Setup Trading Sbr

Setup TREND TRADING Trend trading is a simple trading methodology. The trend is your friend, you have heard it a million times before and guess what ? its true. I only trade in the direction of the trend relative to its timeframe using the lower timeframe trend to enter into a trade and the higher timeframe for confirmation of the cycle or wave. An uptrend is formed when when price is making higher highs and higher lows. lows. A downtrend is formed when when price is making lower highs and lower lows. During a trend we look for retracements to enter into the trend. Use prior areas of support as a target area in a downtrend. Use prior areas of resistance as a target area in an uptrend. Always use a stop loss and place my stop stop at a logical place as dictated by price action. SUPPORT AND RESISTANCE Resistance is an area where previou sly sellers out numbered the buyers. Support is an area where previously buyers out numbered sellers. Use the right side of the chart to view the trend and the left side to view support and resistance. Resistance is found where the price previously made a new high then retreated to make a new low ,lower than previous low. Support is found where the price previously made a new low then rise to make a new high ,higher than the last high. PEAK AND TROUGH ANALYSIS Its clear to see if you open a chart of any tradable instrument that the price does not move in a straight line but moves in what we call peaks and troughs moving either up down or sideways. The peaks and troughs help me to see if the market is in a trend or range or reversal and also to find areas of support and resistance. WAVES WITHIN WAVES A fractal is "a rough or fragmented fragmented geometric shape that can be split into parts, each of which is (at least approximately) approximately) a reducedsize copy of the whole,a property called self similarity. Identify the beginning of a new wave this would be t he whole part, then use lower degrees of timeframes to identify the fractal waves that exist within the whole wave these these fractals allow to identify the trend moving in the direction direction of the higher timeframe or whole wave

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and also to view the fractals that exist in the lower timeframes to view the trend forming from the retracement to enter back into the trend. The key is the method i use to clearly define the trend , retracements ,support and resistance peaks, and troughs and fractal waves in a visual manner with no ambiguity across a range of timeframes and trading instruments instruments including Intermarket.































































































































































































































































































































































































































































































































































































































position. position. Now, because because we are adding adding a new position position each time your current current trade moves moves a certain distance distance in your favor, favor, your breakeven breakeven point on the whole whole position moves moves closer closer to the market price. price. This means the the market doesn’t doesn’t have to move move as far to put put you into into negative territo territo ry. That's why placing +1 pip stops to the 1st pullback position is a must. We decide to aim for a risk reward on 2nd position at least 1:1. When the 2nd position execute means we are using market money instead of our money to maximize the profit or double it up. As usual breakout entry need our own judgement about the target. As the used of priceline, the target should be at the next level either up or down. Live sample is here here.. (scala margin)









































First of all, it means that round numbers are special. In forex market you can see the pull of the round numbers on daily basis. People are naturally attracted to the order of round numbers and as a trader you have to be aware of this behavior to use it in making proper decisions.The use of round numbers in forex trading is to seek for price action signals at or nearby round numbers areas. The more you trade, t he more convincing it becomes that round numbers plays an important role in the structure and behavior of price a ction. Round numbers are psychological support/resistance levels. For example, if EUR/USD is going upwards and reaches 1.5000, you will notice strong bearish reactions, because a lot of traders believe that the currency pair cannot go any higher than that, so they sell in fear of losing their profits. Traders can use the round numbers as a strategy. Psychological Psychological levels levels i use are 00, 14, 50 and 64. 64. In order to use the numbers, you need to specific the entry which is pullback or breakout when those levels is reached. This method might not throw tones of pips your way, but i t sure is a great scalping method. Two economists at the Wharton School of the University of Pennsylvania, Pennsylvania, while investigating how round numbers influence goals, examined the behavior of major league hitters from 1975 to 2008 who entered what became their final plate appearance of the season with a batting average of .299 or .300. It means that round numbers are special. In the 1970’s and early 1980’s the Dow Jones Industrial Average approached the 1000 barrier 17 times before befor e it finally broke through for good, but when it did it ushered in a two decade long bull run that went through 10,000 and beyond. In the FX market we see the pull of the round numbers every day. There is a technical, fundamental fundamental and psychological component to round numbers that make them significant. Once you understand the concept of a trend, the next major concept is that of support and resistance. You'll You'll often hear technical analysts talk about the ongoing battle between the bulls and the bears, or the struggle between buyers (demand) and sellers supply).These support and resistance levels are seen as important in terms of market psychology and supply and demand.One demand.One type of universal support and resistance that tends to be seen across a large





















What i do best using those levels u can predict that when price move 1 phase rarely the retracement took place but above 2 phase it likely to make a retracement. The chart above is self explained.

The Strategy A very simple strategy that makes a good profitable trade.























































































Although i'm expecting more movement will occur, just leave the movement alone. Secure profit and let it go. Don't be greedy .





































































point break break to enter. Pullback Entry made after reversal candlestick on pullback within late Euro-US market overlapping. Price moved down towards the target.

































































































Technical View: At the neutral point now, Breakout Entry is the best entry to choose. So an entry made for another short :





































































































































































































































































































































































Risk Appetite Risk Appetite condition !!!

































































Role Reversal Effect It gives an opportunity to entry without hesitation. Trade with trend and risk management.



















































































































Risk Aversion

















































The Step Setup

































































































































































































































































































































But if we throw some light to Dow's original conception of the Industrial and the Railways Averages then we know his intention was more to determine the economic health health of the country and recognize the emgergenc of major bull and bear markets. The Dow theory has well served Dow's ingenious vision vision for this matter. Those who criticize the Dow theory can not catch a ctual market tops and bottoms lack the basic foundation of the the trend-following philosophy.

In conclusion, the Dow Theory forms the basic foundation of the modern day technical analysis. Dow's original theory, though Dow Dow himself never intended for, is adapted in the modern day technical analysis ranging from the standard definition of a trend, the classification of a trend into three categories and phases, the principles of confirmation and divergence, the interpretation of volume and the use of percentage retracements retracements to name a few.

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These three systems are three pillars of the successful currency trading. Each of the systems will have its own rule sets (descriptions of the signals/conditions and the actions that they require) related to the object of their operation. The rule set of each system are converted into simple-to-follow instructions - checklists - that the trader or the computer can easily follow. These checklists checklists will govern the whole trading process - controlling the timing of the trade entries and exits (forex trading system) , the value of the opened trades in relation to the account balance (money management system) and the emotional state of t he trader (emotion management system). The resultant trade details should be recorded in the trading log and later studied for the id eas on how to improve each of the systems. The trading system's checklist will contain the exact description of the conditions for the trade entries and trade exi ts (i.e. which technical or fundamental signals should converge to justify opening or closing of a position). Ideally, this checklist should leave no room for second-guessing the signals that the trading system generates: you either open or close a trading position because all fits or you don't. In most cases such low level of ambiguity is possible only with the mechanical trading systems while the discretionary trading systems, as their name suggests, usually include the possibility of second-guessing the signals by the trader. A trade entry checklist will contain questions (which are most easily processed by the mind) regarding the conditions conditions which will lead to the opening of a position. For example, if the rule set of your currency trading system requires that you open a trade when the 20-day moving average crosses over the 50-day moving average the checklist might record this rule in the following question: "Is the 20-day moving average close to crossing over the 50-day moving average; If yes - prepare to open a trade; if not -stay still". Mechanical trading systems have a distinct advantage over discretionary trading in terms of the frequency that the trading system checklist is gone through - while an average discretionary trader can go through his checklist only a certain number of times per hour without getting exhausted, the mechanical trading systems are incessantly checking the markets for the relevant signals without resting for a single second. The emotional checklist will contain the instructions for tracking emotional involvement of the trader in the trading process and the methods for controlling it. Even if the checklists derived from the trading and the money management systems are in themselves powerful emotion emotion control systems (or weapons aga inst the emotions), it is necessary to have a separate standalone emotion management system, given the persistence of the destructive emotions. As an example of the question that can be asked in the emotional exposure checklist checklist - "Am I getting angry when the stop-loss is hit; if yes - I should remind myself that the losses are the inseparable part of successful currency trading."

Setup Trading Sbr

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