FOREX TREND SECRETS. New Science Of Forex Trading Published by Alaziac CC Suite 509, Private Bag X503 Northway, 4065, KZN, ZA

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FOREX TREND SECRETS New Science Of Forex Trading Published by Alaziac CC Suite 509, Private Bag X503 Northway, 4065, KZN, ZA www.alaziac.

1 FOREX TREND SECRETS New Science Of Forex Trading Published by Alaziac CC Suite 509, Private Bag X503 Northway, 4065, KZN, ZA Copyright 2013 by Alaziac CC, KZN, ZA Reproduction or translation of any part of this work by any means, electronic or mechanical, including photocopying, beyond that permitted by the copyright law, without permission of the publisher, is unlawful. Trademarks: Alaziac CC, New Science Of Forex Trading

2 RISK DISCLOSURE STATEMENT / DISCLAIMER AGREEMENT Trading any financial market involves risk. This report and all and any of its contents are neither a solicitation nor an offer to Buy/Sell any financial market. The contents of this material are for general information and educational purposes only (contents shall also mean the website or any website the content is hosted on, and any correspondence or newsletters or postings related to such website). Every effort has been made to accurately represent this product and its potential. There is no guarantee that you will earn any money using the techniques, ideas and software in these materials. Examples in these materials are not to be interpreted as a promise or guarantee of earnings. Earning potential is entirely dependent on the person using our product, ideas and techniques. We do not purport this to be a get rich scheme. Although every attempt has been made to assure accuracy, we do not give any express or implied warranty as to its accuracy. We do not accept any liability for error or omission. Examples are provided for illustrative purposes only and should not be construed as investment advice or strategy. No representation is being made that any account or trader will or is likely to achieve profits or losses similar to those discussed in this report or anywhere on Past performance is not indicative of future results. By purchasing any content, subscribing to our mailing list or using the website or contents of the website or materials provided herewith, you will be deemed to have accepted these terms and conditions in full as appear also on our site, as do our full earnings disclaimer and privacy policy and CFTC disclaimer and rule 4.41 to be read herewith. So too, all the materials contained within this course, including this manual, whether they appear on our domain(s) or are in physical form, are protected by copyright. "Warning: The unauthorized reproduction or distribution of this copyrighted work is illegal. Criminal copyright infringement, including infringement without monetary gain, is investigated by the authorities and is punishable with imprisonment and a fine." We reserve all our rights in this regard. Alaziac CC, in association with the website, content, and its representatives do not and cannot give investment advice or invite customers or readers to engage in investments through this course or any part of it. The information provided in this content is not intended for distribution to, or use by any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation or which would subject us to any registration requirement within such jurisdiction or country. Hypothetical performance results have many inherent limitations, some of which are mentioned below. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. In fact, there are frequently sharp differences between hypothetical performance results and actual results subsequently achieved by any particular trading program and method. One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk and no hypothetical trading record can completely account for the impact of financial risk in actual trading. For example, the ability to withstand losses or to adhere to a particular trading program or system in spite of the trading losses are material points that can also adversely affect trading results. There are numerous other factors related to the market in general or to the implementation of any specific trading program, which cannot be fully accounted for in the preparation of hypothetical performance results. All of which can adversely affect actual trading results. We reserve the right to change these terms and conditions without notice. You can check for updates to this disclaimer at any time by visiting Governing law: this policy and the use of any of this material and or course, provided in any form, and any content on the website are governed by the laws of the Republic of South Africa. Further details on this are found under the Terms and Conditions on our site. Please ensure you read and agree with all Terms and Conditions as set out on our site before using any of the materials. Your use and reliance on the materials is based on your acceptance of such Terms and Conditions and policies as appear on the site. 1

3 TABLE OF CONTENTS RISK DISCLOSURE STATEMENT / DISCLAIMER AGREEMENT... 1 INTRODUCTION... 3 SETTING UP YOUR CHARTS... 4 PUTTING IT ALL TOGETHER BUY TRADE RULES SELL TRADE RULES BUY TRADE EXAMPLE SELL TRADE EXAMPLE CONCLUSION

4 INTRODUCTION The Forex Trend Secrets trading system is a simple yet powerful system that has performed well during Demo and the Live trading testing producing 50.86% per month. It is a simple system that would be ideal for new traders that are still getting up to speed with trading the Forex market but can also be very powerful in the hands of more advanced traders. The system relies on two key standard indicators that many traders tend to overlook. The system has also been designed to work on an intraday basis but it can be traded on all timeframes and all available currency pairs. The Forex Trend Secrets system is very easy to apply once you are familiar with the rules. It uses a 1:1 to 1:1.5 risk/reward ratio which means you could potentially gain as much as you risk or more on each trade that you enter. The indicators that are part of this system are very easy to understand and interpret making it a great system for new traders. The Forex Trend Secrets system can be considered as a conservative strategy which means that the risks are relatively low. This is a trend following strategy and the entire strategy revolves around ensuring that traders remain on the right side of the trend at all times. As you know, the trend is your friend and if you can follow the rules of this trading system you can be sure that you will remain on the right side of trade for the majority of your trading endeavours. 3

5 SETTING UP YOUR CHARTS This system uses two standard indicators that are available on nearly all trading platforms available on the web. The primary indicator is the Alligator indicator which is one of the most overlooked indicators in trading. The second indicator used in this system is the Relative Strength Index (RSI) indicator. We ll go into greater detail about how these indicators are used as part of the trading system but before we can get to that, we will need to setup our charts by applying each of the indicators and configuring the settings. Setting up your charts to trade this system is very easy. Once you are done setting up your charts, this is what your charts should look like: As you can see on the chart image above, the Forex Trend Secrets system relies on an uncluttered chart setup. Once you are familiar with the Buy and Sell entry rules, identifying trade setups becomes very simple. Before we get to the rules for entering trades, we will need to prepare our charts so let us now take a closer look at how to accomplish this. 4

changing the properties on the Colors tab to match the image below:

6 The first step is to open up a blank chart and change the properties. If you would like your charts to look exactly like mine, start by changing the properties on the Colors tab to match the image below: Next, change the properties on the Common tab to match the image below: 5

soon as you have completed the steps above, you will be presented with the indicators parameters window.

7 At this point, we can start to add our indicators to our chart. Let s begin by adding the Alligator indicator. On your MT4 platform, go to the top menu and click on Insert > Indicators > Bill Williams > Alligator as shown on the image below: As soon as you have completed the steps above, you will be presented with the indicators parameters window. The Alligator indicator uses the default settings so there should be no need to make any additional changes at this point but here s what the settings on your Parameters tab should be set to: 6

On the next tab you will find the Colors settings. As you can see on the image above, the 3 most important components of the Alligator indicator are the Jaws, the Teeth and the Lips.

8 On the next tab you will find the Colors settings. As you can see on the image above, the 3 most important components of the Alligator indicator are the Jaws, the Teeth and the Lips. I ve decided to use the default colors but you will notice that I have changed the thickness of the lines to make them appear bold on my charts. The final tab is the Visualization tab which may remain unchanged as shown on the image below. Next, simply click on the OK button and the indicator will now be added on to your chart. 7

9 The Alligator indicator helps us to identify the overall trend and the direction in which we should be looking to trade. When the lines representing the Lips and the Teeth cross below the Jaws it is a good indication that the market is starting to move downwards. And in the same way, when the lines representing the Lips and the Teeth cross above the Jaws it is a good indication that the market is starting to move upwards. 8

On your MT4 platform, go to the top menu and click on Insert > Indicators > Oscillators > Relative Strength Index as shown on the

10 Now that we have inserted the Alligator indicator on to our charts, we can move on to inserting our next indicator which is the Relative Strength Index (RSI). On your MT4 platform, go to the top menu and click on Insert > Indicators > Oscillators > Relative Strength Index as shown on the image below: As soon as you have completed the steps above, you will be presented with the RSI indicator parameters window. The RSI indicator uses the default setting of 14 and the settings on your Parameters tab should be set as follows: 9

11 On the next tab you will find the Levels settings. There s no need to make any changes here so make sure that your settings match the image shown below: The final tab is the Visualization tab which may remain unchanged as shown on the image below. Simply click on the OK button and the RSI indicator will now be added on to your chart. The final step is to add the Levels we will be using on the RSI. These levels can be added by simply clicking on the Horizontal line tool on the MT4 toolbar. 10

12 There are 3 horizontal lines that need to be inserted on the RSI indicator. As you can see on the image below, we will insert the lines at the 30, 50 and 70 levels: The key level that we will be monitoring when trading this system is the 50 level. If the RSI line is above the 50 level it tells us that the trend is up and if the RSI line is below the 50 level it tells us that the trend is down. 11

13 PUTTING IT ALL TOGETHER Now that you know how to setup your charts we can take a closer look at how the different components of this system work together to produce trade signals. This system works on all currency pairs and all time frames. This system is ideal for day trading and has been found to work best on the 1 Hour time frame. The Alligator indicator is the core of the system. This indicator determines the direction in which we will trade. The Alligator is essentially made up of three key components, the Jaw, the Teeth and the Lips. The Alligator s Jaw is represented by the Blue line. This line is a 13 period Smoothed Moving Average which is shifted 8 bars into the future. The Alligator s Teeth is represented by the Red line. This line is an 8 period Smoothed Moving Average which is shifted 5 bars into the future. The Alligator s Lips is represented by the Green line. This line is a 5 period Smoothed Moving Average which is shifted 3 bars into the future. As you can see on the image below, when the Alligator Lips (Green line) and Teeth (Red line) are above the Jaws (Blue line) the market is considered to be in an uptrend. 12

On the image above, you can see that when the Alligator Lips (Green line) and Teeth (Red line) are below the Jaws (Blue line) the market is considered to be in a downtrend.

14 On the image above, you can see that when the Alligator Lips (Green line) and Teeth (Red line) are below the Jaws (Blue line) the market is considered to be in a downtrend. As you can see, the Alligator indicator helps us determine the trend direction and the RSI serves to confirm the signal. On the image below you can see an example of how the RSI indicator helps confirm the trend direction we have determined using the Alligator indicator. If the RSI line is above the 50 level it serves as confirmation that the market is in an upward trend. On the other hand, if the RSI is below the 50 level it serves as confirmation that the market is in a downward trend. Now that you have a basic idea of how the Forex Trend Secrets system works, let s take a closer look at the rules for entering Buy and Sell trades. 13

BUY TRADE RULES These are the rules for entering a Buy trade: 1. Wait for the Alligator Lip to cross above the Jaw. 2. Wait for the Alligator Teeth to cross above the Jaw. 3.

15 BUY TRADE RULES These are the rules for entering a Buy trade: 1. Wait for the Alligator Lip to cross above the Jaw. 2. Wait for the Alligator Teeth to cross above the Jaw. 3. Wait for the RSI 14 to cross above Enter a Buy trade at the open of the next candle. 5. Insert your Stop Loss below the most recent Swing Low. 6. Set your Take Profit the same number of pips away from your entry price as your Stop Loss, i.e. a 1:1 or greater Risk/Reward Ratio. On the image above you can see an example of a Buy trade as per the rules of entry. As you can see, the Lips crossed above the Teeth. The Lips then crossed above the Jaw and the RSI was above the 50 level. At the open of the next candle I opened a Buy trade order and placed my Stop Loss below the most recent Swing Low around the 20 pips level. My Take Profit was set at the same number of pips as my Stop Loss. Within the space of about 5 candles price had moved in my favour and taken out my Take Profit level. 14

SELL TRADE RULES These are the rules for entering a Sell trade: 1. Wait for the Alligator Lip to cross below the Jaw. 2. Wait for the Alligator Teeth to cross below the Jaw. 3.

16 SELL TRADE RULES These are the rules for entering a Sell trade: 1. Wait for the Alligator Lip to cross below the Jaw. 2. Wait for the Alligator Teeth to cross below the Jaw. 3. Wait for the RSI 14 to cross below Enter a Sell trade at the open of the next candle. 5. Insert your Stop Loss above the most recent Swing High. 6. Set your Take Profit the same number of pips away from your entry price as your Stop Loss, i.e. a 1:1 or greater Risk/Reward Ratio. On the image above you can see an example of a Sell trade as per the rules of entry. As you can see, the Lips crossed below the Teeth. The Lips then crossed below the Jaw and the RSI was below the 50 level. At the open of the next candle I opened a Sell trade order and placed my stop loss above the most recent Swing High around the 50 pips level. My Take Profit was set at the same number of pips as my Stop Loss. Within the space of about 3 candles price had moved in my favour and taken out my Take Profit level. 15

BUY TRADE EXAMPLE Here is another example of a Buy trade using the Forex Trend Secrets system: On the image above you can see an example of a Buy trade as per the rules of entry.

17 BUY TRADE EXAMPLE Here is another example of a Buy trade using the Forex Trend Secrets system: On the image above you can see an example of a Buy trade as per the rules of entry. As you can see, the Lips crossed above the Teeth. The Lips then crossed above the Jaw and the RSI was above the 50 level. At the open of the next candle I opened a Buy trade order and placed my stop loss below the most recent Swing Low around the 90 pips level. My Take Profit was set at the same number of pips as my Stop Loss. Price moved in my favour immediately but it took a bit of time before price made its way up to my Take Profit level which was set just over 90 pips away from the entry level. 16

SELL TRADE EXAMPLE Here is another example of a Sell trade using the Forex Trend Secrets system: On the image above you can see an example of a Sell trade as per the rules of entry.

18 SELL TRADE EXAMPLE Here is another example of a Sell trade using the Forex Trend Secrets system: On the image above you can see an example of a Sell trade as per the rules of entry. As you can see, the Lips crossed below the Teeth. The Lips then crossed below the Jaw and the RSI was below the 50 level. At the open of the next candle I opened a Sell trade order and placed my stop loss above the most recent Swing High around the 100 pips level. My Take Profit was set at the same number of pips as my Stop Loss. Price moved in my favour immediately but it took a bit of time before price made its way down to my Take Profit level which was set just over 100 pips away from the entry level. 17

19 CONCLUSION By now I am sure that you will agree that the Forex Trend Secrets trading system is a simple yet powerful system. Remember, this system has performed very well during Demo and the Live trading testing producing 50.86% per month so I am sure that this system will work well for you when applied in the correct way. Take your time and practice using this system and you will see that this strategy can be very powerful in the hands of responsible traders. By trading this system you will always be on the right side of the trend and this is a vital part of being a profitable trader. Stick to the rules and I am sure that you will be very happy with the results. All the best! 18

Presents. Trade Predator

Presents. Trade Predator Presents RISK DISCLOSURE STATEMENT / DISCLAIMER AGREEMENT Trading any financial market involves risk. This report and all and any of its contents are neither a solicitation nor an offer to Buy/Sell any