The forex set forget profit system mark boardman

The reason that the banks pay human Forex traders $millions in bonuses is that they know that there is not a magic bullet, and the REASON that there is not a magic bullet is that the For

Mark Boardman’s

Forex “Set & Forget” Profit System

© 2013 by Mark Boardman All Rights Reserved The word phrases “Forex Set &Forget” TM and “Forex Break & Bounce” TM and “Forex Rebound” and “Forex Snapback” TM are trademarks of Mark Boardman and may not be used in any way, shape, or

form, without the express written permission of Mark Boardman

All intellectual property rights, including the Forex strategies and their mechanics ofoperation remain the property of Mark Boardman and may not be copied or emulated

2nd Edition, May 2013

To get access to a TOTALLY FREE Live Forex Trading Room visit his website:

www.forextradermark.comEnter your name and e mail address in the form on the top right of the Home page and

then click on the link

Hi

I hate “guarantees”, they sound so fake….however I am going to be a hypocrite and useone now:

I guarantee that what you are about to learn will change the way you trade

Forex….forever…… and for the better!

So, why I am being a hypocrite in the first few sentences of my book?

Well, the answer is that what I am about to share with you is two radical concepts Ilearned them about three years ago, and they completely changed my attitude to ForexTrading Most importantly, they allowed me to transition from a consistently losing

trader into a consistently winning trader… WITHOUT spending any money! Until

recently I ran a consultancy business Now I pay all my bills by trading Forex part time

I only trade for 5 or 6 hours a week, and it is in large part because of what I describe inthis book

Consequently I can say with complete confidence that I guarantee that this book will

change the way you trade Forex…forever

So please read on, and whilst the book is relatively compact, I do hope you will agreethat the information it contains is extremely valuable and will help you take a step in theright direction towards a consistently profitable Forex trading journey If you do feelthat way having read it, and you purchased the book from Amazon, I would be extremelygrateful if you would write a short, two line review on Amazon It takes two minutes Igive instructions of how to write a review at the end of the book

You can e mail me at mark@forextradermark.com if you have any questions about this

book or my trading strategies and you can join a FREE Live Forex Trading Room

where I demonstrate what you will learn in the book, here:

www.forextradermark.com

Thanks

Mark

Risk Disclosure

What you are about to read in this book has changed my life I am now financially

independent because of the system I employ when I trade Forex

However, please note, and I repeat this many times in the book, that the system I userequires a ‘’skill’’ that can only be learned through practice The system is not robotic It

is not a ‘’get rich quick’’ system On the contrary, it is a Forex trading system that hasrequired a lot of discipline and hard work, and in return it delivers a good income forme

I feel very strongly that the Forex Industry is flooded with individuals and companiesthat market products and services on the basis that you could make money easily andquickly, which in my opinion is wrong, and I explain exactly why in the book

Trading Foreign Exchange on margin carries a high level of risk, and may not be

suitable for all investors The high degree of leverage can work against you as well asfor you Before deciding to invest in Foreign Exchange you should carefully consideryour investment objectives, level of experience, and risk appetite The possibility existsthat you could sustain a loss of some or all of your initial investment and therefore youshould not invest money that you cannot afford to lose You should be aware of all therisks associated with Foreign Exchange trading and seek advice from an independentfinancial adviser if you have any doubts

Table of ContentsChapter One

Radical Concept No.1 : Indicators ALONE will NEVER make you profitable longterm

About Mark Boardman

Chapter One

Radical Concept No.1

Indicators ALONE will NEVER make you profitable long term

I trade Forex from home for about 5 or 6 hours per week So I am a successful and sustained part time trader However, here is what I am not:

self-I am NOT a professional trader

I am NOT a trading guru

I am NOT a millionaire who has gone from rags to riches trading Forex

I am NOT prophetic…I have no idea which way the market is going to go today Ican take an educated guess, but I don’t have a Forex crystal ball

One of the reasons for writing this short, but important book is that I am very frustrated,and a little angry

I feel this way because for just over 5 years I traded without making ANY

money….NONE!

During that 5 year period I spent a small fortune on trading platforms, data feeds, tradingsoftware, trading signal services, trading books (including many of those you can find

on Amazon) and hundreds of hours on forums and working with so called Forex trading

‘’gurus’’ Yet I didn’t have a single year of profit… and I am frustrated and angry

because in hindsight I now know that I was NEVER going to make any money taking the

route that I did

I am a reasonably intelligent guy, yet I look back now in embarrassment at how easily Iwas seduced by the many sales techniques used by companies and individuals trying tomake profit out of would be Forex traders

Suffice to say for now that I was gullible, and I was so desperate to crack Forex tradingthat I was easy prey for the marketers who sell software and ‘’buy and sell’’ signal

services

What I now know is this one FACT:

There is NO magic bullet in the Forex Industry

Please take it from me, having traded for eight years There is no software program that

will make you money There are no indicators that alone will make you money There

are no ‘’buy and sell’’ arrows that will make you money

To underline what I am trying to say here, let me make an observation:

The big banks pay human Forex traders $millions in bonus payments every year forhitting their Forex trading targets If there was ANY software program, indicator, orsignal service that made profits consistently, wouldn’t the banks use that and save

hundreds of $millions in bonus payments?

Of course they would The reason that the banks pay human Forex traders $millions in

bonuses is that they know that there is not a magic bullet, and the REASON that there is

not a magic bullet is that the Forex market is traded by humans, not machines or

programs So humans, with human emotions are all staring at charts and making

emotional decisions, which is why no program will ever be able to replace a goodForex trader

Repeating Price Patterns

The good news is that human Forex traders tend to react to certain situations and thenmake decisions in similar ways So there is a kind of “herd mentality” if you like, that is

visible EVERY day in the Forex market.

This manifests itself in the form of what I call “repeating price patterns” that occur at particular price levels, and it happens in all timeframes, from 1 minute charts to

monthly charts

Now, whilst these “repeating price patterns” occur all the time, they cannot be

“forecasted” This is why banks still pay human Forex traders to trade charts The

patterns happen in real time and a trader needs to be at the charts to see them and takeadvantage of them A computer program cannot “see” the patterns Only the human eyecan

So, it is absolutely possible to be a consistently profitable Forex trader, and you canmake it by trading part time, a few hours a week However it takes some effort and inparticular, learning of the repeating price patterns

So my first radical concept is this:

Indicators alone will NEVER make you profitable long term Only the human eye can detect and take advantage of the “repeating price patterns” that occur in the Forex market.

Hence, it is a complete waste of money buying ANY software or indicators in the hope

that trading the “signals” alone will make money in the long term, because they will not

be able to show you where and when these repeating price patterns occur

Let me also say this:

Almost ALL indicators lag the market I have only come across five indicators, out ofhundreds, that have given me a “reliable” idea of where the market is “likely” to gonext

In addition repeating price patterns can give you an educated guess as to where themarket is “likely” to go next So I use a combination of the five lagging but very usefulindicators, the repeating price patterns at particular price points, plus the ‘’Set &

Forget’’ profit system to make my living in the Forex market

In my 5 years of unprofitable trading, apart from the expensive software I purchased, Ialso tried the following popular FREE indicators….all without success:

Forex Profit Mountain

The 10 minute Forex wealth builder

Forex Detector

Pip scooper

….and many more

Though I use five indicators when I trade I do not use them as signals to enter or exit themarket I use them for one simple reason…they give me an “idea” of where the market

“might” go next So they help my “eye” to spot the price patterns

However, they are still lagging indicators and I would NEVER use them in isolation to

place a trade I use my “chart reading” skills to place my trades, and my five laggingindicators are just there to help

There is no quick way to make money in Forex There are no automated tools that will

do it for you In my opinion, as you will hear me say many times in this book, the ONLYway to make profit consistently from Forex is by being able to “read the charts’’,

because indicators ALONE will never, in my opinion, make you profitable in the longterm

Learn for FREE

If you would like a completely FREE lesson in ‘’chart reading’’ then join my FREE LiveForex Trading Rooms To join go to my website:

www.forextradermark.com

Enter your name and e mail in the form at the top right of the page and I will send you an

e mail with e registration link for the next FREE Forex Trading Room

Chapter Two

The greatest feeling in the world is TIME FREEDOM

I often use the analogy of learning to play a musical instrument to describe what I think

is required to make money in this industry I have played guitar for over thirty years.Learning to play the guitar to a reasonable standard is not complex, but it takes time, andpatience If you have enough time and enough patience, you can become a very

competent guitarist Thirty years later I still cannot read music, but I didn’t need to beable to read music to be a good guitarist I just needed to learn all the chords and then

One of the reasons I took up Forex trading was so that I could have more free time to dothe things I REALLY want to as well as not having the responsibility of employees andthe stresses of running a company One of the things I REALLY like to do is sit downevery day and write a quick song Trading Forex part time makes me enough money topay all my bills, so I now have lots of spare time to write songs I still can’t read music,but I can put a tune together, so I have reached a level of competence with my guitar that

I am happy with

I have done the same thing with my Forex trading

I could study fundamental analysis and relational analysis I could analyse the

relationship between the economies of the world I could look at the correlation

between oil, gold, the dollar index, and so on, but I choose not to I have reached a level

of competence in Forex trading that I am happy with I don’t want to be a millionaire Ijust want to make enough money from my trading to give me the most precious

commodity of all which is

TIME FREEDOM.

Apart from the 5 or 6 hours per week when I am at my computer trading, and the other 5hours when I do my live trading rooms, I have complete freedom to do what I want, and

it is the most liberating feeling in the world.

I have achieved this feeling by embracing the two radical concepts in this book If youembrace them I believe that you too can achieve your personal goals by freeing up yourtime

I have struck a balance with my trading I suppose I could make a lot more money bycombining my understanding of my two concepts with the study of fundamental and

relational analysis, but I would rather not trade full time I enjoy looking at the charts for

a couple of hours at most After that I start to get bored So trading part time suits mefine I am a technical trader, that’s it I just study charts and use my ‘’Set & Forget’’Profit System, and live a completely stress free life

So, having traded unsuccessfully for 5 years, and then successfully for 3 years, all

because of the two concepts in this book, then I hope my experience helps you to getwhat you want from the Forex market

The bottom line is that I now trade using a “skill’ that I have learned called “chart

reading”, and I learned it through practicing I now have a good understanding of therepeating price patterns that occur every day and in every time frame I have ditched thesoftware and the expensive trading platforms and data feeds I now trade using a freeplatform, no software, and a few indicators, and my strategies work

I hope this gives you some encouragement If I can do it, anybody can

I am going to come back to my first concept later in the book, but for now I want to

move on to the second radical concept

Chapter Three

Radical Concept No 2

The Forex market is NOT trending 80-90% of the time

All over the internet you will find hundreds of websites about Forex trading 99% ofthem are trying to sell you expensive software, signal services and all kinds of otherproducts

One of the clever sales techniques they use to lure you in to buying their product is tosuggest that it will help you to trade…with the trend.

Most traders, and I include my previous self here, get obsessed with locating and then

“riding” the trend More books have been written about trend trading than any otheraspect of trading If you look at ALL the software on the market it usually has green and

red dots or arrows, which gives any chart the impression of being in either an uptrend

or a downtrend 80% of the time

This is very seductive to a trader When I look back at all the software I bought, one ofthe most alluring things about the software was the visual “picture” it gave me of themarket Looking at what appears to be a clearly trending market gave me confidence Ifigured that if I placed a long trade when the arrows or dots turned green and then

closed the trade when they turned red (and vice versa for a short trade) I would be

The Forex market is NOT trending 80-90% of the time.

If you look at any Forex chart you will see what ‘’appear’’ to be trends You will see theprice go steadily up and steadily down, so the price patterns look like trends However,when you look at them in more detail you will start to see that the vast majority of thetime the charts are ‘’channelling’’ and moving from side to side, followed by

‘’breakouts’’….then more side to side movement….and so on

To explain this further let me pose a question….if a market is trending, when did thetrend start….and when does the trend that started eventually end? Some say it is the

breaking of a swing high/low Others say it is when one moving average crosses

another

The big question is, in real time, when you are looking at the price NOW, and not in thepast, is price trending or not? The answer is that you don’t know for sure So you can

only rely on what looks like a trend from the historical price, and that’s when price can

appear to be trending Let me show you an example Here is a daily chart of the EURUSD, which I am looking at now as I write this book:

The purple line appears to show a price uptrend above it doesn’t it?

Now let’s look at the same chart with another so called ‘’trend line’’

This looks like a downtrend now doesn’t it?

Now let’s look at the chart with both lines on

The ‘’uptrend’’ still looks like an uptrend but the ‘’downtrend’’ isn’t as convincing nowbecause what was the start of the downtrend is actually still part of the initial uptrend.Let’s now have a look at the chart from a different perspective:

This is the same chart but a little bit further back in time and you can see that the market

is “channelling”… or “moving sideways”

Now look at the chart with the channelling lines and both ‘’trend lines’’ on it:

Now you can see that most of the uptrend (red line) is eaten up by the channelling lines(purple lines), meaning that half of the uptrend is not valid

You could do this with a thousand charts and you will find that real ‘’steady trends’’only occur about 20% of the time, at best, and I think the figure is nearer 10% So anyindicator or software that gives the ‘’suggestion’’ that the market is trending more oftenthan 10 to 20% of the time is simply seducing the trader into thinking that the market istrending when in fact it isn’t Most of the time the market is channelling and moving inwhat is often called a ‘’sideways movement’’, which I call channelling

Most price patterns that look like “trends” are in fact more like this:

….a channel followed by a breakout, then another channel, then another breakout…and

so on

Here is an example with the Cable (GBP USD) as I write this book:

So most ‘’trends’’ are really just multiple breakouts REAL ‘’steady’’ trends do not

happen frequently, and being able to spot the difference between a real ‘’steady’’ trendand a channel/breakout price movement is critical if you want to ‘’trade the trends’’.The ‘’trend is your friend’’ sales technique sells a lot of software and a lot of indicators,

so I can see why companies and individuals use it to convince us that trading with thetrend is the way to make money They then show you charts with ‘’trends’’ all over theplace….and guess what happens next? Well in my case, I bought the software on manyoccasions….that’s what happened next for me I fell for the sales technique

There was in fact one piece of software that I invested in that was better than all theothers, and it did have green and red dots to suggest whether the market is in a

downtrend or an uptrend I found the software helped me with some trades and it gave

me more confidence, but I must stress that it did not give me anywhere near as much

success as I have had since I have traded without any software.

So I guess I am saying that trading software may work for some traders, but not for me,

at least not consistently, and the traders I know that do make money CONSISTENTLYall trade using price patterns, not software or signal services

Before I move on let me repeat my two radical concepts

Radical Concept No 1:

Only the trained human eye can spot the recurring price patterns that occur every day in the Forex market Computers and their programs cannot!

Radical Concept No 2:

The markets are NOT trending most of the time so trying to take ‘’trend only’’ trades

makes it difficult to make profits consistently as it is difficult to spot the real ‘’steady’’trends To do so you would need to be at the charts 8 hours a day That’s ok for

professional traders, but not for a part time trader like me

Chapter Four

So why trade Forex?

If you are new to Forex you may be reading this book and thinking… if the Forex

market does not trend a lot… why trade Forex…why not trade stocks or commodities

or indices instead?

Well, I am not saying that you shouldn’t trade other instruments, but I am very “pro”Forex for the following reasons:

1 Forex is the most liquid market in the world

2 Forex rarely “gaps”

3 Forex can be traded 24/7, five days per week

4 There are far fewer decisions to make trading Forex

5 Forex cannot move too far, too fast

6 Forex exhibits “repeating price patterns” more regularly than any other marketLet me take each of these points and explain why they are important to me

1 Forex is the most liquid market in the world

Do you know what the dollar value is of every stock traded on the New York stockexchange per day?

The answer is approximately $24 billion So, if you add all the trades placed for theworld’s biggest companies together, including the Bank Of America, Dell, Microsoft,Google…and ALL the other HUGE global companies…you get $24 billion per day.Retail traders (that’s you and me…not the big banks….more on them later) trade about $1.5 trillion on the Forex spot market each day

So we Forex traders trade 65 times more than the entire world’s stock investors do inthe NYSE each day In addition, another $3.5 trillion is traded in the Forex spot market

by banks and other intuitions The Forex market is the biggest market in the world by far.Why is this important? From my point of view the answer is that the more liquid aninstrument is the tighter the bid/ask price can be and the easier it is to get into and out of

a trade In basic terms this means I am giving less back to the ‘’middle man’’ If you arenew to Forex, don’t worry if you don’t understand this concept It really doesn’t matter,

but it is worth noting that Forex is, in my opinion, the ‘’easiest’’ market to trade.

2 The Forex market rarely “gaps”

A spin off benefit of extremely high liquidity is that Forex pairs rarely “gap”

Here is a picture of a “gap”:

This is a gap that appeared on the AUD USD As you can see the market unpredictablyfalls, without any apparent trading volume

Gaps are a nightmare to trade, at least for me, and they occur regularly in the stockmarket I traded stocks for a couple of years I even studied a “gap trading” course, but Icouldn’t get the knack of it and I found trading gaps stressful

Gaps rarely occur in Forex because there is so much liquidity, and the Forex marketdoes not close overnight like the stock market does The gaps that do appear in the

Forex market are almost always on a Sunday night, when I don’t trade The only othertime it happens is when there is huge “news” that is unexpected, which is also rare.There is lots of “news” that affect the Forex markets, but rarely is it so unexpected that

it is not “factored in” to the price movements

The bottom line is that I don’t like gaps As you will read in Chapter Nine (The Forex

“Set & Forget” Profit System”) I play a mathematical game with the market, whichrelies on “probabilities” These probabilities are more likely with a “smooth” market.

So I want to trade “gap free” and Forex allows me to do that

3 Forex can be traded 24/7, five days per week

The Forex market also differs from the stock market in another way From Monday toFriday it doesn’t close, as I noted above It can be traded 24/7 for 5 days a week It isalso very liquid for about 18 of each 24 hour period So I can go to my lap top at 6 am,

or 6 pm, or any time in between, and see the same chart patterns appearing Not onlydoes the stock market close, but it also quietens down during ‘’lunch’’ hours, losingliquidity I don’t like that I like my time freedom, and I want to be able to trade Forex atthe hours I choose, not the hours that the market wants me to So with Forex I can relaxabout when to trade, knowing that there is enough trading happening whatever time Itrade

4 There are far fewer decisions to make trading Forex

As you will read in the next chapter (Don’t believe the hype Trading Forex is NOTcomplex) my style of trading is relaxed, and I use a very simple system I spent years,and lots of money looking at the complex ways of trading, and I didn’t make money Soone of the attributes of my current trading style is that I try to minimize the number ofdecisions I need to make when I enter and exit a trade

I found trading stocks was far more complex than trading Forex The main reason Ifound stock trading complex and more confusing is that the number of choices of stocks

to choose from is so huge Even if you focus on the more liquid stocks, there are stillhundreds to choose from So then it’s a case of choosing an industry perhaps? Ok, sowhich industry…and then which companies in that industry? For me, the whole aspect

of ‘’choosing’’ which stocks to trade involves too many decisions, and I found that toostressful

With Forex I only trade 8 currencies, and the way I trade, which you will read moreabout later, is such that I can easily “narrow down” on which currency pairs to trade in

a matter of minutes This means that I am making very few “decisions”….in fact, using

my strategies the way I do, most of the decisions are made for me by the trading rules in

The Forex market is unique in one respect, which is that because it involves currenciesthat belong to nations (and a whole economic region in the case of the Euro) then theprice of each currency in relation to any other can never be zero….it is not possible for

a currency to reach zero value Recently the Bank of Japan (in cahoots with the Japanesegovernment) has done a very good job of devaluing the Yen, because by doing so theireconomy benefits….but they will not be able to devalue it forever…there will come apoint at which the other currencies will ‘’peg it back’’ Check any Forex chart and youwill see that over the last 20 years no currency has been able to keep on rising in value,

or keep falling in value

This is because the countries and regions of the world are in a constant currency war.They are all battling for their currency to be at a particular value

It is not necessary to understand the fundamental reasons for this I barely understand it,but what is important to know is what this means for a currency trader….because it is

very good news.

Currencies cannot rise or fall too much over time because the people that move the

currencies (the banks) are all battling it out and the “battle” manifests itself in all timeframes When you look at any currency chart you will see that all currency pairs rise,and then fall, like all financial instruments do

However I noticed that they only ever rise, or fall, by a certain mathematical

‘’range’’ before they then head back in the other direction.

The Forex “Snap Back”

Due to this mathematical phenomenon Forex currencies literally get ‘’overstretched’’,like they are on an elastic band…and they eventually get so overstretched that they have

to ‘’snap back’’ into position I talk more about this later but it is a magnificent

phenomenon and I use it to make profitable trades every day It forms the fundamentalbasis of my Forex ‘’Snap Back’’ Strategy

I have recently created my own indicator to tell me when this ‘’overstretching’’ of acurrency pair outside its usual ‘’range’’ happens, so that I am alerted when to watch outfor a trade It is called the Apollo Currency Strength Indicator and you can read moreabout it in Chapter Six (My Indicators.)

Suffice to say, and it really doesn’t matter why it happens… ….the Forex currencypairs cannot get ‘’overstretched’’ too much in ANY time frame They cannot get

‘’overstretched’’ in a 1 minute chart, or a monthly chart, or any timeframe in between

My Apollo Currency Strength Indicator proves this to be the case

This is where currencies differ from stocks and commodities, which can go on huge bulland bear trends Bull and bear trends are fine if you know how to time them, and knowwhen they are likely to end…but that’s something I never mastered It’s a case of

spotting real ‘’steady’’ trends again which, for me, takes too much time

It really is great news that currencies behave in this way because it leads to the nextreason I trade Forex

6 Forex exhibits “repeating price patterns” more regularly than any other marketAlthough the Forex market does not trend that much I have observed that it does do onething more often than any other market:

It exhibits “repeating price patterns” in every time frame, and does so with remarkableregularity and reliability

One of the “repeating price patterns” are “tails”, which you will read more about soon.Tails occur very frequently when the market gets “overstretched” and this presents

fantastic trading opportunities every day

As I said earlier I play a ‘’mathematical game’’ with the Forex market I simply look toplace the mathematical odds in my favor, and I do that with three ingredients You willread more about the three ingredients in the main chapter The Forex ‘’Set & Forget’’Profit System

One of those ingredients is being able to make more profitable trades than losing

trades…which is of course what almost all traders aim to do In order for me to do that Isimply look for “repeating price patterns” and one of them is “tails” at particular price points When “tails” occur, and the market is overstretched, and they occur at a

predetermined point of support/resistance, then the number of times I profit ALWAYSoutnumbers the number of times I lose So the first ingredient of my success formula isachieved because of the “repeating price patterns”

No other market produces as many, or as reliable, price patterns, in my experience, and

it is the BIGGEST reason I trade Forex

Summary

I love trading Forex, and I won’t trade any other market again I have tried trading manyother markets, especially stocks, and stock options, but Forex wins hands down for thesix reasons I describe above

The fact that it doesn’t trend very often is not a bad thing In fact, it’s a good thing,

because it means that the repeating price patterns occur more often.

Be careful

If you are new to Forex trading then please be very careful There are dangers in tradingForex It is highly leveraged, and I am not covering what that means in this book, but youcan lose all your money very quickly when you are highly leveraged…however,

assuming that you do not take such risks, then there are plenty of good reasons to tradeForex

Watch out

The Forex retail spot trading market is growing at a remarkably fast rate There are over

2 million Metatrader accounts worldwide Forex brokers are now starting to advertise

on TV and sponsor some of the world’s biggest sports teams My girlfriend, who hasn’tgot a clue what Forex is about, even noticed the advertisements on TV recently

However, because of this there are also plenty of unscrupulous people, and companies,eager to take a slice of the multi-billion dollar marketplace….meaning a slice of yourmoney

In the next chapter I am going to talk you through the kind of things I think you shouldwatch out for so that you don’t fall prey to the many clever sales techniques employed inthe industry

It’s a great industry, and it provides me with a stress free living, but sadly, it also

harbours a lot of sales and marketing individuals and companies that exploit peoplewho are easily convinced…and I was one of those people for five years!!

Chapter Five

Don’t believe the hype Trading Forex is NOT complex

As you have probably gathered by now I feel quite strongly about the amount of selling that goes on in the Forex industry There are a lot of people making a lot of

mis-money out of retail traders like you and me, yet I have yet to see categorical PROOF

from anyone that their software or trading systems actually work

That’s why I decided to do weekly video summaries of the trades from my LIVE ForexTrading Room I want people to see my track record so that they can judge for

themselves You can see them every week here:

http://www.forextradermark.com/this-weeks-forex-trades-videos/

One of the reasons that I believe we fall for the sales tactics used by many Forex

product marketers, including some of the big software companies, is that most of them

make the Forex market seem complex It makes sense to suggest that trading Forex is

complex if you want to sell expensive products, because if trading Forex was not

complex, then how could anybody justify a few thousand dollars for a course, or a fewthousand dollars for software?

By making Forex seem complicated we become convinced that we need a complexsolution (and therefore expensive solution) to trade the market

I fell for the hype

I spent 5 years making no money, and when I look back at what I did in the 5 year period

it makes me cringe Very soon on my website you will be able see a photo of my

bookshelf I have kept all the trading books I have bought and read There are 35 ofthem In fact you can see a few of them on my bookshelf behind me on my Home pagevideo I bought them because I fell for the hype I believed that trading Forex is

complex, and that to master it I had to study and become a ‘’student’’ of Forex

I now realise that I was wrong

It is possible to become a student of Forex, and if you have the time and the inclination,that is fine, you can immerse yourself into the whole realm of technical, fundamental andrelational analysis and get to a ‘’professional’’ level……but that is not necessary to beable to make good money like I do on a part time basis

As I said earlier when I described my analogy about learning to play a

guitar… ANYTHING can be made complex if you want it to be, but it doesn’t have to

be With a guitar it can be as simple as learning a few chords In fact if you learned just

5 chords you would be able to play half of the pop songs ever written The fact thatthere are over 1000 chords becomes irrelevant Some guitar players know all 1000+chords Good for them Lots of very good guitarists just know enough chords to get by Iuse about 50 chords and I get by very well I have no desire to learn all the other

chords, or to be able to read music

That’s how it is for me in Forex trading I know enough to make money every month,

and that’s all I want to know.

Learning to ‘’read the charts’’ is a simple but repetitive process, and once you haverepeated the process enough times; it will become second nature to you

So don’t believe the hype, trading Forex is not complex, if you don’t want it to be Itstill takes a lot of practice to get good at “reading the charts”, but if you persevere youcan make it

Here are some “tell tail” signs to look out for when you are surfing through the internetand looking at Forex websites This is what I advise you to be wary of if you want toavoid being seduced by the sales techniques employed in the industry:

1 They describe many trading strategies.

If you see a website, or hear a guru talking about lots of different ways of tradingForex, be careful Think about it…if two or three strategies actually produceCONSISTENT profits EVERY month… why would you use 5 or more? It

doesn’t make sense My view of this kind of sales pitch is that it seduces you intothinking that the author or owner of the website has lots of knowledge and

‘’understands’’ Forex, which suggests that they are an authority, and can

2 The author/site owner does not share a LIVE track record to PROVE they can trade for a living.

There is only one way of knowing if a “teacher” can teach you….by observing them trade LIVE in the markets and them showing you their track record

from those live trades. Nothing else proves that the “teacher” can really tradefor a living The problem is, you will find hardly anyone out there who is

prepared to show you their track record

I make no bones about the fact that my Forex trading makes me enough money topay my bills It has not made me a millionaire, and it never will So I never

suggest that it can do anything more than help make a modest income If you see awebsite where the author or company who own it suggest that they have made akilling from trading… be sceptical

The fact is that if I had made a million from trading Forex you wouldn’t be

reading this book, because I wouldn’t have a trading room and I wouldn’t havewritten this book….I would be on a Mediterranean cruise right now!

3 They offer a standalone course (without LIVE trading sessions.)

This makes my blood boil You simply CANNOT trade Forex successfully bysimply studying a course and then trade using what you have learned from thecourse I have tried it many times Would you ever take your driving test by

studying the theory but not getting in the car? Of course not So if anybody tries tosell you a course without backing it up with LIVE demonstrations of trades usingthe strategies in the course…please also be sceptical

Courses in themselves are fine, and I WILL write one at some point, but when I

do, it will be packed with LIVE trades recorded on video so that you can hearand see me trading in the LIVE market, and you can check the trades on yourcharts

Let’s face it, all the charts I am showing you in this book could have been chosenbecause they back up my points That’s the same with any book you read or anycourse you study Any author can look back at enough charts to find one that fitshis/her strategy

When I write my course it will have at least 20 hours of LIVE videos showing

me trading my strategies every day over a full month I won’t miss out any days

It will be every day for a month Then there is nowhere to hide….and there will

be approximately 50 LIVE trades placed, which will be enough to absolutelyPROVE that the Forex trading system I teach works

In the meantime, until I do write that course, you can join me in my LIVE tradingrooms for FREE Go here to register:

www.forextradermark.com

4 The website has lots of pages.

If a Forex website has a lot of pages it is usually for ONE REASON….….to get

to the top of the Google rankings so that they can attract lots of visitors The fact

is that the more content that you have on a website, the more chance there is ofGoogle putting the website on the first page So a lot of Forex websites are

packed with pages showing articles, lessons, charts, blog posts and so on

Please don’t get me wrong, lots of good informative content is great, but if thecontent is full of words that are essentially saying the same thing then this isbecause the website owner is trying to fill the site with as much content as

possible There are some great Forex websites out there with lots of great

content (such as www.annacoulling.com) but they constitute about 10% of theForex website universe 90% of sites are built with lots of pages for a specificreason…to get to the top of Google and then to sell you their expensive

‘’complex’’ products once you click on them…usually a course or some

software

You will be able to see the difference between the 10% of great sites and theother 90% after a while The good websites will have lots of different content,and comments on the current market with blogs of where the market is ‘’likely’’

to go next The suspicious ones will have lots of words, but no live

demonstrations or trading comments about today’s market and where it is

heading

I know I am starting to sound like an old record here, and I probably sound

bitter….but I spent a small fortune falling for the techniques on many websites,

so I am just trying to protect you from doing the same

The best trading ‘’information’ ’website of all, in my opinion is:

www.investopedia.com

It is packed with lots of free information, and does not sell any software or

services If there is anything you want to know about Forex then I suggest that

you go there before you go anywhere else… just be sure to ignore all the

advertisements, and only read the content

There are also some great Forex Forums you can register with such as:

www.forexfactory.com

www.dailyfx.com

but be careful with Forums as it is very easy to get sucked into looking at lots ofstrategies which, in my experience, proved to be counterproductive

5 They sell ‘’buy and sell’’ indicators or ‘’signal services’’.

As I said earlier, if there were buy and sell signals that worked the banks woulduse them, and they don’t Buy and sell signals are always computer programgenerated, and the Forex market is driven by humans 80% of the Forex market iscontrolled by 10 banks, which employ human traders None of the banks haveautomated trading systems So understanding how those human beings that workfor the banks trade, is the only way to make money long term, and no software,buy/sell signal, or standalone indicator can do that

It sounds appealing doesn’t it? …you buy a product and sit back and wait for it

to tell you when to trade However I have yet to meet a single Forex trader who

is prepared to show me a live account that is in profit using any signal service.The ONLY profitable traders prepared to share their account details with me aretraders who trade the chart patterns…just like the professional traders who workfor the banks do

Legitimate ‘’Trade Alert’’ Services

Alternatively you could sign up for a ‘’trade alert’’ service, where a real lifetrader sends you texts or e mails with suggested trades Many of these servicesare legitimate and this is an option if you do not want to learn to become

independently profitable If you are happy to let somebody else do the work andgive you trade tips that is ok However, if you want FREEDOM then you need to

be able to trade yourself, and that will not happen if you are simply placing

trades based on somebody else’s system

Understanding Fundamental and Relational Analysis

Before we come to talk about my three Forex strategies, which are purely “technical”strategies, I just want to touch briefly on my view of the other elements of Forex

trading…namely the fields of Fundamental and Relational Analysis

I made a decision some years ago that I didn’t want to spend more than a couple of

hours a day studying and trading Forex Once that decision was made I then had to

decide where to focus my efforts, because I couldn’t learn “everything” or trade

effectively if I tried to cram technical, fundamental and relational analysis into a couple

of hours So my decision was to become a technical trader ONLY I have used the

“guitar” analogy already to explain why I am happy with this decision It suits me to

trade ONLY using technical analysis.

HOWEVER… if you are happy to spend more time learning and studying the Forexmarket, then you can become an even better trader if you understand and become anexpert in Fundamental and Relational Analysis If that is the case, then soon you will be

in for a treat

My Forex trading mentor is Anna Coulling She knows more about trading the markets(and I mean ALL the markets…not just Forex) than anyone else I know It was in factAnna that coached me in the nuances of chart reading Three years ago I explained toAnna that I only had an interest in technical analysis, so she took me back to basics andtaught me how to “read the charts”

In addition to being a master technical trader Anna also completely embraces and usesthe other two aspects of trading She teaches technical, fundamental and relational

analysis and she is the author of a book called

“A Three Dimensional Approach to Forex Trading”

In the book, in addition to explaining all the elements of technical analysis she alsodemystifies the sometimes daunting subjects of fundamental and relational analysis Ihave said many times in this book that trading Forex does not have to be complex In herbook Anna achieves a remarkable feat by taking what can be very complex subjects andteaching the trader how to seamlessly integrate all three aspects of trading together.However, trading using all three elements takes time, dedication and a lot of effort So ifyou are happy to immerse yourself into trading, and spend a high percentage of yourtime each day analysing the markets, then in my opinion, you couldn’t do better than buyAnna’s book (which you will find on Amazon) and follow her on her website:

www.annacoulling.com

I will always be a technical ONLY trader I have no appetite for spending more timethan I do now studying the markets However, I am conscious that many of you readingthis book may actually want to take your trading performance to even higher levels thanyou can do using technical analysis If that is you, then be sure to look Anna up

Chapter Six

My Indicators

There are not many indicators I have not used….free or paid for During the first fiveyears of my trading journey I spent a small fortune on books, courses, software…andindicators I have looked at all the free indicators I have studied MACD

convergence/divergence I have used stochastic, RSI, CCI, ADX,ATR, the

alligator….and lots more

The one thing I can tell you is that they are ALL lagging the market The only indicators

I have used ( that also lag the market) but that give me a “hint” about what the marketmay do next are:

Pivot candles … not to be confused with “pivot points’’ which are completelydifferent

The 200 period SMA

Bollinger Bands

A currency strength indicator

Volume bars (recently introduced and discussed in more detail in my Live ForexTrading Rooms)

I will talk you through each one in a moment….but the most important indicator of all…

in fact it is more important than all of the above put together… is:

Horizontal support and resistance lines…I call them S&R lines.

The reason why this is so important is that it is ONLY at the correctly drawn S&R lines

that the repeating price patterns I trade are reliable I cannot stress this point enough.Repeating price patterns occur in the Forex market constantly, in every time frame

However, only those price patterns that occur at the significant S&R lines are reliable.

I draw all the major horizontal (not diagonal) support and resistance lines on my chartsbefore I even think about placing a trade

In my opinion drawing the correct S&R lines is the ‘’skill’’ you need to acquire to be agood Forex trader It is not a difficult skill to acquire, but it does take time and patience.Once you have mastered the art of spotting and drawing the correct areas of support andresistance you are more than half way to becoming a successful Forex trader

The spotting of these price points, and the drawing of the lines is the single most

important thing I teach in my live Forex trading rooms I also teach plenty of other

stuff… but this is by far the most important thing I go through in each and every tradingroom

If you want to learn how to spot the correct price points and draw the significant S&Rlines then take a look for FREE by joining my FREE Live Forex Trading Rooms To joinsimply enter your name and e mail in the form on the site, which is here:

www.forextradermark.com

Ok yet another plug for my FREE trading rooms over…let’s move on

Assuming that you are trained and proficient in the spotting and drawing of the correctprice points of horizontal support and resistance let’s talk about the other indicators andhow I use them to give me a ‘’heads up’’ about which currency pairs to trade and inwhat timeframe

Pivot Candles/Bars

Here are some “pivots candles” on a chart:

ALL the blue arrows represent what I call “pivot candles” Let’s look at a close up of

one of them:

This is a ‘’pivot candle high’’.

A ‘’pivot candle high’’, in my terms, is simply any candle that has two lower lowseither side of it, and two lower highs either side of it So a ‘’pivot’’ or ‘’swing point’’ isformed over three candles, and is not complete until the third candle has closed

A “pivot candle low” is simply the opposite Here is an example of a pivot candle low:

The middle candle with the blue arrow has a candle to the left which has a higher highand a higher low than the middle candle The candle to the right also has a higher highand a higher low

These pivot candles are MAJOR swing points for the market They are not to be

confused with Fractals, which are swing points, but Fractals are calculated differentlyover five candles, not three

These pivot candles are also not to be confused with “Pivot Points” Pivot points arecompletely unrelated to pivot candles

I find that these pivot candles (which are represented by the blue arrows) really help me

to visually spot the correct areas of support and resistance.

Not all my support and resistance lines require a pivot candle, but I would say that 90%

of my lines are drawn where these pivot candles coincide with each other

The ‘’blue arrows’’ are my own indicator which I have called the Terminus Pivot

Candle Indicator (Terminus PCI), and is available from my website.

Terminus was the Greek God of ‘’boundaries’’ When I draw my S&R lines it is

uncanny how often the market stays within the lines The lines act as ‘’boundaries’’

within which the market is often confined….which is why I have called the indicatorTerminus

You don’t actually NEED Terminus to trade using my strategies, because it is simplypointing out visually those candles that happen to be pivot candles Pivot candles can beseen by the human eye You simply look for candles with higher highs/higher lows forthe pivot candle lows and vice versa for pivot candle highs…i.e lower highs andlower lows I just find it a lot easier to spot them with Terminus PCI

Here is an example of one of my charts with S&R (support and resistance) lines drawn

on it The purple lines are the significant S&R lines:

As you can see, pivot candles almost always appear on a significant S&R line Thereare also other significant price points that are not pivot candles, as highlighted above

I find pivot candles reduce the amount of time I spend drawing S&R lines by about

50%, which is the reason I use Terminus PCI.

Just to repeat what I said earlier….the spotting and drawing of the CORRECT S&R

lines is the single most important factor in my trading method Getting the wrong S&R price points would render my system useless Spotting these price points is a skill It

cannot be done by a computer…which is why the banks still pay professional traders

$millions to trade

The 200 period SMA

Many years ago I paid a lot of money($5000 to be precise) to join a group of traderscoached by Oliver Velez Oliver Velez is a master trader, and I learned a lot from him.The most significant thing he told me was that all markets REACT at the 200 periodsimple moving average (SMA) I have no idea why the markets react as they do at the

200 SMA, but I can tell you that they absolutely do.

I have traded using all kinds of moving average strategies, but none of them have

worked for me If you draw any moving average on a chart you can convince yourselfthat the market reacts to it Some people swear by Fibonacci numbers, others use the 50period or 100 period moving averages Whichever number you pick for a moving

average, when drawn on a chart it will ‘’look like’’ the market somehow bounces off it

I will pick a random number now of 17…and I will place it on a 15 minute chart of onecurrency pair and then on a 4 hour chart of another currency pair

Here it is below on the AUD NZD 15 minute chart

And below it is on the USD JPY 4 hour chart:

I can convince myself that the market ‘’reacted’’ to the moving average at some points

on both of those charts It is very easy for the human eye to be deceived, so movingaverage strategies are very seductive and convincing to many Forex traders…my past–self included

However, I have yet to come across a moving average, or moving average strategy

(other than the 200 SMA) that has made me money consistently

Try it yourself Pick a number and draw a moving average on your chart and there willalways be some points where the market appears to ‘’bounce’’ off the line

Now draw a 200 SMA on your charts and notice the HUGE difference The market

‘’reacts’’ at the 200 SMA so often that it has become a self-fulfilling prophecy I wastold by a trader friend of mine that the big banks all pay attention to the 200SMA morethan any other I have no idea why, but they do The bottom line is that because the 200SMA is so important, it helps me to make money because I spot lots of ‘’repeating pricepatterns’’ at or close to the 200 SMA

If you only take one thing from this book and it is the use of the 200 SMA then I am veryconfident that your trading results will improve I won’t draw a chart with a 200 SMA

on it now because any author can find a chart to suit their argument I will leave you todraw the 200 SMA on your chart and compare how the market reacts to it in comparison

to any other moving average Try it….you will be AMAZED!

Bollinger Bands

I have used Bollinger bands on their own to trade and I have not been able to sustainconsistent profits…HOWEVER… when I use them in a particular way with one of mystrategies they are fantastically reliable

Bollinger bands essentially measure ‘’standard deviation’’ and show where price

‘’deviates’’ from the ‘’mean’’ When the market is far away from the ‘’mean’’ price, italways pulls back towards the ‘’mean’’

If you don’t have a mathematical background that may not make much sense…and that’sfine because you don’t need to know

What is important about Bollinger bands for me is that they help to highlight when acurrency pair is getting ‘’overstretched’’, which then leads me to look for the

‘’repeating price patterns’’ at these ‘’overstretched’’ price points, which you will readmore about in the next chapter (My Three Forex Strategies.)

I use Bollinger bands in a specific way that is unique to my method of trading I am notaware of any other trader that uses them the way I do, and I am very proud of the system

are back “inside” the orange Bollingers.

This is significant because when the market is overstretched I start to see certain

‘’repeating price patterns’’ at these points, which I can exploit to make money I talkmuch more about this in the main chapter The Forex ‘’Set & Forget’’ Profit System.Bollinger Band Settings

I reveal the settings for the blue and orange Bollinger bands to everyone who joins mytrading rooms So if you want to find out exactly how to use this system, for FREE, thenregister for one of my FREE Live Forex trading Rooms

Currency Strength Indicator (sometimes referred to as a Currency Strength Meter)

I have always used a currency strength indicator In my opinion it just makes sense to do

so, because a currency strength indicator will tell you which currency is the strongestand which is the weakest at any given time Anyone trading currencies is at an

advantage if they know which currencies are strengthening and which are weakening So

a currency strength indicator is a ‘’must have’’ in my opinion

You can get them for free Here is a free one: