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Long Red Candlestick Play Instructions

Long Red Candlestick Play Instructions


Step 1

Look for a LONG RED CANDLESTICK resting on MINOR PRICE SUPPORT and also a rising MAJOR MOVING AVERAGE (10 MA, 20 MA or 50 MA)








Step 2  

Pull up a 5 minute chart of the stock.

Step 3  

Note the opening price of the stock.   If the stock gaps up or down more than 5/8th, DO NOT enter the trade.  If the stock opens within 5/8th of the previous day's close, proceed to Step 4.

Step 4  

Wait for the stock to trade for 5 minutes.  After 5 minutes, note the high of the first 5 minute candlestick.

Step 5 

Enter the stock if it trades 1/8th above the high of the first 5 minute candlestick.  If the stock does not trade 1/8th  higher than the high of the first 5 minute candlestick, DO NOT enter the trade.

Step 6  

Pull up a 15 minute chart of the stock.

Step 7 

After entering the stock, place an initial protective stop 1/8th below the low price of the day.

Step 8 

Monitor the stock during the next 15 min. candlestick.

Step 9 

Adjust the protective stop to 1/8th below the low price of the previous 15 min. candlestick.  Stay in the trade as long as the stock trades above this price.

Step 10 

Monitor the stock during the next 15 min. candlestick.

Step 11 

Adjust the protective stop to 1/8th below the low price of the previous 15 min candlestick. Stay in the trade as long as the stock trades above this price.

Step 12 

Continue to monitor the stock during each new 15 min. candlestick, and adjust your protective stop to 1/8th below each previous 15 min. candlestick's low.

Step 13 

Exit the stock for profit when it finally trades 1/8th below the low price of a previous 15 min. candlestick.
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Bullish Harami Candlestick Play Instructions

Bullish Harami Candlestick Play Instructions


Step 1  

Look for a BULLISH HARAMI resting on MINOR PRICE SUPPORT, and/or a rising Major Moving Average (10 MA, 20 MA, or 50 MA) on the daily chart.



Step 2 

Pull up a 15 min. chart of the stock.

Step 3   

Note the high price of the previous day's daily HARAMI  candlestick.Your entry point is 1/8th
above this price.

Step 4 

On the following day,allow the stock to trade for 5 minutes before entering.Enter the stock only if it breaks above the entry criteria (1/8th above previous day's high) and only after it has traded for 5 minutes.If the stock does not break above the entry point,do not enter.

Step 5 

Place the initial protective stop 1/8 below the low of the previous day's HARMAI candlestick.Exit the stock for a small loss immediately if the stock breaks below this price.

Step 6 

Monitor the stock as it continues to rally upward.  Look for areas of support (either minor price support or base price support) on the 15 minute chart, and re-adjust your protective stop price upward as the stock continues to rally.  This will protect your profits, and/or minimize your losses if the stock should turn against you.

Step 7

Monitor the stock on a 15 min. charts as it climbs upward, and stay in as long as the protective stop is not violated.  Allow the stock to achieve 1 point or greater profit, and then look for signs of weakness.  A reversal candlestick pattern on the 15 minute chart will serve as a good indicator for a reversal point.   After the price reaches an area of resistance and weakens, sell half of your position.This may occur on the same day as entry, or on the following day, depending on the strength of the stock.Maintain the latest protective stop price for the remaining half of your position.

Step 8 

Allow stock to continue it's rally.After the stock has rallied further, again look for an area of resistance where the stock begins to weaken and reverse.This could be a DOJI candlestick, or any other reversal candlestick pattern on the 15 min. chart.Sell the remainder of the position for profit.
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What Forex means?


Forex – What is it? 

The international currency market Forex is a special kind of the world financial market. Trader’s purpose on the Forex to get profit as the result of foreign currencies purchase and sale. The exchange rates of all currencies being in the market turnover are permanently changing under the action of the demand and supply alteration. The latter is a strong subject to the influence of any important for the human society event in the sphere of economy, politics and nature. Consequently current prices of foreign currencies evaluated for instance in the US dollars fluctuate towards its higher and lower meanings. Using these fluctuations in accordance with a known principle “buy cheaper – sell higher” traders obtain gains. Forex is different in compare to all other sectors of the world financial system thanks to his heightened sensibility to a large and continuously changing number of factors, accessibility to all individual and corporative traders, exclusively high trade turnover which creates an ensured liquidity of traded currencies and the round - the clock business hours which enable traders to deal after normal hours or during national holidays in their country finding markets abroad open. Just as on any other market the trading on Forex, along with an exclusively high potential profitability,is essentially risk - bearing one. It is possible to gain a success on it only after a certain training including a familiarization with the structure and kinds of Forex, the principles of currencies price formation, the factors affecting prices alterations and trading risks levels, sources of the information necessary to account all those factors, techniques of the analysis and prediction of the market movements as well as with the trading tools and rules. An important role in the process of the preparation for the trading on Forex belongs to the demotrading (that is to trade using a demo-account with some virtual money), which allows to testify all the theoretical knowledge and to obtain a required minimum of the trade experience not being subjected to a material damage.

Short data about the origin and development of the currency exchange market. 

Currency trading has a long history and can be traced back to the ancient Middle East and Middle Ages when foreign exchange started to take shape after the international merchant bankers devised bills of exchange, whichwere transferable third-party payments that allowed flexibility and growth in foreign exchange dealings.The modern foreign exchange market characterized by periods of high volatility (that is a frequency and an amplitude of a price alteration) and relative stability formed itself in the twentieth century. By the mid-1930s the British capital London became to be the leading center for foreign exchange and the British pound served as the currency to trade and to keep as a reserve currency. Because in the old times foreign exchange was traded on the telex machines, or cable, the pound has generally the nickname “cable”.After the World War II, where the British economy was destroyed and the United States was the only country unscarred by war, U.S. dollar, in accordance with the Breton Woods Accord between the USA, Great Britain and France (1944) became the reserve currency for all the capitalist countries and all currencies were pegged to the American dollar (through the constitution of currencies ranges maintained by central banks of relevant countries by means of the interventions or currency purchases). In turn, the U.S. dollar was pegged to gold at $35 per ounce. Thus, the U.S. dollar became the world's reserve currency. In accordance with the same agreement was organized the International Monetary Fund (IMF) rendering now a significant financial support to the developing and former socialist countries effecting economical transformation.To execute these goals the IMF uses such instruments as Reserve trenches, which allows a member to draw on its own reserve asset quota at the time of payment, Credit trenches drawings and stand-by arrangements.The letters are the standard form of IMF loans unlike of those as the compensatory financing facility extends financial help to countries with temporary problems generated by reductions in export revenues, the buffer stock financing facility which is geared toward assisting the stocking up on primary commodities in order to ensure price stability in a specific commodity and the extended facility designed to assist members with financial problems in amounts or for periods exceeding the scope of the other facilities.At the end of the 70-s the free- floating of currencies was officially mandated that became the most important landmark in the history of financial markets in the XX century lead to the formation of Forex in the contemporary understanding. That is the currency may be traded by anybody and its value is a function of the current supply and demand forces in the market, and there are no specific intervention points that have to be observed. Foreign exchange has experienced spectacular growth in volume ever since currencies were allowed to float freely against each other. While the daily turnover in 1977 was U.S. $5 billion, it increased to U.S. $600 billion in 1987, reached the U.S. $1 trillion mark in September 1992, and stabilized at around $1.5 trillion by the year 2000. Main factors influences on this spectacular growth in volume are mentioned below. A significant role belonged to the increased volatility of currencies rates, growing mutual influence of different economies on bank-rates established by central banks, which affect essentially currencies exchange rates, more intense competition on goods markets and, at the same time, amalgamation of the corporations of different countries, technological revolution in the sphere of the currencies trading. The latter exposed in the development of automated dealing systems and the transition to the currency trading by means of the Internet. In addition to the dealing systems, matching systems simultaneously connect all traders around the world, electronically duplicating the brokers' market. Advances in technology, computer software, and telecommunications and increased experience have increased the level of traders' sophistication, their ability to both generate profits and properly handle the exchange risks. Therefore, trading sophistication led toward volume increase.
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Bankrut - How about no?


10% Of Traders Go Bankrupt

I was thinking about an article I read some time ago that 90% of traders who ever trade lose their account and that 10% actually go bankrupt. If the first number doesn't scare you then the second definitely should.Why is it then that there is such a large number of traders failing? It is not because they are stupid; in fact most traders have an above average IQ and are above average in most categories such as education and income. So why do they fail.

Lack of trading education!

By education I don't just mean learning how RSI works or drawing lines on a chart. I mean thoroughly educating yourself in all aspects of your chosen profession. Educating yourself on the correct psychological approach to the market! Educating yourself in the correct risk management techniques relative to your account size. Educating yourself in the correct entry and exit methods for the trading style that suits you.This, my friend, is where I hope to be of some help. I don't have all the answers nor do I profess to be some kind of guru but I will do my best to point you in the right direction.


Common Misconceptions Of New Traders

* They think they can trade consistently with an 80% accuracy.

* They think they can turn $1000 into $100,000 in six months.

* They think they can predict turning points in their given markets to within minutes.

* They think they can buy a system that is 100% accurate.

* They think they will quit their jobs and make a living full time after a few months of trading.

What's the reason that so many new traders believe that trading is an easy way to make
big profits? Propaganda!
We are continually bombarded in magazines, emails and the general media with claims of
making astronomical amounts, just by applying the vendor's latest method or system.
Don't get me wrong, there is good stuff out there but the vast majority is not worth the
price you pay. At www.surefire-trading.com I also recommend products but I have at
least read the ebooks or courses and think they have some value to my subscribers and
they all have a refund guarantee.

Fundamentals Of Trading

Trading is not an exact science. You can't do X and get Y every time. It is as much an art
as it is anything else. There is no magic formula. Trading is all about probability. It is the
art of correctly applying a set of carefully thought out rules and allocating the probability
of that event to result in success.
Each trade is an independent event. The market does not remember if you lost or made
dollars the last time you traded.
The way you approach the market psychologically has as much to do with your success
as any trading plan.
Risk management is crucial if you want to have any hope of becoming a successful
trader.
Matching a method of trading with your personality is the only way you will ever feel
comfortable in the markets.
An adequately funded account is necessary - not only to be able to take the trades you
want, but also so you don't feel every trade is a live or die situation.
The journey to the road of successful trading will make you confront your deepest fears.
Your armor on this journey will be confidence, knowledge and belief in yourself that you
can achieve your dreams.
Never, equate your success or failure in the markets with who you are as a person!

The Flaw In Our Emotions

As humans we have a natural tendency to try and influence our surroundings and events
we take part in. This is one reason we, as a species, have succeeded but it is also one of
the fundamental flaws we all have when trying to achieve success as a traders.

As traders we have to realize we have no control over the market and if we accept that
then we have to accept that we can not influence the direction of the market.
The problem of course is we have a tendency to try and succeed and when inevitable
losses come, it is easy to let those losses effect us emotionally. Becoming euphoric when
you hit a winning streak is almost as detrimental as becoming depressed when you have a
string of losses.
We as traders have to try and achieve the state of impartiality. We have to accept that we
will have losses as readily as we will have wins. Reaching the stage where you can
comfortably accept loss in the knowledge that your method of trading will produce
profits in the longer term is the state we have to aspire to.

Risk Management

Whenever I think of risk management I always think of an article I read on 925 CTA
programs between 1974-1995. It essentially confirmed what I have long held to be true.
To summarize the report, of all the CTA's who managed funds, the most consistently
profitable were the ones with the best risk management systems.
To trade successfully you have to take a long look at yourself. Ask and answer the
following questions.
How much equity do I need to start? How much should I risk on any one trade? Am I
undercapitalized?
During the course of these lessons I will do my best to help answer these and other
questions.

Entry And Exit

As a trader you will probably fall into two main categories, traders who like to trade the
breakout and traders who like to join the trend once established. We could also add
congestion traders, reversal type traders and mechanical signal traders but for the vast
majority of traders you are going to fall into one of the two categories.
If you are a trend trader, you like to define a trend and then find a way in. This may be
with the aid of fibonacci retracement levels, moving averages, Gann or one of the other
many indicators available today. Your goal is to enter the trend as early as possible with
the least amount of risk.
Breakout traders like to enter the market on the breakout of a previously identified range.
This may be support/resistance areas, rectangles, triangles or one of the many other chart
patterns. The secret to this type of trading is to determine a valid break.

In future lessons we shall begin to look at the more technical side of trading and how you
can apply technical analysis to the markets to increase your probability of success.
Conclusion
During this lesson I have tried to give you a glimpse into the world of trading. I have also
taken a slightly negative stance, as I don't want you to get unrealistic expectations of
what to expect.
On the more positive side, trading is a fascinating world, which will allow you to really
exercise your brain. There is no other arena where you get to play with some of the best
minds in the world on a level playing field.
Once mastered, if you can ever use that term then the possibilities are endless.
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Live Charts 24/7

What is live charts?


A graphical depiction of a stock's price movements over time.Technical analysts use chart formations to identify trends in a stock's price and to help them decide whether and when to buy and sell - that is, to determine entry and exit points.Technical analysts also use chart formations to decide where to place initial and trailing stops.

More information 

Types of chart formations include the head and shoulders pattern, which is used to identify trend reversals; the inverse saucer or rounded top, which indicates a peak in a stock's price; the triangle, which indicates the reversal or continuation of a trend and the double-bottom formation, which investors use to identify potential upside targets.

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Economic Calendar

Definition of 'Economic Calendar' 

A calendar used by traders for the purpose of tracking the occurrence of market-moving events. Investors will research the date and time of a specific event and pay close attention to the announcement because of the high probability that it will affect the direction of the market.

More details

Traders in the foreign exchange market pay close attention to global events by using an economic calendar. By having the release schedule for each economic indicator, a trader can anticipate when major movements will happen. The most influential events include interest rate decisions, non-farm payroll numbers, and changes in gross domestic product (GDP), Consumer Price Index (CPI) and Purchasing Managers' Index (PMI). It's important to note that there are several free resources available online that traders can use to help them determine the date/time of future market-moving events.
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