Forex Freedom | David Aw

Hi there,

As you know my test live account is at the bottom of this page. Sadly I have been losing trades since Monday. Funny this is I have been winning for the 1st week of August after that I lost everything.

But today I shall be more hardworking and understand how price really works. You see price is actually made up of you and me so traders alike will have fear, greed and regret and this is discounted into price. Question how do you define and uptrend.



They always says an uptrend is whereby price of lower high is followed by another higher low. However if the downtrend is strong it will push price back down. So as a conservative trade how are you sure price has reverse?
For a downtrend to reverse, price must do 4 things. A lower high followed by higher low however the resistance of the lower high has to be broken by the next higher low it will then be considered as trend reversal. If not you are looking at a squeeze and heaven forbid you be lucky.

Also if you want the shortcut, best use the 1 side of the sequence, i.e uptrend spotted by a lower lower and a higher low on 15min onwards TF. The same goes to downtrend.

Good luck.
David

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This is good as it tells you the best time to trade the Forex.
Kathy Lien Best Time to Trade the Forex
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This is extracted from Black Swan Currency.

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As funny as this both function they are inter correlated whereby one price increase affects the others. This is another histogram divergence in action combined with Fib ratio if you are late on the first rise take the opportunity on the Fib pull back which in this case is 61.8% to be on the safe side.

As I was typing this price has rise to 130 for EURJPY and 93.15, both have gone way beyond Fib extension.
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Ok the secret to leverage on MACD divergence is that price will resume back after it retraces back to how far? Anyway today it is about the secret signal on MACD divergence. If you notice price will resume every time after price retraces/divergence. The following shows you how to sit on both side of the trade.

The first chart is USDJPY. Divergence is found off 15min TF with price going higher but MACD going lower. After price hits it bottom. You don't have to catch a falling knife just wait for price to resume back up with a small pull back either at 38.2% or in this case 61.8% Fib. Sit on and wait for $$ to roll in.

The 2nd chart shows EURUSD. This is where you hope on to divergence signal and stack your profits to maximise your gains. Price will pull back as some amatuers traders like me like to stand in front of a bull let train. This is where price pull back and this is where you can add to your winning position. Hang on and let your profits run.

So there you have it. Leveraging on both side of divergence signal.
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Price makes a higher high but MACD says no.
Went down to 5min chart price shout sell me sell me shout sell me
Sold at 1.31.

Feedback
Could have better manage my profits through trailing my stoploss or increase my profits through stacking at each retracement.

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I believe the move in price resulting over 30pips in action could be due to traders like me who have been bitten by the constant stop out due to the persistent of price that never seems to turn back. So when price does turn everyone just gets on the bandwagon.

This is the 2nd strategy of my high leverage system.
Divergence to price from Histogram.
It is actually just divergence where price shows one direction but indicator shows another direction. This meant that traders are taking a breather from profit taking while the contrarians took their chances and go against the trend. This could change where price is going or just a retracement.
How I know if it is a retracement. Fib ratio off the weekly pivots which is about 50% should support price to shoot up again, 1.3959.

Feedback
I took my profits too early, I should have stack my profits at retracement of 38.2% or take some profits off the table.

Where to enter and exit.
Self Explanatory
Where to exit, the safe bet should be the 1.3959 off 50% Fib retracement and the weekly pivots.
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