Forex Indicator and System

The momentum-shift signal is a universal principles that is required in all our trades. Most reversal traders make the mistake of entering way too early, always trying to call a top and bottom. As the famous market wizard Jesse Livermore said: One of the most helpful things that anybody can learn is to give up trying to catch the last eighth – or the first. These two are the most expensive eighths in the world. They have cost stock traders, in the aggregate, enough millions of dollars to build a concrete highway across the continent. The momentum-shift signal, as you will see, helps us get into trades at a later stage but with a lot more context and confidence. Let’s recap: ▪ We use the 20 period SMA as an entry filter. It keeps us from picking tops and bottoms ▪ We require a strong, high momentum break of the 20 SMA ▪ Sometimes, the moving average won’t help (we will explore that later), but when we trade with trendlines and other local structures, we also always require a high moment...

I already introduced the head and shoulders structure in a previous lesson and now we will take a look at a few more reversal and transitioning structures. Patterns and local structures are another confirmation type and building block and they often foreshadow a trend reversal or help us time entries. The 5 most important patterns and structures: Here are the 5 most important structures and patterns that you need to know about. We will dig much deeper later on, but it’s important that you know about those structures early on because they will come up over and over again. Trendlines and trendline breaks Remember, we look for transitioning points where trending phases shift by waiting for a strong break of an obvious trendline. Head and shoulders Our classic wave pattern that symbolizes the gradual shift from one trend direction into the next. The neckline is also a kind of trendline. Triangles Triangles and wedges show a contraction in price behavior. The narrower a triangle, the strong...

Fibonacci extensions can help us measure and understand the wave structure of a trend. At the same time, we can use the Fibonacci extension tool to find overextended trends that have a higher likelihood of reversing. This can increase our odds significantly. Let’s recap: ▪ Some people might draw Fibonaccis differently but since Fibonacci levels are percentage-based, you can draw them both ways – the result is always the same ▪ Look for a good confirmation of the C point which is the retracement wave ▪ The best reversals usually happen after a 168 or 200 Fibonacci extension move. A trend then becomes over-extended ▪ A trend with a 138 Fibonacci extension usually does not lead to a long-term reversal

Trendlines are different from support and resistance and they help us understand different situations and also time our entries as we will see later. Trendlines are a great multi-purpose tool and when we learn about the third pattern, there will be a whole video series about trendlines alone. Let’s recap: ▪ A trendline needs at least 3 touch points to be confirmed ▪ Usually, we draw trendlines using the candle-wicks and not the bodies ▪ During a downtrend, we draw trendlines connecting the highs ▪ During an uptrend, we draw trendlines connecting the lows ▪ To find transitioning points, we wait for the break of a trendline

Supply and demand is another concept that we use to identify key price areas where price has a high likelihood of seeing a turnaround. By now you can probably see already how we can combine different concepts and techniques to slowly improve the way we analyze charts; that’s what this first module is for. Supply and demand is different from support and resistance and it’s important to know about the principles to understand price charts. Let’s recap: ▪ Supply and demand areas show the origin of strong price moves, explosive breakouts or the start of a long trend ▪ When price comes back to a supply and demand area, there is a high likelihood that price will turn again ▪ A reversal signal that happens at a supply/demand area has a higher likelihood of succeeding (more on that later) The 6 rules of supply and demand areas: 1) Before the breakout out of a supply and demand zone, price usually moves in a narrow range. The best supply and demand zones are very narrow, followed by an explosiv...

When we trade reversals and transition signals, we usually wait until they happen at key price areas. We use the principles of support and resistance to identify those high impact areas. In video, you’ll get a first introduction to support and resistance. In videos, I will show you how to use those principles to time trades and in the second pattern (The Trap), you will learn how to profit from “the crowded trade” phenomenon. Again, we are just getting started and this is only the foundation. Later on, we will put everything together but it’s important that you get the basics down. Let’s recap: ▪ Support and resistance levels show key price turning points ▪ Get into the mindset of drawing zones, instead of single levels ▪ Once a support/resistance area becomes too obvious, price tends to fade them (the crowded trade) ▪ A flip zone is a an area where price first used a level as support and then used it as resistance -we will explore the flip zone later in more detail when it comes to en...

Waves are the natural rhythm that price moves in and price waves is the foundation of every good technical analysis. We will start slow with the absolute basics and then slowly build on top of that with the coming lessons. In later modules, you will see how price waves are at the core of every market structure, trend move and also market reversal. Thus, it’s important to have a deep understanding of waves, wave structure and what it tells you about price dynamics. Because wave analysis is such an important concept, we have to spend a little bit more time on it. Here is another video that goes deeper into the wave structure, the analysis of swing highs and lows and we look into transitioning periods. Let’s recap what we have just learned:   ▪ During an uptrend, price makes higher highs and higher lows – and vice versa ▪ The beginning and the end of trend waves are called swing points ▪ Waves against the direction of the trend are called retracements or pullbacks ▪ As a trend extends...

The question which timeframe you can use this method on is an important one that we should address early on. In the video below, I made some points that you need to consider and below the video, I will provide more feedback and food for thought. Daily/4H vs. 4H/1H You can trade the methods and the setups that you will learn in this course on both the 4H and the 1H timeframe comfortably. I do mix the 4H and the 1H in my own trading as well. Here are some things you need to be aware of: Using the 4H as your execution timeframe ▪ When you are on the 4H, you will get far less trading opportunities because you will have less candles than on the 1H ▪ At the same time, the signals on the 4H tend to be more reliable ▪ You can also trade the 4H strategy on basically all Forex pairs, including minors and exotics ▪ During slow market phases, you might not get a trading signal for a week or even longer Using the 1H as your execution timeframe ▪ On the 1H, you have to be more selective in your trad...

 Why don’t we use our broker for charting? As swing traders, we have more time for analyzing and planning trades in advance and once we have a identified a trade, we are usually not in a rush to get the order in. When we trade on the 1H and the 4H chart, there is usually no need to hurry. This approach allows us to cope with emotions in a better way. All we do in our broker platform is putting in orders and we don’t have our broker platform open otherwise. This approach helps us avoid some of the most common problems many traders have: we can’t just mess with trades, we don’t see our P&L all the time, when we want to enter a trade, we can step back and check if that’s really what we want to do. All together, separating charting from execution is a great way of adding a layer of protection to our trading. And if you are looking for a broker, I recommend that you check out at banner www.forexindicatorandsystem.blogspot.com

Learning the routines and approaches of other traders is an invaluable learning tool. Other people have succeeded at trading before you and many people who may not be successful yet at trading can still teach you a lot especially if you’re a beginner. Mistakes can be avoided and you can learn much faster if you get help from other traders or a trading mentor. Remember; trading shouldn’t be some random event with no structure or solid approach and routine behind it, and if you make it into that you will end up gambling all your money away in the market. You need to develop your own trading routine that fits with your schedule and personality and then stick to that trading routine with ice-cold discipline so that you can see it work in your favour over a sample size of trades so that you have an opportunity to make money.

Welcome to your reversal & transition trading course  I am glad that you decided to enroll in this course. We will get started soon with our welcome video that will get you back up to speed. This course, like our other day trading course, is a fully video-based program with step by step instructions. In addition to that, we recommend that you join our community over in our private membership forum, post your questions, share your trades and have us review them, and interact with other members. This video you will also find a brief outline and overview what to expect.  Module 1: Introduction – The Setup  I give you a quick introduction to what to expect, a brief outline of the trading method, on which timeframes to trade it and some other basics before we get started Module 2: The Foundation  I introduce the individual concepts I use in our different setups one by one. I start with the basics first, then get into the more specific concepts, before I then put every...

Success begins with proper sleep. As discussed on the page Understanding Sleep on the NINDS website (National Institute of Neurological Disorders and Stroke), adults need between 7 to 8 hours of sleep per night to function properly the next day. You cannot ‘compensate’ for lost sleep via caffeine or any other means; your body will eventually force you to catch up on lost sleep and the time you spend in a sleep deficit will be time spent with your cognitive abilities impaired and running far below their peak. Needless to say, trying to trade or analyse the market and adhere to your trading plan whilst in a sleep deficit, is just not going to work. Perhaps the first and most important way to ensure a proper trading routine is by making sure you get at least 7 hours of sleep per night.

This leads me to my next point: How do YOU analyze your charts each day to find trades? Do you have a routine that you go through each day? Do you have any structure behind your trading method or do you basically just “trade on the fly”? Like success in any other field, trading success is the result of developing effective habits through discipline and proper procedure. What I mean is this; if you do not have the discipline to stick to your trading strategy and manage your risk properly, you will never attain the trading mindset and habits that you need to make consistent money in the markets.

Trading Forex adalah sebuah peluang bisnis yang sangat fenomenal di abad ini, Bahkan yang dulu hanya bisa dilakukan oleh orang-orang kaya dengan minimal deposit $100,000, kini semua orang dengan modal $100 bahkan $50 pun bisa masuk kepasar Forex

Semua trader hanya memiliki satu tujuan ketika trading, yaitu profit, profit dan profit. Namun pada kenyataannya loss, loss dan loss. kemudian Trader putus asa dan memilih untuk menghentikan trading selamanya. Ditambah dengan perkembangan Internet, Dimana kita bisa bertransaksi darimanapun dan kapanpun menjadikan Forex menjadi salah satu bisnis yang “Booming” saat ini.