The 2.44 Currency Strength Chart and the ForexGrail Trading System

Transcription

1 The 2.44 Currency Strength Chart and the ForexGrail Trading System Please scroll down the pages of this entire pdf book before asking for technical support. Every problem you may encounter is covered here and on the support webpage. The ForexGrail trading system begins just below the technical instructions.

2 The software needs data from the MT4 platform to operate. If you do not have an MT4 platform operating with its DDE data transfer enabled before launching the software chart, you will get several error messages as the program reports back to you that it is unable to get the data. (You only need a demo account in order to get data from MT4.) In order for the currency strength program to have data, you will need to have a copy of the MT4 platform running with the DDE enabled (In the MT4 platform, click tools, then options, and select enable DDE ) The software gets the data for the currency strength program. Check to make sure your firewall does not block communication with the Hundreds of brokers use MT4 from MetaQuotes. It is not important to have the MT4 broker be your live broker as well. You can operate several MT4 platforms from different brokers at the same time. I suggest a broker on the technical web support page/ TheMT4 source data feed DDE is turned off by default so you must go to tools and click on options and choose the server tab inside of MT4.. Launch the currency strength chart after enabling the DDE. I know you are probably excited to get going but keep reading before installing it.

3 After downloading the software, double click and the setup program will begin. Use the setup default directory C:\FX4Caster. When it is finished, the setup program should have placed an Icon on your desktop. Once the MT4 is running and the DDE enabled, double click on the Currency Strength Chart Icon and wait a few minutes for activation to complete. This is the currency strength meter. It s a unique way of seeing what currencies are doing individually. Un-checking the currencies you don t need will allow you to see just the pairs you are interested in. (see the help section) Click the currency box to turn display on or off. The ForexGrail will show you which currencies are trending over time by displaying weakness or strength in line form. You can adjust the snapshot timing from 1 second to 30 by right clicking anywhere in the chart. Just use the defaults at first. The chart will let you adjust the timeline and display the individual currencies one at a time or in combination. The currency strength software does not store the data longer than you need it. You must open the software and select the timing at least a half hour so the lines will fill. Your color changes and timing is saved when you close the program but not the history.

4 In order to trade the forex market correctly, determining the strength of an individual currency is vital. If you think in terms of individual strength and weakness, and apply it to a currency, you are thinking like a foreign exchange bank trader. Traders from other markets look at one instrument fixed to the US dollar. Forex charts measure the difference between two completely different entities.

5 Throughout the day all currencies are changing in value as perception, news, politics, and economics plays out in their respective countries. One currency may be going up in value due to a piece of great economic news, while another is losing its value from a political scandal indicating future uncertainty. This interplay is what we are seeing when looking at a forex chart. However, using only one chart tells us only part of the story.

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7 Your trading decision 1. Pick out a few currencies that are moving toward strength or weakness using the currency strength chart after the lines form for at least a half hour so you get a feel for how they are moving. Find one individual currency going higher and another going lower. Now, find another potential pair. I often use a pencil and paper to write down the various combinations I will look at in detail by bringing up the pair charts later. 2. Open one of the Forex pair charts that has the two individual currencies you have decided to look at from step one. Use the 5 minute pair chart. Do not use a bar or candle. Use a line mode only. This system relies on using lines to show price on pair chart.

8 3. Apply a 50 period simple moving average to the chart. Determine if the price line is about to cross over the 50 SMA or not. This 50 SMA is your potential entry spot. 4. Now make a 7 period simple moving average and apply it to the five minute chart. The 7 sma determines your potential exit spot Using the forex pair chart in line mode with a 50 and a 7 SMA, you will be able to spot potential entries and clearly see exits. Your exit is the same as a stop except you do not know ahead of time where that may be. Once the price line breaks through the 7 SMA, this is where you should exit any trades you may have on. I set a hard stop 50 to 100 pips away from my entry. This hard stop is only used for an emergency where you can t get out faster or something takes you away from watching your trade. Your exit for the trade will be the crossing of the price line and 7 SMA not the hard stop.

9 Forex Pair Chart: PRICE LINE ONLY. (No candles or bars) Use the line chart. No bars or candle views. When I talk about a crossing of lines, I am referring to the price line crossing the moving average line. Not the crossing of moving averages themselves. Sometimes, coincidentally, all three lines may cross. IMPORTANT The definition of scalping according to investopedia. A trading strategy that attempts to make many profits on small price changes. Traders who implement this strategy will place anywhere from 10 to a couple hundred trades in a single day in the belief that small moves in stock price are easier to catch than large ones. Read more:

10 If you are highly leveraged, do not use hourly charts! The swings from using hourly or daily charts are too big for leveraged traders. Those charts are for people trading small leverage with large amounts of money. If you are going to be using 100 to 1 with a tiny amount of money as margin, trading hourly can kill you off pretty quickly. A five minute chart gives you a clear view of several days activity and you are able to see potential swings much faster. 5 MINUTE PAIR CHART The five minute line chart should give you about two days view of the action. 50 SMA can show you potential entries (Simple moving average on close price) All forex pair charts have the ability to place simple moving averages. Later you may want to fine tune with other settings but for now, use the simple moving average close price line. 7 SMA can show you potential exit spots (Simple moving average on close price) The simple moving average smoothes out the price line so we can see average prices during the five-minute period

11 Various currency setups like these happen several times a day on various pairs. Not all crossings of the two SMA s have potential. You must confirm the strength meter readings with a currency on its way up and another on its way down. For example: If you see that the CHF and EUR are moving away from each other on the currency meter, open the corresponding currency pair chart from your broker and apply the 50 and 7 SMA to it. Not every currency will work every time. You must look for both conditions to line up before attempting to trade it. This isn t a race. Find a few potential strong and weak candidates. Keep your eye on them for an hour or so. You will begin to feel the various trends developing. Do not stare at charts. Just keep the charts going while you go about your business. When the conditions show themselves, you will be ready. Some days the setups are seen more often than others are. Most mornings in New York or the beginning of the European session, I usually see two or three potential trades on the common pairs. Evenings in North America, expect at least one good setup.

12 You must get used to observing all the various pairs for this to work. Do not just wait to see if one or two of your favorite pairs will work. It is important you select the correct pair of currencies for the trade. Sometimes result in more profit than others. What moves the Forex Market In this ebook, I will assume that everybody knows the basic terms in forex, such as pip and currency pairs. If not, you can refer to your brokers manual to get the mechanics or definitions. Also, I will place the burden of learning the MT4 or pair chart supplier on your own since there are too many variables and types of charts. The way I trade does not encourage using anything but a line and two simple moving averages combined with the currency meter. Any pair chart will work fine. TEST THIS SYSTEM OUT WITH DEMO MONEY ONLY. 1.. Use a 50 SMA and 7 SMA on a 5 minute line (Not candle or bar) chart. Two moving averages on a five-minute chart will give us potential entry and exit points. I suggest not messing around with the settings at this point. Do not try to reinvent the wheel. They work fine, so leave them alone until you have many hours under your belt.

13 The objective is to trade with your eyes forward, not backward. What the chart did prior to you opening a trade has no significance. The past is past. We are trading the future. The market will show you a variety of patterns in hindsight, but base your decision on what it is most likely to do in the minutes ahead. It doesn t matter where it has been or where it may be going tomorrow. Always keep the 50 and 7 SMA on a five minute chart as a rule for finding trend direction. Keep in mind that we are not talking about long term direction. Just intraday. ( One session lasting from 4 to 12 hours) You need consistency to succeed. I do not recommend using any kind of robot. We all know magic systems don t exist. You need to apply common sense and a little sprinkle of intelligence. If you don t have that, get out now! Predicting the future market direction of one world currency is enough of a task. Two is even harder. Using this simple system, I suggest you go with the flow instead of fighting it. We only need to know which currency is moving toward or away from a long term trend. It shouldn t matter which currencies you trade. Only that you see a clear trending direction developing over a variety of time charts. Instead of trying to pick the exact bottom or top, why not go with the trend. The five-minute chart with a simple line lets us know where we are and the conditions where the 50 and 7 cross price is really just following the general trend. Messing with one indicator after another brings nothing consistent into your day. You need habits. Good ones of course. When you can look at a chart and say to yourself, Hmm. I have seen this before. I know what to do. You will be on your way to making a living in this exciting industry. Jumping in and out on whims and instinct is disaster. The heart of the ForexGrail system is you. A trading system is only as good as the person or people following it. You make this work. Your brain. Your experience. Watch the currency meter for a few days. Get used to seeing trends develop.

14 All trading involves risk. You may lose several trades in a row so you need enough money to ride it out. No system is capable of 10 out of 10 wins consistently. It is you who will make any system work. Let s get back to the moving averages; Used on their own, two SMA s (simple moving averages) on a cross will give you a certain ratio of winners to losers according to what s going on in the market. The essential ingredient in this system is the currency strength chart but another important element is the use of a price line instead of candles. We are watching (with meter confirmation) for the cross of the price line and the SMA. The ForexGrail system specifies; 50 SMA for finding entry (when the price line crosses). Exit when the 7 SMA crosses with the price line. The fifty period simple moving average tells me the trend for my time period (intraday). It tells me the way the market is trending. (At least for the time period I am interested in) What I want from the fifty line is to know what the average price has been during fifty, five minute sessions. The trending direction. The 50 SMA below tells us at a glance what that spread has been doing. Wait until price line has crossed the fifty to enter a position in the same direction as the trend you see on that pair chart. I like to wait for at least 6 pips above or below just to make sure it s not a fake out.

15 Think of the moving average in terms of price, not position. See it in a different light by observing it without the price line at all. Do this on your charts. You are seeing the actual market direction without noise. Candles, bars,indicators, colors, are all noise. The reason I use 50 and 7 SMA s are the same reason I look at the five minute charts. I m used to them. They re comfortable. They re familiar and trades go fairly quickly. This is not scalping but it is intraday. Get comfortable with it. I have come to depend on the five minute chart as my way of seeing differences. Set your Forex Price Chart to price line mode.

16 All charts allow you to view price as a line instead of a bar or candle. The forex grail system requires lines to show price. By the time the two moving averages cross, the move is over. Those are lagging indicators so I don t want entry or exits based on crossing of the averages. It has to cross with price. With the currency meter confirming an entry, we get a jump on the other traders. I do not use bars or candles. I am only interested in the average of price. It filters noise and price peaks. It displays at a glance the true average direction a currency is going. Although this system is easy to follow, there are lots of demons like emotion and lack of patience that could get in the way. You must be strong. Make the determination now, that you will follow the trading system with the numbers I give you before trying to make changes. Do not make this any harder than it is. It does not matter what price charts or broker you use. Do not use bars or candles for this system. They will shake you out of a trade too early and cause you to make decisions on emotional triggers. When applying the ForexGrail system, use the price line. Just use a simple line and get used to seeing it. Keeping you focused on the line and it s impartially (pointing down or pointing up) will let you make better trading decisions. Enter 6 pips after the crossing of the 50 SMA and price. The 50 SMA with the correlation of the currency strength chart with price will show direction and the 7 will be marking an exit. The picture below shows my entry after meter confirmations on the morning I am writing this.

17 THESE SETUPS OCCUR ALL THE TIME WITH VARIOUS CURRENCY PAIRS. I have often said that the candle was a conspiracy to keep beginners from seeing true market action. They sometimes turn green too early and red too late. Almost like someone is programming them.. Hmmm. These fancy things just clutter up what you are seeing. (I know it will be like weaning a heroin addict to get you to toss them, but you must not use candles or bars for this system to work properly.) Keep this as simple as possible in the beginning. Make yourself stick to the rules. The mechanics of making trades is something you will have to wade through on your own using your brokers manual. Each platform is different but they all follow the same routines. There system works with. It works with all brokers. You need to contact your broker platform help section, not me. You need to get used to making trades with your platform in demo or simulator mode. Absolutely, positively, do not start using real money until you have proven to yourself that the system works and you have clearly assessed and discussed the risks involved.

18 Basics first. We are trading the difference in price between currencies. Charts extract the difference in price between two separate and quite distinct currencies and then display the result. The currency meter on the other hand, displays the result of an interaction between all currency pairs. The line going up on a forex pair chart means a rising price for the currency that has first position in the pair. EURUSD line up means EURO getting stronger when compared to the US dollar. The EUR is the base currency and the USD is the counter currency. The line going up on USDCAD, means the US dollar is strengthening against the Canadian Loonie. The USD is the base. The line going up on the GBPUSD means the pound is getting stronger. In return the USD is weakening. We are buying strength or selling weakness of individual currencies, not pairs. Pro s talk about individual currencies since they understand each is an entity of its own. There are countries and economics behind each one. Drill it into your head to think in terms of individual currencies. The Chart is perfect for reinforcing the idea that each currency has unique characteristics depending on factors at home and abroad. Strength and weakness is tied to price. Price should reflect absolute strength or weakness. The US dollar is gaining strength. This means the line on the EURUSD chart is going down. The EURO is gaining strength This means the line is going up on the EURUSD chart. But there is a crucial element involved in the ForexGrail trading system. In the first statement where I said the US dollar is gaining strength when the line goes down, I could have said that the Euro is losing strength. Both are correct. For all I know by watching one chart,

19 the US could be weak or it could be strong or the Euro is weaker. I don t even know if either currency is doing anything at all without looking at other currencies that may be going strong and weak while pulling this pair along. When you give currency trading some thought, you have to admit to yourself that in essence, the entire market symbolizes strength and weakness. The ForexGrail system understands what makes currencies work. The Foreign Exchange market trends. Trending among currencies is a characteristic acknowledged by all foreign exchange experts. All currencies trend at different times. The tendency to trend is the basis of the ForexGrail trading system. Other trading systems ask you to find the bottom or top. That s a suckers game. This is the way the market works. Little players at a hundred to one odds are the only market participants silly enough to guess at tops and bottoms. Don t play the suckers game! Just follow the ForexGrail system. Don t try to outsmart the market makers. BE CONTENT WITH TAKING A SMALL BITE OF AN EXCELLENT TREND. If you are using a small account with a broker, this is your survival tip of the day: You must enter the market with a steady trend that the market maker must follow. Make your entry following the trend of the real currency market, the same one the broker must follow or lose clients. The idea behind the ForexGrail system is to get in the habit of making a trade with the trend, not the wave within the trend. The true trend. If you follow the rules correctly, there will be times the market seems to be going against you when in fact, it didn t. You got caught on part of a wave. Do not pick a volatile time to enter. Do not make the mistake of confusing your chart price with what your broker has posted in the window of the platform. Charts and platform prices often differ. Make sure to look at the prices on your trading platform before making a market order trade.

20 It would be a ring toss trading with just two simple averages. More is needed. Let s dissect what the moving averages tell us before going on. The two moving averages tell us where to enter and where to exit trades based on a simple idea. The tool tells you what all the other currencies are doing in relation to others. The pictures show the currency meter displaying what the average strengths and weaknesses are for various currencies during that instant. Although this display is crude in comparison to what investment houses use, it serves our purpose. Remember, you can get fancy later, just follow the simple system first. The ForexGrail system uses the currency meter to identify potential candidates for each side of a trade. It will alert you to the pairs you should be looking at in more detail. You can alternatively look at all the pair charts if you have multiple monitors. The currency meter measures all the ticks coming into it from a Forex broker and sorts out the strong from the weak.

21 Since it uses tick-by-tick calculations, it has to be viewed for a while before seeing the trends clearly. The system will require you to watch the trends as they develop for at least an hour after the European, Asia, or new York openings to make sure of a direction to hop onto. It is precisely the tool you need in order to determine when the time is right for making a trade. The ForexGrail system, takes the work out of looking at more than twelve charts to see which currencies are weak and strong. You will need to bring up the individual charts for your currency pair choice and fine tune things. Let s begin a typical trade session. Remember I told you about the ring toss using just two simple moving averages on their own? They can t do much more than tell us during any particular moment in time, what trends seems to be developing among the common Forex pairs. Once we are able to choose which pairs to keep our eyes on. Here is how I find the best currencies to trade; You must take all emotion out of your selection of a currency. Our objective as forex traders is to extract the maximum profit from a deviation between two currencies. We trade the spread. It shouldn t matter what currency you use to make money. Sticking with a particular pair or choosing one currency over another based on familiarity is dangerous. Keep your emotional attachment to a particular currency for shopping. Let s get on to finding a pair to trade. Wanting to know how your chosen currencies are doing in their interaction with other currency pairs prior to opening a trade is just plain common sense isn t it? In the ForexGrail system, you must trade the currencies that are moving away, or apart from each other at a fast rate. This means your first objective is to find one currency that is trending towards strength, and match it with a currency that is trending towards weakness.

22 Makes sense eh? We make our money on spread. The difference in price between currencies. Look at the meter and pick a currency that seems to be gaining or losing momentum as a faster rate than the others. If it is early in the euro session, you will most like see the EURO and GBP moving a little faster than the others. New York trading session will usually move the US dollar around faster than the others. If you are trading any of the time periods; (Europe, Asia or New York), watch which ones are most active and consistent for an hour after the opening. You can do this by looking at a wide range of charts if you happen to have several monitors or want to take the time to calculate how each of the currencies involved interact with your selections. Take a look at this picture. It shows the heart of the ForexGrail system. It is just a simple tool, but it pulls everything together. It takes the work out of watching multiple screens to find strength and weakness.

23 The currency strength meter is simple in operation. It looks at all pairs and uses various weighting calculations to find out how, relative to the others, a particular currency is doing. It measures individual currency strengths by making comparisons with how that currency interacts with others. Strength or weakness is not clear using one chart. In order for you to figure out if the currency is strong, you have to open other charts and see if it shows strength against other currencies. The currency meter tells you at a glance which currencies are moving and which charts you should open to take a look. The meter takes a free data feed from a typical interbank broker and shows us in real time which currency is most active. It moves all the time the market is moving. Sometimes very fast, and other times quite slowly. The meter allows us to narrow down a pair of currencies to trade.

24 I need a lot of pair charts to keep my eyes on so I settle with observing one or two that contain a strengthening currency and a weakening one. Many brokers have various pairs available to trade. The quantity of pairs can be a factor in your broker selection. You should always try to find one pair containing both currencies. In this limited example I will select the CADJPY from my pair selection with Oanda. CADJPY

25 The meter and the trading broker can be different. We only need a data feed (DDE) that gives us currencies on the move. Since we only want to be alerted to a strengthening currency, the individual trading price variations among brokers don t matter. The currency meter works with all brokers. It uses a Metatrader DDE which is supplied free by more than a dozen brokers. Lets apply a 50 and 7 SMA to this chart of the CADJPY and see what s happening. This will be my first chart open after seeing the numbers on the meter. Before I do anything, I will want to have a look at the Oanda CADJPY to determine if it is a candidate for my pair. First glance tells me the trend is definitely in place but the trigger happened a few hours ago.

26 It s obvious that the Yen has been strengthening against the weaker Canadian dollar for several hours. In the picture, the blue line is my 7 and the pink is 50 sma. It doesn t look like the 50 and 7 will be close to each other for some time so I will look at my next candidate since this potential trade could be exhausted. I am looking for a small piece of momentum in spread just after it starts and before its exhausted. Do not jump every time you see red and blue. These should alert you to a developing trend only. They could change. You must watch what the currencies are doing for a time to get a fix on their true strength or weakness. You are looking at the meter to provide you with some clues and save time watching all the pairs. How will you know if the strength is developing or the weakness is real? Aha. Look at the 7 and 50 moving average as guides. The fifty (50) SMA will show true trend and the seven (7) SMA shows where things have begun to turn. I always want to make a long after a cross of the 7 if the 50 SMA is up, and a short if it s below the 50 SMA.

27 I use the 7 period SMA as an exit guide. It tells me that the market has begun to show signs of turning. Time to get out. I like the one hour view of the 50 SMA to be sure of the long term trend. Going back to the 5 minute view and the general trend on other currencies, I can time my entry on the upward or downward, crossing of the 50SMA. I am simplifying this example because it doesn t show the meter which would be indicating this pair as my best choice and I would have spent some time observing and checking into any upcoming economic reports affecting the trade I may be in. I am not looking to get in as soon as the trend becomes directional. You will find that many times it isn t possible or preferable to get in on the first part of a trend. Waiting and biting your nails if necessary, until the exact moment and taking a little bite of the apple is the way to consistently make profits.

28 Give your trade some time to work. Do not set ten or fifteen pip stops. My hard stops would be more than most people are comfortable with (50-100) but make yours at least three times the amount you are going to use for a mental stop. This system has an exit ( stop) using the price line and 7 period moving average. It takes a bit of ups and down for the trade to work. Take a safe piece of the move. A broker makes money on filling orders. A stop is an order. You already lost the spread getting into the trade, getting out means you only need the market to move a couple of pips and you are out and paying another spread. I am always looking for the beginning of a trend. I am always watching for the ones that have already begun for the morning or session. Sometimes the lights turning red and blue on the meter during the beginning of my trading day may be showing peaks and not trends. I want to see steadily rising numbers for my strong choice. High numbers are not what I want to see. I want to see a climbing number or declining number. Just picking the highest number isn t the idea. You want to watch the trends developing and moving towards weakness or strength, You are trading the spread between currencies. This means you want to see as great a difference between two currencies as possible at an increasing rate of change. That s the profit. Don t get attached to one pair. Sure, if the signals are there fine, but look around. Experiment with how many pips you can get with other pairs and how much that translates to in your home currency.

29 I want in well before the 7 begins turning around. The best way is to watch it for a while. Try shutting off your price line and noise to clearly see what the seven sma is telling you. The 50 SMA shows direction of trade (long or short) and seven when to exit. (Based on your determination of best currencies according to the meter) I m saying that because you can t just pick any favorite for this to work correctly. Once you have identified the potential candidates for your trade, you need to get into the market as soon as possible or your increasing spread between the currencies begins to slow down. Your personal risk factor is the only thing that will determine how much money you make. The ForexGrail system can be used in any time period and under most market conditions..even economic reports. It is you who will have to see the trend beginning and take advantage of it by selecting a good counter currency. It s not hard to do using a few simple instructions.

30 To summarize; You need the currency meter in combination with the two SMA s. On the next page, let s finish this trade. The 7 is being hit and it is time to exit.

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32 Risk I consider what I do the equivalent of driving a car. Sure, there is risk. But I am in complete control of the decisions I make concerning my trading money just as I am in choosing where and how to drive safely. This is what separates it from gambling. Watching charts and trading forex is not my lifestyle. I use it to provide me with a lifestyle. I pick a time when the market is most likely to make a move, and I do some planning ahead of time to get a little piece of it. The mechanics of making trades is something you will have to wade through on your own using your brokers manual. Each platform is different but they all follow the same routines. I usually make market orders with a huge stop limit and possible take profit targets. A stop is just an order. Keep that in mind. We are trading currencies folks. We try to extract the difference between separate and quite distinct currencies. Spread trading the forex market is something people tend to keep quiet about since their methods and techniques usually involve some indicator carried over from the other markets where there was no spread against another quite different entity. Standard charts go up and down; up means good and down means bad. In forex, we can trade both up and down. Currency is not determined by emotions the way much smaller markets like stocks and indices. Most commodities are ruled by the speculators desires and fears. Not foreign exchange. Central banks and professionals determine the price relationship of a currency. What we see on our forex platforms is a contrived market. There is no single central authority for foreign exchange prices. Professionals and specialists determine the value of a country s currency. We have nothing to do with it. We can only hope to find an opportunity or an edge by understanding how these folks determine a currency value, which is translated into a price. We only have to find an opportunity.

33 Understanding that we buy strength or sell weakness of an individual currency, not pair, is vital if you hope to become successful and last trading this type of market. One more repeat. How to use the Currency meter effectively. The simple moving averages will give you a good idea of when to enter or exit. However, on their own they will not produce a high percentage of winners. You need the currency meter to tie things together. 1..The 50 shows potential entry when price crosses the line. Trade is in the direction of overall trend. Before entering, make sure the trend meter has been showing a steadily increasing (Stronger) or decreasing (Weaker) value. 2..The 7SMA basically tells us when the move is exhausted and has began to turn around. When the price line touches or comes very close to the 7 line, it s time to get out and reassess the market. 3..The currency strength meter shows what is weakening, and what is strengthening. The ForexGrail system of trading will work well for anyone who follows the rules. Don t change them until you have a good feel for the system.

34 Do not trade with real money until you have proven to yourself that it will work for you. Once you have things down pat, you can alter a few of the parameters and get fancy. Sit down and make a clear plan of action using the meter and grail system of entry and exits. Make yourself do it on a demo first. Apply a money management system that works for your personal situation and apply the rules diligently. It won t take long. You will begin to see how to make money in forex the first week. Always keep leverage low and give each trade time to work for you. Do not bail out too fast. All good trades move up and down. This is normal. Expect to stay in the market a while depending on the time of day. Notes: Don t just jump in right away. Watch for the steady progression of the numbers on the meter. They will change all the time but still show you strength and weakness. Be careful of upcoming economic announcements. Most economic reports will not move the market out of its prevailing trend unless there is a very big surprise. Years ago, the market would spike frequently on these reports but they rarely do now. The big ones to look out for and you are advised to take your profit and wait them out are reports like Nonfarm payrolls. Big reports can still shake things up. I wish you the very best life has to offer. Tom Yeomans The simple, yet powerful meaning behind this easy to follow system is the use of two simple indicators along with a powerful tool to make you win consistently. Of course, not all your trades will be perfect. However, using the ForexGrail system of entry and exit along with a little common sense, will result in a much higher percentage of winners than you have been experiencing. Everyone should follow good money management principles and never risk more than you can afford to lose. Start with a low leverage trading account and gradually increase the size of your trades.

35 Start your MT4 platform with DDE enabled. Please make sure to read everything before ing me for support. Common Questions FAQ How much can you make with ForexGrail? That's a common question. You can make as much as the market will give you under the circumstances of the day. Any professional will tell you that the market will give what it gives as often as it feels like. Everyone is different. All trades are usually unique. If they weren't we would know we were going to win or lose would we? It s our unique collection of skills that will determine what you will make trading. Some people begin with a little money and others have a lot. You have to get the silly notion of making huge amounts of money in Forex when starting out. Its probably not going to happen. The people I know who methodically took the time to develop a good system and ran it several months proving a profit each time ended up staying in the game for years with me. They found a system, applied good money management, and didn't jump the gun whenever the market moved a bit. If you follow a demo system for a few months with good results, you should be able to carry it out live with approximately the same win/loss ratio. Take your time. This is a tough business that can pay off well. If you don't run before you learn to walk. Take conservative trades and never play with scared money. How often do the setups work?

36 I can usually see at least two setups a morning. I have often seen a few more at different times of the day on various currencies. I have no way of knowing what's going to be happening. All I can say is that when the correct conditions make themselves apparent, I will be waiting, This is a waiting game folks. You wait for the right conditions or you don't make a trade. Stick to that, and you'll be fine. The idea here is to adopt a system and stick to it. Sit down and write out your rules for entry and exit. You do it for yourself. You will find that just about any good system will work if people only stuck to it. The ForexGrail is a good system. It becomes an excellent system with the meter added to it. Everyone will begin modifying and changing after a while. That's fine. As long as you do not trade with real money until you have perfected a system that works on paper trading. If you can't make it work on paper, you don't stand much of a chance with real money. If you don't have discipline, nothing, even the ForexGrail won t work for you. The default directory created when you installed the program is called FX4CASTER. The install file location is at: C:\FX4CASTER\ TERMS OF USE THIS MATERIAL MAY NOT BE COPIED AND DISTRIBUTED WITHOUT THE EXPRESS WRITTEN PERMISSION OF ITS PUBLISHER. ForexGrail.com. All Rights Reserved.

37 No part of this e-book may be reproduced in any form or by any means electronic or mechanical, including photocopying, recording or by any storage and retrieval system, without express written permission from its publisher. The ForexGrail System may not be gifted or resold to anyone, under any circumstances. Only direct customers of ForexGrail are allowed to view or be in possession of this material. If you have purchased The ForexGrail System from anyone other than ForexGrail, or someone officially authorized by them as a vendor, the seller is in violation of terms that they have agreed to and you are in possession of an unauthorized, illegal copy. If you believe that you have obtained an unauthorized, illegal copy, or know of someone who has, please contact: [email protected] RISK DISCLOSURE STATEMENT/DISCLAIMER AGREEMENT The information contained on our website and The ForexGrail Trading System e-book is compiled for the convenience of the site s visitors and customers of ForexGrail, and is furnished without responsibility for its accuracy. Trading any financial market involves risk. We at ForexGrail are not financial analysts or advisors. Before using any of the information in this e-book we recommend you seek independent professional legal, tax and investment advice as to whether the information provided is suitable for your particular circumstances. Failure to seek professional personal advice prior to acting on this information could lead to you acting contrary to your best interests and could lead to the loss of your capital. The information provided is meant to be a guide only and it must be tempered with the investment experience and independent decision making processes of the individual reader. Only risk capital should be used. By visiting the ForexGrail website and/or downloading the e-book you agree to hold harmless ForexGrail and its agents for any loss, financial or otherwise resulting directly or indirectly from this website and/or e-book, its data, content or lack thereof, materials associated web pages whether accurate and timely or not.

38 This e-book and ForexGrail s website and its contents are neither a solicitation for an offer to Buy/Sell any financial market. The contents of this e-book are for general information purposes only. Although every attempt has been made to assure accuracy, we do not give any express or implied warranty as to its accuracy. We do not accept any liability for error or omission. Examples are provided for illustrative purposes only and should not be construed as investment advice or strategy. If hypothetical or simulated performance results are used, these have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not actually been executed, the results may have been under-or overcompensated for impact. No representation is being made that any account will or is likely to achieve the profits or losses similar to any examples shown. Past performance is not indicative of future results. By visiting this website and/or purchasing this e-book you will be deemed to have accepted these terms in full. ForexGrail and its representatives do not and can not give investment advice or invite customers to engage in investments through this e-book. The information provided in this e-book is not intended for distribution to, or use by any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation or which would subject us to any registration requirement within such jurisdiction or country. Hypothetical performance results have many inherent limitations, some of which are mentioned below. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. In fact, there are frequently sharp differences between hypothetical performance results and actual results subsequently achieved by any particular trading program. One of the limitations of hypothetical performance results is that they are generally prepared with benefit of hindsight. In addition, hypothetical trading does not involve financial risk and no hypothetical trading record can completely account for the impact of financial risk in actual trading. For example the ability to withstand losses or adhere to a particular trading program in spite of the trading losses are material points, which can also adversely affect trading results. There are numerous other factors related to the market in general or to the implementation of any specific trading

39 program, which cannot be fully accounted for in the preparation of hypothetical performance results. All of which can adversely affect actual trading results Here is the web page support