Discipline that bring success

"Discipline to stay to the rules and the plan that bring success. Otherwise we trade emotionally"
Phillip Nel.

Success Formula

"I've learned (the hard way) that...
the success formula looks something like:
Quality Input + Hard Work + Discipline + Some Originality = Success in trading

if you're just starting out, be aware that no matter how much you learn from other people, no one will be able to do the hard work for you, especially in the key areas of trading psychology and discipline."
(bluemeasure, 16 years experienced Trader)

Are stops as effective as we think?

This is a controversial topic but what I want to do in this video is present another point of view behind the real value of a stop loss. Although it is conventional wisdom to use stop losses as essentially an exit order, it can add significant disadvantages to your trading. These include smaller winners, larger trading volume and transaction costs and disadvantageous exits. Risk control is critical but every trader should understand the costs and benefits of all the tools available to them not just one suboptimal option.

To see the video, click here: http://www.pfxglobal.com/index.php?o...297&Itemid=117

Article Source:
http://www.forexfactory.com/news.php?do=news&id=57269#post1727335
(Analysis by Profiting With Forex (PFX))

Pivot Points 14/11/07

Currency Pairs:

1) eurusd :

• R3 = 1.4704
• R2 = 1.4660
• R1 = 1.4633
• P.P = 1.4589
• S1 = 1.4545
• S2 = 1.4518
• S3 = 1.4474

2) gbpusd

• R3 = 2.0919
• R2 = 2.0825
• R1 = 2.0767
• P.P = 2.0674
• S1 = 2.0580
• S2 = 2.0522
• S3 = 2.0429

3) gbpjpy

• R3 = 233.71
• R2 = 231.66
• R1 = 230.40
• P.P = 228.36
• S1 = 226.31
• S2 = 225.05
• S3 = 223.01

How to Trade with Pivot Points

Breakout Trades

The pivot point should be the first place you look at to enter a trade, since it is the primary support/resistance level. The biggest price movements usually occur at the price of the pivot point.

Only when price reaches the pivot point will you be able to determine whether to go long or short, and set your profit targets and stops. Generally, if prices are above the pivot it’s considered bullish, and if they are below it’s considered bearish.

Let’s say the price is hovering around the pivot point and closes below it so you decide to go short. Your stop loss would be above PP and your initial profit target would be at S1.

However, if you see prices continue to fall below S1, instead of cashing out at S1, you can move your existing stop-loss order just above S1 and watch carefully. Typically, S2 will be the expected lowest point of the trading day and should be your ultimate profit objective.

The converse applies during an uptrend. If price closed above PP, you would enter a long position, set a stop loss below PP and use the R1 and R2 levels as your profit objectives.

Range-bound Trades

The strength of support and resistance at the different pivot levels is determined by the number of times the price bounces off the pivot level.

The more times a currency pair touches a pivot level then reverses, the stronger the level is. Pivoting simply means reaching a support or resistance level and then reversing. Hence, the word “pivot”.

If the pair is nearing an upper resistance level, you could sell the pair and place a tight protective stop just above the resistance level.

If the pair keeps moving higher and breaks out above the resistance level, this would be considered an upside “breakout”. You would also get stopped out of your short order but if you believe that the breakout has good follow-through buying strength, you can reenter with a long position. You would then place your protective stop just below the former resistance level that was just penetrated and is now acting as support.

If the pair is nearing a lower support level, you could buy the pair and place a stop below the support level.

article source:www.babypips.com

Pivot Points, Support & Resistance 09/11/07

Currency Pairs:

1) EudUsd 2) GbpUsd 3) GbpJpy 4) UsdJpy

R3:1.4748 R3:2.1187 R3:240.35 R3:113.88
R2:1.4717 R2:2.1137 R2:239.20 R2:113.44
R1:1.4698 R1:2.1105 R1:238.49 R1:113.16
PP:1.4666 PP:2.1055 PP:237.35 PP:112.72
S1:1.4635 S1:2.1005 S1:236.20 S1:112.28
S2:1.4616 S2:2.0973 S2:235.49 S2:112.00
S3:1.4584 S3:2.0923 S3:234.35 S3:111.56

How to Calculate Pivot Points

The pivot point and associated support and resistance levels are calculated by using the last trading session’s open, high, low, and close. Since Forex is a 24-hour market, most traders use the New York closing time of 4:00pm EST as the previous day’s close.

The calculation for a pivot point is shown below:

Pivot point (PP) = (High + Low + Close) / 3

Support and resistance levels are then calculated off the pivot point like so:

First level support and resistance:

First support (S1) = (2*PP) – High

First resistance (R1) = (2*PP) – Low

Second level of support and resistance:

Second support (S2) = PP – (High – Low)

Second resistance (R2) = PP + (High - Low)

Don’t worry you don’t have to perform these calculations yourself. Your charting software will automatically do it for you and plot it on the chart.

Also keep in mind that some charting software also provides additional pivot point features such as a third support and resistance level and intermediate levels or mid-point levels (levels in between the main pivot point and support and resistance level).

These “extra levels” aren’t as significant as the main five but it doesn’t hurt to pay attention to them. Here’s an example:

(source:babypips.com)

Pivot Points 08/11/07

Currency Pairs:

1) eurusd :

• R3 = 1.4814
• R2 = 1.4745
• R1 = 1.4703
• P.P = 1.4635
• S1 = 1.4566
• S2 = 1.4524
• S3 = 1.4456

2) gbpusd

• R3 = 2.1192
• R2 = 2.1110
• R1 = 2.1059
• P.P = 2.0976
• S1 = 2.0894
• S2 = 2.0843
• S3 = 2.0760

3) gbpjpy

• R3 = 241.43
• R2 = 239.71
• R1 = 238.64
• P.P = 236.91
• S1 = 235.19
• S2 = 234.12
• S3 = 232.39

Use Pivot Points??

Professional traders and market makers use pivot points to identify important support and resistance levels. Simply put, a pivot point and its support/resistance levels are areas at which the direction of price movement can possibly change.

Pivot points are especially useful to short-term traders who are looking to take advantage of small price movements.

Pivot points can be used by both range-bound traders and breakout traders. Range-bound traders use pivot points to identify reversal points. Breakout traders use pivot points to recognize key levels that need to be broken for a move to be classified as a real deal breakout.

Here is an example of pivot points plotted on a 1-hour EUR/USD chart:

Source:http://www.babypips.com

Support and Resistance

Support and resistance is one of the most widely used concepts in trading. Strangely enough, everyone seems to have their own idea on how you should measure support and resistance.

Let’s just take a look at the basics first.

Look at the diagram above. As you can see, this zigzag pattern is making its way up (bull market). When the market moves up and then pulls back, the highest point reached before it pulled back is now resistance.

As the market continues up again, the lowest point reached before it started back is now support. In this way resistance and support are continually formed as the market oscillates over time. The reverse of course is true of the downtrend.

Plotting Support and Resistance

One thing to remember is that support and resistance levels are not exact numbers. Often times you will see a support or resistance level that appears broken, but soon after find out that the market was just testing it. With candlestick charts, these "tests" of support and resistance are usually represented by the candlestick shadows.

Notice how the shadows of the candles tested the 2500 resistance level. At those times it seemed like the market was "breaking" resistance. However, in hindsight we can see that the market was merely testing that level.

So how do we truly know if support or resistance is broken?

There is no definite answer to this question. Some argue that a support or resistance level is broken if the market can actually close past that level. However, you will find that this is not always the case. Let's take our same example from above and see what happened when the price actually closed past the 2500 resistance level.

In this case, the price had closed twice above the 2500 resistance level but both times ended up falling back down below it. If you had believed that these were real breakouts and bought this pair, you would've been seriously hurtin! Looking at the chart now, you can visually see and come to the conclusion that the resistance was not actually broken; and that it is still very much in tact and now even stronger.

So to help you filter out these false breakouts, you should think of support and resistance more of as "zones" rather than concrete numbers. One way to help you find these zones is to plot support and resistance on a line chart rather than a candlestick chart. The reason is that line charts only show you the closing price while candlesticks add the extreme highs and lows to the picture. These highs and lows can be misleading because often times they are just the "knee-jerk" reactions of the market. It's like when someone is doing something really strange, but when asked about it, they simply reply, "Sorry, it's just a reflex."

When plotting support and resistance, you don't want the reflexes of the market. You only want to plot its intentional movements.

Looking at the line chart, you want to plot your support and resistance lines around areas where you can see the price forming several peaks or valleys.

Other interesting tidbits about support and resistance:

1. When the market passes through resistance, that resistance now becomes support.
2. The more often price tests a level of resistance or support without breaking it the stronger the area of resistance or support is.

Source:http://www.babypips.com

Currency Traders

Forex, the largest financial market of the world can fetch you money. And it is possible only when you are pretty sure about your success in trading and know how to counter the odds of currency trading in adverse circumstances. A successful trader of currency trading needs to be awakened and alert about his proceedings and decisions. A little endeavor is made below to find out a few essential traits tagged with a successful trader of currency market.

Well, confidence comes at first. And it derives from learning. If you are new to currency market, make no move until you are confident about the aptness of your trading agreement. Go for some tutorials instead. If possible ask around; preferably the experts having years of expertise in currency trading. You can consider the courses and tutorials on currency trading which are usually designed by professionals. These courses are also available online. It means getting an expert for your currency trading is never a tedious task. No matter whether you are in pajamas or suits, a single click can do it all at the comfort of your own home.

A tutorial or course in currency trading will teach you the market basics, policies, trade secrets, how to opening and managing trade account, increasing profits and many more. These inputs and particulars will surely help you to get confident. Confidence is good but sometimes over confidence may lead you to loss. The mantra of successful forex trading says a trader should be rational not emotional. He should be confident but not above the heads.

Now how a trader could counter the odds of currency trading in adverse circumstances? Well, the answer lies in his experience. The more he trade in the currency market, more he will be able to gain the experience. On the course of getting the experience, he learns about the currencies, economies, trading in pairs, technical and fundamental analysis of currency trading and many more. All these contribute to his development as a perfect trader of currency market.

The forex market is volatile. Along with advantages, the market has certain calculated risks also. Being an awakened trader of currency market, you should have a nose for news regarding everything latest in currency trading. You should able to calculate the risks and counter them with a confident stroke of trading.

Summary: A successful trader of currency trading needs to be awakened and alert about his proceedings and decisions. Being an awakened trader of currency market, you should have a nose for news regarding everything latest in currency trading.

source:http://samples.blogforyou.com/blogs/samples/2007/10/01/currency-trading-in-forex/

Lets Prepare for The Competition

To all Profitable Traders Members

Date: From Monday to Friday only.
Time: 2.00 pm to 6.00 pm and 8.00 pm to 12.00midnight.
Address: 110-1, 1st floor, Jalan Puteri 5/1, Bandar Puteri, Puchong.

Subject:
1. For beginner - The basic forex technical chart analysis.
a. The Candlestick.
b. The Trendline.
c. The Pivot Point.
d. The indicators.

2.For intermediate - Technical chart analysis and Fundamental
analysis.
a. EMA Trading strategy.
b. RSI Trading strategy.
c. Stochastic Oscillators Trading strategy.
d. Parabolic SAR Trading strategy.
e. Pivot point Trading strategy.
f. Fibonacci Trading Strategy.

3.For taking part the FXcast FX competition course.
How to turn your USD 250 to be one of the Winner and take away the USD
5000.00.

All course will charge as below:
For beginner only MYR 70.00(as what other workshop charge > MYR
500.00.
For intermediate - MYR 150.00(as what other workshop charge > MYR
1000.00.
For FX competition - MYR 100.00(50% discount for those who have open
Live Trading account).
100% money back guarantee if you think is not worth it.

What is "Get-Rich-Quick" scheme?

"Get-Rich-Quick" scheme?

A plan which offers high or unrealistic rates of return for a small investment while at the same time promising that such investment is easy and risk -free.

The following "Get-Rich-Quick" schemes are prohibited under the
legislation administered by Bank Negara Malaysia :

Illegal Deposit Taking Activities

Illegal deposit taking is an act of receiving, taking or accepting of deposits (moneys, precious metal, precious stone, any other article etc.) from members of the public that promises a repayment with interest or returns in money or money's worth without a valid license under the Banking and Financial Institutions Act 1989 (BAFIA).

Illegal Foreign Currency Dealings

The following acts tantamount to illegal foreign currency dealings:

- Buying or selling of foreign currency by a person who is not an authorized dealer unless such person has obtained the permission of the Controller of Foreign Exchange under the Exchange Control Act 1953 (ECA).

- Buying or selling of foreign currency by a resident who is not an authorised dealer, with a person outside Malaysia except if the resident has obtained the permission of the Controller of Foreign Exchange under the ECA. CAUTION: Internet Investment Schemes

- Members of the public are cautioned to be on guard against some investment schemes promoted on the internet as these schemes are not licensed or authorized by Bank Negara Malaysia to accept deposits or deal in foreign currency. Such schemes often come in the guise of
attractive investment returns or opportunities involving unrealistic rates of returns with zero to low risk.

- Investors are reminded that they should only place deposits with institutions licensed or deal in foreign currency with institutions authorised by the Bank. Unlicensed operators may cease operating their business resulting in the investors with no means to recover their investments or seek redress against the persons connected with the scheme.

How To Spot The Scams?

Illegal deposit taking scam

o The person (an individual, a company or an organisation) receives, takes or accepts deposits from members of the public and is not licensed under section 6(4) of the BAFIA;
o The person promises to repay the deposit, with or without interest or returns, over a period of time in the form of money or money's worth, etc.; and
o The person promises to repay the initial deposit upon demand or at a time or in circumstances agreed by or on behalf of the person making the payment and the person receiving it, with any consideration in money or money's worth (the repayment of initial
deposit is sometimes included in the fixed interest or returns promised).

Warning Signs for Investors

· Illegal deposit taking activities have been disguised and camouflaged in various forms to deceive the public to fall victim to the investment scams, by giving valuable goods as part of the promised returns and camouflaging the deposits as loans to the company;

· Illegal deposit taking activities appear to be able to provide high or unrealistic rates of interest or return over a short period of time as compared to licensed institutions. However, these schemes will not last long;

· The survival of this scheme is dependent upon the recruitment of new depositors, i.e., new funds obtained will be used in paying dividends to the existing depositors. Therefore , the scheme will fail when there is no contribution of funds from new depositors; and

· Initially the depositors may be paid their promised returns. However, the operator would eventually abscond with the moneys collected when he feels that the scheme is about to fail, thus leaving the depositors at the losing end. Illegal foreign currency scam

Foreign currency dealings with a person, other than an authorized
dealer, who has not obtained the permission of the Controller of
Foreign Exchange under the ECA, often:

o Offer investors or members of the public the opportunity to deal in foreign currencies with a principal company (purported to have a valid licence to trade foreign currencies overseas);
o Facilitate the trading of foreign currencies by providing access to the principal company's website and trading facilities via internet;
o Recruit fresh graduates as marketing executives and allure them to get their family members to invest;
o Instruct the investors to deposit the investment moneys into either the principal company's bank account or a third party bank account; and
o Induce the investors to top up their investment ("margin call") or otherwise risk losing their investment.

Warning Signs For Investors

Illegal operators of foreign currency scams will try to entice potential investors with a marketing strategy which promises quick and high returns

· By projecting a professional and reputable image with smart-looking employees, a high-tech office layout and advanced IT facilities where investors are induced to operate their accounts via the internet;
· With tools of the trade, e.g., a news screen showing movements in exchange rates, to give the impression that a professional and legitimate business is being conducted; and
· A business contract is usually entered into between the investors and the company. Such contracts are usually left unsigned by the company. This means no action can be taken by the investors against the company as there is no binding written contract.

How To Protect Yourself From The Scams?

+ Remember the golden rule - if it sounds too good to be true, it's probably a lie;
+ Deal only with licensed financial institutions and authorized dealers;
+ Check with the relevant authority before investing;
+ Don't be pressured or rushed to invest;
+ Be extra careful with investments over the internet;
+ Be skeptical of any investment opportunity that is not in writing; and
+ In case an investment has been made, keep copies of all the investment and communications.

What Should You Do If You Are a Victim of such Scams?

If you have any information pertaining to illegal deposit taking activities or illegal foreign currency dealings or are a victim of such activities or scams you can send details of such information or complaint together with the documents to Bank Negara Malaysia as
follows:

Address:
Unit Penyiasatan Khas
Bank Negara Malaysia
Jalan Dato' Onn
50480 Kuala Lumpur
Fax: 03-26987467
E-mail: upkinfo@bnm.gov.my

We can also be contacted at the following telephone numbers:

Tel.: 03-2691 5090 / 2698 4163 / 2691 0824 / 2692 6482 / 2694 2143

Trading competition

Super Trading Competition

An extraordinary opportunity for you! FXcast will pay 5 000 USD cash for the winner of the Super Trading competition circuit!!!
The biggest profit will be the winner.

What should you do?
Trading of course – and follow these guidelines:
Basics:
• Only Passport or Identity Card or Driver’s license needed as identification.
• Money can be sent with any of our payment options including bank wire.
• Trading starts on 1st of November at 0:00 GMT.
• Trading ends on 30th of November at 23:59 GMT.
• All open positions will be closed then to get the final Equity.
• The price will be paid to the winner on his account and booked to his trading account for immediate withdrawal.
• The winner will be published on our website with picture (if agreed), country and city. A start for your trader career?
• All participants which want to withdraw later on must send complete documents as written in our verification area.
• Trades must follow our trading rules, no scalping and no Expert Advisors allowed.

What to do now?
1. Become a customer of FXcast
2. Open a special trading account in your membership area
3. Transfer 250 USD to your competition account (Only USD allowed)
4. Start trading and become the winner
5. The Trader with the highest equity after all open positions have been closed will be our No. 1

Start NOW and do not miss this unique chance with FXcast and apply here: http://fxcast.com/contests.php

Earn from Forex Trading & Networking

is a worldwide operating financial services corporation specializing on supporting currency traders of each status of knowledge and experience with high quality online trading services. With a team of dedicated financial specialists and technical support personnel, FXcast operates globally as a market maker and principal counterparty to retail customers and corporate customers and institutional traders. "Providing currency conversion services" is the main concern of FXcast. FXcast has established itself as an industry leader by offering unique trading software which is highly secured and reliable. The range and capabilities of FXcast software fits to everyone's needs and can be operated manually or fully automatic with auto-trade capabilities.

mission is to provide the opportunity for individuals and corporate customers around the world to trade currency markets under the most favourable conditions, such as enjoyed by financial institutes, banks, or brokerage companies. FXcast also offers customers to create and use automated trading systems and strategies to experiment with strategies, improve their trading skills and get acquainted with the system before buying and selling on a live market.

Introducing Brokers Program allows you to refer customers and earn from every trade executed by your referred customers or by customers of SUB-IB Levels referred by you. You can earn up to 1 pip (e.g. standard lot on EUR/USD is 100K, 1pip = $10) on every trade executed by referred customers. You can refer customers through your website or send them a promotion code per e-mail. Some customers execute 10 - 20 Lots with one trade, others make 15 -30 trades a day what is giving you possibilities to earn thousands each month by simply referring customers to FXcast. If you refer other IBs you will get rebates from each trade of their customers too. The more customers and IBs you bring the more commission per trade will be paid to you.

There are 4 levels of IBs:

1. Master IB Level - The highest level for an IB.
   Rebates: 1 pip per traded lot for all customers introduced by yourself or 0.25 pip per traded lot from every customer introduced by any underlying IB, SUB IB, promotion partner;
2. IB Level - The Standard level for an IB.
   Rebates: 0.75 pip per traded lot for all customers introduced by yourself or 0.25 pip per traded lot from any customer introduced by any underlying SUB IB, promotion partner;
3. SUB-IB Level - The second level for an IB.
   Rebates: 0.50 pip per traded lot for all customers introduced by yourself or 0.25 pip per traded lot from any customer introduced by any underlying promotion partner;
4. Promotion Partner Level - Entry level to the IB Program.
   Rebates: 0.10 pip per traded lot from any customer.

It is easy to apply for FXCast IB Program, all you need to do is register as FXCast member (membership is free), open a live trading account (trade for atleast 3 - 5 days) and you could submit your application as IB online.

For more info on FXCast or its IB Program, go to http://fxcast. com/?pr=20179.

Basic Forex Seminar

The seminar is about the basic forex trading and MT 4 Trading Platform's guideline as below:

1. How to use MT 4 - pending order, instant order, limit order, trailing stop. Also include the MT 4 editors, Template, indicators.
2. The basic knowledge of Candlestick chart pattern.
3. The Basic of Trendline Resistance and support.
4. The Basic of Pivot Point application.
5. The basic of Fibonacci theory.
6. The basic of MA, RSI, Stochastic, MACD, Bolinger Band, Momentum, Volume and others.

(approx. 3-4 hours Seminars.)
Speakers: JamesForex
Location : Kuala Lumpur.
Date and time: 20 October 2007 (Saturday).
Seminar Capacity: 50 peoples (Limited Seats)
Fees: MYR 150.00 (Cheapest In Town).
This seminar is STRICTLY for Profitable Traders members and friends only.
100% MoneyBack Guarantee
Interested ??? - Hurry, Booked Your Seat Now!!! email: profitabletraders@yahoo.com
before HariRaya

Legal Disclaimer and risk disclosure.

Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubt

Trading Using Moving average convergence divergence (MACD)

Moving average convergence divergence (MACD), invented in 1979 by Gerald Appel, is one of the most popular technical indicators in trading. MACD is appreciated by traders the world over for its simplicity and flexibility because it can be used either as a trend or momentum indicator.

Trading divergence is a popular way to use MACD histogram (which we explain below), but, unfortunately, the divergence trade is not very accurate - it fails more than it succeeds. To explore what may be a more logical method of trading MACD divergence, we look at using the MACD histogram for both trade-entry and trade-exit signals (instead of only entry), and how currency traders are uniquely positioned to take advantage of such a strategy.

MACD: An Overview
The concept behind MACD is fairly straightforward. Essentially it calculates the difference between an instrument's 26-day and 12-day exponential moving average (EMA). Of the two moving averages that make up MACD, the 12-day EMA is obviously the faster and the 26-day is the slower. In the calculation of their value, both moving averages use the closing prices of whatever period is measured. On the MACD chart, a 9-day EMA of MACD itself is plotted as well, and it acts as a trigger for buy and sell decisions. MACD generates a bullish signal when it moves above its own 9-day EMA, and it sends a sell sign when it moves below its 9-day EMA.

The MACD histogram is an elegant visual representation of the difference between MACD and its 9-day EMA. The histogram is positive when MACD is above its 9-day EMA and negative when MACD is below its 9-day EMA. If prices are rising, the histogram grows larger as the speed of the price movement accelerates and contracts as price movement decelerates. The same principle works in reverse as prices are falling. See Figure 1 for a good example of a MACD histogram in action.

Figure 1 - The above is an example of MACD histogram. Note that as price action (top part of the screen) accelerates to the downside, the MACD histogram (in the lower part of the screen) makes new lows and vice versa as prices turn.

As it responds to the speed of price movement, the MACD histogram is the main reason why so many traders rely on this indicator to measure momentum. Indeed, most traders use the MACD indicator more frequently to gauge the strength of the price move than to determine the direction of a trend.

Trading Divergence
As we mentioned earlier, trading divergence is a classic way in which the MACD histogram is used. One of the most common set-ups is to find chart points at which price makes a new swing high or a new swing low but the MACD histogram does not, indicating a divergence between price and momentum. Figure 2 illustrates a typical divergence trade.

Figure 2 - Here is a typical (negative) divergence trade using a MACD histogram. At the right-hand circle on the price chart, the price movements make a new swing high, but at the corresponding circled point on the MACD histogram, the MACD histogram is unable to exceed its previous high of 0.3307. (The histogram reached this high at the point indicated by the lower left-hand circle.) The divergence is a signal that the price is about to reverse at the new high, and as such, it is a signal for the trader to enter into a short position.

Unfortunately, the divergence trade is not very accurate - it fails more times than it succeeds. Prices frequently have several final bursts up or down that trigger stops and force traders out of position just before the move actually makes a sustained turn and the trade becomes profitable. Figure 3 demonstrates a typical divergence fakeout, which has frustrated scores of traders over the years.

Figure 3 - A typical divergence fakeout. Strong divergence is illustrated by the right circle (at the bottom of the chart) by the vertical line, but traders who set their stops at swing highs would have been taken out of the trade before it turned in their direction.

One of the reasons that traders often lose with this set up is they enter a trade on a signal from the MACD indicator but exit it based on the move in price. Since the MACD histogram is a derivative of price and is not price itself, this approach is in effect the trading version of mixing apples and oranges.

Using the MACD Histogram for Both Entry and Exit
To resolve the inconsistency between entry and exit, a trader can use the MACD histogram for both trade-entry and trade-exit signals. To do so, the trader trading the negative divergence takes a partial short position at the initial point of divergence, but instead of setting the stop at the nearest swing high based on price, s/he instead stops out the trade only if the high of the MACD histogram exceeds its previous swing high, indicating that momentum is actually accelerating and the trader is truly wrong on the trade. If, on the other hand, the MACD histogram does not generate a new swing high, the trader then adds to his or her initial position, continually achieving a higher average price for his or her short.




Currency traders are uniquely positioned to take advantage of this strategy because with this strategy, the larger the position, the larger potential gains once the price reverses - and in FX, you can implement this strategy with any size of position and not have to worry about influencing price. (Traders can execute transactions as large as 100,000 units or as little as 1,000 units for the same typical spread of three to five points in the major pairs.)

In effect, this strategy requires the trader to average up as prices temporarily move against him or her. This, however, is typically not considered a good strategy. Many trading books have derisively dubbed such a technique as "adding to your losers". However, in this case the trader has a logical reason for doing so - the MACD histogram has shown divergence, which indicates that momentum is waning and price may soon turn. In effect, the trader is trying to call the bluff between the seeming strength of immediate price action and MACD readings that hint at weakness ahead. Still, a well-prepared trader using the advantages of fixed costs in FX, by properly averaging up the trade, can withstand the temporary drawdowns until price turns in his or her favor. Figure 4 illustrates this strategy in action.

Figure 4 - The chart indicates where price makes successive highs but the MACD histogram does not - foreshadowing the decline that eventually comes. By averaging up his or her short, the trader eventually earns a handsome profit as we see the price making a sustained reversal after the final point of divergence.

Conclusion
Like life, trading is rarely black and white. Some rules that traders agree on blindly, such as never adding to a loser, can be successfully broken to achieve extraordinary profits. However, a logical, methodical approach for violating these important money management rules needs to be established before attempting to capture gains. In the case of the MACD histogram, trading the indicator instead of the price offers a new way to trade an old idea - divergence. Applying this method to the FX market, which allows effortless scaling up of positions, makes this idea even more intriguing to day traders and position traders alike.

By Boris Schlossberg, Senior Currency Strategist, FXCM
Access Boris' Exclusive FREE Report The 5 Things That Move The Market

APA YANG ANDA PERLU FAHAM TENTANG eGOLD

APA YANG ANDA PERLU FAHAM TENTANG eGOLD

1. eGOLD ada caj transaksi.
Setiap transaksi ada caj dia 1% setiap USD tetapi maksimum satu transaksi USD 0.50 sahaja. Setiap tahun juga ada pemotongan keatas akaun egold masing masing utk membayar kos menyimpan emas tersebut.

2. eGOLD berkadaran dengan nilai emas yang senantiasa turun naik.
Yang kekal hanya gram emas tersebut. Jadi jika anda ingin menyertai program USD10, elok beli lebih sikit seperti USD11 kerana kemungkinan masa anda hendak menggunakan eGOLD tersebut jumlahnya berkurangan disebabkan harga emas turun.

3. eGOLD di Malaysia dijual pada kadar antara RM3.80 - RM4.30 per Dollar mengikut persetujuan pembeli dan penjual dan mengikut supply and demand semasa. Setelah anda mendapat keuntungan dari Program tersebut anda bolehlah menjual kembali eGOLD anda kepada peraih eGOLD dan jika eGOLD anda dalam jumlah yang banyak anda juga boleh mendapatkan Debit Kad untuk mengalihkan eGOLD anda kedalam Debit Kad tersebut dan kemudiannya anda boleh mengeluarkan CASH di mana-mana mesin ATM yang ada Cirrus dan Maestro di Seluruh Malaysia. Harus diingat Debit Kad mempunyai yuran tahunan yang mahal dan tidak bijak mendapatkan Debit Kad jika keuntungan eGOLD anda tidak benar-benar banyak.Di antara laman web yang menjalankan transaksi jual / beli e-gold:

APA ITU eGOLD?

eGOLD adalah salah satu eCurrency ( matawang online ) yang digunapakai di Internet. Dalam banyak-banyak eCurrency eGOLD adalah eCurrency paling lama, paling dipercayai dan paling banyak digunakan di internet. Antara contoh eCurrency yang lain adalah seperti INTgold, EVOcash, NETPAY, eBULLION, PECUNIX dsbg.Konsep penggunaan eGOLD adalah seperti perbankan online ( cth MAYBANK2U ) dan duit dalam akaun eGOLD kita bersandar kepada gram emas semasa. Bagaimana kita nak menggunakan eGOLD kita terserah kepada kita.

E-gold adalah
satu sistem matawang elektronik didaftarkan dibawah E-gold ltd, oleh ahli dewan perniagaan Nevis yang disokong oleh 100% bar emas yang tersimpan .

E-gold telah bergabung dalam satu akaun sistem pembayaran untuk menggalakkan lebih ramai orang menggunakan emas sebagai matawang. Secara spesifik pembayaran melalui E-gold membenarkan orang ramai untuk membelanjakan (Spend) sejumlah emas, mengikut perkadaran berat untuk di pindahkan kepada akaun E-gold yang lain. Hanya hakmilik yang berubah. Emas yang tersimpan (treasury grade vault) masih tetap kekal

Boleh Dipercayai (Trustworthy )

Mengikut pada E-gold User Agreement, emas fizikal yang menyokong akaun e-gold hendaklah wujud dalam bentuk fizikal, mendapat kelulusan rasmi (legal) dan bebas dari risiko politik. Merujuk pada deklarasi dari pihak e-gold "The e-gold bullion reserve special propose trust - " menyatakan bahawa kegunaan secara mendadak hendaklah diwujudkan secara eksklusif adalah untuk kebaikan kesemua ahli dalam kumpulan pemegang akaun e-gold. Emas ini hendaklah wujud dalam bentuk emas fizikal yang tersimpan di "London Bullion Market Association (LBMA)" . Logam emas yang tersimpan hendaklah bebas dari sebarang "lien" atau encumbarance dan tidak terikat dengan mana-mana organisasi. Secara am, emas ini tidak terikat pada liability e-gold Ltd atau sebarang entity company. Tidak ada sebarang logam yang boleh di keluarkan dari simpanan tanpa pengesahan / tandatangan dua pihak , e-gold Ltd dan Escrow Agent untuk memastikan reputasi dan kualiti emas terjamin.

Transparency

E-gold Ltd. menawarkan tahap transparency secara tidak parallel

Kiraan akaun E-gold secara total vs. Kiraan Emas tersedia secara Total . Informasi ini di bekalkan mengikut keadaan semasa dan terkini berdasarkan pemerincian dari `examiner' tools dari E-gold website. `Statistic' yang berkaitan dengan penggunaan dan perkembangan sistem e-gold

Sistem Matawang Antarabangsa

Internet - World Wide Web (WWW)
Emas - World Wide Money (WWM)

Kombinasi kedua-dua sistem ini secara global ini telah mewujudkan satu keperluan. E-gold telah wujud untuk memenuhi kehendak dan keperluan ini.

E-gold dikira dalam bentuk berat logam dan bukan nya US$ atau mana-mana unit/ nilai matawang nasional. Berat unit lebih tepat dan mempunyai definasi yang boleh diguna secara global / antarabangsa. Sebagai tambahan, logam berharga ini ternyata digunakan dalam sistem kewangan sedunia. Oleh itu, e-gold adalah satu sistem yang ideal dan sesuai untuk transaksi antrabangsa.

Walaupun e-gold dikira mengikut berat, sistem pembayaran e-gold membenarkan `Spends' untuk menggantikan terma 8 nilai matawang terbesar dunia. Sebagai contoh, terma berikut adalah rasmi (possible)

Spend 10 Troy oz adalah nilai e-gold
Spend 5.3 grams adalah nilai e-gold
Spend US $100.00 adalah nilai e-gold
Spend CHF 685.88 adalah nilai e-gold
Nilai-nilai yang dinyatakan diatas membawa maksud, Canadian boleh membuat pembayaran kapada German atau Japanese atau Australian, jumlah berat emas yang tepat dengan e-gold untuk mendapatkan barang/ servis secara mudah, seolah-olah harga telah ditetapkan dalam nilai matawang sesebuah negara.

Kuasa Membeli ( The power of the E-gold Spend )

Kesemua nilai kewangan akan berpindah ke alam cyber hanya dalam beberapa tahun akan datang. E-gold telah bersedia dan begitu juga anda.

E-gold - Jual Beli (Transaksi) tanpa sempadan
E-gold boleh di belanjakan (Spent ) kepada akaun e-gold yang lain di mana-mana sahaja tempat di dunia menerusi e-gold shopping cart interface (SCI), e-gold account manager or telefon mudah alih dengan kemudahan internet.

E-gold - Lebih Cepat dan Pantas
Pembayaran e-gold serta-merta (tanpa risiko charge semula - chargeback) , tidak kira berapa besar pembayaran, tidak kira berapa jauh pembelanja dan penerima.

E-gold - Lebih Menjimatkan

Berbelanja dengan e-gold adalah percuma walaupun penerima anda berada dihujung dunia.
Bayaran transaksi penerima adalah dari nilai rendah yang berpatutan kepada pesanan terendah dari kad kredit dan transaksi bank wire, tidak kira berapa besar (atau kecil) sesuatu pembayaran
E-gold Agio fee, merangkumi kos simpanan bar emas, untuk melepasi tahap ekonomi untuk pembeli emas jumlah besar.
Kelebihan pada semua pengguna wang. $$$$

Sasaran untuk pasaran e-gold adalah pengguna matawang. Bagaimanakah anda menggunakan matawang sekarang?

Pengguna matawang ini akan berpeluang untuk menikmati kemudahan dari kestabilan, sistem keselamatan, efisyensi dan cost yang rendah dari e-gold. Berikut adalah contoh-contoh kegunaan e-gold;

E-Dagang
Pembayaran B2B ( Business-to- Business)
Jualan - Point of Service
Pembayaran Orang Perseorangan ( Person-to-Person)
Gaji
Bill Setempat
Derma Badan Kebajikan
Sistem kewangan yang menggunakan dasar ekonomi AUG*
* AUG adalah singkatan nilai unit matawang "grams of gold"

Pembangunan Pasaran Tukaran Dagangan

Pembentukan sistem e-gold adalah bebas dari sebarang risiko kewangan. Tidak akan terdapat hutang atau liability yang bergantung dan terikat pada e-gold. Untuk tujuan ini, pihak e-gold Ltd. tidak akan memproses sebarang matawang national dari sebarang negara yang tidak mempunyai akaun bank. Oleh itu, e-gold Ltd. tidak akan boleh menawarkan servis tukaran matawang.

Untuk menggalakan pertumbuhan bilangan pusat servis tukaran bebas di serata dunia yang menyokong tukaran antara matawang national dan e-gold, pihak e-gold telah menambah bilangan cara pembayaran termasuk kad kredit, bank wires cek bank dan money order.

Tiada halangan/sempadan untuk penyertaan

Tiada sebarang kos diperlukan untuk membuka akaun e-gold. Tiada pemeriksaan kredit, tiada had minimum diperlukan, tiada sebarang concept `akaun saudagar' dalam akaun e-gold untuk melayakan perbelanjaan (Spend) e-gold atau penerimaan pembayaran e-gold.

(Petikan:http://ideaunik.wordpress.com)

Market Rhythm - Lesson # 4

Sekarang kita akan berbincang berkenaan motion harga kerana ramai yang mengambil signal MACD yang tidak berkaitan dengan motion semasa. HASILNYA : satu kesalahan yang serius.

Lihat gambarajah,lihat motion market.

Kotak purple point A. harga bergerak pergi dari line biru 89SMA. Dan apa berlaku, bila ia Berjaya tembus SMA89, ada tekanan untuk turun atau naik. Tapi dalam kes ini ia naik.kemudian ia patah semula ke line 21EMA, point no 1,naik semula dan turun balik ke 21EMA, point no 2,naik, dan turun balik ke 21 EMA, point no 3.Sama pada point no. 4, 5 dan 6. Di situlah peluang baik untuk anda. Jika MACD menyokong trend bersambung(trend continuation)pattern, ia menjadi satu set up yang bagus.

Lawan trend kita boleh ambil, tetapi bila ia kena pada suatu trendline.kita belum sampai lagi pada tajuk itu. Kerana kita perlu melakar trendline utk top dan kita putuskan hingga ke mana line tersebut boleh dilukis. Ia adalah apabila melepasi suatu resistant, ini sangat penting kerana ia tidak diambil kira sebagai satu rithm.anda akan tahu secara random dan ada cara tertentu untuk melakukannya. Kita akan lihat pada teknik itu kemudian.

Page 2 kita lihat kembali, tapi ada line merah trend top sebelah kiri. Apa yg berlaku, harga patah semula ke 89EMA, ia berlaku dalam bentuk 1,2,3. Kemudian ia kembali ke garis 21EMA pada titik merah no.2.kemudian ia ke 89 titik merah no 3 dan ke kotak purple.(titik A warna hitam).

Situasi itu ialah apabila trend top(merah) dan kembali ke EMA89. Anda lihat ia turun dan kita jangkakan ia kembali ke 21.memang ia berlaku, TETAPI, ia tidak terus turun ke bawah, sebaliknya ia terus naik semula ke garis 89EMA(titik B) itu member gambaran bahawa harga tidak akan menyambung down trend sebaliknya akan naik semula.

Jadi ia sekarang kearah asal yang ia hendak tuju.

Kemudian ia patah semula ke C di bawah EMA89 dan kita jangkakan ia naik semula ke EMA21 sebelum turun, tetapi ia terus naik ke 89EMA.selepas itu baru ia turun. Jadi pada lingkungan itu kita boleh trade Cuma kita masih tidak tahu kemana arah yang sebenarnya.

Pada titik D sahaja baru kita Nampak harga break 89EMA tetapi masih tak tahu samada akan berhenti dalam range itu , terpaksalah kita beri sedikit ruang untuk ia bergerak. Kemudian kita Nampak ia gerak ke atas sebelum patah semula ke titik hitam no.1 sebelah kanan89,

ia telah jumpa garis support baru di situ dan baru ia bergerak menjauhkan diri. Setiap kali ia gerak ke 89EMA, dan ada sokongan dari MACD, kita boleh ambil peluang utk buka posisi trade. Apa yang berlaku, harga naik keatas, kemudian turun ke EMA21 (titik no.2 hitam). Di sanalah satu setup yg sangat baik yang kita tunggu dan cari.

Sekarang kita lihat pada MACD, ia member bacaan sedikit trend continuation. Kita tidak buat hanya semata kerana signal dari MACD, tetapi juga disebabkan juga harga yang bergerak menjauh dari EMA 21 (titik hitam no.3) titik hitam no 4 juga sama, dan juga titik hitam no.5(semuanya menjauhkan dari EMA 21).

Lihat pada trendline yang telah saya lakar, pada top titik 123 di D menaik, (garis hitam) bila harga melanggar Resistant tersebut,pada saat ia top, anda boleh mengambil trade lawan arah trend(counter trending) , dengan syarat risk reward ratio (R:R) sesuai.

Risk reward ratio adalah nisbah risiko loss berbanding nisbah profit.

Graf atas, kita boleh Nampak titik 1,2,3 hitam. Dan titik 1,2,3,4,5 memberitahu ia patah semula ke EMA21. TETAPI saya ingin anda lihat kepada semua kotak purple di tengah antara 2 garis merah melintasi dia semua garisan 89EMA dsb, menunjukkan market tiada arah dan ia mewujudkan consolidation mode, jadi kita perlu mengadakan top trendline dan bottom trendline pada graf. Bila berdepan situasi sebegini, kita perlu ambil kira signal pergerakan MACD pada top dan bottom pattern tersebut. Pergerakan pertengahan trendline tersebut kita perlu berhati2 selepas lihat pada ruang antara 2 trendline tersebut.ia sangat penting.

Jika anda lihat pada kotak yang pertama sebelah kiri, ia tunjuk turun, dan kemudian kita dapati titik2 hitam 1,2,3. Selepas itu kehabisan momentum. Kemudian kita dapati titik2 merah a,b,c yang mana ia kembali ke EMA21 pada merah a. kemudian turun ke b dan c sebelum naik ke EMA 89, keadaan ini normal bila market bergerak dalam rithm. Cuma apabila ia tidak berada dalam keadaan rithm yang normal, anda perlu sangat sangat berhati2.

Graf diatas adalah keadaan semasa waktu saya buat nota ini.lihat pada merah yang saya ada.Ia top pada garisan cokelat, resistant besar waktu 2004. 2 kotak purple, dan lihat pada EMA89(garis biru) menunjukkan ia tiada rithm. Dan kemudian sebelah kanan, ada no.1 dan 2. Iaitu harga semasa. market naik ke EMA21(titik 1 kanan) dan turun semula sebelum naik ek titik no.2 selepas itu ia berdezup turun. Gedebukk jatuh.

Jadi, diantara 1 dan 2, 2 adalah setup yang sangat berpotensi dan baik. Jika anda ambil trade tersebut, ia akan menurut jangkaan anda.

Tetapi jika saat harga melanggar suatu resistant besar seperti bulatan merah pada top, anda tahu ia akan jadi tidak tentu arah naik dan turun.

Garis biru pada sebelah kiri anda ialah suatu rithm yang baik sekali. Harga menjauh dari EMA21 kemudian patah balik ke 21 semula. Jauh dan balik, jauh dan balik semula. Jadi anda perlu mencari rithm pergerakan yang seperti itu untuk satu trade entry yang baik. Kiranya tiada seperti itu, menunjukkan tiada stability dan anda perlu putuskan samada anda akan bukak posisi atau tidak. Sekiranya anda trade, anda cari sedikit pip sebelum menunggu satu break trend yang lebih kuat.tembus atau patah balik ke EMA 89, semula ke EMA21 anda akan tahu samada ia adalah trend seperti yang ada pada harga semasa seperti dalam carta.

Article By:Phillip Nell “4 Hour Strategy (300 + Pips per Month)

Part 3 - MACD 4 Hour Strategy (300 + Pips per Month)

Right, now we come to one of those age old debates technical analysis versus fundamental analysis. Which one is right? I’ve heard on the thread, there was a guy, stating there, that the news is moving the market. And I hear that a lot, the people say, but it’s the news that moves the market. I’m gonna ask a counter question, and that is: If the news comes out and you take the people away, that they can not trade, say there is a power break, and nobody can trade, no person can trade, is the market going to move? It’s not going to move, the market is moved by people and it’s moved by the decisions of people, and it’s moved by their interpretation and their perception of the news that they have heard.

It’s not so much the news that came out, it’s the people’s interpretation and perception of what they think that news is worth to them, that moves the market. If I buy a stand and I want to build a house in it and I came to know that there’s oil underneath it, then this stand is gonna be much more worth, but other people might not know it, so even if the guy comes and offers me twice as much what the stand next door is, I’m not gonna sell, because I’ve got information that he does not have. And that’s very important to see that the market move is about people making decisions and that’s why I always say to fundamental guy is, but I am not a technical guy, I’m a fundamental guy, I just don’t go into depth studying the fundamentals, but the price action tells me what the fundamentals are. Not really the actual fundamentals, but what do people think and expect of those fundamentals. If people think it’s not good enough, they gonna hammer the currency, like the British pound yesterday. The Interest Rate goes up, but the pound goes down, there was some profit taking, and there is a lot of stuff involved there.

But my point of view is that – by watching the price action, I don’t see, if I look at the graph, if I look at the currency, the E/U for example, I don’t see the graph, I see actions of people, I see emotions of people, I see people making decisions according to news that has been available to them. And people, when good news comes out, they make certain decisions and it sort of runs into a pattern, and that’s why you’ve got those triangles, ascending triangles, descending triangles, that’s why you’ve got flag, that’s why you’ve got consolidation. People are acting within certain limits, because we are limit people. You want boundaries around you, the moment boundaries are off, you don’t know which way to go. So, people like boundaries and when certain patterns are formed within a currency price I see people, the actions of people there. And that tells me what type of action is going to happen when the news really comes out, and they interpreted it. That’s why we anticipate, I’m not predicting anything, I am not predicting the market movement up or down, I’m anticipating it. That’s a difference between the too, anticipation tells me, I’m looking at the price action, I’m looking at the pattern that is busy forming, and when that type of pattern formed I anticipate the price to go up. And I’ll wait for it to happen and I jump on board. That’s why sitting in the playing field, watching it, seeing the pattern form and you know that some 4hour candle is going to break out. And you look for conformation, when that is gonna happen. It’s got nothing to do with fundamental analysis, it’s the action of people based upon fundamentals. And that’s why I say that price action to me is the decisions of people, it’s actions of people, it’s emotions of people, So, I’m seeing people, I’m not seeing the price, because if you see a price you see pips, you see money and that might become your enemy. I see it as actions of people, when there’s no rhythm I know that people are not in harmony, their decisions are not in harmony. So, I’m looking for those harmony movements and that tells me that that market is in motion, and it’s in a certain rhythm and I want to flow with that rhythm.

So, when you look at the share price, or sorry currency price, or any price, even share price – stock market work the same, look at it as decisions of people. If you get acquainted and thoroughly educated in this whole system, it’s like when you do white river rafting. If you ask an expert by just flying with a helicopter above the river, just a flow of the water, different ways it flows, it’s speed, it will tell you what is going on underneath. And he can work out which way to take his little boat the next day, which will be the safest for him. And normally take a video camera, they film it, and then they go and sit, and say there you see some obstacles underneath. There we’ve got to avoid that because there very much sort of acceleration of the water, which is too quick, we cannot get in there. They don’t know what is going on on the other side, they anticipate it by the movement of the water, and that is exactly the same what you’ve got to do with the market. You can anticipate what is coming by the movement that is currently taking place. That is market emotion and that motion is due to the fundamental knowledge that’s been out like Interest Rates that come out. And when it’s out people act upon that information. And that’s technical analysis based upon fundamentals.

Source:

Phillip Nell “4 Hour Strategy (300 + Pips per Month)"

MACD 4 Hour Strategy " - Part 2

Tsunami:

Right, now we come a little bit to the mid of the summary – The Tsunami, I call it the Tsunami, you’ll get the reason later on. First of all, I want to talk about the money changers, what they do is – they land you money, when Interest Rates are very low and they create an environment for you to lend money, because it’s easy money, easy to pay back, it’s normally when the economy of the country is really having a good time, and everybody is buying new cars, and new houses, and go on holidays and things like that. Then, at the certain stage there is too much money floating around, so now they’ve got to do something to stop that, people are lending are all over the place. And things don’t balance any more, the one side gets heavier than the other side and then they decide to raise the Interest Rates. Then they start collecting from you. And if your budget was not very nice, you either have to give back your car, or give back your house. And that’s what they do. They create a playing field, where they lend out money, but the reasons for them is to make money.

I want to show something, that I’ll do by illustration, by explaining how I see this. Now, who are the money changers? I call the “the big ones” “the big guys”. I haven’t met one of them yet, I don’t know who they are, fund managers, governments, banks, I don’t know. But somehow, at certain stages they create a sort of environment; I call it “the playing field” in the Forex market. At this specific point you’ll remember, if you go back saying in a year, two or three from now, or even ten years from now, and you take the exact date, today, and you’ll take three weeks back, you’ll see the past three week have been difficult. If you look at the Euro, if you look at the British pound, you’ll see there are a lot of ups and down. That’s “playing field”, there is a lot of emotion going on, there’s a lot of movement going on, but it goes nowhere.

Now, it’s like sitting on a beach, you see people running all over, I can not run after every one, that come run past me. Because he might just play with a ball, it might be just someone running past, so if I get up and run after everyone I am gonna be tired by the end of the day. So, what do I do? I can sit there and I can put on my dark glasses, put on my suntan lotion, and forget about everything. But by doing that the Tsunami might hit me, and I won’t even know that. So, what do I really look for? I look for an unease or a pattern of movement that’s not a part of a playing on the beach. You’ll start to realize, well, people are not playing anymore now, there are some people running toward the gates, so there is something going on. You don’t know what yet, so what do you do? There are basically three things that you can do. You can totally ignore it, as I said put on your sun glasses, and be hit by tsunami. Or, what most of us do, we get up and we appoint a commissioner, of commission, couple of people that must go and find out, why are those people running. And you get yourself deep in to the fundamentals, and you start reading here, and you start reading there, and by the time you figure out: “Oh, it’s a Tsunami”, and you got hit by it. Then it’s too late. That’s a second part.

But, there’s a third part as well, you can run with the people running. And why you running with them, you can ask: “Why are we running?” And you’ll get an answer, if they can’t answer you, at least, you have a choice to decide, I’ll stay with it until it stops, and that is what market is doing. When it runs, you’ve got to be in it. Sometimes you know it’s news, sometimes you know it’s this and that, but sometimes you don’t, as long as you are there. But now comes the main part, you must desern, I’m using the word desern, because desern - is a separation. First of all, you’ve got to recognize, when it’s playing time, like we had now these last three weeks. It was playing time and then, the next step is you’ve got to desern, when the informed are leaving the playground. When those money changers, when they start moving. You’ve got to desern it, it’s a separation, technically, you’ve got to see the emotions on the faces if you are on the beach, they serious. And then you must desern when the playing is about to end. You know it’s gonna end, but you don’t know when. And then I‘ve got this last on B1 of the followers, of the informed. There are people that are informed in this whole playing scenario. And you’ve got to know the motion of the market in terms of its movement, because price is moved by people, by decisions of people. And their decisions make the market run, and why is it running – you don’t know yet, but you have recognized, that playing time, the playing field – is about over. The end is about there, but you don’t know exactly when. And that is what MACD system sort of tells you. Gives you an early indication when playing time is over. And when it runs you’ve got to be on board. That’s very important. And then when it runs it’s got a certain emotion, you just happen to be in that flow, you run with it, because if they want to take you out, they must take themselves out, but they not gonna do that, so you’ve got to be in that flow all the time. And that’s what I’m gonna teach you as well later on. Is to know the market rhythm, and to know when the market is moving, in a certain patter, in a certain rhythm, to stay with it as long as possible. So, remember to desern when the move is on.

Source: (Phillip Nell “4 Hour Strategy )

4hour MACD Strategy - Part 1

Welcome to the 4hour MACD summary, which I’ve put together, especially for the people that come new to the thread, because there are a lot of posts to read through. I believe it’s in the region of 4000, just quickly want to have a look… I haven’t looked yet, 4300 at this stage, so it’s a lot of work. But if you want to make a success or a career of it, that’s not very much. 280 something pages, I believe people are reading story books, more than those pages. But what I would like to do is, I would like to put you a summary, that I want you to work through. I’m gonna put it in chronological order, after those many posts and people getting involved and chatting… And I’m following it, I’ve sort get an idea of what was going on, in the people minds, the way they trade, the way they take the system. And I just want to give some more, I won’t say advice, but just some more light onto the subject, to make the system more understandable for people, so that they not feel that they are in the dark.

Right, first of all, disclaimer that I want to say, is that this is not investment advice, I am not giving investment advice, I am not going to do so. This is a strategy, which I give for your own studying and if you feel to use it, you use it on your own risk. The market itself, the Forex market, you got to obtain the thorough knowledge of the market itself: its movement, the news… There are a lot of sites out there, on the Internet, you can go to obtain this type of knowledge. The currencies that I’m using and the examples that I’m gonna use (the charts) are only for educational purposes, just to educate you, it’s not to give you any advice as to say you got to trade those currencies. I prefer the US dollar, the British pound, the Japanese yen. USD/JPY – a little bit, and than lately I looked at the USD/CHF – I started doing some backtesting there as well. And I like what I see, the movement is a little bit smoother, and, so that’s one of those three that I really like to watch.

What the system is not going to do? The system is not going to make you rich in 40 days. It’s not gonna make you trade like a pro after 10 minutes. That’s why this thing is already 4000 posts, and over 280 pages, it’s because there’s a lot of work, that you’ve got to put in. It’s not a mechanical system, it’s not a system where can MACD tell you to pull the trigger and you just pull the trigger. That’s why you can see up to now, there was no attempt of making an EA of this whole system, an adviser for any of those platforms, automatic adviser that does the deals for you. It’s not there. And the reason being because there is a lot of emotion involve, a lot of interpretation, and that’s what I’m gonna teach you later on, to know the motion of the market, the rhythm of the market. So it’s not going to turn 300$ in 30000$ in no time, it’s not gonna do that. In the beginning you gonna have some losses, than a few wins, and you might find yourself after a month that you are breakeven, but I would like to tell you, or say to you, if you after 50 paper trades have not made money yet, than there is something wrong with your money management. It’s not the system, that I can, if you worked through all those 280 pages, you will see, it’s all about management, it’s all about emotions. A lot of people, I see get into motion, what I mean by that is, they come and sit in front of the computer and they see there is some movement going on, don’t really know why or what, but it’s going up, so I’m gonna get in. And that’s when you get into that motion that you get slotted. Because that motion can go up and down. The 4 hour candle can run up 60 pips, it can run down 50 pips, and it can go up 60 again. That’s how the market works, so by that: getting into a candle, that’s busy running, unless you know why it’s running… It’s a different story. There are certain times where you enter the market, whether system shows you, it’s running up, you don’t know why yet, or you don’t know why, but you get in, but there are certain areas that give you that high probability trades. That’s where you want to enter the market.

What is this system really going to do? It’s gonna give you certain knowledge about the Forex market, especially in terms of price action and in terms of the motion of the market. People get involved without market and price action knowledge, and if you do so, you are looking for trouble. The MACD signal alone is not enough. You can not just act on the signal of the MACD itself and say right, it gives a signal, I’m pulling the trigger. You can not do that. You will see later, I’m gonna put a lesson about the anatomy of a trade. The order of the trade, the way you analyze it, the way you go about in your trade.

Right, the original document is still valid, I’ll come to that later on, but download all the attachments, if you go to the very first post on the system in the forum, you will see there are little stars, above the stars there is a paperclip, if you click there you can download all the attachments to the thread.

Introduction, part 2:

The original document and the Exercise, which you’ll find in post one, is still valid. It’s not that this summary, is by any means, canceling that out, it’s still valid. You’ve got to work through it, you’ve got to read it. All I want to say, that all these examples inside that document, I’m using there, was not given in the tend, that every trade has been taken, and that are perfect trades that you only trade that way. The only reason the document was given like that was to give you an idea of what was going on around the system. That’s why the system is difficult to follow, you have to read through the whole thread to get the grasp of it, the document alone can not, if I had to do that in wording, typing it down, I would have been sitting here for 2-3 month doing it. That’s why I was not prepared to did, it was prepared to sit every night, an hour or so, spend time with you people and develop the system as it goes. Have that interaction, because to me a piece of paper it dead, there is no emotion in. While someone is talking to you, you can hear his emotion. If he writes to you about specific questions, you can hear his mind. Where with a piece of paper you got to make your own perceptions of what a guy is really saying. So, that’s why I said the document only gives you a background of what the system is like, and then the rest of the thread actually develops that thing further.

You’ve got to practice the exercise, there is a pdf. document – Exercise, you’ve got to work through that, and really work through that! What I mean by that is go and sit down, write down, make yourself a summary, write it down. And then you take another piece of the graph, of any currency, especially the one you like, take a piece, analyze it, and decide for yourself in the similar fashion like that Exercise: how would you have traded that period, not just quickly with a mouth, oh yes, there is a MACD signal, and quickly that would have given me 20 pips… That is eyesight backtesting, but go and sit drown, draw trend lines, see whether MACD is giving a signal, do you analysis and write it down, and that’s the only way you are going to practice this thing is by doing that. When it comes to trading the Exercise part should have been finished already, you should work on money management, and you should work on emotions, when it comes to trading. When trading, when it’s on the floor, as they say, all the learning, all the practicing must have been done. This is a real thing now. What happens there, is decisions, money management and emotions.

Right, then the set-up of the platform I’m using MT4 (Metatrader 4), I’m in GMT + 2, currently with GMT shift + 1. Setting up of the Moving Averages – you’ve got to learn that, but the MACD indicator for the Metatrader is to be found on page 274, post 4101. It was on the previous posts as well, but I saw someone has posted it, so I just thought I would give it to you people, so you can download it. But what you can do, as I said on the previous introduction, you can go right in the beginning, you go back to trading systems, on the forum and then you find “the 4Hour MACD Strategy”, and when you get that, you will see that there are some stars on the right hand side, not really hundred percent on the right, let me just quickly have it open … Yes, it’s about sixty percent to the right of the page, you’ll see there is some rating, there are five stars and above stars there is a paper clip, and when you click on that, you’ll get all the attachments in the thread. Download those pdf. files and if you can download the mp3 (the zip file) - listen to them. Some of them might not make sense, because you won’t have the graph in front of you, but some of them are just normal info, and it’s very helpful. So, go and do that and make sure you understand all the signals. Don’t bother how it works, but that’s also in the document. I’m not going to spend very much time in the summary about the signals, I’m referring you now to the original document. Go there, study those signals, know them and what I’m going to do is later on is give the signals and give you the short code, like: the Trend Continuation – TC, Round Top is – RT, Round Bottom is – RB. Just to give you an idea, that when we talk about RB, you know it’s a Round Bottom. If I’m talking about R:R – is risk to reward ration, if I’m talking about RR ration – it means your risk/reward ratio. When you are prepared to risk 30 pips to make 30, it’s one to one ratio, that’s what I refer to if I say RR ratio.

Well, that concludes the introduction part 2. The next one will be the Tsunami, so see you there.

Source: (Phillip Nell “4 Hour Strategy (300 + Pips per Month))