PDF Archive

Easily share your PDF documents with your contacts, on the Web and Social Networks.

Share a file Manage my documents Convert Recover Search Help Contact



Forex Intraday Trading .pdf



Original filename: Forex Intraday Trading.pdf
Title: Examples:-
Author: Administrator

This PDF 1.3 document has been generated by www.freepdfconvert.com / http://www.freepdfconvert.com, and has been sent on pdf-archive.com on 20/02/2011 at 18:58, from IP address 41.237.x.x. The current document download page has been viewed 1824 times.
File size: 448 KB (36 pages).
Privacy: public file




Download original PDF file









Document preview


Brought to you by: eVirus
Check my FaceBook Fan Page for daily analysis,
screen shots and support regarding this trading method…

1)
2)
3)
4)
5)
6)
7)
8)

The basics - Knowing Your candles
Setting the Daily Trend Indicator
Confirmed Trades - Simple Check List
The Stop Loss - The Perils and The Benefits
News Trade
The Newbie - A Section For Beginners
Lazy Trading Option - For the genuinely time poor or plain lazy
On The Money - See it to believe it!

Candles:Get the basics correct, and the rest will follow systematically with experience, build on a solid
foundation.
Understanding the difference between the high and low, the open and close, the wick, the tail and
the body of a candle is the best place to start.
High: The highest level the candle reached
Low: The lowest level the candle reached
Open: The opening (1st) level of the candle
Close: The closing (last) level of the candle
From the close to the high of an Up candle and from the close to the low of a
Wick:
Down candle
From the open to the low of an Up candle and from the open to the high of a
Tail:
Down candle
Body: The range between the candle open and close

Daily Trend Indicator (DTI):Set daily on the 15 minute chart the DTI is the only non technical indicator we use. It is created by
using the gradient line tool to simply extend a line from the close of the 11:45 candle (midnight)
through to the close of the 7:15 candle (at 7:30 BST).
If, like us, you prefer to set your trading charts to GMT then you must remember to allow for
daylight savings when creating the DTI. Daylight savings change twice a year on the last Sunday
in March and the last Sunday in October.

During the winter months (Last Sunday in October to the last Sunday in March) GMT and BST
are the same so the DTI is generated between 00:00 GMT and 07:30 GMT.
In the summer months (Last Sunday in March to the last Sunday In October) GMT is one hour
behind BST (06:30 GMT is 07:30 BST) and as such the DTI is generated between 00:00 GMT
and 06:30 GMT.
Some charting packages make life really easy as they have a Daylight Savings function, if your
charts offer this then set them to GMT, activate the Daylight Savings function and simply set your
DTI between 00:00 GMT and 07:30 GMT all year round.
It is vitally important to ensure that you have generated the correct DTI in order that you are
always trading with a strong market trend.

If the price action is above the DTI you are only looking to enter Buy trades, if the price action is
below the DTI you are only looking to enter Sell trades given that the indicators confirm a valid
trade entry.
Remember to apply daylight savings to the following rules of the tutorial:1. Never enter a trade before 07:30 BST.
2. Add/Subtract 8 pips to the high/low of the candle that confirms trade entry before 09:45 BST.
3. Add/Subtract 5 pips to the high/low of the candle that confirms trade entry after 09:45 BST.
4. Close all trades at or before 21:00 BST.

Confirming Potential Trades:Spotting a confirmed trade at a glance is essential, the only way to acquire that skill is to learn
the basics, confirm the basics and earn from the basics!

Starting with the 15 Minute Chart:


The body of the closed 08:00 candle has closed over the Kijun Sen, signaling the
possibility of a "Sell" trade.



The Parabolic SAR has already flipped above the price action to support a Sell Trade.



The action is below the Daily Trend Indicator supporting a Sell trade.



The Stochastic is moving to the negative so all 15 minute chart indicators all confirm a
Sell trade opportunity.

Confirming the trade selection using the 5 Minute charts:


Both Parabolic PSAR's have flipped to support the Sell trade.



The True Strength Indicator is entering negative territory.

All indicators confirm a Sell trade entry. It is prior to 09:45 BST therefore we set our sell stop 8
pips from the lowest point of the 08:00 candle (1.7147).
NB: When placing a potential trade the candle used to set levels from must be in the same
direction as the potential trade. We therefore require solid Buy candles that meet the criteria to
set Buy trade levels from and solid Sell candles to set Sell trade levels from.
NB: Spread is added to the buy side of a trade using bid-based trading platforms
Our entry level is 1.7135 which triggers during the 08:30 candle, interestingly for those of you who
prefer to get in and out the market with quick set profit levels as described in the "Newbie"
section, you would have generated a standard profit in less than 2 minutes.
However for those of you running with the trend as per the system's design this move traveled 73
pips and finally reversed at 15:30 at an exit level of 1.7107.

The Stop Loss:The "Newbie Section" demonstrates a strategy that uses a fixed stop loss of 30 pips and aims to
generate a fixed profit of 15 pips each trade. The strike rate considering we use such a tight stop
loss is amazingly high, however progressing beyond the limitations of a fixed stop loss must be
your goal as they can be restrictive in 'real world' trading.
Once you are completely confident trading the strategy, the first change you must make is to stop
using a fixed 30 pip stop loss and instead use the indicators to close trades that do not make the
standard profit; by doing so you will certainly increase the ratio of winning trades.
To show that in practice let's use the example below:
The Stop buy was set and triggered by the 14:00 candle.
Note: At no point thereafter does a 15 minute candle close over the Kijun Sen in the opposite
direction, a strong signal indicative of a potential weakness of trend.
The PSAR does reverse over the price line but that is NOT a confirmed signal of weakness, it is a
cautionary note. If a Parabolic quickly flips back to support the original trade direction this is often a
sign of strength, as in this case where the trade rockets up to generate an excellent potential profit.
If the trade has not generated at least one profit exit we wait for all indicators on both charts to
confirm exit, if during that period the 15 min parabolic flips against the direction of the trade placed
we look for a best or break even exit.
If our trade has made reasonable profit we exit once a candle on the 15 minute chart closes over
the Kijun Sen.
If we had used a fixed 30 pip stop loss when trading the example detailed we would have been
prematurely stopped out with a 30 pip loss.
Only use a fixed stop loss as a safety net against shock world news. Set it far enough away from
the action to allow the trade to breath, you can take your levels from the 5 minutes chart, setting
your stop loss outside the furthest parabolic.
This is 'intraday' trading so be professional about your trading and have faith in the indicators.

Example News Trade:During the first week of each month the big market mover is expected to be the US employment
data announcements on Friday. The market prior to the example Employment Data Friday
detailed below had already produced a lot of directional movement during the week and was
already topping out - but it's still worth looking at this Friday to see why it was such a damp squid
and what it implies for the following week:-

This is the 15 minute chart for the GBPUSD. The initial sizeable drop at 12.30GMT was the first
market reaction to the positive US numbers which caused the market to provide support for the
dollar. The market was obviously keyed up to move quickly on the news, as evidenced by the
sizeable gap out shown.
However, the follow through simply didn't occur and the market spent the rest of the session
backfilling and then reversing, adopting the upward trend seen in the earlier in the week.
How best to have traded this? Well, it is possible to 'fade' the initial 15 min candle because the
move almost always reverses before continuing on if its going to. I say 'possible' because you can
fail horribly doing this if the fade is a small one and you're suddenly caught out as the return to
trend suddenly starts again.

Best, I've found, to treat this as a momentum trade and look for evidence of continuation, which is
how we treat the News Trade in the video series.
Personally I tend to leave it for an hour or so and then place an entry stop 5 or so pips beyond the
previous highest high or lowest low according to which direction the original move went. This still
gets you the meat of the momentum continuation whilst avoiding the obvious failures like this. On
this Friday the lowest low over the first hour was 1.7714 and the market never went near that
afterwards so no trade.
The implication of the failed move on Employment Data Friday is for movement in the opposite
direction next week, in this case back to the Buy side.

New To Forex:Trade the "The Best Intraday Forex Trading System EVER" in progressive stages and build your
confidence, welcome to the....
"The Newbie Section"
Based on the entry and exit criteria as provided in the course we shall simply aim for a fixed profit
of 15 pips with a fixed stop loss of 30 pips using an Essex staking progression when placing
trades.
Is this how we trade? Absolutely NOT. The very best forex traders look more long term and run
with strong trends using the indicators as guidance for trade entry and exit.
In this section as stated the maximum gain is limited to 15 pips whereas the maximum loss can
be 30 pips.
The accuracy of the course indicators are such that it is possible to trade using these tight
parameters and still make consistent profits.
We recommend moderate to conservative staking as detailed in the table below.
Trade Entry Rules:


Trading the GBPUSD, only enter confirmed trades as detailed in the course.



Do not enter a trade before 07:30 BST.



Add/Subtract 8 pips to the high/low of the candle that confirms trade entry before 09:45
BST.



Add/Subtract 5 pips to the high/low of the candle that confirms trade entry after 09:45
BST.



Do not enter a new trade after 15:45 BST.



Close remaining open trades at or before 21:00 BST.

Once you have mastered trading with a fixed stop loss and fixed profit limit begin to split your
trades as detailed in the course and rely on the indicators for trade entry and exit, using a stop
loss purely as a safety net against the unexpected.
Use an Essex staking progression on the residual element/s of your trading as the potential gain
is that much greater and reduces the pressure on your staking bank.
Remember to close trades before important scheduled news announcements and trade these
opportunities as described in the course.
We have detailed 20 days of consecutive trading below for review
(N/T = No Trades)

Pip Trading Bank

Too
Aggressive
Target Arrears
1500

Essex Staking Progression
Day Trade Stake
1
1
2
3
4
5
5
6
7
8
9
10
10
11
11
12
13
14
15
16
17
17
18
19
20

1
2
3
4
5
6
7
8
9
N/T
10
11
12
13
14
15
16
N/T
N/T
17
18
19
N/T
20
21

1
2
3
1
1
1
1
1
2
3
3
1
2
3
1
2
3
1
1
1
1
2
3
3
1

+/-2
+2
+3
+1
+1
+1
+1
-2
+2
+3
-2
+2
+3
-2
+2
+3
+1
-2
+2
+3
+1

1
4
3
1
1
1
1
1
4
3
3
1
4
3
1
4
3
1
1
1
1
4
3
3
1

Aggressive Moderate Conservative
3000

4500

6000

3
2
0
0
0
0
0
2
2
2
0
3
2
0
3
2
0
0
0
0
3
2
2
0
0

-2.0%
+2.0%
+3.0%
+1.0%
+1.0%
+1.0%
+1.0%
-2.0%
+2.0%
+0.0%
+3.0%
-2.0%
+2.0%
+3.0%
-2.0%
+2.0%
+3.0%
+0.0%
+0.0%
+1.0%
-2.0%
+2.0%
+0.0%
+3.0%
+1.0%

-1.0%
+1.0%
+1.5%
+0.5%
+0.5%
+0.5%
+0.5%
-1.0%
+1.0%
+0.0%
+1.5%
-1.0%
+1.0%
+1.5%
-1.0%
+1.0%
+1.5%
+0.0%
+0.0%
+0.5%
-1.0%
+1.0%
+0.0%
+1.5%
+0.5%

-0.66%
+0.66%
+1.00%
+0.33%
+0.33%
+0.33%
+0.33%
-0.66%
+0.66%
+0.00%
+1.00%
-0.66%
+0.66%
+1.00%
-0.66%
+0.66%
+1.00%
+0.00%
+0.00%
+0.33%
-0.66%
+0.66%
+0.00%
+1.00%
+0.33%

-0.50%
+0.50%
+0.75%
+0.25%
+0.25%
+0.25%
+0.25%
-0.50%
+0.50%
+0.00%
+0.75%
-0.50%
+0.50%
+0.75%
-0.50%
+0.50%
+0.75%
+0.00%
+0.00%
+0.25%
-0.50%
+0.50%
+0.00%
+0.75%
+0.25%

Total

+21.0%

+10.5%

+7.00%

+5.25%

(The Example of the 1500 Pip trading bank is purely for reference purposes ONLY - if you wish to
attain these kind of % profits then you must progress to trading longer term trends as detailed in
the course). Moderate to conservative staking is best.
All screen shots examples are generated using Dealbook 360.
All examples trades have been executed using a bid based platform with a spread of 4 pips,
therefore 4 pips has been added to the buy element of all trades to ensure absolute accuracy. All
trades are confirmed using all indicators and all charts as detailed in the course.
Key

Description
Daily Trend (Line) Indicator

Stop Limit (Take Profit) - Placed opposite to the direction of a Stop Entry in
order close a trade at a specific level of profit.
Stop Entry - The desired level for trade entry either as a Stop Sell or a Stop
Buy depending on the trade direction
Stop Loss - A means to minimize potential losses again placed in the
opposite direction to the Stop Entry
_______________________________________

Day 1, Trade 1:
Our entry level for the buy trade was given by the high of the closed 8:30 candle (1.7471).
Our stop buy was 1.7771 + 8 pips (before 9:45 BST) + 4 pips (spread) = 1.7483 with a stop loss
of 1.7453 and a stop limit at 1.7498.
The trade triggered but soon retraced and went through the stop loss - failed trade!

_______________________________________

Day 1, Trade 2:
Our entry level for the sell trade was given by the low of the closed 12:30 candle (1.7420) as this
was when the 5 min chart indicators confirmed the trade.
Our stop sell was 1.7420 - 5 pips = 1.7415 with a stop loss of 1.7445 (to be automatically
triggered at 1.7441) and a stop limit at 1.7400 (to be automatically triggered at 1.7396)
The Essex staking progression is set at 2 (2 x the unit stake)
Entry and successful exit were achieved.
_______________________________________

Day 2, Trade 1:
Our entry level for the sell trade was given by the low of the closed 09:30 candle (1.7355).
Our stop sell was 1.7347 with a stop loss of 1.7377 and a stop limit at 1.7332
The Essex staking progression is set at 3.
Entry and successful exit were achieved.
_______________________________________

Day 3, Trade 1:
Our entry level for the sell trade was given by the low of the closed 10:00 candle (1.7320).
Our stop sell was 1.7315 with a stop loss of 1.7345 and a stop limit at 1.7300
The Essex staking progression is set at 1.
Entry and successful exit were achieved, but look at the potential for profit here by "catching the
trend"
_______________________________________

Day 4, Trade 1:
Our entry level for the buy trade was given by the high of the closed 08:30 candle (1.7186).
Our stop buy was 1.7198 with a stop loss of 1.7168 and a stop limit at 1.7213
The Essex staking progression is set at 1.
Entry and successful exit were achieved.
_______________________________________

Day 5, Trade 1:
Our entry level for the sell trade was given by the low of the closed 07:45 candle (1.7146).
Our stop sell was 1.7138 with a stop loss of 1.7168 and a stop limit at 1.7123
The Essex staking progression is set at 1.
Entry and successful exit were achieved.
_______________________________________

Day 5, Trade 2:
Our entry level for the buy trade was given by the high of the closed 13:45 candle (1.7161).
Our stop buy was 1.7170 with a stop loss of 1.7140 and a stop limit at 1.7185
The Essex staking progression is set at 1.
Entry and successful exit were achieved.
_______________________________________

Day 6, Trade 1:
Our entry level for the buy trade was given by the high of the closed 14:00 candle (1.7238).
Our stop buy was 1.7247 with a stop loss of 1.7217 and a stop limit at 1.7262
The Essex staking progression is set at 1.
Entry was triggered, however the market immediately reversed through the stop loss in a matter
of minutes. This really was an awful day to be trading as the market had stayed within a 20 pip
range for 5 hours previous to this potential trade.
_______________________________________

Day 7, Trade 1:
Our entry level for the sell trade was given by the low of the closed 08:00 candle (1.7146).
Our stop sell was 1.7138 with a stop loss of 1.7168 and a stop limit at 1.7123
The Essex staking progression is set at 2.
Entry and successful exit were achieved - in literally 2 minutes.
_______________________________________

Day 9, Trade 1:
Our entry level for the buy trade was given by the high of the closed 07:15 at 07:30 candle
(1.7227).
Our stop buy was 1.7239 with a stop loss of 1.7209 and a stop limit at 1.7254
The Essex staking progression is set at 3.
Entry and successful exit were achieved.
_______________________________________

Day 10, Trade 1:
Our entry level for the sell trade was given by the low of the closed 07:30 candle (1.7185).
Our stop sell was 1.7177 with a stop loss of 1.7207 and a stop limit at 1.7162
The Essex staking progression is set at 1.
The trade triggered but soon retraced and went through the stop loss - failed trade!
_______________________________________

Day 10, Trade 2:
Our entry level for the sell trade would have been given by the low of the closed 15:00 candle
(1.7185), however we earlier in the day we had experienced a failed sell trade at around the
same level so we take our level for trade entry from the lowest point the market reached during
the days trading. (1.7169)
Our stop sell therefore 1.7164 with a stop loss of 1.7194 and a stop limit at 1.7149
The Essex staking progression is set at 2.
Entry and successful exit were achieved.
_______________________________________

Day 11, Trade 1:
Our entry level for the sell trade was given by the low of the closed 07:15 at 07:30 candle
(1.7086).
Our stop sell was 1.7078 with a stop loss of 1.7108 and a stop limit at 1.7063
The Essex staking progression is set at 3.
Entry and successful exit were achieved.
_______________________________________

Day 11, Trade 2:
Everything about this trade screamed caution!
Initially the 15 Minute chart indicators signaled a possible trade entry at 10:00 (close of the 09:45
candle) however the 5 minute chart indicators did not concur until 11:55 - a full 2 hours later.
What does that immediately tell us?
Either the market is moving extremely slowly, channeling or similar.
So what do we do? As you become more attuned to the characteristics of the market you will
probably tend to avoid trades in situations like these or at least wait for a break out, however this
is the 'The Newbie' so let's not be scared to learn from mistakes and difficult situations.
What should we do?
We wait for the 11:45 -15 Minute to complete. This is the candle in which we received
confirmation from the 5 Minute chart Indicators of a potential buy trade.
We take our levels from the highest point the market reached since 7:30 - when we commenced
trading for the day.

The highest level the market had reached was in fact given by the closed 11:45 candle (12:00)
which was 1.7113
Note: The candle in question that we are using to give us our levels was in fact a down candle Yuck another signal for caution but let's ignore it - This is the Newbie.
Our entry level for the buy trade was 1.7122
The stop loss was 1.7082 and a stop limit at 1.7137
The Essex staking progression is set at 1.
The trade was triggered and then closed by the stop loss - a failed trade.
However the market then jumped violently through the original entry and exit points due to an
unscheduled news announcement that rocked the market.
What is interesting is the fact that no single 15 minute candle closed across the Kijun-Sen in the
opposing direction to the potential trade at any time therefore if we had not had such a tight stop
loss in place we would have stayed with the trade and would have generated our standard profit.
Better still we could have followed the trend into the close and benefited from a 200 pip move worth noting!
Entry and successful exit were NOT achieved - Failed trade.
_______________________________________

Day 12, Trade 1:
Our entry level for the sell trade was given by the low of the closed 13:30 candle (1.7198).
Our stop sell was 1.7193 with a stop loss of 1.7223 and a stop limit at 1.7178
The Essex staking progression is set at 2.
Entry and successful exit were achieved.
_______________________________________

Day 13, Trade 1:
Our entry level for the buy trade was given by the high of the closed 08:00 candle (1.7226).
Our stop buy was 1.7238 with a stop loss of 1.7208 and a stop limit at 1.7253
The Essex staking progression is set at 3. Entry and successful exit were achieved.
_______________________________________

Day 16, Trade 1:
Our entry level for the buy trade was given by the high of the closed 08:15 candle (1.7318).
Our stop buy was 1.7327 with a stop loss of 1.7297 and a stop limit at 1.7342
The Essex staking progression is set at 1.
Entry and successful exit were achieved. However we were slightly fortunate not to be stopped
out as you can see - the joys of a tight stop loss
_______________________________________

Day 17, Trade 1:
Our entry level for the buy trade was given by the high of the closed 08:15 candle (1.7441).
Our stop buy was 1.7453 with a stop loss of 1.7423 and a stop limit at 1.7468
The Essex staking progression is set at 1.
Entry and successful exit were NOT achieved - Failed trade.
Day 17, Trade 2:
Our entry level for the sell trade was given by the low of the closed 09:30 candle (1.7356).
Our stop sell was 1.7344 with a stop loss of 1.7374 and a stop limit at 1.7329

The Essex staking progression is set at 2.
Entry and successful exit were achieved.
_______________________________________

Day 19, Trade 2:
Our entry level for the buy trade was given by the high of the closed 07:30 candle (1.7357).
Our stop buy was 1.7369 with a stop loss of 1.7339 and a stop limit at 1.7384
The Essex staking progression is set at 3.
Entry and successful exit were achieved.
_______________________________________

Day 20, Trade 1:
Our entry level for the buy trade was given by the high of the closed 10:45 candle (1.7504).
Our stop buy was 1.7513 with a stop loss of 1.7483 and a stop limit at 1.7528
The Essex staking progression is set at 1.
Entry and successful exit were achieved.

Lazy Trading Option
Some of our customers cannot spare as much time at the screens as they would wish, some do
not like to give too much thought to trading decisions, others have been honest enough to tell us
they would prefer a lazy approach to trading, all have asked for options to best suit their
requirements.
I would stress that this is not the way we choose to trade although results will remain highly
positive, your results will NOT be as good as if you were to trade the system as designed.
Some elements of the options detailed below depend on the functions oft the trading platform you
prefer. I will assume that charts are set to GMT, with the Daylight Savings option active.
Trading Times: Do not trade before 07:30, do not trade after 15:45 and close all trades at 21:00
Concentrate your time at the screens during:




The London open and early session - look to catch an early trade or an early reversal.
The New York open and early session.
Major news releases.

Trade entry: As detailed extensively in the course and summarized here
Remember that prior to 09:45 use a value of 8 pips + spread to set your trade above high or
below the low of the confirmation candle. After 09:45 use a value of 5 pips.
Only enter Buy trades when the market is above the Daily Trend Line and Sell trades when the
market is below the Daily Trend Line.
Removing an un-triggered set up: If a 15 minute candle closes back across the Kijun-Sen prior
to entry, remove the trade.
Placing a Trade: Set a trailing stop when applying a trade, we always prefer to allow a trade
room to breath, therefore our suggestion would be a value of say, 39 pips + spread (this is a
value that has worked well for one of our customers who prefers to spend time surfing than
trading), but we know from experience that everyone has a very different risk profile and some of
you will prefer a shorter stop loss.
I can tell you categorically that "There is no perfect value - Markets change daily"
And that's it!
Keep checking the weekly updates!

All The Best,
eVirus - Visit My Blog
Check My FaceBook Fan Page!


Related documents


PDF Document how to use the software
PDF Document iq option estafa
PDF Document forex intraday trading
PDF Document audusd price action analysis  9th july 2018
PDF Document charts assist to forecast cost actions in forex investing
PDF Document gbpusd price action analysis pdf   2nd july 2018


Related keywords