PRESENTS THE MAXTRADE DOMINATOR TRADING SYSTEM By Toshko Raychev
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 http://www.forexprecog.net or any website ( the sites ) the content is hosted on, and any email 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 the 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 on http://www.forexprecog.com or on the sites. 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 here with. 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 Trading CC, in association with http://www.forexprecog.com, the sites, 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 the set terms and conditions without notice. You can check for updates to this disclaimer at anytime by visiting http://www.forexprecog.com. Governing law: this policy and the use of this report / course / DVDs / ebook, 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.
Technique Hi There! This is a new technique that uses the RSI indicator for trend determination. The RSI The RSI is an indicator that is freely available on most trading platforms. Firstly, it s important to note that this is an oscillator that oscillates between levels 0 and 100. The most common way of using this indicator, when determining trend direction, is by making use of the 50 level. When the RSI crosses above the 50 level we assume that an uptrend has started and if the RSI crosses below the 50 level we assume that downtrend has started. The image below shows a typical example of the RSI on a chart: www.forexprecog.com 3
During my tests I found another way to determine trend by using this useful RSI oscillator. Basically, it s pretty easy to follow and very rewarding. The settings of RSI I use for this technique are as follows: RSI period 5, Price typical, Levels 30 and 70. We will also take a look at the RSI readings on the next higher timeframe in order to determine the trend direction. Here s a short list of timeframes and the corresponding next higher timeframes used: Current Timeframe M1 M5 M15 M30 H1 H4 D1 W1 Next Higher Timeframe M5 M15 M30 H1 H4 D1 W1 MN So then, if we are trading the M5 (5 minute) timeframe for example, then our next higher timeframe we will look at to determine trend will be the M15 (15 minute). I have coded an indicator for you that shows the next higher timeframe RSI readings on your current trading timeframe, so there is no need to switch between timeframes to check these, I ve named the indicator the RSI Trend and you ll be able to download it on the same page that you received this report. Let s now take a look at how we will determine the trend direction using the RSI indicator. www.forexprecog.com 4
In the following instances we have an uptrend: 1. When the RSI crosses the 30 level from below and moves upwards above this level, and as long as it remains in this position above this level, we accept that the trend is to the upside. 2. When the RSI crosses the 70 level from below and moves upwards above it, and as long as it remains in this position above this level, we accept that the trend is to the upside. The following image demonstrates these: On the image above, the blue zone marks entire uptrend area. The uptrend started when the RSI crossed above the 30 level from below, and continued when the 70 level was crossed upwards from below, which could be seen as another start of an uptrend. The uptrend ends when the RSI crosses below the 70 level from above. www.forexprecog.com 5
In the following instances we have a Downtrend: 1. When the RSI crosses the 70 level from above and moves downwards below it, and as long as it remains in this position below this level, we accept that the trend is to the downside. 2. When the RSI crosses the 30 level from above and moves downwards below it, and as long as it remains in this position below this level, we accept that the trend is to the downside. The following image demonstrates these: On the image above, the blue zone marks the entire downtrend area. The downtrend started when the RSI crossed below the 70 level from above and continued when the 30 level was crossed downwards from above, which could be seen as another start of a downtrend. The downtrend ends when the RSI crosses above the 30 level from below. We just covered know how the RSI can be used to determine trend direction. We also have next higher timeframe indicator. Let s now see how we can use what we have just learned. This system can be used as a standalone trading system to catch reversals on the trend. For this we will have to look to the current and the next higher timeframe RSI Trend indicator readings. I will illustrate this with a long and short trade example. www.forexprecog.com 6
LONG ENTRY (Buy) Rules: 1. RSI Trend indicator crosses above the 30 or 70 level from below. 2. RSI Trend indicator is above the 30 or 70 level on the next higher timeframe, showing an uptrend. 3. Wait for the close of the current signal candle and at the opening of the next candle, as long as the conditions above remain the same, place a long entry on the current timeframe. 4. The stop loss is set just below the most recent swing low point. 5. The trade is closed once the RSI Trend indicator falls below the 30 or 70 level. 6. Stop loss could be trailed behind each successive swing low point until the trade is closed or the stop is hit. I will use an example to illustrate a long trade on the GBP/JPY currency pair on a M5 (5 minute) timeframe chart. On 08.09.2015 at the opening of the candle at 07:15 am, the RSI Trend indicator crossed above the 30 level, giving the first signal for a long entry as depicted on the image below: www.forexprecog.com 7
Immediately after this, the next higher timeframe M15 (15 minute) was checked for a confirmation of the signal and, as it can be seen from the image below, the RSI Trend indicator on the M15 was also above the 30 level: So now, all that was required was to wait for the current signal candle to close and as long as these conditions remained intact, a long entry could be placed on the opening of the next candle, as can be seen on the next image: www.forexprecog.com 8
At the opening of the new candle at 07:20 am a long entry was placed at the 182.025 price level. The Stop Loss was set just below the most recent swing low point at 181.775, 25 pips down from the entry. The trade was closed 6 hours and 25 minutes later at 184.672, when the RSI Trend indictor fell below the 70 level giving a possible reversal signal. The net profit from this long trade was 264 pips, which is more than 10 times the Stop Loss amount. www.forexprecog.com 9
SHORT ENTRY (Sell) Rules: 1. The RSI Trend indicator crosses below the 30 or 70 level from above. 2. The RSI Trend indicator is below the 30 or 70 level on the next higher timeframe, showing a downtrend. 3. Wait for the close of the current signal candle and at the opening of the next candle, as long as the conditions above remain the same, place a short entry on the current timeframe. 4. The Stop loss is set just above the most recent swing high point. 5. The trade is closed once the RSI Trend indicator climbs above the 30 or 70 level. 6. The Stop loss could be trailed behind each successive swing high point the trade is closed or the stop is hit. To illustrate the short entry rules, I will use an example short trade on the GBP/AUD currency pair on the M30 (30 minute) timeframe chart. On 10.09.2015 at the opening of the candle at 04:00 am, the RSI Trend indicator crossed below the 70 level, giving the first signal for a short entry as can be seen on the image below: www.forexprecog.com 10
Immediately after this, the next higher timeframe H1 (1 hour) was checked for a confirmation of the signal and, as it can be seen from the image below, the RSI Trend indicator was also below the 70 level: So now all that was needed was to wait for the current signal candle to close and, as long as these conditions remained the same, a short entry could be placed on the opening of the next candle, as it can be seen on the next image: www.forexprecog.com 11
At the opening of the new candle at 04:30 am a short entry was placed at the 2.20457 price level. The Stop Loss was set just above the most recent swing high point at 2.21127, standing at 67 pips up from the entry. The trade was closed 9 and a half hours later at the 2.17665 level, when the RSI Trend indictor climbed above the 30 level indicating a possible reversal signal. The net profit from this short trade was 279 pips, which is over 4 times the Stop Loss amount. www.forexprecog.com 12
SUMMARY So then I ve presented another highly profitable way to read the RSI indicator signals along with a very profitable trading system on its own, using my particular way of using the readings. Try it out. I hope you also use it to effectively make some good profits for yourself. Yours Truly Toshko Raychev www.forexprecog.com 13