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C%&C re'$ired discl imer: &r ding foreign exch nge on m rgin c rries

high level of ris"# nd

m y not !e s$it !le for ll investors. &he high degree of lever ge c n wor" g inst yo$ s well s for yo$. (efore deciding to invest in foreign exch nge yo$ sho$ld c ref$lly consider yo$r investment o!)ectives# level of experience# nd ris" ppetite. &he possi!ility exists th t yo$ co$ld s$st in loss of some or ll of yo$r initi l investment nd therefore yo$ sho$ld not invest money th t yo$ c nnot fford to lose. C%&C *+,- 4.41 . /ypothetic l perform nce res$lts h ve m ny inherent limit tions. No represent tion is !eing m de th t ny cco$nt will or is li"ely to chieve profits or losses simil r to those shown. 0n f ct# there perform nce res$lts nd the re fre'$ently sh rp differences !etween hypothetic l chieved !y ny p rtic$l r tr ding ct$ l res$lts s$!se'$ently

progr m. 1ne of the limit tions of hypothetic l perform nce res$lts is th t they re gener lly prep red with the !enefit of hindsight. 0n ddition# hypothetic l tr ding does not involve p rtic$l r tr ding progr m in spite of fin nci l ris". 2 ri !les s$ch s the !ility to dhere to ffect ct$ l re l tr ding res$lts.

tr ding losses s well s m int ining de'$ te li'$idity re m teri l points which c n dversely

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Content
Introduction Overview Section 1 Trends &he 4yth 1f 4 r"et &rend /ow &o 0ncre se &he Profit !ility 1f Any 6ystem /ow &o 8etermine &he &rend 9h t 0s A &rend 8r wdown Protecting Ag inst 2ol tility -xercise &he +ltim te 6ol$tion Section 2 Patterns /ow &o 8r w &rend ,ines -x mples: <ood &rend ,ines 2s. ( d &rend ,ines =&ri ngles# %l gs# 9edges...> /ow &o &r de Ch rt P tterns -xercise *ecogni?ing Ch rt P tterns 1; 20 22 24 27 :1 5 7 10 1: 14 15 17 4 3

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Introduction
&his report w s written to ill$min te the top mis$nderstood %orex re s nd help %orex tr ders s$cceed nd st y profit !le. &he inform tion is presented in re d !le w y for !eginners s well s dv nced tr ders th t w nt to t$ne $p their tr ding ppro ch nd incre se their s$ccess r te. @o$ will le rn !y stressing the common mist "es nd often reve ling o!vio$s !$t $nderestim ted tr ding techni'$es. 4ost tr ders st rt !y s"ing the correct '$estion: =9h tAs the c$rrent m r"et trendB># !$t then most of them f il to determine the trend correctly nd lmost ll tr ders miss the next import nt '$estion: =/ow reli !le is the c$rrent trendB> 0f yo$ donAt t "e the trend into cco$nt# yo$ will often !e tric"ed into pl cing low winning.pro! !ility tr des. &rend is yo$r friend. (y following the trend it c n only !e !etter. ($t yo$ h ve to disting$ish !etween the re l trend nd very tempting price ction th t w nts to pl y with yo$r emotions. @o$ will lso $nderst nd the ! sic principles !ehind ch rt p tterns# how to dr w strong trend lines# how to recogni?e the p tterns nd how to tr de them. 9e lw ys "eep tr ding simple nd therefore we foc$s only on the most reli !le ch rt p tterns. 9ith the following "nowledge# yo$ will !e !le to spot the p tterns le ding to explosive price movements nd then tr de profit !ly with it. -n)oyC

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Overview
9e will cover two different !$t close re s th t ll s$ccessf$l tr ders h ve m stered: Section 1 Trends &he =!$y nd hold> str tegy is de d tod y. 8o m r"et trends existB &he common ppro ch in ll trend following systems &r$e story: simple tr ding system th t m de fort$ne for one f mo$s tr der nd his investors 1ne =tric"> th t will m "e the difference !etween losing Dor !re "ing. evenE nd winning &he common mist "e: seemingly =strong $ptrend> is followed !y f ll /ow to identify the re l trend $sing p$re price ction 9hich trend is more reli !le nd how to comp$te the trend reli !ility Another common mist "e: 6top ,oss not reflecting the c$rrent m r"et vol tility 9hich m r"ets to void nd how reli !le trends incre se s$ccess r te Section 2 Patterns &he g$idelines to dr wing good trend lines. (re "ing thro$gh trend line res$lts in m ssive nd profit !le move. strong h rd

6ever l ex mples of good nd ! d trend lines nd the common mist "es =&ime !om!s> constr$cted !y trend lines &he definite str tegy to enter n order# pl ce yo$r 6top ,oss nd t "ing profit +sing the =Pro)ection 4ethod> to determine the =& "e Profit> Point 0ntelligent softw re th t c n recogni?e strong trend lines nd ch rt p tterns
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Section 1 Trends
The myth of market trend &rend following h s !een the !est style of tr ding for the p st :0 ye rs. &here were times when tr ders m de fort$nes )$st !y following the trend or following simple system ! sed on two moving ver ges crossover. &he =!$y nd hold> str tegy th t w s so pop$l r !y tr ders !o$t dec de go is de d tod y.

,oo" t the -+*F+68 ch rt from G n$ ry 2001 $ntil G$ly 200H. &he $ptrend w s pretty strong most of the time. 0f yo$ p$shed the =($y> !$tton# yo$ wo$ld win most of the time even with poor tr ding system. &he consistent rise of the cle r sense of the over ll trend. e$ro over the doll r w s giving yo$

6ince G$ly 200H# it loo"s li"e everything h s ch nged. &he trend direction is $ncle r# no!ody "nows wh t is going to h ppen next nd people re serio$sly prep ring for the coming coll pse of the single -$rope n c$rrency. (y the w y# for $s D%orex tr dersE it wo$ld !e nothing !$t nother opport$nity to m "e profit# so "eep smiling.

www.forextrendy.com 8oes it ll me n th t m r"ets re not trending tod yB 1f co$rse they re trendingC &rends exist nd they c n !e tr ded $p nd down for profit. &here will lw ys !e short.term trends in ny m r"et# the only '$estion is whenC 6o# the !ig '$estion isI>how do we find the !est trending m r"et nd not miss the opport$nity of t "ing tr ding sign ls in the direction of find definite nswer soon. strong trendB> @o$ will

&he !elief th t trend following is n o$td ted tr ding techni'$e is only p rti lly tr$e. 0t is tr$e th t there is h rdly ny m r"et with cle r over ll trend direction. @o$ co$ld follow the tempor ry trend only if you are able to determine the trend correctly. &his is the point where so m ny tr ders f il. A p ir moving $p on :0.min$te time fr me c n ct ex ctly contr ry on n ho$rly time.fr me. r re coincidence c$rrency p ir moving in the s me -ven if yo$ find

direction on ll time fr mes yo$ still need to "now =how well the market is trendin to void very short.term trends. &he sol$tion is sm rt nd simple. !ow to increase the "rofitability of any system (efore yo$ discover the most simple nd effective method to determine the trend# letAs see wh t itJs good for. All the trend following systems re ! sed on one common ppro ch:

=($y the dips in n $ptrend nd sell the r llies in

,etAs reve l one simple tr ding system th t ct$ lly m de him. /ere is the set.$p.

downtrend.>
fort$ne for one

f mo$s tr der nd his investors. &he system =8onchi n 3 K 20> is n med fter

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0n the ch rt !ove# yo$ see two indic tors L the !l$e line nd the red line. &he !l$e line is the indic tor 64A 3 Dst nds for simple moving ver ge with period 3E nd the red line is 64A 20 Dsimple moving ver ge with period 20E. 8onchi nAs ide w s very simple: 1# $uy when the blue line crosses the red line u"wards 2# Sell when the blue line crosses the red line downwards -ven 3.ye r old child co$ld do thisC Act$ lly# there is nothing speci l !o$t

this system. All trend following systems re li"e this. 6ome systems re more dv nced# with more sophistic ted indic tors# !$t the common ppro ch is to

!$y the dips nd sell the r llies.

If everyone could do this% then what&s the money makin secret' &he nswer is th t 8onchi n $sed this system in strong !$ll m r"ets. @es#

trending m r"etsC &his import nt note is the "ey to consistent profits s

ill$str ted in the ch rt !elow.

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&he first tr de w s profit !le !ec $se it w s m de in the direction of the strong trend. &he next tr des le d to losses s the m r"et w s t$rning $p nd down witho$t cle r direction. Profits m de in the first tr de wo$ld !e t "en ! c" in series of losses. /ow 8onchi n de lt with it w s sm rt. /e ignored ll tr ding sign ls when the red line w s not going $p on t le st in 43 degree ngle. /e wo$ldnAt t "e ny fort$ne from losing tr des fter the first tr de !ec $se the red line is not trending t ll. 0t is so c lled choppy ?one. 6o why w s 8onchi n !le to m "e s$ch simple system while others co$ld notB (ec $se others wo$ld throw this good trend nd

system w y s not profit !leC &he only =tric"> w s to follow not t "ing ny other tr des. (hat is the lesson from this story'

0f yo$ "now how to determine the m r"et trend correctly# it co$ld m "e difference !etween losing or !re ".even nd winning. 8onchi n $sed moving ver ge to determine the trend nd filter tr ding sign ls. simple

www.forextrendy.com 1. 9hen the m r"et w s trending# he t$rned his system on. 2. 9hen the m r"et w s in choppy ?one# he t$rned his system off nd ignored ny tr ding sign ls. 9h t yo$ c n do is )$st the s me with ny tr ding system or ro!ot. 8etermining the trend $sing simple moving ver ge c n !e repl ced with more sophistic ted# vers tile techni'$e th t yo$ will le rn in the next p ges. !ow to determine the trend 6ome people le rn from their mist "es# !$t sm rt people le rn from other peopleAs mist "es. 6o letAs st rt with ex mples of ppro ch to m r"et trend n lysis. wrong !$t very common

9h t yo$ see in this ch rt is explosive price movement th t is $s$ lly the res$lt of news rele se. All !ro"ers# pl tforms nd v rio$s c$rrency tools re =strong $ptrend># tempting people to )$mp in nd m "e choppy ?one# or h rd f ll. profit. indic ting

9h t h ppens next is# t !est# 9h t is ct$ lly in the ch rt re

few consec$tive long green c ndlestic"s. &his

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www.forextrendy.com is not re l trend# !$t immedi te price ction# tempting tr ders to initi te costly nd p inf$l exercise. &o void f lling into this re l trend loo"s li"e:

tr des nd experience

tr p# yo$ need to foc$s on longer trends. &his is wh t

&he price is consistently rising with no s$dden ch nges or explosive movements. @o$ c n expect th t this trend will contin$e nd yo$ sho$ld t "e only !$llish sign ls. 1!vio$sly the trend wonAt l st forever nd yo$ c n even h ve ! d l$c" !y entering the m r"et t the end of the trend# !$t the odds work for you. 0t simply c nnot !e !etter. &here re 100s of free or propriet ry indic tors to identify the trend !$t !elieve or not# no indic tor is !etter th n the h$m n eye. As Al!ert -instein s id:

=4 "e things s simple s possi!le# !$t not simpler.>

Now letAs reve l the e sy !$t the most effective method to identify the trend. 1. Moom the ch rt inFo$t to show !o$t 200 ! rs. Notice th t 200 ! rs on d ily ch rt Dor 200 tr ding d ysE correspond to 1 ye r. 2. Connect the lower left corner with the $pper right corner. 0f the line overl ps with the price ! rs sever l times Dthe more times# the !etterE# yo$ h ve fo$nd reli !le $ptrend. 6ee the ex mple !elow.

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:. Connect the $pper left corner with the lower right corner. 0f the line overl ps with the price ! rs# yo$ h ve fo$nd reli !le downtrend.

As yo$ see# the m r"et is li"e re too high to consider it

se w ve nd it "eeps on going $p nd down. reli !le $ptrend# or the r llies

6ometimes the dips re too deep to consider it

reli !le downtrend. Nnowing the =trend reli !ility>

is the "ey to discover the real and reliable trend. 6o# how do we determine if the trend is reli !le# or whether it is !etter to st y offB &he !est w y is to forget ny l gging indic tors# !$t to $se p$re price ction.
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www.forextrendy.com (hat is a trend drawdown &rend dr wdown is comp$ted from p$re price ction nd so is the !est w y to determine the trend reli !ility. 0t simply tells yo$ how deep the price went g inst the c$rrent trend. @o$ will ppreci te this method in the next p r gr ph =Protecting g inst vol tility>. Now# t "e loo" t the ch rt !elow.

&he !l$e line indic tes the deepest move g inst the c$rrent trend. 0n this ex mple it is 2:: pips. &he whole move in this ch rt is HH2 pips. &he trend dr wdown is: 2:: F HH2 O cc 25P Not ! d. Conserv tive tr ders wo$ld prefer the trend dr wdown to !e !elow 20P s it is more reli !le. &he Q!ig dogsJ prefer trends with dr wdown even !elow 13P. 6$ch trends exist lmost every d y in t le st one %orex ch rt. &rends with dr wdown !elow 10P re very r re# !$t when they ppe r# they re gold mines L yo$ c n e sily chieve winning percent ge !ove ;0P.

&he lower trend dr wdown O the more reli !le trend O the gre ter s$ccess r te O the more consistent profitC
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One more im"ortant note) /ow m ny ! rs sho$ld we $se to define the trendB 9e h ve $sed 200 ! rs in the ex mples !ove. 0t is compromise L not too m$ch# not too little. 0f yo$ were to $se only 20 ! rs# yo$ wo$ld ris" entering the short.term explosive m r"et movements which re not re l trends s we h ve expl ined !ove. 0f yo$ were to $se 300 ! rs# yo$ wo$ld h rdly find ny c$rrency ch rt with trend dr wdown !elow 20P. (efore we show yo$ how to system tic lly pic" the !est trending p irs nd time fr mes every d y# letAs loo" t how to $se the trend dr wdown in the most import nt spect of tr ding L $sing Protectin a ainst volatility 6top ,ossC

,oo" t the ch rt !ove. &he tr der who pl ced the 6top ,oss right fter entering the m r"et deserves gre t ppl $se !$t the pro!lem is# the 6top ,oss is too tightC <ive the m r"et eno$gh sp ce to !re th or the 6top ,oss will !e hit very '$ic"ly. 6ome tr ders $se fixed n$m!er of pips# something li"e 30 pips or 100 pips...

this is ! dC 6top ,oss h s to reflect the c$rrent m r"et vol tility. As" yo$rself:

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www.forextrendy.com =when did the price go s deep s my 6top ,ossB> 0f it h s h ppened sever l times in the c$rrent ch rt# why wo$ld yo$ thin" yo$r 6top ,oss will not !e hit nowB The ideal Sto" *oss should be reater than the trend drawdown# ,isten to the m r"et# not to the pips. 0n the ex mple !ove# the 6top ,oss sho$ld !e t le st 2:: pips. &oo m$chB 9ell# $se t "e the tr de. &he worst thing yo$ c n do is $se yo$ w nt sm ller lot si?e. 0f yo$ tr de sm ll pip v l$e )$st !ec $se 1 minilot nd R2:: is !ove yo$r ris" toler nce# then $se microlots. 1r donAt sm ll ris". Act$ lly# yo$ wo$ld ris" more !ec $se if yo$ donAt give

the m r"et eno$gh sp ce to !re th# the 6top ,oss wo$ld li"ely !e hit reg rdless of how good yo$r tr ding system Dor reli !le the trendE is. @o$ wo$ld do well if yo$ wo$ld $se the trend dr wdown S 1 pip s the pip v l$e for the 6top loss D2:: S 1 O 2:4 pips in the ex mpleE. 0f yo$ w nt to incre se the s$ccess r te !$t on the other side# incre se the ris" when comp red to the profit potenti l# yo$r 6top ,oss sho$ld !e set t 1.3 x trend dr wdown. Sto" *oss + 1#, - trend drawdown + 1#, - 2.. "i"s + cca .,/ "i"s 6ome tr ders wo$ld prefer even 2 x trend dr wdown O 455 pips. 6$ch 6top ,oss wo$ld !e s fe eno$gh from the wild m r"et. 0tAs ll !o$t st tistics. m$ch s fer

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www.forextrendy.com 0-ercise Now itAs time for down trends. little exercise. /ere re two ch rts with o!vio$s $p nd

&he m xim$m dr wdown indic ted !y the !l$e line st rts from the high t 7H.55 nd ends t the low t 7H.1H. &he trend dr wdown in pips is: 12#33 12#12 + /#42 542 "i"s6 Now letAs c lc$l te the percent ge dr wdown. &he visi!le $ptrend st rts from the low t 75.05 nd the m xim$m high is t 7;.30. &he over ll move in the c$rrent ch rt is: 17#,/ 13#/3 + .#44 5.44 "i"s6 &he percent ge dr wdown is: 42 8 .44 + cca 149 No do$!t# the trend with dr wdown !elow 13P is solid. Pl ce the 6top ,oss t le st 4; pips !elow the initi l entry point.

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www.forextrendy.com 0n the next ch rt# there is downtrend.

&he trend dr wdown in pips is: 1#./3, 1#27,, + /#/11/ 511/ "i"s6 Now letAs c lc$l te the percent ge dr wdown. &he visi!le downtrend st rts from the high t 1.:2H: nd the m xim$m low is t 1.25H2. &he over ll move in the c$rrent ch rt is: 1#.22. 1#2322 + /#/3/1 53/1 "i"s6 &he percent ge dr wdown is: 110 F 501 O cc 1HP &he trend reli !ility is moder te. Pl ce the 6top ,oss t le st 111 pips !ove the entry point. The ultimate solution 8iscipline nd p tience re the two "ey points to s$cceed in the %orex m r"et. 6top h$nting the m r"et for every potenti l tr de. Prep re !efore tr ding. 6c nning few c$rrency p irs on ll time fr mes c n t "e yo$ !o$t 13 min$tes# !$t the conse'$ences re inv l$ !le. Pic" only the !est trending c$rrency p irs nd time fr mes nd ignore ll other $npredict !le movements.

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www.forextrendy.com &r de less# profit more. A few g$idelines: 1. Trade only if the trend drawdown is below 2/9# Dprefer !ly !elow 13PE. 2. If the trend drawdown is below 1,9# yo$ c n !e consistently profit !le even with Dp ge 5E. 3. If the trend drawdown is below 1/9# yo$ h ve fo$nd @o$ c n simply enter the m r"et in the trend direction with s$ccess r te. &he :ore- Trendy $ltim te sol$tion sc ns :4 %orex p irs on ll time fr mes for yo$ every second. 0t c lc$l tes the trend dr wdown for e ch ch rt nd shows the most reli !le trends sorted !y reli !ility ! sed on yo$r preferences. gold mineC ;0P simple tr ding system s$ch s =8onchi n 3 K 20>

Clic" here to w tch

video how it wor"s

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Section 2 Patterns
!ow to draw trend lines 4ost tr ders thin" th t dr wing trend lines is ll !o$t connecting v rio$s highs nd lows. 9itho$t proper "nowledge K experience# yo$ wo$ld see them everywhere# however not ll trend lines sho$ld !e considered. 0f yo$ follow the g$idelines to dr wing good trend lines# there is line res$lting in high ch nce th t the price will respect yo$r trend line nd get repelled !y it# or it will !re " thro$gh the trend m ssive nd profit !le move. ,etAs st rt with some ! sics.

1. &he u""er trend line D!l$eE connects t le st two lower highs# so it is sloping down. 2. &he lower trend line D!l$eE connects t le st two higher lows# so it is sloping $p. 3. &he red trend line in the ch rt is !$t it is sloping $pC 6$ch little controversi l when it comes to disc$ssion. 0t is o!vio$sly n $pper trend line Dconnecting two highsE# trend line lone is not v lid $nless we de l lower trend line is with =9edges> nd =%l gs> s yo$ will see in the next p ges. *emem!er: n $pper trend line is sloping down# while sloping $p.

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0-am"les) ;ood Trend *ines vs# $ad Trend *ines

9hen the price !re "s thro$gh strong trend line# it goes f$rther# offering yo$

gre t profit potenti l. @o$ c n dr w m ny trend lines in one single ch rt# !$t there re sever l g$idelines to choose only the strongest trend lines: 1. Prefer trend lines with more than two touchin "oints# D&rend lines !ecome stronger the more times they re testedE. 2# The touchin "oints should not be too close to ether# :. *on er trend lines are stron er than shorter trend lines# ,onger trend lines re lso seen on the $pper time fr mes# so more tr ders re w re of them.

0n the ex mple !ove the to$ching points re very close together forming n $nreli !le trend line. &here is no other to$ching point on the rest of the trend line. 0n the next ex mple !elow# the two to$ching points re not so close together# !$t the trend lines re too short. < ood trend line should be at least ,/ bars lon . &here exist m$ch !etter $pper nd lower trend lines in this ch rt s shown in the previo$s p ge.
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=ow let&s see some ood trend lines>

&he trend line !ove h s : to$ching points nd c n !e considered s m$ch stronger th n trend lines in the previo$s ex mples. &he points re evenly distri!$ted nd the trend line is long eno$gh. All three g$idelines re met perfectly.

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Now this trend line is !$t this is not

monsterC 0t is long eno$gh with 3 to$ching points. @o$

m y notice th t there re two gro$ps of two points th t re too close together# pro!lem s long s the other points meet the g$ideline. Treat a rou" of close "oints as one ?bi "oint#

?Trian les% :la s% (ed es###

Now th t yo$ "now how to dr w trend lines# yo$ re one step w y from discovering the oldest m r"et phenomenon: ch rt p tterns. @o$ re !o$t to le rn incredi!ly reli !le price form tions th t h ve time nd time g in provided $s with consistent profits. &he $pper nd lower trend lines re forming trian le s seen in the next

ch rt. As the price is oscill ting !etween the two !o$nding lines# the !$yers nd sellers re in t$g of w r# nd event$ lly the price will !re " thro$gh one of the lines L no!ody "nows which oneC 0n the next p ges yo$ will le rn how to p rticip te in this explosive move.

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:allin wed e is li"e tri ngle# !$t !oth trend lines slope down. *ec ll th t the !ottom line lone wo$ld not !e v lid trend line. @o$ !egin !y dr wing the $pper trend line nd then yo$ complete the wedge or tri ngle Dit depends on which line h s more to$ching pointsE. 1ne import nt note: the u""er and bottom trend lines must conver e so that the "rice is bein s@ueeAed#

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&he fl g p ttern is encomp ssed !y two p r llel lines. &he price is not s'$ee?ed !y the trend lines# !$t it is moving inside the ch nnel formed !y the trend lines. :la s are usually seen as the market "auses after a bi move before continuin its main trend# All the presented p tterns !ove re in n $ptrend. &he $ptrend does not need to !e perfect# the price !efore the p ttern is )$st rising. Ch rt p tterns fter downtrend re simil r. 9e will foc$s only on contin$ tion p tterns# th t is# !$ying in n $ptrend nd selling in downtrend. @o$ m y he r !o$t revers l

p tterns# !$t tr ding g inst the trend re'$ires

lot of experience. 4 ny ! n"s

h ve cr shed nd m ny fort$nes were lost !ec $se of st$!!orn tr ders trying to pic" the tops nd !ottoms. &rend is yo$r friend# so "eep it simpleC

!ow to trade chart "atterns

Now itAs time to reve l the definite str tegy to enter n order# pl ce yo$r 6top ,oss nd t "e profit# so yo$ donAt need to w tch the m r"et nd yo$ donAt let yo$r emotions control yo$r tr ding.

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The best way to enter the market is by usin ?Sto" Orders and ?*imit Orders#
9hen the orders re pl ced# they re loc ted on the !ro"erAs server# so yo$ c n s fely le ve yo$r tr ding pl tform. &his !rings yo$ freedom from trying to spot the !est entry point.

&he entry r$le is simple: 1. 0f yo$ tr de p ttern in n $ptrend# "lace a $uy Sto" Bust above the

u""er trend line# 9here ex ctlyB @o$ m y w nt to pl ce it 3 pips !ove the trend line to spot the re l !re "o$t. &he dv nced ppro ch is to reflect the m r"et vol tility s we will disc$ss it l ter. 2# Place a Sto" *oss Bust below the lower trend line# :. 0f yo$ tr de p ttern in downtrend# yo$ do )$st the opposite L pl ce 6top ,oss !ove the 6ell 6top order !elow the lower trend line nd $pper trend line. 4ore in the -xercise. &he interesting p rt is when to & "e A Profit. 4 ny tr ders enter the tr de

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www.forextrendy.com !lindly witho$t ny ide where to exitC Notice th t the 6top ,oss !elow the trend line reflects the c$rrent m r"et vol tility. 0t is not D nd never sho$ld !eE fixed n$m!er of pips. &he s me sho$ld hold for the & "e Profit. @o$ c nnot )$st decide th t 30 pips is eno$gh nd yo$ wo$ld exit the position. 30 pips is very different on min$te time fr me nd d ily time fr me. There are two reat methods to find the Take Profit level) 1. ProBection method L e sy 2. :ibonacci method L $sing sever l & "e Profit levels# !$t !etter ,etAs foc$s on the first oneT The ProBection Cethod. little complex#

1. 4e s$re the gre test width of the p ttern. 2. &his pip v l$e will !e $sed for the & "e Profit. +se the s me method for tri ngles# wedges# fl gs or single trend lines. As the m r"et !re "s from the choppy ?one# it norm lly tr vels t le st the pro)ected
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www.forextrendy.com dist nce. 1ne note !o$t the fla s and wed esD As the price tr vels !etween the !o$nd ry lines# it h ppens th t the trend line is not !ro"en nd the p ttern !ecomes deeper# or even no more v lid. 0n s$ch c se c ncel the order nd pl ce new one to reflect the c$rrent sit$ tion. 6ometimes the sit$ tion is not going s yo$ h d pl nned nd the price !re "s thro$gh the other trend line. &hen simply c ncel the order nd forget the p ttern. * ther not t "ing the tr de th n t "ing ! d tr de is the "ey of s$ccessf$l tr ding. &here will !e plenty of other opport$nitiesC Neep in mind th t ch rt p tterns c n ppe r nd dis ppe r# or morph into nother p tterns. An emerging p ttern is not confirmed $ntil the relev nt trend line is !ro"en. 0-ercise %irst# letAs loo" t the cle n ch rt !elow. &here re sever l signific nt highs nd lows th t c n !e connected with trend line. (efore the choppy ?one we see !$y order. minor $ptrend# so we re going to complete the p ttern nd pl ce

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www.forextrendy.com &here is )$st one w y to dr w the two trend lines th t meet the g$idelines. &hese trend lines re forming tri ngle p ttern. 1. Place a $uy Sto" order Bust above the u""er trend line. 2# Place a Sto" *oss Order Bust below the lower trend line# :. &he dist nce of the highest high nd the lowest low of the p ttern is ;: pips# so this is the pip v l$e for the & "e Profit.

As the p ttern contin$es to grow# yo$ c n repl ce the ($y 6top order !ro"en# the ($y 6top order is exec$ted nd the & "e Profit is hitC

!it

lower to the trend line# !$t itAs not necess ry. %in lly# the $pper trend line is

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www.forextrendy.com

<nother e-am"le) A minor downtrend is preceding some p ttern. &he lower trend line is o!vio$s. 9h t !o$t the $pper trend lineB 0tAs not completely o!vio$sT there re sever l w ys to complete the p ttern into tri ngle# wedge or fl g. 9e wo$ld prefer fl g !ec $se tri ngle or wedge wo$ld !e too wide nd the & "e Profit wo$ld !e too f r D$nless yo$ $se Profit levelsE. more complex %i!on cci techni'$e for sever l & "e

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www.forextrendy.com Now the well."nown techni'$es re m de in the opposite direction: 1. 6ell 6top order !elow the lower trend line# 2. 6top ,oss !ove the $pper trend line# :. Pro)ected & "e Profit.

&he trend line is !ro"en# the 6ell 6top order is exec$ted nd we m "e money in downtrend $ntil the & "e Profit is hit. As we $se downtrend contin$es witho$t $s... let it o> single & "e Profit level# the

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www.forextrendy.com Eeco niAin chart "atterns Profession l tr ders $sed to n ly?e ch rt fter ch rt to find reli !le p tterns on d ily nd even intr d y time fr mes. &od y# comp$ting power comes into pl y.

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0t h s n intelligent lgorithm to recogni?e strong trend lines nd discover the most reli !le ch rt p tterns t the c$rrent time. @o$ will le rn more techni'$es !o$t ch rt p tterns in the mem!ership s$!scription: +sing %i!on cci techni'$e for m$ltiple & "e Profit levels &r ding =p$ll! c"s> !y $sing ,imit 1rders for !etter entry point

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