Highly Effective Forex Trading System

A brief preview of an Extremely Effective and Simple
Forex Trading System

The full video course describes the system in detail.

WHAT YOU NEED TO GET STARTED

1. A computer, Internet connection,
2. A system to trade with such as my Pivot trading system.
3. A funded account at a forex market maker broker

You only need a few tools to locate profitable set-ups:

- Price
- Price Bars,
- MACD Divergence
- Pivot Point
- Breakout/test/violations
- Trendline breakout

That and of course your passion to succeed
is all it takes in this wonderful business
of Forex trading.

No other bells and whistles or toys are
required - contrary to what you may have
learned before.

The hardest part for you will be to
"unlearn" all the nonsense you've been
fed about trading prior to coming here.
(Just give your head a good shake;
maybe it will go away).

CHARTS

I use mainly daily, hourly, 15 minute,
and five minute charts. The daily chart
will help you define the overall trend
from a position trading point-of-view,
and the hourly chart will give you a
feel for the intraday trend.

The 15 minute chart is used for entry
and exit - with assistance from the five
minute chart, where price is moving
quickly, and you need to be closer to
the action. Please note that the five
minute is not to be used for scalping,
as there is a lot of noise there,
and you could easily get whipsawed.

Make sure you are using charts that
are generated from the same data source
that feeds the dealing engine, as is
the case with both platforms mentioned
above. That way, what you see is what
you get when you buy or sell. Some
charting packages do not accurately
reflect where price is at any given
moment in time.

PIVOT POINTS

My trading system is based on pivots.
Pivot points are targets, or mile markers,
used for assessing price movement and
determining direction.

If you're unfamiliar with pivot points
and how I use them, below is an overview.

Used by professional floor traders, pivot
trading is one of the oldest and most amazing
technical trading methods available.

Professional traders calculate pivot points
in preparation for each trading sessions.
The pivot lines system is an indispensable
guide for making profitable decisions.

For an active trader, the pivots can mean the
difference between winning and losing.

The Pivot techniques work well in markets with
a wide daily trading range, such as the Forex.
Pivot lines steers traders away from "no man's
land" and identifies "high activity" areas in
which the equity has a high probability of
reversal. These areas are important trading zone
watched daily by floor traders and computer
trading systems.

The levels for the trading ranges and pivots
are the support and resistance levels of the
market in the next time interval.

It is important to note that the predicted
levels only give the range in the next time
interval. They do not indicate when the levels
will be reached by the currency price action.

The pivot is a level at which the underlying
asset can be expected to change direction
and/or move rapidly away from.

My pivots program provides not only Pivot,
R1, R2, S1, and S2, but also the M1, M2, M3,
and M4 points as well. It is common to find
many traders calculating only the Pivot, R1,
R2, S1, and S2 levels. In the Forex market,
however, you will find my additional points
of support and resistance to be very significant
indeed.

The Forexmentor video course shows you how
to calculate the Pivot points using our
proprietary Pivot Calculator.

After you have calculated the pivot numbers
for the day, place horizontal lines on
your 15 minute and 1 hour charts at the
pivot numbers for the day, or at least as
many lines as your chart has room for.

These pivot points will guide your trading
throughout the day.

INDICATORS

I really only espouse one - MACD
(for divergence only).

MACD Divergence is covered extensively
in my course and my trading examples

MACD is my favorite indicator, and that
would be my choice. The nine and 18
exponential moving averages are okay
too to give you some sense of price
direction, but I am not a believer in
using moving averages for this market
- so am not too thrilled about their
application and use.

Go ahead and plot MACD on the charts
you are working with.

For Complete Mentorship

Learn Forex Trading - Part 2 - Technical Analysis

Forex trading education - Technical Analysis

As you learn forex trading, you will soon realize that there are two kinds of traders out there, may be three. There are those traders who learn forex trading focusing mainly on technical analysis, I am one of those. I will explain why shortly. And there are those who learn forex trading focusing mainly on fundamental analysis. And there are those who learn forex trading combining both technical analysis and fundamental analysis. If you came to this lesson directly, then you may want to check Learn Forex Trading Part 1

My market activity is based on technical analysis. In my opinion, technical analysis provides the short-term trader, a solid basis for making intelligent buy and sell decisions. While learning forex trading, I quickly realized that the effect of fundamentals are all reflected on my chart. In my opinion, fundamentals while useful at times, posseses therir greatest value when one is considering investment into forex over a long term basis. Even so, I would rather look at a weekly or monthly chart if I had to trade on a long term basis. But I am fully technical.

Technical analysis reveals proven price patterns, support and resistance, break-outs and break-downs, etc. These are proven tools for a short term trader like myself. Inspite of these, technical setups and charts are just there to give you a general view of the market and to help you assess the odds of a particular trade. Nothing is certain. Charting don't work all the time. At times they fail, even when this happen, it still reveals valuable information to the trader who learn forex trading by listening to what the chart is saying. What I have noticed while learning forex trading is that the charts don't lie.

Before I delve into some of the technical tools you will learn in your forex education, I will like to give you a practical assignment. There are many brokers out there. Open a demo account, so that you can follow me and do what I explain and you will see it all come to play and why you can become a discipline and successful trader in one of the most difficult profession in the world. Don't be scared though.

So go get a demo account. By the way, my broker is FXCM. I like FXCM. Get a demo from them. It takes just about 1 minute to signup for a demo account.

OK, did you get your demo account setup? Great. You are learning forex trading practically now. The technical tools, I will be explaining shortly are those I use on my charts. I am a short term trader, which means I trade intraday. 5 and 15 minute charts. Sometimes, I glance through the hourly chart to see the bigger picture for the day.

On my chart, I have just 3 technical tools:

1: Linear Weighted Moving Average 14

2: Simple Moving Average 14

3: Parabolic Sar

I will be explaining all these and other technical indicators later.

For now login into your demo account. That is your fxcm trading platform.

Step 1: Click on the menu charts - open charts - chose the time frame 5 minutes.

Step 2: Click on the insert and then Add Indicators. A list of indicators will show up.

The first indicator on the list is Simple moving average. Click on parameters and just change the number 10 to 14 and click OK.

Step 3: Repeat Step 2, but this time using Linear Weighted Moving Average.

Step 4: Add the indicator "SAR" Just scroll down the list you will find it. Click on it and click OK.

You are ready to place your first trade. Just watch what is happening with those three indicators on the chart. When price is below all three, you only have to sell. If price is above all three its time to buy.

Practice, watch the demo tutorial. There is alot to learn, but basically, I just gave you my daily trade setup. You will learn forex trading by practicing over and over again on a demo account for at least 3 months, before you venture to trade with your hard earn cash. This setup will not always work, but it does 90% of the time.

So technically what are those indicators and there others? Yes, there are many indicators, but you don't need to know them all, but it pays to at least have some knowledge of these indicators of these technical indicators.

If you completed your practical assignment, it is now clear that technical analysis based on 3 basic principles

1: Price accounts for everything. Price falls and price rises. The reasons for these back and forth movement is not important.

2: Price move in trend

3: History will repeat itself ( Recognizable chart patterns repeat itself)

So as you continue to learn forex trading, note that price movement is the most important element of your technical analysis.

In part 3 of Learn Forex Trading, you will learn more about the technical indicators.