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When I started the 10.0 series I wanted to define certain terms used in trading. The main one I tackled was
defining “what is a trend?”. As I updated that definition it took on more and more of a defined definition. It
became more specific. I ended up melding two great concepts into one simple line on the screen. A fundamental
uptrend became the 2MA on the monthly all the way to the 240 MA on the 4H chart. If you have not read my
10.4 manual you need to do that before you read this booklet.

After several months of trading we have seen time and time again trends keep right on going month after month
honoring that line. On the chart below we can clearly see for the last 8 months the usd/jpy has been in a steady
uptrend (UT). We taught in 10.4 only do buys above the 240 line and you will always be a winner. Literally if
you did only buys on the usd/jpy you would never have had a losing trade. The success rate of following such a
simple concept that the 240 line on the 4H chart or 2MA on the monthly represented the fundamental move of a
currency formed the basis for trading the 10.4 system. It was its heart and soul. Simply put, this is your trend;
follow it and you can be a successful trader.

I started 10.4 at the beginning of March in my trading and over the last 3 months of trading the usd/jpy I had 57
winning trades and 11 losing trades for a total of 1814 pips. The amazing part is the usd/jpy has only moved up
1006 pips from the beginning of March to the middle of May. In other words, I have won 1.9 pips for every 1.0
pips price has moved. That is because every time price retraces I enter back into the trend, I bought the dips in
the UT. Well if you don’t know what a fundamental UT is you can’t buy the dip in the UT. Now I can and I do
it regularly every week. That is sound trading. Knowing what the trend is and following it over and over again.

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The second area we looked at in 10.4 was where to take profit. We notice that weekly support (WS1) and
resistance lines (WR1) were the best target areas to take profit. Green line is WR1 and the red line is WS1.
Most weeks, price will not go beyond those lines. So to get back into the trend you would try to buy below the
weekly pivot (WP), the yellow line, and take your profit above the pivot near the WR1, the red line on buy
trades. For sell trades you would sell above the WP and take profit near the WS1, the green line.

To help you in your entrances two indicators were created to help you in when to set pending trades. One is
called the RSI2 which was a simple read. When the yellow line is flat on the bottom look to buy when price is
above the 240 line and when the yellow line is flat on the top look to sell when price is below the 240 line. You
then looked for entrances somewhere, for example:
1. Below the WP line and enter of off the cross back up over the WP line or
2. Below the WP line and enter of off the cross back over a mid-line (dotted black line) or even use the 1H
chart and use daily pivot DP or daily support DS or daily resistance DR lines or
3. A bounce off of the WP line or
4. Bounce off the 240 line back into the trend.
As you can see below you have 2 trades off of the black 240 line and 2 off the yellow WP line.

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This worked well but a second indie was added to help filter some of the RSI 2 trades. This was used to reduce
draw down (DD). Drawdown is when a trade goes negative for a while because of entering too early back into a
trend. You see there is no real predictor to how far a dip in the UT will go, ………… is there??

Well, thanks to Baluda there is one that helps a great deal. It is called a CSS or Currency Slope Strength. I will
be using it in different forms and different ways. Explaining all the details on how it works and how it is put
together would get rather lengthy so I will give a shortened version. This version 1.07D is only used to compare
the difference between the angles of the slope between 2 currencies. When one pair is stronger than the other
pair its line will be above the other line. The weaker pair will be the lower line. Slope is the angle price is
moving up or down from the median of 0 which means there is no slope or direction to price movement. What
makes this different form other indies is the stronger the move the more angle up/down the move will be in
price action. The difference in these slopes is measured by the two lines. So as one gets stronger the other gets
weaker and the two lines will move apart. As the two lines separate the back ground color will change.

The example below is the usd/jpy. If the USD is stronger than the JPY the background color will be green and
the USD line will be higher than the JPY line. If the USD is weaker than the JPY then the back ground color
will be red and the USD line will be lower than the JPY line. When they are close together and neither one is
that much stronger than the other then the background color is gold. The gold color is important because it is
telling you that the difference or strength between these two currencies is near 0 and that a change of direction
is likely to happen or they could range for a while with little change in price action. It also warns you that if you
have a buy on the usd/jpy and the background color is red, you are on the wrong side of the trade. If you have a
sell on the usd/jpy and the back ground color is green, you are on the wrong side of the trade. You should look
to get out of the trade. Some of us, like me, who will do multiple entrances don’t always exit; we just look for a
better entrance. However, if you have a buy trade don’t violate the 240 MA line, if the color is red and price is
below the 240 line you are fighting the trend. Just close the trade for a loss and move on. The same with a sell
trade; if you are above the 240 line and the background color is green just close your sell out you are fighting
the trend and could be looking at a big loser.

Some brokers’ feeds are different from others so some traders have changed the threshold to 3.0 from 2.5 for
better reads on when price is changing directions.

Now to put this all together, as to when to set your pending trades you want to see the following from the two
indies on most occasions. (I do make exceptions for crossing back over a pivot line WP or DP or a known news

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story90 but here are the basics of using these indies on a trade. Here is an example of 6 potential trades on the
usd/jpy over the last 3 weeks. I numbered them from 1-6 on the chart and drew a black line.

1. RSI 2 is on the bottom, the bar has turned gold price seems to be bouncing off of the 240 line. Set buy trade
at the pivot line and just above the mid-pivot line. For the more aggressive trader you can use the lines on the
daily pivot/support/resistance lines which are found on the 1 hour chart. Take your profit at the mid line and see
if it enters again at the mid line.
2. RSI 2 is on the bottom price is above the WP and you place a pending buy above the midpivot line. Bar color
turns red meaning no trade, close out the pending trade or close any open trades.
3. No RSI 2 signal but you have a bounce off of the WS1 and black 240 line. The background color is green and
the two lines are moving apart showing the move has strength. Set buy pending trades at Mid-Pivot (MP dotted
black lines) WP and if you are aggressive trader the 1H chart will give you some more lines to set buy pending
trades.
4. Take the trade as it crosses the WP. The lines are widening showing the move is accelerating. It is Friday so
close out around the Euro session close for your profit. Very little price action happens once the Euro session
closes.
5. RSI 2 is flat on the bottom, so price could bounce off of WP. You can set a buy pending trade at the MP.
Color turns red so I remove the WP buy pending trade but I might keep the MP trade.
6. Bar turns yellow again so I set buy pending trades using the mid and maybe some on the 1 hour chart. This
time price explodes and you stay in when you see those two line just widen very far apart. This indicates a big
move so keep some of your trade to go past the WS1 line. Close some of your profit at WS1 but keep riding the
trade with those wide separations between the two lines. Close out at the euro close on Friday, you had another
good week trading.

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1. Buy above the 240 line; sell below the 240 line.
2. Buy the dips in the UT; sell the rallies in a DT
3. Use RSI 2 and CSS ver. 1.07D to enter rallies and dips.
4. Use WP and DP crosses to enter trades along with DS, DP, and weekly MP lines
5. Use R1 and S1 for take profits but if unsure always move your SL up and protect profits.
6. Use the 240 line as your initial SL line but move it up when you are sitting on profit.

I recognize myself as a singles hitter when it comes to taking profit. Some people will sit on a trade for days,
weeks and even months. I am not like that and can’t seem to do it or don’t want to do it is better. These are my
rules.

There are 3 major Forex sessions for trading and one minor session.
1. Japan session open or start of the trading day or daily candle open.
2. Euro session
3. USA session
4. Australian/New Zealand session or end of the trading day or daily candle close.

These sessions will have an open, a market move, and then a drifting up or down after the move. The USA
session can still have some nice afternoon moves but they usually follow the direction of the morning session
and are not so dramatic. The one exception is the USA will often do their interest rate change in the afternoon.
This can make the markets go absolutely nuts, we haven’t seen this in years because the USA dropped its rates
to the lowest percentage, but if they ever change, watch out because these cause the markets to adjust all over
the world. That is because many nations use the USD as their base currency and they will all buy or sell at the
same time depending on the rate change and what they expected.

So I will often take my profits, no matter what they are, 3-4 hours into the session. What happens is a market
opens, banks begin processing their orders, news stories will break, and the market reacts to these actions. After
two to three hours most of the market move for these sessions has happened and I will just take my profits for
the session and move on. Sometimes their big, sometimes they are meager. I take what the market has given me
and I move on. My daily/work schedule also fits these market times and so I plan my trading around my
schedule. It is why I am a 4H candle trader, why 1H or lower or daily and higher trading do not interest me. It is
also why my trading system takes the information from other time frames and reduces them to the 4H chart. My
trading day goes like this (all times are China times and are 12 hours different from EST in the USA, so if I say
6 am China time it is the same as 6 pm in New York) :
6 am I get up, I close my profitable trades from the USA and AUD/NZD sessions make some comments on my
thread. I read my 4H CSS info page and look for my best trades of the day. I will talk about the CSS info page
later.
10 am my students go to recess and I get to check my JPY session trades. Close my winners and may make
some comments on my trades.
12 noon, I go to lunch and relax. I may read some Forex articles but mostly relax and eat lunch. My wife and I
may discuss some school matters.
2 PM I have my last teaching break of 15 minutes and I set my Euro trades.
5-6 PM I am home from school and I look at my Euro trades. I close my winners and set my USA trades.
8PM I check my charts for the USA session and make any changes. Sometimes there are some surprise winners.
10-11 PM I close my winners and set my overnight trades. Go to bed, Wake up and do it all over again.
Each time I check my trades is usually max 10 minutes but most of the time I am done in 5 minutes. The key is
knowing where to look for good trades every day. That is done on my 4H info trade page and my CSS reads
there.

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One of the problems traders have is knowing where and how to start your trading day, week, or session. Making
this decision is the key to your trading success. Most of us when we started in this business would go to a chart,
read the news, indicators, or chart patterns and trade. If you were anything like me you had a hard time
consistently making a profit or if you were profitable it became a daily grind or battle. You always had to be on
your toes grinding pips out day after day. The term whiplash probably has a lot of meaning for you.

We also know that there is a big debate over Fundamental versus Indicator trading and now naked chart trading;
of course we have tried to wrestle with these comments. Then there are those that try to blend fundamental
knowledge with an indicator or two and trade the markets. I have always had an admiration of fundamental
traders; the problem is fundamentals may take years to learn. For example if there is bad news a currency goes
down, good news a currency goes up, except if it is really bad news then USD goes up and if it is good news
USD goes down unless …………….. and on and on it goes. Then there are big banks or businesses that just
can’t afford for a currency to go a certain direction right now so bad news means enter down the road and kill
the bull (I am talking about you SNB).

I propose to change the way we have normally traded and go to a currency pair knowing ahead of time we are
going to buy or sell before we even look at a chart. The CSS does a beautiful job at doing that. Before I start I
would like to kill two hobby horses that traders like to use. There are two phrases that need to be tossed out of
Forex 1. It repaints 2. It is a lagging indicator. I have gotten into great debates over these two issues but I am
just going to mention them here before I move on. The reason I mention them is there are going to be posters
who pop up on the thread and will mention one of these two phrases thinking you should throw out the indie
because of the use of these two phrases. It is like all blacks, Jews, Moslems, Fundamentalists, Arabs, Brits,
French, Americans, Liberals, Conservatives, etc. etc. are bad therefore you don’t need to listen to them or learn
anything from what they write or say. Of course anyone with a brain understands how stupid that is. The same
thing with those that run their mouths and cry out, IT REPAINTS, IT LAGS. What it really means is you just
don’t know how to use it. That is all it means. Anyway you will see them say it over and over again like it has
some kind of meaning or truth.

However CSS is based on two principles that are stated in Newton’s laws of motion:

Newton's First Law of Motion states that a body at rest will remain at rest unless an
outside force acts on it, and a body in motion at a constant velocity will remain in
motion in a straight line unless acted upon by an outside force.

The Second Law of Motion states that if an unbalanced force acts on a body, that body
will experience acceleration (or deceleration), that is, a change of speed.
These two laws are what drive the markets. Day by day transactions of money drive the market and these
actions result in market motion. These market motions are generally missed by the use of candles but are easier
to see with a moving average. However, even a moving average has its strengths and weaknesses. A coder then
tried to overcome these weaknesses by creating a TMA indicator, basically super smoothing a line by
triangulating its movement into one line. The original writer of this indie now disavows it as a practical use of a
trading tool; even though this has been disproved by traders who have used it successfully (see Al’s thread at FF
for one). I became interested in it because it showed the strength of a move better than any other indie I had
seen. After several variations from an on chart indie to a histogram to two lines on a screen to a comparison of
all currency pairs; it has evolved into an effective trading tool unlike any other tool used by traders today. Better
than any other tool it shows the two laws of motion by Newton in a very clear and precise way. I have already
shown how to use it to predict change of direction of two currency pairs but I am now going to explain why it
works so well. The two accusations used against using it are actually its greatest strengths once you understand
its value.
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How can I best illustrate this? Imagine you are in a car and it is not moving. You are at 0 KPH/MPH. You start
the car and it moves forward, 10, 20, 30, 40, onto 50 KPH/MPH. It then holds at 50 for a while and you see a
stop sign ahead. You begin to decelerate 50, 40, 30, 20, 10, and finally 0. We all understand this concept that an
object just doesn’t go from 0-50 or 50-0 instantly. It has to accelerate and then decelerate. The market is exactly
like that. You can scream and yell that the speedometer is repainting all you want but that does not change the
fact that is what the car is doing. It is speeding up or accelerating as it goes forward. If you want to add hills and
curves of varying degrees you can imagine the highs and lows of candles to complete the picture. The car
maybe going up a steep hill and slow down or go around a curve and slow down but it is still going forward
only to speed up again when it goes down the hill or moves to a straight part of the road. This motion of
accelerating and decelerating (dips and rallies) is not repainting it is what the car has to do to move forward.
The TMA now CSS as an indie is perfect for showing that the motion of the market is accelerating or
decelerating. So in the future; those who don’t understand or comprehend this concept of
acceleration/deceleration and scream YOU BIG DUMMIES DON’T YOU KNOW IT REPAINTS; just
ignore them. I have found people either understand or comprehend the idea or they don’t.

The second issue is it is a lagging indicator. Someone has posted a similar indie elsewhere in the forum and he
was asked, “How does this differ from the CSS”. His first words were, “It is a lagging indicator.” It is like if
you say these magic words you don’t have to explain the difference or better yet, I have invented the future
predicting indie. We all know that is not true. The thing is, if you understand Newton’s laws of Motion and
apply them to any market you can grasp the future because that is what all things in motion do. They are at rest,
they go into motion, as they go into motion they are doing one of three things:

 They are accelerating

 They are decelerating.
 They are remaining at a constant speed.

Forex, stocks, bonds, any market or object will follow these laws. We then can conclude the following ideas.

 If the market is accelerating it will continue to do so until something acts on it to slow it down.
 The market must stop accelerating before it decelerates.
 If it is decelerating it is still moving forward before it can stop and change direction.
 The car (market) must stop before it goes into reverse, until it makes a complete stop (0 line) it is still
going forward.
 If the market stops, it could go into reverse. If it goes into reverse it has to go 10, 20, 30 before it can go
50.

Conclusion: it takes time for markets to change direction, it takes time for markets to get to 0, and it takes time
for markets to accelerate into a new direction again.

The CSS does this very thing. It is telling you the movement of a currency if it is accelerating, decelerating,
staying the same speed, or not moving. If you are still stuck on the terms of “repaint” or “lagging” just close this
booklet and go on to another thread. I am done debating this issue and I don’t care if the original creator
disavows his creation, he just doesn’t understand or comprehend how to use it, that is all. If that upsets you it
happens all the time in the field of business. There are plenty of inventions out there where the marketer of the
invention made most of the money not the inventor. It is rare that the inventor makes more than the marketer or
the person who understands its full potential.

Coca-Cola was intended as a patent medicine when it was invented in the late 19th century
by John Pemberton, Coca-Cola was bought out by businessman Asa Griggs Candler, whose
marketing tactics led Coke to its dominance of the world soft-drink market throughout the
20th century.

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Ok for the rest of you, this is how to use this indicator to its fullest potential. If you want to know how I got at
the numbers read my booklet at 10.2. (I may tack on the end here but not yet). The first things you will look at
before you trade a chart will be the CSS. It will set up your trading day. In other words before you go to a chart
you will know in advance, are these two currencies accelerating/decelerating, not moving, or going in opposite
directions with each other. You will be going to the pair to buy or sell, trend or range trade, profit quickly or
hold. Once you have this information you then can go to those pairs and trade. It would be like this.

I know the gbp is accelerating at 50 KPH/MPH and the USD is accelerating at 30 KPH/MPH. With this info I
look for gbp buy but price movement and profits probably won’t be big so look for short profit trades. In and
out.

I know the gbp is accelerating at 50 KPH/MPH and usd is accelerating 10. I look for bigger profits but still
more of an in or out trade.

I know the gbp is accelerating at 50 KPH/MPH and usd is decelerating from 30 to 10. This has a future
possibility of running, will trade gbp strength and stay in if usd keeps decelerating.

I know the gbp is accelerating at 50 KPH/MPH above the 0 line and usd is accelerating below the 0 line. They
are going in opposite directions. Great trend trade, look for big profits, multiple entrances, or buy/sell hold
trades.

I know the gbp is accelerating and usd is accelerating at approximately the same angle. Not much price
movement, at best they will range. This holds true if the angle is the same for decelerating or both are level.
Price will be ranging. Bollinger bands and stochastic indicators will help you with these trades. Captain Jack’s
naked trading will work great here also.

Accelerating/acceleration--whether above or below the 0 line it means the angle of price movement is
increasing and moving away from the 0 line of the CSS indicator. It is showing the currency mentioned is
gaining momentum and is on the move.

Decelerating/deceleration—whether above or below 0 line means the angle of price movement is decreasing
but price action is still going forward. It is just going forward at a slower rate by returning to the 0 line. This can
indicate a place to look for a dip/rally in an UT/DT or even price reversal if it keeps going.

Reversal CSS—shows that the angle of price movement has changed direction. It has crossed the 0 line. This
may correspond with crossing the 240 line or maybe a huge correction in the prevailing trend. This becomes
important when comparing the 4H with the Daily. This could show a good look for a strong move back into the
prevailing trend. The Daily continues to show strong trend but the 4H shows a cross with the 0 line. It may be
the beginning of a true reversal or a set up for a big move back into the trend.

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In 10.4/10.5 we will be using 3 uses of the CSS. The 10.4 Info page will have the 4H CSS and Daily CSS which
uses the same formula we used in the 10.2 series. You will compare the lines on this single page or chart and
decide if a currency pair is trending, ranging, flat or dynamically moving. These will be designated as ver. 8 in
any updates.

The third use is comparing 2 pairs on each chart but uses a different CSS or TMA formula. This is to show that
these two pairs are about ready to cross the 0 mark and change direction. You will use this one on the 4H and
1H charts. I have already showed how to use them in the introduction of this booklet.

The indicators are not to scale. If you put it on the 4H chart then the 4H CSS is to scale. If you put it on a daily
chart then the daily CSS is to scale. In other words the indie keeps its own scale inside the indie no matter what
TF you have it on. The 4H is always 4H scale inside the indie and the Daily is always daily scale inside the
indie. So the lines never match up with each other from one indie to the other as far as scale goes. Some of you
will be as confused as a termite in a yo-yo with that one.

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In the picture above I enlarged the 10.4 daily. I tried to decide between having them on both pages or separate
pages but I opted to have the 4H and Daily CSS on one page. You may find having them on separate pages
easier to read. The bigger the chart the easier it is to read the page. Anyway you have the 8 major currency pairs
of the world. Someday you will probably see China, Russia, Brazil, and India up there too. I think it is just a
matter of time. The only reason you don’t see China now is they don’t free float their currency on the open
market. People talk about the RMB being a world currency and it isn’t even openly traded on the market yet.
When they do and allow open trading on the market we will have nine major pairs.

Also these lines represent the composite strength of each currency paired with the other seven major currencies.
So the red usd line represents the total strength/weakness as compared to all the others. It is the information
gathered from usd/cad, usd/jpy, usd/chf, eur/usd, nzd/usd, aud/usd, gbp/usd and compiled in one line. The same
with all the rest of the currencies, they are compilations of their strength/weakness to all the others. It is the
compiled overall strength of the currency versus all the others. With IBFX USA I don’t have nzd/cad or cad/chf.
So the cad line is based on 5 pairs and chf and nzd on 6 pairs. The rest are based on 7 pairs. This will mean
there will be some differences from broker to broker.

So if a line is at the top, that currency is running the strongest versus the other currencies. What that means is it
is the strongest running currency on the market at this time and you would look to buy it over all the other
currencies. If the line is at the bottom it is the weakest currency compared to all the rest of the currencies. In the
pic above the usd and cad have the strongest acceleration up and the gbp held steady keeping a steady speed.
This past month the aud, nzd, and chf were the weakest with the jpy moving down. So according to CSS theory
the best trend trades would have been the usd/chf, nzd/usd, aud/usd, aud/cad, nzd/cad, (I don’t have nzd/cad)
gbp/usd, gbp/nzd, gbp/chf. First let’s compare the ones that are angling the strongest against each other aud, nzd
going down, usd, cad going up.

12
AUD/USD
Shows price bouncing off of 240 line two weeks ago. As price accelerates down the angle of the aud CSS lines
goes down. As usd CSS line goes up these two movements cause a huge DT of 600 pips the last two weeks.
One look at the above CSS told you the story USD going up and AUD going down resulted in a very strong
trend down.

NZD/USD
Last week nzd/usd crossed the 240 bounced back off of it and then as usd went up and nzd went down we have
a very strong trend to sell nzd/usd. This move so far is 400+ pips.

13
AUD/CAD
The aud/cad separation began in mid-April on the CSS chart and continues for the whole month of May.
Watching each pair accelerating in opposite directions on the Daily CSS would have kept you in the trade for a
long time. 650+ pips over 6 weeks.

AUD/CAD CSS on daily

Looking below you can see where the Cad and Aud crossed and headed in opposite directions both accelerating
in opposite directions. This leads to a very good trend to follow with your trades.

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Next type of trade shows usd going up but chf holding a steady speed below the 0 line. However usd is above 0
and accelerating from 0 to 50 and chf is below 0 but holding a steady speed. In other words the chf line is flat or
staying at 30 mph/kph. After bouncing off of the 240 line usd/chf travels in spurts and a move around 380+ pips
still a good UT trade.

GBP/AUD
The opposite of this is the gbp holding steady above the 0 line but the aud accelerating below the 0 line. They
crossed back in the first week of April so you have a long UT that has lasted over 6 weeks.

15
GBP/USD
The gbp line holds steady but the usd decelerates back to 0 and then crosses 0 and accelerates upward past the
gbp getting stronger and stronger while the gbp holds steady. We see a strong DT for the gbp/usd as the usd
strengthens for 1 1/2 week period while the gbp holds a steady speed. This DT will continue if gbp weakens.

EUR/CHF APRIL 2013 BOTH PARALLEL UP AND THEN PARALLEL DOWN ABOVE 0 LINE.
IN MAY CHF GOES BELOW 0 AND EURO STAYS ABOVE 0
During the month of April the eur/chf stayed parallel going up and back down there was on strong move during
the third week of April as the chf accelerated going down faster compared to the eur for a short period of time.
Both stayed within a 200 pip range during April nothing exciting happening here. In May the euro accelerated
while the chf held steady.

16
AUD/JPY
Both accelerate and parallel down below 0 line in May. 240 line goes flat and the two range between 300 pip
range. They are like two race cars trying to pass each other up. Since both are doing a strong move in a strong
trend they also make strong moves inside a range. If you know this is happening you can trade it successfully.

AUD/NZD
Both parallel down in very strong moves. Price action stays within a 160 pip range. As a range trader you may
find this profitable.

17
GBP/CAD
Both are #1 & #2 as strong pair for first 2 weeks of May. Range trading reigns within a 200+ pips range.

CHF/JPY
Two lines hanging around the 0 line for the last two weeks; stayed in a 160+ pip range the last two weeks. Not
much here either except to range trade.

18
EUR/JPY
Both lines decelerating heading toward 0 line. The eur/jpy from the middle of April until the end of May both
decelerated back towards the 0 line about the same time and strength. Another range opportunity.

The basic interpretation of Daily CSS comes down to simple read of the lines and interpreting them.
 Strongest trend—the two lines are moving away from each other and accelerating
 Strong trend—one line is flat and holding steady speed the other is accelerating away.
 Strong trend—one line is flat and holding steady speed and the other line is decelerating towards the flat
line. This is a classic counter trend trade.
 Parallel lines—trending markets whether they are accelerating, decelerating, or flat as long as the lines
are parallel you will find a ranging market. Doesn’t mean they are not trade-able just means you aren’t
getting a long trend move.
 Opposite trend—lines are both decelerating back to 0, another range trading scenario.

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I have been using the Daily CSS for a couple of months and I am getting used to its nuances. Now I am adding
the 4H because it helps in finding what day by day strong or weak. It just doesn’t happen out of nowhere. You
can see the lines moving up and down showing the particular currency is going to be strong or weak. In other
words you start the car and it accelerates and then decelerates. Price movement is not static. The same thing
with price action; a currency accelerates and then decelerates. Knowing this can help predict what pairs may run
that day or the next. You may not know how strong but you can know it is coming. I laugh at those that say this
is a lagging indicator. Just follow a currency as it speeds up and then slows down. You have hours to make your
choices and make your selection. White line to white line is a month; pink line to pink is a week. Notice when
two lines cross a bar shows up by the two that changed places.

strongest currency in order weakest currency in order

Week 1 jpy nzd gbp aud gbp nzd

Week 2 chf nzd jpy usd
Week 3 jpy usd nzd aud jpy
Week 4 usd nzd gbp jpy chf
Week 5 gbp chf gbp usd aud
Week 6 nzd cad usd jpy nzd jpy
Week 7 usd jpy aud

Notice week 1 JPY is on top slides down and middle week 1 slides to the bottom. Week 2 it is on the bottom
and by week 3 it has slid to the top again. End of week 3 back to the bottom and then slides back into the middle
of the pack until week 6 and 7 where it makes two visits to the bottom.
CHF is on top by end of week 1 and beginning week 2. It hits bottom in week 4 and back to the top of week 5.
In week 6 & 7 it visits the bottom again as the 2nd weakest pair.
NZD is on top in week 1, 2, 4, 6 and on the bottom in week 3 and 6.

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I could go on but I think at this point you get the picture. Daily gives long term trend and 4H gives day by day
trend. You now know things less than 1% of all the traders in the world would ever know. Starting Monday you
now know that the Eur and CHF have broken up from the 0 line and could accelerate up and the JPY has
crossed down and could decelerate down. The bar on the far right has warned you of the potential moves
coming Monday and Tuesday. I will go looking for some good strong trend trades at eur/jpy and chf/jpy. Since
this was written before they happened you can find out how accurate this prediction could be. The one thing I
do not see is flat movement like you see on the daily CSS. If I find CSS daily and CSS 4H agree. Watch out
because the pips are a coming. If I see parallels on the 4H probably not much going to happen. Enjoy.

Put the template on a pair you are trading like the eur/chf which I don’t trade very much. You can have 2
eur/chf charts one for trading and one for the info screen. I used to put it on a non-trading pair but then the indie
will include the pair in its calculations. It is important you go to your window called market watch and delete
any exotic pairs you are not trading or don’t want the indie to use in its calculations. Even if you only trade 5
pairs you still want the indie to view all the pairs of the 8 major currencies so you get the general market feel
and see how the market is affecting the pairs you trade. OR you can adjust it to just calculate just the pairs you
are trading so it is comparing only pairs you are trading. I have no idea if that would work but you could try. I
used to use eur/dkk on my chart for my 10.4 but now I delete it so it doesn’t affect the calculations. I don’t have
cad/chf or nzd/cad to trade so they are not included in my calculations but they maybe on your broker so there
will be some slight differences form broker to broker.

When you get ready to trade you should first go to your 10.4 info page. From the information given there you
should know in advance whether you are looking for trending, range, counter trend, or weak moves. For
example I already told you on Monday I will be looking for the eur/jpy and chf/jpy to maybe start a strong
move. You should also know which pairs are on top and are strongest and which pairs are on the bottom and are
the weakest. Then you can go to the currency pairs you wish to trade and look for your best entrances. You
should also have an idea that you’re looking for a trade that may trend and last several days or weeks or it is
ranging and you want to be in and out in one day or less. Using trend-lines, Bollinger bands, or Captain Jack’s
naked reads would be helpful. In other words before you even look at a chart you are prepared with information
that will give you an idea of what each currency pair will do over the next couple of days. You then can plan
your trade and then trade your plan.

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EA’s folder--are for automatic trading and go into the expert folder. I usually don’t use them anymore because
I use pending trades but I have some that maybe helpful at certain times.

2 buy EAs and 2 sell EAs. They only enter when they cross the 5MA open shifted 1 LWMA or 5MA OPEN
shifted 2 LWMA

They only enter 1 time and will not enter a 2nd time unless they are reset. They will work on any time frame and
you must reset them and change the magic number if you use the EA on the same pair a 2nd time while the first
trade is still open. If you have closed the first trade then you can use the same magic number.

There is also a jump EA that works like a trailing stop but only moves every 10 pips or whatever you set it at. It
can have two kinds of jumps; one number for before the SL is moved into profit and a different number after the
SL is in profit.

The MultiPurposeTradeManager or MPTM is Steve’s great contribution and can do dozens of things after a
trade is entered. It has its own thread and rules.

Indicator folder—these go into your indicator folder and are used by the different templates. They are
automatically loaded correctly when you turn on the template. Most of these are explained in the booklet.

Profiles folder—this will automatically set everything up for you. Open MT4 and select 104 profiles and if you
have everything in the correct folder it will load up all 27 currency pairs for you. If you have nzd/cad or chf/cad
you will have to add these because I don’t have them.

Scripts folder—these are some of my most important tools. I use them to set trades; buy/sell; limit/stop orders.
I can move the SL and TP to wherever I want with one click and drag from the navigator panel to the chart
screen and release on the screen where I want the trade. I have these set at .10 lot and SL and TP of 200. Once
set I then move the SL and TP where I want them with the move Stop Loss or Take Profit scripts.

Some of the more interesting ones are the delete pending which will close all your pending orders but not your
open orders. There are times I have too many trades going on or I am done for the week and just want to close
them out. This one will do it.

IBFX trade analyzer will give you a summary of whatever you have on your account history page. This lets you
know how you been doing for any day, week, month, year, and put them into a simple format for analyzing.

IBFX Trades History will download your account history page to and excel worksheet for you study.

Templates folder—put both of these in your templates folder. It contains the two templates of the 10.4/10.5
trading system. Use it on any pairs you wish to trade. Also is the new 10.4 Info page.

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