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How I Trade Proftably Every Single Month without Fail
First of all, let me take some me to introduce myself to you. I am Kelvin and I am a
full me currency trader. I have a passion for trading and this drives me to create a
forex blog that gathers a community of traders together.
Due to constant request from my blog readers asking me to share my trading
strategies ith them, I took a total of !" months to create a course that teaches you
all the strategies that I have been using all these years ithout reserve.
#o that you have subscribed to my nesle$er, you ill be receiving forex tutorials
from me every month as ell as trading videos that I have specially created to help
you in your trading.
In this book, you ill be taught the % secrets to successful trading. Do note that these
% secrets are all based on my on experience and therefore ill be useful for you in
your trading.
&his is a reard for those of you ho really took acon as it shos your
determinaon in learning this skill.
'o let me start to share ith you the % secrets to successful trading and at the end of
this guide book, I shall sho you an (#&)*D secret of the +-D indicator that ill
greatly improve your inning percentage.
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Secret #1: Power o Suort ! "eitance
+y secret number ! in trading is support and resistance. +ost ne traders tend to
ignore the importance of support and resistance because they do not kno that the
ave like movement of the market is actually the creaon of support and resistance.
hen the price hits a ma/or resistance for the 0rst me, it ill most probably movesdon 0rst due to the repulsion of that level. It ill then a$empt to break this
resistance level again and once it manages to break through it, the old resistance
level ill no turns into a ne support level.
1ou ill 0nd that the price ill alays comes back to test that ne support level
before it moves further up. 'uch acon contributes to the formaon of aves in your
trading chart.
&herefore as a trader, you must be able to idenfy here the ma/or supports and
resistances are. ith these level iden0ed, you ill then be able to kno here to
enter a trade, here to place your stop loss and here to place your target pro0t.
In this secon of the book, I ill teach you a fe ays to idenfy strong level of
support and resistance.
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Fibonacci Indicator
&he Fibonacci indicator is one that is commonly used by instuonal traders and
therefore the level of support and resistance created by this indicator is more
signi0cant.
&he Fibonacci indicator consists of retracement and extension. ll you need to do is
to drag the indicator from the top to the bo$om of the ave and you ill be able to
select hich retracement and extension level you ant to sho.
From my trading experience, retracement level like the 2."34, 2.522 and the 2.6!3
have more poer than the rest of the retracement levels. s for the extension, it
depends on the retracement.
If the price hits the 2."34 retracement level, the price ill usually stop at the !.474
extension level.
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If the price hits the 2.522 or 2.6!3 retracement level, the price ill usually be
stopped by the !.522 or !.6!3 extension level.
8oever if you are able to 0nd level of mulple Fibonacci, that speci0c level ill be
here you are going to enter a trade.
Pivot Point
9esides the Fibonacci indicator, the :ivot point is another indicator that is used by
instuonal traders. 'imilar to the Fibonacci indicator, the support and resistance
level created by the :ivot points serve as a strong level of support and resistance.
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For the :ivot levels, you can plot the daily pivot, eekly pivot and monthly pivot on
the same chart. Do note that the poer of the monthly pivot is larger than the
eekly pivot and the poer of the eekly pivot is also larger than the daily pivot.
Swing
'ings are ; pa$erns. hen you see
a sing high, the top level ill then formed the resistance level. hen you see a
sing lo, the bo$om level ill then formed the support level.
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8oever not all sing highs and los are of equal importance, those sings that
have more depth are considered stronger level of support and resistance than those
ith lesser depth.
9elo are some pictures for your comparison.
&he above are " ays you can idenfy strong level of support and resistance.
&herefore spend some me to pracce them on your chart today to have a be$er
understanding of their trading nature.
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Secret #$: Power o Indicator
&he next secret to successful trading lies in the indicators that you are using as ell
as ho you use them. +ost traders do not kno the nature of the indicators that
they are using and therefore 0nds them useless to their trading.
+y suggeson to you is to learn the various ays to use an indicator as ell as
learning ho to 0ne tune them to suits your trading plan. 9elo are some of my
favourite indicators and the ay you can use them in your trading. 'o spend some
me to go through them no.
M%&' Indicator
9efore I start to tell you the poer of +-D, I must spend someme to do a
introducon on hat is +-D and ho invented it.
+-D is a forex indicator that is developed by ?erald ppel ho has ri$en !4
books on investment strategies. 8e is also the president of 'ignalert -orporaon
hich is an investment 0rm that helps to manages over @4A2 million dollar of capital.
+-D is in fact one of the simplest and reliable forex indicators I have used so far. s
it is actually analyBing and displaying chart for past data, it is oCen kno as a lagging
indicator. 8oever there are mes here you can use +-D as a leading indicator to
help you predict the next movement of the price.
1( How to Setu )our M%&'
&he most common seng for +-D is 46 or !4. hat this means is 46 days and !4
days Exponenal +oving verages. &he 46 E+ is a sloer seng for +-D hich
ill produce a sloer indicator that is less prone to hipsas. s for the !4 E+, it is
usually a faster seng for +-D.
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In the +-D indicator, there ill usually be a A days E+ that ill represent the
trigger line hile the histogram represents the dierence beteen +-D line and its
trigger line.
$( How to "ead )our M%&'
&here are several ays you can use the +-D to help you in your trade but 0rst of all
you need to understand ho to read your +-D.
i) Bullish Crossover:9ullish crossover usually indicates a upard movement in the
market and the ay you can idenfy a bullish crossover is through the to line in the
indicator namelyG +-D line and its trigger line.
henever +-D cut through its trigger line in the upard direcon, it usually
indicates an uptrend or an upard movement.
ii) Bearish Crossover:9earish crossover usually indicates a donard movement of
the price and the ay you can idenfy a bearish crossover is hen the +-D cut
through its trigger line in the donard direcon.
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iii) MACD Divergence: &his is the best signal any trader can get from +-DH
Divergence. First of all, let me explain to you hat is +-D divergence all about.
hen e say that there is a divergence in +-D, e are referring to the scenario
here +-D and the price are not in the same direcon movement pa$ern.
E*a+le:hen the highs of a currency pair is geng higher and higher, +-D highs
are geng loer and loer. e are experiencing something called #egave
Divergence.
From my experience, you ill usually see a donside movement aCer a negave
divergence is formed.
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hen the los of a currency pair is geng loer and loer, +-D los are geng
higher and higher. e are experiencing :osive DivergenceJ. henever you see
posive divergence, you ill usually see a upside movement in price.
,( How to -e M%&' to For+ Fore* .uy Sell Signal
It ill be very risky if you trade based on /ust one of the signal you have learn above.
1ou ill have a more robust forex strategy if you are able to combine these to
signals above to constute your buy sell signals.
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+-D is a good indicator hen it comes to buy sell signal as it alays allo the
trader to validate a trend line break or a breakout in price. ith this funcon, +-D
can help the trader to idenfy fake outs in trading.
%'/ Indicator
iding the trend is one of the most pro0table trading strategies you can have as it is a
good ay of producing high risk reard rao trade and the best ay to 0nd out the
status of the trend is to make use of the forex adx indicator.
So 0hy %'/ Indicator
If you have been reading my blog, you ill kno that I have ri$en an arcle to help
you idenfy the trend of the market using various forex trend indicators like the
moving averages. &he moving averages are sll a good ay to tell the trend but they
are unable to give you a value for the trend and this is here the DL indicator
comes into play.
0hat I %'/ Indicator
It is an indicator that is made up of a single line ith value ranging from 2 to !22. 1ou
may think that it looks like an oscillator but it is uni
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hen the indicator moves above the 45 level, it is telling you that the trend is
strengthening and the larger the value, the stronger ill be the trend. 8oever to
have a be$er understanding of the trend you are in, you need to combine the
direcon of the indicator together ith its value.
Sign of a Strong Trend:
1ou are in a strong uptrend or dontrend hen the DL indicator is poinng up and
moving above the 45 level.
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Sign of a Weak Trend:
1ou are not in a strong trend hen the indicator is poinng don and moving belo
the 45 level.
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2ther -e o %'/ Indicator
1) Divergence:9esides using the DL indicator for telling the strength of the trend,
you can also use the divergence of this indicator to arn you of possible retracement
or reversal. If you have entered a *)#? trade and you see the DL making loer
highs hile the price make higher highs, this is a good me to exit your trade as a
retracement or a reversal is going to occur.
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2) Breakout Strength:1ou can also make use of this indicator to help you trade
breakouts. &he problem ith most breakout traders is fake out hich is the false
movement of the market leading most inexperienced traders to enter a trade and
then stopped them out by reversing the movement.
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With the ADX indicator, you will now be able to check if a breakout is valid or not.
When you see the price breaking out of a pattern or trend line, you can immediately
check your indicator to see if it is pointing up and moving above the 25 level. A valid
breakout will be formed when the ADX indicator is pointing up and moving above the
25 level and an invalid breakout will be the opposite.
I hope that you 0nd this indicator useful for your trade and eventually integrate it
into your trading plan. If you have other uses for the DL, do share ith us by
commenng belo. I hope that this blog ill eventually become the place here
traders share their knoledge and everyone can learn from one another.
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From the picture above, you can see that the market move higher hen --I reaches
the O!22 level and vice verse.
2) As a reversal iden!"erQ &here are basically " ays you can make use of the --I
indicator to idenfy reversal and I am going to go through one by one in detail.
a( Trend 3ine .rea4:1ou can make use of the --I to dra trend line and once you see
the trend line being breached, you are going to see the market moving in the
direcon of the breakout.
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b( &&I 'ivergenceH 'imilar to +-D divergence, the --I also produces posive and
negave divergences. hen you see the market making higher highs hile the --I
making loer highs, you are in fact seeing a negave divergence. &his is usually a
signal that the market is going to move don but the me it takes for the don
move may vary and you should not assume that it is coming in the next fe candles.
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If you see the price making loer los hile the --I making higher los, it is a sign
of posive divergence and the market is going to produce an upard movement
soon. 'imilarly, you should not assume that it is going to happen very soon.
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c( 2verbought ! 2verold:'imilar to the 'tochasc and the elave 'trength Index,
the --I can be used as an oscillator. hen you see this indicator moving above the
O422 level, you are in an overbought Bone and you can place a '8)& trade hen
you see the --I crossing belo the O!22 level.
hen you see the indicator moving belo the http://www.forexindicator.org/wp-content/uploads/2010/05/Negative-Divergence.png
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owever there is nothing that works !""# of the time and below is one such e$ample
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&he --I indicator has been a great help to my trading so far and it can be integrated
into various type of trading methods due to its mul
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%) The Sile Moving Average 'SMA)
How to Setu )our .ollinger .and
:ersonally, I alays sck to the default seng for my 9ollinger band hich is the 42
days '+ and plus minus 4 x standard deviaon for the upper and loer bands.
8oever you can also ad/ust the seng if you 0nd the price constantly penetrang
the upper or loer bands.
0hat .ollinger .and &an 'o For )ou
&he upper band usually indicates a resistance level hile the loer band usually
indicates a support level. If you take a close looks at your 9ollinger band. 1ou ill 0nd
that the price usually bounce o the 9ollinger band henever it touches the upper
or loer band.
ith this observaon, you can use the upper and loer bands as support and
resistance hen planning your trade.
9esides using the upper and loer bands as the support or resistance, you can also
make use of 9ollinger bands to help you measure the volality of the market.
hen the upper and loer bands are narro, you are actually in a period of
consolidaon and hen the bands are idely apart, you are in a period of strong
price movement. In my next post, I ill sho you the various uses of forex bollinger
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bands in trading and ho you can make full use of its feature to help you in your
trading.
%T" Indicator
&he average true range =&> indicator is developed by R.elles ilder and it is used
to measure the volality of a currency pair. (nlike the other forex indicators e have
ent through so far, the average true range =&> indicator does not provide any
indicaon of the price movement.
&here are a total of " dierent ays you can calculate the average true range =&> of
a currency pair.
ecent 8igh minus the ecent *o
ecent 8igh minus the previous -lose
ecent *o minus the previous -lose
8oever the value that you ill use as the true range ill depend on hich of them
are larger. ith your trading plaNorm, there is usually no need to calculate these
values yourself. 1our trading plaNorm ill help you to calculate the value and plot it
into a graph.
So How &an )ou -e the %verage True "ange 5%T"( Indicator
lthough this indicator cannot give you an indicaon of the direcon of the market
movement, it can be a good tool to help you verify the strength of the current
market.
hen the & indicator is shoing small values, it is usually a sign that the market is
consolidang or moving ith small movement aing for a breakout.
hen you see the & indicator shoing you large value, it is a sign that the market
is trending strongly or you are in a valid breakout.
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If you are a breakout trader, this indicator can be a great tool to add to your trading.
hen you see the & shoing small values, you ill ait for a breakout to occur.
)nce you see a trend line break together ith rise in the &, this is a good sign of a
breakout occurring.
9esides using the average true range indicator as a breakout tool, you can also use it
in trend trading. hen you are performing trend trading, you can use this &
indicator to help you verify hether you are in a strong trending market or not.
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-an you see the poer of this risk reard raoS Even hen you only in 52P of the
me, you are sll making @!,622 per month. If you are trading 4 standard lots per
trade, you can make up to @",422 per month.
&he reason hy I am able to generate pro0t every single month is because all my
trading strategies has a inning percentage of more than 72P and it has a risk
reard rao of at least !H4.
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Secret #=: -ntold Secret o M%&' Indicator
s promised, I shall be sharing ith you one untold secret about the +-D indicator
that you ill not 0nd elsehere.
&his is a technique that I have realiBed over these years of trading and I ill like to
take this opportunity to share ith you.
-lick belo for the video tutorial that I have prepared for you regarding the +-D
indicator.
h7:88www9ore*trainingclaroo+9co+8+e+ber8ore*video$tutorialAat+acd
&oncluion
+aking money from forex trading is not as hard as hat most people think but it is
also not that easy. 1ou ill need to be paent and is illing to spend me to learn
and pracce hat you have learned.
It took me A months to eventually make my 0rst dollar in forex but since then, I am
able to generate consistent income for myself every single month ithout fail.
&herefore it is de0nitely orthhile to spend the me to learn and pracce forex.
%ll The .et
3ee Belvin
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