The M15 Dance Manual
Content
Contents Legal Disclaimer
3
Author's Note
3
What this manual DOES NOT cover
5
The Rules Additional Considerations and Denitions
5 !
The Sim"lied Rules Rules
#$
T%E CARD&NAL RLE
#3
sing (rice Action
#3
Chart Setu"
#)
Ta*ing Ta*ing The Trade+ Trade+
#!
The Constrainment Trade Trade
$#
The AAA ,Touch,Touch- Trade Trade Entr.
$$
%o/ To Let The 0ar*et ,Sho/ &t's %and-
$1
(utting &t All Together
$)
Rening the Entr.
$!
A Word A2out Wic*s
3#
Sta. OT+
3#
Trade Trade Ris* 0anagement
3$
Trailing Trailing the SL
35
Setting " The Charts
34
sing The (role
6
sing The Scri"ts
#
Dancing (ractice
1
&t's A 7usiness+++
4
0aster The Trades+
5#
0a*e &t 8ours+
5$
A 9e/ Live E:am"les
53
Co".right Cla. 9errell; 9errell; $66! < $6#6 an. e=ort to change >or this 2asic set o> rules o> the strateg. is strictl. >or2idden unless "rior /ritten "ermission is granted 2. the author?
Legal Disclaimer: extremely risky activity activity 2ut is "otent Trading Trading >oreign currencies currencies is an extremely "otential iall. l. a "rota2le o""ortunit. >or educated and e:"erienced investors? 7e>ore deciding to "artic "artici"a i"ate te in the 9ore: ore: mar* mar*et; .ou should should care>u care>ull. ll. consid consider er .our .our invest investmen mentt Most import important antly ly,, do not o2@e o2@ect ctiv ives es;; leve levell o> e:"e e:"eri rien ence ce and and ris* ris* a""e a""eti tite te?? Most invest money you cannot aford to lose ? There is considera2le e:"osure to ris* in an. >oreign e:change transaction? An. transaction involving currencies involves ris* ris*s s incl includ udin ing; g; 2ut 2ut not not limi limite ted d to; to; the the "ote "otent ntia iall >or >or chan changi ging ng "olit "olitic ical al and andor or econ econom omic ic cond condit itio ions ns that that ma. ma. su2s su2sta tant ntia iall ll. . a=ec a=ectt the the "ric "rice e or liBui liBuidi dit. t. o> a curre currenc. nc.;; the ris* ris* o> settle settlemen mentt discr discre"a e"anci ncies; es; 2ro* 2ro*er er erro errors rs and mal>ea mal>easan sance; ce; outright >raud and man. others?
0oreover; the leveraged nature o> 9 trading means that an. mar*et movement /ill have an eBuall. "ro"ortional e=ect on .our de"osited >unds? This ma. /or* against .ou as /ell as >or .ou? The "ossi2ilit. e:ists that .ou could sustain a total loss l oss o> all initiall. de"osited margin >unds and 2e reBuired to de"osit additional >unds to maintain .our "osition /ith an. given 2ro*er? 2ro*er? &> .ou >ail to meet an. margin calls /ithin the time "rescri2ed; .our trading "osition ma. 2e liBuidated and .ou ma. 2e res"onsi2le >or an. resulting losses; including amounts "otentiall. more than .our de"osit? The content "rovided "rovided herein is "ut >or/ard >or/ard in good good >aith and 2elieved to 2e accurate accurate and e=ective; ho/ever; there are no e:"licit or im"licit /arranties o> an. *ind made in connection /ith this in>ormation? in>ormation? Should .ou choose to use use this strateg.; .ou /ill /ill 2e trading e:clusivel. at .our o/n ris* o> .our o/n >ree /ill? 7. using this Strateg.; the reader thats .ou+F agrees not to hold the author o> this in>ormation; or an. o> his or hers aGliates; assigns; or heirs lia2le >or and to e:"licitl. hold harmless >rom an. decisions that .ou ma*e 2ased on in>ormation contained in this document; or an. in>ormation >ound on an. electronic >orum or >rom an. email discussing this strateg.; no matter /here it is or /here this strateg. /as "ut >or/ard? &> .ou do not agree /ith the all o> the a2ove; do not trade using an. o> this in>ormation in>ormati on or an. "art o> this strateg.? strateg.?
Author's Note: Learning to trade is a ver. "ersonal thing? The @ourne. can 2e e:tremel. >rustrating; is almost al/a.s a lonel. @ourne.; 2ut is al/a.s /orth it? Rule num2er # in learning to trade 9ore: 9ore: is that .ou can get ever.thing .ou need >or >ree i> .ou are /illing to do some research research and some /or* on .our o/n? o/n? (a.ing >or ,s.stems- is stu"id? The. are a dime dime a doHen and al/a.s /orth /orth less than .ou "a. >or them? 8our o/n mind is the onl. thing .ou need? 7en@amin 9ran*lin 9ran*lin said; ,Em"t. .our "urse into .our mind and .our "urse /ill never 2e em"t.+ That is amaHingl. good advice? advice? Training Training is /orth "a.ing >or; >or; 2ut in 9ore:; 9ore:; .ou .ou can get all .ou could ever /ant or need mostl. >or >ree? 9or the most "art & have >ound trading to 2e an arena lled /ith tons and tons o> /anna2e gurus; sheister "romoters and most im"ortantl.; ,sel>I>ullling "ro"hecies?"ro"hecies ?- 9or e:am"le; 9i2onacc 9i2onaccii lines; Andre/s (itch>or*s; 0oving Averages Averages and Su""ort Resistance Resistance levels all /or* reall. /ell 2ecause so ver.; ver. man.
"eo"le use them; 2ut the. o>ten >ail as /ell 2ecause some larger "la.er moves the mar*et or some other inJuence does? ,Round ,Round Num2ers- also /or* ver. /ell >or the same reasons? reasons? There is nothing magical in an. o> this; @ust "lain old human human "s.cholog. at /or*? /or*? 9ear *ee"s *ee"s "eo"le tra""ed and ma*es ma*es certain levels stronger stronger than others? others? Kreed does much much the same @ust in a di=erent /a. /a.?? &> .ou /atch "rice action around Andre/'s "itch>or*s; .ou /ill see the e:act same sort o> movement as .ou do around around longer term 0oving Averages? Averages? Nature loves a 2alance and "eo"le instinctivel. understand that? What goes u" must come come do/n; ever.one *no/s *no/s that+ &nertia *ee"s *ee"s moving o2@ects in motion and resists resists o2@ects at rest rest >rom movement? movement? Ever.one *no/s that that too+ Li>e is lled /ith c.cles; /hich scientists no/ call ,circadian ,circadian rh.thm?rh.thm?- Night and da.; rise and >all o> the tides; slee" and /a*ing; e:citement and de"ression? Ever.one *no/s this too+ 9ractal technolog. is the science o> ho/ larger things are 2uilt on smaller things? ust loo* at a tree? tree? One line ,2ranches- into multi"le multi"le lines and eventuall. /e have the sha"e /e recogniHe trees to have; 2oth in 2ranches and roots? (eo"le have 2een tr.ing to a""l. all these "rinci"les in di=ering methods to the mar*ets >rom >rom /hen the rst mar*et mar*et "lace /as ever created? ust loo* at ho/ long the a"anese *e"t records records o> the rice mar*ets mar*ets /ith candlestic* charts? The same is true o> the grain mar*ets in more Euro"ean areas; areas; @ust not /ith candle stic*s? The /hole "oint in all this is that li>e is 2uilt on sel>I>ullling sel>I>ullling "ro"hecies and e:"ectancies? So are are the mar*ets? mar*ets? &t is s"ecicall. the ,sel>I>ullling ,sel>I>ullling "ro"hecies"ro"heciesthat ma*e 9ore: 9ore: tradea2le and "rota2le i> .ou learn to use them e=ectivel. e=ectivel .? Also; each "erson is 2uilt di=erent and di=erent ,sel>I>ullling ,sel>I>ullling "ro"hecies- /ill /or* >or di=erent "eo"le Trading Trading is no more more diGcult than nding one or more more o> these that that .ou can understand; ,see- clearl. on a chart and trade e=ectivel.? e=ectivel.? &t's reall. more more li*e a dance or a video game than an.one /ants to admit? There is an old countr. countr. /estern /estern song that sa.s; ,One ,One ste" >or/ard >or/ard and t/o ste"s 2ac*; no one gets gets ver. >ar li*e that?that?- 7T; that is not true? &n a dance there are are t/o "artners? One One leads; one >ollo/s? 9or the the most "art the ,male- leads and the ,>emale,>emale- >ollo/s? She is traveling along in the the dance @ust as >ast as he is; onl. she is doing doing it 2ac*/ards+ 2ac*/ards+ She is also ta*ing all o> her ,cues>rom him? Without 2oth 2oth "artners there there /ould 2e no dance? &n trading; the mar*et is ALWA8S the ,male- and traders are ALL ,>emale- ta*ing their cues >rom ,him- AND; the. must do it in res"onse ra"idl. and 2ac*/ards? &> one over anal.Hes a dance techniBue the. mess it u"; the ,Jo/- o> the dance su=ers and sometimes sometimes the. even get hurt? &> the. don't understand understand the cues the same thing ha""ens; onl. o>ten it's /orse? Trading is no di=erent? So; learn to dance? Learn to ta*e cues >rom the mar*et and @ust have >un+ Credit where Credit is Due! This strateg. is a com2ination com2ination o> t/o main strategies strategies that & greatl. greatl. admire? The rst is trading 0oving Average Average 2ounces /hich osh 9ord 9ord taught me? Second is ames#1
>or his thread on (rice Action 7ars at 9ore:9actor. 9ore:9actor.?? Lastl. & learned a2out a2ou t ,Round ,Round Num2ers- and their e=ects reading ac*o's Thread also on 99? All & reall. did /as to listen attentivel. to /hat osh taught me and a nd document man. o> the ,nuances,nuances- o> trading 0oving 0oving Averages Averages the /a. he does it? &t is amaHingl. "o/er>ul+ A Word About Idiots and Neanderthals This strateg. /as originall. originall. "osted to 9ore:9 9ore:9actor. actor. /ith the intent o> o> it 2eing a ,>or >ree- trading strateg. strateg .? Nothing /as ever as*ed >or in return return and no o=ers /ere ever made in regards to its use; training to use it; and the Author NEMER EMER trades AN8 managed accounts? There is no need to? to? Still; >or some reason a >e/ decided that the Author's ,/riting st.le- /as similar to some idiot /ho su""osedl. de>rauded some on that >orum 2. trading managed accounts? Though & am not >amiliar >amiliar /ith the stor.; let me sa. sa. this? AN8ONE AN8ONE /ho EMER gives their hard earned cash to a stranger the. meet on an internet >orum >or trading; is as much o> an idiot as the "erson doing the trading is? 7OT% o> them are reall. stu"id? With that said; the neanderthals on 9ore:9 9ore:9actor.; actor.; /ithout an. evidence o> an. *ind; and the lame 2rained site administrator /ho admitted in his "ost 2anning the Author that he had NO hard evidence o> AN8 *ind; still destro.ed the teaching o> a ver. solid and >ree strateg. to man. /ho reall. needed that >ree teaching? The strateg. is still there there in the ,Rec.cle ,Rec.cle 7in7in- i> .ou /ant more in>ormation in>ormation on this this 2asic set o> rules at the >ollo/ing lin* and a trader using the screen name o> ostas# ostas# has ta*en it u"on himsel> to continue the original /or*; /ith this Author's a""roval? a""roval? T%&S manual is "ro2a2l. "ro2a2l. "osted on his thread thread to *ee" *ee" m. /ord that that & /ould reI/or* reI/or* it a 2it and to assist him in his e=orts to continue the /or* teaching The Dance? The Dance is here htt"///?>ore:>actor.?comsho/thread?"h"PtQ$$1!4 ostas#'s thread is here htt"///?>ore:>actor.?comsho/thread?"h"PtQ$31$#6 Disclaimer The Author o> this manual has no relation to the trader *no/n as ostas#; and is NOT res"onsi2le in AN8 WA8 >or /hat is taught on that thread and acce"ts NO lia2ilit. in an. /a.; sha"e; >orm or >ashion >or /hat occurs on that thread?
What this manual DOES NO coer" This manual's "ur"ose "ur"ose is to clean u" a 2it some o> the the rules and the 2asics o> The Dance >ore: trading strateg.? strateg.? &t is NOT a ,s.stem- and reBuires the reader to actuall. learn to trade? 7ut the re/ards >or that learning are staggering indeed /ith an average o> increase dail. "ossi2le until the account 2ecomes large enough that liBuidit. 2ecomes an issue? &T DOES NOT include AN8 o> the ,advanced- rules though some are alluded to in the sections /here using ,Wic*s- is mentioned and a nd others? 8O 8O can also gure out out the advanced rules sim"l. sim"l. 2. their names &9 .ou .ou are /illing to s"end some time in the Simulator and in trading Demo >or a /hile The Advanced Rules; Rules; i> & ever decide to ma*e ma*e them "u2lic a>ter m. e:"erience at
teaching >or >ree at 99; are sing Dail. Wic*s >or entries and e:itsF; sing %ourl. Wic*s and Long Wic*s >or entries and e:its; %ome On The Range trading ranging mar*etsF; Scoo"ed trading strong reversalsF and (ing (ong learning to trade the ,"ing "ong- area on the %#; D# and SO0ET&0ES the 0#5 charts?F There are are a >e/ more; 2ut 2ut &'m doing T%&S revision revision e:clusivel. to *ee" m. ,/ord,/ordthat & /ould do one and give it >or >ree as /ell? & still DO NOT *no/ /hat & am going to do .et; a>ter the asco at 99; 2ut & /ill @ust *ee" mastering m. strateg.; ma*ing mone. and learning and hel"ing 9OR 9REE; a >e/ /ho have as*ed as*ed me to hel"? & W&LL NOT 2e acce"ting an.one an.one to mentor /hich is also 9REE /hen & do itF?
he #ules: 7e>ore /e 2egin the rules section; .ou need to ma*e some decisions a2out .our trading right no/; right right here? &> /hat .ou are are loo*ing >or is a never >ail; >ail; "oint and clic*; automated; does it all >or .ou sort o> thing; "lease don't trade at all; &m not sa.ing don't trade The Dance; &'m sa.ing nd something else to /aste .our mone. on? &> /hat .ou /ant is reall.; reall. high "i" counts; "lease move on? That is NOT the "ur"ose o> The Dance? &> .ou /ant to trade trade ever. signal .ou see; move move on to some other strateg. or s.stem? The Dance is not >or .ou? &9 .ou /ant to learn to trade a sim"le s.stem that is >airl. eas. to learn; lea rn; ma*e ma*e lots o> mone. and never need more more than 6 "i"s a da. to do it? Welcome Welcome home; this is the "lace? With time; .ou /ill also get get to the larger "i" "i" counts and to /here /here .ou can ma*e a lot more trades; 2ut the 9&RST thing .ou have to do is master ONE strateg. and no more than t/o or three t."es o> entries and NEMER var. >rom them? T%AT T%AT is /hat "ro>essional "ro>essional trading is a2out? a2out? A disci"lined a""roach to trading that consistentl. earns earns .ou income income and /ealth? %ere are are the rules? rading imes: #? Trade ONL ONL8 8 during during the London$ the London$ N% Oerla& or (SD "airs? (SD "airs? $? Trade ONL ONL8 8 during during the Asian$London Oerla& or )*% "airs? "airs? 3? Trade ONL ONL8 8 during during the +ran,urt or E(# E(# "airs? "airs? #? O2viousl. some some "airs t more more than one one session? Loo* u" the times on .our o/n? Do SO0E /or*+ /or*+ & use Eur".; K2"sd K2"sd and Aud". 2ut onl. onl. ONE on a chart at a time? &t has m. TOTAL TOTAL attention /hen & trade; trade; /hichever one it is? ime +rame: -" -. /inute charts ONL% ONL% or all entr0 entr0 signals" #? The other charts are are >or direction direction and ne ne tuning the entries and e:its e:its as needed? $? The ti"s o> /ic*s /ic*s on %#and %#and D# are great SR Levels to ta*e ta*e trades trades o= and >or e:its? 3? Onl. ,Touch,Touch- trades are are acce"ta2le on %# and D# and and should also match (A on 0#5? Chart setu&:
#? No more than ONE ,main,main- chart set to 0#5 and t/o smaller charts charts >or each ,main- currenc.? currenc.? Smaller charts chart s are set to %# and one to D#? 05 is ONL8 ONL8 used to ,ne tune- an entr.; 2ut DO NOT NOT use it in the setu"? Learn to change change the T9 on the 0#5 to use use it? Entries: #? rade WI1 the 2trend o> 2trend o> the moment- +O# ALL trades ALL trades and assume the trend /ill continue >rom the "revious session on the rst entr.? entr.? &> .ou 2ecome reall. "rocient; .ou /ill learn to trade ,ranging- and Scoo"ed " areas as /ell; /hich are discussed later? 3" he .4 E/A E/A with the 5. S/A moing aerages aerages determine the trend or the moment on /-.! #? Loo* >o >or longs ONL% /hen /hen (rice; is a2ove the 56 E0A 35 S0A Lines? $? Loo* >or >or shorts ONL% /hen /hen (rice; is 2elo/ the 56 E0A 35 S0A Lines? 5" NO E6CE*IONS E6CE*IONS or beginners! *rice and 1E .4E/A$ 5. 5. S/A /(S A7#EE WI1 1E #ADE8 *#E+E#A9L% +#O/ A *(LL 9AC O the .4 or 5." 5" 2ouch 2ouch rade rade Entries; Entries; #? a,en o< o a stee& 5. S/A are onl. acce"ta2le &9 (rice has have moved at least #5 "i"s in the direction o> the trade; and o""osite the ,touch- /hich is a short; ver. >ast ,run u"- or ,run do/n- to the Lines? e:"lained in the "rice action sections?F #? ,Touch ,Touch TradesTrades- o= the 35 S0A S0A and 56 E0A are also also ver. eas. to see 2ut 2ut 0ST 2e ta*en ONL8 i> the E0As are "arallel or ,on to"- o> each otherF and at a stee" angle; sa. a2out $6 Degrees or more as sho/n later in this manual? 7e MER8 MER8 care>ul i> the. are are nearl. horiHontal as the the trade is much much /ea*er? $? A ,Touch,Touch- 2. denition is usuall. onl. t/o or three three 2ars in the the reverse more and most o> the time onl. one or t/o? #? &> there there are lots o> smaller smaller 2ars 2ars as "rice a""roache a""roaches s the lines; lines; DO NOT ta*e the trade; /ait >or "rice to demonstrate res"ect >or the line or constrainment? 3? %igher Time Time 9rame 9rame ,touch- trades trades against an. 0A are MER MER8 "o/er>ul? LOO 9OR T%E0+ $? a,en o< a stee& -4 E/A must also 2e a2ove the 56 E0A 35 S0A Lines >or longs and 2elo/ >or shorts? #? ONL8 ONL8 trade the ,touch- o> the #6 #6 E0A &9 it is the 9&RST or SECOND 2ar in the retrace; it has a MER8 STEE( angle see e:am"le later in manualF; "rice has moved a strong ,distance,distance- o> more than than #5 "i"s and .ou trade it EACTL8 at the ,touch- /ith no more then !I## "i"s SL? $? TWO BAR RULE >or #6 E0A ,Touch TradesTrades- is sim"l. this? &t is a ,retrace,retrace- trade and normall. the E0A is at a ,ver. stee"- angle o> a2out 5 degrees or more AND ta*es no more than TWO large 2ars to ,get there- to ,touch- the #6 0AF and the retrace should 2e almost vertical or .ou should "ass on the trade and /ait >or (A to reveal /here (rice is reall. going? 3? On 0#5 0#5;; "ric "rice e must ALSO have ALSO have moved over #5 "i"s 2e>ore the retrace to the ,touch- entr.+ ? %igher Time Time 9rame 9rame ,touch- trades trades are MER8 MER8 "o/er>ul? LOO LOO 9OR T%E0+ T%E0+ ? I+ %O( /ISS ONE; ONE ; DO NOT chase it or ta*e the entr. ,late- /ait >or another one; there are lots o> trades to ta*e? Ta*ing late entries /ill onl. increase .our ris* and >rustrate .ou?
5? 2Constrainment rades; are rades; are ne:t ne:t 2est signals against the 35 or 56? The. can also ha""en at the #6 E0A @ust 2e more care>ul /ith the ones o= the #6 E0A and use tighter sto"s? #? 7. denition ,constrainment- is a series series o> 2ars 2ars that ,res"ect,res"ect- a s"ecic s"ecic moving average in the Strateg. Strateg.?? suall. the 35 or 56 2ut can can 2e the #6? $? O>ten O>ten these occur occur /ith several several smaller smaller 2ars 2ars 2eing ,constra ,constrainedined- 2. the moving average involved and are Buite clear to see? 3? Constrainment ALWA%S has at least three bars in bars in the setu" and o>ten several more? Counter rend Entries: NO #ECO//ENDED AND NO NECESSA#% +O# 7#EA 7AINS! Still; in a later section /e do discuss discuss them a 2it? /a=imum Number o rades!: NO E6CE*IONS E>E# !!! #? 0a:imum 0a:imum o> 5 success>u success>ull trades? trades? K&ME &T &T A REST REST a>ter a>ter that that and s"end s"end some time doing something else; KET A L&9E a"art >rom trading? $? 0a:imum o> 3 Losing Trades? LEARN to sto" and get over it+ #? Three Three TOTAL TOTAL (ER SESS& SESS&ON+ ON+ $? 0A&00 0A&00 O9 TWO TWO &N A ROW; then /al* /al* a/a. a/a. and get get a >resh >resh "ers"ective+++ Sto& Loss: #? Sto" Losses Losses need to 2e ,adeBuate,adeBuate- and that means di=erent SL on di=erent currencies? currencies? &> .ou nd .oursel> using using more than #5 "i"s "i"s consistentl. >or the SL; .ou need to rene .our entries? $? 0ove the SL to to 7E as soon as .ou .ou >eel the trade /ill not ta*e ta*e out .our SL on a ,2reath?3? A good "lace to set .our original original SL is S"read S"read @ust a cou"le o> o> "i"s 2elo/ or a2ove the "revious ,round ,round num2er- or ema that "rice touched and moved a/a. >rom? 7e sure to include the s"read? ? EE* 1E/ I71!: During I71!: During a move; *ee" the the SL reasona2l. reasona2l. tight? 0eaning move it to the 2ottom or to"F o> the last 2ar each time one closes until .ou get strong /ith this strateg.? strateg.? This is es"eciall. im"ortant im"orta nt /ith AN8 sort o> (A 2ar that might indicate a reversal; Tighten to the close o> the (A 7ar immediatel.+ *ro?t argets: #? Though Though there there is no s"ecic T( in this strateg strateg. . other than than the rst #5 "i" T( set in the the scri"ts? A>ter that is hit the 2est 2est /a. to loc* in "rots is to move .our SL to the e:treme o> the "revious 2ar s"read and /ait >or the current current 2ar to close? The onl. e:ce"tion e:ce"tion to this is /hen a""roaching a""roaching a ,round ,round num2er- level or a stronger E0A li*e the 56 E0A 35 S0A Lines on a retrace? Tighten .our sto"s at those levels as "rice has a nast. tendenc. tendenc. to reverse reverse at them? The other o"tion; /ith more more e:"erience e:"erience /ill 2e to e:it and immediatel. immediatel. short at that that ,rst touch- o> the 56 E0A 35 S0A Lines? $? &> it 2ecomes a""arent a""arent .ou .ou are in a ranging or cho"". mar*et; mar*et; @ust 2e a 2it more care>ul and loo* onl. >or solid entries 2ased on SR levels such as the Round Num2ers and constrainment o> the lo/er level E0As; usuall. around a ,round ,round num2er- or "revious (A or SR level? 3? DO NO 9E A+#AID O AE %O(# *I*S EA#L% there will be more trades! 8ou trades! 8ou don't have to *noc* it out o> the "ar* ever. time to 2e ver. "rota2le /ith this strateg.; and it ta*es e:"erience e:"erience to master the longer trades? Ta*ing a Buic* $6 or so on a move is com"letel. acce"ta2le and .ou W&LL get 2etter as time "rogresses?
? &> (A indicates a reversal reversal 2et/een ,round ,round num2ernum2er- levels; get out+ out+ There /ill 2e more o""ortunities? 5? N+* DA%S @non arms &a0roll and &a0roll and heav. ne/s da.s can 2e un"redicta2le? sing the scri"ts /ill hel" a lot; 2ut latel. & have 2een ignoring the ne/s releases in >avor o> the ,>actored in alread.- a""roach /here /here & @ust acce"t that the ,mar*et- has alread. ,>actored ,>actored in- the ne/s and /hat it "ro2a2l. /ill 2e? With such high "ro2a2ilit. entries and short SLs Ne/s is much less o> a concern to me latel.? Loc,ing in *ro?ts: #? DO NOT change change the entr. entr. scri"ts unless .ou .ou have alread. alread. mastered mastered The Dance and have enough e:"erience e:"erience to ma*e ma*e that decision? The. are ma:imiHed >or "rota2le consistenc.; NOT huge "i" counts? $? 7e cautious in moving .our SL too aggressivel.; aggressivel.; 2ut *ee" it no >arther 2ac* than the 2ottom or to"F o> the second 2ar 2ac* >rom current current "rice action and "re>era2l. no >arther 2ac* than the last 2ar 2ottom or to"F? 3? &> .ou have an e:tremel. large 2ar; 2ar; move the SL to the @ust 2elo/ the last ,Round ,Round Num2er- it "assed land /atch "rice movement ver. closel.? closel.? &> it hasn't .et "assed a Round Num2er level; move to slightl. less than 46 4 6 o> the 2ar's total and /ait? &t /ill either continue to e:"lode or retrace "rett. ra"idl. and ta*e out .our sto"? LARKE 7ARS RETRACE RETRACE O9TEN; so don't hesitate to ta*e .our "i"s 2e>ore it hits the SL .ou are trailing AND SE T%E ,round ,round num2er- levels+ ? &> a large large 2ar ,dead ends- at a stronger stronger E0A; or a ,round ,round num2er- level; move .our SL ver. close to the the level? (ro2a2l. (ro2a2l. a2out $ times S"read S"read or less and /ait? &> the move move is strong; strong; it /ill /ill continue and and 2lo/ through through "rett. Buic*? &> not it /ill ta*e out .our sto"? #anging$ Consolidating /ar,ets: #? The The 56 56 E0A E0A 35 35 S0A S0A Lines have a strong tendenc. to either ,/ind- around each other and ,Jattening- /hile stic*ing close to each other during a "eriod o> consolidation or ranging? ranging? On ,ranging,ranging- da.s .ou /ill /ill o>ten see "rice also /ind around them and give .ou denite o""ortunities to enter at solid SR levels or at Round Num2er levels on either side o> the 56 E0A 35 S0A Lines? $? 7e ver. cautious in these mar*ets mar*ets unless .ou are are e:"erienced /ith this strateg.? strateg.? Wait >or 2etter signals i> not e:"erienced? e:"erienc ed? 3? &> .ou do trade trade them; the scri"ts scri"ts /ill hel" hel" .ou mitigate mitigate ris* amaHing amaHingl. l. /ell? ? 0OST o> .our entries in a ,ranging,ranging- mar*et mar*et /ill 2e against against the #6 E0A and the move to 7E 0ST ha""en immediatel. a>ter the rst "osition is closed cl osed at the T( o> #5 "i"s+ Com&ounding: The Scri"ts allo/ .ou to use use ,com"ounding- ver. easil.? easil.? DO NOT reIset the the ris* in the scri"ts unless .ou have lots o> e:"erience e:"erience and do not ,com"ound,com"ound- .our trade siHe more than ONCE "er DA8 DA8 at the END o> the da.? da.? Tr.ing to com"ound an. >aster >as ter /ill more than li*el. cause .ou "ro2lems?
Additional Considerations and De?nitions Additional Considerations: Things Considerations: Things to learn as .ou "rogress "rogress and denitions denitions o> terms used in this manual?
Currencies #? Though Though this document document used the the K7(SD K7(SD and the ER(8; ER(8; an. set set o> currencies .ou are com>orta2le com>orta2le trading is acce"ta2le? (re>era2l. (re>era2l. one /ith lo/er s"reads s"reads and certainl. nothing /ith /ith a s"read over 5? The larger the s"read; the more more the trade must move 2e>ore .ou reach reach 7E? That increases .our ris* "er trade? $? se onl. t/o currencies currencies during the learning "hase? 8ou ma. increase the num2er as .ou see t as as .ou gain more more e:"erience? 7ut 2e sure sure to *ee" .our .our screen and charts ,clean,clean- so .ou can see clearl. as (A develo"s? News: New s: SA% SA% O(! #? DO NOT NOT trade trade during during Ne/s Ne/s?? $? &> .ou are are alread. &N a trade during during the hal> hour hour 2e>ore 2e>ore Ne/s; AND in good good "rots /ith some loc*ed in; .ou might sta. in and tighten .our sto" loss 2ut 2e care>ul? NO SL is guaranteed during ne/s? 3? &> .ou are are NOT in a trade 36 minutes "rior to ne/s; ne/s; WA&T WA&T >or the ne/s ne/s and then WA&T >or (rice (rice to ,settle do/n- a 2it 2e>ore .ou ta*e a trade? That can 2e as little as 5 minutes a>ter a>ter the ne/s; or as long as 36? DON'T RS% &T+ 9a*eIouts #? 0OST >a*eout >a*eouts s occur 2ecause 2ecause o> a violation violation one o> the rules rules >or entering entering a trade? DO NOT M&OLATE T%E ENTR8; ENTR8; T&0E; SessionCurrenc. SessionC urrenc. correlatio correlations ns OR T&0E 9RA0E 9RA0E RLES+ $? &n addition; addition; this this is the the "ur"ose "ur"ose o> moving moving the the SL to 7E 7E ASA(+ This strat strateg. eg. "rovides /a. more more than enough o""ortunities to trade? Avoiding Avoiding the Loss is as im"ortant as catching the good moves; @ust don't let ,>ear- get to .ou? 3? 9a*eIouts usuall. usuall. occur around around levels o> resistance; such as the lo/er E0As /hen the. a""ear to 2e counter trend and close to Round Num2ers /here "rice is slo/ing; so @ust /atch out >or them? ? DON'T 9ORC 9ORCE E A TRADE+ TRADE+ Wait Wait >or a "er>ect "er>ect setu" to enter+ enter+ 5? NEMER ta*e ta*e a "rice action 2ar counterItrend counterItrend 2. itsel>? itsel>? &t 0ST also meet all other criteria; such as a""earing at a SR level; a 2ounce o= an 0A or ,round ,round num2er; or a""ear A9TER a signicant move a/a. >rom the 56 E0A 35 S0A Lines; o>ten the. need another conrming 2ar; or >or the area to 2e "reviousl. "roven as an SR level? Denitions Denitions are used on the charts in discussion o> (rice 0ovement? #? ,#ound NumbersNumbers- are the lines o> SR dra/n on the charts at areas o> signicance such as the ?66 and ?56 levels? $? ,9ounce9ounce- is /here a candle hits and retreats retreats at least # "i" >rom an area o> Su""ort Resistance? Resistance? #? Almost Almost al/a.s al/a.s indicates indicates a revers reversal; al; even i> it is onl. onl. a >e/ "i"s "i"s i> it is also a ,dead end- at a round num2er or a stronger stronger 0A such as the 56 E0A 35 S0A Lines? 3? ,Dead EndEnd- is /here a candle sto"s ,dead- at a level o> Su""ort Resistance /ith no /ic* through it? #? Almost Almost al/a.s al/a.s indicates indicates a revers reversal; al; even i> it is onl. onl. a >e/ "i"s? "i"s? ? ,Constrainment, Constrainment, is /here (A is limited 2. and res"ecting a "articular level o> resistance such as one o> the 0As or a ,round ,round num2er- >or more than one 2ar; es"eciall. i> there are several smaller smaller 2ars involved? O>ten it is a conJuence o> more than one 0A or 0A round num2er? #? Almost Almost al/a.s indicates indicates a direction direction o> movement movement;; usuall. a continuatio continuation n o> an e:isting Trend O> The 0oment? $? The most "o/er>ul entries entries are /hen (rice (rice is Constrained Constrained in one direction direction
a>ter a signicant "eriod o> 2eing ,9lat lined- and the entr. is ta*en o= one o> the stronger 0As? 5? ,rendrend- is the URRE!T direction direction o> (rice a2ove or 2elo/ the 56 E0A 35 S0A Lines and it can change several times in a da.? #? Never violate the Rules Rules o> the Trend Trend OR Counter Counter Trend Trend on Entries+ Entries+ 1? ,Counter rendrend- is the reversal o> an immediatel. "revious Trend? &t is almost al/a.s "receded 2. either a >airl. strong move )6 "i"s or moreF >ollo/ed 2. a "eriod o> ,constrainment- o> "rice at a SR level and then a reversal o> "rice /hich ma. also 2e a ,constrainment- o> "rice 2. a one o> the lo/er E0As and a round num2er level in the o""osite direction? #? 0OST ,counter ,counter trendtrend- trade trade setu"s setu"s /ill occur A9TER A9TER "rice "rice has moved a >airl. long /a.s >rom the 56 E0A 35 S0A Lines; usuall. over )6 "i"s? 4? ,ConBuenceConBuence- is /here more than one SR indicator has merged or met at a s"ecic "oint on the chart? suall. it is a ,round ,round num2er- and a level o> "rior resistance >rom >rom (A? &t can also 2e /here more more than one 0A has ,2unched u" against each other and ma. include a ,round ,round num2er num2er as /ell? These are KREAT Areas to ta*e a ,2ounce- or ,continuation- trades? )? ,#eest#eest- is /here (rice has alread. moved "ast a SR level and then retraced to that same level AND is re@ected there? !? ,Clear 9rea, - is /here (rice ma*es a thrust through a SR level that is ,signicant;- usuall. meaning several "i"s? #6? ,+irst ouchouch- trades are /here "rice hits either a ,round num2er- level or an 0A that has held as SR strongl. 2e>ore and .ou trade &00ED&ATEL8 in the o""osite direction moving to 7E as Buic*l. as "ossi2le to ma:imiHe the trade? O>ten these trades trades are good good >or Buite a 2it o> "i"s; 2ut @ust @ust as o>ten the. are onl. good >or a2out #$ to $6 "i"s; so /atch them closel. >or the e:it? #? T%E 7EST ,9&RST TOC%TOC%- trades trades are are al/a.s at the 35 S0A and and can 2e on AN8 o> the >our time >rames /e loo* at >or ne tuning our entries? The higher the time >rame is; the more signicant the ,touch- /ill 2e in indicating a reversal? ##? ,+lat LinedLined- is /hen (rice moves in an e:tremel. narro/ narro/ range; usuall. less than $6 or 36 "i"s u" or do/n total? DO NOT TRADE this area o> chart activit.? activit.? The onl. e:ce"tion e:ce"tion to this is i> "rice is /inding around the 56 E0A 35 S0A Lines in a /ide enough range o> at least 56 "i"s to give .ou ,room>or a trade at the SR levels? #$? ,/oing Aerage Sou&Sou& - or ,/A ,/A Sou&"Sou&"- This is an area area /here /here the E0As are all 2unched u" together; usuall. also ,stuc*- 2et/een or ver. close to the 56 E0A 35 S0A Lines and demonstrate no direction >or a trade? This is a ,STA8 ,STA8 OT- area; do not trade it? O>ten the lo/er E0As get ,stuc*- 2et/een a stronger 0A and a round num2er level? #3? ,*rice ra&ra&- is /hen "rice is ,stuc*- or ,tra""ed- 2et/een t/o or more areas o> SR as mar*ed 2. the ,Round Num2ers- or one o> the stronger 0As /ith a level o> SR indicated 2. "rior (A? Normall. ha""ens 2et/een the 35 S0A and the 56 E0A on 0#5 or or %#? 7rea*outs 7rea*outs tend to 2e e:"losive? e:"losive? #? ,Wic,edWic,ed- "ronounced ,/ict-F is an area o> the chart /here (rice 2ars have ,/ic*s- ever./here on 2oth sides and it's starting to loo* li*e a "orcu"ine? DO NOT TRADE TRADE T%&S AREA; WA&T WA&T >or "rice to settle do/n; do/n; or to start to trend 2e>ore even considering a currenc. currenc. li*e this? #5? ,CO9CO9- is ,Close o> 7ar?#1? ,Washed OutOut- A "rior SR level re"resented re"resented 2. a 0A 0A or a round round num2er 2ecomes ,/ashed out- and not immediatel. usa2le as SR /hen "rice has crossed it and reIcrossed reIcrossed it several times in the immediate "ast on the chart? ,Washed ,Washed Out- SR levels should 2e 2e ignored in this strateg.; strateg.; 2ut the. 2ecome valid again ver.; ver. Buic*l.?
#4? ,Wic, hroughhrough- is /hen "rice hits a level o> SR and "ushed through it 2ut closes on the side o> the the original move? The Longer the /ic*; /ic*; the more cautious .ou should 2e a2out a trade here? #)? ,Wic, O< - is /hen a candle hits a SR level; then retraces >rom >rom it as in the case o> a ,"in- 2ar? A ,/ic* o=- is also a ,re@ection- o> "rice at that level o> SR and o>ten indicates either a continuation o> the original ,Trend,Trend- or a reversal o> it; de"ending on /here this ha""ens? #!? ,*orcu&ine*orcu&ine- is an area o> "rice /here there there are lots o> >airl. long /ic*s on 2oth sides o> the candles? candles? O>ten the candles have have /ic*s on 2oth side o> a single candle? SA% O( AND DO NO #ADE 1E *O#C(*INE" $6? ,ri&le o&o&- or ,Double ,Double o&o&- is /here t/o or more candles hit and sto" at EACTL8 the same "rice "oint on a chart one right a>ter another? ,ri&le 9ottoms9ottoms- and ,Double ,Double 9ottoms9ottoms- are the same? 8ou ma. use the standard denition as /ell; 2ut >or this strateg.; /e are loo*ing >or immediate "rice action; SO0ET&0ES SO0ET&0 ES cou"led /ith "rior (A? These o>ten occur at a Trend Trend o> the 0oment continuation; or a reItest on a reversal? $#? S$# Leels are Leels are most clearl. visi2le 2. loo*ing at the recent "ast on the chart and using the 2idas* lines to ,see- them more clearl.? clearl.? 8ou ma. also Hoom /a. out to see and mar* one or t/o >rom the "ast t/o da.s at the a2solute most? DO NOT clutter u" .our charts charts /ith lots o> SR SR Levels+ $$? E=haustion bars and Suat 9ars are 9ars are ver. small 2ars that are usuall. >ound at the turning turning "oint in a trend trend or a s/ing /ithin a trend? trend? suall. the. are ver. >e/ "i"s; "i"s; "ro2a2l. no more more than a2out 5 to #6 total? & also call these ,tin. 2ars- in that the. can o>ten 2e even less and loo* e:actl. li*e a ,"in- or a do@i? When there is a cluster o> these ,tin. 2ars2ars- 2eing constrained 2. one one o> the higher 0oving Averages; the 35 56 lines; the. almost al/a.s indicate a >airl. large move in the direction o> the constrainment? constrainment? The. are ver. solid indicators o> "rice reversals? reversals? &n later sections /e tal* o> (A and ho/ to ta*e advantage o> it on 0#5; es"eciall. /ith a 2ounce o= one o> the the Round Num2ers Num2ers and stronger stronger 0As? Standard (A (A 2ars such as (in 2ars; Do@is; S"inning To"s; %ammers %anging 0an and Outside 7ars /or* @ust ne on 0#5; @ust don't hang .our hat com"letel. com"letel. on them alone? There must 2e conrmation o> some sort >or each (A 2ar used? The Trend Trend O> The 0oment as dened 2. the 0oving Averages and "rior (A "rovide that conrmation? Additional #esources: &> .ou a2solutel. must read more; here are some great threads on 9ore:9actor.?com? ames#1 (rice Action Action Thread? huge huge threadF htt"///?>ore:>actor.?comsho/thread?"h"PtQ$33# ac*o's 9ore: 9ore: %ouse %ouse o> (leasure (leasure and (ain (ain trend trading; trading; also a huge threadF threadF htt"///?>ore:>actor.?comsho/thread?"h"PtQ$4$)1 No 7rainer Trades su""ort and resistance tradingF htt"///?>ore:>actor.?comsho/thread?"h"PtQ)1$! Trade Trade What 8ou 8ou See; Not What 8ou 8ou E:"ect the. ma*e ma*e huge "i"s here; here; 2ut a 2it com"licated >or m. taste?F htt"///?>ore:>actor.?comsho/thread?"h"PtQ#$#41# There are are more; 2ut /h. /h. con>use .oursel> /ith them them /hen the sim"lest strategies strategies are al/a.s the 2estP 2estP These resources resources should 2e all .ou need?
8ou 8ou ma. also read read m. original thread thread at 9ore:9 9ore:9actor.; actor.; and & a"ologiHe in advance advance >or the /a. it ended /ith >alse accusations >rom a 2unch o> neanderthals and an idiot site admin /ho never chec*ed out an. in>ormation; @ust /ent along /ith his cronies accusing me o> 2eing someone &'m not? This manual and the 2asic strateg. strateg. is >ree >ree >or all to use and change; ada"t or modi>. as the. see t to hel" them master master their trading? No mone. is or has ever ever 2een as*ed >or it; e:ce"t 2. some >raudster on E2a. >rom an eastern Euro"ean countr.? The strateg. is and al/a.s al/a.s has 2een and al/a.s al/a.s /ill 2e 9REE to all?
he Sim&li?ed #ules Sim&li?ed #ules: This strateg. is e:tremel. e:tremel. sim"le? EE( EE( &T S&0(LE +++ This strateg. is NOT NOT com"licated; DO NOT com"licate it? The 2asic rules are sim"le? sim"le? DO NOT com"licate com"licate them either? #? Chart is 0#5 ONL8 ONL8 >or all decisions? T%E ONL8 ONL8 e:ce"tion e:ce"tion is the ,touch- trades on D# and %# /hen the. ha""en++ #? 05; %# and % are are >or >or clarifcation o> overall trend and rening entries and e:its? NOT trade determination E"E#T $%en price is a&out to 'touc%( t%e )* +MA on one o> them? 05 is not "art o> the setu"? $? Trading Time Time is a session ,overla",overla"- "eriod o> t/o mar*ets mar*ets one one o> /hich covers at least one countr. o> the currenc. currenc. "airs .ou have chosen to trade? 3? Entries are ALWA%S at ALWA%S at either a SR level re"resented 2. one o> the Round Num2ers; a re@ection o= one o> the 0oving Averages Averages or a round num2er ta*en at the ,Touch- onl.F AND a AND a (rice Action 7ar O# constrainment O# constrainment in these areas /ith several smaller 2ars? #? ,ConJuence- o> multi"le 0As or 0As and SR levels are are ver. strong entr. "oints? $? Entries can 2e either on on a ,Touch,Touch- &9 that ,touch- is a ,Touch- /ith a stee" angle; or a series o> small 2ars ,constrained- 2. the resistance o> one o> the Round Num2ers; 56 E0A 35 S0A stronger stronger 0As; or a reItest o> the 3556 lines or #6 E0A on a reversal or continuation entr.? #? TWO BAR RULE >or ,Touch Trades- o= the 0#5 #6 E0A; is this? &t is a ,retrace,retrace- trade and normall. the E0A is at a ,ver. stee"- angle o> a2out 36 to 5 degrees or more AND ta*es no more than TWO large 2ars to ,get there- to ,touch- the #6 0AF and the trade is almost a vertical retrace or .ou should "ass on the trade and /ait >or (A to reveal /here (rice is reall. going? The SL is a2out #$ "i"s? $? ,Touch ,Touch TradesTrades- on 0#5 o= the the 35 S0A and 56 E0A are are also ver. eas. to see 2ut 0ST 2e ta*en ONL8 i> the E0A is at a reasona2l. stee" angle; sa. a2out $6 Degrees or more as sho/n later in this manual AND (R&CE 0ST have moved at least #5 "i"s 2e>ore the retrace ,Touch- occurs? suall. three are no more than three 2ars ,to get there?- (ass on trades /ith lots o> ,smaller- 2ars to ,get there?3? Constrain Constrainment ment trades trades are are al/a.s good good on either time time >rame 2ut 2ut the %igher Time 9rames are e:tremel. "o/er>ul? ? /a=imum o> /a=imum o> ve success>ul trades "er session or three losing trades "er session or t/o in a ro/ ro/?? T%EN STO( and get a >resh >resh "ers"ective+ "ers"ecti ve+ DO NOT trade /ithin the ne:t hour at least; 2est to sto" >or the da.? NO
E6CE*IONS +++ E6CE*IONS +++ 5? SL is never more more than #! "i"s and o>ten Buite a 2it less /ith e:"erience; i> .ou have entered "ro"erl.? 1? 0ove to 7E # # as soon as "ract "ractical ical /ithout /ithout cho*ing cho*ing out the the trade trade 2ut denitel. a>ter the rst T( is hit >or #5 "i"s? #? To allo/ trades to ,run ,run- move the SL to the last candle's candle's e:treme e:treme S"read and #"i" NO 0ORE + 4? The E&T is govern governed ed 2. (rice; (rice; SR levels and the the Round Round Num2ers Num2ers e=clusiel0? e=clusiel0? &> "rice ,2lo/s throughthrough- the ne:t Level; Level; stic* /ith the trade and move u" .our SL; leaving some 2reathing room? room? #? &> "rice 2egins to hesitate at a round round num2er or close to one; ma*e sure sure .ou are at least at 7E and decide /hether /ait it out and "ossi2l. get le>t /ith onl. one "i"; or ta*e /hat .ou have and loo* >or another trade+ $? &> it has ,2lo/n ,2lo/n throug through h AND CLOSED CLOSED "ast a round num2er; move .our SL to NO 0ORE than S"read #"i" short o> the last round num2er or 2ar that /ent through it and /ait? 3? &> (rice starts starts to reverse reverse /ith a (A 2ar; get out out and /ait >or an entr.? entr.? ? Long 2ars 36 "i"s "i"s or moreF o>ten retrace Buite a 2it? Consider ta*ing .our .our "i"s i> a large 2ar hesitates; ES(EC&ALL8 at an SR Level? ." Learn Learn to trail 0our sto&s! sto&s! )? Trade ONL8 ONL8 W&T% T%E TREND unless unless .ou have alread. alread. mastered these these 2asics++ #? Counter Trend Trend trading is >or ONL8 ONL8 e:"erienced traders /ho have mastered mastered the 2asics 2as ics alread. al read.?? !? Never trade trade the ,"orcu"in ,"orcu"inee- Jatlined Jatlined areas areas o> "rice action action or ,0A Sou"- ++ #6? Do not trade Ne/s+ &> .ou com"licate it more than this; it /ill ta*e .ou >ar longer to master this strateg.? strateg.? Once .ou have read this manual; and mastered these 2asic rules on this "age; then .ou can move on to more aggressive aggressive entries such as trading during ,cho"".mar*ets as long as .ou do not trade the ,"orcu"ine- it $ill *ill .our account? THE CARDINAL RULE:
DO NOT ENTER NLESS T%E CANDLE &S TOC%&NK A L&NE+ T%&S ASSRES T%E LOWEST LOWEST R&S (OSS&7LE ON T%E TRADE TRADE AND T%E &CEST 0OME TO 7E W&T% (RO9&TS+ A word about 2Batlined; areas" There are are some /ho tal*ed tal*ed a2out ,Jatlined- areas areas as "resenting "resenting good trading o""ortunities as "rice esta2lishes a ,channel- o> sorts /ith a high a2ove and a lo/ 2elo/ the 3556 lines? While this does ha""en; and in other strategies /here /here 2rea* 2rea* outs are used; it /ould 2e a great g reat "lace to loo* >or 2rea*outs; 2rea*outs; The Dance DOES NOT use 2rea*outs 2rea*outs and tr.ing to use them /hen .ou are starting out /ill onl. con>use .ou? Leave them alone until .ou .ou have lots lots and lots o> e:"erience? e:"erience? The. reBuire reBuire 0C% larger SL settings than The Dance uses?
(sing *rice Action
(rice Action is used in t/o /a.s in this strateg.? strateg.? 9irst are the normal (A 2ars descri2ed immediatel. 2elo/; /hich can 2e used on an. time >rame; 2ut here /e are interested onl. in the 0#5 charts? (rice action is the most relia2le o> all indicators in determining momentum and direction in trading? trading? (rice action can indicate relia2l. relia2l. "rice reversals reversals and continuations? All other indicators indicators are are 2ased on "rice action in some some >orm? >orm? &n this strateg. /e /ill 2e loo*ing "rimaril. at a >e/ standard (rice Action setu"s to assist us in ltering the moves /e ta*e? ta*e? ust *ee" in mind that on 0#5 (A though though ver. strong; can turn literall. on a dime and give .ou change? The rst 2ars /e loo* >or are (in (in 7ars and Do@i 7ars; 7ars; that are accordin to our de-nition; then &nside 7ars; and Outside 7ars; in that order; 2. the /a.? /a.? These are the "rimar. indicators /e /e /ill 2e loo*ing >or to determine determine most entries? LOO 9OR T%E (A+ The 0oving Averages Averages are >or determining i> the (A is valid >or a trade? 8ou 8ou must have 7oth (A (A in the right direction direction o> the trend and and a 2ounce or constrainment >or a trade to 2e valid+ OUR .E/0!0T0O! O/ #0! BAR+
(in 7ars and Do@i 7ars are Candlestic* 2ars /hose ,2od.- is both inside and smaller than the bod0 o the &receding bar and bar and have a longer ,u""er /ic*than ,lo/er /ic*?- O>ten these these 2ars are ver. ver. small? &n addition; it has an area area /ith ,room,room- around it on all sides; meaning that there is lots o> em"t. chart s"ace immediatel. to the ,"ast- o> the 2ar? 2ar? Loo* at the "receding charts as /ell as the ones that >ollo/ and .ou can see lots o> them at the turning "oints? 7E ETRE0EL8 CARE9L o> trades using ,"in 2ars- that are not e:actl. "er this denition here? The >ollo/ing are images images o> some o> the more more common versions o> o> (rice Action as the. a""ear in real charts? *in 9ars: These are 2ars 2ars ver. similar to the Do@i; e:ce"t e:ce"t that the o"en o"en and close are are at di=erent "rices? The correct correct (in 7ar >or our "ur"oses is one where the bod0 o the *in is inside the bod0 o the &reious bar as bar as seen 2elo/? 0ost o>ten the 2est trades have the 2od. o> the signal (in 7ar closer to the to" o> the "revious 2ar 2ar as seen here here 2elo/ and are >airl. >airl. short candles over all? O>ten the. are less than #6 "i"s?
The last image is included to demonstrate demonstrate that (in (in 2ars ma. come in multi"les? 7e sure that /hen entering on a (in 2ar that it agrees /ith the Trend or a 2ounce in direction o> the trend? trend? One could have entered entered on either o> the t/o do/n/ard do/n/ard "ointing red "in 2ars 2ars in the last image? O>ten these t."es o> (rice Action occur occur at or
ver.; ver. close to one o> the ,Round Num2ers- and the larger 0oving Averages? Doi *rice Action 9ars 9ars Do@i 7ars also have the >eature o> not reall. having a ,2od.- 2ecause the o"en and close o> the ,7ar- ha""ens at the the e:act same "rice level? The >ollo/ing are "ictures "ictures o> some ,(in 7ars- according to our denition o> them? The second 2ar is the Do@i? suall. (rice continues continues the o""osite direction direction o> the Do@i? Some sa. .ou should should ta*e a Do@i entr. at the to" /ithout Buestion; 2ut /ait >or conrmation o> the second 2ar closing at the 2ottom? This strateg. agrees agrees /ith that statement? statement? Wait Wait on 2ottom Do@i 2ars >or conrmation 2ars?
Inside 9ars: &nside 2ars are o>ten re>erred to as ,sBuat- 2ars? The. al/a.s are contained /ithin the 2od. o> the "revious 2ar? 2ar? The second or third 2ar is the &nside 7ar or &7?
Outside 9ars: These are 2ars 2ars that com"letel. engul> the "revious "revious 2ar? 2ar? The second or third third 2ar is the Outside 7ar; or O7? &t should 2e o2vious?
(rice Action 7ars are NEMER used alone to enter a trade unless .ou have lots o> e:"erience e:"erienc e /ith this strateg.? strateg.? The. 0ST 2e conrmed 2. either resistan resistance ce levels at a ,Round Num2er;- 2. resistance resistance as seen 2. "rior (A; a moving average; or 2. additional candles in the ,right- direction? Double o&s and Double 9ottoms: The terms ,dou2le ,dou2le to"- and ,dou2le 2ottom- has has a ver. di=erent di=erent meaning in this strateg.? strateg.? 8ou can still loo* >or the ,normal,normal- dou2le to"s and 2ottoms /here "rice has moved to/ard and a/a. >orm an area o> su""ort and resistance over a "eriod o> several 2ars; 2ut >or our "ur"oses in this strateg. /e /ill >urther dene it as t/o 2ars /hich have e=actl0 the same to" same to" or 2ottom? 2ottom? &> the 2ars are also the same
length; it can dene an entr. "oint or an e:it "oint de"ending on it's location on the chart? 7oth 2ars 0ST 0ST have the same EACT EACT to" or 2ottom; 2ut 2ut the can 2e di=erent in ho/ the. achieve that? 9or e:am"le; e:am"le; in the images 2elo/ .ou /ill see some that are 2oth /ic*ed to"s or 2ottoms; some that are 2oth 2od. to"s or 2ottoms and some that are one o> a 2od. and one o> a /ic*? &t is the >act that the. are EACTL EACTL8 the same "rice "oint that tends to indicate the reversal o> "rice? 0a*e sure the signal also agrees /ith the trend and /ith the 0oving averages to achieve the 2est results? The >ollo/ing are dou2le dou2le to" and dou2le 2ottoms 2ottoms signals? See i> .ou can nd the one not mar*ed?
Dou2le to" and dou2le 2ottom 2ar sets almost al/a.s signal either an entr. or an e:it "oint? As long as .ou are are >ollo/ing the rules o> trading trading W&T% the trend trend o> the moment; and the Rules Rules o> the moving averages .ou should 2e ne? Still; this does ta*e some "ractice to master? DO NO AE A DO(9LE O*$9OO/ SI7NAL 1A CON#ADICS 1E #END O+ 1E /O/EN!!!!!!! /O/EN!!!!!!!
*rice Constrainment: &n our strateg.; /e also use ,(rice Constrainment- trades 2ased on (rice Action /here (rice (rice is ,constrained- 2. a Su""ortR Su""ortResistance esistance level? These ,levels- can 2e either a 0oving Average; a classical horiHontal line o> SR; or and this is the stronger o> themF an area /here (rice is ,constrained , constrained 2. one o> the stronger moving averages; such as the the 35 S0A or the 56 E0A? E0A? This also /or*s /ith /ith the ,Round ,Round
Num2ers- levels ver. /ell and o>ten indicates either a strong continuation trade; or an u"coming reversal signal? The >ollo/ing images are are /here "rice "rice is Constrained 2. either the 5; #6 or 56 E0As? (a. s"ecic attention to those areas in the images /here the 0oving Average constrainment is also accom"anied 2. Round Num2er constrainment? Those areas o> ,constrainment conJuence- and those around the 56 E0A are the strongest entries in the /hole strateg. /e use here and the easiest to see?
Loo*ing >or ,e:haustion 2ars- at areas o> ,constrainment is an e:tremel. strong entr. tactic? &t allo/s >or an entr. /ith an e:tremel. small Sto" Loss; o>ten less than ) or ! "i"s; and also indicates a strong move in the direction o> the constrainment that; as .ou can see is o>ten good >or $6 or more "i"s on the move? & am sure .ou can see @ust ho/ "o/er>ul this ,constrainment- t."e o> entr. is? The a2ove images sho/ some trades trades /here /here there there /ere several o> the ver. small ,e:haustion,e:haustion- 2ars and an. o> them /ould have 2een a good entr. "oint? Additionall.; o>ten the candle /ill ,/ic* o=- o> a ,round num2er- and the 2od. /ill 2e constrained 2. the 0oving Average? Sometimes "rice /ill also ,/ic* o=- o> a higher 0A and the 2od. 2e constrained constrained 2. a lo/er 0A? 0A? &n 2oth cases T%AT T%AT &S CON9&R0AT&ON CON9&R0AT&ON &N ONE 7AR o> the momentum o> the trade as a continuation trade? &n some instances it also indicates a reversal area to /atch >or an entr.? &n these areas there /ill 2e times; as .ou get more e:"erienced /ith this strateg. and using the 0oving Averages /ith the Round Round Num2ers; /here .ou /ill 2e a2le to enter on the ,touch- o> a level or a 0oving average; >urther increasing the value o> the trade?
That; ho/ever ta*es ta*es a 2it o> e:"erience? At rst; .ou should concentrate concentrate ONL8 ONL8 on ,seeing- the trades that are ,constrained- in a "articular direction 2. a CON9LENCE o> the 0oving Averages and the Levels as the. are the strongest? O>ten (A li*e sho/n in this section is used more >or nding e:it "oints than entries in this strateg.; es"eciall. i> the. ha""en at or ver. close to a Round Num2er? Num2er? 9or the most "art; stic* to ,Constrainment- and ,Touch Traces;- .ou'll have a lot more success? NOE: All good constrainment trades hae /O#E than two and oten more than three er0 small bars in the beginning o them! Loo, at the Si=th8 Eighth and Ninth images in the image i mage series aboe or both /A reall0 strong 2lower /A; /A; constrainment trade trade entries" he others o< the .4 are stronger8 but sometimes a little more diFcult to see or a beginner" 2O(C1 #ADES; are ONL% ta,en i the0 ha&&en with NO /O#E than two bars to 2get there";
Chart Setu&: &n this strateg. there there is onl. ONE chart setu"? setu"? Three 0oving averages; averages; a 2ar cloc* /ith s"read; a cloc* to indicate mar*et times and a ,Round Num2ers- indicator? There are are three time >rames >rames used >or each currenc.; currenc.; t/o o> them them used onl. >or conrmation o> Trend and the other >or ne tuning entries? The 0oving Averages are >or trend determination; as /ell as to indicate a Joating level o> Su""ort and Resistance? Resistance? The Round Round Num2ers indicator "laces "laces light lines on the chart to sho/ sho/ areas o> "s.chological im"ortance >or most traders and the Candle Timer is to hel" .ou in "in"ointing the close o> candles candles >or entries? The #6 E0A; the 35 S0A and 56 56 E0A are use as Joating Su""ort and Resistance Levels and to sho/ areas o> ,Constrainment;,Constrainmen t;- ,ConJuence- "oints >or SR and Trend Trend o> the 0oment >or determining entries and and e:its?? The 56 E0A dictates /hether /hether .ou /ill 2e loo*ing >or long or short trades? Adding an. more to the charts /ill onl. serve to com"licate the issue and o"en the door to con>usion and additional o""ortunities >or mista*es? 7elo/ is an image o> the K2"sd chart and one >rom the Eur". >rom a normal da.'s trading? 8ou can see that it Buite literall. is at the end o> the chart; not cherr. "ic*ed?
Notice ho/ (rice res"ects the round num2er levels as /ell as the stronger E0As on the chartP chartP &t is es"eciall. a""arent a""arent on the Eur". chart a2ove? 0ost o> the time; /hen .ou see a reversal; it ha""ened at the 56 E0A; a conJuence o> 0oving Averages Averages or at one o> the round round num2er levels? The chart a2ove is clear evidence evidence o> that? This /or*s on all time >rames >rames on all currencies; currencies; 2ut >or our "ur"oses "ur"oses though; /e /ill 2e re>erring e:clusivel. to the 0#5 charts; these 0oving Averages; and the ,Round Num2er Levels?-
As .ou can see; /ith this strateg. there are lots o> o""ortunities to trade and to trade success>ull.? Tem"late Tem"late sed &n this strateg. includes tem"late titled ,The Dance?- Thro/ it on a chart and have >un? &t reall. reall. &S T%AT T%AT S&0(LE? EE( &T T%AT WA8+ WA8+ Don't go getting >anc. /ith AN8 other other indicators; the. @ust com"licate com"licate things? &> .ou /ant to dra/ the "revious da.'s high resistance o> lo/ su""ort that's ne; @ust don't clutter clutte r u" the charts+ 7T ES(EC&ALL8 ES(EC&ALL8 AMO&D AMO&D OSC&LLATORS; the /ill lie to .ou /aaaaaaa. to o>ten? &ndicators sed #6 E0A; 35 S0A; 56 E0A 0oving Averages; Averages; Round Round Num2ers 7eige; Candle Time S"read; Cloc* and NOT%&NK 0ORE+ DO NOT SE OSC&LLATORS; the. /ill onl. con>use .ou and cloud the (rice Action signals given+
a,ing he rade! 0#5 is not onl. a great great chart to trade on; it's it's a >a2ulous teacher? teacher? &> .ou miss a trade; 2e "atient and .ou /ill /ill get another shot in a little /hile+ /hile+ & have "ersonall. had da.s /ith several "otential trades; /atching onl. a cou"le o> currencies? The >ollo/ing 0#5 chart illustrates illustrates that e:act "oint "oint ver. /ell? The areas circled circled indicate "otential trades over over a t/o da. "eriod? Notice that trades around around the 56 E0A 35 S0A Lines are "articularl. strong trades /hen the. also are used W&T% the trend; /ith constrainment or (A 2ars+
Ever. area circled in the chart a2ove indicates a "er>ect ,2. the rules- "otential entr.? entr.? Thro/ the tem"late on a chart and scroll 2ac*? &t should 2e as "lain as the nose on .our >ace ho/ this this strateg. /or*s? /or*s? EE( &T T%&S S&0(LE; S&0(LE; or don't trade+
Once .ou enter; move to 7E 7E as soon as "ossi2le "ossi2le /ithout *illing the trade? &t /ill ta*e ta*e some time and /or* to get good at this; 2ut it's 2etter to lose some at the 2eginning at 7E # than to to ta*e lots o> losses? &9 .ou do ta*e ta*e losses; Not even one o> them should 2e more than ## or so "i"s; EMER+ sing (rice Action; the 56 0A 35 S0A Lines; the 5#6 E0As and the Round Round Num2er levels to ta*e ,2ounce- trades against is an e:tremel. a/esome strateg. /ith lots o> o""ortunities >or trading; as .ou can see? 9inding entries on those da.s /hen "rice does /hat & call a ,slo/ 2urn- in a ver.; ver. slo/ trending trending movement can 2e challenging challenging to sa. the least? On those da.s; this strateg. hel"s a lot? lot? Loo* >or high "ercentage "ercentage entries against the stronger stronger E0As and then @ust stic* stic* /ith it as long as it does not reverse? %ere are are some trade "otentials circled on an Eur". chart >rom the recent "ast? Notice that as .ou gain e:"erience; .ou /ill 2e a2le to ta*e some ,rst touchentries o= the 56+
he Constrainment rade The Constrainment Trade Trade can ha""en against against an. o> the three three 0oving Averages Averages in this Strateg.? Strateg.? T%E STRONKEST o> them are are al/a.s ta*en against the 35 S0A /hen it and the 56 E0A are literall. ,on ,on to"- o> each other and the #6 is on the side the. are '2ending' to/ard? to/ard? suall. (rice /ill sort sort o> ,2ounce along- the 35 >or several several 2ars; at least three three 2e>ore .ou ta*e ta*e the trade? &t can ha""en against the #6 E0A as /ell 2ut these trades are a little ,/ea*er,/ea*er- and .ou need to *ee" an e.e on them until .ou get some "i"s loc*ed l oc*ed in >rom one? Constrainment trades o>ten .ield 36 to #66 "i"s or more; so 2e sure not to cho*e it
out earl.? earl.? 7elo/ are some images ta*en >rom random areas o> recent chart activit.? activit.? &> .ou scroll 2ac* .ou /ill see lots and lots o> e:am"les o> this sort o> constrainment /here entries /ere not onl. "ossi2le; 2ut /here the trades also .ielded large gains?
he AAA AA A 2ouch; 2ouch; rade Entr0 ,Touch ,Touch TradesTrades- are almost as strong as the ,Constrainment- entries? en tries? The. are a 2it harder to ,catch- as the. can ha""en e:tremel. Buic*l. 2ut the gains are normall. reall. good and ha""en reall. >ast? Remem2er in ,Touch ,Touch TradesTrades- to "a. STR&CT attention to the TWO 7AR RLE? RLE? &> .ou don't; .ou'll get 2it /a. /a. more o>ten o>ten that is necessar. necessa r.?? Also remem2er that on ,Touch,Touch- trades the SL is NEMER more than ## "i"s? %ere are the criteria >or strong ,touch- trades? -4 E/A 2ouch rades; on /-. Charts:
#? 0ust 2e at a ,ver. stee"- angle o> a2out a2out 5 degrees; degrees; or more? more? Less o> an angle /ea*ens the trade? $? NO 0ORE 0ORE than than t/o t/o 2ars 2ars to ,get there?there?3? Sto" loss loss is NO 0ORE 0ORE than than #$ "i"s "i"s EMER? EMER? ? ConJuence ConJuence o> an an %# 0A stre strength ngthens ens the signal? signal? 5.$ .4 Line 2ouch rades; on /-. Charts: #? A reasona2l. reasona2l. stee" angle o> a2out $6 degrees degrees or more; more; OR 2oth lines ,on to"o> each other? %aving 2oth ha""en is ver. strong? 5? Sto" loss loss is NO 0ORE 0ORE than than #$ "i"s "i"s EMER? EMER? 1? ConJuence ConJuence o> an an %# 0A stre strength ngthens ens the signal? signal? 7elo/ are some e:am"les o> the ,Touch Trade- entries? This one is o= the 3556 lines /hen ,on to"- o> each other?
This one is o= the #6 E0A /hen /hen at a stee" angle? &t a""ro:imates a""ro:imates a 5 degree degree angle and & use the ,rectangle tool- o> 0T to create the ,2o:?-
sing the ,Angle Tool- in 0T >or ,Touch Trades?&n the ,line studies- menu o> 0T there is a ,trendline 2. angle- tool that can 2e accesses as seen 2elo/?
When used on the charts; it creates a trendline /ith an area /here /here .ou can see the ,angle- o> the line li*e seen 2elo/?
8ou 8ou sim"l. select the tool; then then clic* the chart at the "oint /here .ou /ant /ant to start to measure the angle then drag it across the chart >or a little 2it so the lines and the angle a""ear? a""ear? &> it is an u"/ard u"/ard move; the angle /ill a""ear in a normal normal /a. 2ut i> it is a do/n/ard move; then .ou have to do a little mental math to get the angle? &n the e:am"le a2ove; the the angle on the chart is 3##?4 degrees? degrees? Remem2ering Remem2ering there are 316 degrees in a circle; /e then su2tract this num2er >rom 316 to nd that /e have an angle o> )?3 degrees? This means that a ,Touch,Touch- o> the 35 at this "oint is more than li*el. a good short entr. as a ,touch trade? 8ou 8ou /ould do "recisel. "recisel. the same >or the 56 E0A and the #6 E0A? E0A? ee" in mind the /hole "oint is to ,measure- the "otential strength o> a 2ounce >rom a ,touch- and nothing more? more? e ee" e" it sim"le? The shar"er shar"er the angle; angle; the stronger stronger the trade? nder $6 degrees angle; & /ould "ro2a2l. "ass on a #6 E0A Touch; and under #5 degrees on a 3556 trade? Once .ou let go o> it it should sta. highlighted so .ou can hit the ,delete- 2utton on the *e. 2oars 2oars and get rid o> it? Once .ou have measured measured the angle; .ou don't need it an.more cluttering u" .our charts? NOW; NOW; measure the line W1E#E I IS; IS; not >rom /here the move started or .ou /ill get a >alse reading on on it's angle? &> it has started to ,Jatten ,Jatten- out a 2it; then measure measure >rom the last >e/ 2ars /here the ,Jattening- 2egan? Ne:t let me sho/ .ou ho/ to ,customiHe- .our tool 2ar to .ou don't have to ,hunt>or it /hen .ou need it?
Setting u& the oolbar: Right clic* on the tool 2ar and the menu to modi>. it a""ears? As seen here?
Select ,CustomiHe- >rom the list and this ne:t /indo/ a""ears?
%ighlight the ,Trendline ,Trendline 2. Angle- selection then /hen .ou clic* the ,&nsert- 2utton it /ill move it to the right side o> o> the list? At that "oint .ou can can use the ,u"- o> ,Do/n,Do/n- 2uttons to "lace it /here .ou /ant it in the list so it /ill sho/ u" in the tool 2ar >or eas. access as seen 2elo/?
1ow o Let he /ar,et 2Show It's 1and; 0ost /ho have traded even a little 2it or researched a little 2it have heard the term? ,let the mar*et sho/ it's hand?- The su""osition is that that once that has ha""ened; ha""ened; .ou can ta*e ta*e a sa>e trade /ith this ne/ ne/ in>ormation? & struggled >or a long time time tr.ing to gure out @ust ho/ this ha""ens and /hat it means?
&t's reall. "rett. "rett. sim"le? (rice Action is the the 2est ,indicator- o> the direction the the mar*et /ill /ill move? The "revious section descri2es some; some; 2ut 2. no means all o> the the /a.s that (rice Action can 2e used to /atch as the mar*et ,sho/s it's hand- so .ou can trade sa>el.? sa>el.? Even /ith this arsenal o> tools; sometimes; sometim es; the mar*et mar*et /ill ,sho/ it's hand- then @ust go the other /a.? /a.? &t can 2e ver.; ver. schiHo"hrenic schiHo"hrenic at times? Still; 2. using "rice action .ou can mitigate .our ris* on the entr. e:tremel. /ell? There are are sections later that e:"and on this to a great degree; degree; even an additional "art o> this manual that is a2out the ,Three 0ain Trades- o> the Dance Strateg.? %ere is a short version o> all this? A (in 7ar; at the to" or 2ottom o> a ver. long run o> "rice movement is a good g ood /a. the mar*et ,sho/s ,sho/s it's hand- that "rice has e:hausted itsel>? itsel>? O>ten it is also "receded 2. "rogressivel. "rogressivel. smaller smaller 2ars in the direction direction o> the movement? &> "rice is also a""roaching a SR level o> a Round Num2er; or a "lace /here (rice reversed reversed in the o""osite direction "reviousl.; or one o> the 0oving Averages used here; those things ALL can 2e used to determine i> the mar*et is trul. ,sho/ing it's hand- to the trader /ho is attentive? When "rice is constrained 2. one or another 0oving Average; Round Round Num2er; SR level or a conJuence o> an. o> these; that is also ho/ the 0ar*et ,sho/s it's handto the trader? Let's ta*e ta*e an e:am"le? Let's sa. that "rice has @ust dro""ed dro""ed 56 "i"s going short and then retraces a small amount; sa. $5 "i"s and in the Dro" crossed the 3556 lines >airl. shar"l. shar" l.?? 8ou might not have had an. /arning and might have missed the entire move? NOW though; though; "rice is in a retrace retrace and heads 2ac* to to the 3556 area? area? &> it hits and starts to sort o> ,2ounce along- one o> these t/o main averages; that is constrainment and the mar*et demonstrating a resistance to going u" an. >urther? T%&S &S ALL T%E CON9&R0A CON9&R0AT&ON T&ON 8O 8O NEED at this "oint? A>ter a cou"le to ma.2e 3 or 2ars li*e this; i> .ou have not alread. ta*en a trade 2ac* in the original direction o> the movement o> (rice; short i> it /as short; long i> it /as longF then .ou have have "ro2a2l. alread. alread. missed the 2est entr. entr. "oint? The mar*et's ina2ilit. to cross 2ac* through a Su""ort or Resistance Level; /hatever that ma. 2e; is the mar*et mar*et ,sho/ing it's hand?- &> .ou /ait to long; it /ill more more than li*el.; suddenl. move #6 to $6 "i"s the /a. it /as sho/ing it's move /ould 2e; and .ou have missed the trade's 2est entr. i> .ou are not alread. in the trade? The ,Touch,Touch- trades descri2ed descri2ed in this strateg. are are much the same? The mar*et mar*et o>ten /ill ,hit- or ,touch- a signicant SR level and then literall. ,RN- a/a. >rom it as much as $6 to 56 "i"s in one one or t/o 2ars? &> .ou are not not e:"ecting that to ha""en; ha""en; .ou /ill miss it ever. time until .ou learn to trust it and use ver. short sto" losses to ta*e advantage o> it? Learn the (rice Action 2ars in this strateg.? strateg.? Learn the "o/er o> the 3556 lines; the Round Num2ers and learn the "o/er o> more traditional SR "atterns as /ell? Things li*e dou2le dou2le and tri"le tests; o>ten o>ten called ,dou2le to"s 2ottoms2ottoms- or tri"le to"s 2ottoms- at an area o> SR can 2e e:tremel. "o/er>ul "o/er>ul and o>ten allo/ .ou to ta*e 2asicall. the e:act same trade a cou"le o> times in a session >or good "i" gains? The value o> learning ho/ ho/ "rice moves around around the 0oving Averages; Averages; Round Round Num2ers and traditional traditional SR levels cannot 2e e:aggerated? e:aggerated? The more .ou can can ,seethem; trust /hat the mar*et mar*et is telling .ou through them; the more success>ul and the /ealthier .ou /ill 2ecome in trading? &n the rest o> this manual /e discuss the three main t."es o> trades; /e
demonstrate /hat the. loo* li*e in ,real time- through the use o> Screen ca"tures ca"tures at the "oint o> the trade and @ust a>ter at either the move to 7E; or the e:it >rom the trade? SE T%E S&0LATOR S&0LATOR A LOT and "a. attention to the e:am"les given and .ou /ill do reall. /ell? 8ou ma. even sur"rise .oursel> and master this this strateg. a lot >aster than .ou thin*?
*utting It All ogether: Screen ,Setu"- or ,real ,real estate- is ver. ver. im"ortant in trading? trading? One must 2e a2le to ,see at a glance- /hether or not a trade is imminent or not and the direction it most li*el. /ill /ill go? 0ost com"uter com"uter screens screens are are not large large enough; and most s.stems to not allo/ >or multi"le monitors to allo/ one to see the charts in the 2est "ossi2le >ashion? This manual /as created created using a #4 inch monitor; monitor; /hich is "rett. "rett. standard in toda.'s /orld? Still; that is "rett. "rett. small /hen .ou need to ,see,see- several charts at a time? The ans/er to this dilemma is to ,stac*- the chart /indo/s? /indo/s? The >ollo/ing is a screen screen shot o> our setu" setu" on 0etatrader? 0etatrader? 8ou /ill notice that & onl. monitor three or >our currencies currencies at the moment? With a larger screen screen & /ould "ro2a2l. monitor more; 2ut & /ant to see CLEARL8 the setu"s? %OWEMER; it is "ossi2le to trade onl. ONE currenc. and ma*e great "rots "rots and 2ecome e:tremel. e:tremel. success>ul? Never underestimate underestimate the "o/er o> sim"licit. sim"licit. in this area as /ell+ Learning the ,"ersonalit.- o> a currenc. currenc. is amaHingl. amaHingl. "o/er>ul as /ell?
8ou 8ou /ill notice that this setu" setu" leaves room >or access to the ,Scri"ts,Scri"ts- area o> 0etatrader? 0etatrader? & have discovered that using Scri"ts to trade trade /ith is much >aster; more Je:i2le; and in short a lot easier to do?
Entering a trade is as sim"le as dragging the a""ro"riate scri"t 2u. or sellF to the chart .ou /ant to e:ecute e:ecute an order on and letting it dro"? The e:ecution e:ecution should 2e a LOT >aster than using the normal 0T Order inter>ace? 8ou could also @ust clic* on the chart .ou /ant to e:ecute on then dou2le clic* the scri"t .ou /ant to e:ecute? That /or*s even >aster >aster?? The Scri"ts >or 7u. and and Sell orders; have have "reset SL and and T( levels? These scri"ts scri"ts access a glo2al varia2le "reviousl. "reviousl. set 2. the AUSetLotSiHe AUSetLotSiHe scri"t? & suggest setting .our traderis* traderis* once "er session at the the 2eginning? That /ill automaticall. automaticall. increment .our trades >or a 2it more aggressive com"ounding /ithout running the ris*s o> ,instant com"ounding- /hile trading? There are are other scri"ts >or moving moving 2oth 2. sim"l. dragging dragging the a""ro"riate a""ro"riate Scri"t to the a""ro"riate chart and dro""ing it? The SL or T( scri"ts /ill move .our SL SL or T( to the e:act e:act s"ot on the chart chart /here .ou dro" it? There is even a 7E 7E Scri"t >or moving to 7rea* 7rea* Even to mitigate mitigate Ris* in a trade? We tal* a2out the Scri"ts later?
#e?ning the Entr0 sing three charts on di=ering time >rames >or a single currenc. currenc. is nothing ne/? ne/? 0an. do it? The di=erence /ith /ith this Strateg. is that /e do NOT change to di=erent di=erent 0oving Averages Averages on the various various time >rame charts? Once .ou get used to seeing seeing the (A around the averages; it @ust doesn't ma*e much sense to me to change them? &n addition; the 35 S0A is ver. strong on all the charts+ charts+ 7elo/ are is an image >rom one o> o> m. trades? & have mar*ed mar*ed the SA0E time on t/o o> the charts in the grou"? One on 0#5; the larger chart; and one on 05; the smaller le>t side chart? Remem2er; Remem2er; the reason reason >or three charts charts is so .ou can see the the overall recent trend on %#; start to choose .our entr. on 0#5; then rene it on 05 >or the 2est "ossi2le entr. and e:it? e:it? & don't use 05 much an.more an.more 2ut this sho/s the "rinci"le reall. /ell? Notice that on 7OT% o> the lo/er time >rame charts "rice /as 2eing ,constrained2. the SA0E E0As? On 0#5; there /as a three 2ar area /here a good entr. could have 2een made; 2ut on 05 the the same area /as /as several more more 2ars? This all is @ust added conrmation o> the trade and should give .ou more condence >or an entr.? %o/ever; once in the trade; it's 2est to manage it on 0#5 trailing .our sto" loss on 0#5 2ars as it eliminates the ,cho"- that sha*e "eo"le out o> other/ise strong trades? &> .ou had trailed the SL on 05; .ou /ould have 2een sha*en sha*en out a cou"le o> times? Stic* to trailing the SL on 0#5; 0#5; it /ill greatl. increase increase .our gains overall? This trade /as ultimatel. ultimatel. good >or a2out 6 "i"s?
This ne:t image sho/s sho/s the same "rinci"le /ithout /ithout the use o> the 05 char chart? t? The trade /as ta*en at the immediate %# ,Touch- o> the 35 and gave u" a2out 6 "i"s as /ell and .ou can see on 0#5 /here it hit resistance?
A Word About Wic,s Wic*s on candles are are used lots o> /a.s in all sorts sorts o> Strategies? &n ,The Dance- /e use them onl. >or immediate SR levels >rom the immediate "ast t/o or three da.s? Longer than that @ust messes u" the charts? charts? sing /ic*s to set 2oth 2oth e:it levels and entr. levels can 2e "rett. "rett. "o/er>ul? ust don't get too carried carried a/a. /ith them and *ee" them sim"le and .our charts clean or it gets con>using? &> there are are lots o> /ic*s on 0#5; 0#5; use the %# chart >or the the levels .ou need? &> %# is too ,cho"".- /ith too man. /ic*s; use D#? & seriousl. dou2t D# /ill ever have have ,too man.- to mess /ith .ou? 7elo/ is a chart that sho/s sho/s /hat & am tal*ing tal*ing a2out? There is one >rom >rom 0#5; then & Hoomed 0#5 out to and %# chart to nd a cou"le more levels; and mar*ed them 2oth on %# and 0#5 to ma*e them more more a""arent to .ou; and even one on D# @ust >or em"hasis? Trade these li*e a ,normal,normal- SR Level; /hen the. ,get there- ta*e the trade and give it no more more than a #! "i" SL? &9 the. stall /ithin a cou"le o> "i"s; ta*e them and /ait /ith .our SL li*e .ou /ould normall. use it? & don't recommend trading ,cho"- 2ut as in the chart 2elo/ /here there are are clear SR levels; MER8 MER8 close to the Round Num2ers areas it can 2e acce"ta2le to ta*e the reverse trade trade ,as i>- it touched on a second second candle? ust 2e sure sure .ou use a long enough Sto" Loss so .ou don't get ta*en out in the entr. candle?
En@o.+
Sta0 O(! As /ith all strategies; there are areas to avoid at all costs? As sim"le as this ma. sound; it /ill vastl. increase .our "rota2ilit. and success rate? #? NEMER TRADE TRADE a "rice action 2ar 2. itsel>+ There 0ST 2e 2e some sort o> other reason >or the trade such as the 2ar occurring at a Su""ort or Resistance Level; a ,Round Num2er;- as a 2ounce o= o> a 0oving Average as a constrainment constrai nment trade in a counter trend trade ONL8 ONL8 a>ter "rice has traveled travele d a signicant distance a/a. >rom the 56 and 2oth turned 2elo/ and retested a lo/er 0A? $? NEMER 9ORCE 9ORCE a trade; trade; /ait "atientl. >or the ,"er>ect- setu"s >ound >ound in this manual? 3? NEMER TRADE TRADE i> .ou are are not #66 ,sure,sure- o> the the trade? 7ut at the same time; don't let >ear sto" .our trading; .ou must trade; @ust 2e #66 ,sure- the trade ts the rules 2e>ore .ou do? ? Last Lastl. l.;; !E1ER TRA.E T2E #ORU#0!E3 The ,(orcu"ine,(orcu"ine- is an area area o> "rice activit. /here the "rice 2ars have lots o> /ic*s on 2oth sides o> them; and those /ic*s are are ,signicant- in siHe; meaning more more than @ust a >e/ "i"s? The ,(orcu"ine,(orcu"ine- is demonstrated in the e:am"les o> ,Sta. OT- >ollo/ing this area o> denition?
9a*eouts occur o>ten in 9ore: Trading Trading 2ut there are /a.s to mitigate them? the m? 9irst; DON'T LET (R&CE 9OOL 8O+ 8O+ %ere are a >e/ e:am"les o> /hat & mean? RE0E07ER; & no longer use the 05; the line colors have changed and & no longer use the "ur"le 0A?
&n the a2ove chart; the last area in the 2o: is /here lots o> ,>a*e ,>a*e outs- ha""en? Things ma. loo* good; 2ut 2ut an. entr. in these areas areas /ould violate the rules rules and leave .ou vulnera2le to indecision and man. other 2ad things such as reversals that are too >ast; e:tremel. /ide SL settings and more? Avoiding Avoiding the 2ad trades is @ust as as im"ortant as ma*ing ma*ing the good ones? &> .ou are not ,sure- o> the trade; STA8 OT and /ait >or a 2etter setu"?
rade G #is, /anagement #is, /anagement: Ris* is a "ersonal thing and it should 2e? No one can assess ris* the same /a. .ou do and no one should? There are are man. /ho sa. never to ris* more more than $ on a trade; some sa. 3 and & have seen traders traders use as high as $6 on on a trade? &t all de"ends on .our condence level and ho/ much .ou can a=ord to lose i> .ou do? (ersonall.; (ersonall.; trading /ith $ to 3 ris* ris* (ER (OS&T&ON is acce"ta2le acce"ta2le to me? What that means is that i> & ta*e a "osition in one currenc.; usuall. it's no more than a 3 ris* >or that currenc.? currenc.? Sometimes; Sometime s; & ta*e t/o "ositions in a currenc. and that means that each "osition is 3 or or 1 total ris*? Sometimes; & see reall. reall. good trades in multi"le currencies and & can mitigate ris* 2. ta*ing a single "osition in more than one currenc.? currenc.? As long as each "osition is no more than $ to 3; & am "ersonall. ne /ith it? 0. suggestion is that .ou trade /ith no more than $ "er "osition to start learning and O!L4 one one currenc. /hen .ou start? 8ou need some time to learn to trade The Dance and to learn the the s"ecic currenc. currenc. .ou choose? All currencies currencies have a slightl. di=erent ,"ersonalit.- 2ecause slightl. di=erent traders overall trade them? rade /anagement: Trade Trade management is NOT NOT the same as ,ris*,ris*- management though though it can greatl. a=ect and either reduce reduce or increase the ris* o> .our trading? trading? 9or e:am"le; e:am"le; i> .ou trade one lot; or one "osition; then .ou need to have a /a. o> trading that allo/s .ou to ,loc* in- as >ar as that is "ossi2le; some "i"s earl. on and then tr. to ,let it runrun- a>ter that? &t can 2e done; 2ut /ith one one "osition it's a 2it harder harder and some 2ro*ers 2ro*ers /ill not let .ou ,scale- out a>ter the entr. thus ,loc*ing in- some "i"s earl. on 2. actuall. ta*ing them O99 the ta2le /hen .ou do this? The 7EST /a.; in m. hum2le hum2le o"inion is to ta*e ta*e t/o "ositions /ith less less ris* each /hen trading and e:it the rst "osition at some "oint /here .ou have made a solid gain; then move the SL to 7E and let the last "osition ,run,run- and trail the SL ,2. the rules?- to ma:imiHe the last "osition and .our trade? The scri"ts included in this strateg. strateg. /ill o"en TWO "ositions "ositions each /ith #?5 ris* ris* >or a total o> 3 overall? The rst "osition /ill have have a ,ta*e "rot"rot- set >or #5 "i"s and the second one >or a2out #66; /hich .ou can increase /ith the T( scri"t i> it's reall. ,running- hard .our /a.? DO NOT change this /hile .ou are learning? Ta*ing some o> the "i"s earl. is ETRE0EL8 ETRE0EL8 "o/er>ul? &t all 2ut guarantees /inning trades; &9 .ou >ollo/ the rules to the letter; AND mitigates or eliminates eliminates most o> the ris* o> the trades ta*en? ta*en? &n
addition; it allo/s .ou to ,let ,l et it run- as .ou have heard so man. times and "ro2a2l. struggles /ith as & did earl. on? & never reall. could gure out ho/ to ,let it run- and it al/a.s seemed to end u" going against me? T%&S SOL SOLMES MES all that? &t eliminates; >or the most "art "art the "ossi2ilit. it /ill go against .ou once .ou are in "rots; AND it allo/s a #66 "i" ,2reathing s"ace- >or the trade to run to/ard so .ou can learn to trail the SL as /ell? Now let's tal, E=its" E:its can actuall. 2e more important than than entries? entries? This is the the 0A&N reason reason >or using t/o "ositions and ta*ing one out earl.? earl.? 0ost o> this manual is dedicated to ltering; ,seeing- and ta*ing strong strong entries so .ou can avoid lots o> losses? The "ro2lem is that even /ith a/esome entries; i> .ou don't have an eBuall. strong e:it strateg.; .ou /ill /ill still most li*el. li*el. >ail? & did >or a long time? When & rst 2egan; & had man.; man. trades that /ent "rota2le "rett. Buic*l.; 2ut in an e=ort to let the trade ,2reathe- as so man. tal* a2out; & o>ten ended u" at a loss? Letting a trade ,2reathe- too >ast >ast is o>ten >atal? >atal? &> the trade is a strong strong trade; trade; it should give .ou at least TWO 2ars o> "rot 2e>ore an. reItest occurs o> an. signicance? &> it doesn't; .ou reall. don't /ant to 2e in the trade an. /a.? /a.? Still; allo/ing a trade to ,2reathe- is e:tremel. e:tremel. im"ortant to long term trading success; 7T at the the 2eginning; NOT LOS&NK LOS&NK is 0ORE im"ortant? im"ortant? &t 2uilds condence in the strateg.; .our a2ilit. a2ilit. to use it and it 2uilds .our account as /ell? &> .ou have "er>ect entries ever. time; 2ut let lots o> them go negative .ou /ill lose condence ver.; ver. Buic*l. and have "ro2lems; 2eginning to thin* the strateg. is Ja/ed; /hen .our ,e:it strateg.strateg.- is the REAL "ro2lem+ "ro2lem+ SE T%E SCR&(TS (ROM&DED (ROM&DED to ght this+ Earl. on & >aced this; and the /a. the scri"ts are set is the a2solute 7EST solution & could nd? There are are man. /ho /ill tr. to tell .ou to use more more "ositions; less ris* and man. di=erent di=erent com2inations? Those ma. all /or* /ell /ell /ith T%E&R strateg.; strateg.; 2ut NOT >or The Dance? Dance? SE T%E SCR&(TS SCR&(TS AND DO NOT change them? ee" in mind that /hat .ou are aiming >or is consistenc.; not huge "rots; at least at rst? The "rots "rots and trade siHes siHes /ill gro/ i> .ou are consistent? The main idea is to hit .our targets targets ever. time? T%EN /or* on ma:imiHing ma:imiHing the trades in other /a.s such as moving .our SL on each 2ar and so on? 8our ,target- is NOT the #66 "i" T( set 2. the scri"ts >or the the second "osition? &T &S to 2e "rota2le "rota2le EMER8 EMER8 S&NKLE TRADE; /hether /hether it is >or onl. 7E# or and e:it >or a >e/ more more "i"s /hen /hen "rice hesitates too long >or .ou; or an e:it at or ver. close to the ne:t Round Round Num2er level? ALL ARE ACCE(TA7LE ACCE(TA7LE trades? Even a 7rea* Even trade is a good trade in the 2eginning and in >act even >or veterans o> trading? At rst; .ou /ill "ro2a2l. onl. 2e a2le to "rot #6 to $6 "i"s consistentl. /ith this strateg.? strateg.? T%AT &S (ER9ECTL8 (ER9ECTL8 9&NE; and acce"ta2le? CONS&STENC8 CONS &STENC8 is the goal not huge "i" counts? As .ou gain more and more e:"erience; .ou /ill 2egin to have a ,9eel,9eel- >or the trade and "rice's movement and and momentum? T%AT T%AT is /hen .ou can 2egin 2egin to /or* on ma:imiHing the trades and increasing "i" counts?
One o> the 2est /a.s to ma:imiHe a trade is to "rogressivel. move .our SL u" to the last retrace level and and *ee" it @ust a >e/ "i"s short o> that? that? Then; 2. moving it u" a>ter each level; .ou /ill in e=ect 2e allo/ing (rice itsel> to dictate .our e:its; not a "redetermined "redetermined T( level? &t /ill ta*e some some "ractice to learn this; this; 2ut *ee" at it as it .ields reall. strong re/ards? NOW; TRA&N 8ORSEL9 8ORSEL9 TO &KNORE T%E VV &N T%E TRADE TRADE and .our account? 9OCS ON (&(S instead? There are are a great man. /ho /ho /ill argue vehementl. vehementl. that .ou a2solutel.; "ositivel. must "a. attention to the o> ris* each trade; the total o> the trade and in .our account; account; .our e:"osure e:"osure and on and on and on? That's all CRA( CRA( unless .ou can rst 2ecome 2ecome consistent in .our trading? trading? Without consistenc.; consistenc.; .ou /ill never have an.thing to manage+ manage+ 7esides; using the Scri"ts Scri"ts descri2ed later; .ou .ou can manage ris* reall.; reall. /ell and easil. too? SO; i> .ou reall. /ant to gro/ .our ne/ 2usiness account and have lots o> ,inventor.- to /or* /ith; 9OCS ON KOOD ENTR&ES; STRONK E&TS and (&(S ONL8 AND ECLS&MEL ECLS&MEL8 8? Let the Scri"ts do the /or* o> Ris* 0anagement 0anage ment >or .ou so .ou can >ocus on other things? Once .ou are used to >ocusing on the num2er o> "i"s; the stress o> the VV >airl. disa""ears? Then .ou are are le>t /ith either gaining or or losing a >e/ "i"s; nothing nothing more or less monumental than than the "oints in a video game? game? T%AT T%AT is the mindset .ou a2solutel. 0ST nurture and master to 2ecome success>ul? The more ,2oring- this 2ecomes; the more success>ul .ou /ill 2e? &> .our trading is more li*e dancing; or "la.ing a video game to .ou; the stress and ,>ear- that so o>ten *ills others /ill have Hero e=ect on .ou? 8ou /ill 2ecome immune to it and it /ill 2ecome much easier to >ocus on the actual trading strateg.; the "rice action; and im"roving .our s*ills? E:its are acce"ta2le acce"ta2le at an. "oint .ou are are in "rots? &> .ou have care>ull. care>ull. chosen a strong entr.; moving to 7E # >airl. Buic*l.; sa. a>ter a2out #5 "i"s or so shouldn't even have an. e=ect on the trade? trade? &> .ou are consistentl. consistentl. 2eing sto""ed at that that level; reIread this manual; use the Simulator and ne tune .our entries some more? With the entries mastered; mastered; 2egin mastering mastering the e:its ne:t? ne:t? The more s*illed .ou .ou 2ecome at ma:imiHing the trades to "reserve the "i"s alread. gained; in the trade on the rst "osition and learing to ma:imiHe the second "osition; the >aster .our account /ill gro/? That's it? ee" it sim"le and learn to be consistent /0R+T ; then move on to longer trades; more "ositions and sta.ing in to ma:imiHe the trade?
railing the SL: Once in the trade; and .ou have moved to 7E #; learn learn to let it run? The >ollo/ing chart is a great e:am"le o> that? (lace each ne/ SL at the last e:treme e:treme o> the last last candle $ "i"s and NO 0ORE? 0ORE? &9 the trade sto"s .ou out; .ou WANT T%AT T%AT 2ecause it >rees .ou u" >or a ne/ trade and "ro2a2l. indicates at least a reItest reItest reversal an./a.? an./a.? 0oving an. more aggressivel. /ill 2urn .ou too o>ten?
&> the trade is starting to ,run- 0OME 8OR T( /a. out in >ront to allo/ .ou to ma:imiHe the trade? %ere is a good chart chart e:am"le? Each 2lac* line is /here /here the SL /ould have 2een trailed to a>ter each 2ar 2ar until sto""ed out in the the trade? & no longer use the 5E0A; 5E0A; or the longer "ur"le one and & have changed the line colors >or sim"licit.; 2ut the chart e:am"le is a great one?
NOE: The NOE: The averages used are are no/ the standard standard 0T averages and are are colored slightl. di=erentl. and and the "ur"le $66 is no longer used? This chart; ho/ever ho/ever sho/s e:tremel. clearl. ho/ to trail the sto" so & *e"t it in the manual >or .our convenience? ee" in mind that i> "rice has 2een ranging; or a 2it more cho"".; .ou ma. /ant to ta*e .our "i"s a 2it >aster near a Round Num2er? The >ollo/ing e:am"le /as /as actuall. created >or >or a di=erent illustration; illustration; 2ut it sho/s another as"ect o> trailing sto"s on The Dance; /hich "ersonall. & thin* is a/esome? The conce"t is getting a ,second ,second 2ite- at the a""le /hile trading? trading? &t means that .ou enter; get sto""ed out "i"s; then the trade ranges 2ac* to ANOT%ER entr. "oint /here .ou reIenter and ta*e that second 2ite; thus harvesting some "i"s TW&CE in the trading "rocess? "rocess? %ere is the chart 2elo/? 2elo/? This chart does does NOT sho/ the other t/o; 2ut .ou get the idea >rom >rom it ver.; ver. /ell? Comments are are on the image 2elo/ and 2eside it?
NOTE This &S a "ro"er setu"; 2ut & have eliminated e liminated the thic*er lines in >avor o> sim"licit. sim"lic it.?? The thinner lines are the correct setu"? 8ou can "la. /ith the higher time >rame ,eBuivalent- lines i> .ou /ant to; & >ound them distracting and Buit using them?
Setting (& he Charts #? 9ind .our 0etatrad 0etatrader er installatio installation n on .our hard hard drive? $? 9ind the (roles (roles >older and dro" dro" in the the entire >older titled ,The DanceDance- in it?? 3? 9ind .our &ndicators &ndicators and Scri"ts Scri"ts >olders under ,E:"ert AdvisersAdvisers- and dro" dro" the indicators in the a""ro"riate indicators >older; and the Scri"ts in the a""ro"riate Scri"ts >older? ? 9ind .our Tem"lates Tem"lates >older under E:"ert E:"ert Advisers and and to" the included tem"late ,The Dance- in it? 5? Start 0etatrader 0etatrader and a""l. the ne/ (role (role ,The Dance?- Ever.thing should loo* e:actl. li*e this manual no/? &> it doesn't; .outu2e?com has some great videos and this lin* on 99 might hel" as /ell? htt"///?>ore:>actor.?comsho/thread?"h"PtQ145$! %ere is a short tutorial on it as /ell? Right clic* .our ,home- 2utton; then select ,E:"lore- >rom the menu
&n the ne:t /indo/ that o"ens nd .our ,(rograms- >older; clic* on the icon ne:t to it and e:"and it? As seen seen here? Then in the right /indo/; scroll scroll do/n to .our .our 0etatrader 0etatrade r installation? 9or me that is an &79 >older? >older? 8ours might have the name o> .our 2ro*er on it or it might @ust have ,0etatrader- on it? Once .ou nd it; clic* it and e:"and it?
Once e:"anded; .ou /ill then see >olders >rom 0etatrader 0etatrad er in the right /indo/? /indo/? 9ind ,(roles,(roles- and dou2le clic* it to e:"and e:"and it as /ell? This is the >older the included included "role ,The Dance- is dro""ed into as seen here 2elo/?
E:"anded vie/ o> ,(roles- is 2elo/?
Ne:t is to nd; clic* and e:"and the Tem"late Tem"lates s >older in the le>t /indo/? /indo/? Then "lace the included tem"late ,The Dance- in it? Once .ou have "laced the (role (role and the Tem"late Tem"late correctl.; correctl.; then in the le>t /indo/ /indo/ nd and e:"and ,E:"erts,E:"erts- and in the right /indo/ .ou /ill then see see the Scri"ts; &ndicators &ndicators >olders? (lace the scri"ts and indicators included in the Hi" le this came in; in those >olders and start 0etatrader? 0etatrader? &> .ou get the error error message ,Waiting ,Waiting >or "date- in the chart /indo/; @ust o"en the ,0ar*et Watch- are o> .our "lat>orm and drag the a""ro"riate currenc. to the "ro"er charts and the. /ill u"date immediatel.? immediatel.? This /as done /ith a Standard Account; so i> .ou use a 0ini; micro or some other designation >rom .our 2ro*er; this error ma. occur? The solution is e:"lained in the ne:t section?
(sing he *ro?le &ncluded &ncluded in the Hi" le is a ,(ro ,(rolele- >or .our use in setting u" .our charts? charts? (roles (roles are a neat >eature o> 0etaTrader 0etaTrader that allo/ .ou to save a ,"role- and ra"idl. a""l. it to anot anothe herr set set o> curr currenci encies es?? When When instal installi ling ng the the ,"ro ,"rolele- @ust @ust nd nd .our .our 0etaTrader 0etaTrader installation as in the "revious section on installing them? Once Once .ou have ever. ever.thi thing ng instal installed led;; .ou ma. see an erro errorr messag message e that that sa.s sa.s
,Waiting ,Waiting >or "date- or something similar in .our .our chart /indo/s? &> .ou are using a 0ini 0ini;; 0icr 0icro o or some some othe otherr acco accoun unt; t; .our .our 2ro* 2ro*er er ma. ma. use use di=e di=eri ring ng cur currenc. enc. designatio designations ns to u"date to .our charts charts than these /ere /ere created created /ith? Should Should that occur; there is a Buic* and eas. :? ust o"en the ,0ar*et ,0ar*et WatchWatch- /indo/ and select the currenc. currenc. .ou /ant >rom >rom the list? Clic* and hold the mouse mouse 2utton on that currenc.; currenc.; then drag drag it to the chart .ou desire and .ou /ill /ill instantl. see it change to that that currenc. currenc. and u"date? &t reall. is that sim"le? Re"eat >or each chart /indo/? /indo/? &> .ou decide to du"licate this >or more currencies; currencies; @ust save the "role /ith a ne/ name and >ollo/ the same "rocedure to re"lace the currenc. in the /indo/s dis"la.ed /ith a ne/ one? See the image 2elo/? ee" in mind the ne/ "role onl. used three charts on ONE currenc. >or trading?
(sing he Scri&ts Several ,Scri"ts,Scri "ts- are included in this strateg.? strateg.? The intent o> these Scri"ts is to ma*e trading much sim"ler; Buic*er and easier to do? #RAT0E 0! .EMO 2e>ore using them so .ou *no/ /hat .ou are doing /ith them +++ The Scri"ts are are as listed 2elo/? 2elo/? NOTE sing the ,one ,one currenc.currenc.- setu" .ou ma. sim"l. ,dou2le clic*- the scri"ts instead o> draggin and dro""ing i> .ou li*e? •
AHSetLotSie: This scri"t sets the siHe o> Lots .ou /ill 2e trading trading >or each
session? I /(S 9E SE +I#S 5or eac% session or the ne:t t/o scri"ts /hich e:ecute e:ecute a 2u. and a sell W&LL NOT /or*? &t is used to set the Lot Lot siHe 2ased on the account 2alance 2alance and the Sto" Loss Loss .ou choose to use? use? &t is "reI set to a #5 (i" SL 2ut /hen clic*ed launches a "o" u" .ou can use to change the ris* and the SL setting setting i> .ou /ant to? to? That is not recommended? recommended? •
•
•
•
•
•
•
•
AH9u0: This AH9u0: This Scri"t e:ecutes e:ecutes a single order order 2u. sim"l. 2. dro""ing dro""ing it on the chart? &t is "reset to enter TWO "ositions "ositions /ith a SL o> #$ #$ "i"s on on each /ith /ith a T( o> #5 and a #66 "i"s res"ectivel. res"ectivel.?? Once e:ecuted e:ecuted .ou should ma. decrease the SL i> .ou have the e:"erience e:"erience to do so? The settings on the rst rst T( is %ARD; DO NOT change it? The SL and the second T( T( are onl. to give .ou .ou time to thin* a2out /here to set it; 2ut still have them in "lace? AHSell: This AHSell: This Scri"t e:ecutes e:ecutes a single order Sell sim"l. 2. dro""ing dro""ing it on the chart? &t is "reset to enter TWO "ositions "ositions /ith a SL o> #$ #$ "i"s on on each /ith /ith a T( o> #5 and a #66 "i"s res"ectivel. res"ectivel.?? Once e:ecuted e:ecuted .ou should ma. decrease the SL i> .ou have the e:"erience e:"erience to do so? The settings on the rst rst T( is %ARD; DO NOT change it? The SL and the second T( T( are onl. to give .ou .ou time to thin* a2out /here to set it; 2ut still have them in "lace? AClose +irst -*air: This scri"t /ill close the rst rst o"en order on on a single chart? Sim"l. drag it on the the chart and and dro" dro" it? Than*s to 99's S/ingman S/ingman >or the scri"t? AClose All -*air: This -*air: This scri"t /ill close ALL o"en orders on a single chart? Sim"l. drag it on the chart and dro" it? Than*s to 99's 99's S/ingman >or the scri"t AE/E#7ENC%CloseAll: This Scri"t /ill close close ALL "ositions on ALL currencies immediatel.? A* Set/oe: This Scri"t /ill set or move ALL the Target Target (rot lines on a s"ecic chart? Sim"l. drag and dro" dro" it on the desired desired chart? &> no T( is "resent; it /ill create create one? se this to change the T( T( on a trade? ASL Set/oe: This Scri"t /ill /ill set or move move ALL the Sto" Loss lines lines on a s"ecic chart? Sim"l. drag and dro" dro" it on the desired desired chart? &> no SL is "resent; it /ill create create one? se this to change the SL SL on a trade? 9rea, Een SL: Will move move ALL sto"s to to 7rea* 7rea* Even on a s"ecic chart? Drag and dro" on the chart .ou /ant?
0AE SRE 8O %AME ENA7LED 7OT% ,E(ERT ADM&SERS- AND ,ALLOW L&ME TRAD&NK TRAD&NK- in the ,E:"erts- ta2 o> the the ,O"tions- "o" "o" u" >ound under ,Tools- in the to" 0enu o> .our "lat>orm? Clic* ,Tools;,Tools;- then ,O"tions?-
Then ena2le the 2o:es 2o:es sho/n sho/n 2elo/? 2elo/?
NOE: I 0ou hae a ?e digit bro,er or one that uses more8 0ou /(S o&en the scri&ts and add a 24; to the SL and * setting or the scri&ts will not e=ecute or 0ou" SETT&NK T%E STO( STO( LOSS LOSS the "ur"ose o> setting setting the SL to #! in the scri"ts is that on K2"sd and Eur". /ith "i" s"reads s"reads one needs a 2it more ,room?,room?- &> .ou decide to trade others; li*e the Eursd .ou should dro" it immediatel. to as li ttle as "ossi2le /ith the ASL scri"t? scri"t? Also; o>ten; once .ou are are a 2it more s*illed; s*illed; .ou ma. o>ten dro" the SL to as little as 4 or ! "i"s on an entr. even on K2"sd and Eur".? This #! "i" setting /ill also allo/ .ou .ou to set it /here /here .ou /ant it a>ter a>ter entr.; 2ut avoid .ou 2eing sto""ed out "rematurel. on a "rice s/ing /ithin the entr. candle? The other reason reason >or using #! is that the Ris* o> each trade is determined determined 2. the num2er o> "i"s use >or the SL in the AUSetLotSiHe scri"t; /hich is #5? 8ou /ill need to decrease the SL almost immediatel. on entr.; 2ut this setting allo/s .ou to earn more "er trade; trade; /hile *ee"ing e:tremel. e:tremel. lo/ ris* ris* e:"osure e:"osure on each trade? The smaller the SL .ou can learn lea rn to manage a trade /ith; the smaller .our ris* /ill 2e &9 .ou leave the #5 "i" in the AUSetLotSiHe scri"t that sets the trade siHes? 0odi>.ing the Scri"ts
9irst; go to Tools IX 0etautoes Language Editor and clic* the lin* as seen here
Once the Editor o"ens clic* ,scri"ts- and nd the 2u. and sell scri"ts ,AU7u.,AU7u.- and ,AUSell?- One at a time; dou2le clic* then and ma*e the >ollo/ing >ollo/ing changes?
Ne:t "age "lease?
Once one o> them is o"en; modi>. this setting in each?
Once .ou have done that; then nd the ,com"ile- 2utton and clic* it to activate the ne/ settings and close the editor? 8O 0ST CL&C CO0(&LE OR T%E8 W&LL NOT C%ANKE+ &> .ou have s"ecial needs or "ro2lems; time to do some research and learning on .our o/n >or this?
About Adanced #ules There are are man.; man. /a.s to to use the lines o> The Dance? A lot o> tal* on the 99 thread has given given to /hat the. might 2e? There are are some; and &'ll tal* a small 2it a2out them here; here; 2ut don't get caught u" u" in them? Learn Learn and master the 2asics rst; then .ou /ill 2e read. to create .our OWN ,advanced rules- 2ased on .our e:"erience and /hat 8O see in the charts? Scoo&ed Awa0: This is "rett. sim"le; sim"le; /hen the #6 E0A ,turns,turns- on one o> the charts; charts; the 2ar a>ter it turns o>ten o>ten retests the the line? Sometimes the second one does li*e li*e a ,touch- trade in a normal setu"? Either /a.; that retest retest o>ten "resents a >airl. solid solid counter trend entr. /orth at least $6 $6 "i"s? &> .ou are usig the the Scri"ts "ro"erl.; "ro"erl.; .ou can ta*e ta*e the rst T( out reall. Buic*; move to 7e and /ait >or the trade to run .our /a.; or 2ounce at the higher lines and reverse 2ac* 2ac* into the trend o> the the moment? ust /atch the charts; .ou'll see /hat & mean? Wic,ed: The ti"s o> ver. long /ic*s on 0#5; and on %# and D# "resent some some e:tremel. e:tremel. "o/er>ul T( targets /hen "rice is heading that /a.; and the. can also "resent strong reverse reverse trades as /ell? There is a reason that that "rice "reviousl. reversed reversed leaving that long /ic*; and most li*el. that reason is still in "la. >or at least $6 to 56 "i"s a>ter /hich "rice "rice ma. again head to/ard to/ard that /ic* ti"? Learning Learning to /atch >or
them and use them is a ver. strong /a. to nd good tagets >or e:its to ma:imiHe the trade; and a "lace to nd solid solid reverse trades trades as /ell? Remem2er to *ee" reall.; reall.; reall. tight SLs in those area? 1ome on he #ange: Ranging mar*ets mar*ets can 2e a real challenge and more than once the. have *ic*ed m. little ros. red+ The 2est /a. to trade DA&L8 DA&L8 ranging mar*ets is to leave them alone? NOR0AL ranging mar*ets "la. ver. nicel. into The Dance's lines i> that range is #66 "i"s or so >rom high to lo/? 7T /hen that range is &NTRADA8 &NTRADA8 and onl. a2out 56 to 45 "i"s; most @ust call it cho" and /al* a/a.? a/a.? & o>ten do that 2ecause o> the attention and >ocus needed to trade them "ro"erl.? &> .ou reall. /ant to tac*le it though; trade it the /a. most /ould; dra/ a ,channel- at the most common highs and lo/s; T%EN loo* >or 2ounces o= the 3556 lines >or a2out #5 "i"s to mil* it; 2ut DO NOT e:"ect an.thing larger+ 8ou 8ou can also ta*e ta*e trades /hen the #6 ,scoo"s,scoo"s- "rice u" or do/n do/n at the e:tremes e:tremes o> the range; 2ut again; DO NOT NOT e:"ect more more than a2out #5 "i"s? SO0ET&0ES .ou'll .ou'll get luc*. and hit a good 56 or #66 "i" trade in this stu=; 2ut mostl. @ust the #6 "i"s and $6 "i"s o> trading?
Summar0 &> .ou ta*e the the time to learn to use use the (rice Action Action and 2ounces o> the ConJuence o> E0As and ,Round Num2ers- as a lters >or entries and the E0As as Joating su""ort and resistance; resistance; this strateg. strateg. can literall. ma*e ma*e .ou rich? The man /ho hel"ed me learn most o> this and to /rite do/n all the rules averages a""ro:imatel. )6 to #66 "i"s "er da.? da.? %e does it da. in; da. out; no matter /hat the mar*et? %e did it during the most volatile mar*et mar*et ever seen in $66) and $66!? %e did it in the consolidation "eriod that >ollo/ed and he /as doing it 2e>ore that during the "revious trending mar*et? Several times & /atched him earn u"/ards o> 566 "i"s "er /ee* and .es; those are ,real,real- "i"s at at a >ull lot each "i" /ith onl. a V#6;666?66 account account to 2oot? 2oot? &n addition; several times he has ta*en a V566?66 account and gro/n it to over V5;666?66 in less than t/o months; then move 2ac* to earning a living l iving /ith that account? &> .ou thin* .ou need lots o> o> mone. to start; thin* thin* again? Starting /ith a large large account is a great /a. to lose a lot o> mone.? mone.? & /atched m. >riend ta*e a V366?66 dollar account to V#)66?66 in a2out a2out 1 /ee*s? A moth later that same account had over V5;666?66 in it? 9ol*s;;; that's a return return o> over #66 ever. /ee* and a hal>? hal>? &> he can do it; so can .ou? 7. the /a.; as as o> this /riting /riting he is trading trading to 5 standard lots ever. trade? trade? 8ou do the math on that? that? &t's a2out a million a .ear income+ income+ (atience is the the main *e. in all this? this? (atience (atience allo/s .ou to 2e less emotionall. emotionall. involved so .ou don't ma*e lots o> dum2 mista*es? +T06 TO T2E RULE+; and .ou /ill 2e @ust ne?
Dancing *ractice Learning to dance; /hether it's real dancing or this strateg.; reBuires "ractice? Al/a.s "ractice 2e>ore ma*ing a >ool o> .oursel> on a live dance Joor+ With that in mind; there there is a good /a. to do that? that? The rst and 2est /a. to to "ractice this is to use the Strateg. Tester Tester "rovided 2. uantem? %is thread is no/ in the 9ore:9actor. 9ore:9actor. Rec.cle 7in; 2ut the tool is still a good tool? %ere is the lin* htt"///?>ore:>actor.?comsho/thread?"h"PtQ464$ 8ou 8ou /ill "ro2a2l. have have a tough time getting to an. an. real ,success,success- on it 2ecause o> the /a. it /or*s; at least least at rst? 7ut stic* /ith it and .ou .ou W&LL start seeing some some success? The >ollo/ing are the ste"s to get good at this strateg.? strateg.? 8ou /ill also not 2e a2le to use the three chart setu" 2ecause o> ho/ the Strateg. Tester /or*s; 2ut it's great "ractice? #? At rst .ou .ou should @ust start a chart chart in the Tester and activate activate the tem"late ,The Dance- >or the chart? Then @ust sit and /atch ho/ it acts and reacts around the 0oving Averages and around the Round Num2er levels on several di=erent currencies? currencies? This /ill start to develo" develo" .our a2ilit. to ,see at a glance/hen trades are are >orming? &t /ill 2e as 2oring as suc*ing suc*ing nails; 2ut do it >or at least a da. or so on as man. currencies as .ou can @ust >or the e:"erience o> learning the /a. "rice moves around the 0oving averages and Round Num2ers? $? Once .ou >eel com>orta2le com>orta2le /ith the Tester; start start trading it and set the slide 2ar to no more than $4 so "rice action is slo/ enough >or .ou to actuall. ma*e trades in the tester? tester? ee" /ith it until .ou are are starting to see some success in trading this strateg.? strateg.? Remem2er to move .our SL "rogressivel "rogressivel. . and to move the T( /a. out in >ront to let the trades run i> the. do dou2le clic* it to move itF? Other/ise .ou /ill 2e sto""ed sto""ed on man. trades trades at the T( and then see see it run o= /ithout .ou? When trading the simulator; simulator; don't 2other /ith tr.ing tr.ing to gure out the actual mar*et time >rames; @ust trade ever. signal .ou see and don't get >rustrated >rustrated or 2e hard on .oursel> .oursel>?? The W%OLE "oint o> o> this is to allo/ .our su2conscious to 2egin to ,see- the trades so .ou can understand ho/ the. start and ho/ to enter them "ro"erl.? 3? A>ter no more more than a >e/ da.s or even even 2etter; "erha"s "erha"s a >e/ /ee*s; /ee*s; .ou should 2e at a "oint /here .ou can ,see- the trades >orming 2e>ore .ou actuall. ta*e them? them? When that ha""ens; it's time time to start to move to a more ,live- >ormat on a Demo account? Demo trading itsel> itsel> isn't /orth /orth much unless .ou have alread. dened in advance; strict trading rules and had some e:"osure e:"osure to them so .ou can actuall. actuall. stic* to them? While Demo trading; trade e:clusivel. e:clusivel . the mar*et times the Rules Rules call >or? 8ou W&LL 2egin to see the trades 2etter; and .ou W&LL start to have some success; though it ma. still 2e a /hile 2e>ore .ou reach an. *ind o> consistenc. in .our trading; 2ut stic* /ith it? ? When .ou >eel com>or com>orta2le ta2le /ith /ith the live sessions sessions in the Demo Demo account; account; o"en a live account /ith a 2ro*er 2ro*er .ou >eel .ou might li*e? There are are several that are acce"ta2le acce"ta 2le li*e Al"ari; &79; Ava9; Ava9; 9C0; 9C0; 9DD and man. more? ust do a search and nd one one .ou thin* .ou can live /ith? Remem2er; Remem2er; no 2ro*er 2ro*er is reall. ,good,good- all o> them have their issues? (ersonall.; (ersonall.; & use &79? &79? ust
remem2er to NEMER de"osit more than a V#66?66 in an. account until .ou get reall.; reall. consistent consistent /ith this strateg.? strateg.? Then; let the account gro/ itsel> as .ou trade? There is nothing stronger stronger or more satis>.ing satis>.ing that going through that "rocess; and .ou W&LL e:"erience all the ,issues- and ,"s.chologicalchallenges as /ith a larger account; 2ut /ithout losing huge sums o> cash? 5? ENO8 ENO8 TRAD&NK TRAD&NK +++ Don't ever let it 2ecome a >rustration to .ou? RealiHe it's a challenge and something .ou .ou CAN and W&LL master over over time? &t /ill ta*e a /hile; so 2e "atient /ith .oursel> as /ell as /ith the trading?
It's A 9usiness!!! As /ith all things; it ta*es a 2it o> time to get good at trading; 2ut no/here near as much time as most /ill tell .ou? .ou? & have heard o> traders traders ta*ing >rom >rom t/o to ve .ears 2e>ore 2ecoming consistent at trading and some even longer? longer? &> .ou treat this as a 2usiness; not a game o> chance; then .ou can dramaticall. shorten the time needed? All 2usinesses rst o> all; have a 7usiness (lan? (lan? When & started trading; that "art m.stied me? & have 2een an entre"reneur entre"reneur >rom >rom the time & /as ver. .oung and had m. rst ,real- 2usiness; as the o/ner; 2. the time & /as $$? 7ut >or some reason; reason; & couldn't thin* o> trading that /a.; not at rst an./a.? an./a.? %o/ in the /orld do .ou .ou create a ,7usiness ,7usiness (lan(lan- >or tradingP The ans/er >ollo/s?
J-" 1IS IS A 9(SINESS So;;; Lesson one one is learn that this is a 2usiness? &t /ill reBuire reBuire some time and dedication dedica tion to ma*e .our ne/ 2usiness success>ul? DED&CATE T&0E to .our ne/ 2usiness? Decide on /hich session o> the mar*et mar*et and /hich currenc. currenc. .ou /ill 2e trading and stic* to it+ DO NOT C%ANKE .our time; the currenc. currenc. or the strateg.? strateg.? Stic* /ith it+ 0ost /ho lose; lose; lose 2ecause 2ecause the. /ill not ,stic* /ith it? um"ing around around a lot /ill *ill .our ne/ 2usiness? 2usiness? &> .our customers couldn't count on .our merchandise 2eing the same and o> high Bualit. and .ou 2eing at the same "lace to do 2usiness all the time; time; the. /ould soon sto" sto" sho""ing /ith .ou? 8O 8O are .our customer? customer? &> .ou @um" around; around; .ou lose an. chance at develo"ing a high Bualit. "roduct .our trading strateg. and st.leF and .ou have no "lace o> 2usiness? A 2ro*er is NOT .our "lace o> 2usiness; the 0ar*et is? #E/E/9E# 1A! 8ou 1A! 8ou ma. change .our ,/holesaler- or ,su""lier- >rom time to time to get 2etter "rices or rates; 2ut NEMER .our "roduct line trading strateg.F or .our "lace o> 2usiness? 9rom time to time; .ou ma. im"rove .our "roduct line ne tune .our strateg. to 8OR 8OR /a. o> using itF 2ut .ou still need to o=er the same same "roduct+ &> .ou started /ith clothing store; store; .ou /ould stic* to clothing? clothing? &> .ou start /ith a s"ecic s"ecic strateg.; stic* to it? ust loo* >or /a.s to use it 2etter; 2ut ST&C TO T%AT T%AT STRATEK8 STRATEK8 until .ou master it+ 8ou 8ou do not need lots o> time; time; 2ut .ou need consistently t%e same time ; @ust li*e a 2usiness? 2usiness ? 8ou need ,o"ening ,o"ening hours- and ,closing hours- >or .our ne/ 2usiness to succeed? With no ,o"ening ,o"ening hours- .ou /ill never ,learn,learn- .our "roduct line; /hich is the mar*et? mar*et? With no ,closing hourshours- .ou /ill get e:hausted e:hausted and give u"? &> .ou do not ta*e the time to learn it 2e>ore .ou @um" o= into the dee" end; it is
ver. li*el. .ou /ill /ill get discouraged and >ail? (ersonall.; (ersonall.; & 2elieve more traders traders >ail 2ecause o> discouragement than >rom lac* o> ca"ital; lac* o> training or an. other cause? The. sim"l. give u" deciding it's too too hard; the. don't have enough mone.; or /hatever other e:cuse to give u" 2ecause the. are discouraged; that the. can nd? &'m not slamming an.one /ho decides it's not >or them; @ust tr.ing to shed a little light? Ever. trader /ho has succeeded /ill tell .ou that that it can 2e a ver. lonel. 2usiness; and ver. discouraging; es"eciall. i> .ou are sitting at home /ith no one or ver. >e/ to encourage .ou in .our ne/ 2usiness? 9(SINESS *LAN J3" %O( NEED A 9(SINESS &n the Yi" le that is included this manual; manual; .ou /ill nd an E:cel E:cel le? This manual and that le contain the ,2usiness "lan"lan- & used /hen & started this @ourne.; a>ter a .ear o> researching researching and trading e:tremel. small accounts >or e:"erience? e:"erienc e? 8ou ma. use it or change it as .ou see see t? 7it /hatever .ou do; stic* stic* to a "lan; a strateg. and a /a. to gro/ the results? 0. 2usiness goal at rst /as to gain at least 56 "i"s each and ever. single da. & trade? & am still still stic*ing to that goal? ee" in mind; it does NOT reBuire reBuire that man. man. to 2e success>ul? &> .ou gain $6 "i"s "rot "er da.; and never ta*e an. mone. out o> the account; increasing .our trades the /a. the "lan calls >or; .ou can achieve success in less than a .ear? .ear? AND; though some /ill laugh at this; even ridicule the conce"t; .ou .ou can earn literall. a million mill ion the rst .ear .ou success>ull. trade /ith this strateg.? strateg.? Earning $6 "i"s "rot isn't that hard and shouldn't ta*e more than an hour or so each da.; &9 .ou trade at the right times; and /ith a good strateg.? 8ou 8ou also need to "lan on s"ending s"ending time trading ver.; ver. ver. small accounts &N L&ME TRADES; /ith real real mone.; 2e>ore .ou @um" o= into the dee" end o> this "ool; or it /ill 2e a ver. e:"ensive lesson indeed? Trading L&ME; REAL accounts is the 2est /a. to go? Demo accounts are are nice i> .ou are @ust tr.ing tr.ing out strategies and so on; 2ut i> .ou are read. to start .our ne/ 2usiness; use live accounts /ith real mone. and "lan on losing some >or a /hile? 0an. 2ro*ers 2ro*ers o=er small accounts? Al"ari; &79; Oanda and several others /ill allo/ .ou to trade /ith as little as #6 dollars? DON'T T%&N 9OR A SECOND this is *idd. stu=; trading tin. accounts? 8ou do it >or a /hile and .ou /ill e:"erience ALL o> the emotions and "s.chological things that go /ith trading and it /ill cost .ou ver. little? As o> the /riting o> this manual; & have 2lo/n out several accounts; and never lost l ost more than a total total o> V$66?66 trading in m. ne/ 2usiness during the entire entire time? &n m. "revious li>e /ith other 2usinesses; & did much the same; & tested the /aters /ith real "roducts; services; or /hat ever. the 2usiness reBuired; on as limited a 2asis as & could to ,get a >eel- >or the 2usiness; T%EN & @um"ed in and did reasona2l. /ell? 7. the /a.; this is a good area to e:"lain /h. & nall. chose trading 9ORE as m. 2usiness? Ever. time & gre/ gre/ a good 2usiness; there there al/a.s seemed seemed to 2e someone;
some/here in the right "lace at the /rong time to mess it all u" and destro. /hat & had 2uilt? &n Trading; Trading; NO ONE can do that 2ut ,me- or ,.ou- in .our case? Even a 2ad 2ro*er 2ro*er /ho steals .our mone. mone. can't *ill .our 2usiness? 2usiness? The. can cause .ou to lose lose some time; and ma*e .ou have to go to another 2ro*er; 2ro*er; 2ut .ou W&LL succeed i> .ou stic* to it and once .ou master it; NO ONE can ta*e it >rom .ou? The ne:t thing is immensel. immensel. im"ortant; tattoo tattoo it on .our 2rain; carve carve it in the /all 2ehind .our com"uter so .ou can see it and never >orget it?
J5" +OLLOW 1E #(LES O 1E LEE# AND DO NO >A#% +#O/ 1E/ !! The Rules /ill /ill hel" .ou avoid >ear and greed; greed; the t/o strongest strongest *illers in this industr.? industr.? This "air can reall. reall. get .ou messed u" "s.chologicall. "s.chologicall . and get .ou to the "oint o> /anting to Buit? The >unn. thing is that .ou .ou ma. not even thin* .ou are are 2eing greed. or >ear>ul; so let me give .ou an e:am"le? 9EAR When .ou trade; i> .ou hesitate in the slightest in e:ecuting; "ulling the trigger; an. indecision at all is >ear? >ear? The same thing a""lies to e:iting a trade 2e>ore 2e>ore the Rules tell .ou to? 7OT% o> these these >ear 2ased scenarios scenarios /ill *ill .our ne/ 2usiness 2e>ore 2e>ore .ou have a chance chance to even start start it? 7OT% /ill cost cost .ou "i"s? %esitating ma*es .ou miss o""ortunities AND WORST; it ma*es .ou dou2t the Rules; .our @udgment and decisions? T2AT is 5atal and and it is all >ear 2ased? As .our account gro/s; >ear /ill tr. to tell .ou that >or some reason; #6 o> V#66?66 is less stress>ul to lose lose than #6 o> V#;666?66 or #6 o> V#66;666?66? The truth is it is still still @ust #6 and nothing more? more? &t's all a matter o> "ers"ective "ers"ective and as .our account account gro/s; so should .our "ers"ective+ The "ro2lem is not not the "ercentage; "ercentage; it is .our >amiliarit. /ith the amounts amounts re"resented re"resented that o"ens a door door to >ear in .our trading? trading? & once had a 2oss /ho /ho told me m. main "ro2lem in sales /hat that & had never earned a si: gure income; 2ut once & did; it /ould 2ecome easier and easier to earn earn it and to learn to gro/ gro/ it? %e /as right? T%E SA0E A((L&ES A((L&ES TO TRAD&NK+ &> .ou listen to all the na.sa.ers telling .ou ho/ it ,can't 2e done;- their "oison /ill in>ect .ou /ith the same dou2ts dou2ts and limitations? Avoid them at all costs and nd "eo"le /ho can encourage .ou /ithout selling .ou their ,cra"- /a. o> doing things? There are are /a. more than than enough >ree >ree resources resources around to ma*e ma*e sure sure .ou get /here /here .ou /ant to 2e in .our trading? trading? ust DON'T K&ME K&ME (+ KREED Kreed is also e:tremel. e:tremel. innocuous innocuous in trading in its "resentation? "resentation? Loo*ing to get ,@ust one more "i""i"- is greed @ust as much as /anting to ro2 ro2 a 2an*? T%ERE &S NO D&99ERENCE; es"eciall. not /hen /hen .ou are trading? trading? %anging on to a losing trade trade too long is greed; and also "erha"s >ear? >ear? 9ear .ou /ill lose i> .ou e:it a 2ad trade; and greed that it /ill come 2ac* to .ou and .ou have to hang on to the trade? Kreed can ma*e .ou not ta*e that rst >e/ "i"s /hen the "rice movement hesitates
a tin. 2it too long? Kreed /ill sa. ,/ell; ,/ell; it's onl. 2een a >e/ seconds seconds longer than normal;- then it /ill sa.; ,hang on a 2it;; it's still going .our /a.?/a.?- Then it /ill sa.; ,2ut the trade /ill come 2ac* reall. reall. Buic*?- All those are 2ased 2ased on Kreed?
JK" AE %O(# *I*S NOW! At the ver. rst sign o> "rice hesitating too long; ta*e /hatever "i"s .ou have on one "osition; even i> it's onl. three "i"s+ TAE T%E0 and move to 7rea* Even on an. other "osition .ou have o"en on that currenc.? currenc.? Then sit 2ac* and /ait condent that .ou have made made a "rot? There /ill /ill 2e another trade along in a >e/ minutes and .ou can catch more "i"s then too? Don't 2e a>raid to "ull the trigger to enter; or to loc* in those rst >e/ "i"s; or too greed.; /anting more? TAE 8OR 8OR (&(S NOW+ ee" ee" in mind that the ,time e:"osuree:"osure- to the mar*et is at least as "o/er>ul a ris* as the "ercentage o> .our account .ou trade /ith on on each "osition? Shooting >or multi"le shorter; shorter; stronger stronger trades is an a/esome /a. to ,TAE 8OR (&(S NOW +++-
J." 7E O( NOW! Once .ou hit .our target target >or the trade; or get an e:it signal; signal; KET OT NOW+ NEMER /ait; @ust get out and ta*e .our "i"s? 8ou can al/a.s nd another trade; it ma. even 2e 2etter and give .ou more "i"s; 2ut remem2er the old sa.ing ,a 2ird in the hand is /orth t/o in the the 2ushP- &t's true;;; the "i"s .ou alread. have earned earned are the 2est "i"s .ou /ill ever have? TAE T%E0 NOW+ NOW+ &t is es"eciall. critical to >ollo/ the rules rules on this issue? &t reduces ris*; ris*; increases .our account; 2uilds .our condence and a hundred other good things? ,8ou ,8ou never go 2ro*e 2ro*e ta*ing a "rot"rot- is another old 2usiness ma:im? &t's also true? ,A Buic* nic*el is 2etter than a slo/ dime?- T%AT one is amaHingl. amaHing l. true? 0one. has a ver. denite time value and the more time .ou s"end /aiting to earn that ne:t "i"; is more time at ris*? &n >act; i> .ou are using using an account that increases increases .our trade ever. time .ou trade automaticall.; the smaller trades can 2uild u" amaHingl. Buic*l.? Buic*l.? &n addition; /aiting >or that ne:t "i" ma. cost .ou a 2etter trade that is currentl. currentl. onl. develo"ing on a di=erent currenc.+ currenc.+ Never 2e too greed. or to a>raid to ta*e .our "i"s NOW+
J" WAI *AIENL%!! ,(atience is a virtue?- This is the strongest lesson to learn in trading? 7E (A (AT&ENT in /aiting >or the right setu"s setu"s to ha""en? When the. sa. ,Let ,Let the mar*et mar*et come to .ou;- this is /hat the. mean; mea n; 7E (AT&ENT (AT&ENT?? 8ou can't "ush a river; shoot "ool /ith /i th a ro"e; >all u"stairs; or hurr. the mar*et? 0a*ing lots o> trades is the /rong a""roach a""roach in all situations? situations? Even in scal"ing; there there is a "er>ect setu" to loo* >or? >or? Ta*ing su2standard su2standa rd trades is an e:cruciating e:cruciatin g /a. to learn "atience and e:tremel. costl.? costl.? Remem2er; .ou are learning a 2usiness; not a cra" shoot or some sort o> gam2ling? Even in card games such as 7lac*@ac*; (o*er; (inochle; Rumm. and so on there are rules to live 2. and violating the rules means certain death o> the e=ort and
eventuall. the enter"rise? enter"rise? &t is the same same in the 2usiness 2usiness o> trading trading 9ORE? &> .ou ta*e ONL8 ONL8 the strong; i?e? ,"er>ect- trade setu"s; .our "ro2a2ilit. o> success is much greater and the "otential "rot o> the trades is also much higher? No/; i> .ou don't thin* that 2usiness has much to do /ith "ro2a2ilities; li*e 9ORE; let me enlighten .ou? NO ONE has a cr.stal cr.stal 2all on /hat "roduct; "roduct; or /hat advertising /ill gain a2solute success? There ARE strategies strategies that /or* much 2etter than others and 2ring lots o> success; 2ut it is still a ,game- o> "ro2a2ilities? When 7urger ing started; the. the. >ollo/ed a ver. sim"le strateg.? strateg.? 0cDonald's /as alread. e:tremel. e:tremel. success>ul and the lines o> those /aiting to 2e served /ere gro/ing? So; the man /ho >ounded 7urger ing thought o> a sim"le strateg.? strateg.? &t /as to 2uild a 2urger sho" across the street and count on the >act that 0cDonald's had alread. done the "ro"er research to 2e success>ul and then sim"l. /ait >or the overJo/ >or his ne/ restaurants? restaurants? &t /as a sim"l. 2rilliant "lan; and o2viousl. /or*ed? 9ORE is that sim"le? Trading the trend /or*s; using (rice (rice Action 2ars /or*s; using su""ort and resistance resistance /or*s? The 0ar*et 0ar*et ,2reathes- meaning that "rice rises and >alls 2ecause o> the com"eting traders in 2u.ing and selling "ositions? All o> that is alread. "roven "roven in the histor. o> trading; as /ell as the histor. o> 9ORE? All that is le>t le >t is to nd a S&0(LE method .ou can use to im"lement those ideas? The sim"ler to im"lement and ,see,see- and use; the more more "rota2le the method method or strateg. /ill 2e? Lastl.; no 2usiness model model is stagnant or static? static? Ever. 2usiness needs needs constant attention as customer needs and desires and "roduct su""l. and im"rovements as /ell as costs o> doing 2usiness 2usiness are in a constant constant state o> Ju:? &T &S NO D&99ERENT >rom 9ORE? With that in mind; ever.thing in this manual u" to this "oint is aimed at hel"ing .ou to understand that this is a 2usiness and .ou can master it and 2e /ildl. success>ul? AND it should NOT ta*e ta*e .ou .ears to get there? there? All it reall. ta*es ta*es is a decent; sim"le 2usiness "lan; li*e this one 2uilt on the strategies and methods "roven over decades to /or*? Ever.thing in this manual and the attached E:cel s"readsheet is .our 2usiness "lan? ee" it sim"le sim"le and stic* to it? All 2usiness o/ners need some time to learn learn to master their 2usiness? 2usiness? 9ortunatel.; 9ortunatel.; .ou can master this one in .our s"are s"are time; as long as .ou treat it li*e a 2usiness; set aside dedicated time >or trading at the same time ever. da. and stic* to the rules e:clusivel.? No/; let's learn to actuall. trade?
/aster the 9asics +irst This is one o> the most critical critical "arts o> an. 2usiness? 2usiness? The 2asics /ill ma*e ma*e or 2rea* .ou? The 2asics o> this strateg. have have 2een laid out clearl. in this manual? manual? 0ASTER T%E0 9&RST; 2e>ore 2e>ore .ou do an.thing else; 0ASTER 0ASTER T%E 7AS&CS? 0aster the
constrainment entries and 2ounces o= the 56 E0A 9&RST; and use the ,Round Num2ers- >or guidance on e:its or to sta. in a trade+ Constrainment entries entries are the a2solute 7EST there are in this strateg.? Loo* >or "rice 2eing constrained 2. one o> the E0As o> a conJuence o> E0As and Round Num2ers 2e>ore 2e>ore .ou start tr.ing to get >anc.? >anc.? There are enough o> them to allo/ .ou to ma*e tons o> "i"s? 0ASTER T%ESE 9&RST+ Trade Trade them relentlessl. relentlessl. in demo or in a ver.; ver.; ver. small live account until until the. 2ecome mind num2ingl. 2oring 2oring and com"letel. reJe:ive? reJe:ive? &n other /ords; /ords; ma*e it such a reJe: that /hen .ou see the good 2asic trade; .ou ta*e it /ithout a single thought? T%EN .ou can move to ma:imiHing .our trades?
/aster he rades! Once .ou have mastered the 7asic Rules and Entries and started to learn to ta*e 2etter and >e/er trades a 2it; it's time to start mastering the actual Trade itsel>? This is done 2. using 0one. 0one. 0anagement s*ills and managing ris* at the same same time? A lot has 2een said in man. areas o> minimiHing the ris*s; and lots o> tal* is a2out limiting ris* 2. the siHe o> the trade? trade? 0ost /ill tell .ou not to ris* ris* more than 3 3 on an. given trade? To me; this is more more o> a "ersonal thing than a hard and >ast rule? & *no/ o> traders /ho use 3; some /ho use $; some /ho use 5 and a >e/ /ho go much higher? higher? &t's all a2out .our "ersonal "ersonal condence; e:"erience e:"erience and a2ilities? To To 2e honest this "art "art is also amaHingl. sim"le; i> .ou .ou are /illing to stic* stic* to it? &t eluded me >or a long time; 2ut no/ & /onder ho/ & ever missed it? When & trade; & o>ten 2ut not al/a.sF use t/o "ositions "osition s in the same currenc.? currenc.? 7OT% o> them are a 3 to ris* /ith the e:act e:act same Sto" losses? losses? & use one to eliminate the ris* Buic*l. and loc* in "rots; and the other one to allo/ the trade to run and ma:imiHe "rots? Once & enter a trade; at the rst sign o> strong resistance or "rice action hesitation; & e:it or tighten u" m. Sto" Sto" Loss as close as "ossi2le /ithout /ithout ,cho*ing- the trade? & al/a.s move to 7E # as soon as & >eel it is "ossi2le /ithout cho*ing out the trade? That is as sim"le as trade trade 0anagement gets to me? No one has a cr.stal 2all to determine that even /ith all our e=orts and rules the mar*et /ill denitel. go our /a.? /a.? & have entered man. ,"er>ect- setu" trades onl. onl. to have (rice go m. /a. ) to #5 "i"s then hesitate and "lunge against me hard; leaving me /ith a loss /hen & had a "rot? 9or that reason reason o>ten & /ill move to loc* in "rots at the rst sign o> strong hesitation; /hich o>ten o>ten occurs at either ); #$; #5 or or #) "i"s? & am not sure sure the reason >or those gures and have no hard data to "rove them; 2ut those are the areas & have noticed in my trading? 8ou ma. notice other areas? 9eel >ree to learn to ,>eel- this "art "art o> the strateg. on .our .our o/n? &t is a2out .our "ersonal "ersonal ris* and condence a>ter all? &> a trades runs strong; & sim"l. trail the sto" as "reviousl. descri2ed?
8ou 8ou can ma*e ma*e this a lot more more com"licated; 2ut it's not necessar. necessar.?? Remem2er Remem2er the goal is to 2e consistent; consistent; not hugel. accurate? &> .ou consistentl. loc*ed loc*ed in onl. ) "i"s "er trade and made three trades a da.; .ou /ould still have a million dollars in a 2it over a .ear? DO NOT get greed. here++ here++ se this to mitigate ris* ris* and to ma:imiHe .our trading trading CONS&STENC8; CONS&STENC8; ma:imiHing "rots /ill /ill come /ith e:"erience? &t is more im"ortant im"ortant to 2e consistent than to ma*e huge gains each time?
/a,e It %ours! No/ comes the reall. >un "art? 0a*e it .ours+ This; all o> this to this "oint; /as to get .ou to /here .ou could 2e consistent and that is the ONL8 goal o> this manual? A sim"le /a. to ,see- and ta*e the trades /ith clear ,signals- to achieve consistenc.? Once .ou get here; here; the >un reall. 2egins? 2egins? No/ .ou can "la. /ith an.thing an.thing .ou /ant to; as long as .ou *ee" consistent /ith .our .our trading? Never Buit "rinting mone.? mone.? That's right; "rinting mone. mone.?? That's /hat trading trading is all a2out? Learning a strateg. to the "oint o> it 2oring .ou immensel.? immensel.? &> .ou are not 2ored; .ou have not 2ecome consistent consistent .et? Once .ou do; the dollar amounts amounts /on't 2other .ou? The num2er o> "i"s /on't im"ress im"ress .ou? What /ill im"ress im"ress .ou is the the >reedom >reedom that a good strong income 2rings? & remem2er the rst time & "aid cash >or m. car; m. daughter's car; m. girl>riend's car; her daughter's car and m. house? All o> it in the same "art o> the same .ear? .ear? What an amaHing sense o> o> >reedom+ T%AT T%AT is the goal o> trading; trading; not sho/ 2oating a2out the huge gains; 2ut the 2oring; stead.; consistent gro/th gro/th o> great /ealth? Once .ou start to 2ecome consistent; .ou /ill 2egin to ,see- and recogniHe good; solid "rice setu"s almost /ithout loo*ing to nd them? The goal o> all trading is to 2e a2le to sit do/n at a screen and *no/ in a >e/ moments /here in the ,schemeo> "rice action .ou are and i> .ou have a trade no/; or one 2eginning to setu"? 9rom there; .ou can modi>. this or an. other strateg. .ou /ant to to ma*e things e:citing; i> .ou need e:citement in .our trading; @ust remem2er *ee" one ver. large account a>ter .ou gro/ itF >rom /hich .ou harvest mone. >rom the mar*ets? Then 2e as e:cited as .ou /ant /ith much smaller accounts? Who *no/s; .ou might nd and "ro2a2l. /illF a strateg. that is 2etter than this one and /hich ts .our "ersonalit. "ersonalit. much 2etter? 2etter? Then .ou can reall. reall. 2egin to have >un trading? Kod 2less?
A +ew Lie E=am&les The >ollo/ing are e:am"les e:am"les o> real real entries? These are 2. no means e:haustive? e:haustive? There are are lots and lots o> good e:am"les on the 9ore:9 9ore:9actor. actor. thread thread titled; ,The Dance?- (lease visit that thread thread >or an. ne/ versions versions o> this strateg.'s strateg.'s manual; tools; "roles or tem"lates?
ouch rade o< the 5.$.4 lines: comments lines: comments on the charts
ouch rade o< the -4 E/A: comments on the images below
0ore trades
Ne=t Series o three: images
Ne=t Series: o three images
Once I e=ited8 the trade then ran on or another .4 &i&s"
Constrainment entries: The rst is a #6 E0A constrainment constrainment entr. the the second a 35 S0A S 0A entr. en tr.?? #6 E0A constrainment entr.
35 constrainment entr.
A +ine uning E=am&le:
There are are man.; man. more more on the 9ore:9 9ore:9actor. actor. >orum thread thread ,The Dance-? Ko en@o. it and trade /ell and sim"l.?
3
Author's Note
3
What this manual DOES NOT cover
5
The Rules Additional Considerations and Denitions
5 !
The Sim"lied Rules Rules
#$
T%E CARD&NAL RLE
#3
sing (rice Action
#3
Chart Setu"
#)
Ta*ing Ta*ing The Trade+ Trade+
#!
The Constrainment Trade Trade
$#
The AAA ,Touch,Touch- Trade Trade Entr.
$$
%o/ To Let The 0ar*et ,Sho/ &t's %and-
$1
(utting &t All Together
$)
Rening the Entr.
$!
A Word A2out Wic*s
3#
Sta. OT+
3#
Trade Trade Ris* 0anagement
3$
Trailing Trailing the SL
35
Setting " The Charts
34
sing The (role
6
sing The Scri"ts
#
Dancing (ractice
1
&t's A 7usiness+++
4
0aster The Trades+
5#
0a*e &t 8ours+
5$
A 9e/ Live E:am"les
53
Co".right Cla. 9errell; 9errell; $66! < $6#6 an. e=ort to change >or this 2asic set o> rules o> the strateg. is strictl. >or2idden unless "rior /ritten "ermission is granted 2. the author?
Legal Disclaimer: extremely risky activity activity 2ut is "otent Trading Trading >oreign currencies currencies is an extremely "otential iall. l. a "rota2le o""ortunit. >or educated and e:"erienced investors? 7e>ore deciding to "artic "artici"a i"ate te in the 9ore: ore: mar* mar*et; .ou should should care>u care>ull. ll. consid consider er .our .our invest investmen mentt Most import important antly ly,, do not o2@e o2@ect ctiv ives es;; leve levell o> e:"e e:"eri rien ence ce and and ris* ris* a""e a""eti tite te?? Most invest money you cannot aford to lose ? There is considera2le e:"osure to ris* in an. >oreign e:change transaction? An. transaction involving currencies involves ris* ris*s s incl includ udin ing; g; 2ut 2ut not not limi limite ted d to; to; the the "ote "otent ntia iall >or >or chan changi ging ng "olit "olitic ical al and andor or econ econom omic ic cond condit itio ions ns that that ma. ma. su2s su2sta tant ntia iall ll. . a=ec a=ectt the the "ric "rice e or liBui liBuidi dit. t. o> a curre currenc. nc.;; the ris* ris* o> settle settlemen mentt discr discre"a e"anci ncies; es; 2ro* 2ro*er er erro errors rs and mal>ea mal>easan sance; ce; outright >raud and man. others?
0oreover; the leveraged nature o> 9 trading means that an. mar*et movement /ill have an eBuall. "ro"ortional e=ect on .our de"osited >unds? This ma. /or* against .ou as /ell as >or .ou? The "ossi2ilit. e:ists that .ou could sustain a total loss l oss o> all initiall. de"osited margin >unds and 2e reBuired to de"osit additional >unds to maintain .our "osition /ith an. given 2ro*er? 2ro*er? &> .ou >ail to meet an. margin calls /ithin the time "rescri2ed; .our trading "osition ma. 2e liBuidated and .ou ma. 2e res"onsi2le >or an. resulting losses; including amounts "otentiall. more than .our de"osit? The content "rovided "rovided herein is "ut >or/ard >or/ard in good good >aith and 2elieved to 2e accurate accurate and e=ective; ho/ever; there are no e:"licit or im"licit /arranties o> an. *ind made in connection /ith this in>ormation? in>ormation? Should .ou choose to use use this strateg.; .ou /ill /ill 2e trading e:clusivel. at .our o/n ris* o> .our o/n >ree /ill? 7. using this Strateg.; the reader thats .ou+F agrees not to hold the author o> this in>ormation; or an. o> his or hers aGliates; assigns; or heirs lia2le >or and to e:"licitl. hold harmless >rom an. decisions that .ou ma*e 2ased on in>ormation contained in this document; or an. in>ormation >ound on an. electronic >orum or >rom an. email discussing this strateg.; no matter /here it is or /here this strateg. /as "ut >or/ard? &> .ou do not agree /ith the all o> the a2ove; do not trade using an. o> this in>ormation in>ormati on or an. "art o> this strateg.? strateg.?
Author's Note: Learning to trade is a ver. "ersonal thing? The @ourne. can 2e e:tremel. >rustrating; is almost al/a.s a lonel. @ourne.; 2ut is al/a.s /orth it? Rule num2er # in learning to trade 9ore: 9ore: is that .ou can get ever.thing .ou need >or >ree i> .ou are /illing to do some research research and some /or* on .our o/n? o/n? (a.ing >or ,s.stems- is stu"id? The. are a dime dime a doHen and al/a.s /orth /orth less than .ou "a. >or them? 8our o/n mind is the onl. thing .ou need? 7en@amin 9ran*lin 9ran*lin said; ,Em"t. .our "urse into .our mind and .our "urse /ill never 2e em"t.+ That is amaHingl. good advice? advice? Training Training is /orth "a.ing >or; >or; 2ut in 9ore:; 9ore:; .ou .ou can get all .ou could ever /ant or need mostl. >or >ree? 9or the most "art & have >ound trading to 2e an arena lled /ith tons and tons o> /anna2e gurus; sheister "romoters and most im"ortantl.; ,sel>I>ullling "ro"hecies?"ro"hecies ?- 9or e:am"le; 9i2onacc 9i2onaccii lines; Andre/s (itch>or*s; 0oving Averages Averages and Su""ort Resistance Resistance levels all /or* reall. /ell 2ecause so ver.; ver. man.
"eo"le use them; 2ut the. o>ten >ail as /ell 2ecause some larger "la.er moves the mar*et or some other inJuence does? ,Round ,Round Num2ers- also /or* ver. /ell >or the same reasons? reasons? There is nothing magical in an. o> this; @ust "lain old human human "s.cholog. at /or*? /or*? 9ear *ee"s *ee"s "eo"le tra""ed and ma*es ma*es certain levels stronger stronger than others? others? Kreed does much much the same @ust in a di=erent /a. /a.?? &> .ou /atch "rice action around Andre/'s "itch>or*s; .ou /ill see the e:act same sort o> movement as .ou do around around longer term 0oving Averages? Averages? Nature loves a 2alance and "eo"le instinctivel. understand that? What goes u" must come come do/n; ever.one *no/s *no/s that+ &nertia *ee"s *ee"s moving o2@ects in motion and resists resists o2@ects at rest rest >rom movement? movement? Ever.one *no/s that that too+ Li>e is lled /ith c.cles; /hich scientists no/ call ,circadian ,circadian rh.thm?rh.thm?- Night and da.; rise and >all o> the tides; slee" and /a*ing; e:citement and de"ression? Ever.one *no/s this too+ 9ractal technolog. is the science o> ho/ larger things are 2uilt on smaller things? ust loo* at a tree? tree? One line ,2ranches- into multi"le multi"le lines and eventuall. /e have the sha"e /e recogniHe trees to have; 2oth in 2ranches and roots? (eo"le have 2een tr.ing to a""l. all these "rinci"les in di=ering methods to the mar*ets >rom >rom /hen the rst mar*et mar*et "lace /as ever created? ust loo* at ho/ long the a"anese *e"t records records o> the rice mar*ets mar*ets /ith candlestic* charts? The same is true o> the grain mar*ets in more Euro"ean areas; areas; @ust not /ith candle stic*s? The /hole "oint in all this is that li>e is 2uilt on sel>I>ullling sel>I>ullling "ro"hecies and e:"ectancies? So are are the mar*ets? mar*ets? &t is s"ecicall. the ,sel>I>ullling ,sel>I>ullling "ro"hecies"ro"heciesthat ma*e 9ore: 9ore: tradea2le and "rota2le i> .ou learn to use them e=ectivel. e=ectivel .? Also; each "erson is 2uilt di=erent and di=erent ,sel>I>ullling ,sel>I>ullling "ro"hecies- /ill /or* >or di=erent "eo"le Trading Trading is no more more diGcult than nding one or more more o> these that that .ou can understand; ,see- clearl. on a chart and trade e=ectivel.? e=ectivel.? &t's reall. more more li*e a dance or a video game than an.one /ants to admit? There is an old countr. countr. /estern /estern song that sa.s; ,One ,One ste" >or/ard >or/ard and t/o ste"s 2ac*; no one gets gets ver. >ar li*e that?that?- 7T; that is not true? &n a dance there are are t/o "artners? One One leads; one >ollo/s? 9or the the most "art the ,male- leads and the ,>emale,>emale- >ollo/s? She is traveling along in the the dance @ust as >ast as he is; onl. she is doing doing it 2ac*/ards+ 2ac*/ards+ She is also ta*ing all o> her ,cues>rom him? Without 2oth 2oth "artners there there /ould 2e no dance? &n trading; the mar*et is ALWA8S the ,male- and traders are ALL ,>emale- ta*ing their cues >rom ,him- AND; the. must do it in res"onse ra"idl. and 2ac*/ards? &> one over anal.Hes a dance techniBue the. mess it u"; the ,Jo/- o> the dance su=ers and sometimes sometimes the. even get hurt? &> the. don't understand understand the cues the same thing ha""ens; onl. o>ten it's /orse? Trading is no di=erent? So; learn to dance? Learn to ta*e cues >rom the mar*et and @ust have >un+ Credit where Credit is Due! This strateg. is a com2ination com2ination o> t/o main strategies strategies that & greatl. greatl. admire? The rst is trading 0oving Average Average 2ounces /hich osh 9ord 9ord taught me? Second is ames#1
>or his thread on (rice Action 7ars at 9ore:9actor. 9ore:9actor.?? Lastl. & learned a2out a2ou t ,Round ,Round Num2ers- and their e=ects reading ac*o's Thread also on 99? All & reall. did /as to listen attentivel. to /hat osh taught me and a nd document man. o> the ,nuances,nuances- o> trading 0oving 0oving Averages Averages the /a. he does it? &t is amaHingl. "o/er>ul+ A Word About Idiots and Neanderthals This strateg. /as originall. originall. "osted to 9ore:9 9ore:9actor. actor. /ith the intent o> o> it 2eing a ,>or >ree- trading strateg. strateg .? Nothing /as ever as*ed >or in return return and no o=ers /ere ever made in regards to its use; training to use it; and the Author NEMER EMER trades AN8 managed accounts? There is no need to? to? Still; >or some reason a >e/ decided that the Author's ,/riting st.le- /as similar to some idiot /ho su""osedl. de>rauded some on that >orum 2. trading managed accounts? Though & am not >amiliar >amiliar /ith the stor.; let me sa. sa. this? AN8ONE AN8ONE /ho EMER gives their hard earned cash to a stranger the. meet on an internet >orum >or trading; is as much o> an idiot as the "erson doing the trading is? 7OT% o> them are reall. stu"id? With that said; the neanderthals on 9ore:9 9ore:9actor.; actor.; /ithout an. evidence o> an. *ind; and the lame 2rained site administrator /ho admitted in his "ost 2anning the Author that he had NO hard evidence o> AN8 *ind; still destro.ed the teaching o> a ver. solid and >ree strateg. to man. /ho reall. needed that >ree teaching? The strateg. is still there there in the ,Rec.cle ,Rec.cle 7in7in- i> .ou /ant more in>ormation in>ormation on this this 2asic set o> rules at the >ollo/ing lin* and a trader using the screen name o> ostas# ostas# has ta*en it u"on himsel> to continue the original /or*; /ith this Author's a""roval? a""roval? T%&S manual is "ro2a2l. "ro2a2l. "osted on his thread thread to *ee" *ee" m. /ord that that & /ould reI/or* reI/or* it a 2it and to assist him in his e=orts to continue the /or* teaching The Dance? The Dance is here htt"///?>ore:>actor.?comsho/thread?"h"PtQ$$1!4 ostas#'s thread is here htt"///?>ore:>actor.?comsho/thread?"h"PtQ$31$#6 Disclaimer The Author o> this manual has no relation to the trader *no/n as ostas#; and is NOT res"onsi2le in AN8 WA8 >or /hat is taught on that thread and acce"ts NO lia2ilit. in an. /a.; sha"e; >orm or >ashion >or /hat occurs on that thread?
What this manual DOES NO coer" This manual's "ur"ose "ur"ose is to clean u" a 2it some o> the the rules and the 2asics o> The Dance >ore: trading strateg.? strateg.? &t is NOT a ,s.stem- and reBuires the reader to actuall. learn to trade? 7ut the re/ards >or that learning are staggering indeed /ith an average o> increase dail. "ossi2le until the account 2ecomes large enough that liBuidit. 2ecomes an issue? &T DOES NOT include AN8 o> the ,advanced- rules though some are alluded to in the sections /here using ,Wic*s- is mentioned and a nd others? 8O 8O can also gure out out the advanced rules sim"l. sim"l. 2. their names &9 .ou .ou are /illing to s"end some time in the Simulator and in trading Demo >or a /hile The Advanced Rules; Rules; i> & ever decide to ma*e ma*e them "u2lic a>ter m. e:"erience at
teaching >or >ree at 99; are sing Dail. Wic*s >or entries and e:itsF; sing %ourl. Wic*s and Long Wic*s >or entries and e:its; %ome On The Range trading ranging mar*etsF; Scoo"ed trading strong reversalsF and (ing (ong learning to trade the ,"ing "ong- area on the %#; D# and SO0ET&0ES the 0#5 charts?F There are are a >e/ more; 2ut 2ut &'m doing T%&S revision revision e:clusivel. to *ee" m. ,/ord,/ordthat & /ould do one and give it >or >ree as /ell? & still DO NOT *no/ /hat & am going to do .et; a>ter the asco at 99; 2ut & /ill @ust *ee" mastering m. strateg.; ma*ing mone. and learning and hel"ing 9OR 9REE; a >e/ /ho have as*ed as*ed me to hel"? & W&LL NOT 2e acce"ting an.one an.one to mentor /hich is also 9REE /hen & do itF?
he #ules: 7e>ore /e 2egin the rules section; .ou need to ma*e some decisions a2out .our trading right no/; right right here? &> /hat .ou are are loo*ing >or is a never >ail; >ail; "oint and clic*; automated; does it all >or .ou sort o> thing; "lease don't trade at all; &m not sa.ing don't trade The Dance; &'m sa.ing nd something else to /aste .our mone. on? &> /hat .ou /ant is reall.; reall. high "i" counts; "lease move on? That is NOT the "ur"ose o> The Dance? &> .ou /ant to trade trade ever. signal .ou see; move move on to some other strateg. or s.stem? The Dance is not >or .ou? &9 .ou /ant to learn to trade a sim"le s.stem that is >airl. eas. to learn; lea rn; ma*e ma*e lots o> mone. and never need more more than 6 "i"s a da. to do it? Welcome Welcome home; this is the "lace? With time; .ou /ill also get get to the larger "i" "i" counts and to /here /here .ou can ma*e a lot more trades; 2ut the 9&RST thing .ou have to do is master ONE strateg. and no more than t/o or three t."es o> entries and NEMER var. >rom them? T%AT T%AT is /hat "ro>essional "ro>essional trading is a2out? a2out? A disci"lined a""roach to trading that consistentl. earns earns .ou income income and /ealth? %ere are are the rules? rading imes: #? Trade ONL ONL8 8 during during the London$ the London$ N% Oerla& or (SD "airs? (SD "airs? $? Trade ONL ONL8 8 during during the Asian$London Oerla& or )*% "airs? "airs? 3? Trade ONL ONL8 8 during during the +ran,urt or E(# E(# "airs? "airs? #? O2viousl. some some "airs t more more than one one session? Loo* u" the times on .our o/n? Do SO0E /or*+ /or*+ & use Eur".; K2"sd K2"sd and Aud". 2ut onl. onl. ONE on a chart at a time? &t has m. TOTAL TOTAL attention /hen & trade; trade; /hichever one it is? ime +rame: -" -. /inute charts ONL% ONL% or all entr0 entr0 signals" #? The other charts are are >or direction direction and ne ne tuning the entries and e:its e:its as needed? $? The ti"s o> /ic*s /ic*s on %#and %#and D# are great SR Levels to ta*e ta*e trades trades o= and >or e:its? 3? Onl. ,Touch,Touch- trades are are acce"ta2le on %# and D# and and should also match (A on 0#5? Chart setu&:
#? No more than ONE ,main,main- chart set to 0#5 and t/o smaller charts charts >or each ,main- currenc.? currenc.? Smaller charts chart s are set to %# and one to D#? 05 is ONL8 ONL8 used to ,ne tune- an entr.; 2ut DO NOT NOT use it in the setu"? Learn to change change the T9 on the 0#5 to use use it? Entries: #? rade WI1 the 2trend o> 2trend o> the moment- +O# ALL trades ALL trades and assume the trend /ill continue >rom the "revious session on the rst entr.? entr.? &> .ou 2ecome reall. "rocient; .ou /ill learn to trade ,ranging- and Scoo"ed " areas as /ell; /hich are discussed later? 3" he .4 E/A E/A with the 5. S/A moing aerages aerages determine the trend or the moment on /-.! #? Loo* >o >or longs ONL% /hen /hen (rice; is a2ove the 56 E0A 35 S0A Lines? $? Loo* >or >or shorts ONL% /hen /hen (rice; is 2elo/ the 56 E0A 35 S0A Lines? 5" NO E6CE*IONS E6CE*IONS or beginners! *rice and 1E .4E/A$ 5. 5. S/A /(S A7#EE WI1 1E #ADE8 *#E+E#A9L% +#O/ A *(LL 9AC O the .4 or 5." 5" 2ouch 2ouch rade rade Entries; Entries; #? a,en o< o a stee& 5. S/A are onl. acce"ta2le &9 (rice has have moved at least #5 "i"s in the direction o> the trade; and o""osite the ,touch- /hich is a short; ver. >ast ,run u"- or ,run do/n- to the Lines? e:"lained in the "rice action sections?F #? ,Touch ,Touch TradesTrades- o= the 35 S0A S0A and 56 E0A are also also ver. eas. to see 2ut 2ut 0ST 2e ta*en ONL8 i> the E0As are "arallel or ,on to"- o> each otherF and at a stee" angle; sa. a2out $6 Degrees or more as sho/n later in this manual? 7e MER8 MER8 care>ul i> the. are are nearl. horiHontal as the the trade is much much /ea*er? $? A ,Touch,Touch- 2. denition is usuall. onl. t/o or three three 2ars in the the reverse more and most o> the time onl. one or t/o? #? &> there there are lots o> smaller smaller 2ars 2ars as "rice a""roache a""roaches s the lines; lines; DO NOT ta*e the trade; /ait >or "rice to demonstrate res"ect >or the line or constrainment? 3? %igher Time Time 9rame 9rame ,touch- trades trades against an. 0A are MER MER8 "o/er>ul? LOO 9OR T%E0+ $? a,en o< a stee& -4 E/A must also 2e a2ove the 56 E0A 35 S0A Lines >or longs and 2elo/ >or shorts? #? ONL8 ONL8 trade the ,touch- o> the #6 #6 E0A &9 it is the 9&RST or SECOND 2ar in the retrace; it has a MER8 STEE( angle see e:am"le later in manualF; "rice has moved a strong ,distance,distance- o> more than than #5 "i"s and .ou trade it EACTL8 at the ,touch- /ith no more then !I## "i"s SL? $? TWO BAR RULE >or #6 E0A ,Touch TradesTrades- is sim"l. this? &t is a ,retrace,retrace- trade and normall. the E0A is at a ,ver. stee"- angle o> a2out 5 degrees or more AND ta*es no more than TWO large 2ars to ,get there- to ,touch- the #6 0AF and the retrace should 2e almost vertical or .ou should "ass on the trade and /ait >or (A to reveal /here (rice is reall. going? 3? On 0#5 0#5;; "ric "rice e must ALSO have ALSO have moved over #5 "i"s 2e>ore the retrace to the ,touch- entr.+ ? %igher Time Time 9rame 9rame ,touch- trades trades are MER8 MER8 "o/er>ul? LOO LOO 9OR T%E0+ T%E0+ ? I+ %O( /ISS ONE; ONE ; DO NOT chase it or ta*e the entr. ,late- /ait >or another one; there are lots o> trades to ta*e? Ta*ing late entries /ill onl. increase .our ris* and >rustrate .ou?
5? 2Constrainment rades; are rades; are ne:t ne:t 2est signals against the 35 or 56? The. can also ha""en at the #6 E0A @ust 2e more care>ul /ith the ones o= the #6 E0A and use tighter sto"s? #? 7. denition ,constrainment- is a series series o> 2ars 2ars that ,res"ect,res"ect- a s"ecic s"ecic moving average in the Strateg. Strateg.?? suall. the 35 or 56 2ut can can 2e the #6? $? O>ten O>ten these occur occur /ith several several smaller smaller 2ars 2ars 2eing ,constra ,constrainedined- 2. the moving average involved and are Buite clear to see? 3? Constrainment ALWA%S has at least three bars in bars in the setu" and o>ten several more? Counter rend Entries: NO #ECO//ENDED AND NO NECESSA#% +O# 7#EA 7AINS! Still; in a later section /e do discuss discuss them a 2it? /a=imum Number o rades!: NO E6CE*IONS E>E# !!! #? 0a:imum 0a:imum o> 5 success>u success>ull trades? trades? K&ME &T &T A REST REST a>ter a>ter that that and s"end s"end some time doing something else; KET A L&9E a"art >rom trading? $? 0a:imum o> 3 Losing Trades? LEARN to sto" and get over it+ #? Three Three TOTAL TOTAL (ER SESS& SESS&ON+ ON+ $? 0A&00 0A&00 O9 TWO TWO &N A ROW; then /al* /al* a/a. a/a. and get get a >resh >resh "ers"ective+++ Sto& Loss: #? Sto" Losses Losses need to 2e ,adeBuate,adeBuate- and that means di=erent SL on di=erent currencies? currencies? &> .ou nd .oursel> using using more than #5 "i"s "i"s consistentl. >or the SL; .ou need to rene .our entries? $? 0ove the SL to to 7E as soon as .ou .ou >eel the trade /ill not ta*e ta*e out .our SL on a ,2reath?3? A good "lace to set .our original original SL is S"read S"read @ust a cou"le o> o> "i"s 2elo/ or a2ove the "revious ,round ,round num2er- or ema that "rice touched and moved a/a. >rom? 7e sure to include the s"read? ? EE* 1E/ I71!: During I71!: During a move; *ee" the the SL reasona2l. reasona2l. tight? 0eaning move it to the 2ottom or to"F o> the last 2ar each time one closes until .ou get strong /ith this strateg.? strateg.? This is es"eciall. im"ortant im"orta nt /ith AN8 sort o> (A 2ar that might indicate a reversal; Tighten to the close o> the (A 7ar immediatel.+ *ro?t argets: #? Though Though there there is no s"ecic T( in this strateg strateg. . other than than the rst #5 "i" T( set in the the scri"ts? A>ter that is hit the 2est 2est /a. to loc* in "rots is to move .our SL to the e:treme o> the "revious 2ar s"read and /ait >or the current current 2ar to close? The onl. e:ce"tion e:ce"tion to this is /hen a""roaching a""roaching a ,round ,round num2er- level or a stronger E0A li*e the 56 E0A 35 S0A Lines on a retrace? Tighten .our sto"s at those levels as "rice has a nast. tendenc. tendenc. to reverse reverse at them? The other o"tion; /ith more more e:"erience e:"erience /ill 2e to e:it and immediatel. immediatel. short at that that ,rst touch- o> the 56 E0A 35 S0A Lines? $? &> it 2ecomes a""arent a""arent .ou .ou are in a ranging or cho"". mar*et; mar*et; @ust 2e a 2it more care>ul and loo* onl. >or solid entries 2ased on SR levels such as the Round Num2ers and constrainment o> the lo/er level E0As; usuall. around a ,round ,round num2er- or "revious (A or SR level? 3? DO NO 9E A+#AID O AE %O(# *I*S EA#L% there will be more trades! 8ou trades! 8ou don't have to *noc* it out o> the "ar* ever. time to 2e ver. "rota2le /ith this strateg.; and it ta*es e:"erience e:"erience to master the longer trades? Ta*ing a Buic* $6 or so on a move is com"letel. acce"ta2le and .ou W&LL get 2etter as time "rogresses?
? &> (A indicates a reversal reversal 2et/een ,round ,round num2ernum2er- levels; get out+ out+ There /ill 2e more o""ortunities? 5? N+* DA%S @non arms &a0roll and &a0roll and heav. ne/s da.s can 2e un"redicta2le? sing the scri"ts /ill hel" a lot; 2ut latel. & have 2een ignoring the ne/s releases in >avor o> the ,>actored in alread.- a""roach /here /here & @ust acce"t that the ,mar*et- has alread. ,>actored ,>actored in- the ne/s and /hat it "ro2a2l. /ill 2e? With such high "ro2a2ilit. entries and short SLs Ne/s is much less o> a concern to me latel.? Loc,ing in *ro?ts: #? DO NOT change change the entr. entr. scri"ts unless .ou .ou have alread. alread. mastered mastered The Dance and have enough e:"erience e:"erience to ma*e ma*e that decision? The. are ma:imiHed >or "rota2le consistenc.; NOT huge "i" counts? $? 7e cautious in moving .our SL too aggressivel.; aggressivel.; 2ut *ee" it no >arther 2ac* than the 2ottom or to"F o> the second 2ar 2ac* >rom current current "rice action and "re>era2l. no >arther 2ac* than the last 2ar 2ottom or to"F? 3? &> .ou have an e:tremel. large 2ar; 2ar; move the SL to the @ust 2elo/ the last ,Round ,Round Num2er- it "assed land /atch "rice movement ver. closel.? closel.? &> it hasn't .et "assed a Round Num2er level; move to slightl. less than 46 4 6 o> the 2ar's total and /ait? &t /ill either continue to e:"lode or retrace "rett. ra"idl. and ta*e out .our sto"? LARKE 7ARS RETRACE RETRACE O9TEN; so don't hesitate to ta*e .our "i"s 2e>ore it hits the SL .ou are trailing AND SE T%E ,round ,round num2er- levels+ ? &> a large large 2ar ,dead ends- at a stronger stronger E0A; or a ,round ,round num2er- level; move .our SL ver. close to the the level? (ro2a2l. (ro2a2l. a2out $ times S"read S"read or less and /ait? &> the move move is strong; strong; it /ill /ill continue and and 2lo/ through through "rett. Buic*? &> not it /ill ta*e out .our sto"? #anging$ Consolidating /ar,ets: #? The The 56 56 E0A E0A 35 35 S0A S0A Lines have a strong tendenc. to either ,/ind- around each other and ,Jattening- /hile stic*ing close to each other during a "eriod o> consolidation or ranging? ranging? On ,ranging,ranging- da.s .ou /ill /ill o>ten see "rice also /ind around them and give .ou denite o""ortunities to enter at solid SR levels or at Round Num2er levels on either side o> the 56 E0A 35 S0A Lines? $? 7e ver. cautious in these mar*ets mar*ets unless .ou are are e:"erienced /ith this strateg.? strateg.? Wait >or 2etter signals i> not e:"erienced? e:"erienc ed? 3? &> .ou do trade trade them; the scri"ts scri"ts /ill hel" hel" .ou mitigate mitigate ris* amaHing amaHingl. l. /ell? ? 0OST o> .our entries in a ,ranging,ranging- mar*et mar*et /ill 2e against against the #6 E0A and the move to 7E 0ST ha""en immediatel. a>ter the rst "osition is closed cl osed at the T( o> #5 "i"s+ Com&ounding: The Scri"ts allo/ .ou to use use ,com"ounding- ver. easil.? easil.? DO NOT reIset the the ris* in the scri"ts unless .ou have lots o> e:"erience e:"erience and do not ,com"ound,com"ound- .our trade siHe more than ONCE "er DA8 DA8 at the END o> the da.? da.? Tr.ing to com"ound an. >aster >as ter /ill more than li*el. cause .ou "ro2lems?
Additional Considerations and De?nitions Additional Considerations: Things Considerations: Things to learn as .ou "rogress "rogress and denitions denitions o> terms used in this manual?
Currencies #? Though Though this document document used the the K7(SD K7(SD and the ER(8; ER(8; an. set set o> currencies .ou are com>orta2le com>orta2le trading is acce"ta2le? (re>era2l. (re>era2l. one /ith lo/er s"reads s"reads and certainl. nothing /ith /ith a s"read over 5? The larger the s"read; the more more the trade must move 2e>ore .ou reach reach 7E? That increases .our ris* "er trade? $? se onl. t/o currencies currencies during the learning "hase? 8ou ma. increase the num2er as .ou see t as as .ou gain more more e:"erience? 7ut 2e sure sure to *ee" .our .our screen and charts ,clean,clean- so .ou can see clearl. as (A develo"s? News: New s: SA% SA% O(! #? DO NOT NOT trade trade during during Ne/s Ne/s?? $? &> .ou are are alread. &N a trade during during the hal> hour hour 2e>ore 2e>ore Ne/s; AND in good good "rots /ith some loc*ed in; .ou might sta. in and tighten .our sto" loss 2ut 2e care>ul? NO SL is guaranteed during ne/s? 3? &> .ou are are NOT in a trade 36 minutes "rior to ne/s; ne/s; WA&T WA&T >or the ne/s ne/s and then WA&T >or (rice (rice to ,settle do/n- a 2it 2e>ore .ou ta*e a trade? That can 2e as little as 5 minutes a>ter a>ter the ne/s; or as long as 36? DON'T RS% &T+ 9a*eIouts #? 0OST >a*eout >a*eouts s occur 2ecause 2ecause o> a violation violation one o> the rules rules >or entering entering a trade? DO NOT M&OLATE T%E ENTR8; ENTR8; T&0E; SessionCurrenc. SessionC urrenc. correlatio correlations ns OR T&0E 9RA0E 9RA0E RLES+ $? &n addition; addition; this this is the the "ur"ose "ur"ose o> moving moving the the SL to 7E 7E ASA(+ This strat strateg. eg. "rovides /a. more more than enough o""ortunities to trade? Avoiding Avoiding the Loss is as im"ortant as catching the good moves; @ust don't let ,>ear- get to .ou? 3? 9a*eIouts usuall. usuall. occur around around levels o> resistance; such as the lo/er E0As /hen the. a""ear to 2e counter trend and close to Round Num2ers /here "rice is slo/ing; so @ust /atch out >or them? ? DON'T 9ORC 9ORCE E A TRADE+ TRADE+ Wait Wait >or a "er>ect "er>ect setu" to enter+ enter+ 5? NEMER ta*e ta*e a "rice action 2ar counterItrend counterItrend 2. itsel>? itsel>? &t 0ST also meet all other criteria; such as a""earing at a SR level; a 2ounce o= an 0A or ,round ,round num2er; or a""ear A9TER a signicant move a/a. >rom the 56 E0A 35 S0A Lines; o>ten the. need another conrming 2ar; or >or the area to 2e "reviousl. "roven as an SR level? Denitions Denitions are used on the charts in discussion o> (rice 0ovement? #? ,#ound NumbersNumbers- are the lines o> SR dra/n on the charts at areas o> signicance such as the ?66 and ?56 levels? $? ,9ounce9ounce- is /here a candle hits and retreats retreats at least # "i" >rom an area o> Su""ort Resistance? Resistance? #? Almost Almost al/a.s al/a.s indicates indicates a revers reversal; al; even i> it is onl. onl. a >e/ "i"s "i"s i> it is also a ,dead end- at a round num2er or a stronger stronger 0A such as the 56 E0A 35 S0A Lines? 3? ,Dead EndEnd- is /here a candle sto"s ,dead- at a level o> Su""ort Resistance /ith no /ic* through it? #? Almost Almost al/a.s al/a.s indicates indicates a revers reversal; al; even i> it is onl. onl. a >e/ "i"s? "i"s? ? ,Constrainment, Constrainment, is /here (A is limited 2. and res"ecting a "articular level o> resistance such as one o> the 0As or a ,round ,round num2er- >or more than one 2ar; es"eciall. i> there are several smaller smaller 2ars involved? O>ten it is a conJuence o> more than one 0A or 0A round num2er? #? Almost Almost al/a.s indicates indicates a direction direction o> movement movement;; usuall. a continuatio continuation n o> an e:isting Trend O> The 0oment? $? The most "o/er>ul entries entries are /hen (rice (rice is Constrained Constrained in one direction direction
a>ter a signicant "eriod o> 2eing ,9lat lined- and the entr. is ta*en o= one o> the stronger 0As? 5? ,rendrend- is the URRE!T direction direction o> (rice a2ove or 2elo/ the 56 E0A 35 S0A Lines and it can change several times in a da.? #? Never violate the Rules Rules o> the Trend Trend OR Counter Counter Trend Trend on Entries+ Entries+ 1? ,Counter rendrend- is the reversal o> an immediatel. "revious Trend? &t is almost al/a.s "receded 2. either a >airl. strong move )6 "i"s or moreF >ollo/ed 2. a "eriod o> ,constrainment- o> "rice at a SR level and then a reversal o> "rice /hich ma. also 2e a ,constrainment- o> "rice 2. a one o> the lo/er E0As and a round num2er level in the o""osite direction? #? 0OST ,counter ,counter trendtrend- trade trade setu"s setu"s /ill occur A9TER A9TER "rice "rice has moved a >airl. long /a.s >rom the 56 E0A 35 S0A Lines; usuall. over )6 "i"s? 4? ,ConBuenceConBuence- is /here more than one SR indicator has merged or met at a s"ecic "oint on the chart? suall. it is a ,round ,round num2er- and a level o> "rior resistance >rom >rom (A? &t can also 2e /here more more than one 0A has ,2unched u" against each other and ma. include a ,round ,round num2er num2er as /ell? These are KREAT Areas to ta*e a ,2ounce- or ,continuation- trades? )? ,#eest#eest- is /here (rice has alread. moved "ast a SR level and then retraced to that same level AND is re@ected there? !? ,Clear 9rea, - is /here (rice ma*es a thrust through a SR level that is ,signicant;- usuall. meaning several "i"s? #6? ,+irst ouchouch- trades are /here "rice hits either a ,round num2er- level or an 0A that has held as SR strongl. 2e>ore and .ou trade &00ED&ATEL8 in the o""osite direction moving to 7E as Buic*l. as "ossi2le to ma:imiHe the trade? O>ten these trades trades are good good >or Buite a 2it o> "i"s; 2ut @ust @ust as o>ten the. are onl. good >or a2out #$ to $6 "i"s; so /atch them closel. >or the e:it? #? T%E 7EST ,9&RST TOC%TOC%- trades trades are are al/a.s at the 35 S0A and and can 2e on AN8 o> the >our time >rames /e loo* at >or ne tuning our entries? The higher the time >rame is; the more signicant the ,touch- /ill 2e in indicating a reversal? ##? ,+lat LinedLined- is /hen (rice moves in an e:tremel. narro/ narro/ range; usuall. less than $6 or 36 "i"s u" or do/n total? DO NOT TRADE this area o> chart activit.? activit.? The onl. e:ce"tion e:ce"tion to this is i> "rice is /inding around the 56 E0A 35 S0A Lines in a /ide enough range o> at least 56 "i"s to give .ou ,room>or a trade at the SR levels? #$? ,/oing Aerage Sou&Sou& - or ,/A ,/A Sou&"Sou&"- This is an area area /here /here the E0As are all 2unched u" together; usuall. also ,stuc*- 2et/een or ver. close to the 56 E0A 35 S0A Lines and demonstrate no direction >or a trade? This is a ,STA8 ,STA8 OT- area; do not trade it? O>ten the lo/er E0As get ,stuc*- 2et/een a stronger 0A and a round num2er level? #3? ,*rice ra&ra&- is /hen "rice is ,stuc*- or ,tra""ed- 2et/een t/o or more areas o> SR as mar*ed 2. the ,Round Num2ers- or one o> the stronger 0As /ith a level o> SR indicated 2. "rior (A? Normall. ha""ens 2et/een the 35 S0A and the 56 E0A on 0#5 or or %#? 7rea*outs 7rea*outs tend to 2e e:"losive? e:"losive? #? ,Wic,edWic,ed- "ronounced ,/ict-F is an area o> the chart /here (rice 2ars have ,/ic*s- ever./here on 2oth sides and it's starting to loo* li*e a "orcu"ine? DO NOT TRADE TRADE T%&S AREA; WA&T WA&T >or "rice to settle do/n; do/n; or to start to trend 2e>ore even considering a currenc. currenc. li*e this? #5? ,CO9CO9- is ,Close o> 7ar?#1? ,Washed OutOut- A "rior SR level re"resented re"resented 2. a 0A 0A or a round round num2er 2ecomes ,/ashed out- and not immediatel. usa2le as SR /hen "rice has crossed it and reIcrossed reIcrossed it several times in the immediate "ast on the chart? ,Washed ,Washed Out- SR levels should 2e 2e ignored in this strateg.; strateg.; 2ut the. 2ecome valid again ver.; ver. Buic*l.?
#4? ,Wic, hroughhrough- is /hen "rice hits a level o> SR and "ushed through it 2ut closes on the side o> the the original move? The Longer the /ic*; /ic*; the more cautious .ou should 2e a2out a trade here? #)? ,Wic, O< - is /hen a candle hits a SR level; then retraces >rom >rom it as in the case o> a ,"in- 2ar? A ,/ic* o=- is also a ,re@ection- o> "rice at that level o> SR and o>ten indicates either a continuation o> the original ,Trend,Trend- or a reversal o> it; de"ending on /here this ha""ens? #!? ,*orcu&ine*orcu&ine- is an area o> "rice /here there there are lots o> >airl. long /ic*s on 2oth sides o> the candles? candles? O>ten the candles have have /ic*s on 2oth side o> a single candle? SA% O( AND DO NO #ADE 1E *O#C(*INE" $6? ,ri&le o&o&- or ,Double ,Double o&o&- is /here t/o or more candles hit and sto" at EACTL8 the same "rice "oint on a chart one right a>ter another? ,ri&le 9ottoms9ottoms- and ,Double ,Double 9ottoms9ottoms- are the same? 8ou ma. use the standard denition as /ell; 2ut >or this strateg.; /e are loo*ing >or immediate "rice action; SO0ET&0ES SO0ET&0 ES cou"led /ith "rior (A? These o>ten occur at a Trend Trend o> the 0oment continuation; or a reItest on a reversal? $#? S$# Leels are Leels are most clearl. visi2le 2. loo*ing at the recent "ast on the chart and using the 2idas* lines to ,see- them more clearl.? clearl.? 8ou ma. also Hoom /a. out to see and mar* one or t/o >rom the "ast t/o da.s at the a2solute most? DO NOT clutter u" .our charts charts /ith lots o> SR SR Levels+ $$? E=haustion bars and Suat 9ars are 9ars are ver. small 2ars that are usuall. >ound at the turning turning "oint in a trend trend or a s/ing /ithin a trend? trend? suall. the. are ver. >e/ "i"s; "i"s; "ro2a2l. no more more than a2out 5 to #6 total? & also call these ,tin. 2ars- in that the. can o>ten 2e even less and loo* e:actl. li*e a ,"in- or a do@i? When there is a cluster o> these ,tin. 2ars2ars- 2eing constrained 2. one one o> the higher 0oving Averages; the 35 56 lines; the. almost al/a.s indicate a >airl. large move in the direction o> the constrainment? constrainment? The. are ver. solid indicators o> "rice reversals? reversals? &n later sections /e tal* o> (A and ho/ to ta*e advantage o> it on 0#5; es"eciall. /ith a 2ounce o= one o> the the Round Num2ers Num2ers and stronger stronger 0As? Standard (A (A 2ars such as (in 2ars; Do@is; S"inning To"s; %ammers %anging 0an and Outside 7ars /or* @ust ne on 0#5; @ust don't hang .our hat com"letel. com"letel. on them alone? There must 2e conrmation o> some sort >or each (A 2ar used? The Trend Trend O> The 0oment as dened 2. the 0oving Averages and "rior (A "rovide that conrmation? Additional #esources: &> .ou a2solutel. must read more; here are some great threads on 9ore:9actor.?com? ames#1 (rice Action Action Thread? huge huge threadF htt"///?>ore:>actor.?comsho/thread?"h"PtQ$33# ac*o's 9ore: 9ore: %ouse %ouse o> (leasure (leasure and (ain (ain trend trading; trading; also a huge threadF threadF htt"///?>ore:>actor.?comsho/thread?"h"PtQ$4$)1 No 7rainer Trades su""ort and resistance tradingF htt"///?>ore:>actor.?comsho/thread?"h"PtQ)1$! Trade Trade What 8ou 8ou See; Not What 8ou 8ou E:"ect the. ma*e ma*e huge "i"s here; here; 2ut a 2it com"licated >or m. taste?F htt"///?>ore:>actor.?comsho/thread?"h"PtQ#$#41# There are are more; 2ut /h. /h. con>use .oursel> /ith them them /hen the sim"lest strategies strategies are al/a.s the 2estP 2estP These resources resources should 2e all .ou need?
8ou 8ou ma. also read read m. original thread thread at 9ore:9 9ore:9actor.; actor.; and & a"ologiHe in advance advance >or the /a. it ended /ith >alse accusations >rom a 2unch o> neanderthals and an idiot site admin /ho never chec*ed out an. in>ormation; @ust /ent along /ith his cronies accusing me o> 2eing someone &'m not? This manual and the 2asic strateg. strateg. is >ree >ree >or all to use and change; ada"t or modi>. as the. see t to hel" them master master their trading? No mone. is or has ever ever 2een as*ed >or it; e:ce"t 2. some >raudster on E2a. >rom an eastern Euro"ean countr.? The strateg. is and al/a.s al/a.s has 2een and al/a.s al/a.s /ill 2e 9REE to all?
he Sim&li?ed #ules Sim&li?ed #ules: This strateg. is e:tremel. e:tremel. sim"le? EE( EE( &T S&0(LE +++ This strateg. is NOT NOT com"licated; DO NOT com"licate it? The 2asic rules are sim"le? sim"le? DO NOT com"licate com"licate them either? #? Chart is 0#5 ONL8 ONL8 >or all decisions? T%E ONL8 ONL8 e:ce"tion e:ce"tion is the ,touch- trades on D# and %# /hen the. ha""en++ #? 05; %# and % are are >or >or clarifcation o> overall trend and rening entries and e:its? NOT trade determination E"E#T $%en price is a&out to 'touc%( t%e )* +MA on one o> them? 05 is not "art o> the setu"? $? Trading Time Time is a session ,overla",overla"- "eriod o> t/o mar*ets mar*ets one one o> /hich covers at least one countr. o> the currenc. currenc. "airs .ou have chosen to trade? 3? Entries are ALWA%S at ALWA%S at either a SR level re"resented 2. one o> the Round Num2ers; a re@ection o= one o> the 0oving Averages Averages or a round num2er ta*en at the ,Touch- onl.F AND a AND a (rice Action 7ar O# constrainment O# constrainment in these areas /ith several smaller 2ars? #? ,ConJuence- o> multi"le 0As or 0As and SR levels are are ver. strong entr. "oints? $? Entries can 2e either on on a ,Touch,Touch- &9 that ,touch- is a ,Touch- /ith a stee" angle; or a series o> small 2ars ,constrained- 2. the resistance o> one o> the Round Num2ers; 56 E0A 35 S0A stronger stronger 0As; or a reItest o> the 3556 lines or #6 E0A on a reversal or continuation entr.? #? TWO BAR RULE >or ,Touch Trades- o= the 0#5 #6 E0A; is this? &t is a ,retrace,retrace- trade and normall. the E0A is at a ,ver. stee"- angle o> a2out 36 to 5 degrees or more AND ta*es no more than TWO large 2ars to ,get there- to ,touch- the #6 0AF and the trade is almost a vertical retrace or .ou should "ass on the trade and /ait >or (A to reveal /here (rice is reall. going? The SL is a2out #$ "i"s? $? ,Touch ,Touch TradesTrades- on 0#5 o= the the 35 S0A and 56 E0A are are also ver. eas. to see 2ut 0ST 2e ta*en ONL8 i> the E0A is at a reasona2l. stee" angle; sa. a2out $6 Degrees or more as sho/n later in this manual AND (R&CE 0ST have moved at least #5 "i"s 2e>ore the retrace ,Touch- occurs? suall. three are no more than three 2ars ,to get there?- (ass on trades /ith lots o> ,smaller- 2ars to ,get there?3? Constrain Constrainment ment trades trades are are al/a.s good good on either time time >rame 2ut 2ut the %igher Time 9rames are e:tremel. "o/er>ul? ? /a=imum o> /a=imum o> ve success>ul trades "er session or three losing trades "er session or t/o in a ro/ ro/?? T%EN STO( and get a >resh >resh "ers"ective+ "ers"ecti ve+ DO NOT trade /ithin the ne:t hour at least; 2est to sto" >or the da.? NO
E6CE*IONS +++ E6CE*IONS +++ 5? SL is never more more than #! "i"s and o>ten Buite a 2it less /ith e:"erience; i> .ou have entered "ro"erl.? 1? 0ove to 7E # # as soon as "ract "ractical ical /ithout /ithout cho*ing cho*ing out the the trade trade 2ut denitel. a>ter the rst T( is hit >or #5 "i"s? #? To allo/ trades to ,run ,run- move the SL to the last candle's candle's e:treme e:treme S"read and #"i" NO 0ORE + 4? The E&T is govern governed ed 2. (rice; (rice; SR levels and the the Round Round Num2ers Num2ers e=clusiel0? e=clusiel0? &> "rice ,2lo/s throughthrough- the ne:t Level; Level; stic* /ith the trade and move u" .our SL; leaving some 2reathing room? room? #? &> "rice 2egins to hesitate at a round round num2er or close to one; ma*e sure sure .ou are at least at 7E and decide /hether /ait it out and "ossi2l. get le>t /ith onl. one "i"; or ta*e /hat .ou have and loo* >or another trade+ $? &> it has ,2lo/n ,2lo/n throug through h AND CLOSED CLOSED "ast a round num2er; move .our SL to NO 0ORE than S"read #"i" short o> the last round num2er or 2ar that /ent through it and /ait? 3? &> (rice starts starts to reverse reverse /ith a (A 2ar; get out out and /ait >or an entr.? entr.? ? Long 2ars 36 "i"s "i"s or moreF o>ten retrace Buite a 2it? Consider ta*ing .our .our "i"s i> a large 2ar hesitates; ES(EC&ALL8 at an SR Level? ." Learn Learn to trail 0our sto&s! sto&s! )? Trade ONL8 ONL8 W&T% T%E TREND unless unless .ou have alread. alread. mastered these these 2asics++ #? Counter Trend Trend trading is >or ONL8 ONL8 e:"erienced traders /ho have mastered mastered the 2asics 2as ics alread. al read.?? !? Never trade trade the ,"orcu"in ,"orcu"inee- Jatlined Jatlined areas areas o> "rice action action or ,0A Sou"- ++ #6? Do not trade Ne/s+ &> .ou com"licate it more than this; it /ill ta*e .ou >ar longer to master this strateg.? strateg.? Once .ou have read this manual; and mastered these 2asic rules on this "age; then .ou can move on to more aggressive aggressive entries such as trading during ,cho"".mar*ets as long as .ou do not trade the ,"orcu"ine- it $ill *ill .our account? THE CARDINAL RULE:
DO NOT ENTER NLESS T%E CANDLE &S TOC%&NK A L&NE+ T%&S ASSRES T%E LOWEST LOWEST R&S (OSS&7LE ON T%E TRADE TRADE AND T%E &CEST 0OME TO 7E W&T% (RO9&TS+ A word about 2Batlined; areas" There are are some /ho tal*ed tal*ed a2out ,Jatlined- areas areas as "resenting "resenting good trading o""ortunities as "rice esta2lishes a ,channel- o> sorts /ith a high a2ove and a lo/ 2elo/ the 3556 lines? While this does ha""en; and in other strategies /here /here 2rea* 2rea* outs are used; it /ould 2e a great g reat "lace to loo* >or 2rea*outs; 2rea*outs; The Dance DOES NOT use 2rea*outs 2rea*outs and tr.ing to use them /hen .ou are starting out /ill onl. con>use .ou? Leave them alone until .ou .ou have lots lots and lots o> e:"erience? e:"erience? The. reBuire reBuire 0C% larger SL settings than The Dance uses?
(sing *rice Action
(rice Action is used in t/o /a.s in this strateg.? strateg.? 9irst are the normal (A 2ars descri2ed immediatel. 2elo/; /hich can 2e used on an. time >rame; 2ut here /e are interested onl. in the 0#5 charts? (rice action is the most relia2le o> all indicators in determining momentum and direction in trading? trading? (rice action can indicate relia2l. relia2l. "rice reversals reversals and continuations? All other indicators indicators are are 2ased on "rice action in some some >orm? >orm? &n this strateg. /e /ill 2e loo*ing "rimaril. at a >e/ standard (rice Action setu"s to assist us in ltering the moves /e ta*e? ta*e? ust *ee" in mind that on 0#5 (A though though ver. strong; can turn literall. on a dime and give .ou change? The rst 2ars /e loo* >or are (in (in 7ars and Do@i 7ars; 7ars; that are accordin to our de-nition; then &nside 7ars; and Outside 7ars; in that order; 2. the /a.? /a.? These are the "rimar. indicators /e /e /ill 2e loo*ing >or to determine determine most entries? LOO 9OR T%E (A+ The 0oving Averages Averages are >or determining i> the (A is valid >or a trade? 8ou 8ou must have 7oth (A (A in the right direction direction o> the trend and and a 2ounce or constrainment >or a trade to 2e valid+ OUR .E/0!0T0O! O/ #0! BAR+
(in 7ars and Do@i 7ars are Candlestic* 2ars /hose ,2od.- is both inside and smaller than the bod0 o the &receding bar and bar and have a longer ,u""er /ic*than ,lo/er /ic*?- O>ten these these 2ars are ver. ver. small? &n addition; it has an area area /ith ,room,room- around it on all sides; meaning that there is lots o> em"t. chart s"ace immediatel. to the ,"ast- o> the 2ar? 2ar? Loo* at the "receding charts as /ell as the ones that >ollo/ and .ou can see lots o> them at the turning "oints? 7E ETRE0EL8 CARE9L o> trades using ,"in 2ars- that are not e:actl. "er this denition here? The >ollo/ing are images images o> some o> the more more common versions o> o> (rice Action as the. a""ear in real charts? *in 9ars: These are 2ars 2ars ver. similar to the Do@i; e:ce"t e:ce"t that the o"en o"en and close are are at di=erent "rices? The correct correct (in 7ar >or our "ur"oses is one where the bod0 o the *in is inside the bod0 o the &reious bar as bar as seen 2elo/? 0ost o>ten the 2est trades have the 2od. o> the signal (in 7ar closer to the to" o> the "revious 2ar 2ar as seen here here 2elo/ and are >airl. >airl. short candles over all? O>ten the. are less than #6 "i"s?
The last image is included to demonstrate demonstrate that (in (in 2ars ma. come in multi"les? 7e sure that /hen entering on a (in 2ar that it agrees /ith the Trend or a 2ounce in direction o> the trend? trend? One could have entered entered on either o> the t/o do/n/ard do/n/ard "ointing red "in 2ars 2ars in the last image? O>ten these t."es o> (rice Action occur occur at or
ver.; ver. close to one o> the ,Round Num2ers- and the larger 0oving Averages? Doi *rice Action 9ars 9ars Do@i 7ars also have the >eature o> not reall. having a ,2od.- 2ecause the o"en and close o> the ,7ar- ha""ens at the the e:act same "rice level? The >ollo/ing are "ictures "ictures o> some ,(in 7ars- according to our denition o> them? The second 2ar is the Do@i? suall. (rice continues continues the o""osite direction direction o> the Do@i? Some sa. .ou should should ta*e a Do@i entr. at the to" /ithout Buestion; 2ut /ait >or conrmation o> the second 2ar closing at the 2ottom? This strateg. agrees agrees /ith that statement? statement? Wait Wait on 2ottom Do@i 2ars >or conrmation 2ars?
Inside 9ars: &nside 2ars are o>ten re>erred to as ,sBuat- 2ars? The. al/a.s are contained /ithin the 2od. o> the "revious 2ar? 2ar? The second or third 2ar is the &nside 7ar or &7?
Outside 9ars: These are 2ars 2ars that com"letel. engul> the "revious "revious 2ar? 2ar? The second or third third 2ar is the Outside 7ar; or O7? &t should 2e o2vious?
(rice Action 7ars are NEMER used alone to enter a trade unless .ou have lots o> e:"erience e:"erienc e /ith this strateg.? strateg.? The. 0ST 2e conrmed 2. either resistan resistance ce levels at a ,Round Num2er;- 2. resistance resistance as seen 2. "rior (A; a moving average; or 2. additional candles in the ,right- direction? Double o&s and Double 9ottoms: The terms ,dou2le ,dou2le to"- and ,dou2le 2ottom- has has a ver. di=erent di=erent meaning in this strateg.? strateg.? 8ou can still loo* >or the ,normal,normal- dou2le to"s and 2ottoms /here "rice has moved to/ard and a/a. >orm an area o> su""ort and resistance over a "eriod o> several 2ars; 2ut >or our "ur"oses in this strateg. /e /ill >urther dene it as t/o 2ars /hich have e=actl0 the same to" same to" or 2ottom? 2ottom? &> the 2ars are also the same
length; it can dene an entr. "oint or an e:it "oint de"ending on it's location on the chart? 7oth 2ars 0ST 0ST have the same EACT EACT to" or 2ottom; 2ut 2ut the can 2e di=erent in ho/ the. achieve that? 9or e:am"le; e:am"le; in the images 2elo/ .ou /ill see some that are 2oth /ic*ed to"s or 2ottoms; some that are 2oth 2od. to"s or 2ottoms and some that are one o> a 2od. and one o> a /ic*? &t is the >act that the. are EACTL EACTL8 the same "rice "oint that tends to indicate the reversal o> "rice? 0a*e sure the signal also agrees /ith the trend and /ith the 0oving averages to achieve the 2est results? The >ollo/ing are dou2le dou2le to" and dou2le 2ottoms 2ottoms signals? See i> .ou can nd the one not mar*ed?
Dou2le to" and dou2le 2ottom 2ar sets almost al/a.s signal either an entr. or an e:it "oint? As long as .ou are are >ollo/ing the rules o> trading trading W&T% the trend trend o> the moment; and the Rules Rules o> the moving averages .ou should 2e ne? Still; this does ta*e some "ractice to master? DO NO AE A DO(9LE O*$9OO/ SI7NAL 1A CON#ADICS 1E #END O+ 1E /O/EN!!!!!!! /O/EN!!!!!!!
*rice Constrainment: &n our strateg.; /e also use ,(rice Constrainment- trades 2ased on (rice Action /here (rice (rice is ,constrained- 2. a Su""ortR Su""ortResistance esistance level? These ,levels- can 2e either a 0oving Average; a classical horiHontal line o> SR; or and this is the stronger o> themF an area /here (rice is ,constrained , constrained 2. one o> the stronger moving averages; such as the the 35 S0A or the 56 E0A? E0A? This also /or*s /ith /ith the ,Round ,Round
Num2ers- levels ver. /ell and o>ten indicates either a strong continuation trade; or an u"coming reversal signal? The >ollo/ing images are are /here "rice "rice is Constrained 2. either the 5; #6 or 56 E0As? (a. s"ecic attention to those areas in the images /here the 0oving Average constrainment is also accom"anied 2. Round Num2er constrainment? Those areas o> ,constrainment conJuence- and those around the 56 E0A are the strongest entries in the /hole strateg. /e use here and the easiest to see?
Loo*ing >or ,e:haustion 2ars- at areas o> ,constrainment is an e:tremel. strong entr. tactic? &t allo/s >or an entr. /ith an e:tremel. small Sto" Loss; o>ten less than ) or ! "i"s; and also indicates a strong move in the direction o> the constrainment that; as .ou can see is o>ten good >or $6 or more "i"s on the move? & am sure .ou can see @ust ho/ "o/er>ul this ,constrainment- t."e o> entr. is? The a2ove images sho/ some trades trades /here /here there there /ere several o> the ver. small ,e:haustion,e:haustion- 2ars and an. o> them /ould have 2een a good entr. "oint? Additionall.; o>ten the candle /ill ,/ic* o=- o> a ,round num2er- and the 2od. /ill 2e constrained 2. the 0oving Average? Sometimes "rice /ill also ,/ic* o=- o> a higher 0A and the 2od. 2e constrained constrained 2. a lo/er 0A? 0A? &n 2oth cases T%AT T%AT &S CON9&R0AT&ON CON9&R0AT&ON &N ONE 7AR o> the momentum o> the trade as a continuation trade? &n some instances it also indicates a reversal area to /atch >or an entr.? &n these areas there /ill 2e times; as .ou get more e:"erienced /ith this strateg. and using the 0oving Averages /ith the Round Round Num2ers; /here .ou /ill 2e a2le to enter on the ,touch- o> a level or a 0oving average; >urther increasing the value o> the trade?
That; ho/ever ta*es ta*es a 2it o> e:"erience? At rst; .ou should concentrate concentrate ONL8 ONL8 on ,seeing- the trades that are ,constrained- in a "articular direction 2. a CON9LENCE o> the 0oving Averages and the Levels as the. are the strongest? O>ten (A li*e sho/n in this section is used more >or nding e:it "oints than entries in this strateg.; es"eciall. i> the. ha""en at or ver. close to a Round Num2er? Num2er? 9or the most "art; stic* to ,Constrainment- and ,Touch Traces;- .ou'll have a lot more success? NOE: All good constrainment trades hae /O#E than two and oten more than three er0 small bars in the beginning o them! Loo, at the Si=th8 Eighth and Ninth images in the image i mage series aboe or both /A reall0 strong 2lower /A; /A; constrainment trade trade entries" he others o< the .4 are stronger8 but sometimes a little more diFcult to see or a beginner" 2O(C1 #ADES; are ONL% ta,en i the0 ha&&en with NO /O#E than two bars to 2get there";
Chart Setu&: &n this strateg. there there is onl. ONE chart setu"? setu"? Three 0oving averages; averages; a 2ar cloc* /ith s"read; a cloc* to indicate mar*et times and a ,Round Num2ers- indicator? There are are three time >rames >rames used >or each currenc.; currenc.; t/o o> them them used onl. >or conrmation o> Trend and the other >or ne tuning entries? The 0oving Averages are >or trend determination; as /ell as to indicate a Joating level o> Su""ort and Resistance? Resistance? The Round Round Num2ers indicator "laces "laces light lines on the chart to sho/ sho/ areas o> "s.chological im"ortance >or most traders and the Candle Timer is to hel" .ou in "in"ointing the close o> candles candles >or entries? The #6 E0A; the 35 S0A and 56 56 E0A are use as Joating Su""ort and Resistance Levels and to sho/ areas o> ,Constrainment;,Constrainmen t;- ,ConJuence- "oints >or SR and Trend Trend o> the 0oment >or determining entries and and e:its?? The 56 E0A dictates /hether /hether .ou /ill 2e loo*ing >or long or short trades? Adding an. more to the charts /ill onl. serve to com"licate the issue and o"en the door to con>usion and additional o""ortunities >or mista*es? 7elo/ is an image o> the K2"sd chart and one >rom the Eur". >rom a normal da.'s trading? 8ou can see that it Buite literall. is at the end o> the chart; not cherr. "ic*ed?
Notice ho/ (rice res"ects the round num2er levels as /ell as the stronger E0As on the chartP chartP &t is es"eciall. a""arent a""arent on the Eur". chart a2ove? 0ost o> the time; /hen .ou see a reversal; it ha""ened at the 56 E0A; a conJuence o> 0oving Averages Averages or at one o> the round round num2er levels? The chart a2ove is clear evidence evidence o> that? This /or*s on all time >rames >rames on all currencies; currencies; 2ut >or our "ur"oses "ur"oses though; /e /ill 2e re>erring e:clusivel. to the 0#5 charts; these 0oving Averages; and the ,Round Num2er Levels?-
As .ou can see; /ith this strateg. there are lots o> o""ortunities to trade and to trade success>ull.? Tem"late Tem"late sed &n this strateg. includes tem"late titled ,The Dance?- Thro/ it on a chart and have >un? &t reall. reall. &S T%AT T%AT S&0(LE? EE( &T T%AT WA8+ WA8+ Don't go getting >anc. /ith AN8 other other indicators; the. @ust com"licate com"licate things? &> .ou /ant to dra/ the "revious da.'s high resistance o> lo/ su""ort that's ne; @ust don't clutter clutte r u" the charts+ 7T ES(EC&ALL8 ES(EC&ALL8 AMO&D AMO&D OSC&LLATORS; the /ill lie to .ou /aaaaaaa. to o>ten? &ndicators sed #6 E0A; 35 S0A; 56 E0A 0oving Averages; Averages; Round Round Num2ers 7eige; Candle Time S"read; Cloc* and NOT%&NK 0ORE+ DO NOT SE OSC&LLATORS; the. /ill onl. con>use .ou and cloud the (rice Action signals given+
a,ing he rade! 0#5 is not onl. a great great chart to trade on; it's it's a >a2ulous teacher? teacher? &> .ou miss a trade; 2e "atient and .ou /ill /ill get another shot in a little /hile+ /hile+ & have "ersonall. had da.s /ith several "otential trades; /atching onl. a cou"le o> currencies? The >ollo/ing 0#5 chart illustrates illustrates that e:act "oint "oint ver. /ell? The areas circled circled indicate "otential trades over over a t/o da. "eriod? Notice that trades around around the 56 E0A 35 S0A Lines are "articularl. strong trades /hen the. also are used W&T% the trend; /ith constrainment or (A 2ars+
Ever. area circled in the chart a2ove indicates a "er>ect ,2. the rules- "otential entr.? entr.? Thro/ the tem"late on a chart and scroll 2ac*? &t should 2e as "lain as the nose on .our >ace ho/ this this strateg. /or*s? /or*s? EE( &T T%&S S&0(LE; S&0(LE; or don't trade+
Once .ou enter; move to 7E 7E as soon as "ossi2le "ossi2le /ithout *illing the trade? &t /ill ta*e ta*e some time and /or* to get good at this; 2ut it's 2etter to lose some at the 2eginning at 7E # than to to ta*e lots o> losses? &9 .ou do ta*e ta*e losses; Not even one o> them should 2e more than ## or so "i"s; EMER+ sing (rice Action; the 56 0A 35 S0A Lines; the 5#6 E0As and the Round Round Num2er levels to ta*e ,2ounce- trades against is an e:tremel. a/esome strateg. /ith lots o> o""ortunities >or trading; as .ou can see? 9inding entries on those da.s /hen "rice does /hat & call a ,slo/ 2urn- in a ver.; ver. slo/ trending trending movement can 2e challenging challenging to sa. the least? On those da.s; this strateg. hel"s a lot? lot? Loo* >or high "ercentage "ercentage entries against the stronger stronger E0As and then @ust stic* stic* /ith it as long as it does not reverse? %ere are are some trade "otentials circled on an Eur". chart >rom the recent "ast? Notice that as .ou gain e:"erience; .ou /ill 2e a2le to ta*e some ,rst touchentries o= the 56+
he Constrainment rade The Constrainment Trade Trade can ha""en against against an. o> the three three 0oving Averages Averages in this Strateg.? Strateg.? T%E STRONKEST o> them are are al/a.s ta*en against the 35 S0A /hen it and the 56 E0A are literall. ,on ,on to"- o> each other and the #6 is on the side the. are '2ending' to/ard? to/ard? suall. (rice /ill sort sort o> ,2ounce along- the 35 >or several several 2ars; at least three three 2e>ore .ou ta*e ta*e the trade? &t can ha""en against the #6 E0A as /ell 2ut these trades are a little ,/ea*er,/ea*er- and .ou need to *ee" an e.e on them until .ou get some "i"s loc*ed l oc*ed in >rom one? Constrainment trades o>ten .ield 36 to #66 "i"s or more; so 2e sure not to cho*e it
out earl.? earl.? 7elo/ are some images ta*en >rom random areas o> recent chart activit.? activit.? &> .ou scroll 2ac* .ou /ill see lots and lots o> e:am"les o> this sort o> constrainment /here entries /ere not onl. "ossi2le; 2ut /here the trades also .ielded large gains?
he AAA AA A 2ouch; 2ouch; rade Entr0 ,Touch ,Touch TradesTrades- are almost as strong as the ,Constrainment- entries? en tries? The. are a 2it harder to ,catch- as the. can ha""en e:tremel. Buic*l. 2ut the gains are normall. reall. good and ha""en reall. >ast? Remem2er in ,Touch ,Touch TradesTrades- to "a. STR&CT attention to the TWO 7AR RLE? RLE? &> .ou don't; .ou'll get 2it /a. /a. more o>ten o>ten that is necessar. necessa r.?? Also remem2er that on ,Touch,Touch- trades the SL is NEMER more than ## "i"s? %ere are the criteria >or strong ,touch- trades? -4 E/A 2ouch rades; on /-. Charts:
#? 0ust 2e at a ,ver. stee"- angle o> a2out a2out 5 degrees; degrees; or more? more? Less o> an angle /ea*ens the trade? $? NO 0ORE 0ORE than than t/o t/o 2ars 2ars to ,get there?there?3? Sto" loss loss is NO 0ORE 0ORE than than #$ "i"s "i"s EMER? EMER? ? ConJuence ConJuence o> an an %# 0A stre strength ngthens ens the signal? signal? 5.$ .4 Line 2ouch rades; on /-. Charts: #? A reasona2l. reasona2l. stee" angle o> a2out $6 degrees degrees or more; more; OR 2oth lines ,on to"o> each other? %aving 2oth ha""en is ver. strong? 5? Sto" loss loss is NO 0ORE 0ORE than than #$ "i"s "i"s EMER? EMER? 1? ConJuence ConJuence o> an an %# 0A stre strength ngthens ens the signal? signal? 7elo/ are some e:am"les o> the ,Touch Trade- entries? This one is o= the 3556 lines /hen ,on to"- o> each other?
This one is o= the #6 E0A /hen /hen at a stee" angle? &t a""ro:imates a""ro:imates a 5 degree degree angle and & use the ,rectangle tool- o> 0T to create the ,2o:?-
sing the ,Angle Tool- in 0T >or ,Touch Trades?&n the ,line studies- menu o> 0T there is a ,trendline 2. angle- tool that can 2e accesses as seen 2elo/?
When used on the charts; it creates a trendline /ith an area /here /here .ou can see the ,angle- o> the line li*e seen 2elo/?
8ou 8ou sim"l. select the tool; then then clic* the chart at the "oint /here .ou /ant /ant to start to measure the angle then drag it across the chart >or a little 2it so the lines and the angle a""ear? a""ear? &> it is an u"/ard u"/ard move; the angle /ill a""ear in a normal normal /a. 2ut i> it is a do/n/ard move; then .ou have to do a little mental math to get the angle? &n the e:am"le a2ove; the the angle on the chart is 3##?4 degrees? degrees? Remem2ering Remem2ering there are 316 degrees in a circle; /e then su2tract this num2er >rom 316 to nd that /e have an angle o> )?3 degrees? This means that a ,Touch,Touch- o> the 35 at this "oint is more than li*el. a good short entr. as a ,touch trade? 8ou 8ou /ould do "recisel. "recisel. the same >or the 56 E0A and the #6 E0A? E0A? ee" in mind the /hole "oint is to ,measure- the "otential strength o> a 2ounce >rom a ,touch- and nothing more? more? e ee" e" it sim"le? The shar"er shar"er the angle; angle; the stronger stronger the trade? nder $6 degrees angle; & /ould "ro2a2l. "ass on a #6 E0A Touch; and under #5 degrees on a 3556 trade? Once .ou let go o> it it should sta. highlighted so .ou can hit the ,delete- 2utton on the *e. 2oars 2oars and get rid o> it? Once .ou have measured measured the angle; .ou don't need it an.more cluttering u" .our charts? NOW; NOW; measure the line W1E#E I IS; IS; not >rom /here the move started or .ou /ill get a >alse reading on on it's angle? &> it has started to ,Jatten ,Jatten- out a 2it; then measure measure >rom the last >e/ 2ars /here the ,Jattening- 2egan? Ne:t let me sho/ .ou ho/ to ,customiHe- .our tool 2ar to .ou don't have to ,hunt>or it /hen .ou need it?
Setting u& the oolbar: Right clic* on the tool 2ar and the menu to modi>. it a""ears? As seen here?
Select ,CustomiHe- >rom the list and this ne:t /indo/ a""ears?
%ighlight the ,Trendline ,Trendline 2. Angle- selection then /hen .ou clic* the ,&nsert- 2utton it /ill move it to the right side o> o> the list? At that "oint .ou can can use the ,u"- o> ,Do/n,Do/n- 2uttons to "lace it /here .ou /ant it in the list so it /ill sho/ u" in the tool 2ar >or eas. access as seen 2elo/?
1ow o Let he /ar,et 2Show It's 1and; 0ost /ho have traded even a little 2it or researched a little 2it have heard the term? ,let the mar*et sho/ it's hand?- The su""osition is that that once that has ha""ened; ha""ened; .ou can ta*e ta*e a sa>e trade /ith this ne/ ne/ in>ormation? & struggled >or a long time time tr.ing to gure out @ust ho/ this ha""ens and /hat it means?
&t's reall. "rett. "rett. sim"le? (rice Action is the the 2est ,indicator- o> the direction the the mar*et /ill /ill move? The "revious section descri2es some; some; 2ut 2. no means all o> the the /a.s that (rice Action can 2e used to /atch as the mar*et ,sho/s it's hand- so .ou can trade sa>el.? sa>el.? Even /ith this arsenal o> tools; sometimes; sometim es; the mar*et mar*et /ill ,sho/ it's hand- then @ust go the other /a.? /a.? &t can 2e ver.; ver. schiHo"hrenic schiHo"hrenic at times? Still; 2. using "rice action .ou can mitigate .our ris* on the entr. e:tremel. /ell? There are are sections later that e:"and on this to a great degree; degree; even an additional "art o> this manual that is a2out the ,Three 0ain Trades- o> the Dance Strateg.? %ere is a short version o> all this? A (in 7ar; at the to" or 2ottom o> a ver. long run o> "rice movement is a good g ood /a. the mar*et ,sho/s ,sho/s it's hand- that "rice has e:hausted itsel>? itsel>? O>ten it is also "receded 2. "rogressivel. "rogressivel. smaller smaller 2ars in the direction direction o> the movement? &> "rice is also a""roaching a SR level o> a Round Num2er; or a "lace /here (rice reversed reversed in the o""osite direction "reviousl.; or one o> the 0oving Averages used here; those things ALL can 2e used to determine i> the mar*et is trul. ,sho/ing it's hand- to the trader /ho is attentive? When "rice is constrained 2. one or another 0oving Average; Round Round Num2er; SR level or a conJuence o> an. o> these; that is also ho/ the 0ar*et ,sho/s it's handto the trader? Let's ta*e ta*e an e:am"le? Let's sa. that "rice has @ust dro""ed dro""ed 56 "i"s going short and then retraces a small amount; sa. $5 "i"s and in the Dro" crossed the 3556 lines >airl. shar"l. shar" l.?? 8ou might not have had an. /arning and might have missed the entire move? NOW though; though; "rice is in a retrace retrace and heads 2ac* to to the 3556 area? area? &> it hits and starts to sort o> ,2ounce along- one o> these t/o main averages; that is constrainment and the mar*et demonstrating a resistance to going u" an. >urther? T%&S &S ALL T%E CON9&R0A CON9&R0AT&ON T&ON 8O 8O NEED at this "oint? A>ter a cou"le to ma.2e 3 or 2ars li*e this; i> .ou have not alread. ta*en a trade 2ac* in the original direction o> the movement o> (rice; short i> it /as short; long i> it /as longF then .ou have have "ro2a2l. alread. alread. missed the 2est entr. entr. "oint? The mar*et's ina2ilit. to cross 2ac* through a Su""ort or Resistance Level; /hatever that ma. 2e; is the mar*et mar*et ,sho/ing it's hand?- &> .ou /ait to long; it /ill more more than li*el.; suddenl. move #6 to $6 "i"s the /a. it /as sho/ing it's move /ould 2e; and .ou have missed the trade's 2est entr. i> .ou are not alread. in the trade? The ,Touch,Touch- trades descri2ed descri2ed in this strateg. are are much the same? The mar*et mar*et o>ten /ill ,hit- or ,touch- a signicant SR level and then literall. ,RN- a/a. >rom it as much as $6 to 56 "i"s in one one or t/o 2ars? &> .ou are not not e:"ecting that to ha""en; ha""en; .ou /ill miss it ever. time until .ou learn to trust it and use ver. short sto" losses to ta*e advantage o> it? Learn the (rice Action 2ars in this strateg.? strateg.? Learn the "o/er o> the 3556 lines; the Round Num2ers and learn the "o/er o> more traditional SR "atterns as /ell? Things li*e dou2le dou2le and tri"le tests; o>ten o>ten called ,dou2le to"s 2ottoms2ottoms- or tri"le to"s 2ottoms- at an area o> SR can 2e e:tremel. "o/er>ul "o/er>ul and o>ten allo/ .ou to ta*e 2asicall. the e:act same trade a cou"le o> times in a session >or good "i" gains? The value o> learning ho/ ho/ "rice moves around around the 0oving Averages; Averages; Round Round Num2ers and traditional traditional SR levels cannot 2e e:aggerated? e:aggerated? The more .ou can can ,seethem; trust /hat the mar*et mar*et is telling .ou through them; the more success>ul and the /ealthier .ou /ill 2ecome in trading? &n the rest o> this manual /e discuss the three main t."es o> trades; /e
demonstrate /hat the. loo* li*e in ,real time- through the use o> Screen ca"tures ca"tures at the "oint o> the trade and @ust a>ter at either the move to 7E; or the e:it >rom the trade? SE T%E S&0LATOR S&0LATOR A LOT and "a. attention to the e:am"les given and .ou /ill do reall. /ell? 8ou ma. even sur"rise .oursel> and master this this strateg. a lot >aster than .ou thin*?
*utting It All ogether: Screen ,Setu"- or ,real ,real estate- is ver. ver. im"ortant in trading? trading? One must 2e a2le to ,see at a glance- /hether or not a trade is imminent or not and the direction it most li*el. /ill /ill go? 0ost com"uter com"uter screens screens are are not large large enough; and most s.stems to not allo/ >or multi"le monitors to allo/ one to see the charts in the 2est "ossi2le >ashion? This manual /as created created using a #4 inch monitor; monitor; /hich is "rett. "rett. standard in toda.'s /orld? Still; that is "rett. "rett. small /hen .ou need to ,see,see- several charts at a time? The ans/er to this dilemma is to ,stac*- the chart /indo/s? /indo/s? The >ollo/ing is a screen screen shot o> our setu" setu" on 0etatrader? 0etatrader? 8ou /ill notice that & onl. monitor three or >our currencies currencies at the moment? With a larger screen screen & /ould "ro2a2l. monitor more; 2ut & /ant to see CLEARL8 the setu"s? %OWEMER; it is "ossi2le to trade onl. ONE currenc. and ma*e great "rots "rots and 2ecome e:tremel. e:tremel. success>ul? Never underestimate underestimate the "o/er o> sim"licit. sim"licit. in this area as /ell+ Learning the ,"ersonalit.- o> a currenc. currenc. is amaHingl. amaHingl. "o/er>ul as /ell?
8ou 8ou /ill notice that this setu" setu" leaves room >or access to the ,Scri"ts,Scri"ts- area o> 0etatrader? 0etatrader? & have discovered that using Scri"ts to trade trade /ith is much >aster; more Je:i2le; and in short a lot easier to do?
Entering a trade is as sim"le as dragging the a""ro"riate scri"t 2u. or sellF to the chart .ou /ant to e:ecute e:ecute an order on and letting it dro"? The e:ecution e:ecution should 2e a LOT >aster than using the normal 0T Order inter>ace? 8ou could also @ust clic* on the chart .ou /ant to e:ecute on then dou2le clic* the scri"t .ou /ant to e:ecute? That /or*s even >aster >aster?? The Scri"ts >or 7u. and and Sell orders; have have "reset SL and and T( levels? These scri"ts scri"ts access a glo2al varia2le "reviousl. "reviousl. set 2. the AUSetLotSiHe AUSetLotSiHe scri"t? & suggest setting .our traderis* traderis* once "er session at the the 2eginning? That /ill automaticall. automaticall. increment .our trades >or a 2it more aggressive com"ounding /ithout running the ris*s o> ,instant com"ounding- /hile trading? There are are other scri"ts >or moving moving 2oth 2. sim"l. dragging dragging the a""ro"riate a""ro"riate Scri"t to the a""ro"riate chart and dro""ing it? The SL or T( scri"ts /ill move .our SL SL or T( to the e:act e:act s"ot on the chart chart /here .ou dro" it? There is even a 7E 7E Scri"t >or moving to 7rea* 7rea* Even to mitigate mitigate Ris* in a trade? We tal* a2out the Scri"ts later?
#e?ning the Entr0 sing three charts on di=ering time >rames >or a single currenc. currenc. is nothing ne/? ne/? 0an. do it? The di=erence /ith /ith this Strateg. is that /e do NOT change to di=erent di=erent 0oving Averages Averages on the various various time >rame charts? Once .ou get used to seeing seeing the (A around the averages; it @ust doesn't ma*e much sense to me to change them? &n addition; the 35 S0A is ver. strong on all the charts+ charts+ 7elo/ are is an image >rom one o> o> m. trades? & have mar*ed mar*ed the SA0E time on t/o o> the charts in the grou"? One on 0#5; the larger chart; and one on 05; the smaller le>t side chart? Remem2er; Remem2er; the reason reason >or three charts charts is so .ou can see the the overall recent trend on %#; start to choose .our entr. on 0#5; then rene it on 05 >or the 2est "ossi2le entr. and e:it? e:it? & don't use 05 much an.more an.more 2ut this sho/s the "rinci"le reall. /ell? Notice that on 7OT% o> the lo/er time >rame charts "rice /as 2eing ,constrained2. the SA0E E0As? On 0#5; there /as a three 2ar area /here a good entr. could have 2een made; 2ut on 05 the the same area /as /as several more more 2ars? This all is @ust added conrmation o> the trade and should give .ou more condence >or an entr.? %o/ever; once in the trade; it's 2est to manage it on 0#5 trailing .our sto" loss on 0#5 2ars as it eliminates the ,cho"- that sha*e "eo"le out o> other/ise strong trades? &> .ou had trailed the SL on 05; .ou /ould have 2een sha*en sha*en out a cou"le o> times? Stic* to trailing the SL on 0#5; 0#5; it /ill greatl. increase increase .our gains overall? This trade /as ultimatel. ultimatel. good >or a2out 6 "i"s?
This ne:t image sho/s sho/s the same "rinci"le /ithout /ithout the use o> the 05 char chart? t? The trade /as ta*en at the immediate %# ,Touch- o> the 35 and gave u" a2out 6 "i"s as /ell and .ou can see on 0#5 /here it hit resistance?
A Word About Wic,s Wic*s on candles are are used lots o> /a.s in all sorts sorts o> Strategies? &n ,The Dance- /e use them onl. >or immediate SR levels >rom the immediate "ast t/o or three da.s? Longer than that @ust messes u" the charts? charts? sing /ic*s to set 2oth 2oth e:it levels and entr. levels can 2e "rett. "rett. "o/er>ul? ust don't get too carried carried a/a. /ith them and *ee" them sim"le and .our charts clean or it gets con>using? &> there are are lots o> /ic*s on 0#5; 0#5; use the %# chart >or the the levels .ou need? &> %# is too ,cho"".- /ith too man. /ic*s; use D#? & seriousl. dou2t D# /ill ever have have ,too man.- to mess /ith .ou? 7elo/ is a chart that sho/s sho/s /hat & am tal*ing tal*ing a2out? There is one >rom >rom 0#5; then & Hoomed 0#5 out to and %# chart to nd a cou"le more levels; and mar*ed them 2oth on %# and 0#5 to ma*e them more more a""arent to .ou; and even one on D# @ust >or em"hasis? Trade these li*e a ,normal,normal- SR Level; /hen the. ,get there- ta*e the trade and give it no more more than a #! "i" SL? &9 the. stall /ithin a cou"le o> "i"s; ta*e them and /ait /ith .our SL li*e .ou /ould normall. use it? & don't recommend trading ,cho"- 2ut as in the chart 2elo/ /here there are are clear SR levels; MER8 MER8 close to the Round Num2ers areas it can 2e acce"ta2le to ta*e the reverse trade trade ,as i>- it touched on a second second candle? ust 2e sure sure .ou use a long enough Sto" Loss so .ou don't get ta*en out in the entr. candle?
En@o.+
Sta0 O(! As /ith all strategies; there are areas to avoid at all costs? As sim"le as this ma. sound; it /ill vastl. increase .our "rota2ilit. and success rate? #? NEMER TRADE TRADE a "rice action 2ar 2. itsel>+ There 0ST 2e 2e some sort o> other reason >or the trade such as the 2ar occurring at a Su""ort or Resistance Level; a ,Round Num2er;- as a 2ounce o= o> a 0oving Average as a constrainment constrai nment trade in a counter trend trade ONL8 ONL8 a>ter "rice has traveled travele d a signicant distance a/a. >rom the 56 and 2oth turned 2elo/ and retested a lo/er 0A? $? NEMER 9ORCE 9ORCE a trade; trade; /ait "atientl. >or the ,"er>ect- setu"s >ound >ound in this manual? 3? NEMER TRADE TRADE i> .ou are are not #66 ,sure,sure- o> the the trade? 7ut at the same time; don't let >ear sto" .our trading; .ou must trade; @ust 2e #66 ,sure- the trade ts the rules 2e>ore .ou do? ? Last Lastl. l.;; !E1ER TRA.E T2E #ORU#0!E3 The ,(orcu"ine,(orcu"ine- is an area area o> "rice activit. /here the "rice 2ars have lots o> /ic*s on 2oth sides o> them; and those /ic*s are are ,signicant- in siHe; meaning more more than @ust a >e/ "i"s? The ,(orcu"ine,(orcu"ine- is demonstrated in the e:am"les o> ,Sta. OT- >ollo/ing this area o> denition?
9a*eouts occur o>ten in 9ore: Trading Trading 2ut there are /a.s to mitigate them? the m? 9irst; DON'T LET (R&CE 9OOL 8O+ 8O+ %ere are a >e/ e:am"les o> /hat & mean? RE0E07ER; & no longer use the 05; the line colors have changed and & no longer use the "ur"le 0A?
&n the a2ove chart; the last area in the 2o: is /here lots o> ,>a*e ,>a*e outs- ha""en? Things ma. loo* good; 2ut 2ut an. entr. in these areas areas /ould violate the rules rules and leave .ou vulnera2le to indecision and man. other 2ad things such as reversals that are too >ast; e:tremel. /ide SL settings and more? Avoiding Avoiding the 2ad trades is @ust as as im"ortant as ma*ing ma*ing the good ones? &> .ou are not ,sure- o> the trade; STA8 OT and /ait >or a 2etter setu"?
rade G #is, /anagement #is, /anagement: Ris* is a "ersonal thing and it should 2e? No one can assess ris* the same /a. .ou do and no one should? There are are man. /ho sa. never to ris* more more than $ on a trade; some sa. 3 and & have seen traders traders use as high as $6 on on a trade? &t all de"ends on .our condence level and ho/ much .ou can a=ord to lose i> .ou do? (ersonall.; (ersonall.; trading /ith $ to 3 ris* ris* (ER (OS&T&ON is acce"ta2le acce"ta2le to me? What that means is that i> & ta*e a "osition in one currenc.; usuall. it's no more than a 3 ris* >or that currenc.? currenc.? Sometimes; Sometime s; & ta*e t/o "ositions in a currenc. and that means that each "osition is 3 or or 1 total ris*? Sometimes; & see reall. reall. good trades in multi"le currencies and & can mitigate ris* 2. ta*ing a single "osition in more than one currenc.? currenc.? As long as each "osition is no more than $ to 3; & am "ersonall. ne /ith it? 0. suggestion is that .ou trade /ith no more than $ "er "osition to start learning and O!L4 one one currenc. /hen .ou start? 8ou need some time to learn to trade The Dance and to learn the the s"ecic currenc. currenc. .ou choose? All currencies currencies have a slightl. di=erent ,"ersonalit.- 2ecause slightl. di=erent traders overall trade them? rade /anagement: Trade Trade management is NOT NOT the same as ,ris*,ris*- management though though it can greatl. a=ect and either reduce reduce or increase the ris* o> .our trading? trading? 9or e:am"le; e:am"le; i> .ou trade one lot; or one "osition; then .ou need to have a /a. o> trading that allo/s .ou to ,loc* in- as >ar as that is "ossi2le; some "i"s earl. on and then tr. to ,let it runrun- a>ter that? &t can 2e done; 2ut /ith one one "osition it's a 2it harder harder and some 2ro*ers 2ro*ers /ill not let .ou ,scale- out a>ter the entr. thus ,loc*ing in- some "i"s earl. on 2. actuall. ta*ing them O99 the ta2le /hen .ou do this? The 7EST /a.; in m. hum2le hum2le o"inion is to ta*e ta*e t/o "ositions /ith less less ris* each /hen trading and e:it the rst "osition at some "oint /here .ou have made a solid gain; then move the SL to 7E and let the last "osition ,run,run- and trail the SL ,2. the rules?- to ma:imiHe the last "osition and .our trade? The scri"ts included in this strateg. strateg. /ill o"en TWO "ositions "ositions each /ith #?5 ris* ris* >or a total o> 3 overall? The rst "osition /ill have have a ,ta*e "rot"rot- set >or #5 "i"s and the second one >or a2out #66; /hich .ou can increase /ith the T( scri"t i> it's reall. ,running- hard .our /a.? DO NOT change this /hile .ou are learning? Ta*ing some o> the "i"s earl. is ETRE0EL8 ETRE0EL8 "o/er>ul? &t all 2ut guarantees /inning trades; &9 .ou >ollo/ the rules to the letter; AND mitigates or eliminates eliminates most o> the ris* o> the trades ta*en? ta*en? &n
addition; it allo/s .ou to ,let ,l et it run- as .ou have heard so man. times and "ro2a2l. struggles /ith as & did earl. on? & never reall. could gure out ho/ to ,let it run- and it al/a.s seemed to end u" going against me? T%&S SOL SOLMES MES all that? &t eliminates; >or the most "art "art the "ossi2ilit. it /ill go against .ou once .ou are in "rots; AND it allo/s a #66 "i" ,2reathing s"ace- >or the trade to run to/ard so .ou can learn to trail the SL as /ell? Now let's tal, E=its" E:its can actuall. 2e more important than than entries? entries? This is the the 0A&N reason reason >or using t/o "ositions and ta*ing one out earl.? earl.? 0ost o> this manual is dedicated to ltering; ,seeing- and ta*ing strong strong entries so .ou can avoid lots o> losses? The "ro2lem is that even /ith a/esome entries; i> .ou don't have an eBuall. strong e:it strateg.; .ou /ill /ill still most li*el. li*el. >ail? & did >or a long time? When & rst 2egan; & had man.; man. trades that /ent "rota2le "rett. Buic*l.; 2ut in an e=ort to let the trade ,2reathe- as so man. tal* a2out; & o>ten ended u" at a loss? Letting a trade ,2reathe- too >ast >ast is o>ten >atal? >atal? &> the trade is a strong strong trade; trade; it should give .ou at least TWO 2ars o> "rot 2e>ore an. reItest occurs o> an. signicance? &> it doesn't; .ou reall. don't /ant to 2e in the trade an. /a.? /a.? Still; allo/ing a trade to ,2reathe- is e:tremel. e:tremel. im"ortant to long term trading success; 7T at the the 2eginning; NOT LOS&NK LOS&NK is 0ORE im"ortant? im"ortant? &t 2uilds condence in the strateg.; .our a2ilit. a2ilit. to use it and it 2uilds .our account as /ell? &> .ou have "er>ect entries ever. time; 2ut let lots o> them go negative .ou /ill lose condence ver.; ver. Buic*l. and have "ro2lems; 2eginning to thin* the strateg. is Ja/ed; /hen .our ,e:it strateg.strateg.- is the REAL "ro2lem+ "ro2lem+ SE T%E SCR&(TS (ROM&DED (ROM&DED to ght this+ Earl. on & >aced this; and the /a. the scri"ts are set is the a2solute 7EST solution & could nd? There are are man. /ho /ill tr. to tell .ou to use more more "ositions; less ris* and man. di=erent di=erent com2inations? Those ma. all /or* /ell /ell /ith T%E&R strateg.; strateg.; 2ut NOT >or The Dance? Dance? SE T%E SCR&(TS SCR&(TS AND DO NOT change them? ee" in mind that /hat .ou are aiming >or is consistenc.; not huge "rots; at least at rst? The "rots "rots and trade siHes siHes /ill gro/ i> .ou are consistent? The main idea is to hit .our targets targets ever. time? T%EN /or* on ma:imiHing ma:imiHing the trades in other /a.s such as moving .our SL on each 2ar and so on? 8our ,target- is NOT the #66 "i" T( set 2. the scri"ts >or the the second "osition? &T &S to 2e "rota2le "rota2le EMER8 EMER8 S&NKLE TRADE; /hether /hether it is >or onl. 7E# or and e:it >or a >e/ more more "i"s /hen /hen "rice hesitates too long >or .ou; or an e:it at or ver. close to the ne:t Round Round Num2er level? ALL ARE ACCE(TA7LE ACCE(TA7LE trades? Even a 7rea* Even trade is a good trade in the 2eginning and in >act even >or veterans o> trading? At rst; .ou /ill "ro2a2l. onl. 2e a2le to "rot #6 to $6 "i"s consistentl. /ith this strateg.? strateg.? T%AT &S (ER9ECTL8 (ER9ECTL8 9&NE; and acce"ta2le? CONS&STENC8 CONS &STENC8 is the goal not huge "i" counts? As .ou gain more and more e:"erience; .ou /ill 2egin to have a ,9eel,9eel- >or the trade and "rice's movement and and momentum? T%AT T%AT is /hen .ou can 2egin 2egin to /or* on ma:imiHing the trades and increasing "i" counts?
One o> the 2est /a.s to ma:imiHe a trade is to "rogressivel. move .our SL u" to the last retrace level and and *ee" it @ust a >e/ "i"s short o> that? that? Then; 2. moving it u" a>ter each level; .ou /ill in e=ect 2e allo/ing (rice itsel> to dictate .our e:its; not a "redetermined "redetermined T( level? &t /ill ta*e some some "ractice to learn this; this; 2ut *ee" at it as it .ields reall. strong re/ards? NOW; TRA&N 8ORSEL9 8ORSEL9 TO &KNORE T%E VV &N T%E TRADE TRADE and .our account? 9OCS ON (&(S instead? There are are a great man. /ho /ho /ill argue vehementl. vehementl. that .ou a2solutel.; "ositivel. must "a. attention to the o> ris* each trade; the total o> the trade and in .our account; account; .our e:"osure e:"osure and on and on and on? That's all CRA( CRA( unless .ou can rst 2ecome 2ecome consistent in .our trading? trading? Without consistenc.; consistenc.; .ou /ill never have an.thing to manage+ manage+ 7esides; using the Scri"ts Scri"ts descri2ed later; .ou .ou can manage ris* reall.; reall. /ell and easil. too? SO; i> .ou reall. /ant to gro/ .our ne/ 2usiness account and have lots o> ,inventor.- to /or* /ith; 9OCS ON KOOD ENTR&ES; STRONK E&TS and (&(S ONL8 AND ECLS&MEL ECLS&MEL8 8? Let the Scri"ts do the /or* o> Ris* 0anagement 0anage ment >or .ou so .ou can >ocus on other things? Once .ou are used to >ocusing on the num2er o> "i"s; the stress o> the VV >airl. disa""ears? Then .ou are are le>t /ith either gaining or or losing a >e/ "i"s; nothing nothing more or less monumental than than the "oints in a video game? game? T%AT T%AT is the mindset .ou a2solutel. 0ST nurture and master to 2ecome success>ul? The more ,2oring- this 2ecomes; the more success>ul .ou /ill 2e? &> .our trading is more li*e dancing; or "la.ing a video game to .ou; the stress and ,>ear- that so o>ten *ills others /ill have Hero e=ect on .ou? 8ou /ill 2ecome immune to it and it /ill 2ecome much easier to >ocus on the actual trading strateg.; the "rice action; and im"roving .our s*ills? E:its are acce"ta2le acce"ta2le at an. "oint .ou are are in "rots? &> .ou have care>ull. care>ull. chosen a strong entr.; moving to 7E # >airl. Buic*l.; sa. a>ter a2out #5 "i"s or so shouldn't even have an. e=ect on the trade? trade? &> .ou are consistentl. consistentl. 2eing sto""ed at that that level; reIread this manual; use the Simulator and ne tune .our entries some more? With the entries mastered; mastered; 2egin mastering mastering the e:its ne:t? ne:t? The more s*illed .ou .ou 2ecome at ma:imiHing the trades to "reserve the "i"s alread. gained; in the trade on the rst "osition and learing to ma:imiHe the second "osition; the >aster .our account /ill gro/? That's it? ee" it sim"le and learn to be consistent /0R+T ; then move on to longer trades; more "ositions and sta.ing in to ma:imiHe the trade?
railing the SL: Once in the trade; and .ou have moved to 7E #; learn learn to let it run? The >ollo/ing chart is a great e:am"le o> that? (lace each ne/ SL at the last e:treme e:treme o> the last last candle $ "i"s and NO 0ORE? 0ORE? &9 the trade sto"s .ou out; .ou WANT T%AT T%AT 2ecause it >rees .ou u" >or a ne/ trade and "ro2a2l. indicates at least a reItest reItest reversal an./a.? an./a.? 0oving an. more aggressivel. /ill 2urn .ou too o>ten?
&> the trade is starting to ,run- 0OME 8OR T( /a. out in >ront to allo/ .ou to ma:imiHe the trade? %ere is a good chart chart e:am"le? Each 2lac* line is /here /here the SL /ould have 2een trailed to a>ter each 2ar 2ar until sto""ed out in the the trade? & no longer use the 5E0A; 5E0A; or the longer "ur"le one and & have changed the line colors >or sim"licit.; 2ut the chart e:am"le is a great one?
NOE: The NOE: The averages used are are no/ the standard standard 0T averages and are are colored slightl. di=erentl. and and the "ur"le $66 is no longer used? This chart; ho/ever ho/ever sho/s e:tremel. clearl. ho/ to trail the sto" so & *e"t it in the manual >or .our convenience? ee" in mind that i> "rice has 2een ranging; or a 2it more cho"".; .ou ma. /ant to ta*e .our "i"s a 2it >aster near a Round Num2er? The >ollo/ing e:am"le /as /as actuall. created >or >or a di=erent illustration; illustration; 2ut it sho/s another as"ect o> trailing sto"s on The Dance; /hich "ersonall. & thin* is a/esome? The conce"t is getting a ,second ,second 2ite- at the a""le /hile trading? trading? &t means that .ou enter; get sto""ed out "i"s; then the trade ranges 2ac* to ANOT%ER entr. "oint /here .ou reIenter and ta*e that second 2ite; thus harvesting some "i"s TW&CE in the trading "rocess? "rocess? %ere is the chart 2elo/? 2elo/? This chart does does NOT sho/ the other t/o; 2ut .ou get the idea >rom >rom it ver.; ver. /ell? Comments are are on the image 2elo/ and 2eside it?
NOTE This &S a "ro"er setu"; 2ut & have eliminated e liminated the thic*er lines in >avor o> sim"licit. sim"lic it.?? The thinner lines are the correct setu"? 8ou can "la. /ith the higher time >rame ,eBuivalent- lines i> .ou /ant to; & >ound them distracting and Buit using them?
Setting (& he Charts #? 9ind .our 0etatrad 0etatrader er installatio installation n on .our hard hard drive? $? 9ind the (roles (roles >older and dro" dro" in the the entire >older titled ,The DanceDance- in it?? 3? 9ind .our &ndicators &ndicators and Scri"ts Scri"ts >olders under ,E:"ert AdvisersAdvisers- and dro" dro" the indicators in the a""ro"riate indicators >older; and the Scri"ts in the a""ro"riate Scri"ts >older? ? 9ind .our Tem"lates Tem"lates >older under E:"ert E:"ert Advisers and and to" the included tem"late ,The Dance- in it? 5? Start 0etatrader 0etatrader and a""l. the ne/ (role (role ,The Dance?- Ever.thing should loo* e:actl. li*e this manual no/? &> it doesn't; .outu2e?com has some great videos and this lin* on 99 might hel" as /ell? htt"///?>ore:>actor.?comsho/thread?"h"PtQ145$! %ere is a short tutorial on it as /ell? Right clic* .our ,home- 2utton; then select ,E:"lore- >rom the menu
&n the ne:t /indo/ that o"ens nd .our ,(rograms- >older; clic* on the icon ne:t to it and e:"and it? As seen seen here? Then in the right /indo/; scroll scroll do/n to .our .our 0etatrader 0etatrade r installation? 9or me that is an &79 >older? >older? 8ours might have the name o> .our 2ro*er on it or it might @ust have ,0etatrader- on it? Once .ou nd it; clic* it and e:"and it?
Once e:"anded; .ou /ill then see >olders >rom 0etatrader 0etatrad er in the right /indo/? /indo/? 9ind ,(roles,(roles- and dou2le clic* it to e:"and e:"and it as /ell? This is the >older the included included "role ,The Dance- is dro""ed into as seen here 2elo/?
E:"anded vie/ o> ,(roles- is 2elo/?
Ne:t is to nd; clic* and e:"and the Tem"late Tem"lates s >older in the le>t /indo/? /indo/? Then "lace the included tem"late ,The Dance- in it? Once .ou have "laced the (role (role and the Tem"late Tem"late correctl.; correctl.; then in the le>t /indo/ /indo/ nd and e:"and ,E:"erts,E:"erts- and in the right /indo/ .ou /ill then see see the Scri"ts; &ndicators &ndicators >olders? (lace the scri"ts and indicators included in the Hi" le this came in; in those >olders and start 0etatrader? 0etatrader? &> .ou get the error error message ,Waiting ,Waiting >or "date- in the chart /indo/; @ust o"en the ,0ar*et Watch- are o> .our "lat>orm and drag the a""ro"riate currenc. to the "ro"er charts and the. /ill u"date immediatel.? immediatel.? This /as done /ith a Standard Account; so i> .ou use a 0ini; micro or some other designation >rom .our 2ro*er; this error ma. occur? The solution is e:"lained in the ne:t section?
(sing he *ro?le &ncluded &ncluded in the Hi" le is a ,(ro ,(rolele- >or .our use in setting u" .our charts? charts? (roles (roles are a neat >eature o> 0etaTrader 0etaTrader that allo/ .ou to save a ,"role- and ra"idl. a""l. it to anot anothe herr set set o> curr currenci encies es?? When When instal installi ling ng the the ,"ro ,"rolele- @ust @ust nd nd .our .our 0etaTrader 0etaTrader installation as in the "revious section on installing them? Once Once .ou have ever. ever.thi thing ng instal installed led;; .ou ma. see an erro errorr messag message e that that sa.s sa.s
,Waiting ,Waiting >or "date- or something similar in .our .our chart /indo/s? &> .ou are using a 0ini 0ini;; 0icr 0icro o or some some othe otherr acco accoun unt; t; .our .our 2ro* 2ro*er er ma. ma. use use di=e di=eri ring ng cur currenc. enc. designatio designations ns to u"date to .our charts charts than these /ere /ere created created /ith? Should Should that occur; there is a Buic* and eas. :? ust o"en the ,0ar*et ,0ar*et WatchWatch- /indo/ and select the currenc. currenc. .ou /ant >rom >rom the list? Clic* and hold the mouse mouse 2utton on that currenc.; currenc.; then drag drag it to the chart .ou desire and .ou /ill /ill instantl. see it change to that that currenc. currenc. and u"date? &t reall. is that sim"le? Re"eat >or each chart /indo/? /indo/? &> .ou decide to du"licate this >or more currencies; currencies; @ust save the "role /ith a ne/ name and >ollo/ the same "rocedure to re"lace the currenc. in the /indo/s dis"la.ed /ith a ne/ one? See the image 2elo/? ee" in mind the ne/ "role onl. used three charts on ONE currenc. >or trading?
(sing he Scri&ts Several ,Scri"ts,Scri "ts- are included in this strateg.? strateg.? The intent o> these Scri"ts is to ma*e trading much sim"ler; Buic*er and easier to do? #RAT0E 0! .EMO 2e>ore using them so .ou *no/ /hat .ou are doing /ith them +++ The Scri"ts are are as listed 2elo/? 2elo/? NOTE sing the ,one ,one currenc.currenc.- setu" .ou ma. sim"l. ,dou2le clic*- the scri"ts instead o> draggin and dro""ing i> .ou li*e? •
AHSetLotSie: This scri"t sets the siHe o> Lots .ou /ill 2e trading trading >or each
session? I /(S 9E SE +I#S 5or eac% session or the ne:t t/o scri"ts /hich e:ecute e:ecute a 2u. and a sell W&LL NOT /or*? &t is used to set the Lot Lot siHe 2ased on the account 2alance 2alance and the Sto" Loss Loss .ou choose to use? use? &t is "reI set to a #5 (i" SL 2ut /hen clic*ed launches a "o" u" .ou can use to change the ris* and the SL setting setting i> .ou /ant to? to? That is not recommended? recommended? •
•
•
•
•
•
•
•
AH9u0: This AH9u0: This Scri"t e:ecutes e:ecutes a single order order 2u. sim"l. 2. dro""ing dro""ing it on the chart? &t is "reset to enter TWO "ositions "ositions /ith a SL o> #$ #$ "i"s on on each /ith /ith a T( o> #5 and a #66 "i"s res"ectivel. res"ectivel.?? Once e:ecuted e:ecuted .ou should ma. decrease the SL i> .ou have the e:"erience e:"erience to do so? The settings on the rst rst T( is %ARD; DO NOT change it? The SL and the second T( T( are onl. to give .ou .ou time to thin* a2out /here to set it; 2ut still have them in "lace? AHSell: This AHSell: This Scri"t e:ecutes e:ecutes a single order Sell sim"l. 2. dro""ing dro""ing it on the chart? &t is "reset to enter TWO "ositions "ositions /ith a SL o> #$ #$ "i"s on on each /ith /ith a T( o> #5 and a #66 "i"s res"ectivel. res"ectivel.?? Once e:ecuted e:ecuted .ou should ma. decrease the SL i> .ou have the e:"erience e:"erience to do so? The settings on the rst rst T( is %ARD; DO NOT change it? The SL and the second T( T( are onl. to give .ou .ou time to thin* a2out /here to set it; 2ut still have them in "lace? AClose +irst -*air: This scri"t /ill close the rst rst o"en order on on a single chart? Sim"l. drag it on the the chart and and dro" dro" it? Than*s to 99's S/ingman S/ingman >or the scri"t? AClose All -*air: This -*air: This scri"t /ill close ALL o"en orders on a single chart? Sim"l. drag it on the chart and dro" it? Than*s to 99's 99's S/ingman >or the scri"t AE/E#7ENC%CloseAll: This Scri"t /ill close close ALL "ositions on ALL currencies immediatel.? A* Set/oe: This Scri"t /ill set or move ALL the Target Target (rot lines on a s"ecic chart? Sim"l. drag and dro" dro" it on the desired desired chart? &> no T( is "resent; it /ill create create one? se this to change the T( T( on a trade? ASL Set/oe: This Scri"t /ill /ill set or move move ALL the Sto" Loss lines lines on a s"ecic chart? Sim"l. drag and dro" dro" it on the desired desired chart? &> no SL is "resent; it /ill create create one? se this to change the SL SL on a trade? 9rea, Een SL: Will move move ALL sto"s to to 7rea* 7rea* Even on a s"ecic chart? Drag and dro" on the chart .ou /ant?
0AE SRE 8O %AME ENA7LED 7OT% ,E(ERT ADM&SERS- AND ,ALLOW L&ME TRAD&NK TRAD&NK- in the ,E:"erts- ta2 o> the the ,O"tions- "o" "o" u" >ound under ,Tools- in the to" 0enu o> .our "lat>orm? Clic* ,Tools;,Tools;- then ,O"tions?-
Then ena2le the 2o:es 2o:es sho/n sho/n 2elo/? 2elo/?
NOE: I 0ou hae a ?e digit bro,er or one that uses more8 0ou /(S o&en the scri&ts and add a 24; to the SL and * setting or the scri&ts will not e=ecute or 0ou" SETT&NK T%E STO( STO( LOSS LOSS the "ur"ose o> setting setting the SL to #! in the scri"ts is that on K2"sd and Eur". /ith "i" s"reads s"reads one needs a 2it more ,room?,room?- &> .ou decide to trade others; li*e the Eursd .ou should dro" it immediatel. to as li ttle as "ossi2le /ith the ASL scri"t? scri"t? Also; o>ten; once .ou are are a 2it more s*illed; s*illed; .ou ma. o>ten dro" the SL to as little as 4 or ! "i"s on an entr. even on K2"sd and Eur".? This #! "i" setting /ill also allo/ .ou .ou to set it /here /here .ou /ant it a>ter a>ter entr.; 2ut avoid .ou 2eing sto""ed out "rematurel. on a "rice s/ing /ithin the entr. candle? The other reason reason >or using #! is that the Ris* o> each trade is determined determined 2. the num2er o> "i"s use >or the SL in the AUSetLotSiHe scri"t; /hich is #5? 8ou /ill need to decrease the SL almost immediatel. on entr.; 2ut this setting allo/s .ou to earn more "er trade; trade; /hile *ee"ing e:tremel. e:tremel. lo/ ris* ris* e:"osure e:"osure on each trade? The smaller the SL .ou can learn lea rn to manage a trade /ith; the smaller .our ris* /ill 2e &9 .ou leave the #5 "i" in the AUSetLotSiHe scri"t that sets the trade siHes? 0odi>.ing the Scri"ts
9irst; go to Tools IX 0etautoes Language Editor and clic* the lin* as seen here
Once the Editor o"ens clic* ,scri"ts- and nd the 2u. and sell scri"ts ,AU7u.,AU7u.- and ,AUSell?- One at a time; dou2le clic* then and ma*e the >ollo/ing >ollo/ing changes?
Ne:t "age "lease?
Once one o> them is o"en; modi>. this setting in each?
Once .ou have done that; then nd the ,com"ile- 2utton and clic* it to activate the ne/ settings and close the editor? 8O 0ST CL&C CO0(&LE OR T%E8 W&LL NOT C%ANKE+ &> .ou have s"ecial needs or "ro2lems; time to do some research and learning on .our o/n >or this?
About Adanced #ules There are are man.; man. /a.s to to use the lines o> The Dance? A lot o> tal* on the 99 thread has given given to /hat the. might 2e? There are are some; and &'ll tal* a small 2it a2out them here; here; 2ut don't get caught u" u" in them? Learn Learn and master the 2asics rst; then .ou /ill 2e read. to create .our OWN ,advanced rules- 2ased on .our e:"erience and /hat 8O see in the charts? Scoo&ed Awa0: This is "rett. sim"le; sim"le; /hen the #6 E0A ,turns,turns- on one o> the charts; charts; the 2ar a>ter it turns o>ten o>ten retests the the line? Sometimes the second one does li*e li*e a ,touch- trade in a normal setu"? Either /a.; that retest retest o>ten "resents a >airl. solid solid counter trend entr. /orth at least $6 $6 "i"s? &> .ou are usig the the Scri"ts "ro"erl.; "ro"erl.; .ou can ta*e ta*e the rst T( out reall. Buic*; move to 7e and /ait >or the trade to run .our /a.; or 2ounce at the higher lines and reverse 2ac* 2ac* into the trend o> the the moment? ust /atch the charts; .ou'll see /hat & mean? Wic,ed: The ti"s o> ver. long /ic*s on 0#5; and on %# and D# "resent some some e:tremel. e:tremel. "o/er>ul T( targets /hen "rice is heading that /a.; and the. can also "resent strong reverse reverse trades as /ell? There is a reason that that "rice "reviousl. reversed reversed leaving that long /ic*; and most li*el. that reason is still in "la. >or at least $6 to 56 "i"s a>ter /hich "rice "rice ma. again head to/ard to/ard that /ic* ti"? Learning Learning to /atch >or
them and use them is a ver. strong /a. to nd good tagets >or e:its to ma:imiHe the trade; and a "lace to nd solid solid reverse trades trades as /ell? Remem2er to *ee" reall.; reall.; reall. tight SLs in those area? 1ome on he #ange: Ranging mar*ets mar*ets can 2e a real challenge and more than once the. have *ic*ed m. little ros. red+ The 2est /a. to trade DA&L8 DA&L8 ranging mar*ets is to leave them alone? NOR0AL ranging mar*ets "la. ver. nicel. into The Dance's lines i> that range is #66 "i"s or so >rom high to lo/? 7T /hen that range is &NTRADA8 &NTRADA8 and onl. a2out 56 to 45 "i"s; most @ust call it cho" and /al* a/a.? a/a.? & o>ten do that 2ecause o> the attention and >ocus needed to trade them "ro"erl.? &> .ou reall. /ant to tac*le it though; trade it the /a. most /ould; dra/ a ,channel- at the most common highs and lo/s; T%EN loo* >or 2ounces o= the 3556 lines >or a2out #5 "i"s to mil* it; 2ut DO NOT e:"ect an.thing larger+ 8ou 8ou can also ta*e ta*e trades /hen the #6 ,scoo"s,scoo"s- "rice u" or do/n do/n at the e:tremes e:tremes o> the range; 2ut again; DO NOT NOT e:"ect more more than a2out #5 "i"s? SO0ET&0ES .ou'll .ou'll get luc*. and hit a good 56 or #66 "i" trade in this stu=; 2ut mostl. @ust the #6 "i"s and $6 "i"s o> trading?
Summar0 &> .ou ta*e the the time to learn to use use the (rice Action Action and 2ounces o> the ConJuence o> E0As and ,Round Num2ers- as a lters >or entries and the E0As as Joating su""ort and resistance; resistance; this strateg. strateg. can literall. ma*e ma*e .ou rich? The man /ho hel"ed me learn most o> this and to /rite do/n all the rules averages a""ro:imatel. )6 to #66 "i"s "er da.? da.? %e does it da. in; da. out; no matter /hat the mar*et? %e did it during the most volatile mar*et mar*et ever seen in $66) and $66!? %e did it in the consolidation "eriod that >ollo/ed and he /as doing it 2e>ore that during the "revious trending mar*et? Several times & /atched him earn u"/ards o> 566 "i"s "er /ee* and .es; those are ,real,real- "i"s at at a >ull lot each "i" /ith onl. a V#6;666?66 account account to 2oot? 2oot? &n addition; several times he has ta*en a V566?66 account and gro/n it to over V5;666?66 in less than t/o months; then move 2ac* to earning a living l iving /ith that account? &> .ou thin* .ou need lots o> o> mone. to start; thin* thin* again? Starting /ith a large large account is a great /a. to lose a lot o> mone.? mone.? & /atched m. >riend ta*e a V366?66 dollar account to V#)66?66 in a2out a2out 1 /ee*s? A moth later that same account had over V5;666?66 in it? 9ol*s;;; that's a return return o> over #66 ever. /ee* and a hal>? hal>? &> he can do it; so can .ou? 7. the /a.; as as o> this /riting /riting he is trading trading to 5 standard lots ever. trade? trade? 8ou do the math on that? that? &t's a2out a million a .ear income+ income+ (atience is the the main *e. in all this? this? (atience (atience allo/s .ou to 2e less emotionall. emotionall. involved so .ou don't ma*e lots o> dum2 mista*es? +T06 TO T2E RULE+; and .ou /ill 2e @ust ne?
Dancing *ractice Learning to dance; /hether it's real dancing or this strateg.; reBuires "ractice? Al/a.s "ractice 2e>ore ma*ing a >ool o> .oursel> on a live dance Joor+ With that in mind; there there is a good /a. to do that? that? The rst and 2est /a. to to "ractice this is to use the Strateg. Tester Tester "rovided 2. uantem? %is thread is no/ in the 9ore:9actor. 9ore:9actor. Rec.cle 7in; 2ut the tool is still a good tool? %ere is the lin* htt"///?>ore:>actor.?comsho/thread?"h"PtQ464$ 8ou 8ou /ill "ro2a2l. have have a tough time getting to an. an. real ,success,success- on it 2ecause o> the /a. it /or*s; at least least at rst? 7ut stic* /ith it and .ou .ou W&LL start seeing some some success? The >ollo/ing are the ste"s to get good at this strateg.? strateg.? 8ou /ill also not 2e a2le to use the three chart setu" 2ecause o> ho/ the Strateg. Tester /or*s; 2ut it's great "ractice? #? At rst .ou .ou should @ust start a chart chart in the Tester and activate activate the tem"late ,The Dance- >or the chart? Then @ust sit and /atch ho/ it acts and reacts around the 0oving Averages and around the Round Num2er levels on several di=erent currencies? currencies? This /ill start to develo" develo" .our a2ilit. to ,see at a glance/hen trades are are >orming? &t /ill 2e as 2oring as suc*ing suc*ing nails; 2ut do it >or at least a da. or so on as man. currencies as .ou can @ust >or the e:"erience o> learning the /a. "rice moves around the 0oving averages and Round Num2ers? $? Once .ou >eel com>orta2le com>orta2le /ith the Tester; start start trading it and set the slide 2ar to no more than $4 so "rice action is slo/ enough >or .ou to actuall. ma*e trades in the tester? tester? ee" /ith it until .ou are are starting to see some success in trading this strateg.? strateg.? Remem2er to move .our SL "rogressivel "rogressivel. . and to move the T( /a. out in >ront to let the trades run i> the. do dou2le clic* it to move itF? Other/ise .ou /ill 2e sto""ed sto""ed on man. trades trades at the T( and then see see it run o= /ithout .ou? When trading the simulator; simulator; don't 2other /ith tr.ing tr.ing to gure out the actual mar*et time >rames; @ust trade ever. signal .ou see and don't get >rustrated >rustrated or 2e hard on .oursel> .oursel>?? The W%OLE "oint o> o> this is to allo/ .our su2conscious to 2egin to ,see- the trades so .ou can understand ho/ the. start and ho/ to enter them "ro"erl.? 3? A>ter no more more than a >e/ da.s or even even 2etter; "erha"s "erha"s a >e/ /ee*s; /ee*s; .ou should 2e at a "oint /here .ou can ,see- the trades >orming 2e>ore .ou actuall. ta*e them? them? When that ha""ens; it's time time to start to move to a more ,live- >ormat on a Demo account? Demo trading itsel> itsel> isn't /orth /orth much unless .ou have alread. dened in advance; strict trading rules and had some e:"osure e:"osure to them so .ou can actuall. actuall. stic* to them? While Demo trading; trade e:clusivel. e:clusivel . the mar*et times the Rules Rules call >or? 8ou W&LL 2egin to see the trades 2etter; and .ou W&LL start to have some success; though it ma. still 2e a /hile 2e>ore .ou reach an. *ind o> consistenc. in .our trading; 2ut stic* /ith it? ? When .ou >eel com>or com>orta2le ta2le /ith /ith the live sessions sessions in the Demo Demo account; account; o"en a live account /ith a 2ro*er 2ro*er .ou >eel .ou might li*e? There are are several that are acce"ta2le acce"ta 2le li*e Al"ari; &79; Ava9; Ava9; 9C0; 9C0; 9DD and man. more? ust do a search and nd one one .ou thin* .ou can live /ith? Remem2er; Remem2er; no 2ro*er 2ro*er is reall. ,good,good- all o> them have their issues? (ersonall.; (ersonall.; & use &79? &79? ust
remem2er to NEMER de"osit more than a V#66?66 in an. account until .ou get reall.; reall. consistent consistent /ith this strateg.? strateg.? Then; let the account gro/ itsel> as .ou trade? There is nothing stronger stronger or more satis>.ing satis>.ing that going through that "rocess; and .ou W&LL e:"erience all the ,issues- and ,"s.chologicalchallenges as /ith a larger account; 2ut /ithout losing huge sums o> cash? 5? ENO8 ENO8 TRAD&NK TRAD&NK +++ Don't ever let it 2ecome a >rustration to .ou? RealiHe it's a challenge and something .ou .ou CAN and W&LL master over over time? &t /ill ta*e a /hile; so 2e "atient /ith .oursel> as /ell as /ith the trading?
It's A 9usiness!!! As /ith all things; it ta*es a 2it o> time to get good at trading; 2ut no/here near as much time as most /ill tell .ou? .ou? & have heard o> traders traders ta*ing >rom >rom t/o to ve .ears 2e>ore 2ecoming consistent at trading and some even longer? longer? &> .ou treat this as a 2usiness; not a game o> chance; then .ou can dramaticall. shorten the time needed? All 2usinesses rst o> all; have a 7usiness (lan? (lan? When & started trading; that "art m.stied me? & have 2een an entre"reneur entre"reneur >rom >rom the time & /as ver. .oung and had m. rst ,real- 2usiness; as the o/ner; 2. the time & /as $$? 7ut >or some reason; reason; & couldn't thin* o> trading that /a.; not at rst an./a.? an./a.? %o/ in the /orld do .ou .ou create a ,7usiness ,7usiness (lan(lan- >or tradingP The ans/er >ollo/s?
J-" 1IS IS A 9(SINESS So;;; Lesson one one is learn that this is a 2usiness? &t /ill reBuire reBuire some time and dedication dedica tion to ma*e .our ne/ 2usiness success>ul? DED&CATE T&0E to .our ne/ 2usiness? Decide on /hich session o> the mar*et mar*et and /hich currenc. currenc. .ou /ill 2e trading and stic* to it+ DO NOT C%ANKE .our time; the currenc. currenc. or the strateg.? strateg.? Stic* /ith it+ 0ost /ho lose; lose; lose 2ecause 2ecause the. /ill not ,stic* /ith it? um"ing around around a lot /ill *ill .our ne/ 2usiness? 2usiness? &> .our customers couldn't count on .our merchandise 2eing the same and o> high Bualit. and .ou 2eing at the same "lace to do 2usiness all the time; time; the. /ould soon sto" sto" sho""ing /ith .ou? 8O 8O are .our customer? customer? &> .ou @um" around; around; .ou lose an. chance at develo"ing a high Bualit. "roduct .our trading strateg. and st.leF and .ou have no "lace o> 2usiness? A 2ro*er is NOT .our "lace o> 2usiness; the 0ar*et is? #E/E/9E# 1A! 8ou 1A! 8ou ma. change .our ,/holesaler- or ,su""lier- >rom time to time to get 2etter "rices or rates; 2ut NEMER .our "roduct line trading strateg.F or .our "lace o> 2usiness? 9rom time to time; .ou ma. im"rove .our "roduct line ne tune .our strateg. to 8OR 8OR /a. o> using itF 2ut .ou still need to o=er the same same "roduct+ &> .ou started /ith clothing store; store; .ou /ould stic* to clothing? clothing? &> .ou start /ith a s"ecic s"ecic strateg.; stic* to it? ust loo* >or /a.s to use it 2etter; 2ut ST&C TO T%AT T%AT STRATEK8 STRATEK8 until .ou master it+ 8ou 8ou do not need lots o> time; time; 2ut .ou need consistently t%e same time ; @ust li*e a 2usiness? 2usiness ? 8ou need ,o"ening ,o"ening hours- and ,closing hours- >or .our ne/ 2usiness to succeed? With no ,o"ening ,o"ening hours- .ou /ill never ,learn,learn- .our "roduct line; /hich is the mar*et? mar*et? With no ,closing hourshours- .ou /ill get e:hausted e:hausted and give u"? &> .ou do not ta*e the time to learn it 2e>ore .ou @um" o= into the dee" end; it is
ver. li*el. .ou /ill /ill get discouraged and >ail? (ersonall.; (ersonall.; & 2elieve more traders traders >ail 2ecause o> discouragement than >rom lac* o> ca"ital; lac* o> training or an. other cause? The. sim"l. give u" deciding it's too too hard; the. don't have enough mone.; or /hatever other e:cuse to give u" 2ecause the. are discouraged; that the. can nd? &'m not slamming an.one /ho decides it's not >or them; @ust tr.ing to shed a little light? Ever. trader /ho has succeeded /ill tell .ou that that it can 2e a ver. lonel. 2usiness; and ver. discouraging; es"eciall. i> .ou are sitting at home /ith no one or ver. >e/ to encourage .ou in .our ne/ 2usiness? 9(SINESS *LAN J3" %O( NEED A 9(SINESS &n the Yi" le that is included this manual; manual; .ou /ill nd an E:cel E:cel le? This manual and that le contain the ,2usiness "lan"lan- & used /hen & started this @ourne.; a>ter a .ear o> researching researching and trading e:tremel. small accounts >or e:"erience? e:"erienc e? 8ou ma. use it or change it as .ou see see t? 7it /hatever .ou do; stic* stic* to a "lan; a strateg. and a /a. to gro/ the results? 0. 2usiness goal at rst /as to gain at least 56 "i"s each and ever. single da. & trade? & am still still stic*ing to that goal? ee" in mind; it does NOT reBuire reBuire that man. man. to 2e success>ul? &> .ou gain $6 "i"s "rot "er da.; and never ta*e an. mone. out o> the account; increasing .our trades the /a. the "lan calls >or; .ou can achieve success in less than a .ear? .ear? AND; though some /ill laugh at this; even ridicule the conce"t; .ou .ou can earn literall. a million mill ion the rst .ear .ou success>ull. trade /ith this strateg.? strateg.? Earning $6 "i"s "rot isn't that hard and shouldn't ta*e more than an hour or so each da.; &9 .ou trade at the right times; and /ith a good strateg.? 8ou 8ou also need to "lan on s"ending s"ending time trading ver.; ver. ver. small accounts &N L&ME TRADES; /ith real real mone.; 2e>ore .ou @um" o= into the dee" end o> this "ool; or it /ill 2e a ver. e:"ensive lesson indeed? Trading L&ME; REAL accounts is the 2est /a. to go? Demo accounts are are nice i> .ou are @ust tr.ing tr.ing out strategies and so on; 2ut i> .ou are read. to start .our ne/ 2usiness; use live accounts /ith real mone. and "lan on losing some >or a /hile? 0an. 2ro*ers 2ro*ers o=er small accounts? Al"ari; &79; Oanda and several others /ill allo/ .ou to trade /ith as little as #6 dollars? DON'T T%&N 9OR A SECOND this is *idd. stu=; trading tin. accounts? 8ou do it >or a /hile and .ou /ill e:"erience ALL o> the emotions and "s.chological things that go /ith trading and it /ill cost .ou ver. little? As o> the /riting o> this manual; & have 2lo/n out several accounts; and never lost l ost more than a total total o> V$66?66 trading in m. ne/ 2usiness during the entire entire time? &n m. "revious li>e /ith other 2usinesses; & did much the same; & tested the /aters /ith real "roducts; services; or /hat ever. the 2usiness reBuired; on as limited a 2asis as & could to ,get a >eel- >or the 2usiness; T%EN & @um"ed in and did reasona2l. /ell? 7. the /a.; this is a good area to e:"lain /h. & nall. chose trading 9ORE as m. 2usiness? Ever. time & gre/ gre/ a good 2usiness; there there al/a.s seemed seemed to 2e someone;
some/here in the right "lace at the /rong time to mess it all u" and destro. /hat & had 2uilt? &n Trading; Trading; NO ONE can do that 2ut ,me- or ,.ou- in .our case? Even a 2ad 2ro*er 2ro*er /ho steals .our mone. mone. can't *ill .our 2usiness? 2usiness? The. can cause .ou to lose lose some time; and ma*e .ou have to go to another 2ro*er; 2ro*er; 2ut .ou W&LL succeed i> .ou stic* to it and once .ou master it; NO ONE can ta*e it >rom .ou? The ne:t thing is immensel. immensel. im"ortant; tattoo tattoo it on .our 2rain; carve carve it in the /all 2ehind .our com"uter so .ou can see it and never >orget it?
J5" +OLLOW 1E #(LES O 1E LEE# AND DO NO >A#% +#O/ 1E/ !! The Rules /ill /ill hel" .ou avoid >ear and greed; greed; the t/o strongest strongest *illers in this industr.? industr.? This "air can reall. reall. get .ou messed u" "s.chologicall. "s.chologicall . and get .ou to the "oint o> /anting to Buit? The >unn. thing is that .ou .ou ma. not even thin* .ou are are 2eing greed. or >ear>ul; so let me give .ou an e:am"le? 9EAR When .ou trade; i> .ou hesitate in the slightest in e:ecuting; "ulling the trigger; an. indecision at all is >ear? >ear? The same thing a""lies to e:iting a trade 2e>ore 2e>ore the Rules tell .ou to? 7OT% o> these these >ear 2ased scenarios scenarios /ill *ill .our ne/ 2usiness 2e>ore 2e>ore .ou have a chance chance to even start start it? 7OT% /ill cost cost .ou "i"s? %esitating ma*es .ou miss o""ortunities AND WORST; it ma*es .ou dou2t the Rules; .our @udgment and decisions? T2AT is 5atal and and it is all >ear 2ased? As .our account gro/s; >ear /ill tr. to tell .ou that >or some reason; #6 o> V#66?66 is less stress>ul to lose lose than #6 o> V#;666?66 or #6 o> V#66;666?66? The truth is it is still still @ust #6 and nothing more? more? &t's all a matter o> "ers"ective "ers"ective and as .our account account gro/s; so should .our "ers"ective+ The "ro2lem is not not the "ercentage; "ercentage; it is .our >amiliarit. /ith the amounts amounts re"resented re"resented that o"ens a door door to >ear in .our trading? trading? & once had a 2oss /ho /ho told me m. main "ro2lem in sales /hat that & had never earned a si: gure income; 2ut once & did; it /ould 2ecome easier and easier to earn earn it and to learn to gro/ gro/ it? %e /as right? T%E SA0E A((L&ES A((L&ES TO TRAD&NK+ &> .ou listen to all the na.sa.ers telling .ou ho/ it ,can't 2e done;- their "oison /ill in>ect .ou /ith the same dou2ts dou2ts and limitations? Avoid them at all costs and nd "eo"le /ho can encourage .ou /ithout selling .ou their ,cra"- /a. o> doing things? There are are /a. more than than enough >ree >ree resources resources around to ma*e ma*e sure sure .ou get /here /here .ou /ant to 2e in .our trading? trading? ust DON'T K&ME K&ME (+ KREED Kreed is also e:tremel. e:tremel. innocuous innocuous in trading in its "resentation? "resentation? Loo*ing to get ,@ust one more "i""i"- is greed @ust as much as /anting to ro2 ro2 a 2an*? T%ERE &S NO D&99ERENCE; es"eciall. not /hen /hen .ou are trading? trading? %anging on to a losing trade trade too long is greed; and also "erha"s >ear? >ear? 9ear .ou /ill lose i> .ou e:it a 2ad trade; and greed that it /ill come 2ac* to .ou and .ou have to hang on to the trade? Kreed can ma*e .ou not ta*e that rst >e/ "i"s /hen the "rice movement hesitates
a tin. 2it too long? Kreed /ill sa. ,/ell; ,/ell; it's onl. 2een a >e/ seconds seconds longer than normal;- then it /ill sa.; ,hang on a 2it;; it's still going .our /a.?/a.?- Then it /ill sa.; ,2ut the trade /ill come 2ac* reall. reall. Buic*?- All those are 2ased 2ased on Kreed?
JK" AE %O(# *I*S NOW! At the ver. rst sign o> "rice hesitating too long; ta*e /hatever "i"s .ou have on one "osition; even i> it's onl. three "i"s+ TAE T%E0 and move to 7rea* Even on an. other "osition .ou have o"en on that currenc.? currenc.? Then sit 2ac* and /ait condent that .ou have made made a "rot? There /ill /ill 2e another trade along in a >e/ minutes and .ou can catch more "i"s then too? Don't 2e a>raid to "ull the trigger to enter; or to loc* in those rst >e/ "i"s; or too greed.; /anting more? TAE 8OR 8OR (&(S NOW+ ee" ee" in mind that the ,time e:"osuree:"osure- to the mar*et is at least as "o/er>ul a ris* as the "ercentage o> .our account .ou trade /ith on on each "osition? Shooting >or multi"le shorter; shorter; stronger stronger trades is an a/esome /a. to ,TAE 8OR (&(S NOW +++-
J." 7E O( NOW! Once .ou hit .our target target >or the trade; or get an e:it signal; signal; KET OT NOW+ NEMER /ait; @ust get out and ta*e .our "i"s? 8ou can al/a.s nd another trade; it ma. even 2e 2etter and give .ou more "i"s; 2ut remem2er the old sa.ing ,a 2ird in the hand is /orth t/o in the the 2ushP- &t's true;;; the "i"s .ou alread. have earned earned are the 2est "i"s .ou /ill ever have? TAE T%E0 NOW+ NOW+ &t is es"eciall. critical to >ollo/ the rules rules on this issue? &t reduces ris*; ris*; increases .our account; 2uilds .our condence and a hundred other good things? ,8ou ,8ou never go 2ro*e 2ro*e ta*ing a "rot"rot- is another old 2usiness ma:im? &t's also true? ,A Buic* nic*el is 2etter than a slo/ dime?- T%AT one is amaHingl. amaHing l. true? 0one. has a ver. denite time value and the more time .ou s"end /aiting to earn that ne:t "i"; is more time at ris*? &n >act; i> .ou are using using an account that increases increases .our trade ever. time .ou trade automaticall.; the smaller trades can 2uild u" amaHingl. Buic*l.? Buic*l.? &n addition; /aiting >or that ne:t "i" ma. cost .ou a 2etter trade that is currentl. currentl. onl. develo"ing on a di=erent currenc.+ currenc.+ Never 2e too greed. or to a>raid to ta*e .our "i"s NOW+
J" WAI *AIENL%!! ,(atience is a virtue?- This is the strongest lesson to learn in trading? 7E (A (AT&ENT in /aiting >or the right setu"s setu"s to ha""en? When the. sa. ,Let ,Let the mar*et mar*et come to .ou;- this is /hat the. mean; mea n; 7E (AT&ENT (AT&ENT?? 8ou can't "ush a river; shoot "ool /ith /i th a ro"e; >all u"stairs; or hurr. the mar*et? 0a*ing lots o> trades is the /rong a""roach a""roach in all situations? situations? Even in scal"ing; there there is a "er>ect setu" to loo* >or? >or? Ta*ing su2standard su2standa rd trades is an e:cruciating e:cruciatin g /a. to learn "atience and e:tremel. costl.? costl.? Remem2er; .ou are learning a 2usiness; not a cra" shoot or some sort o> gam2ling? Even in card games such as 7lac*@ac*; (o*er; (inochle; Rumm. and so on there are rules to live 2. and violating the rules means certain death o> the e=ort and
eventuall. the enter"rise? enter"rise? &t is the same same in the 2usiness 2usiness o> trading trading 9ORE? &> .ou ta*e ONL8 ONL8 the strong; i?e? ,"er>ect- trade setu"s; .our "ro2a2ilit. o> success is much greater and the "otential "rot o> the trades is also much higher? No/; i> .ou don't thin* that 2usiness has much to do /ith "ro2a2ilities; li*e 9ORE; let me enlighten .ou? NO ONE has a cr.stal cr.stal 2all on /hat "roduct; "roduct; or /hat advertising /ill gain a2solute success? There ARE strategies strategies that /or* much 2etter than others and 2ring lots o> success; 2ut it is still a ,game- o> "ro2a2ilities? When 7urger ing started; the. the. >ollo/ed a ver. sim"le strateg.? strateg.? 0cDonald's /as alread. e:tremel. e:tremel. success>ul and the lines o> those /aiting to 2e served /ere gro/ing? So; the man /ho >ounded 7urger ing thought o> a sim"le strateg.? strateg.? &t /as to 2uild a 2urger sho" across the street and count on the >act that 0cDonald's had alread. done the "ro"er research to 2e success>ul and then sim"l. /ait >or the overJo/ >or his ne/ restaurants? restaurants? &t /as a sim"l. 2rilliant "lan; and o2viousl. /or*ed? 9ORE is that sim"le? Trading the trend /or*s; using (rice (rice Action 2ars /or*s; using su""ort and resistance resistance /or*s? The 0ar*et 0ar*et ,2reathes- meaning that "rice rises and >alls 2ecause o> the com"eting traders in 2u.ing and selling "ositions? All o> that is alread. "roven "roven in the histor. o> trading; as /ell as the histor. o> 9ORE? All that is le>t le >t is to nd a S&0(LE method .ou can use to im"lement those ideas? The sim"ler to im"lement and ,see,see- and use; the more more "rota2le the method method or strateg. /ill 2e? Lastl.; no 2usiness model model is stagnant or static? static? Ever. 2usiness needs needs constant attention as customer needs and desires and "roduct su""l. and im"rovements as /ell as costs o> doing 2usiness 2usiness are in a constant constant state o> Ju:? &T &S NO D&99ERENT >rom 9ORE? With that in mind; ever.thing in this manual u" to this "oint is aimed at hel"ing .ou to understand that this is a 2usiness and .ou can master it and 2e /ildl. success>ul? AND it should NOT ta*e ta*e .ou .ears to get there? there? All it reall. ta*es ta*es is a decent; sim"le 2usiness "lan; li*e this one 2uilt on the strategies and methods "roven over decades to /or*? Ever.thing in this manual and the attached E:cel s"readsheet is .our 2usiness "lan? ee" it sim"le sim"le and stic* to it? All 2usiness o/ners need some time to learn learn to master their 2usiness? 2usiness? 9ortunatel.; 9ortunatel.; .ou can master this one in .our s"are s"are time; as long as .ou treat it li*e a 2usiness; set aside dedicated time >or trading at the same time ever. da. and stic* to the rules e:clusivel.? No/; let's learn to actuall. trade?
/aster the 9asics +irst This is one o> the most critical critical "arts o> an. 2usiness? 2usiness? The 2asics /ill ma*e ma*e or 2rea* .ou? The 2asics o> this strateg. have have 2een laid out clearl. in this manual? manual? 0ASTER T%E0 9&RST; 2e>ore 2e>ore .ou do an.thing else; 0ASTER 0ASTER T%E 7AS&CS? 0aster the
constrainment entries and 2ounces o= the 56 E0A 9&RST; and use the ,Round Num2ers- >or guidance on e:its or to sta. in a trade+ Constrainment entries entries are the a2solute 7EST there are in this strateg.? Loo* >or "rice 2eing constrained 2. one o> the E0As o> a conJuence o> E0As and Round Num2ers 2e>ore 2e>ore .ou start tr.ing to get >anc.? >anc.? There are enough o> them to allo/ .ou to ma*e tons o> "i"s? 0ASTER T%ESE 9&RST+ Trade Trade them relentlessl. relentlessl. in demo or in a ver.; ver.; ver. small live account until until the. 2ecome mind num2ingl. 2oring 2oring and com"letel. reJe:ive? reJe:ive? &n other /ords; /ords; ma*e it such a reJe: that /hen .ou see the good 2asic trade; .ou ta*e it /ithout a single thought? T%EN .ou can move to ma:imiHing .our trades?
/aster he rades! Once .ou have mastered the 7asic Rules and Entries and started to learn to ta*e 2etter and >e/er trades a 2it; it's time to start mastering the actual Trade itsel>? This is done 2. using 0one. 0one. 0anagement s*ills and managing ris* at the same same time? A lot has 2een said in man. areas o> minimiHing the ris*s; and lots o> tal* is a2out limiting ris* 2. the siHe o> the trade? trade? 0ost /ill tell .ou not to ris* ris* more than 3 3 on an. given trade? To me; this is more more o> a "ersonal thing than a hard and >ast rule? & *no/ o> traders /ho use 3; some /ho use $; some /ho use 5 and a >e/ /ho go much higher? higher? &t's all a2out .our "ersonal "ersonal condence; e:"erience e:"erience and a2ilities? To To 2e honest this "art "art is also amaHingl. sim"le; i> .ou .ou are /illing to stic* stic* to it? &t eluded me >or a long time; 2ut no/ & /onder ho/ & ever missed it? When & trade; & o>ten 2ut not al/a.sF use t/o "ositions "osition s in the same currenc.? currenc.? 7OT% o> them are a 3 to ris* /ith the e:act e:act same Sto" losses? losses? & use one to eliminate the ris* Buic*l. and loc* in "rots; and the other one to allo/ the trade to run and ma:imiHe "rots? Once & enter a trade; at the rst sign o> strong resistance or "rice action hesitation; & e:it or tighten u" m. Sto" Sto" Loss as close as "ossi2le /ithout /ithout ,cho*ing- the trade? & al/a.s move to 7E # as soon as & >eel it is "ossi2le /ithout cho*ing out the trade? That is as sim"le as trade trade 0anagement gets to me? No one has a cr.stal 2all to determine that even /ith all our e=orts and rules the mar*et /ill denitel. go our /a.? /a.? & have entered man. ,"er>ect- setu" trades onl. onl. to have (rice go m. /a. ) to #5 "i"s then hesitate and "lunge against me hard; leaving me /ith a loss /hen & had a "rot? 9or that reason reason o>ten & /ill move to loc* in "rots at the rst sign o> strong hesitation; /hich o>ten o>ten occurs at either ); #$; #5 or or #) "i"s? & am not sure sure the reason >or those gures and have no hard data to "rove them; 2ut those are the areas & have noticed in my trading? 8ou ma. notice other areas? 9eel >ree to learn to ,>eel- this "art "art o> the strateg. on .our .our o/n? &t is a2out .our "ersonal "ersonal ris* and condence a>ter all? &> a trades runs strong; & sim"l. trail the sto" as "reviousl. descri2ed?
8ou 8ou can ma*e ma*e this a lot more more com"licated; 2ut it's not necessar. necessar.?? Remem2er Remem2er the goal is to 2e consistent; consistent; not hugel. accurate? &> .ou consistentl. loc*ed loc*ed in onl. ) "i"s "er trade and made three trades a da.; .ou /ould still have a million dollars in a 2it over a .ear? DO NOT get greed. here++ here++ se this to mitigate ris* ris* and to ma:imiHe .our trading trading CONS&STENC8; CONS&STENC8; ma:imiHing "rots /ill /ill come /ith e:"erience? &t is more im"ortant im"ortant to 2e consistent than to ma*e huge gains each time?
/a,e It %ours! No/ comes the reall. >un "art? 0a*e it .ours+ This; all o> this to this "oint; /as to get .ou to /here .ou could 2e consistent and that is the ONL8 goal o> this manual? A sim"le /a. to ,see- and ta*e the trades /ith clear ,signals- to achieve consistenc.? Once .ou get here; here; the >un reall. 2egins? 2egins? No/ .ou can "la. /ith an.thing an.thing .ou /ant to; as long as .ou *ee" consistent /ith .our .our trading? Never Buit "rinting mone.? mone.? That's right; "rinting mone. mone.?? That's /hat trading trading is all a2out? Learning a strateg. to the "oint o> it 2oring .ou immensel.? immensel.? &> .ou are not 2ored; .ou have not 2ecome consistent consistent .et? Once .ou do; the dollar amounts amounts /on't 2other .ou? The num2er o> "i"s /on't im"ress im"ress .ou? What /ill im"ress im"ress .ou is the the >reedom >reedom that a good strong income 2rings? & remem2er the rst time & "aid cash >or m. car; m. daughter's car; m. girl>riend's car; her daughter's car and m. house? All o> it in the same "art o> the same .ear? .ear? What an amaHing sense o> o> >reedom+ T%AT T%AT is the goal o> trading; trading; not sho/ 2oating a2out the huge gains; 2ut the 2oring; stead.; consistent gro/th gro/th o> great /ealth? Once .ou start to 2ecome consistent; .ou /ill 2egin to ,see- and recogniHe good; solid "rice setu"s almost /ithout loo*ing to nd them? The goal o> all trading is to 2e a2le to sit do/n at a screen and *no/ in a >e/ moments /here in the ,schemeo> "rice action .ou are and i> .ou have a trade no/; or one 2eginning to setu"? 9rom there; .ou can modi>. this or an. other strateg. .ou /ant to to ma*e things e:citing; i> .ou need e:citement in .our trading; @ust remem2er *ee" one ver. large account a>ter .ou gro/ itF >rom /hich .ou harvest mone. >rom the mar*ets? Then 2e as e:cited as .ou /ant /ith much smaller accounts? Who *no/s; .ou might nd and "ro2a2l. /illF a strateg. that is 2etter than this one and /hich ts .our "ersonalit. "ersonalit. much 2etter? 2etter? Then .ou can reall. reall. 2egin to have >un trading? Kod 2less?
A +ew Lie E=am&les The >ollo/ing are e:am"les e:am"les o> real real entries? These are 2. no means e:haustive? e:haustive? There are are lots and lots o> good e:am"les on the 9ore:9 9ore:9actor. actor. thread thread titled; ,The Dance?- (lease visit that thread thread >or an. ne/ versions versions o> this strateg.'s strateg.'s manual; tools; "roles or tem"lates?
ouch rade o< the 5.$.4 lines: comments lines: comments on the charts
ouch rade o< the -4 E/A: comments on the images below
0ore trades
Ne=t Series o three: images
Ne=t Series: o three images
Once I e=ited8 the trade then ran on or another .4 &i&s"
Constrainment entries: The rst is a #6 E0A constrainment constrainment entr. the the second a 35 S0A S 0A entr. en tr.?? #6 E0A constrainment entr.
35 constrainment entr.
A +ine uning E=am&le:
There are are man.; man. more more on the 9ore:9 9ore:9actor. actor. >orum thread thread ,The Dance-? Ko en@o. it and trade /ell and sim"l.?
