Forex Trade secrets by a professional traderForex Trade secrets by a professional traderTrade secrets by a professional trader or what B. Williams, A. Elder and J. Schwager not told about Forex to traders. Articles
Book 2 Chapter 5 Currency Pair Reversal Points - Pivot Points.
2007-04-29 18:50:00 The currency pair pivot point is one of keystones in trading at Forex. First of all, let us introduce the following designations (notions), necessary for the subject. "High" is the maximum at the previous day; "Low" is the minimum at the previous day; "Close" is the price of closing at the previous day. Generally speaking, there are the three principal criteria. 1. There is the stock reserve (cruising range) - i.e., the difference between Low and High per the trading session. For instance, as regards GBP/USD pair, this difference can exceed 100 points in a trading day. 2. The reader must also consider the reversal point of the currency pair movement (the pivot point) in the daily trading session. Thus, it is easy to calculate the possible profit that could be gained by a trader regularly. 3. If "the trend is the friend" (see Book 1), it is necessary to work along the trend direction. Under these conditions, the detection of the trend pivot points can p... More About: Currency , Ever , Point , Pair
Book 2 Chapter 4 Technical Levels at Forex, Presented by Dow Jones's Agency
2007-04-29 18:24:00 For the work at Forex , every day each trader must detect technical levels of the resistance and support. As it is already mentioned in the previous chapters, detection of technical levels of the resistance and support is rather complicated. A trader (and the beginner especially) must clearly differ the levels of various currency pairs. Issuing from these criteria, one can project a commercial plan for the trading session and develop the daily working tactics. I suppose that the most optimal technical levels are submitted by Axel Rudolph from Dow Jones Newswires agency. There is an example of the technical levels on July 7, 2006. According to the technical analysis given to European currency markets by Axel Rudolph from Dow Jones Newswires agency, USD will come down (drop) - see the moving charts made on July 7, 2006 for 24 hours. EUR/USD; EUR/GBP; EUR/JPY; EUR/ SWISSI. The 3rd resistance! 1.2914 !0.6997 !148.12 !1.5766 ! The 2nd resistance! 1.2842 !0.6988 !147.80 !1.5742 ! The 1s... More About: Technical , Agency , Book , Present
Book 2 Chapter 3 The true and false breakouts of the levels of resistance a
2007-04-29 18:03:00 Recoil from the technical level. In its essence, this part is dedicated to the following. 1. To scrutinize the "classicists" of Forex approach to the problem of determining the difference between true and false technical level breakouts. 2. To expose drawbacks, inherent in each of the "classical systems", which cause traders' losses at Forex. 3. By giving analysis to these problems, to elaborate methods of their solution. One can describe the today's state of the technical level analysis at Forex as the following. 1. A unified method of detecting technical levels at Forex is not elaborated yet (see the Part "Levels of support and resistance" in Masterforex-V TS. 2. A technique that could permit us to estimate whether the breakout is true or false still is not developed as well. One can mark out the two types of the currency pair movement at Forex : a). There can happen the true (real) breakout through the technical level, after which a currency pai... More About: Book , True , Resistance , Chapter , Brea
BOOK II Chapter II SUPPORT AND RESISTANCE LEVELS IN MASTERFOREX-V
2007-04-28 18:55:00 Support and resistance are the known cornerstones in forex technicals, wherein: 1. a current forex rate (CFR) is surrounded by levels of: a). resistance being superior to CFR; b). support being inferior to CFR. 2. a level breakthrough triggers a leap to a consecutive support/resistance; 3. a false breakthrough is responsible for a rate backstroke (say, from resistance to support). Thus, having data on resistance and support levels and being armed with R/S true/false criteria, a trader grows faultless-entry skilled to ensure smooth level-to-level trading. To be found below is a graphic drawing of a flat followed by an R/S up/down breakthrough. Fig.1 In actual sample GBPUSD trade dated January, 31, 2006 the support breakthrough has triggered a bullish in-session trend. Simple, isn't it? Affirmative at a glance, but 95% of traders loosing their forex deposits are calling for natural questions: 1. What's the reason, the world traders are getting entangled in so a seemingly... More About: Book , Support , Master , Resistance , Fore
BOOK II Chapter I THE MFV TRADING CONCEPT TREND DEFINITION
2007-04-16 16:56:00 BOOK II Chapter I THE MFV TRADING CONCEPT TREND DEFINITION To ensure steady profits at FX a trader is supposed to pinpoint faultless entries and exits. It's common knowledge, that a trend is the principal and the most compromising relevant area. Hence, trend detection is the trader's PRIMARY target. If "The Trend Is Your Friend", entries should be executed trendwise and the profit should be allowed to flow, etc., there emerge questions to touch every live FX trader: - what are the trend's criteria (bullish or bearish) - once known, it is a trader's conventional job to enter trendwise and let the profit flow? - if the FX major rule quintessence is as simple as that, why 90-99% of traders suffer losses with enviable permanence? Book I Chapter XI "Where trends are to be chased at FX or the trader's faultless profit segments", http://www.masterforex-v./001_011.htm analyses the FX scholars' and modern forum-speaker traders' overwhelming chaos in the field, ranging: - from the Ch... More About: Trading , Definition , Once
Book I Chapter 8 Correlation between binary elements and fuzzy logic at For
2007-04-14 20:21:00 Forex has much in common with “Fuzzy logic” by Lotfi Zadeh and “Fuzzy Thinking” by Barto Coscko ( Cocko ). In fact, the new branch of the science of Forex is named “Fuzzy logic”. The latter issues from the titles of the editions mentioned. The details one can find at http://www.demozal.kursk.ru/nauka/logic.h tm; http://www.matrix3x3.com/index-4-fcm.html ; http://transpersonal.chronography.ru/topi c/130; http://www.basegroup.ru/fuzzylogic/math.h tm. However, it is not recommended to overestimate the significance of this approach and these articles. – i.e., one must not get caught into “an endless loop of it”. At the same time, it is absolutely necessary to comprehend the essence of “Fussy Logic ” theory. As applied to Forex , it means to see the multiple-choice character of the evolution. That is, the process depends on the starting parameters and on factors arising in the course of the development. Each of such elements is binary – i.e., it is formally logical. Ho... More About: Elements , Book , Between , Relation
Book I CHAPTER 7 Role of trading system in successful and profitable work a
2007-04-14 17:36:00 Any trader must develop a trading system of his own. I is the principal condition for the regular and stably-profitable work at Forex . Every successful trader whom I know does hold this opinion. That is, such system must clearly and impartially indicate points of the entrance into the market and the exit from it. The lack of a systematic method results in the loss of the trader’s deposit. The work according either to an imperfect trading system or to the traditional one does not save the situation. It can just prolong the distance from opening of the trading account to the inevitable loss and nullifying of this account. Let us again dwell on T. DeMarque’s viewpoint (he is the analyst, financial consulter and adviser to the biggest market-maker banks at Forex ). According to his opinion, there are three different approaches to giving analysis to the charts. The first one is superficial and subjective. Mainly it is based on intuition. To put it briefly, this approach is... More About: System , Trading , Work , Book , Prof
Book I CHAPTER 6 Developing the "anti-chaos" trading strategy and tactics a
2007-04-14 17:10:00 The book"Trading Chaos"; by B. Williams is the classical edition concerning Forex . It is of a great interest to millions of his admirers all over the world. From the viewpoint of mine as a trader, this book is so popular because B. Williams’s tried to do the following: 1. To present Forex chaotic market as a system, making use of the chaos theory. 2. To demonstrate his conception of logic of the structural components motion in this chaos: a) the strategy (Elliot’s wave theory); b) the tactics (the fractal analysis; the use of fractals and the key factor (financial and economic instruments)). 3. Introducing 5 levels of the trader professional training. Each of these levels is clearly described and specified – as well as the corresponding goals and the instruments that traders must be capable of using at each of these levels. In particular, the chapters of his book enumerated below are dedicated to the following problems: Chapter ... More About: Strategy , Tactics , Book , Trat
BOOK I Chapter V DELUSION NO.4: SHORT-TERM FX TRAINING AT THE DEALERS'. WHY
2007-04-14 16:30:00 This delusion zombies beginners into entering 2 to 3-week Deal ers’ training schools in order to learn FX profiting. But what are Dealers’ schools willing to train beginners to, provided that: a). school curriculum is not stipulative of training professionals, capable of winning their own Dealers’; b). school teachers are no traders (why should the management employ such kind of teachers?); c). school teachers resort to students’ overestimation practice thus making the latter to be quicker about opening live accounts with their Dealers’; The above effort results in 90-95% of beginners loosing their primary deposit and granting the money to their native Dealers’. We are now going to give the problem a detailed conclusive analysis. COMMON WORLD-WIDE FX TRAINING DRAWBACKS. No. 1 drawback is absence of a clear multi-stage FX trader professional training pattern. If You are a lawyer, it means that before You commenced Your professional activities: 1. You have fi... More About: Training , Book , Rain , Train
Book I CHAPTER IV NO. 3 DELUSION: FX LITERATURE AS A "HOW-TO-LOOSE" TUTORIA
2007-04-14 15:59:00 This delusion globally entails identical aftermaths: 90-95% of traders turn steady to loose their deposits having studied books by Bill Williams, Alexander Elder, Thomas Demark, Eric Nayman, et al.Following the burndown of their first depo traders plunge themselves again into scrutinizing FX scholars, in this manner suffering losses of the second, the third and subsequent depos. I will hereinafter try to elucidate where from the above regularity grows, so that no trader repeats his forerunners’ mistakes.This statistics is common knowledge: 90% of traders constitute FX losers… But the figure has always been giving rise to a leviathan of my doubts. It isn’t because of somewhat different 95%-5% loser-to-winner ratio quoted in the Van Tarp and Brian June “Intraday trading: secrets of mastership”. With 90% quoted universally, there naturally emerges the question, as to whether there is someone capable to check, to specify or to disprove the above figure. NO ONE IS, besides the ... More About: Literature , Book , How-To , Lite , Liter
BOOK I Chapter III MASTERFOREX-V ON FUNDAMENTAL ANALYSIS AUTHORITY IN FX RA
2007-04-13 20:48:00 The chapter’s abstract: a trader attains much greater success at FX unless he is reading analytics by non-trading economists. Here’s some information for meditation below:What useful can one be taught by FX reviews, cooked up by analytical economists, who are incapable of teaching themselves to be FX successful?FX economic indicators (released news statistics) are compiled the way required to be interpreted by analysts, who, by the end of the day, may explain any rates travel as the only naturally determined one.Important objective economic indicators (GDP, Balance of payments, etc.) are leveled up with the subjective ones (University of Michigan, Chicago sentiment, etc.) which in no way may be checked up.Economic statistics is frequently forged even at the supreme level.Here is my attitude as a trader towards FX fundamental analysis and to its impact upon exchange rates dynamics.At the outset, we’ll get to scrutinize the gambling done by FX analytical economists, who are stri... More About: Analysis , Book , Author , Authority , Fund
BOOK I Chapter II FOREX Secrets - Delusion No 2 - Who prompts FOREX quotati
2007-04-13 09:22:00 The delusion conceptually propounds that traders operate at a spontaneous FOREX Market(as stipulated by B. Williams, A. Elder, E. Nayman, etc.). But it is not the case. traders do their job inside a well-organized and controlled currency exchange market, governed by the Consortium of the world's largest banks.Hence, who is pushing the currencies up and down, who defines trends, corrective actions and flats?And, who, ultimately, places a trend at a point, where the majority of traders are happy to think they have saddled the wave and are about to win an enormous profit! Now! Not to be scared! Not to close the position! Not to be satisfied with a minor profit! Later on we will discuss that sort of stupidity. Thus, one persists to continue long in spite of more and more degrading profit. Shortly, the loss starts growing with light velocity! Are you familiar with the situation? Well, who has reversed the rate? And who generally tugs currency rates? Tugging is surely centralized. Compar... More About: Forex , Book , Prom , Secret , Secrets
Book I CHAPTER I. Forex Secret. DELUSION No1. FOREX currency rate. Economic
2007-04-11 18:49:00 The delusion conceptually propounds that intraweek and intraday FOREX currency quotes movement is governed by either improvement or by deterioration of the state’s economic situation. But in reality, even in case the actual Forex news are superior to the estimated one,the FOREX quotes up/down movement isof 50/50 probability. This statement is thoroughly important. Once thejob of Forex trader is gambling on FOREX exchange rates differential (FOREX pairs up/down movement), the following is to be realized to obtain faultless profit: FOREX pairs pricing mechanism (say at point X where you are completing the market analysis) Factors imparting growth/decline to FOREX rates (up/down from point X). Thus, having understood the FOREX ratesfactors effective at the extra-exchange (book-maker) FOREX market and the given currency motive factors, a trader must possess distinct knowledge of wh... More About: Book , Currency , Secret , Economic |
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