“Learn how to trade EUR/USD, USD/CAD, GBP/USD or Any other major currency pair by mastering a system
“Learn how to trade EUR/USD, USD/CAD, GBP/USD or
Any other major currency pair by mastering a system
That combines top level mathematics with the
Fundamental principles of human behavior - simplified
In such a way that even a high school dropout can
Quickly start profiting from it...”
“A lethal “knee to the groin, thumb to the eye”
SETTING UP THE INDICATORS FOR OUR TRADING
1. 5 exponential Moving average, close (Blue Colour)
2. 10 exponential Moving average, open (Red colour)
3. 80 simple moving average set to close, (Blue colour)
4. Parabolic Sar set to default
5. ADX Indicator set to default (yellow colour, to activate the ADX indicator, you will not see ADX but you will see Average Directional Movement Index in your indicators list, click on it to activate as that is the ADX indicator)
+D1 (make it blue colour) it's your buy entry signal and confirmation to enter the market
-D1 (make it red in colour) opposite of +D1, that is the sell entry confirmation.
6. Four Horizontal trendlines with parameters set to 10, 20, 25 and 40
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Description of the Indicators that we will be using in our trading system
• The 80 SMA only serves as trend direction and resistance and support points
• Parabolic Sar will serve as your trade direction alert.
• ADX is the magic and the friendliest indicator that you will ever need because it has 3 in one indicator that does triple functions. ADX alone tells the strength of the market and this tells you when the market is strong for you to enter or not to enter. ADX will be telling us when the market is strong when it has risen above the 20 trendline or that the market is weak and sounding a leave it alone signal when it has moved below 20. Any Market with ADX above 40 shows that the trend is strong and profitable. ADX can also serve to indicate a divergence.
• +D1 is your buy entry signal and confirmation
• -D1 is the sell entry confirmation.
• The four horizontal trendlines will determine when it’s safest for you to open a trade.
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Now, if you’ve set up the indicators well, your chart should look something like this.
ENTRY STRATEGY FOR BUY ORDER
1. Parabolic Sar will first indicate an uptrend
2. ADX will be rising above 20 or is already above 20
3. +D1 is also rising above 20
4. -D1 will be moving below 10
Once the above four conditions have been successfully been met, I will comfortably open a trade. forex sato
ENTRY STRATEGY FOR A SELL MARKET
1. Parabolic Sar will first indicate a downtrend
2. ADX will be rising above 20 or is already above 20
3. -D1 is also rising above 20
4. +D1 will be moving below 10
WORKED OUT EXIT PLANS
EXIT NUMBER ONE
1. by stoploss or trailing stop loss
EXIT PLAN NUMBER TWO
1. ADX being below 40 or has moved below 40
2. -D1 has moved above 10
3. Parabolic Sar had reversed.forex sato
Once the above three conditions have been met, I will exit a trade. See chart belowEXIT PLAN THREE
1. ADX is falling below 20
2. +D1 is falling below 20 too
3. Parabolic Sar had reversed
Once the above three conditions have been met, I will exit a trade. forex sato
We will complete in the next issue immediately..forex sato
forex sato
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