Trading. focus. Helping you achieve your trading goals. Trading Tips

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1 TEHNICAL ANALYSIS... 2 Fall 2014 What Chart?... 3 Paper Trading... 4 Trading H E L P I N G F O R E X T R A D E R S A C H I E V E T H E I R G O A L S focus We exist to provide the finest charting system on the planet and to augment that with world class training, education and support. Helping you achieve your trading goals ATR s are back! Average True Ranges or ATR s are a measure of volatility in a currency pair. The higher the ATR the more volatility and the further it can move. We use a 14 day ATR so we take the highs and lows and Fundies out of the equation. Everyday we post the ATR for each pair as we are analyzing then in the NY session. If an ATR is 60 pips it means it COULD go 60 pips today but that could also be 30 down and 30 up. The higher the volatility usually the greater the spread. High ATR pairs are usually the exotics. The trade off for higher spreads is the potential for a pair to do it s ATR in a straight line as opposed to 50% one way and 50% the other. Since we trade only in the Wide Open Spaces (WOS) we look for pairs that are entering a WOS and the target is within its ATR. So a pair with a 50 pip ATR and is in a WOS that is 120 pips away is probably a 2 day trade! Trading Tips EXERCISE: Mark the.100 lines on a chart with a horizontal line. Do each chart up 800 pips and then down 800 pips ( i.e , , etc.). Now go back in time and see how many times the market stalled or used that number as a target or bounce point. You will now see why you don t trade into one unless you can move your stop to zero.

2 Getting the most from Technical Analysis Technical analysis is the cornerstone of Forex SMARTER INVESTING: Plan A or B? We need to identify where we are based on the big Boys charts the Day or 240 minute. and shows those waves pretty nicely. Heiken Aishi charts and waves We need to understand where we are in the structure of the market and so we use basic Elliott Wave theory to identify that. The RF or Royal Flush template has Heiken Aishi candles which block out all the noise of the erratic up and down moves of candles Be yourself; everyone else is already taken. Oscar Wilde Once you know where you are,it is now simply a matter of identifying the next move from where you currently are. We trade only the wide open spaces that we have identified that the big Boys will potentially make a move in. We are part of the FOL- LOW THROUGH not part of the Market Makers who make the market. Therefore once we have identified that opportunity, we must WAIT for it to happen. That can be boring. So how do you fill that time? PAPER TRADE! You are in front of your charts so use the time to work on your weakness. Don t see channels well go draw a hundred while you are waiting. Put an alert on your chart for the trade and then do the work. Most traders get bored and make a trade just to be making a trade. Don t do that-maximize your chart time by getting better at your weakness.

3 What chart are we trading? We then move to the 240 chart and mark the Trend here. We start on the Day chart and look for tops and bottoms and is there an identifiable trend on the day chart either up or down. This tells us where we are in the big picture and what the bias is on the long run. add the targets for that direction, confirming on the 60 minute that that is what the currency is trying to do TODAY! We then trade the trend of the 240 chart. You are never too old to It can be opnever go to the set another goal or to posite of the ten minute chart dream a new dream. day chart or until you are running with ready to trade it. C. S. Lewis the day chart. Either way, Below is the 240 the 240 chart trend inside the is where we find our direcday chart We can trade tion. Once that is known we both ways.

4 Is Paper Trading Really Worth All That Time? By: Andrew G. Haney Guest writer and Fast Track Trader and Award Winning Trader When an individual decides that one hungers to make an effort at trading in the Forex market many questions should enter that persons mind, but once the conclusion is made to trade in the Forex Market the trading questions initiate and there are a lot of them. One such question is, should I take all that time that it takes to paper trade; the precise answer is a categorical yes. Once you have made the decision to become a Forex trader, you have also made the decision to become an information collector, the more information you gather the more effective your trading will become. Many traders jump into the Forex headfirst thinking that there isn't much to it, all they require to do is place a trade and the money will start rolling in. Its human nature people are apprehensive to try something new, they want to get their feet wet not necessarily contemplating the consequences of their actions in the Forex. Yet still many people don't want take the time to learn how to trade, they just want to trade. The significance of market structure cannot be understated, and the best way to see a currency pair s structure is by going back into the past and paper trading. While studying a pair s structure there are many other distinctions you will learn about, its tendencies such as, how far does it retrace, or how far does it pullback after trending in one direction or the other. You will find out if the currency pair trends for long periods of time or has a tendency to trend briefly then move sideways or trade in a box. These tendencies are important in the Forex, because history tends to repeat itself and the past will assuredly dictate the future. In order to gather all of this data a trader must spend several hours then several more hours studying what a particular currency pair has as its predispositions. Commonly a currency pair will maintain similar tendencies, but it may take longer to achieve its targets, as any trader that has been trading for at least a year noticed recently with a big dip in all currency pairs ATRs or the Average True Range. This indicates that a trader s paper trading never ends, so if someone is going to develop into a successful trader, they must continually and consistently research their chosen pair and/or pairs in the past. When studying in the past there are several exercises that can be done, one is to pick a currency pair, go to the 10 minute chart and move forward candle by candle choosing whether you would be a buyer or seller in each area of the chart that is chosen. Another great exercise is to go to a 240 or 60 minute chart, then place Fibonacci Levels and HSIs then check for confluence, do this

5 Is Paper Trading Really Worth All That Time? By: Andrew G. Haney Guest writer and Fast Track Trader and Award Winning Trader exercise on both time frames. Also, place Fibonacci Levels on the 10, 60, and 240 charts and check for confluence there. There are many exercises that one can do going back into the past, such as studying patterns, such as how often does the EUR/JPY create bear flags, bottom line here is pick a pattern, pick a currency pair and study away. There is ONE key secret anyone can find by going back into the past, and it s not about trading all the time or every day, traders will see by going back into the past that some currencies will move up or down no more than 10 to 30 pips for days. Look into the past where a currency pair has broken a key area of support or resistance, look how many pips the pair moves after those areas are breached. Go in to the present and wait for support or resistance to be tested then broke, that is where traders will discover their money making trades, not trading or trying to trade frequently, figure out the structure, find the support and resistance areas and you ll find the right trade. The more time a trader spends in the past history of a chart, the more achievement that trader will have going forward. If a trader doesn t spend time studying what has transpired to the currency pairs in the past, it will become that much more challenging to become a successful trader. The morale to this story is if you don t spend time in the past paper trading you will be trying to learn how to trade with blinders on. Hopefully this brief article will help some traders become more successful in the Forex market.