trades will provide a 150 Pip value, which is the average of our 100 to 200 Pip target range. An FXCM Demo Account was opened on October 1, 2014 to track these trades and is now up 17% after 5 trades. This account would also only require 8 trades for the 100% target.

RATE OF RETURN - DEMO ACCOUNT

DEMO TRADES MADE

ACCOUNT BALANCE

When these results are compared with the Year-To-Date returns as at September 30, 2014 of the Top 10 Currency Traders as ranked by BarclayHedge...

SEPTEMBER YEAR-TO-DATE RETURNS OF CURRENCY TRADERS 

....the Methodology so far, appears to be able to hold its own.

Naturally, for reasons of privacy, I only share the results of individual trades on my Live Account without showing my actual Trading Account. However, since this Demo Account is only behind by 3 trades and is audited by the trade verification services of MyfxBook, you can be assured of the integrity of the information you see here.

RATE OF RETURN- DEMO ACCOUNT

(http://www.myfxbook.com/members/DRFXTRADING/duane/1079693)

The style of trading that has produced these results is both conservative and high-paying. Trading is only done 1 to 2 times per month, minimizing the exposure of your capital to the volatility of the market. When trading is conducted, however, only the highest paying Swing Trading opportunities that have the largest probability of success are targeted.

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