WINNING PIPS SIGNALS INDICATOR MANUAL

Transcription

1 WINNING PIPS SIGNALS INDICATOR MANUAL Page 1

2 I want to share with you a powerful trading system that would help you bank enough pips weekly. If you follow this system religiously as I explain in this video; then be sure to be happy with yourself. The system I m about to reveal to you would help you in making money from any direction of the market. If you have any question to ask, you may send me an and I will be willing to respond to your questions. They key to success in forex trading is maximizing profit, with minimum risk. Every other thing is commentary. If you fail to understand this success key of forex trading then you may never reach your goal of financial independence through forex trading. Trading forex with high risk will get your trading account wiped out fast. So before entering any trade, I want you to have this at the back of your mind. It would go a long way in helping you trade profitably. The big question that may be running through your mind now is; How Do I Maximize profits, With Minimum Risk? The Answer is simple: Good Money Management + A Winning Trading System To me, money management comes first and it is the number one and most important factor to consider if you want to be a great trader. In fact, it is the hidden secret of success in forex trading. It s quite amazing that few people talk about it, yet it is the integral component that goes into the career of most successful forex trader. Few people consider money management before they enter a trade. Page 2

3 What then are the components of Good Money Management? Your Account Size Leverage Risk Reward Ratio Lot Size Stop Loss Etc These components should be carefully calculated and considered when placing a trade. Your ability to understand this concept would go a long way in helping you become a successful forex trader. You may refer to the money management section of the winning pips signals membership area for better explanation of these concepts. Why must I take money management serious? The Answer is. To always key your risk under control. The second factor to consider if you want to become a successful forex trader is to have a winning forex trading system. A system that would help you harvest pips from the forex market on steroid. A winning forex system makes you confident and helps you stay focused. Today, I will be sharing with you one of my highly profitable technical trading systems. I call this system, Winning Pips System. Now, let s get to the nitty gritty of this system. Page 3

4 Before we proceed to dissecting the system for proper understanding and going through the step by step rules let s first take some time to study each segment and strategy used for this system. The first segment we are going to study is how to use swing points to determine the direction of the trend. Swing points help us determine the overall direction of the trend. There is a popular slogan in forex trading and it is; the trend is your friend. What this simply means is that to make consistent profit in the market, always trade in the direction of the trend. Trend simple means, the direction the market is heading to at a specific period of time. The trend may be heading up or heading down. Knowing the direction of the trend would always put you at a safer side of the market. One problem that many budding trader are faced with is how to determine the true direction of the trend. Let me explain the problem clearly, at times, the direction of the trend on the daily time frame of your chart may be heading up while on a lower time frame like the 4 hrs or 1hr chart, it may be heading down. This problem may be confusing and if not well understood, can make a trader lose trade after trade. Take A Look At the picture below to understand what I m talking about. Page 4

5 The direction on the 4hr time frame is obviously down. Page 5

6 The Direction on the 1hr time frame is up. From the pictures above, you can obviously see conflicting trend directions. If you take a look at the second chart; that is the 1 hr chart you will see that the second chart is gradually conforming to the direction of the 4hr time frame. The big question in this case is. How then I can I determine the correct direction of the trend and trade along to make profit? The answer is simple: Look at successive swing points direction on a higher time frame and align it with the trend direction on a lower time frame and you are good to go. I m not going to leave it, let me go further to explain what I mean. Page 6

7 Swing points are potential areas where the market turn and move briefly. There are formed with three bars. Let take some example of swing points: There are two types of swing point: Swing high and swing low. A swing high is formed when a bar is preceded and succeeded by lower highs. The chart below explains better A swing Low is formed when a bar is preceded and succeeded by higher lows. The chart below explains better Page 7

8 A combination of these swing points on a high time frame helps us to determine the actual direction of the trend. Please note that we do not trade these swing points in isolation. When we spot two or three swing points pointing in the same direction, we are set to enter the market and harvest pips. Swing points are very powerful. They can also be traded on lower time frames. But for the sake of this course, we will be focusing our attention on the higher time frames. Identifying Trends Using Swing Points When a trend is taking place in a forex pair, price movement will start to form peaks and troughs on the chart that you can trade successfully. In an uptrend, price forms a series of higher highs and higher lows (i.e higher peaks and higher troughs). Page 8

9 In a down trend, price forms a series of lower highs and lower lows (i.e lower peaks and lower troughs). How To Apply Swing Points To Our Trading Page 9

10 A combination of two or more swing points in an uptrend form what we call Higher Highs (HH) and higher lows (HL). A combinations of two or more swing points in a down trend form what we call Lower Highs (LH) and Lower Lows (LL). So to identify up trend in the upper time frame, we will be looking for HH and HL. To identify down trend, we will be looking for LH and LL. I hope you understand this point? Good!!! Let s continue. We are going to be using the zig zag indicator to determine swing high and swing low without wasting time. Page 10

11 As you can see in the picture above, the swing points have been identified by the indicator thus making it easy for us to determine swing points on the higher time frame before proceeding to make our decision. Page 11

12 The second Segment of the winning forex system is the application of indicators to help us determine the direction of the trend on the next time frame. The forex winning system revolves round three powerful factors in forex and these factors must be put into consideration before executing a trade. The question that you may want to ask is that what are these factors and how powerful are they for me to actually implement them in my trading. The summary of it however is; this powerful system is based on the overall trend of the market, market moment and market turning points. These are the factors that every winning trader considers before making any trade decision. I urge you to also put that into consideration if you want to trade the forex market successfully. Market direction and momentum can never be overlooked if actually you want to follow the direction of the trend. All these factors were carefully noted when putting together the winning pips signals indicator. Step By Step Trading Rules Of The Winning Pips System I will be using Meta trader platform to explain this strategy systematically. This does not mean that the system can t be applied on other platforms. However if you are trading on a platform that does not support Mt4 indicators and templates, you can install metatrader on your computer for the sole purpose of generating signals that you can place on your broker platform. Page 12

13 The Winning pips Signals Indicator must have been sent to your by now. In the zipped folder sent to you, there are two files there. The winningpips.ex4 file and wps.dll file. To install, Copy winningpips.ex4 file to: C:\ Program Files \ (your Metatrader4 directory) \experts\indicators Copy the wps.dll file to: C:\ Program Files \ (your Metatrader4 directory) \experts\libraries Go the membership area and download the winningpipsignals.tpl file and add to the template folder of your meta trader platform. You will have to restart Metatrader4 if it was already running when you did this. After that, click on winningpipsignals indicator at custom indicators and it should load on your chart successfully. If you installed the indicator correctly, then everything should work fine. When you are done, your chart should look like this: Page 13

14 Now everything is ready so let s start trading! The Blue down arrow signifies a sell signal, while the red up arrow signifies a buy signal. Immediately this arrow appears, an alarm coupled with an alert would be shown on your screen showing you where to enter and when to exit your trade. This system works well for all currency pairs and all time frames. However, from experience and back testing, you would get excellent result from the 1 hour time frame or higher. Currency pairs that give favorable results are GBPUSD, EURUSD, AUDUSD and EURJPY. The Winning Pips trading system works wonders trading with the EURUSD and GBPUSD pairs. If you are disciplined enough, you may want to trade only the GBPUSD with this strategy. TRADING STEPS: Winning Pips Signals Entry Rules. Before you take any signals from the winning pips indicator, it s quite expedient that you check the 4h chart and look at the direction of the trned. Doing this would make you enter more winning signals and you will be able to bank many pips because you know the major direction of the market. Page 14

15 Rules for Buy Trade Go to the 4H chart and look out for the major direction of the trend. Make sure that two or more swing points are moving in the direction of the upward trend. Next go to the 1H chart and wait for a buy signal from the winning pips indicator. For a BUY signal, you will see the appearance of a RED arrow with exact price Entry, Stop Loss and Take profit Target. Page 15

16 As soon as you see a signal, place your entry. The winning pips signals indicator would give an Entry, Stop Loss and Take Profit alert. There are two ways of taking your profit. 1. Use the take profit suggestion from the winning pips signals indicator if you don t have time to wait in front of your chart. 2. Allow your trade to run and wait to see a counter signal. Page 16

17 Rules for Sell Trade Go to the 4H chart and look out for the major direction of the trend. Make sure that two or more swing points are moving in the direction of the downward trend. Next go to the 1H chart and wait for a SELL signal from the winning pips indicator. For a sell signal, you will see the appearance of a BLUE arrow with exact price Entry, Stop Loss and Take Profit target. Page 17

18 NB: Always avoid taking signals when market is ranging as this is not a good time to trade. Look at the picture below to understand what I m talking about. Page 18

19 As you can see from the picture above, that is a 4H chart (region painted in blue). You will notice that there is no defined direction. Now let s go to the 1H chart to fully understand this concept. Page 19

20 Since we can see from the 4H chart that market is not moving in a defined direction, that is, looking at the swing points on the 4H chart, market is neither up or down, that goes to show that, it s dangerous to trade and as such, we stay out of the market and wait until we see that price is moving in a defined direction before we place our entry. Page 20

21 Money Management o All Trades must be closed before major news releases. o The maximum percent of your account you should risk is 2%. If you are taking more than a pair while trading, make sure all of them round off to 2%. Some Important Note No system is perfect, so please expect a few losses sometimes. Page 21