MetaTrader

Core Indicator

In making the decision whether to sell or buy, many traders took the analysis based on the indicator. Knowledge of how to use some day trading indicators are very important to enter and exit the market profitably. Here are some of the most important indicator used by traders
Moving Average (MA) Indicator

Richard Donchian popularized by more than half a century ago, the Supreme Court used to determine when to buy and sell. Basically, it is ideal to buy when the price is above the MA and sell when closing under MA. Because MA is a lagging indicator, it will help investors get the profits after the trend has started when holding an open position. For the same reason, however, investors after the Supreme Court also will tend to come out after a change in trend, giving up part of their profits in the process. Different sets of MA because it can be used as a cross reference to minimize this problem and to predict more accurate results.
Variations Moving Average
Using a variation of MA as an indicator has shown more accurate results than using a simple number MA. Examples of variations of MA moving average convergence and divergence (MACD) and the moving average compression (MAC) to measure market momentum. The use of MACD, developed by Gerald Appel is an indicator that shows when the short-term moving average collided with an average long-term move.

As well as MA-based indicators, lagging indicators are also not present early warning for squaring, causing reduced profits. It is therefore advisable to use this in conjunction with other indicators of non-based MA.
Stochastic indicator (SI) and the Relative Strength Index (RSI)

Indicators of two types of oscillators are similar in the sense that they are used to reflect overbought and oversold scene, serving as a useful indicator in forex time. What distinguishes them is the fact that SI has two values ​​compared with only one in the RSI. Stochastic readings are present between 0 percent to 100 percent. Generally, a trend reversal or correction can be anticipated when the reading goes above 80 percent.

Again, there is a downside to this indicator. Although oversold or overbought condition has been identified, in some ways, the trend is still able to continue and do not need to be changed. To overcome this, the use of SI and RSI indicators should be used in conjunction with any other time.
Parabolic SAR indicator

Parabolic indicator derived from a mathematical calculation to come up with a number of sell and buy a number of investors that can be used as a sell stop, and stop buying. SAR is an abbreviation of 'stop and reverse' and is very useful in market trends. Because this method is very objective, very good as a mechanical system in the trade. Because the Parabolic indicator tend to perform poorly in highly volatile markets, use it with other indicators will improve its accuracy.
Directional Movement Indicator (DMI)

DMI, developed by Welles Wilder and is derived from the theories that have been proven to determine market power. Call the action can be identified using its three components, the DI +, DI-values ​​and average Index Directional Movement (ADX). When the ADX goes above 20, the trend is generally strong. The higher this reading, the stronger the trend.
Rate Change (ROC) indicator

ROC is the price difference now and then. ROC can be calculated for a variety of old, the most popular in the forex to 12 days and monthly ROC. By Jake Bernstein in his book, 'Compleat Guide to Day Trading Stocks, "I believe that both the momentum and the ROC have been overlooked and underestimated as an indicator of trade and as a valid input for trading systems. Point is that because of the adaptation of the ROC, they can be incorporated into in the trading system in which they serve more than just an indicator downside?. Again, this indicator may be left by the market trends.

For various reasons, there is never a pretty good indicator of its own. As The L. John from 'Candlestick and Pivot Point Trading Triggers' to say, "... there is no holy grail for every trading indicator or style."

Video NO Stop Grid Trading

Trading system is now emerging in the forex forum. Here's the video No Stop Trading Grid

i-Frosty and i-Boxy Indicator

Here good indicator for meta4 metatrader












Fully technical Trend Predictor with Sets of Chart Details

SCRIPTS

a-DBuy 01-50-30.ex4 - Editable on Screen Buy with default 0.1 Lots, 50 TakeProfit, and 30 StopLoss

a-DSell 01-50-30.ex4 - Editable on Screen Sell with default 0.1 Lots, 50 TakeProfit, and 30 StopLoss

a-StopOrder.ex4 - Editable on Screen BuyStop and SellStop with 13 Breakout, 60 TakeProfit, and 30 StopLoss

CleanUpAll.ex4 - General Instant Cleaning-Up all position on all pairs *

CleanUpAllChart.ex4 - Specific Instant Cleaning-Up positions on current viewable chart only *

* CleanUpxxx scripts sometime facing problem due to internet connection and/or server busy states, so just redo it again.

Notes

For Using i-Frosty and i-Boxy, we need t-SkyShift template initially.

i-Xxx = Indicator, put it into x:\[your MT4}\experts\indicator\i-Xxx.ex4 folder

s-Xxx = Script, put it into x:\[your MT4}\experts\scripts\s-Xxx.ex4 folder

e-Xxx = Expert Advisor, put it into x:\[your MT4}\experts\e-Xxx.ex4 folder

t-Xxx = Template, put it into x:\[your MT4}\template\t-Xxx.ex4 folder



Feel free to download and use it at your own risk as we do not provide any support for all of the above mentioned products.



Download here.

Understanding of technical analysis or indicators

We focus on technical analysis, in this article are some important indicators. Here you know that custom indicator is make money or lose your money? Metatrader explain here.

We can say that all traders use technical analysis is rich, but not all dealers carry out technical analysis, although extensive teaching assistant is the most appropriate way trading foreign exchange market. It is also worth noting that a fundamental role, indicating whether the price up or down. This gives you the advantage over other traders.

Technical analysis is very useful for some reasons

1) It is a number. All information and its market and currency traders said the price represented.
2) it helps to forecast trends and foreign exchange market is very 'fashionable'.
3) a particular chart pattern is consistent, reliable and repeatedly. T.A. help us to see them.

There is a way, a comprehensive view of technology analsysis (wish I had a dollar for every time I said: 'Technical Analysis'). We all know that trends in price fluctuations. Research shows that those who trade the trend and 'greatly improved their chances, a profitable trade.

Trends to help you realize the overall market direction, and often saved our less profitable entry point. I attended a two-day course cost me 2,500 U.S. dollars and Australian dollars of the most important thing I learned from it takes discipline and emotional control. Therefore, the basic content, in the next three to four articles, I will cover it all. Therefore, learning the tools of trade of technical indicators and their applications will help you do what diagnostics market, but even so, you need UPS Yuqixiaxiang, Mao Yi and emotional control.

Remain in the trend, according to the price.

Explore the currency of the price. If the EUR / USD 1.4224 and 1.4180, then 1.4090 and then to enter the market decline. Only concerned with what their market is doing what is impossible. Listen to the market and the indicators will tell you to retain them.

Moving average.
Tell me your price at a specific time interval in a certain period. They are called moving because they give the final price, calculated on the basis of the average measurement time selected.

They lagged behind the market, so a pair of ever-changing trends suggest that the use of a shorter average like 5 or 10 day moving average. By short-term and long-term horse can detect short-term buy signal, by moving the direction of the long-term average upward. Or break down when the sell signal. For example, you could use the 5-day moving average and the average 20 days or 40 days and 200 days.

There is a simple moving average, linear weighting is more important is to provide new or weighted price index. The latter is a favorite because it believed that all the prices in one period, but stressed the importance of the recent price changes.

MACD indicators
Under the moving average, MACD indicators of the differences between the moving average of 26 drawn and 12 day moving average, and 9 days as a trigger line. If you find MACD indicator is still positive, when the market decline may be a strong buy signal. Opposite also applies.


Bollinger Bands (sounds like an elastic band)
Prices tend to remain between the upper and lower bands. They expand and contract more depending on the prevailing market volatility. A sell signal, the moving average over Bollinger bands, and vice versa for the buy signal. Some traders use it in combination with the RSI, MACD indicators, CCI, and the interest rate changes.


Fibonacci retracement
Cycle exists in nature interpretation and application of technical analysis to find the market trends. After the price increase is often the most moving, sometimes all be traced back to the original. Support and resistance levels often occur near the Fibonacci retracement level.

Relative strength index
Relative Strength Index measures the activity to see whether the market is overbought or oversold. This is a key indicator of the market will help to show what (great!). Relative strength index is overbought Ahigher number (so pessimistic about the changes expected) and the lower figures show oversold.

Successful traders generally use 3 or 4 signals, to provide more conculsive signal before making a transaction.

Always remember, "If in doubt, stay in it!." Technical analysis does not take into account the political news, economic profile, a country or a basic regulations and requirements.

Technical analysis can help us to know how much of the trade risk. How and when to enter the market, how out of business profits or minimize losses.

Be nice trading...

New Kuasa Forex

Excess kuasa forex indicator that is, if you just need to BUY & SELL blue indicator when the indicator is red. This indicator has been modified from its original so hopefully I can be more powerful and give a name " NEW KUASA FOREX."

Rules :

1. Cans forex trend seen in the TF v.1 1h, to menenutkan long term trend
2. see Cans forex enter v.1 in TFs 1h, notice if there is a round yellow arrows or new-formed.
3. if there is a round yellow arrows or who are formed, consider the zig-zag direction of movement of green and red (note: the zig-zag green u / long term, red u / short term).
4. if the direction of the arrow or round yellow line with a zig-zag movement of stochastic and rsi notice.
5. confirm stochastic already in overbought area and intersect one another, and RSI leads in the direction arrows.
6. wait candelistik komfirmasi in the next, to make sure the arrow or round menghilanglagi not yellow.
7. when the yellow arrow or round is not lost, immediately open position TP 100pip 50pip SL
8. close out positions when the indicator directly opposite and open new position, also note the location of pivot point

Indicator used:
0_ZIGZAG.ex4
BBands_Stop_v1.ex4
Pivot Points.ex4
RealMACD.ex4
Heiken_Ashi_kuskus2.ex4
ZigAndZag.ex4



Download New Kuasa Forex


Remember:

• The trend is my friend, do not be betting against the trend.
• Trading like you do not speculate
• height of discipline in following the rule

Relation of Chart and Time Frame Power

At times I'll review, interesting article from "SOB Kunay" a professional trader about the relation graph and time frame. Many beginners are confused trade using an appropriate time frame to determine / use of indicators which are adjusted with a time frame. Here are 20 key to how the Relation of Chart and Time Frame Power.

1. I view with both charting and chart and TF relations of power.
2. TF is the main door of a trading system.
3. We view the market movements in one day at a time in the form of a bar and this means we see the movement of a market in the view, one month and one year
4. Chart pattern that occurs here is one month and one year, and here people like to don’t understood in the trading system
5. Though clearly masing2 TF have different perceptions
6. Likewise with TF 4H means is that we understand.... market movements within 1 week and 1 month
7. Meanwhile, 30m, 15m, 5m is the intraday / daily
8. Entry, of course we use depends TF
9. Likewise with SL and TP
10. Here the need for a thorough understanding of a whole view of the TF so that we can decide wisely when we are SL or locking, because each TF has a rest , and this is what then makes the channel and the like
11. This thorough understanding. Give us complete information so that we can ride the market all the time movement, and there was no hesitation on the mark "RED" in our meta, because if you are using SL, and then appeared a red alert!
12. So back to the basic trading system, each of which used. TF set what they are, and here's why? why sometimes a trading system does not provide a good trigger when at a certain TF
13. This simple crossed = analyze all TFs, but it is here the power of an analysis
14. Suppose the triangle chart pattern, he sometimes appeared in the TF 5M, 15m, 30M or 1H, but he's very rare in the TF 4H, the reason is simple because a large range 4h
15. While Triangle is a chart pattern that indicates a confirmation when the price will be changed, by the triangle because that will often be seen at the bottom 1h TF
16. Yet another with the channel, instead he is more often seen in TF 30m, 1h and 4h
17. Only with this capability is extremely flexible so we can see the market, and more discerning in determining SL, TP and Lock
18. For entry then you will see something beautiful, that is where SL  
19. The conclusion is Do not get stuck in the TF itself, because the TF has a character and if we do not understand this character be prepared to lose material. 
20. So back to the basic question, what is your trading system is in conformity with the existing TF   and whether you have a thorough analysis of cross-TF! Done  

VTINX and MSIQX

How your trading today? Had the market held the next day, I would have had to buy the funds on Monday despite my rather bearish outlook on the market. I have to admit, I would have hated having to buy at this time and it would've been difficult for me to execute. It would've felt like throwing money into a fire. Confession to make - VTINX and MSIQX

There are two distinct issues we should think about.

a. A natural or, at least, common tendency to try to "outguess" the system: It is a completely psychological issue and we have to learn to resist it. In general, trend following systems have low reliability, meaning, only about 40% of trades conducted according to such systems are profitable. That is a given and it needs to be accepted up front.

b. Testing and adjusting the parameters of the system: The parameters of the system can and should be tested and adjusted as needed. A chart below illustrates this.


VTINX hit 10.73 eight months ago and it is still there. Those who have held, have not made any money, but they have not lost money either. On the other hand, those who executed the signals have actually lost about 1% of this position.

For example, if an investor had 100 shares of VTINX, eight months ago his position was worth $1073. He would then have only $1066 after selling his shares for $10.66 in January - see the arrow Down. He would buy 99 shares for $10.76 - arrow Up in March that he would sell for $10.86 in May. He then could have bought no more than 99 shares at $10.80 or above now if we had got a buy signal.

Also, if this is a 401K or other "regulated" plan, then the investor might have been restricted on how often he is allowed to get in and out of a fund (over-trading rules).

One solution to this issues is to adjust parameters to reduce the number of signals. Here is the same chart with three ATR stops.

 Another illustration from the last week is Morgan Stanly International Fund. This is how it looks with our standard 2 ATR 7 week parameters


and this is 3.5 ATR 6 weeks

How to use Fibonaci Trading

Here you can see how to use fibonaci trading or you can download articles.

Scalping Strategy by Athalia

For those traders who have or like scalping techniques, here there is a very simple scalping strategy but generate a lot of profit.

Indicators used are:

   1. Exponential Moving Average period of 5 apply to the High (Blue)
   2. Exponential Moving Average period of five apply to Low (Red)
   3. MACD (12,26,9)


Rule:

1. At the 30M TF cross we saw earlier and MACD is starting with close prices above the upper channel (OP BUY) and close below the lower channel (OP SELL) this is where to start to determine the trend. In this case we call the trend for the position OP BUY UP and DOWN trend SELL OP position.
2. Later in the TF 5M conditions already cross the MACD
3. For the first time position open immediately after the close prices above the upper channel (Trend UP) and an open position immediately after the close price below the lower channel (DOWN trend) that confirmation was in TF 5M.
4. OP position when the price recurring each time touching the upper channel (for the trend is down) and lower channel (Trend UP) by looking at the MACD in the same direction (according to trend) can be viewed on the 5M TF.

Exit:

   1. In the 5M TF occurred MACD cross
   2. At the 30M TF there is a change of cross MACD
   3. Target 15 points minimum, maximum change in TF MACD cross 5 M or 30M

Stoploss:

For the first open position and repeatedly put stoploss 15 points from High or Low in the candle / bar that has been used as an entry, ie above the upper channel (DOWN trend) and below the lower channel (Trend UP)

NB: it's just for my scalping was benar2 TF never use a larger pair of TF 30.

Magic Dot Indicator

Magic Dot Trading system



Download

Simple EMA and Bolinger Band

Red = EMA 5
Blue = EMA 50
and the Green = Bolinger Band 20

then there are three entry points ..
1. Crossing the midline EMA 5 bolinger band or like I call the mid bolinger
2. Crossing EMA 50 with EMA 5
3. Candle bodynya the overall position is outside the band bolinger

Movement direction I see in H4 while for go to the market, I use M15 time frame this also means that if the H4 direction is still down, I will be patient to only take advantage of all crossing the support down and let all the crossing that does not support. then if use SL, then located in the outer bands bolinger.

If the clay image that I display, then the M15 I will still sell for position, because H4 was beckoned down.

Also for the record ... usually when the 5 EMA crosses with mid bolinger, the nearest target is the EMA 50 and the farthest is bolinger outer bands ... with EMA EMA five crossing 50 has the closest target in outer bolinger while for the third entry, usually the closest target is the mid bolinger and EMA 50.

I also recommend if make this model, must be in a condition ready for the trading profit .. so then brush, do not chat or be left in, just pursue profits, do not chase pipsnya .... good luck ..

Woodie CCI Indicator

Woodie CCI indicator is shows fast and slow CCI and also highlights neutral zone for the slow CCI for the first N periods after the slow CCI crosses zero. As a Woodie traditionalist, the only thing I can suggest is to make the slow CCI line thicker than the fast.

Download  Woodie CCI script


8WX89A5D8XBX

Follow Bouncing Pips

First I want to thank all of you for the support. Forex11 & I never thought this would take of they way it did. Thank you.So officialy I will be adding the MFI (Money Flow Index) with 80/20 settings.

So as you can see I look for confirmation on all 3 charts. You can always take it off the 1Hr if you like but I prefer the 4 HR. When you see all 3 its a super strong indicator that it will go in that direction. Thats how I trade it. Simple & straight forward.

As for exits & stoploss. To make it simple if you use a 1HR GBP/JPY I reccomend at least 75 pip SL. on the 4 HR a 200 pip SL. As for exits you can use the next signal or a profit point of your choosing. As for me I use the MFI to see how close its being overbought/oversold, look for upcoming news that my affect your trade & to make sure my risk reward is at least 2-1. Never risk more that what you will gain. Put bluntly its stupid.


Indicators Setting :

Non Lag Zigzag : Price 0 , Length 100, PctFilter 2.0

Zigzag Pointer : ExtDepth 100, ExtDeviation 75, ExtBackstep 15

I have 3 charts set up. A 30M, 1HR & 4HR.








source: http://www.pipsmaker.com

CAT FX 50

Main Tools

EMA50 on chart.

EMA120 on chart.

Hist_Step_MA_Stoch_KV1_Ex_03 set at 2000 bars.
Set filters on Step: +0,04 and -0,04.
Plot aNina_v1, set it at 9000 cbars.

Hist_StepMA_Stoch is the main indicator here. When Hist_StepMA_Stoch and aNina give signal simultaneously, the better. Do not trade if they give opposite signals.

TF: 30 minutes.
Trade time: 08:00cet to 18:00cet

Optional tools:

FiboPiv_v2

MAX Moving Average set at 50, 14, 2000, 2

SDX-TZBreakout

Camarilladt7 with L3, L4, L5 and H3, H4 and H5.


Standard or Level 1 signals:

Buy when price crosses EMA 50 and new bar opens above. Hist_StepMA_Stoch must be green.

Sell when price crosses EMA 50 and new bar opens below. Hist_StepMA_Stoch must be red.

If price and Hist_StepMA_Stoch crosses are simultaneous, the better.

Level 2 signals (riskier):

For instance, when price is above EMA 50 with Hist_StepMA_Stoch in green. Price then opens one bar at least below EMA 50 and Hist_StepMA_Stoch keeps in green mode. When price opens again above EMA 50 with Hist_StepMA_Stoch validating (green), we can buy. The opposite for a sell.

Level 3 signals (riskier):

For instance, we are in bullish mode: price above EMA 50 and Hist_StepMA_Stoch in green. Suddenly, price goes down crossing or without crossing EMA 50 and obviously without opening below it. Hist_StepMA_Stoch changes to red. We buy when price goes up again always validated by Hist_StepMA_Stoch that should change to green again.

Level 4 signals (Take care):

Level 4 is when price, after a consolidation of a few bars, breaks through the last high or low. The main thing we need is an indication of strength, and if we don't get it, it could be a trap!

Obviously, the breakout down should have Hist_StepMa_Stoch in red and green for the opposite.

Something to take into account:

Pairs to trade: EURUSD, USDCHF and GBPUSD.

When bar opens more than 20 pips above/below EMA 50, the signal is riskier.

Do not buy/sell, for instance, EURUSD because GBPUSD has a signal. Wait for the signal to come in each pair you want to trade. Look at EURGBP, USDCHF and US Dollar Index always.

Trend Rider System

Trend Rider System with 5minBlue that means you only trade in the direction of the trend. Good traders always trade in the direction of the trend.



-Read articles and forums and get a Clue where the trend is for the week and month.

-Copy all the indicators to the expert > Indicators File for the metatrader 4.

-Load 5minBluet Template.

- Check where the trend is going from the beggining of the Day.

Best Time: EUR open till US Closes

Pairs: Low Spread Pairs

For Detail Explanation download all indicators here

RSI indicator

RSI indicator customize like this
download RSI indicator customize here

HEIKEN ASHI Indicators

These are rules for HEIKEN ASHI Indicators




source : http://www.pipsmaker.com

SKYDART system trading

SKYDART system trading opening a position

1. Watch the bar chart 30M
2. When the signal approaches, switch to 15M and carefully open the position
3. Next return to 30M

• FX Sniper’s lines cross

• CCI raises above zero and the dot on line LSMA is green

• Waddah Attar – the green line of the histogram crosses the yellow signal line from below, the yellow line is above the blue broken line; even better if the yellow line is rising.

Closing a position

• FX Sniper’s lines cross and generate a "sell" signal, or both FX Sniper’s lines cross CCI-34.

• The green line of the histogram hids underneath the yellow signal line

The "sell" signal

• everything is reversed compared to the "buy" signal. But Waddah Attar – the red line of the histogram crosses the yellow signal line, the yellow line is above the blue broken line; even better if the yellow line is rising

Reversal or aggressive buy/sell signal

• The signal occurs when after a significant activity there is a sudden reversal

• FX Sniper’s lines cross each other, or both lines cross CCI34 without crossing each other and generate a "buy" signal

• The green or red histogram Waddah Attar HIDES BENEATH the gold signal line – observe the first bar (candle) at which the histogram will hide beneath the signal line and change colour.

• The colour of LSMA dot is consistent with the position being opened (green for long, red for short).

SMA indicator

SMA indicator with following setup :
SMA 2400 Close Represent 4Hr Timeframe Res/Sup
SMA 600 Close Represent 1Hr Timeframe Res/Sup
SMA 300 Close Represent 30Min Timeframe Res/Sup
SMA 150 Close Represent 15Min Timeframe Res/Sup
SMA 50 Close Represent 5Min Timeframe Res/Sup
SMA 5 Close Represent Current direction.

observe price patern.
in addition you can use Daily pivotes points. and 4Hr pivote points.
Observe how price react after touching SMA.
Use SMA as suport and resistance... Same setup works with 1Min Chart.

Here is chart of Gbp/usd. observe how price move between sma.

In addition use Daily pivote and 4Hr pivotes. Daily pivote gives potential support/resistance.
4hr pivotes gives idea what is going on within 4Hr. important thing is catching price pattern pattern and where it is happening. Please try trading with SMA indicator

STEINITZ SYSTEM

1. Heiken_Ashi_Smoothed

1a Input setting are: 2-6-3-2
1b Colors are: Red, blue, red, blue.
1c. Width is: 1,1,3,3
1d. Style is: 0,0,0,0

2. 4 TF HAS Bar
2a Input settings are: 2-6-3-2... 1.0
2b Colors are: Red, blue, red, blue, red, blue, red, blue
2c Width is: 0,0,0,0,0,0,0,0
2d Style is: 0,0,0,0,0,0,0,0
2e Level style is: Silver

3. 4 TF HAS Bar2
3a Input settings are: 2-6-3-2-0 Blue,Red, Black
3b Colors are: Blue, red, blue, red, blue, red, blue, red
3c Width is: 0,0,0,0,0,0,0,0
3d Style is: 0,0,0,0,0,0,0,0
3e Level style is: Silver

You need to set your price chart on "Line charts" (candlesticks will work too) but I prefer line charts since we are dealing with closing prices only and candles with clutter up the chart.

So now you have your charts set-up with the three (3) indicators and you have your pricing set to "Line charts". Let's continue......

1. On the top of the chart you will see the “HAS” indicator. There are only two colors that you will see red or blue. Red for down and blue for up. There is also another candle that you will see from time to time. It is a red body with a blue wick or blue body with a red wick. I’ll go into that later.

2. On the bottom of the chart you will see the “4TF HAS” indicator display four timeframes off to the right side of the indicator. If your platform is set to 5M you will see 5M, 15M, 30M & 1Hr. You can also confirm the TF's just over the indicator itself which helps if you can't see the right side of your screen for whatever reason.

3. On the bottom of the chart we also have the “4TF HAS Bar2” which overlaps the other “4TF HAS Bar” indicator to enable a mixed color bar (bar with a dot in the middle) to display when they occur naturally. Don’t worry we will discuss that later. Thanks go out to “Mouteki” for his help with a modification to this indicator which he named the “4TF HAS Bar2”.

THE RULES FOR ENTERING

Let’s take the 5M TF as our example.

1. Look at the lowest row which is the 5M TF. If the bar directly above the 5M bar is also blue you take the trade long. The best time to enter on ANY TF is just after you see an opposite colored bar on as many TF’s as possible. In this example it’s best to enter after you have seen some red bars on the lowest TF. If you saw red bars on all 4 TF’s just prior to entering long this makes for a better trade. The reason for this is you want to enter at the beginning of a new move or time cycle. If you entered on a blue/blue candles (5M/15M) just after seeing just one row of red candles on the 5M TF, it is possible and highly likely that you are not taking the beginning of a New 5M trend. Either way the entry is ok to take. I mention this only to enlighten you as to what makes for a better entry which will produce more PIPS since you will have gotten in early.

2. Now you have entered and you are on the 5M/15M cycle. Your job now is to sit tight and do nothing until you see your first red candle on the 5M TF. Once this has occurred you will be on alert status since the trade is starting to backfill. In other words some possible profit taking has occurred. But do nothing. Two things will happen at this point forward.

2a. You will see some more red 5M bars, then as the market recovers you will get into blue bars once again or

2b. You will see more red 5M bars and then the 15M row will display it’s first red bar.

In the case of 2a you just continue watching and do nothing. In the case of 2b you wait for the close of the 15M bar and then switch the TF of the MT4 platform to the next higher one. In this case that would be the 15M. If after switching TF’s to the 15M you end up with a red bar on the lowest TF (15M) and a blue bar on the 30M TF you are safe to continue the trade. Remember we are always talking about the bar directly on top of the other bar.

3. If after switching TF’s to the 15M you end up with a red bar on the lowest TF (15M) and red bar on the 30M TF you exit immediately. Remember we always perform ALL functions with a close of bar.

4. So now assume we are clear to stay in on this trade. So are job is to monitor the 15M/30M TF. Again we stay in the trade as long as the 15M stays blue. If it turns red you perform the same function as before. Do nothing if the 15M is red and the 30M is blue. If the 15M and the 30M are both red get out immediately (at the close).

5. Now this can go on for a long time. I will be attaching a trade on the forum that started with the 5M TF and continued to the 1hr/4hr. I just looked at the trade I will be posting that follows this word doc and I would still be in. Lot’s of PIPS were made by staying in and not exiting until the rules tell you to do so.

EXITS

1. I have always said that exits are the hardest part to any trading method. Not just this one but any method. The reason is it is hard to predict the beginning of a trend or the end of a trend. You can see clearly when you are somewhere in the middle.

2. I have two schools of thought that can be used mechanically. One exit is risky and one is less riskier. With risk comes the potential to adjust how much profit you are trying to achieve. I will let the reader decide how much risk/reward they feel they want to manage.

3. When I talk about risk I am referring to how much potential profit one is willing to give back as a trade off for staying in the trade longer.

4. Exit rule #1 (bigger risk)

4a Exit on ANY TF when the lowest and next higher TF both show the opposite color from the original trade. When long you would exit if the lowest TF and next higher TF both are red.

It should go without saying that you reverse whatever I am saying if you take the opposite trade direction.

5. Exit rule #2 (less riskier)

5a Exit on ANY TF when the lowest TF bar changes to an opposite color from the original trade. When long you would exit if the lowest TF bar is red ignoring the upper TF’s.

6. Keep in mind that if you exit on this less riskier method you can always get back in later after the lowest TF bar changes back to the original color based off of the original trade. I say this because you might have exited prematurely to avoid waiting too long for the riskier next higher TF bar to turn red. I will go into another technique that will have it’s own thread. It will be based on what I have touched on here.

7. One of the reasons I have dedicated my time to this thread is for you the reader to help find ways to manage the exits to optimize the ability to keep those hard earned PIPS. I believe we can come up with a filter or something based on resistance or support that can help identify the tops and bottoms more efficiently.

EPILOGUE

That about sums up the strategy that you can use to make more money then you could have imagined. This can be your personal ATM machine. If you like what you have read I would appreciate any and all feedback good or bad. Stay tuned for my next word doc about a style of trading that let’s you enter at anytime once a trend has already been established.

This about Don Steinitz, founder of STEINITZ SYSTEM

My name is Don Steinitz. I am originally from California and moved to Las Vegas in 1984 leaving all behind for the pursuit of my number one

interest “Blackjack”. I was able to make a very good living by counting cards and other methods to obtain an edge over the casinos. Yes I became well know in Nevada as expected but was never arrested or back roomed which to this day escapes me how I was so fortunate. I was also able to take advantage of tilted roulette wheels, sloppy dealers, slot machines that had some minor faults, biased bingo balls and edges in horseracing etc.

I left the game after 23 years to play “No limit” poker since the edge in that game is large enough for the skillful player to make a nice income as well. I also get treated just the opposite as a professional blackjack player who is always looking behind his back and constantly getting escorted out of casinos. I have studied the stock and forex market for about 8 years now and put in about 11,000 hours in front of my computer looking at charts.

This market is by far the toughest game to beat and I am determined to not give up until I find an edge that I can exploit to my advantage. So why would I share this information with you? Because I haven’t been successful prior to finding “Forex Factory” and this indicator. This website is dedicated to serious traders and I was able to stumble on what I believe is an indicator that presents a lot of potential. In the 8 years I have never seen such an accurate way to asses market movements and the ability to capitalize on the beginning of a trend.

Than's a lot :

1. Don Steinitz

2. http://www.pipsmaker.com