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1 The Steinitz Fractal Breakout Indicator (SFBI) was developed by Don Steinitz through rigorous research since Its unique properties make it far more advanced than any other indicator available on the market today. The SFBI in conjunction with multiple filters makes this a complete custom indicator trading package. In this manual we will cover all aspects of using this tool. 1

2 Table of Contents 1.0 Installation instructions Install using zip file Loading software Installation of live account Installation Videos Indicator list Moving averages Input variables 5.3 Data Notification popup box 6.0 Signals Alert signal Trade only signals Failed trade signal SMA_Angle SMA_Angle Strength Meter Fibonacci Pivots Fibonacci Extensions Basic trading techniques Look for the Cross Over Alert Signal Confirmation Additional conformation Fine tuning method Take the trade Conformation More conformation Additional conformation 12.0 Reasons not to take the trade 13.0 Stop Loss Exits 14.0 Taking profits 14.1 Taking profits part

3 Steinitz Fractal Breakout Custom Indicator 1.0 Installation Instructions 1.1 Installing using the blue and red loading icon 1. Please save this loading program onto your desktop along with the owners manual. 2. Double click on the blue and red icon. Select next from welcome screen. 3. Read terms and conditions and when satisfied select I agree and then select next. 4. You ll see a file called the C:\Program Files. Click on the button to the right and you will see a list of folders. 1

4 5. Once Program Files are located then click on the + next to the Program Files folder. 6. Now scroll down until you find broker name MetaTrader 4 and click OK. (In this example we are using FXDD MetaTrader 4. Your broker name may be different) 7. Once selected it will take you to this screen where you click Next 2

5 8. After selecting the Programs file in the C: drive and choosing the proper folder for your brokers MetaTrader 4 folder it will ask you to confirm. Once confirmed click Start 9. Once install has been completed, you will get the successfully installed box. You may now click Exit 3

6 1.2 Install using zip file to load your software 1. Please save this zip loading program onto your desktop along with the owners manual. 2. Right-click and choose extract all. There are more than one ways of extracting files but this is the easiest method 3. Choose Next 4. Click on browse. 5. Click on the + next to my computer 6. Click on the + next to the local disk (C:) 7. Scroll down and click on the + next to program files 8. Scroll down until you find the broker name MetaTrader 4 folder 9. Click on the folder with your brokers name and click OK then Next 10. Remove the checkmark called show extracted files 11. Click Finish. You have now successfully loaded the software to your Meta Trader 4 charting platform. 4

7 2.0 Loading the Steinitz Fractal Breakout Custom Indicator 1. Open your MetaTrader 4 charting platform 2. Click on your Templates button 3. There are (4) Steinitz Fractal Templates to choose from. Choose one. 4. Each Template has different features. Features defined: Alert Arrows only: Arrows appear announcing a Potential Opportunity Trade Arrows only: Arrows appear announcing Active signal to execute Pivots: Shows daily levels of resistance and support Xmeter: Shows spectrum of strength of major currency pairs 5

8 3.0 INSTALLATION OF LIVE ACCOUNT 1. Save the hard coded version to your desktop. Next go to your MetaTrader4/experts/indicators folder and replace the demo custom indicator with the new one from your desktop. 2. Open up MetaTrader 4 and choose the Steinitz Fractal Breakout template. 3. Right click on your platform chart and chose the indicator list. 4. Left click on the custom indicator and choose Delete. Click Close when done 5. Now choose 1 of the 4 Steinitz templates. Next open your Navigator window and click on the + symbol next to the Custom Indicators. 6

9 6. Double click on the Steinitz Fractal Breakout Indicator _XX_v Replace account # with your live account number. Click Ok. 8. Go to the template drop down and choose Save Template. You can save on top of the same existing template if you wish. You will need to answer yes that you want to overwrite. You have now saved your live account number successfully. Repeat the same process for each of the three templates. You can now use the templates to start monitoring your trades on your live account platform. 7

10 4.0 Installation Videos Please click or copy and paste the links onto your browser address bar to watch the videos: Version 1.5 features & Installation Performance

11 5.0 Indicator list Moving Averages SMA 10, 21, 50 MA_Angle (16) Indicator MA_Angle (50) Indicator Fibonacci Pivots Strength Meter 5.1 Moving Averages SMA 10, 21, 50 SMA 10 = RED SMA 21 = BLUE SMA 50 = ORANGE What Does Simple Moving Average - SMA Mean? A simple, or arithmetic, moving average that is calculated by adding the closing price of the security for a number of time periods and then dividing this total by the number of time periods. Short-term averages respond quickly to changes in the price of the underlying, while long-term averages are slow to react. The moving averages are an important feature for choosing the precise entry. Red over Blue, Blue over Red, above or below the orange line will impact the accuracy of the signal. 5.2 Input Variables You can adjust your indicator as you like. Choose from displaying either the trade arrows or the alert arrows along with other functions. Simply right click on your chart and choose indicator list. Then click edit. You must save as a template if you wish to keep changes. 9

12 5.3 Distance and Angle There is a letter and a numerical value such as D:101. What this represents is what stop loss you can expect if the position were to go badly. This number represents the difference between the entry price and the 50 SMA in pips. So D:101 represent 101 pips as the distance between your entry and potential loss if the trade becomes unprofitable. You need to know this information in order to determine position size and proper risk management. The number next to this A: indicates the trend strength of the arrow candle. The greater the value, the greater the trend. Since there are multiple signals that can fire off at the same time for different currencies it's best to use the lowest risk which would be indicated by the smallest distance between the entry and the 50 SMA and the greater trend strength. 5.4 Alert Notification Popup While viewing your charts, a pop up box will appear with sound announcing a trade alert, currency pair, and time frame with time stamp of alert. You can also scroll through and view all alerts that occurred. 6.0 Alert and Trade signals Short/Sell = RED Long/Buy = GREEN The Steinitz Breakout Custom Indicator allows for two different signals, Alert Signal and the Trade Only Signal. The signals appear above and below the candle stick depending on the direction of the currency trend. 10

13 6.1 Alert Signal The Alert signal will appear above or below a candle stick once certain conditions are met. The Alert Signal would be considered a set up signal. Once an alert signal appears, it is letting you know that there may be an up coming opportunity to enter into a position. Many traders will use this template to allowing more time to confirm your entry. Alert means exactly what is says, alerting you to look for a possible entry. You will find that the alert signal will appear often, yet not all conditions will be ideal for entry. 6.2 Trade only Signal The Trade only signal will only appear once the exact conditions are met. This signal is saying to enter the trade as soon as you see the signal appear. Even though the Trade only signal has met proper conditions, there are other factors that must be considered prior to entry. We will cover the other factors involved before making the decision to enter. 6.3 Failed Trade Signal The failed trade signals will make an appearance of a frowning face when the trade is stopped out. The Green face appears for long stop out and Red Face for short stop out. 11

14 7.0 SMA_Angle 50 The SMA_Angle indicator is a visual representation of the SMA 50. The bars account for the value of the angle of the SMA. A trend is visualized when the value of the SMA is out of the range of -.25 to.25. Anything between -.25 and.25 would be considered to have no importance in terms of trend strength and yellow bars are painted. The value of.25 or greater will cause green bars to be formed while values of -.25 will cause red bars to be formed as show below. 7.1 SMA_Angle 16 This SMA_Angle indicator is a visual indicator that is used in conjunction with the SMA_Angle Strength Meter This tool can be used as a snapshot look at the strength of the currencies. Black bars are weakest while green represents strength. The more black bars the weaker, the more green the stronger. 12

15 9.0 Fibonacci Pivots A set of indicators developed by floor traders in the commodities markets to determine potential turning points, also known as "pivots". Forex pivot points are calculated to determine levels in which the sentiment of the market could change from "bullish" to "bearish." Currency traders see pivot points as markers of support and resistance Fibonacci Extensions Levels used similar to Fibonacci retracement to forecast areas of support or resistance. We are using retracements in reverse called Extensions. These levels consist of levels 100% Pink, 161.8% Orange, and 261.8% Red. Each of these levels are used to forecast take profit targets with extreme accuracy. If you want a thorough understanding of this extremely accurate indicator, we offer private one on one tutorials for /hr. We will cover everything that is needed for you to become profitable on your very first trade. Please click on the link to make a payment and set up your private session. 13

16 Steinitz Fractal Breakout Indicator Putting it all together. Now that the components of the SFBI have been explained, we will now explore and explain three techniques using this powerful tool. It is important to know that if you follow the rules and exercise restraint, you will make trades that are the most profitable. This indicator can be used anytime, however, when trading you should look for trading hours when major markets are open. Trading during open market hours allow for the greatest movement of price. You should also consider news events that may come out, because that may affect pricing and may cause increased volatility. When trading the SFBI, you can choose to trade any time frame. There are two types of traders, down hill skiers and fishermen. This system allows either one to become successful Basic Trading Techniques Time Frames Used 15 minute Time Frame 30 minute Confirmation time frame Microscope ( tuning ) time frame 5 minute This technique looks for trade or alert signals on the 15 min time frame. After a signal appears on the 15 min time frame, you will then confirm the signal by moving to the 30 min time frame looking for SMA angle colors that offer the best entry. In this example we are showing a short position on the EUR/USD. This works on all Pairs and works the same while going long. 14

17 11.1 Step 1 Look for the Cross Over This can be used with any time frame that you are trading. This example is based on trading the 15 min time frame. Go up one time frame to the 30 min time frame and look for a cross over of the SMA 10 with the SMA 50. Once the 10 crosses over then drop down to the 15 min time frame and look for fresh trade or alert signals Step 2 Alert Signals Look for Alert Arrows on the 15 min chart, once signal appears start confirmation process. 15

18 11.3 Step 3 Confirmation Go to 30 Min Chart if any of the below conditions exist (1-3) upper time frame has been confirmed and you can move to the next step. Look at the SMA angles 16 and Both 16 and 50 SMA s both agree (same color) SMA color agrees SMA color agrees 4. Both 16 and 50 SMA s don t agree (wrong color) = no trade 5. Both 16 and 50 SMA s are yellow = move up one higher time frame for conformation and look at 1 through 4 steps above. Choosing the best entry will ensure your trade will have the best opportunity to go in the direction you desire. There are other variations of looking at the SMA angle bars, however they are not be considered the best entry Step 4 Additional Conformation If you want more conformation in the trade you can go to the 1 Hour and the 4 Hour Chart and look to see if they agree to the 30 min time frame. 16

19 12.0 Step 5 Fine Tuning Method Go to the 5 min chart While on the 5 min chart you are looking at the following; RED SMA Blue SMA 12.1 Take the trade: If the RED SMA is below the BLUE SMA you may take the trade short. While looking at the SMA_Angles you can take the trade when both bars are Yellow Wait for more conformation if: The RED SMA is above the BLUE SMA NOTICE if we are going short with RED crossing BELOW the BLUE on the 5 minute chart AND the RED line is FAR ABOVE the ORANGE line, it MAY take some time for price to break through the support of the ORANGE line Wait for the conformation if: RED SMA is Flattening or Hinging against the trade while on the 5 min or 15 min chart indicating a potential retracement (usually accompanied by RED line about to CROSS to the WRONG side of the BLUE line on the 5 or 15 minute chart) 17

20 12.4 Additional Conformation If you are NOT SURE, go down to the 1 minute chart if the RED line is on the WRONG side of the BLUE line, WAIT for the RED to CROSS the BLUE in the right direction on the 1 minute chart and TAKE THE TRADE Reasons not to take the trade The red line crossed the Orange line many bars ago. Or the SMA 10 is Far away or has a great distance from the 50 SMA 14.0 Stop Loss Exit Two ways to exit (stop Loss) Exit full position (ALL 3 contracts) when you see a frowning face you will see a frowning face when you see two bars of the opposite color (RED for a LONG, GREEN for a SHORT) closing more than X pips (unique for each timeframe see inputs ) on the other side of the ORANGE line (50 SMA). Exit full position (ALL 3 contracts) when price hits your Stop Loss A Stop Loss that could be used is 1.5 X ATR (34) from your ENTRY (PLUS the SPREAD). (For example, if ATR (34) is 10, your stop loss is 15 pips ABOVE/BELOW your ENTRY) 18

21 15.0 Taking Profits Part 1 Exit 3 contracts one at a time or scale out Contract 1 Exit at Fib 1 Target Move stop to break even on other two contracts Contract 2 Exit at Fib 2 Target Contract 3 Exit at Fib 3 Target Or let it run with a 1.5 ATR trailing stop Taking Profits Part 2 Exit FULL Position when an OPPOSITE direction bar CLOSES on the WRONG side of the RED line as show with the yellow arrow pointing at the green candle stick. If you want a thorough understanding of this extremely accurate indicator, we offer private one on one tutorials for /hr. We will cover everything that is needed for you to become profitable on your very first trade. Please click on the link to make a payment and set up your private session. 19