TRADING USING THE DOW THEORY

Natural talent is something that all potential forex investors crave. Knowledge and anticipation of how markets move is hard to come by and in truth, it is more of a natural talent than a learnt skill. In spite of this, natural talent alone is not enough and being successful in the markets requires hard work and dedication above all else. Regular forex education is essential if you want to improve the success rate of your trades. One simple way to boost your knowledge is to adopt a trading strategy. Here, we look at the Dow Theory and show how it can help you improve your trades.

The principles behind the Dow Theory are relatively simplistic and, because of this, it is a great tool for new traders. The fundamental belief behind the Dow Theory is that any factor that would influence the market will have already been factored into the offer price. It may be the case that such factors cannot be predicted, but, even so, they are already factored in.

Why Use Technical Analysis?

EDUCATION IS KEY IN FOREX TRADING

Forex trading has become very popular of late. But Forex is not a get-rich-quick-scheme by any means. To make money in Forex you need to know what you are doing. A bit of luck certainly helps but there is no way you are going to come out ahead if you don’t put some time and effort into learning what Forex trading is all about.

If you ever invested in any other market, such as equities, you know that the first thing to consider before placing any trade, is the risk/reward ratio. If the reward is not enough to make the risk worthwhile, don’t take it. On the other hand, risk provides the opportunity to make more money. If you know how to take calculated risks, you will see a profit. But here again, if you don’t know much about Forex, you will not know what a calculated risk is and won’t see the opportunity when it arises.

International Forex markets trade over $4 trillion on a daily basis. But 90% of Forex traders lose money within weeks of placing a trade. So how do the other 10% make it big? What do they know about Forex trading that takes them over the top?

Education is Key

FOREX TRADING AS AN INVESTMENT INSTEAD OF A GAMBLE

There are thousands of articles and media reports that equate any type of investing to gambling. When you focus on investing on the Forex or commodities markets there is even more of the inherent prejudice of the mass media to discredit it as an investment and call it gambling. While this is not an accurate depiction of the markets, it may accurately describe many of the people involved in the market. The Forex and Commodities Exchanges are legitimate venues for investors with risk capital. Many of the people that trade in these markets are gamblers rather than investors. 

The impression that currency speculation is actually gambling comes from a lack of understanding about the process. The people choosing to call it gambling have some pretty strong facts on their side however. More individuals lose money in the Forex market than make profits and no system is foolproof. These are simple facts but they cloud the real picture. It is the same amount of money be being lost or gained. Every loss or gain results in the opposite loss or gain on the other side of the equation. This does not mean (as some suggest) that it is impossible to profit over the long term based on the structure of the market. The fact that the majority of the profits are made by an overall minority of the investors, it is clear that there is in fact a skill and strategy involved that can be learned and developed. 

Investing is a Business – Treat it Like One

THE POWER OF DOING NOTHING IN FOREX

I will show you why doing nothing is surprisingly powerful in trading.

This simple exercise had a profound impact on how I will try to manage my trades in future. Once I open a trade and I’ve got my stop to break even its time to do nothing, just walk away.

Obviously the vast majority of my trades would have been stopped out at break even however the small percentage that survived were taken by the long term trend and became little profit pulling machines! To give you an idea of the power of doing nothing lets take just one trade from the EURUSD. I entered this short sell trade back in January 2010, it was a simple trend collapse breakout trade risking 35 pips (2% of my account) and I took profit at around 95 pips. Which is not bad right? I risked 1 to get almost 3. (see details of the move at end of this post)

Now lets take a look what happened if I did nothing. The Daily trend took this trade and it never came back to hit my break even stop. In June 2010 it hit a maximum profit of 2410 pips and if it wasn’t closed it would be sitting right now at 1250 pips. Realistically I believe any long term sell positions on the EURUSD would have been closed the moment the head and shoulders pattern played out on the daily chart at the end of June. This would have closed the trade with a profit of about 1800 pips.

Now here is the shocking part!

Remember that the initial risk on this trade was 35 pips, which was equivalent to 2% of the trading account.Closing the trade at 1800 pips would have resulted in a gain of 102.8% on the account! Remember, this is just one trade!

HIGH PROBABILITY DIVERGENCE SETUPS

Welcome to the second part where I am explaining how you can use divergence with some tips and tricks I have learnt over the years to pinpoint market turning points with high accuracy. 

In the part 1 (price swing prediction) we discussed standard divergence and what to look for with your preferred indicator to spot this setup. Now its time to dig a little further and see how deep the rabbit hole goes! 

High Probability Divergence Setups!

Through years of trial and error I have discovered what works and what does not. Divergence by itself is a bit hit and miss, you never really know if the divergence will play ball or not. This is probably why many traders give it a try then decide to leave it for something 'supposedly' better. Sadly, they didn't know how close they were to the pot of gold!

BANK TRADER REVEALS BREAKOUT STRATEGY

Hello traders,

Today I would like to show you a technique that is valid for all currency pairs and all time frames (my group in the bank tend to use it mostly on the Daily and Weekly charts to avoid market choppy noise). The name of this strategy is the Breakout, Congestion and Continuation pattern, and it’s a high probability setup given the right circumstances. If you master this technique, you could achieve a 75% to 80% win/loss ratio!

The key concepts are the universal pattern of any currency pair : continuation pattern after a strong momentum breakouts of key Support / Resistance levels, using candlestick formation made by 3 consecutive candles.

Search for the pattern only upon the breakout of a significant horizontal level of support / resistance 

The pattern : You must see a solid breakout candle breaking through the Support / Resistance level

Don't trade if you get "shaky" breakout candles

HOW TO PREDICT PRICE SWINGS IN ADVANCE

Have you ever wished you had an indicator that would predict a price swings in advance? Well chances are you already do, it's just that you have yet to discover how to harness its power. 

Confused? Don't worry it will become clear! 

I'm not a big advocate of indicators, I do use some common indicators in my trading but all indicators have a major flaw when it comes to trade entries. Indicators follow historic price and consequently are always lagging behind price. However there is a technique to use selected indicators in relation to price structure, which can give you an accurate leading indication of when price will turn! 

TREND EXHAUSTION COLLAPSE STRATEGY

Trend Collapse Forex Strategy

Today I want to share with you a powerful Forex strategy that works on any time frame and any currency pair because its principles are virtually universal. This strategy seeks to exploit the sharp reversal moves we occasionally see in our charts once an established trend shows weakness. When this happens, traders who had been riding that trend are very quick to protect their hardearned pips by closing out at once all their trend-based trades, and therefore the market bias suddenly changes. 

When a trend starts collapsing

Everyone says that the safest way to trade Forex is by trading only in the direction of the trend. But what about when the trend comes to an end? Should you stop searching for trading opportunities altogether? Not at all!

In fact, when a trend begins to lose its momentum, the market goes through a period of sudden “mass panic” as every trader closes his formerly-profitable trend-riding positions before the trend goes belly up. So… what happens when a large portion of the market jumps out of the market at the same time? well, basically the market -and the former trend- collapse!

And right THEN and THERE is exactly when you want to be ready to profit from that sudden market collapse.!

I hope you enjoy and use this strategy… trust me, it’s powerful stuff!

HECTOR DEVILLE HINDSIGHT ORACLE INDICATOR

This indicator based on the Repetitive Nature of the markets and price pattern. The Hindsight Oracle analyzes current market conditions and current price patterns, then browses through historical data searching for the same patterns. Based on how price developed after those past patterns, it gives out a potential outcome.

Original Price

$197

You will get a high probability projection of upcoming price behaviour, the indicator will also give you a quantified projection in pips, if the projection goes according to your plans, you have green lights. If not, it keeps you away from problematic trades.

  
This unique advanced indicator price is worth 197$, work on any instrument: forex , gold, index,.....etc

Original Price	$197
Discount Price	$27

Instant download, no limit, no expiry, forever usage 

RSI ADX BOLLINGER COMBINED SYSTEM MT4 INDICATOR

Hello

Today I would like to bring you a useful beautiful mt4 indicator named JOGET invented by an savvy Indonesian trader with nick name masemus.

The system use a combination of these basic technical indicator RSI, ADX, BOLLIINGER BAND to help generate as highly accurate as possible entry point. It will also display useful info like trend, Pivot point, broker time, your computer time, and 3 levels to take profit .......

How to use the RSI ADX BOLLINGER COMBINED system, just click the screenshot below to see :

It's free download and free to use without any limit at this link JOGET2U

The file is compressed with password, to view the password, scroll down to the comment area after clicking here RSI ADX BOLLINGER SYSTEM INDICATOR

MULTI TIME FRAME TRADE ADVICE INDICATOR

Trend_alex is a multi timeframe indicator to identify the trend. It's advantage is the advice to open trade or wait for better moment, Trend Indicator Alex is very simple to use and fits any trader. By default it measures trend in 3 timeframe : 15M, 1H and 4H

Rule to enter trade is very easy, just follow the text displayed on your chart, Buy/sell when it tells you to buy/sell and there are 3 level to take profit displayed on the right side to help you decide when to exit the trade, example is below :

If you buy this system, you will receive the Super Trend Norepaint Signal  FOR FREE
Price is 27 USD, no limit, no expiry, instant download 

Any question, email to marketivaster [at] gmail [dot] com

How to Subscribe Trading Signals MetaTrader4 and MetaTrader5

"Signals" in MetaTrader 5 trading platform allow traders to connect to any signal issued by providers. Select and subscribe to any trading signals provider to copy all his or her deals on your account.

The reliability of all signal providers is carefully checked to provide maximum security. All signals will work only in demo mode within a month. However, you already can master them by subscribing to one of the Expert Advisors participating in the Automated Trading Championship 2012. Please keep in mind that automatic copying of performed deals is possible only when your trading terminal is active (connected to the trade server). 
So, how to become an investor?

How to Avoid Failed (Invalidated) Harmonic Pattern

The Harmonic Pattern is so popular and we all agree it really works !! Many of Harmonic Trading topics are full of succesful screenshots of Patterns like Gartley, Butterfly, Bat ...etc. What about the opposite, the invalidated (also called failed) ones ? 

In fact, Harmonic Pattern success rate is only about 80%. 

I'll start posting some of failed cases and then I will show how to avoid it. Following examples present invalidated/failed patterns:

This is an emerging Bullish Gartley Pattern, deteced by one Harmonic Pattern Indicator, price was supposed to go up after the pattern is displayed... . what really happened afterward is price continuing down and the Harmonic Pattern expand it's right wing and failed eventually

How MACD Indicator can Count Elliott Wave

Hello 

In this post I will show you how I use MACD Indicator to count Elliott Wave, this method is very useful and easy to apply, especially when the price starts moving  in a new trend. And why I say it is useful and valuable ? Because when you can predict the price movement, you would know where the price will probably head and where it will potentially stop, this helps trader with many opportunities to be profitable.

The screenshot below is the EURAUD 4H I took just now , as of May 9th 2013, you can see the price has breaked the downtrend.

Technical Indicators and EA on MQL5 Market in MT5

I think, everyone engaged in FOREX trading knows MetaQuotes company and its FOREX trading terminal called MetaTrader. The fourth version of MetaTrader is the most popular nowadays but MetaTrader 5 is winning recognition at a rapid pace. In this review, we want to tell you about a very useful innovation implemented in MetaTrader 5 - MQL5 Market.

You can find a huge number of trading tools on the Internet, including various scripts, technical indicators and Expert Advisors.

Head n Shoulder Pattern on EURUSD Daily Chart

As you can see, we are in the 2nd wave, EURUSD retracement will stop around 1.3250 and then continue riding the third wave to 1.2040. Long term trend is down and look like we are having a Head and Shoulder forming, we are on the right shoulder now. 
If you like this email and want to receive similar prediction for another particular pair,  click Subscribe or fill in the form below

Subscribe to our mailing list