0 Windy Flag Candle Formation

I call this Formation as Windy Flag Candle.It's happened after having high trend  then market move in choppy and perform the formation as like flag fluttering.The Choppy candles do not too movedown or up. Ok I will describe this with image below:

Above is like Flag fluttering so I call Windy Flag Formation.

This is powerful formation.The next high probality is UP.

Here's the result:

Click to Enlarge

And Market is still moving UP...


Rules:
1. Recommended PAIR: E/U
2. Trade on TREND market.
Ex: Yesterday,In EURO/AMERICAN session market moved in TREND then entering the ASIAN session having a flat.So today in EURO session,you can enter MARKET with BUY position.

3. Do not take too much profit.Only  20-40 pips enough.

More sample

Result:

Click to Enlarge

Note:
This Formation can also be used in DOWNTREND.Just see the opposite rules above

0 Chaos Theory the Forex Strategy

It’s important to understand the meaning of chaos in order to understand correctly Bill Williams' Chaos Theory. Traditionally chaos is considered tobe a disorderly structure, though in fact it is much higher level of order.Chaos is permanent, but stability is temporary. Financial markets result from chaos.

Bill Williams developed unique trading concepts by combining trading psychology with the Chaos Theory and its particular effect on the markets. He suggested that rewards from trading and investing are determined by human psychology and that anyone can become a profitable trader/investor if they uncover hidden determinism in seemingly random market events.

Bill Williams says that fundamental or technical analysis can not guarantee steady profitable results because they do not see the real market. Moreover, Bill Williams says that traders lose because they rely on different types of analysis,which are useless in nonlinear dynamic models, i.e. the real markets.Trading is a psychological game, the way of self-realization and selfknowledge,so the best way to become successful is to find your trading self, to get to know it better and to follow it no matter what. Thus, there are two significant aspects: self-knowledge and understanding of the market structure.

It is Bill Williams' view that making money can be easy if you understand the market structure. In order to do this you should be aware of the market's inherent parts called dimensions, each of which adds to the total picture.

These market dimensions are:
1. Fractal (phase space)
2. Momentum (phase energy) - Awesome Oscillator
3. Acceleration / Deceleration (phase force)
4. Zone (phase energy / force combination)
5. Balance Line (strange attractors)
It is worth mentioning that before the first dimension (Fractales) generates a signal, all signals generated by other dimensions should be ignored. Once the position is open in the direction of the first fractal signal, the trader “adds-on”to this position every time a signal from other dimensions is generated. As a
result, a 30% market movement gives the opportunity to make a profit of 90-120%.

Bill Williams' method to exit the market is very sensitive to price movements,so it helps to fix profit within the last 10% of the trend, capturing not less than 80% of the movement. Bill Williams' theory has become very popular among Forex traders.


Source: Forex Killer

0 Trend Indicators

Moving Average

Moving average is the average of prices over a specified number of periods. It is a smoothed correlation between currency rates and time periods. The time period of any moving average defines how much it will be smoothed. For example, when a Moving Average is calculated by adding the closing prices for the last 5 bars, then it is defined as a 5-period MA.

Simple Moving Average — SMA:
SMA = (P1+P2+P3+….+Pn) / n
P= Price — price of i-bar. Usually closing prices are used.
n — MA period. This is a number of bars on which the indicator is calculated.
The main disadvantage of SMA is that it counts the price twice, when it is received and when it leaves the area of calculation. That is why improved variants of the indicator should be better used.

Weighted Moving Average (WMA):
WMA = (w1*P1+w2*P2+w3*P3+….+wn*Pn) / (w1+w2+w3+…+wn) wi — the so called weight or coefficient which is assigned to every price. The closer the price to today the larger coefficient is assigned.

Exponential Moving Average (EMA):
EMA(t) = EMA(t — 1) + (K x [Price(t) — EMA(t — 1)],
where t — current time period (current bar),
t — 1 — previous time period (previous bar),
K = 2 / (n + 1),
n — EMA period.

The main advantage of the Exponential Moving Average (EMA) is that it discounts both prices of the previous and current periods. Every subsequent value becomes more significant. MA length is better to choose for every specific instrument on which you trade and for every specific chart scale.
Some traders believe that it is better to use Fibonacci figures. For example, the following ones.

How to analyze Moving Averages:
If the price line crosses the Moving Average line from below, then this is a signal to buy. If it crosses from above, then it is time to sell.

The first method gives many false alarms as markets become faster each year.
That is why cross-points of two Moving Average indicators of different periods
are used (n1 and n2);

Moving Average indicators of a greater period may specify the trend themselves. When the value of the indicator is more than 40 it becomes less sensitive to price movements and indicates only the general direction of the movement (Trend);

The points of the most significant divergence of MA and the price chart indicate that the market is overheated greatly and correction is possible.Moving Average signals are more effective on a trend market and less effective when the market is flat. As MA is a lagging indicator, it gives many false alarms.


Source: Forex Killer

0 Fundamental Analysis in the Forex Market

Traders typically approach financial markets in one of two ways: either through technical analysis or fundamental analysis. The reality is that history is full of traders who have had very successful careers as traders that employed both of these types of analyses.

In fact, in Jack Schwager’s best-selling classic, Market Wizards, two of the traders interviewed are Ed Seykota and Jim Rogers. Rogers is quite adamant in his statement that he believes it is impossible to make a living as a technical trader. He goes so far as to say he has never met a rich technician. Seykota actually shares the exact opposite story. According to Seykota’s own interview, he was a struggling trader when he traded according to fundamental analysis. It was not until he became a technician that he started to make a living trading financial markets.

As stated, successful traders throughout history have employed both technical and fundamental analysis. In this article we are going to break down the basic principles of fundamental analysis in the forex market.

Fundamental Analysis is commonly defined as a method of evaluating a specific security in order to determine its intrinsic value by analyzing a host of economic and financial data. In the foreign-exchange market, a security would be a currency. Market participants are continually analyzing the emerging fundamental from a country in order to determine the intrinsic value of the country’s currency. There are several key economic indicators that every trader should understand on a basic level. Fluctuations in the data of these key indicators will generally cause the value of a currency to rise and fall.

Interest Rates

These are the single greatest driver of currency value over the long-term. Most Central Banks announce interest rates each month, and these decisions are watched very scrupulously by market participants. Interest rates are manipulated by Central Banks in order to control the money supply in an economy. If a Central Bank wants to increase the money supply, it lowers interest rates, and if it wants to decrease money supply it raises interest rates.

Gross Domestic Product (GDP)

GDP is the most important indicator of economic health in a country. A country’s Central Bank has expected growth outlooks each year that determine how fast a country should grow as measured by GDP. When GDP falls below market expectations, currency values tend to fall and when GDP beats market expectations, currency values tend to rise.

Inflation

Inflation destroys the real purchasing power of a currency, and, therefore, inflation is very bad for the economy in most circumstances. Each year a normal rate of inflation between 2-3% is expected, but if inflation begins moving beyond the upward targets set by the Central Bank, a currency value will actually rise due to expectation of an imminent rate hike. Higher interest rates tend to fight off inflation.

Unemployment

We will discuss consumer demand in a moment, but people are basically what drive economic growth; therefore, unemployment is the backbone of economic growth. When unemployment levels increase, it has a devastating effect on economic growth; consequently, when the labor market contracts and unemployment increases, interest rates are often cut in an attempt to increase the money supply in the economy and stimulate economic growth.

Consumer Demand

As stated in the previous point, people are what drive economic growth; as a result, healthy consumer demand is essential to the normal, healthy functioning of an economy. When consumers are demanding goods and services, the economy tends to move forward, but when consumers are not demanding goods and services, the economy falters.

Even if you are a technical trader, it can still be very helpful to understand these basic elements of fundamental analysis. The best forex course will oftentimes offer further insight into how the emerging fundamentals drive price behavior.

0 Step by Step to Create Your Own Trading System

It is not easy to find your own style of trading system.Spending a long times,a lot of money.Searching arround the internet.Try and error.And it's not a guarantee you will definitely find it.Have you ever experienced anything like that?
 Why do not you create your own Trading System?

You can Create as like as you want the System will appear on the chart.This way is not about mastery coding.Actually,I will tell you how to combine several indicator into a trading system.

 Step by Step to Create Your Own Trading System,here you are:

1. Place some of your favorit indicators into folder C:\Program Files\MetaTrader 4 \experts\indicators.
Before you do it,at first you have to think in your mind that the indicators you choose are your best ones.Do you want the best result?That is it.

2.Open chart.
After chart opened. Choose the PAIR where you want the System has the best perfomance on it.

3. Attach the indicators.
Make the best setting one by one of the indicators.Note that you have not to attach many indicators on the chart,only one even nothing is enough if you think it is what you want to.

4.Appearance setting
Do this if you feel happy when you see the appearance of chart you made.At least it will help you in trading.It does not make you bored when to linger in front of chart.
Do the steps below:

• Right Click--> Select properties.

• Make you best setting for your new system.

Click 'OK'.And see the result.Or repeat it again,until you get your perfect setting.

5. Create Template

See image:
Click the arrow on the Tab Template




Click 'Save'.Your Trading System has been created. Don't forget to use BT tools to know perfomance of your new System.

6. The last step,Save Your System.

• Go to : C:\Program Files\MetaTrader 4\experts\indicators, find the indicators of your trading System.Copy/paste to new Folder,example name: 'indicators'.
• Go to : C:\Program Files\MetaTrader 4\templates,find your template.Copy/Paste to new Folder.Example name: 'Template'
• Create your own rule of your Trading System.Save to new folder.For example: ' User Guide'.
• Create New Folder again,give the name of your System then place all folders above into here.
• Place the last Folder to the safe drive.

Please note that to create the Trading System by this way,you have to select and combine the indicators that support each other.So No missing performance.

Good luck!

0 Simple Strategy to Predict the Market Direction

This Method is about reading candle pattern.Without any indicators,naked trading.Because we believe that candle is the best method to predict the market as long as we can read the pattern that has been formed.This way is very simple but need a little experience to apply into real trading.

Simple Strategy to Predict the Market Direction,step by step:

1.Open Chart.
Open chart in all time frames.H1,H4,D1 and W1.In the same PAIRS.Don't load any indicators so the chart looks clearly.

2. Look at TF W1
To predict the long Trend ( several next weeks direction),open W1 and see pattern that has been formed.This is to avoid the BIG floating if the market is not as we predicted.Here's the example:

The market was weakening and start reversal.The best probality of the pattern is that market will bear.

2.Open TF D1.
By opening D1, at least we will know where the direction of the market in the coming week

 Why should we drawed the Up direction at the last candle?
Because we see the long tail at the bottom that indicates the pressure from buyers.A little UP trend on the next several hours may be going to happen.

3. Open TF H4

At the same time,open TF H4.The image above is the pattern that formed in TF H4.Weakening trend shown by the several short candles.Also there is Bulish pattern in the last candle.That is good!
We can predict that Market has a high probability to move UP.

4.Open TF H1
At the last time, open TF H1 to make conclusion.

By opening higher Time Frame : W1,D1 and H4 then we make a conclusion in the time frame H1.The result is like as you see at the image above.

That is the Simple Strategy to Predict the Market Direction.
Sorry we can't  make long description of the strategy.We adjust to the post title" Simple..."so the description is Simple too.^_^
Hopefully the strategy will help you on trading.

In the last words,we will provide the useful wise sentence:

"TRADE WITH WHAT YOU SEE NOT WHAT YOU THINK"

0 The 5 Steps to becoming a trader

I rewrite this article from e-book that no name as author.I think this is usefull for us to be learned as knowledge about Trading.

The 5 Steps to becoming a trader

Step One: Unconscious Incompetence.
This is the first step you take when starting to look into trading. You know that its a good way of making money because you've heard so many things about it and heard of so many millionaires. Unfortunately, just like when you first desire to drive a car you think it will be easy - after all, how hard can it be? Price either moves up or down - what's the big secret to that then – let’s get cracking!

Unfortunately, just as when you first take your place in front of a steering wheel you find very quickly that you haven't got the first clue about what you're trying to do. You take lots of trades and lots of risks. When you enter a trade it turns against you so you reverse and it turns again and again, and again.

You may have initial success, and thats even worse - cos it tells your brain that this really is simple and you start to risk more money.
You try to turn around your losses by doubling up every time you trade. Sometimes you'll get away with it but more often than not you will come away scathed and bruised You are totally oblivious to your incompetence at trading.
This step can last for a week or two of trading but the market is usually swift and you move on the next stage.

Step Two - Conscious Incompetence
Step two is where you realize that there is more work involved in trading and that you might actually have to work a few things out. You consciously realize that you are an incompetent trader - you don't have the skills or the insight to turn a regular profit.
You now set about buying systems and e-books galore, read websites based everywhere from USA to the Ukraine and begin your search for the holy grail. During this time you will be a system nomad - you will flick from method to method day by day and week by week never sticking with one long enough to actually see if it does work. Every time you come upon a new indicator you'll be ecstatic that this is the one that will make all the difference.
You will test out automated systems on Metatrader, you'll play with moving averages, Fibonacci lines, support & resistance, Pivots, Fractals, Divergence, DMI, ADX, and a hundred other things all in the vein hope that your 'magic system' starts today. You'll be a top and bottom picker, trying to find the exact point of reversal with your indicators and you'll find yourself chasing losing trades and even adding to them because you are so sure you are right.
You'll go into the live chat room and see other traders making pips and you want to know why it's not you - you'll ask a million questions, some of which are so dumb that looking back you feel a bit silly. You'll then reach the point where you think all the ones who are calling pips after pips are liars - they can’t be making that amount because you've studied and you don't make that, you know as much as they do and they must be lying. But they're in there day after day and their account just grows whilst yours falls.
You will be like a teenager - the traders that make money will freely give you advice but you're stubborn and think that you know best - you take no notice and overtrade your account even though everyone says you are mad to - but you know better. You'll consider following the calls that others make but even then it wont work so you try paying for signals from someone else - they don't work for you either. You might even approach a 'guru' like Rob Booker or someone on a chat board who promises to make you into a trader (usually for a fee of course). Whether the guru is good or not you won’t win because there is no replacement for screen time and you still think you know best.
This step can last ages and ages - in fact in reality talking with other traders as well as personal experience confirms that it can easily last well over a year and more nearer 3 years. This is also the step when you are most likely to give up through sheer frustration.
Around 60% of new traders die out in the first 3 months - they give up and this is good - think about it - if trading was easy we would all be millionaires. another 20% keep going for a year and then in desperation take risks guaranteed to blow their account which of course it does.
What may suprise you is that of the remaining 20% all of them will last around 3 years - and they will think they are safe in the water - but even at 3 years only a further 5-10% will continue and go on to actually make money consistently.
By the way - they are real figures, not just some I’ve picked out of my head - so when you get to 3 years in the game don’t think its plain sailing from there. I’ve had many people argue with me about these timescales - funny enough none of them have been trading for more that 3 years - if you think you know better then ask on a board for someone who's been trading 5 years and ask them how long it takes to become fully 100% proficient. Sure i guess there will be exceptions to the rle - but i havent met any yet.
Eventually you do begin to come out of this phase. You've probably committed more time and money than you ever thought you would, lost 2 or 3 loaded accounts and all but given up maybe 3 or 4 times but now its in your blood One day – In a split second moment you will enter stage 3.

Step 3 - The Eureka Moment
Towards the end of stage two you begin to realize that it's not the system that is making the difference. You realize that its actually possible to make money with a simple moving average and nothing else IF you can get your head and money management right You start to read books on the psychology of trading and identify with the characters portrayed in those books and finally comes the eureka moment. This eureka moment causes a new connection to be made in your brain. You suddenly realise that neither you, nor anyone else can accurately predict what the market will do in the next ten seconds, never mind the next 20 mins.
Because of this revelation you stop taking any notice of what anyone thinks - what this news item will do, and what that event will do to the markets. You become an individual with your own method of trading
You start to work just one system that you mould to your own way of trading, you're starting to get happy and you define your risk threshold.
You start to take every trade that your 'edge' shows has a good probability of winning with. When the trade turns bad you don't get angry or even because you know in your head that as you couldn't possibly predict it it isn't your fault - as soon as you realise that the trade is bad you close it . The next trade or the one after it or the one after that will have higher odds of success because you know your system works.
You stop looking at trading results from a trade-to-trade perspective and start to look at weekly figures knowing that one bad trade does not a poor system make. You have realised in an instant that the trading game is about one thing - consistency of your 'edge' and your discipline to take all the trades no matter what as you know the probabilities stack in your favour.
You learn about proper money management and leverage - risk of account etc etc - and this time it actually soaks in and you think back to those who advised the same thing a year ago with a smile. You weren't ready then, but you are now. The eureka moment came the moment that you truly accepted that you cannot predict the market.

Step 4 - Conscious Competence
You are making trades whenever your system tells you to. You take losses just as easily as you take wins You now let your winners run to their conclusion fully accepting the risk and knowing that your system makes more money than it looses and when you're on a loser you close it swiftly with little pain to your account You are now at a point where you break even most of the time - day in day out, you will have weeks where you make 100 pips and weeks where you lose 100 pips - generally you are breaking even and not losing money. You are now conscious of the fact that you are making calls that are generally good and you are getting respect from other traders as you chat the day away. You still have to work at it and think about your trades but as this continues you begin to make more money than you lose consistently.
You'll start the day on a 20 pip win, take a 35 pip loss and have no feelings that you've given those pips back because you know that it will come back again. You will now begin to make consistent pips week in and week out 25 pips one week, 50 the next and so on.
This lasts about 6 months

Step Five - Unconscious Competence
Now we’re cooking - just like driving a car, every day you get in your seat and trade - you do everything now on an unconscious level. You are running on autopilot. You start to pick the really big trades and getting 200 pips in a day doesnt make you any more excited that getting 1 pips.
You see the newbies in the forum shouting 'go dollar go' as if they are urging on a horse to win in the grand national and you see yourself - but many years ago now. This is trading utopia - you have mastered your emotions and you are now a trader with a rapidly growing account.
You're a star in the trading chat room and people listen to what you say. You recognise yourself in their questions from about two years ago. You pass on your advice but you know most of it is futile because they're teenagers - some of them will get to where you are - some will do it fast and others will be slower - literally dozens and dozens will never get past stage two, but a few will.
Trading is no longer exciting - in fact it's probably boring you to bits - like everything in life when you get good at it or do it for your job - it gets boring - you're doing your job and that's that.
Finally you grow out of the chat rooms and find a few choice people who you converse with about the markets without being influenced at all. All the time you are honing your methods to extract the maximum profit from the market without increasing risk. Your method of trading doesn’t change - it just gets better - you now have what women call 'intuition'
You can now say with your head held high "I'm a currency trader" but to be honest you don’t even bother telling anyone - it's a job like any other. I hope you’ve enjoyed reading this journey into a traders mind and that hopefully you’ve identified with some points in here.
Remember that only 5% will actually make it - but the reason for that isn’t ability, its staying power and the ability to change your perceptions and paradigms as new information comes available.
The losers are those who wanted to 'get rich quick' but approached the market and within 6 months put on a pair of blinkers so they couldn’t see the obvious - a kind of "this is the way i see it and thats that" scenario - refusing to assimilate new information that changes that perception.
I’m happy to tell you that the reason i started trading was because of the 'get rich quick' mindset. Just that now i see it as 'get rich slow' If you’re thinking about giving up i have one piece of advice for you .... Ask yourself the question "how many years would you go to college if you knew for a fact that there was a million dollars a year job at the end of it? Take care and good trading to you all.

I left of the name of the author of this piece by mistake. If anyone knows the name of the true author, please let me know and I'll add it here. Thanks and sorry for the confusion. Dial

0 The NickB's 4H Scalping Trading Method

The setup for the trades is simple...

Pair: GBP/JPY
Timeframe: 4 hour
Indicators: NONE!!

What we want to do first is to find recent swing highs and swing lows where the price has hit and made a significant reversal. Here are some examples.

At each of the orange lines price changed direction and moved, over many 4 hour candles, hundreds of pips away. These orange lines are called scalp lines.
So what do we do with these scalp lines?? You trade them! When the price returns to a scalp line you simply place a trade on the break of the line using a 50 pip stoploss and a 50 pip takeprofit. That's all there is to it!
Here is an example of a scalp line break:

Not only are these trades easy to find, they can be taken with pending orders! So if you work full-time this is a great method to use!
If anyone has any questions or comments feel free to post them. And, just to be clear, this is not my system. It was developed by Nick Bencino, aka NickB.

Here's a copy of Nick's ebook that describes his entire system.



Download


How to download : Click here

0 Miracle CandleStick Chart Trading Strategy - Open Position

Candlestick charts display the open, high, low, and closing prices in a format similar to a modern-day bar-chart, but in a manner that extenuates the relationship between the opening and closing prices. Candlestick charts are simply a new way of looking at prices, they don't involve any calculations.
This method is based on break out period from 14.00 (GMT) to 16.00 (GMT) of major USD currency pairs. You have to check your broker time zone to indentify the correct period on your chart. In this book, I assume that the time on chart is in GMT.

Do the follow to set up your chart:

- Open a 15-minutes chart on a USD major currency pair such as GBP/USD
- Draw a vertical line at 14.00 time on your chart (again this is GMT time)
- Draw another vertical line at 16.00 time on your chart (GMT time)
- Draw a Horizontal line at the highest of candles/bars in between the vertical line.
- Draw a Horizontal line at the Lowest of candles/bars in between the vertical line.


* Then you have the following chart

Entry rules

- Put a buy stop at the high stop loss at the low

- Sell stop at the low with and stop loss at the high



Take Profit Target

The profit target is set at 40-80 pips.

Note:

- If the Distance between the highest and lowest is less than 50-60 pips, it could be very profitable
- If the Distance between the highest and lowest is more than 50-60 pips, it could be not very profitable
- There are always nine candles between two vertical lines.
- The USD news are usually released around or after the 14:00-16:00 GMT phase
- The USD news are usually released around or after the 14:00-16:00 GMT phase
- The signals are only valid for the current day. You have to wait for the 14.00-16.00 period to trade the next day


TRADES EXAMPLE'S

LONG TRADES

GBP/USD
First, we open a 15 minute chart for GBP/USD. We draw two vertical lines at 14.00 and 16.00 GMT time. We draw 1 horizontal line at the highest point between two vertical lines (at 1.6354) and another horizontal line at the lowest point between two vertical lines (at 1.6314). We notice that the distance between the highest and the lowest is 40 pips, so this set up would be very potential. We set a buy stop at 1.6354 with stop loss at 1.6314 and a sell stop at 1.6314 with stop loss at 1.6354. Our target profit is set at 40 pips.
Later on of the day, the price breaks the lowest level and triggers our sell stop at 1.6314 and continues move down. The trade is closed when it hit the profit target which is at 40 pips.

AUD/USD

First, we open a 15 minute chart for AUD/USD. We draw two vertical lines at 14.00 and 16.00 GMT time. We draw 1 horizontal line at the highest point between two vertical lines (at 0.6800) and another horizontal line at the lowest point between two vertical lines (at 0.6750). We notice that the distance between the highest and the lowest is 50 pips, so this set up would be very potential. We set a buy stop at 0.6800 with stop loss at 0.6750 and a sell stop at 0.6750 with stop loss at 0.6800. Our target profit is set at 60 pips.
Later on of the day, the price breaks the lowest level and triggers our sell stop at 0.6750 and continues move down. The trade is closed when it hit the profit target which is at 60 pips.

EUR/USD

First, we open a 15 minute chart for EUR/USD. We draw two vertical lines at 14.00 and 16.00 GMT time. We draw 1 horizontal line at the highest point between two vertical lines (at 1.3640) and another horizontal line at the lowest point between two vertical lines (at 1.3600). We notice that the distance between the highest and the lowest is 40 pips, so this set up would be very potential. We set a buy stop at 1.3640 with stop loss at 1.3600 and a sell stop at 1.3600 with stop loss at 1.3640. Our target profit is set at 80 pips.
Later on of the day, the price breaks the lowest level and triggers our sell stop at 1.3600 and continues move down. The trade is closed when it hit the profit target which is at 60 pips.

SHORT TRADES

USD/CHF
First, we open a 15 minute chart for USD/CHF. We draw two vertical lines at 14.00 and 16.00 GMT time. We draw 1 horizontal line at the highest point between two vertical lines (at 1.0933) and another horizontal line at the lowest point between two vertical lines (at 1.0900). We notice that the distance between the highest and the lowest is 33 pips, so this set up would be very potential. We set a buy stop at 1.0933 with stop loss at 1.0900 and a sell stop at 1.0900 with stop loss at 1.0933. Our target profit is set at 50 pips.
Later on of the day, the price breaks the highest level and triggers our buy stop at 1.0933 and continues move up. The trade is closed when it hit the profit target which is at 50 pips.

EUR/USD
First, we open a 15 minute chart for EUR/USD. We draw two vertical lines at 14.00 and 16.00 GMT time. We draw 1 horizontal line at the highest point between two vertical lines (at 1.3930) and another horizontal line at the lowest point between two vertical lines (at 1.3900). We notice that the distance between the highest and the lowest is 30 pips, so this set up would be very potential. We set a buy stop at 1.3930 with stop loss at 1.3900 and a sell stop at 1.3900 with stop loss at 1.3930. Our target profit is set at 50 pips.
Later on of the day, the price breaks the highest level and triggers our buy stop at 1.3930 and continues move up. The trade is closed when it hit the profit target which is at 50 pips.

USD/CAD
First, we open a 15 minute chart for USD/CAD. We draw two vertical lines at 14.00 and 16.00 GMT time. We draw 1 horizontal line at the highest point between two vertical lines (at 1.2189) and another horizontal line at the lowest point between two vertical lines (at 1.2160). We notice that the distance between the highest and the lowest is 29 pips, so this set up would be very potential. We set a buy stop at 1.2189 with stop loss at 1.2160 and a sell stop at 1.2160 with stop loss at 1.2189. Our target profit is set at 60 pips.
Later on of the day, the price breaks the highest level and triggers our buy stop at 1.2189 and continues move up. The trade is closed when it hit the profit target which is at 60 pips.

*Read one by one strategy carefully so you can understand our strategy well.

*Trade on demo account first before you apply this strategy to real money.

Happy Trading !!

0 The Pin Bar : Some Final Thoughts

Remember that it is fine to trade less frequently than everyone else. If 90% of forex traders will fail it is because many of these traders have ‘an itch’ to trade and feel that they need to be making many trades to make good money. Do not be like them. Select the best pins and aim for longer time frames if you want to gain money. When Jim is providing trading examples he explains that good traders should be hunting with a rifle from the bushes – they wait for the best setup (using pin bars in this case) then nail the trade. Over a one month period you may only find one good pin bar setup for each currency pair.
 If you look at six currency pairs this would be six good pin bars in a month. This might be all you trade for the month but traders can still make good money by exercising patience this way. Jim recommends that traders who are new to using pin bars use the 4-hour time period as the minimum time period and only try trading on time frames smaller than this when more experienced. Daily and weekly pins are better and are more reliable.
Also note that if you trade with longer time periods you will have much larger stops; the range of price movement in a 1 week period is considerably greater than the range of price movement in a 4 hour period. It may be necessary to carefully select a broker that allows you to have micro-lots ($1000 lots) so you can put on a position size that suits your risk. (Some brokers such as roboforex.com which allows you to take a position of any dollar size! This is not a recommendation as to which broker you use but to point out that a trader with a small account size can efficiently manage risk even with large stop losses.)

Playing daily or weekly pins also means that you are not glued to your computer. You can check in a couple of times a day to monitor your trades and shift your stop losses as appropriate. Demo trade pin bars first. When you can trade them profitably for 3 months then open a small account (with a broker like Oanda.com that provides a lot of flexibility in position sizes, or another broker that allows micro-lots to be traded). Trade with the money in this account until you can trade profitably for three months. Make sure you are using small position sizes when you start to trade using real money. Then begin to trade with your full size account or with larger position sizes.

FijiTrader has recommended to some new traders that they start trading risking a small amount of their trading capital with every trade. An appropriate level to start at may be 0.5% (yes, half a percent) of the trading capital. This allows new traders to become used to the emotional and psychological aspects of trading real money. Each week the amount risked may be increase by 0.1% until the trader reaches a position size that they are finally comfortable risking on each trade (probably 2-3%).


Hope be usefull..

0 Finding the Pin Bars

The purpose of this section is to give several examples of what a pin bar looks like. Take a look at Figure 5 and the bars that have been numbered (either below or above the bar in question). The chart shows the daily charts for the GBPUSD pair for a period from the 20th January 2006 to the 23rd February 2006. Look at the image and decide whether the numbered bars are good pin bars to trade, based on how they look and where they are. Decide which of these bars, if any, you would trade. See if your comments match those made below.

1. This bar has good form. The open and close are nearly equal and they are very close to one side of the bar (in this case, the bottom) and are lower than the previous eye. But the nose is not very long and it doesn’t protrude much from the prices of the previous eye and the bar before it. 
2.  The open and close are nearly equal and are quite close to one side of the bar (in this case, the high) and are also higher than the previous eye. The nose is not very long and it does not protrude much from the previous eye.
3. The open and close for this bar are nearly the same but they are getting quite close to the middle of the bar – it is almost a neutral bar. It is good that the open and close are above the previous eye. The nose is not very long because of this. (Note that if you played this pin on a break of the pin bar (taking a long position) there would have been no trade as prices went down on the next bar.) 
4. The open and close are nearly the same but they are also right in the middle of the bar. It is also an inside bar (or very close to it) where the bar makes a lower high and a higher low than the previous bar – so prices are not protruding.
5.  The open and close are near the same price and are right near one end of the bar and are lower than the previous eye. The nose is nice and long, which is good, and protrudes nicely from previous prices. This would have been a good pin to play on the break and we can see that for the next two bars if we had taken a short position there would have been good opportunity to profit from the setup.
6. For this bar the open and close are near one end of the bar and are higher than the eye. Note that the nose doesn’t stick out much beyond the low of the bar that has been numbered 4, so prices have not protruded much. If we look at the next bar we see that prices only go 5 pips above the high of bar number 6, so we would have not entered a long trade anyway. 
7. The open and close are not at nearly the same level and the close is nearly half way down the bar and is not higher than the low of the previous eye! The nose does protrude from the prices, but because of the position of the close this is not a pin bar! 
8.  In contrast, the close of this bar IS within the previous eye, but it is still half way up the bar! The nose also doesn’t protrude much beyond the previous prices. Overall, this would not be a good pin bar to play. 
9. Open and close are near one end and are enclosed by the previous eye. The nose is nice and long but fails to protrude from the surrounding prices much, so it would not be a good pin bar. 
10. The open and close are near one end of the bar. However, the nose does not stick out. Not a pin bar. 
11. This looks promising with open and close near one end of the bar. They are well placed compared to the first eye on the left. The nose sticks out a bit. This bar isn’t at a swing high or swing low or at confluence, though. 

Which of these pin bars should a beginner play? The bars numbered 1 and 5 seem to have the best form and have the best long noses that stick out from the surrounding prices. If you are patient over this one month period two pin bars would have been played. They both would have worked well with lots of potential for profit. YES it is easy to say this in hindsight but LOOK for the good pin bar formations while you are trading and try it out. (While trading GBPUSD over this period I personally only took the pin bar labelled 5 and this was the only daily pin bar I traded on the GBPUSD for that period.)

 By : Lincoln (a.k.a. lwoo034 at Forexfactory.com forums)  





Next....Some final thoughts

0 Trading the Pin and Managing Risk

This section discusses what to do once the trade has been entered and how to manage the risk during the trade.

 So, you’re in the trade - congratulations! Unfortunately entering the trade is simpler than exiting it correctly. Very often several traders in a forum will enter a trade based on pin bars yet one trader will make twice as much profit as another trader because of the differences in the way they exited the trade. The recommendations in this section are based on the following four premises:

1. Very few good pin bars (swing high/low or bouncing off confluence) will move directly to hit the initial conservative stops that trader has placed, without first giving the trader the chance to take some profits (this may happen roughly 10% of the time or less), 
2. Traders should take the profits as they are offered by the market,
3. Traders should NOT let a winner turn into a looser (this point has been reiterated by several experienced traders at the forexfactory.com forums). Hell, you’ve earned this profit; do not let the market take it back, and, 
4. There are PLENTY of opportunities to trade pin bars, be patient and take only the best pin bar setups! 

In essence is it important to close out part of the position early and learn to shift the stop loss to the break even point quite quickly. The first thing that a trader should try to do when playing a pin bar is close out the trade incrementally. This means that the trader closes part of their position early, at small profit. The benefits of doing this stem from the fact that it banks some profit (consistent winners are those that bank profit); the corollary of this is it reduces the number of lots that can then hit the stop loss (so it has reduced the remaining risk for the trade).

The trader can achieve this objective by splitting the total position into several distinct trades or lots. (Remember that no matter how it is split the total value at risk should not exceed your threshold.) The preferences of how the trade is split up and where the targeted profits are depend on the individual trader. It is best to take some profit initially at 20-30 pips profit (depending on the expected range of prices on the currency pair you’re trading and the time-frame you’re trading), then take more profit a little further on.

It is always uncertain how far a trade will run. Trades resulting from pin bars might run from one bar before the prices turns back, or they may run for many bars. Lock some profit in and leave a portion (1/2, 1/3 or 1/4) of your trade to run until completion. When you lock in your profit by closing out a portion of your trade early you have banked profit (realised profit as opposed to unrealised profit through having the position un-closed) and your total open position size has decreased, meaning that if there is a sharp reversal to your initial stops then the loss has been reduced by a reduced position size and already having banked some profit.
(If you do not understand this concept then please take a pen and paper and fiddle with some numbers and prove it to yourself.) After a trader has initially banked some of their profit they will want to consider shifting the position of the stop loss. Exactly how this is performed is up to the trader and will depend upon their own trading style. It is an important part of playing the pins, however, as successful traders do not want their winning trades to turn into losers!

“So when I get up [into a reasonably profitable position] on a trade the "golden rule" comes into play: never ever let a winner become a loser, for any reason, no matter the scenario …” -Vegas.

Once a trader has taken some profit and shifted the stop loss to the break even point they are in a “free trade”. All pressure is now off the trader, no matter what happens they have banked some profit on this trade and made some money. The trade can now run for large profits without the trader worrying about making a loss on the trade.

“Trading is about "free trades". Those of you who don't understand this concept need to stop trading until you do. It doesn't matter what method you use.” -Vegas.

Because we cannot know what will happen to the price in the future it is necessary that some profit be taken early. Selecting the BEST pin bars and exercising patience will mean that a trader can cherry-pick the pin bars with the highest chance of success. Around 70% of these will be quite profitable. If 10% just reverse to hit the initial stops, then these losses are more than made up for by the profits taken early on many other trades. Around 20% of good pin bar trades will good winners where the price runs and the final portion of the trade will be chasing big pips and bigger profits.

Can a trader prevent losses that may occur while you trade the pins? No. This is why it is wise to use the initial stops at the start of the trade. This means that the trader has defined the circumstances under which they know their trade setup has failed and they do not want to lose more money. Doing this indicates that the trader has accepted that there is some risk of the trade failing. These losses are the cost of doing business in the forex market – traders need to accept them.

By : Lincoln (a.k.a. lwoo034 at Forexfactory.com forums)  


Next....Finding the pin bars

0 Playing the Pin Bar

 This section details how the pin bar can be played. The advanced tutorial provides more details of how a more experienced trader might approach the pin bar. Traders that are new to pin bars may put a limit/stop order under the bottom of the pin bar. It is placed 10 pips under to account for a false break-out (unlikely to be 10 pips). When this order has been triggered then the trend will probably be heading in the opposite direction of the nose. This approach also means that the trade does not need to be monitored so closely.

One question that traders may want to ask themselves as they contemplate entering a trade is this: “When will I know if the trade has gone against me and this setup is not working?”
When you know how to tell whether or not your trade setup has failed and is not going to work you can begin to calculate how much risk you can take. These calculations are performed before placing orders so that the appropriate level of risk (on the basis of account size) may be determined so that an appropriate position size may be taken.

The conservative approach to placing stops is to place stops 10 pips from the end of the pin-bar/nose (the point where the prices are not going, far from the eyes). This level is acting as resistance now. The stop loss and entry orders are placed 10 pips away from highs and lows because sometimes prices will creep a little big past these highs or lows which can have a negative impact on the trade setup.
Traders need to discover their own preference for stops and risks based on the pin bar. The Advanced Tutorial gives some more ideas of how to enter and set the stop losses.


By : Lincoln (a.k.a. lwoo034 at Forexfactory.com forums)



Next .... Trading the Pin and Managing Risk

0 Introduction to Pin Bars

This section explains what the pin bar is. Following sections explain how it may be traded. Generally examples are only given for pin bars pointing one way. The same concepts can be applied to pin bars pointing the other way (just reverse the concepts!).

Trading is a probabilities game. There is always risk of loss and the trade going ‘the wrong way’ after the pin bar has formed. All we can expect to do is to tip the odds in our favour. When good pin bars are traded then a trader can tip the odds in their favour. Some trades will result in losses; such losses will occur with any trader from time to time. (Even a good pin bar setup may result in a loss!)

Looking at Figure 1 we can see what a completed pin bar looks like. See that this Pinocchio bar (which is abbreviated to ‘pin bar’) is poking his long nose outwards and is telling you a lie (an untruth) about where the price is going. The name is based on the old European story about the wooden boy, Pinocchio, whose nose grew longer every time he told a lie.
The bigger the lie the bigger the nose! For us this means that we want a nice long nose when we see a pin bar. We trade in the opposite direction to where the nose is pointing (so the pin bar in Figure 1 indicates that traders should be taking short positions while trading EURUSD). The high of the bars on either side of the pin are the ‘eyes’ for the pin bar. Note that the open and close of the pin must be within the left eye. For a nose pointing up, this means that if the high of the eye is roughly at the 1.2175 level (as shown in Figure 1), then the open and close of the pin bar must be below this level of 1.2175 (as is the case here). If the open/close is outside of this level then it is not a real pin bar (see the Advanced Tutorial for some ideas on how a trader might deal with a bar that looks like a pin bar but fails to meet this requirement).

The pin bar means that the price is going to move in the opposite direction to where the nose is pointing. In Figure 1 the nose is pointing up so the trader should expect prices to move down.
A pin bar must:
• have open/close within the first eye,
• protrude from surrounding prices (‘stick out’ from surrounding prices); it cannot be an inside bar.
A good pin bar has:
• a long nose (and a long nose relative to the open/close/low),
• a nose protruding a long way from the prices around it (it ‘sticks out’),
• the open / close both near one end of the bar.

The pin-bars can be played by themselves as they occur on the charts. One forexfactory.com member did some automated back testing and found that merely playing a pin bar does not provide spectacular results. You need to carefully select the pin bars you want to play. The best pin bars are played as they bounce off either:
1) Fibonacci levels (retracements of the previous move)
2) Important pivot levels
3) Moving averages
4) Confluence (several MA or Fib levels in the same general region)
5) Swing high / swing low
6) Retracement of the current move (must retrace a minimum of 23% fib retracement of the current move), which is a lower probability play.

For the BEST results a trader may play a pin-bar on the swing high (or swing low) or a pin-bar that is bouncing off confluence (of MA and Fib levels). The pin bar is a very reliable setup under these circumstances, indicating that there is a high probability that prices will change direction – which is very tradeable setup!
Shown is a cluster of Fibonacci retracement levels from the big moves down during 2005. Note that the pin bar is bouncing right off these. This means that the pin bar has bounced off an area of confluence!

Shown in Figure 2 is a close-up of the pin bar that formed on the EURUSD pair weekly chart. Notice that there is confluence of fib retracement levels from the more recent previous movements down. This pin bar has punched through these, after three previous bars were bouncing off this area. This would have been a good pin bar to catch. The three previous bars failed to move through this area, showing it has significant resistance. The pin bar has moved a long way through it before moving right back down again. The high made by the pin bar is probably the highest price that will reached for weeks (or months).

Is this a good pin bar formation? The nose of the pin bar pokes out a long way above previous prices. It has made it through some resistance at the confluence of fib levels and bounced off the longer-term fib levels (in Figure 2). The open and close are below the high of the previous bar (the eye). Yes – this is a good pin bar.



By : Lincoln (a.k.a. lwoo034 at Forexfactory.com forums)


Next.....Playing the pin bar

0 How to Create an EA Part 4

Previous Part 3,click here

The next function we have to make is a get signal function. because this ea using RSI indicator, so the code as follows:

And now, we make a send orders function to send order smoothly to the broker server.
Look at the following code:

if the function is successful, it will get the ticket number, if it fails, will the resulting number -1. Now we make the trailing stop function. See my code:


Then we make the move to breakevent function. This function use to move the stoploss to breakevent point. see this code:


we further utilize this function () referenced by MQL4.
The code that we used to put in the code for this function is to make EA adapt and work well on the broker with 4 digits or 5 digits pricing.
Besides this, the usual code placed here is the code to adapt a stoploss and Takeprofit EA with stoploss and Takeprofit minimum allowed by broker.
See this Code:

Then we continue with arranging a bit of code in the start () function. see what I have the chain:



Then we finish making this by completing deinit ea () function with this code:

then do backtesting in order to know whether this ea could work properly or not.
See results the backtest:




Happy trying.....

0 How to Create an EA Part 3

Previous Part 2,click here


Let us discuss the above code one by one:
1. # Property copyright "xxxx" code indicates ownership of an EA. This code works only when back testing course which will display the owner's name behind his name EA. See fig.

2. # Property link code indicates the maker EA link, in this case 'me'.

3. MagicNumber variable is used as an identifier order by EA. Only orders made by EA that has MagicNumber.

4. StartLot  variable indicating the amount of lots traded by EA basis. This variable is named StartLot Why? Because if the martingale feature enabled, This StartLot is the beginning of the arrangement lot of different magnitude

5. This StopLoss variable indicates stoploss levels if the market moves against.

6. Takeprofit variable shows how much our profit target in pips per order made by EA

7. TrailingStop variable shows how many pips in each direction will shift stoplossnya profit EA.

8. MoveToBreakEvent variable if set to true, after the price moves towards the profit of stoplevel + LockedPips, then stoploss will be moved to the opening price + / - LockedPips,depending on the type of orders

9. LockedPips read no. 8

10. RSIPeriod variable indicates the number of bars is calculated to obtain the value of RSI

11. UpperLevel variable to determine overbought

12. LowerLevel variable to determine oversold

13. Martingale variable if set to true, then the martingale function in this EA will be activated

14. This variable multiplier is multiplication factor that used to determine the amount of lots on the next order if the previous order is loss and the function of the martingale EA is enabled

15. DeepLevel  variable is used to determine how many levels deep martingale defeat of lot will be covered or duplicated over and over in the event of loss neberus row.

16. StartHour variables used to determine the clock starts trading

17. EndHour variables used to define the clock stops trading

Next we create an important function for this EA, the Counting Order Function.
More or less code of Counting Order Functions are as follows:

This function produces how many open orders are only made ​​by the EA. Other orders suppose we open another order both in the same pair or a different pair will not be counted.
Next we will create other functions that are not less important than the previous function.That is the checkforlosses function of the order  recently closed.

I use code like this:

advantage of this function it will still be able to recognize orders made ​​by EA and consider it a loss of orders or a profit even if the owner of EA makes a lot of orders manually.
Other functions that need to be made is lastlot. Lastlot used to determine lotsize of an order after found a loss by The CheckforLoss function above.

The code is like this:

 This Function is to calculate Lot amount even the martigale is actived or not


Continued......

0 How to Create an EA Part 2

Previous Part1,click here

8. This step can also be passed directly by clicking on "finish". If you do, then external variable can be typed directly from the MetaTrader. Such stiffened if not much time to do the coding
It will be opened MetaEditor with a view like this:

9. Expand worksheet so relieved and unsightly

after unfolded, it was clear that a single worksheet MQL4 (EA) consists of several parts. :
Part. 1. Header File: contains the author information or owners
Part. 2. Copyright and link properties
Bag. 3. Initialization function. this function to initialize some variables EA
that the coding deliberately inserted into it. This function works only one time that when you first drop into the EA in drawing this chart.
Part. 4. Deinitialization function. This function only works once when EA shut down
Part. 5. Start function. function is called and comes to work every time a new tick.

Then we make the Code for user input that more less like this:

Continued >>