the simple dance

7/25/2019 The Simple Dance

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The Dance

Trading Manual

for the M15 Charts

1



Contents

Contents.....................................................................................................................................................2Legal Disclaimer:.......................................................................................................................................3Author's Note:............................................................................................................................................!hat this manual D"#$ N"T co%er.........................................................................................................&

The $ecrets of Trading...............................................................................................................................The (ules:................................................................................................................................................1)Additional Considerations and Definitions..............................................................................................13The $im*lified (ules...............................................................................................................................1T+# CA(D,NAL (-L#: ......................................................................................................................1Trade Chec/list........................................................................................................................................10-sing rice Action...................................................................................................................................2)Chart $etu*: Metatrader...........................................................................................................................25Ta/ing The Trade....................................................................................................................................2The Constrainment Trade.........................................................................................................................20The AAA Touch4 Trade #ntr................................................................................................................3)

+o6 To Let The Mar/et $ho6 ,t's +and4..............................................................................................3utting ,t All Together:.............................................................................................................................3&(efining the #ntr....................................................................................................................................3A !ord A7out !ic/s................................................................................................................................)$ta "-T................................................................................................................................................1Trade 8 (is/ Management......................................................................................................................3Trailing the $L:........................................................................................................................................&$etting -* The Charts..............................................................................................................................-sing The rofile.....................................................................................................................................52-sing The $cri*ts ....................................................................................................................................53"anda Charts............................................................................................................................................5

Dancing ractice .....................................................................................................................................1,t's A 9usiness .....................................................................................................................................3Master The Trades .................................................................................................................................Ma/e ,t ours .........................................................................................................................................0A ;e6 Li%e #<am*les..............................................................................................................................)

Co*right Cla ;errell= 2))0 > 2)1) an effort to change this 7asic set of rules of the strateg is

strictl for7idden unless *rior 6ritten *ermission is granted 7 the author.

2



Legal Disclaimer:

Trading foreign currencies is and extremely risky activity 7ut is *otentiall a *rofita7le o**ortunit foreducated and e<*erienced in%estors. 9efore deciding to *artici*ate in the ;ore< mar/et= ou should

carefull consider our in%estment o7?ecti%es= le%el of e<*erience and ris/ a**etite. Most importantly,do not invest money you cannot afford to lose. There is considera7le e<*osure to ris/ in an foreigne<change transaction. An transaction in%ol%ing currencies in%ol%es ris/s including= 7ut not limited to=the *otential for changing *olitical and@or economic conditions that ma su7stantiall affect the *rice orliuidit of a currenc= the ris/ of settlement discre*ancies= 7ro/er errors and malfeasance= outrightfraud and man others.

Moreo%er= the le%eraged nature of ;B trading means that an mar/et mo%ement 6ill ha%e an euall *ro*ortional effect on our de*osited funds. This ma 6or/ against ou as 6ell as for ou. The *ossi7ilit e<ists that ou could sustain a total loss of all initiall de*osited margin funds and 7ereuired to de*osit additional funds to maintain our *osition 6ith an gi%en 7ro/er. ,f ou fail to meetan margin calls 6ithin the time *rescri7ed= our trading *osition ma 7e liuidated and ou ma 7eres*onsi7le for an resulting losses= including amounts *otentiall more than our de*osit.

The content *ro%ided herein is *ut for6ard in good faith and 7elie%ed to 7e accurate and effecti%e=ho6e%er= there are no e<*licit or im*licit 6arranties of an /ind made in connection 6ith thisinformation. $hould ou choose to use this strateg= ou 6ill 7e trading e<clusi%el at our o6n ris/ ofour o6n free 6ill.

9 using this $trateg= the reader thats ou agrees not to hold the author of this information= or anof his or hers affiliates= assigns= or heirs lia7le for and to e<*licitl hold harmless from an decisionsthat ou ma/e 7ased on information contained in this document= or an information found on anelectronic forum or from an email discussing this strateg= no matter 6here it is or 6here this strateg6as *ut for6ard.

,f ou do not agree 6ith the all of the a7o%e= do not trade using an of this information or an *art ofthis strateg.



Author's Note:

Learning to trade is a %er *ersonal thing. The ?ourne can 7e e<tremel frustrating= is almost al6as alonel ?ourne= 7ut is al6as 6orth it.

(ule num7er 1 in learning to trade ;ore< is that ou can get e%erthing ou need for free if ou are6illing to do some research and some 6or/ on our o6n. aing for sstems4 is stu*id. The are adime a doEen and al6as 6orth less than ou *a for them. our o6n mind and the charts is the onlthing ou need. 9en?amin fran/lin said= #m*t our *urse into our mind and our *urse 6ill ne%er 7e em*t4

That is amaEingl good ad%ice. Training is 6orth *aing for= 7ut in ;ore<= ou can get all ou coulde%er 6ant or need mostl for free. !ith that said= there is something to 7e said for *aid training in that *eo*le mostl discount the %alue of things the recei%e for free.

;or the most *art , ha%e found trading to 7e an arena filled 6ith tons and tons of 6anna7e gurus=sheister *romoters= amaEingl 6orthless and com*le< strategies and sstems and most im*ortantl=selfFfulfilling *ro*hecies.4 ;or e<am*le= ;i7onacci lines= #lliot !a%es= Andre6s itchfor/s= Mo%ingA%erages= $tochastics and $u**ort@ (esistance le%els all 6or/ reall 6ell 7ecause so %er= %er man

*eo*le use them= 7ut the often fail as 6ell 7ecause some larger *laer mo%es the mar/et or some otherinfluence does.

(ound Num7ers4 also 6or/ %er 6ell for the same reasons. eo*le tend to round4 the num7ers intheir lifes. There is nothing magical in an of this= ?ust *lain old human *scholog at 6or/. ;ear/ee*s *eo*le tra**ed and ma/es certain le%els stronger than others. Greed does much the same ?ust ina different 6a.

,f ou 6atch *rice action around Andre6's *itchfor/s= ou 6ill see the e<act same sort of mo%ement asou do around longer term Mo%ing A%erages. Nature lo%es a 7alance and *eo*le instincti%elunderstand that.

!hat goes u* must come do6n= e%erone /no6s that ,nertia /ee*s mo%ing o7?ects in motion andresists o7?ects at rest from mo%ement. #%erone /no6s that too

Life is filled 6ith ccles= 6hich scientists no6 call circadian rhthm.4 Night and da= rise and fall ofthe tides= slee* and 6a/ing= e<citement and de*ression. #%erone /no6s this too

;ractal technolog is the science of ho6 larger things are 7uilt on smaller things. Hust loo/ at a tree."ne line 7ranches4 into multi*le lines and e%entuall 6e ha%e the sha*e 6e recogniEe trees to ha%e= 7oth in 7ranches and roots.

eo*le ha%e 7een tring to a**l all these *rinci*les in differing methods to the mar/ets from 6hen thefirst mar/et *lace 6as e%er created. Hust loo/ at ho6 long the Ha*anese /e*t records of the rice mar/ets6ith candlestic/ charts. The same is true of the grain mar/ets in more #uro*ean areas= ?ust not 6ith

candle stic/s.The 6hole *oint in all this is that life is 7uilt on selfFfulfilling *ro*hecies and e<*ectancies. $o are themar/ets. ,t is s*ecificall the selfFfulfilling *ro*hecies4 that ma/e ;ore< tradea7le and *rofita7le ifou learn to understand and use them effecti%el. Also= each *erson is 7uilt different and differentselfFfulfilling *ro*hecies4 6ill 6or/ for them.

Trading is no more difficult than finding one or more of these that ou can understand= see4 clearl ona chart and trade effecti%el. ,t's reall more li/e a dance= *o/er or a %ideo game than anone 6ants toadmit.



There is an old countr 6estern song that sas= "ne ste* for6ard and t6o ste*s 7ac/= no one gets %erfar li/e that.4 9-T= that is not true.

,n a dance there are t6o *artners. "ne leads= one follo6s. ;or the most *art the male4 leads and thefemale4 follo6s. $he is tra%eling along in the dance ?ust as fast as he is= onl she is doing it 7ac/6ards $he is also ta/ing all of her cues4 from him. !ithout 7oth *artners there 6ould 7e nodance.

,n trading= the mar/et is AL!A$ the male4 and traders are ALL female4 ta/ing their cues fromhim4 AND= the must do it in res*onse ra*idl and 7ac/6ards.

,f one o%er analEes a dance techniue the mess it u*= the flo64 of the dance suffers and sometimesthe e%en get hurt. ,f the don't understand the cues the same thing ha**ens= onl often it's 6orse .Trading is no different. $o= learn to dance. Learn to ta/e cues from the mar/et and ?ust ha%e fun

Credit where Credit is Due!

This strateg is a com7ination of t6o main strategies that , greatl admire. The first is trading Mo%ingA%erage 7ounces 6hich Hosh ;ord taught me. $econd is Hames1& for his thread on rice Action 9ars at;ore<;actor. Lastl , learned a7out (ound Num7ers4 and their effects reading Hac/o's Thread alsoon ;;.

All , reall did 6as to listen attenti%el to 6hat Hosh taught me and document man of the nuances4 oftrading Mo%ing A%erages the 6a he does it. ,t is amaEingl *o6erful

A Word About Idiots and Neanderthals

This strateg 6as originall *osted to ;ore<;actor 6ith the intent of it 7eing a for free4 trading

strateg. Nothing 6as e%er as/ed for in return and no offers 6ere e%er made in regards to its use=training to use it= and the Author N#I#( #I#( trades AN managed accounts. There is no need to.

$till= for some reason a fe6 decided that the Author's 6riting stle4 6as similar to some idiot 6hosu**osedl defrauded some on that forum 7 trading managed accounts. Though , am not familiar6ith the stor= let me sa this. AN"N# 6ho #I#( gi%es their hard earned cash to a stranger themeet on an ,nternet forum for trading= is as much of an idiot as the *erson doing the trading is. 9"T+of them are reall stu*id.

!ith that said= the Neanderthals on ;ore<;actor= 6ithout an e%idence of an /ind= and the lame 7rained site administrator 6ho admitted in his *ost 7anning the Author that he had N" hard e%idence ofAN /ind= still destroed the teaching of a %er solid and free strateg to man 6ho reall needed that

free teaching.The strateg is still there in the (eccle 9in4 if ou 6ant more information on this 7asic set of rules atthe follo6ing lin/ and a trader using the screen name of Jostas1 has ta/en it u*on himself to continuethe original 6or/= 6ith this Author's a**ro%al. T+,$ manual is *ro7a7l *osted on his thread to /ee*m 6ord that , 6ould reF6or/ it a 7it and to assist him in his efforts to continue the 6or/ teaching TheDance.

The Dance is here: htt*:@@666.fore<factor.com@sho6thread.*h*Kt22&0

http://www.forexfactory.com/showthread.php?t=224697




Jostas1's Choros4 thread is here: htt*:@@666.fore<factor.com@sho6thread.*h*Kt23&21)

Disclaimer: The Author of this manual has no relation to the trader /no6n as Jostas1= and is N"Tres*onsi7le in AN !A for 6hat is taught on that thread and acce*ts N" lia7ilit in an 6a= sha*e=form or fashion for 6hat occurs on that thread.

What this manual DOE NOT coer"

This manual's *ur*ose is to clean u* and sim*lif a 7it some of the rules and the 7asics of The Dancefore< trading strateg. It is NOT a #s$stem% and reuires the reader to actuall learn to trade. 9ut there6ards for that learning are staggering indeed 6ith an a%erage of increase dail *ossi7le until theaccount 7ecomes large enough that liuidit 7ecomes an issue. #%en then= consistanc is not onl *ossi7le= it is *ro7a7l if the rules are follo6ed.

,T D"#$ N"T include long discussions of ad%anced4 rules though some are alluded to in the sections6here using !ic/s4 is mentioned and others.

"- can also figure out the ad%anced rules sim*l 7 their names ,; ou are 6illing to s*end sometime in the $imulator and in trading Demo for a 6hile

The Ad%anced (ules= if , e%er decide to ma/e them *u7lic after m e<*erience at teaching for free at;;= are -sing Dail !ic/s for entries and e<its= -sing +ourl !ic/s and Long !ic/s for entries ande<its= +ome "n The (ange trading ranging mar/ets= $coo*ed -* trading strong re%ersals andlaing ing ong learning to trade the *ing *ong4 area on the +1= D1 and %er= %er rarel the M15charts.

There are a fe6 more= 7ut ,'m doing T+,$ re%ision e<clusi%el to sim*lif The Dance it's self.

, still D" N"T /no6 6hat , am going to do et= after the fiasco at ;;= 7ut , 6ill ?ust /ee* mastering mstrateg= ma/ing mone and learning and hel*ing ;"( ;(##= a fe6 6ho ha%e as/ed me to hel*. ,!,LL N"T 7e acce*ting anone to mentor 6hich is also ;(## 6hen , do it.






The ecrets o& Trading

#%erone 6ants to /no6 the secrets of trading. The are *rett sim*le reall and the true secrets ha%ea7solutel N"T+,NG to do 6ith a *articular strateg. The A(# a7out "- *ersonall and ho6"- o*erate in life. That is the main reason no one 6ants to 7elie%e them and 6h the remainsecret.4 These secrets are hidden in *lain sight for all to see and learn freel. ,t is other *eo*le 6ho

6ant to ma/e mone tring to sell ou some great sstem or strateg that su**osedl the alone ha%e 7een a7le to figure out that cause all the confusion in trading. $u**osedl their sstem4 allo6s themto unloc/ the secrets4 of trading consistentl and *rofita7l.

$o= in this first *art of the manual= ,'m going to list the most *rofita7le secrets there are an6here oftrading successfull. The secrets are as follo6s.

ecret (: tic) to ONE strateg$"

;ind a strateg that ma/es sense to ou and stic/ to it and it alone li/e a faithful 6ife and master it.This is *ro7a7l the single greatest secret in all of trading. Master "N# strateg. There are nosstems4 onl strategies that 6or/ if ou master them. ,f ou ?um* around from one to another ou6ill ne%er master anthing and 7e fore%er loc/ed in the suc/er's dream of the sstem4 or the +ol

Grail4 of trading. The truth is= all strategies 6or/ for the ones using them if the 6ill learn to masterthem.

The Dance4 is ?ust another strateg. ,t is not a secret sstem= it is not a sstem at all reall= 7ut , *ersonall 7elie%e it is much sim*ler to learn and master and that it can= if used *ro*erl= 6or/ in allmar/ets and on all securities= not ?ust ;"(#B.

ecret *: +O, are the main secret in trading"

ou are the greatest secret in trading. ou ha%e 7een gifted 6ith the fastest com*uter /no6n to man atour 7irth and ou ha%e the a7ilit to learn= ada*t and modif e%erthing ou see and come into contact6ith. The 6a ou see4 things is %er different than the 6a other's see4 things. That is ho6 TheDance4 came to 7e. , sa64 something in the inter*la of some mo%ing a%erages that , had ne%er reada7out= 7ut it made sense to me immediatel and , 7egan to e<*lore it and *ractice 6hat , sa6.4 ,t6or/s and it 6or/s for anone and e%erone 6ho uses it and the sim*ler ou /ee* it= the more *o6erfulit is. ,f ou can master ou4 and our emotions a7out trading tal/ed a7out in another of the secrets=ou !,LL 7ecome successful. And that leads us to secret O3.

ecret -: im.ler is better"

$im*ler is al6as 7etter. The more com*le< a strateg is= the harder to learn it 6ill 7e and the easier it6ill 7e to ma/e mista/es that 6ill sha/e our confidence= slo6 ou do6n and cost ou= *ossi7l= earsin mastering trading. +a%ing more lines on a chart has no more %alue than ha%ing one. ersonall ,find three o*timal to gi%e me all the information , could *ossi7l need to trade 6ith in a %isual fashion.All indicators are ?ust more lines dis*laed differentl that reFhash the same 7asic information found in

mo%ing a%erages. Anone 6ho sas differentl *ro7a7l has a sstem4 to sell ou.

ecret /: Acce.t the #numbers game% iew o& it"

Mastering trading is not hard. ,t's ?ust an issue of acce*ting the num7ers game4 of it all. All thingsha%e a *ro7a7ilit4 ratio or a num7ers game4 that creates the success of the effort. !hether it'ss*orts= industr= sales or trading= there is a num7ers game4 7ehind it all. The more ou can find anedge4 something ou can e<*loit= the faster ou 6ill 7ecome 6ill 7ecome consistent at our effort andthat consistenc leads to success.



ecret 0: 1aster $oursel&2 master $our trading"

our o6n emotions are the onl real enem4 in all of trading. 9ro/ers 6ho mani*ulate *rice feedscannot defeat ou. Mar/et ma/ers 6ho charge large s*reads cannot defeat ou. The ne6s cannotdefeat ou. Changing mar/ets cannot defeat ou.

3reed 6ill decimate ou accounts= crush our strategies= /ill our dreams and add ears to our effortsin trading. Greed is e<tremel dece*ti%e. ,t's not 6anting to ha%e large accounts= it's not 6anting to 7e6ealth. ,n trading= greed is none of the normal things ou are taught it is. ,n trading= it's 6anting toget that ne<t *oint 6hen the strateg sas our done. ,t's 6anting 3) *oints 6hen the strateg's rulessa 15 is enough. ,t's 6anting to s6ing for the fences on e%er single trade. Greed is not 7eing 6illingto ta/e it slo6 and allo6 it to gro6. ,t's not allo6ing com*ounding to 6or/ and 6anting to ha%e itno6.4

4ear 6ill /ill our trading and add ears to our effort of 7eing successful. The rules of an strategare desined to ta/e the emotions out of our trading. Allo6ing ourself to second guess4 the rules isfear. Not ta/ing a trade instantl on the signal is fear. #<iting a trade 7efore the rules call for is fear.Anthing that /ee*s ou from follo6ing our rules is fear and it short circuits all of our efforts and allof our training and adds ears to our trading and ro7s ou of success. ou must eliminate it from

our trading.5eenge 6ill destro ou as 6ell. ou are not the target of an great cons*irac and the mar/etcouldn't care less a7out our trade or our *osition. The 7ro/ers ma 6ant ou to 7e a %ictim= 7uttrading out of a desire for re%enge 6ill s/e6 our thought and t6ist 6hat ou see4 on the charts. ,t6ill defeat ou as 6ill greed and fear.

Arrogance 6ill destro ou ?ust as fast as either of these others. Trading from the *ers*ecti%e of anemotion 6ill /ill our trading. Arrogance 6ill do it ?ust as fast as greed= fear or re%enge. ou are N"Tmista/e *roof. #%en ,; ou 7elie%e ou ha%e mastered a strateg= an strateg ou 6ill still ma/emista/es. Arrogance 6ill lead ou to e%en 7igger mista/es= then to re%enge to tr to ma/e u* for it=then to greed to tr to get ?ust a little more4 so ou can earn 7ac/ 6hat ou lost.

ecret 6: There are no ma)eu. trades"

Trade each trade and each session as if it 6ere the onl one. esterda is gone and does not deser%e to 7e remem7ered in trading. The onl thing that e<ists in successful= consistent trading is the trade ouare a7out to *lace. Ma/e it the 7est on *ossi7le and forget the *ast so our emotions don't ha%e a *laceto ta/e hold on ou.

ecret 7: 8ersistence and attitude will oercome eer$thing"

,f ou 7elie%e ou can do this= ou can. ,f ou do not 7elie%e that= uit no6. Nothing can sto* ordefeat ou 7ut ou. That is true of e%erthing in life= not ?ust trading. ,t does ho6e%er a**ls*ecificall to trading. Ne%er e%er listen to anone 6ho sas ou can't trade.

ecret 9: I& it's not boring2 $ou are NOT trading correctl$"Trading is a %er lonel 7usiness for the most *art. eo*le lo%e to do things in grou*s. Trading ise<tremel *ersonal. eo*le lo%e e<citement and things that are interesting. $"L,D trading ise<ce*tionall 7oring and lonel. "ne of the hardest 7attles ou 6ill fight is to ?ust trade and not tr tofi< it4 or im*ro%e it.4 This strateg 6or/s da in and da out. ,n fact= if ou learn to ta/e onl the*erfect4 signals= ou 6ill ma/e more mone in the good *oints of *rice mo%ement than ou e%er6ould tring to fi< it.4

,f ou earned 3 to 1) *er da during the $"L,D *rice mo%ements and entries= and a%oided the



side6as das alone= ou could 7ecome 6ealth in a single ear starting 6ith as little as P1)).)). The *o6er of com*ounding= com7ined 6ith solid entries 6ould ta/e P1)).)) to o%er P&))=))).)) in 3))das of trading. This assumes that ou ma/e some good trades and some 7ad trades 7ut a%erage onl3 *er da. A%eraging 5 *er da 6ould ta/e ou to o%er se%eral million.

There are those 6ho 6ould li/e to tr to tell ou it's not *ossi7le= 7ut it is and the most difficult *art isit's 7oring.

ecret : ome da$s $ou ;ust hae bad da$s !

#%er single athlete of an s*ort in an age has faced the grimlins4 of a 7ad da 6hen for no a**arentreason= someone 6hose s/ill and *hsical *ro6ess are not e%en close sim*l trashes them. There areno reasons= to rationales= no analsis that can sto* it. ,t 6ill ha**en= 7ut ou can limit it Trading is nodifferent.

This is the reason for rules. The are to su*ersede our mind= instincts= emotions and all of our effortsto o%ercome it= 6hich runs counter to e%erthing 6e ha%e e%er 7een taught in life. $T" !al/ a6a6hen ou start %iolating AN rules= #$#C,ALL the 5 trades and $T" or the T!" L"$$ and$T" rules

L#A(N to limit our arrogance and *ride of ho6 good ou ha%e 7ecome= or ho6 good our strateg is.L#A(N to limit our losses ;ollo6 the (-L#$



The 5ules:

9efore 6e 7egin the rules section= ou need to ma/e some decisions a7out our trading right no6= righthere. ,f 6hat ou are loo/ing for is a ne%er fail= *oint and clic/= automated= does it all for ou sort ofthing= *lease don't trade at all= ,'m not saing don't trade The Dance= ,'m saing find something else to6aste our mone on.

,f 6hat ou 6ant is reall= reall high *i* counts= *lease mo%e on. That is N"T the *ur*ose of TheDance. ,f ou 6ant to trade e%er signal ou see= mo%e on to some other strateg or sstem. TheDance is not for ou. ,f ou 6ant to dou7le our account e%er fe6 6ee/s= *lease mo%e on.

,; ou 6ant to learn to trade a sim*le sstem that is fairl eas to learn= ma/e lots of mone and ne%erneed more than ) *i*s a da to do it. !elcome home= this is the *lace. !ith time= ou 6ill also get tothe larger *i* counts and to 6here ou can ma/e a lot more trades= 7ut the ;,($T thing ou ha%e to dois master "N# strateg and no more than t6o or three t*es of entries and N#I#( %ar from them.

T+AT is 6hat *rofessional trading is a7out. A disci*lined a**roach to trading that consistentl earns

ou income and 6ealth. +ere are the rules.

Trading Times:

1. Trade "NL during the London< N+ Oerla. &or ,D and 3=8 *airs.2. Trade "NL during the Asian<London Oerla. &or >8+ *airs.3. "7%iousl some *airs fit more than one session. Loo/ u* the times on our o6n. Do $"M#

6or/ , use #ur@H*= G7*@-sd and Aud@H* 7ut onl "N# on a chart at a time. ,t has mT"TAL attention 6hen , trade= 6hich e%er one it is.

Time 4rame:

(" (0 1inute charts .rimaril$ &or all entr$ signals"

1. The other charts are for direction and fine tuning the entries and e<its as needed.2. The ti*s of 6ic/s on +1and D1 are great $@( Le%els to ta/e trades off and for e<its= as are

the Dance lines on the higher time frames.3. "nl Touch4 trades are acce*ta7le on +1 and D1 and should also match @A on M15.

Chart setu.: - charts! 1(02 ?( and D( @$ou can substitute ?/ &or D(

1. No more than "N# main4 chart set to M15 and t6o smaller charts for each main4 currenc.$maller charts are set to +1 and one to D1. M5 is "NL used to fine tune4 an entr= 7ut D" N"T use it in the setu*. Learn to change the T; on the M15 to use it.

2. DO NOT CO18LICATE T?E C?A5T 6ith the gar7age of more indicators. The ?ustcloud the issue and more to the *rocess of deciding to enter a trade and are N"T needed.

Entries:

1. Trade WIT? the #trend of the moment4 and assume the trend 6ill continue from the *re%ioussession or the first entr. ,f ou 7ecome reall *roficient= ou 6ill learn to trade ranging4 and$coo*ed -* areas as 6ell= 6hich are discussed later.

*" The 0B E1A with the -0 1A moing aerages determine the trend o& the moment on

1(0!

1. Loo/ for longs ONL+ 6hen rice= is a7o%e the 5) #MA@ 35 $MA Lines.2. Loo/ for shorts ONL+ 6hen rice= is 7elo6 the 5) #MA@ 35 $MA Lines.-" NO ECE8TION @es.eciall$ &or beginners! 8rice and T?E 0BE1A< -0 1A 1,T



A35EE A35EE WIT? T?E T5ADE2 85E4E5A=L+ 45O1 A 8,LL =AC TO the

0B or -0" It can be a .ull bac) to the (Bsma2 but the angle must be E5+ stee."

. #Touch Trade Entries% must be ta)en o&& o& a stee. 1A and are onl acce*ta7le ,; ricehas ha%e mo%ed at least 15 *i*s in the direction of the trade= and o**osite *ull 7ac/ thatcreates the touch4 6hich is a short= %er fast run 7ac/4 to the lines touched4. e<*lainedin the *rice action sections.

1. Ta)en o&& a stee. (B E1A must also 7e a7o%e the 5) #MA@ 35 $MA Lines for longsand 7elo6 for shorts.1. "NL trade the touch4 of the 1) #MA ,; it is the ;,($T or $#C"ND 7ar in the

retrace= it has a I#( $T## angle see e<am*le later in manual= *rice has mo%eda strong distance4 of more than 15 *i*s and ou trade it #BACTL at the touch46ith no more then 0F11 *i*s $L.

2. TWO BAR RULE for 1) #MA Touch Trades4 is sim*l this. ,t is a retrace4 tradeand normall the #MA is at a %er stee*4 angle of a7out 5 degrees or more ANDta/es no more than T!" large 7ars to get there4 to touch4 the 1) MA and theretrace should 7e almost %ertical or ou should *ass on the trade and 6ait for @A tore%eal 6here rice is reall going.

3. "n M15= *rice must ALO ha%e mo%ed o%er 15 *i*s 7efore the retrace to thetouch4 entr

. Touch Trades4 off the 35 $MA and 5) #MA are also %er eas to see 7ut M-$T 7eta/en "NL if the #MAs are *arallel the closer the 7etter= or on to*4 of each otherand at a stee* angle= sa a7out 25 Degrees or more as sho6n later in this manual. 9eI#( careful if the are nearl horiEontal or s*read 6idel as the trade is much much6ea/er and the farther a*art the are= the more li/el ou are seeing the start of are%ersal.

0" ?igher Time 4rame #touch% trades are E5+ .ower&ul" LOO 4O5 T?E1!

&. #Constrainment Trades% are ne<t 7est signals against the 35 or 5). The can alsoha**en at the 1) #MA ?ust 7e more careful 6ith the ones off the 1) #MA and use tightersto*s. "ften these occur 6ith se%eral smaller 7ars 7eing constrained4 7 the mo%inga%erage in%ol%ed and are uite clear to see. Constrainment trades ALWA+ hae at

least three bars in the setu* and often se%eral more. The definition constrainment4 is aseries of 7ars that res*ect4 a s*ecific mo%ing a%erage in the $trateg. -suall the 35 or5) 7ut can 7e the 1).

3. NO LATE ENT5IE! I4 +O, 1I ONE= D" N"T chase it or ta/e the entr late4 6ait foranother one= there are lots of trades to ta/e. Ta/ing late entries 6ill onl increase our ris/ andfrustrate ou.

. Counter Trend Entries: NOT 5ECO11ENDED AND NOT NECEA5+ 4O5 35EAT

3AIN! 1aFimum Number o& Trades!: NO ECE8TION EE5 !!!

1. 1aFimum o& 0 success&ul trades" G,I# ,T A (#$T after that and s*end some time doingsomething else= G#T A L,;# a*art from trading.

2. 1aFimum o& * Losing Trades in a row" G#T "I#( ,T and o%er ourself L#A(N tosto* and get o%er it ou 6ill ma/e mista/es and this rule 6ill mitigate them. N#I#(I,"LAT# T+,$ (-L#. There are tons of trading o**ortunities and trading das.

to. Loss:

1. $to* Losses need to 7e adeuate4 and that means different $L on different currencies. ,f oufind ourself using more than 15 *i*s consistentl for the $L= ou need to *ractice and refine



our entries.2. Mo%e the $L to 9# as soon as ou feel the trade 6ill not ta/e out our $L on a 7reath.4

Definitel after the trade gi%es ou 1) *i*s or more.3. A good *lace to set our original $L is $*read ?ust a cou*le of *i*s 7elo6 or a7o%e the

*re%ious 7ar= round num7er4 or ema that *rice touched and mo%ed a6a from. 9e sure toinclude the s*read.

. EE8 T?E1 TI3?T!: During a mo%e= /ee* the $L reasona7l tight. Meaning mo%e it to the 7ottom or to* of the last 7ar each time one closes until ou get strong 6ith this strateg. Thisis es*eciall im*ortant 6ith AN sort of @A 7ar that might indicate a re%ersal= Tighten to theclose of the @A 9ar immediatel

Number o& .ositions:

Ne%er ta/e more than t6oQ *ositions #I#(. (is/ management is a large *art of this strateg. Tooman *ositions increases our ris/ far more than needed.

8ro&it Targets:

1. Though there is no s*ecific T in this strateg other than ta/ing out the first *osition at 1) *i*sand mo%ing to 9#= after that the 7est 6a to loc/ in *rofits is to mo%e our $L to the e<treme ofthe *re%ious 7ar s*read and 6ait for the current 7ar to close. The onl e<ce*tion to this is6hen a**roaching a round num7er4 le%el or a stronger #MA li/e the 5) #MA@ 35 $MA Lineson a retrace. Tighten our sto*s at those le%els as *rice has a nast tendenc to re%erse at them.The other o*tion= 6ith more e<*erience 6ill 7e to e<it and immediatel short at that firsttouch4 of the 5) #MA@ 35 $MA Lines.

2. 4irst EFit should 7e ta/en on one *osition after a7out 1) *i*s. ,f *rice is literall racing4 inour direction= e<it after 1) *i*s on the first *osition after it starts to hesitate too much4 for"-( tastes and mo%e our $L to at least 9# or to the 7ottom of the last 7ar= 6hich e%er ismore *rofit.

3. ,f it 7ecomes a**arent ou are in a ranging or cho** mar/et= There reall isn't an reason totrade it. !ith e<*erience ou can= 7ut it's not 6orth it and N"T needed.

. DO NOT =E A45AID TO TAE +O,5 8I8 EA5L+ there will be more trades! oudon't ha%e to /noc/ it out of the *ar/ e%er time to 7e %er *rofita7le 6ith this strateg= and itta/es e<*erience to master the longer trades. Ta/ing a uic/ 2) or so on a mo%e is com*letelacce*ta7le and ou !,LL get 7etter as time *rogresses.

5. ,f @A indicates a re%ersal 7et6een round num7er4 le%els= get out There 6ill 7e moreo**ortunities. ro7a7l at the last (N *rice has ?ust *assed.

&. N48 DA+ @non &arms .a$roll and hea% ne6s das can 7e un*redicta7le. Not trading on N; das is the 7est o*tion= 7ut latel , ha%e 7een ignoring the ne6s releases in fa%or of thefactored in alread4 a**roach 6here , ?ust acce*t that the mar/et4 has alread factored in4the ne6s and 6hat it *ro7a7l 6ill 7e. !ith such high *ro7a7ilit entries and short $Ls Ne6sis much less of a concern to me latel.

Loc)ing in 8ro&its:

1. 9e cautious in mo%ing our $L too aggressi%el= 7ut /ee* it no farther 7ac/ than the 7ottom orto* of the second 7ar 7ac/ from current *rice action and *refera7l no farther 7ac/ than the last 7ar 7ottom or to*.

2. ,f ou ha%e an e<tremel large 7ar= mo%e the $L to the ?ust 7elo6 the last (ound Num7er4 it *assed land 6atch *rice mo%ement %er closel. ,f it hasn't et *assed a (ound Num7er le%el=mo%e to slightl less than ) of the 7ar's total and 6ait. ,t 6ill either continue to e<*lode or



retrace *rett ra*idl and ta/e out our sto*. LA(G# 9A($ ";T#N (#T(AC# R-,CJL= sodon't hesitate to ta/e our *i*s 7efore it hits the $L ou are trailing AND -$# T+# roundnum7er4 le%els (emem7er= the total goal e%er da is ) *i*s T"TAL 7oth *ositions or3= N"T huge *i*s counts.

3. ,f a large 7ar dead ends4 at a stronger #MA= or a round num7er4 le%el= mo%e our $L %erclose to the le%el. ro7a7l a7out 2 times $*read or less and 6ait. ,f the mo%e is strong= it 6ill

continue and 7lo6 through *rett uic/. ,f not it 6ill ta/e out our sto*.

5anging< Consolidating 1ar)ets: NOT NECEA5+ 4O5 LA53E 3AIN!

1. The 5) #MA@ 35 $MA Lines ha%e a strong tendenc to either 6ind4 around each other or offlattening4 6hile stic/ing close to each other during a *eriod of consolidation or ranging. "nranging4 das ou 6ill often see *rice also 6ind around them and gi%e ou definiteo**ortunities to enter at solid $@( le%els or at (ound Num7er le%els on either side of the 5)#MA@ 35 $MA Lines.

2. 9e %er cautious in these mar/ets unless ou are e<*erienced 6ith this strateg. !ait for 7ettersignals if not e<*erienced.

3. M"$T of our entries in a ranging4 mar/et 6ill 7e against the 1) #MA and the mo%e to 9#M-$T ha**en immediatel after the first *osition is closed at the T of 1) *i*s NO

ECE8TION!

Com.ounding:

,ncrease our ris/ once a da at the most. Ne%er more than that and use onl 2 *er trade *osition=ne%er more. ,f ou increase the ris/ le%el slo6l= and continue mastering The Dance4 ou can gaine<tremel large amounts of mone o%er the long haul. Tring to com*ound an faster is greed and 6ill/ill our trading and our account.



T?E CA5DINAL 5,LE:

D" N"T #NT#( -NL#$$ T+# CANDL# ,$ T"-C+,NG

A L,N# T+,$ A$$-(#$ T+# L"!#$T (,$J "$$,9L#"N T+# T(AD# AND T+# R-,CJ#$T M"I# T" 9#!,T+ (";,T$

A word about #&latlined% areas"

There are some 6ho tal/ed a7out flatlined4 areas as *resenting good trading o**ortunities as *riceesta7lishes a channel4 of sorts 6ith a high a7o%e and a lo6 7elo6 the 35@5) lines. !hile this does

ha**en= and in other strategies 6here 7rea/ outs are used= it 6ould 7e a great *lace to loo/ for 7rea/outs= The Dance D"#$ N"T use 7rea/outs and tring to use them 6hen ou are starting out 6illonl confuse ou. Lea%e them alone until ou ha%e lots and lots of e<*erience. The reuire M-C+larger $L settings than The Dance uses.



Trade Chec)list

The follo6ing chec/list is intended to assist ou in ma/ing trade entr decisions. ,t is not the holgrail4 of this strateg= merel a good tool to hel* ou slo6 do6n and analEe the trade a 7it lessemotionall. The $coring4 is still under de%elo*ment= so use good ?udgment

Additional Considerations and De&initions

Additional Considerations: Things to learn as ou *rogress and definitions of terms used in thismanual.

Currencies:1. Though this document used the G7*@-sd and the #ur@H*= an set of currencies ou are

comforta7le trading is acce*ta7le. refera7l one 6ith lo6er s*reads and certainl nothing 6ith

10 EMA Trades Scoring

Very Steep ? Yes +2 No -1

Less Steep ? Yes +1

Flattening !ori"ontal ? Yes -# No +1

$ne %ar &ace %ac' ? Yes +1 No -1

T(o %ar &ace %ac' ? Yes +1 No -1

More T)an 2 %ars ? Yes -#

First *ll %ac' ? Yes +2

Second *ll %ac' ? Yes +1

T)ird *ll %ac' ? Yes -2

Total

, t)e total is less t)an #. pass on t)e trade /

#0 Trades Scoring

Very Steep ? Yes +2 No -1

Less Steep ? Yes +1

Flattening !ori"ontal ? Yes -# No +1

$ne %ar &ace %ac' ? Yes +2 No -1

T(o %ar &ace %ac' ? Yes +1 No -1

More T)an 2 %ars ? Yes -#

First *ll %ac' ? Yes +2

Second *ll %ac' ? Yes +1

T)ird *ll %ac' ? Yes -2

*arallel and angled ? Yes +1

idely Spread? Yes -1

Total

, t)e total is less t)an #. pass on t)e trade /



a s*read o%er 5. The larger the s*read= the more the trade must mo%e 7efore ou reach 9#.That increases our ris/ *er trade.

2. -se onl t6o currencies during the learning *hase. ou ma increase the num7er as ou see fitas ou gain more e<*erience. 9ut 7e sure to /ee* our screen and charts clean4 so ou can seeclearl as @A de%elo*s.

News: TA+ O,T!1. D" N"T trade during Ne6s unless ou are alread in a G""D trade and ha%e loc/ed in *rofitsalread.

2. ,f ou are alread ,N a trade during the half hour 7efore Ne6s= AND in good *rofits 6ith someloc/ed in= ou might sta in and tighten our sto* loss 7ut 7e careful. N" $L is guaranteedduring ne6s.

3. ,f ou are N"T in a trade 3) minutes *rior to ne6s= !A,T for the ne6s and then !A,T forrice to settle do6n4 a 7it 7efore ou ta/e a trade. That can 7e as little as 5 minutes after thene6s= or as long as 3). D"N'T (-$+ ,T

;a/eFouts:1. M"$T fa/eouts occur 7ecause of a %iolation one of the rules for entering a trade. D" N"T

I,"LAT# T+# #NT(= T,M#= $ession@Currenc correlations "( T,M# ;(AM# (-L#$2. ,n addition= this is the *ur*ose of mo%ing the $L to 9# A$A This strateg *ro%ides 6a

more than enough o**ortunities to trade. A%oiding the Loss is M"(# im*ortant than catchingthe good mo%es= ?ust don't let fear4 get to ou.

3. ;a/eFouts usuall occur around le%els of resistance= such as the lo6er #MAs 6hen the a**earto 7e counter trend and close to (ound Num7ers 6here *rice is slo6ing= so ?ust 6atch out forthem.

. D"N'T ;"(C# A T(AD# !ait for a *erfect setu* and $T## MA angles to enter5. N#I#( ta/e a *rice action 7ar counterFtrend 7 it's self. ,t M-$T also meet all other criteria=

such as a**earing at a $@( le%el= a 7ounce off an MA or round num7er= or a**ear A;T#( asignificant mo%e a6a from the 5) #MA@ 35 $MA Lines= often the need another confirming 7ar= or for the area to 7e *re%iousl *ro%en as an $@( le%el.

Definitions: Definitions are used on the charts in discussion of rice Mo%ement.1. 5ound Numbers4 are the lines of $@( dra6n on the charts at areas of significance such as

the .)) and .5) le%els.2. =ounce4 is 6here a candle hits and retreats at least 1 *i* from an area of $u**ort@ (esistance.

1. Almost al6as indicates a re%ersal= e%en if it is onl a fe6 *i*s if it is also a dead end4 at around num7er or a stronger MA such as the 5) #MA@ 35 $MA Lines.

3. Dead End4 is 6here a candle sto*s dead4 at a le%el of $u**ort@ (esistance 6ith no 6ic/through it.1. Almost al6as indicates a re%ersal= e%en if it is onl a fe6 *i*s.

. Constrainment is 6here @A is limited 7 and res*ecting a *articular le%el of resistance suchas one of the MAs or a round num7er4 for more than one 7ar= es*eciall if there are se%eralsmaller 7ars in%ol%ed. "ften it is a confluence of more than one MA or MA round num7er.1. Almost al6as indicates a direction of mo%ement= usuall a continuation of an e<isting

Trend "f The Moment.2. The most *o6erful entries are 6hen rice is Constrained in one direction after a significant

*eriod of 7eing ;lat lined4 and the entr is ta/en off one of the stronger MAs.5. Trend4 is the URRE!T direction of rice a7o%e or 7elo6 the 5) #MA@ 35 $MA Lines and it



can change se%eral times in a da.1. Ne%er %iolate the (ules of the Trend "( Counter Trend on #ntries

&. Counter Trend4 is the re%ersal of an immediatel *re%ious Trend. ,t is almost al6as *receded 7 either a fairl strong mo%e ) *i*s or more follo6ed 7 a *eriod ofconstrainment4 of *rice at a $@( le%el and then a re%ersal of *rice 6hich ma also 7e aconstrainment4 of *rice 7 a one of the lo6er #MAs and a round num7er le%el in the o**osite

direction.1. M"$T counter trend4 trade setu*s 6ill occur A;T#( *rice has mo%ed a fairl long 6asfrom the 5) #MA@ 35 $MA Lines= usuall o%er ) *i*s.

. Con&luence4 is 6here more than one $@( indicator has merged or met at a s*ecific *oint onthe chart. -suall it is a round num7er4 and a le%el of *rior resistance from @A. ,t can also 7e6here more than one MA has 7unched u* against each other and ma include a round num7eras 6ell. These are G(#AT Areas to ta/e a 7ounce4 or continuation4 trades.

. 5eGTest4 is 6here rice has alread mo%ed *ast a $@( le%el and then retraced to that samele%el AND is re?ected there.

0. Clear =rea) 4 is 6here rice ma/es a thrust through a $@( le%el that is significant=4 usuallmeaning se%eral *i*s.

1). 4irst Touch4 trades are 6here *rice hits either a round num7er4 le%el or an MA that has heldas $@( strongl 7efore and ou trade ,MM#D,AT#L in the o**osite direction mo%ing to 9#as uic/l as *ossi7le to ma<imiEe the trade. "ften these trades are good for uite a 7it of *i*s= 7ut ?ust as often the are onl good for a7out 12 to 2) *i*s= so 6atch them closel for the e<it.1. T+# 9#$T ;,($T T"-C+4 trades are al6as at the 35 $MA and can 7e on AN of the

four time frames 6e loo/ at for fine tuning our entries. The higher the time frame is= themore significant the touch4 6ill 7e in indicating a re%ersal.

11. 4lat Lined4 is 6hen rice mo%es in an e<tremel narro6 range= usuall less than 2) or 3) *i*su* or do6n total. D" N"T T(AD# this area of chart acti%it. The onl e<ce*tion to this is if *rice is 6inding around the 5) #MA@ 35 $MA Lines in a 6ide enough range of at least 5) *i*sto gi%e ou room4 for a trade at the $@( le%els.

12. 1oing Aerage ou.4 or 1A ou."4 This is an area 6here the #MAs are all 7unched u*together= usuall also stuc/4 7et6een or %er close to the 5) #MA@ 35 $MA Lines anddemonstrate no direction for a trade. This is a $TA "-T4 area= do not trade it. "ften thelo6er #MAs get stuc/4 7et6een a stronger MA and a round num7er le%el.

13. 8rice Tra.4 is 6hen *rice is stuc/4 or tra**ed4 7et6een t6o or more areas of $@( asmar/ed 7 the (ound Num7ers4 or one of the stronger MAs 6ith a le%el of $@( indicated 7 *rior @A. Normall ha**ens 7et6een the 35 $MA and the 5) #MA on M15 or +1. 9rea/outstend to 7e e<*losi%e.

1. Wic)ed4 *ronounced 6ict4 is an area of the chart 6here rice 7ars ha%e 6ic/s4e%er6here on 7oth sides and it's starting to loo/ li/e a *orcu*ine. D" N"T T(AD# T+,$A(#A= !A,T for *rice to settle do6n= or to start to trend 7efore e%en considering a currencli/e this.

15. CO=4 is Close of 9ar.41&. Washed Out4 A *rior $@( le%el re*resented 7 a MA or a round num7er 7ecomes 6ashed

out4 and not immediatel usa7le as $@( 6hen *rice has crossed it and reFcrossed it se%eral timesin the immediate *ast on the chart. !ashed "ut4 $@( le%els should 7e ignored in this strateg= 7ut the 7ecome %alid again %er= %er uic/l.

1. Wic) Through4 is 6hen *rice hits a le%el of $@( and *ushed through it 7ut closes on the sideof the original mo%e. The Longer the 6ic/= the more cautious ou should 7e a7out a trade here.

1. Wic) O&& 4 is 6hen a candle hits a $@( le%el= then retraces from it as in the case of a *in4 7ar.



A 6ic/ off4 is also a re?ection4 of *rice at that le%el of $@( and often indicates either acontinuation of the original Trend4 or a re%ersal of it= de*ending on 6here this ha**ens.

10. 8orcu.ine4 is an area of *rice 6here there are lots of fairl long 6ic/s on 7oth sides of thecandles. "ften the candles ha%e 6ic/s on 7oth side of a single candle. TA+ O,T AND DO

NOT T5ADE T?E 8O5C,8INE"

2). Tri.le To.4 or Double To.4 is 6here t6o or more candles hit and sto* at #BACTL the

same *rice *oint on a chart one right after another. Tri.le =ottoms4 and Double =ottoms4are the same. ou ma use the standard definition as 6ell= 7ut for this strateg= 6e are loo/ingfor immediate *rice action= $"M#T,M#$ cou*led 6ith *rior @A. These often occur at a Trendof the Moment continuation= or a reFtest on a re%ersal.

21. <5 Leels are most clearl %isi7le 7 loo/ing at the recent *ast on the chart and using the 7id@as/ lines to see4 them more clearl. ou ma also Eoom 6a out to see and mar/ one ort6o from the *ast t6o das at the a7solute most. D" N"T clutter u* our charts 6ith lots of$@( Le%els

22. EFhaustion bars and Huat =ars are %er small 7ars that are usuall found at the turning *ointin a trend or a s6ing 6ithin a trend. -suall the are %er fe6 *i*s= *ro7a7l no more thana7out 5 to 1) total. , also call these tin 7ars4 in that the can often 7e e%en less and loo/e<actl li/e a *in4 or a do?i. !hen there is a cluster of these tin 7ars4 7eing constrained 7one of the higher Mo%ing A%erages= the 35@ 5) lines= the almost al6as indicate a fairl largemo%e in the direction of the constrainment. The are %er solid indicators of *rice re%ersals.

,n later sections 6e tal/ of @A and ho6 to ta/e ad%antage of it on M15= es*eciall 6ith a 7ounce offone of the (ound Num7ers and stronger MAs. $tandard @A 7ars such as in 7ars= Do?is= $*inningTo*s= +ammers@ +anging Man and "utside 9ars 6or/ ?ust fine on M15= ?ust don't hang our hatcom*letel on them alone. There must 7e confirmation of some sort for each @A 7ar used. The Trend"f The Moment as defined 7 the Mo%ing A%erages and *rior @A *ro%ide that confirmation.

Additional 5esources:

,f ou a7solutel must read more= here are some great threads on ;ore<;actor.com.

Hames1& rice Action Thread. huge thread htt*:@@666.fore<factor.com@sho6thread.*h*Kt2331

Hac/o's ;ore< +ouse of leasure and ain trend trading= also a huge threadhtt*:@@666.fore<factor.com@sho6thread.*h*Kt22&

No 9rainer Trades su**ort and resistance trading htt*:@@666.fore<factor.com@sho6thread.*h*Kt&20

Trade !hat ou $ee= Not !hat ou #<*ect the ma/e huge *i*s here= 7ut a 7it com*licated for mtaste. htt*:@@666.fore<factor.com@sho6thread.*h*Kt121&1

There are more= 7ut 6h confuse ourself 6ith them 6hen the sim*lest strategies are al6as the 7estKThese resources should 7e all ou need.

ou ma also read m original thread at ;ore<;actor= and , a*ologiEe in ad%ance for the 6a it ended6ith false accusations from a 7unch of Neanderthals and an idiot site admin 6ho ne%er chec/ed out aninformation= ?ust 6ent along 6ith his cronies accusing me of 7eing some one ,'m not.













This manual and the 7asic strateg is free for all to use and change= ada*t or modif as the see fit tohel* them master their trading. No mone is or has e%er 7een as/ed for it= e<ce*t 7 some fraudster on#7a from an eastern #uro*ean countr. The strateg is and al6as has 7een and al6as 6ill 7e ;(##to all.



,sing 8rice Action

rice Action is used in t6o 6as in this strateg. ;irst are the normal @A 7ars descri7ed immediatel 7elo6= 6hich can 7e used on an time frame= 7ut here 6e are interested onl in the M15 charts.

rice action is the most relia7le of all indicators in determining momentum and direction in trading.rice action can indicate relia7l *rice re%ersals and continuations. All other indicators are 7ased on *rice action in some form. ,n this strateg 6e 6ill 7e loo/ing *rimaril at a fe6 standard rice Actionsetu*s to assist us in filtering the mo%es 6e ta/e. Hust /ee* in mind that on M15 @A though %erstrong= can turn literall on a dime and gi%e ou change.

The first 7ars 6e loo/ for are in 9ars and Do?i 9ars= that are accordin" to our definition= then ,nside9ars= and "utside 9ars= in that order= 7 the 6a. These are the *rimar indicators 6e 6ill 7e loo/ingfor to determine most entries. L""J ;"( T+# @A The Mo%ing A%erages are for determining if the@A is %alid for a trade. ou must ha%e 9oth @A in the right direction of the trend and a 7ounce or

constrainment for a trade to 7e %alid

OUR #E$%!%T%O! O$ &%! BAR'

in 9ars and Do?i 9ars are Candlestic/ 7ars 6hose 7od4 is both inside and smaller than the bod$

o& the .receding bar and ha%e a longer u**er 6ic/4 than lo6er 6ic/.4 "ften these 7ars are %ersmall. ,n addition= it has an area 6ith room4 around it on all sides= meaning that there is lots of em*tchart s*ace immediatel to the *ast4 of the 7ar.

Loo/ at the *receding charts as 6ell as the ones that follo6 and ou can see lots of them at the turning *oints. 9# #BT(#M#L CA(#;-L of trades using *in 7ars4 that are not e<actl *er this definition

here.

The follo6ing are images of some of the more common %ersions of rice Action as the a**ear in realcharts.

8in =ars:

These are 7ars %er similar to the Do?i= e<ce*t that the o*en and close are at different *rices. Thecorrect in 9ar for our *ur*oses is one where the bod$ o& the 8in is inside the bod$ o& the .reious

bar as seen 7elo6.

Most often the 7est trades ha%e the 7od of the signal in 9ar closer to the to* of the *re%ious 7ar asseen here 7elo6 and are fairl short candles o%er all. "ften the are less than 1) *i*s.



The last image is included to demonstrate that in 7ars ma come in multi*les. 9e sure that 6henentering on a in 7ar that it agrees 6ith the Trend or a 7ounce in direction of the trend. "ne could ha%eentered on either of the t6o do6n6ard *ointing red *in 7ars in the last image. "ften these t*es ofrice Action occur at or %er= %er close to one of the (ound Num7ers4 and the larger Mo%ingA%erages.

Do;i 8rice Action =ars:

Do?i 9ars also ha%e the feature of not reall ha%ing a 7od4 7ecause the o*en and close of the 9ar4ha**ens at the e<act same *rice le%el. The follo6ing are *ictures of some in 9ars4 according to ourdefinition of them. The second 7ar is the Do?i. -suall rice continues the o**osite direction of theDo?i. $ome sa ou should ta/e a Do?i entr at the to* 6ithout uestion= 7ut 6ait for confirmation ofthe second 7ar closing at the 7ottom. This strateg agrees 6ith that statement. !ait on 7ottom Do?i 7ars for confirmation 7ars.

Inside =ars:

,nside 7ars are often referred to as suat4 7ars. The al6as are contained 6ithin the 7od of the *re%ious 7ar. The second or third 7ar is the ,nside 9ar or ,9.

Outside =ars:

These are 7ars that com*letel engulf the *re%ious 7ar. The second or third 7ar is the "utside 9ar= or"9. ,t should 7e o7%ious.

rice Action 9ars are N#I#( used alone to enter a trade unless ou ha%e lots of e<*erience 6ith this



strateg. The M-$T 7e confirmed 7 either resistance le%els at a (ound Num7er=4 7 resistance asseen 7 *rior @A= a mo%ing a%erage= or 7 additional candles in the right4 direction.

Double To.s and Double =ottoms:

The terms dou7le to*4 and dou7le 7ottom4 has a %er different meaning in this strateg. ou can still

loo/ for the normal4 dou7le to*s and 7ottoms 6here *rice has mo%ed to6ard and a6a form an areaof su**ort and resistance o%er a *eriod of se%eral 7ars= 7ut for our *ur*oses in this strateg 6e 6illfurther define it as t6o 7ars 6hich ha%e eFactl$ the same to* or 7ottom. ,f the 7ars are also the samelength= it can define an entr *oint or an e<it *oint de*ending on it's location on the chart. 9oth 7arsM-$T ha%e the same #BACT to* or 7ottom= 7ut the can 7e different in ho6 the achie%e that.

;or e<am*le= in the images 7elo6 ou 6ill see some that are 7oth 6ic/ed to*s or 7ottoms= some thatare 7oth 7od to*s or 7ottoms and some that are one of a 7od and one of a 6ic/. ,t is the fact that theare #BACTL the same *rice *oint that tends to indicate the re%ersal of *rice.

Ma/e sure the signal also agrees 6ith the trend and 6ith the Mo%ing a%erages to achie%e the 7estresults.

The follo6ing are dou7le to* and dou7le 7ottoms signals. $ee if ou can find the one not mar/ed.



Dou7le to* and dou7le 7ottom 7ar sets almost al6as signal either an entr or an e<it *oint. As long asou are follo6ing the rules of trading !,T+ the trend of the moment= and the (ules of the mo%inga%erages ou should 7e fine. $till= this does ta/e some *ractice to master.

DO NOT TAE A DO,=LE TO8<=OTTO1 I3NAL T?AT CONT5ADICT T?E T5END

O4 T?E 1O1ENT!!!!!!!

8rice Constrainment:

,n our strateg= 6e also use rice Constrainment4 trades 7ased on rice Action 6here rice isconstrained4 7 a $u**ort@(esistance le%el. These le%els4 can 7e either a Mo%ing A%erage= aclassical horiEontal line of $@(= or and this is the stronger of them an area 6here rice is constrained 7 one of the stronger mo%ing a%erages= such as the 35 $MA or the 5) #MA. This also 6or/s 6ith the(ound Num7ers4 le%els %er 6ell and often indicates either a strong continuation trade= or an

u*coming re%ersal signal.

The follo6ing images are 6here *rice is Constrained 7 either the 5= 1) or 5) #MAs. a s*ecificattention to those areas in the images 6here the Mo%ing A%erage constrainment is also accom*anied 7(ound Num7er constrainment. Those areas of constrainment confluence4 and those around the 5)#MA are the strongest entries in the 6hole strateg 6e use here and the easiest to see.



Loo/ing for e<haustion 7ars4 at areas of constrainment is an e<tremel strong entr tactic. ,t allo6sfor an entr 6ith an e<tremel small $to* Loss= often less than or 0 *i*s= and also indicates a strongmo%e in the direction of the constrainment that= as ou can see is often good for 2) or more *i*s on themo%e. , am sure ou can see ?ust ho6 *o6erful this constrainment4 t*e of entr is. The a7o%eimages sho6 some trades 6here there 6ere se%eral of the %er small e<haustion4 7ars and an of them6ould ha%e 7een a good entr *oint.

Additionall= often the candle 6ill 6ic/ off4 of a round num7er4 and the 7od 6ill 7e constrained 7the Mo%ing A%erage. $ometimes *rice 6ill also 6ic/ off4 of a higher MA and the 7od 7e constrained 7 a lo6er MA. ,n 7oth cases T+AT ,$ C"N;,(MAT,"N ,N "N# 9A( of the momentum of thetrade as a continuation trade. ,n some instances it also indicates a re%ersal area to 6atch for an entr. ,nthese areas there 6ill 7e times= as ou get more e<*erienced 6ith this strateg and using the Mo%ingA%erages 6ith the (ound Num7ers= 6here ou 6ill 7e a7le to enter on the touch4 of a le%el or aMo%ing a%erage= further increasing the %alue of the trade.

That= ho6e%er ta/es a 7it of e<*erience. At first= ou should concentrate "NL on seeing4 the tradesthat are constrained4 in a *articular direction 7 a C"N;L-#NC# of the Mo%ing A%erages and theLe%els as the are the strongest.

"ften @A li/e sho6n in this section is used more for finding e<it *oints than entries in this strateg=es*eciall if the ha**en at or %er close to a (ound Num7er. ;or the most *art= stic/ toConstrainment4 and Touch Traces=4 ou'll ha%e a lot more success.

NOTE: All good constrainment trades hae 1O5E than two and o&ten more than three er$

small bars in the beginning o& them! Loo) at the iFth2 Eighth and Ninth images in the image

series aboe &or both 1A reall$ strong #lower 1A% constrainment trade entries" The others o&&



the 0B are stronger2 but sometimes a little more di&&icult to see &or a beginner" #TO,C?

T5ADE% are ONL+ ta)en i& the$ ha..en with NO 1O5E than two bars to #get there"%



Chart etu.: 1etatrader

,n this strateg there is onl "N# chart setu*. Three Mo%ing a%erages= a 7ar cloc/ 6ith s*read= a cloc/to indicate mar/et times and a (ound Num7ers4 indicator. There are three time frames used for eachcurrenc= t6o of them used onl for confirmation of Trend and the other for fine tuning entries. TheMo%ing A%erages are for trend determination= as 6ell as to indicate a floating le%el of $u**ort and(esistance. The (ound Num7ers indicator *laces light lines on the chart to sho6 areas of *schological im*ortance for most traders and the Candle Timer is to hel* ou in *in*ointing the closeof candles for entries. The 1) #MA= the 35 $MA and 5) #MA are use as floating $u**ort and(esistance Le%els and to sho6 areas of Constrainment=4 Confluence4 *oints for $@( and Trend ofthe Moment for determining entries and e<its.. The 5) #MA dictates 6hether ou 6ill 7e loo/ing forlong or short trades.

Adding an more to the charts 6ill onl ser%e to com*licate the issue and o*en the door to confusionand additional o**ortunities for mista/es.

9elo6 is an image of the G7*@-sd chart and one from the #ur@H* from a normal da's trading. ou

can see that it uite literall is at the end of the chart= not cherr *ic/ed.

Notice ho6 rice res*ects the round num7er le%els as 6ell as the stronger #MAs on the chartK ,t ises*eciall a**arent on the #ur@H* chart a7o%e. Most of the time= 6hen ou see a re%ersal= it ha**enedat the 5) #MA= a confluence of Mo%ing A%erages or at one of the round num7er le%els. The charta7o%e is clear e%idence of that.

This 6or/s on all time frames on all currencies= 7ut for our *ur*oses though= 6e 6ill 7e referring



e<clusi%el to the M15 charts= these Mo%ing A%erages= and the (ound Num7er Le%els.4

As ou can see= 6ith this strateg there are lots of o**ortunities to trade and to trade successfull.

Tem*late -sed: ,n this strateg includes tem*late titled The Dance.4 Thro6 it on a chart and ha%efun. ,t reall ,$ T+AT $,ML#. J## ,T T+AT !A

Don't go getting fanc 6ith AN other indicators= the ?ust com*licate things. ,f ou 6ant to dra6 the *re%ious da's high resistance of lo6 su**ort that's fine= ?ust don't clutter u* the charts 9-T#$#C,ALL AI",D "$C,LLAT"($= the 6ill lie to ou 6aaaaaaa to often.

,ndicators -sed: 1) #MA= 35 $MA= 5) #MA Mo%ing A%erages= (ound Num7ers 9eige= Candle Time8 $*read= Cloc/ and N"T+,NG M"(#

D" N"T -$# "$C,LLAT"($= the 6ill onl confuse ou and cloud the rice Action signals gi%en



Ta)ing The Trade!

M15 is not onl a great chart to trade on= it's a fa7ulous teacher. ,f ou miss a trade= 7e *atient and ou

6ill get another shot in a little 6hile , ha%e *ersonall had das 6ith se%eral *otential trades=6atching onl a cou*le of currencies.

The follo6ing M15 chart illustrates that e<act *oint %er 6ell. The areas circled indicate *otentialtrades o%er a t6o da *eriod. Notice that trades around the 5) #MA@ 35 $MA Lines are *articularlstrong trades 6hen the also are used !,T+ the trend= 6ith constrainment or @A 7ars

#%er area circled in the chart a7o%e indicates a *erfect 7 the rules4 *otential entr. Thro6 thetem*late on a chart and scroll 7ac/. ,t should 7e as *lain as the nose on our face ho6 this strateg6or/s. J## ,T T+,$ $,ML#= or don't trade

"nce ou enter= mo%e to 9# as soon as *ossi7le 6ithout /illing the trade. ,t 6ill ta/e some time and6or/ to get good at this= 7ut it's 7etter to lose some at the 7eginning at 9# 1 than to ta/e lots oflosses. ,; ou do ta/e losses= Not e%en one of them should 7e more than 11 or so *i*s= #I#(

-sing rice Action= the 5) MA@ 35 $MA Lines= the 5@1) #MAs and the (ound Num7er le%els to ta/e7ounce4 trades against is an e<tremel a6esome strateg 6ith lots of o**ortunities for trading= as oucan see.



;inding entries on those das 6hen *rice does 6hat , call a slo6 7urn4 in a %er= %er slo6 trendingmo%ement can 7e challenging to sa the least. "n those das= this strateg hel*s a lot. Loo/ for high *ercentage entries against the stronger #MAs and then ?ust stic/ 6ith it as long as it does not re%erse.+ere are some trade *otentials circled on an #ur@H* chart from the recent *ast.

Notice that as ou gain e<*erience= ou 6ill 7e a7le to ta/e some first touch4 entries off the 5)



The Constrainment Trade

The Constrainment Trade can ha**en against an of the three Mo%ing A%erages in this $trateg. T+#$T("NG#$T of them are al6as ta/en against the 35 $MA 6hen it and the 5) #MA are literall onto*4 of each other and the 1) is on the side the are '7ending' to6ard. -suall rice 6ill sort of7ounce along4 the 35 for se%eral 7ars= at least three 7efore ou ta/e the trade. ,t can ha**en againstthe 1) #MA as 6ell 7ut these trades are a little 6ea/er4 and ou need to /ee* an ee on them untilou get some *i*s loc/ed in from one.

Constrainment trades often ield 3) to 1)) *i*s or more= so 7e sure not to cho/e it out earl. 9elo6 aresome images ta/en from random areas of recent chart acti%it. ,f ou scroll 7ac/ ou 6ill see lots andlots of e<am*les of this sort of constrainment 6here entries 6ere not onl *ossi7le= 7ut 6here the tradesalso ielded large gains. Jee* in mind that solid constrainment trades are not as common as Touch4trades.



The AAA #Touch% Trade Entr$

Touch Trades4 are almost as strong as the Constrainment4 entries. The are a 7it harder to catch4 asthe can ha**en e<tremel uic/l 7ut the gains are normall reall good and ha**en reall fast.(emem7er in Touch Trades4 to *a $T(,CT attention to the T!" 9A( (-L#. ,f ou don't= ou'llget 7it 6a more often that is necessar. Also remem7er that on Touch4 trades the $L is N#I#(more than 11 *i*s.

+ere are the criteria for strong touch4 trades.

(B E1A #Touch Trades% on 1(0 Charts:

1. Must 7e at a %er stee*4 angle of a7out 5 degrees= or more. Less of an angle 6ea/ens thetrade.

2. N" M"(# than t6o 7ars to get there.4

3. $to* loss is N" M"(# than 12 *i*s #I#(.

. Confluence of an +1 MA strengthens the signal.

-0< 0B Line #Touch Trades% on 1(0 Charts:

1. A reasona7l stee* angle of a7out 2) degrees or more= "( 7oth lines on to*4 of each other.+a%ing 7oth ha**en is %er strong.

5. $to* loss is N" M"(# than 12 *i*s #I#(.

&. Confluence of an +1 MA strengthens the signal.

9elo6 are some e<am*les of the Touch Trade4 entries. This one is off the 35@5) lines 6hen on to*4of each other.



This one is off the 1) #MA 6hen at a stee* angle. ,t a**ro<imates a 5 degree angle and , use therectangle tool4 of MT to create the 7o<.4

-sing the Angle Tool4 in MT for Touch Trades.4

,n the line studies4 menu of MT there is a trendFline 7 angle4 tool that can 7e accesses as seen

7elo6.



!hen used on the charts= it creates a trendFline 6ith an area 6here ou can see the angle4 of the lineli/e seen 7elo6.



ou sim*l select the tool= then clic/ the chart at the *oint 6here ou 6ant to start to measure the anglethen drag it across the chart for a little 7it so the lines and the angle a**ear. ,f it is an u*6ard mo%e= theangle 6ill a**ear in a normal 6a 7ut if it is a do6n6ard mo%e= then ou ha%e to do a little mentalmath to get the angle.

,n the e<am*le a7o%e= the angle on the chart is 311. degrees. (emem7ering there are 3&) degrees in acircle= 6e then su7tract this num7er from 3&) to find that 6e ha%e an angle of .3 degrees. Thismeans that a Touch4 of the 35 at this *oint is more than li/el a good short entr as a touch trade.4

ou 6ould do *recisel the same for the 5) #MA and the 1) #MA. Jee* in mind the 6hole *oint is tomeasure4 the *otential strength of a 7ounce from a touch4 and nothing more. Jee* it sim*le. The

shar*er the angle= the stronger the trade. -nder 2) degrees angle= , 6ould *ro7a7l *ass on a 1) #MATouch= and under 15 degrees on a 35@5) trade.

"nce ou let go of it it should sta highlighted so ou can hit the delete4 7utton on the /e 7oars andget rid of it. "nce ou ha%e measured the angle= ou don't need it anmore cluttering u* our charts.

NOW= measure the line W?E5E IT I= not from 6here the mo%e started or ou 6ill get a falsereading on it's angle. ,f it has started to flatten4 out a 7it= then measure from the last fe6 7ars 6herethe flattening4 7egan.



Ne<t let me sho6 ou ho6 to customiEe4 our tool 7ar to ou don't ha%e to hunt4 for it 6hen ouneed it.

etting u. the Toolbar:

(ight clic/ on the tool 7ar and the menu to modif it a**ears. As seen here.

$elect CustomiEe4 from the list and this ne<t 6indo6 a**ears.

+ighlight the TrendFline 7 Angle4 selection then 6hen ou clic/ the ,nsert4 7utton it 6ill mo%e it tothe right side of the list. At that *oint ou can use the u*4 of Do6n4 7uttons to *lace it 6here ou6ant it in the list so it 6ill sho6 u* in the tool 7ar for eas access as seen 7elo6.



?ow To Let The 1ar)et #how It's ?and%

Most 6ho ha%e traded e%en a little 7it or researched a little 7it ha%e heard the term. let the mar/etsho6 it's hand.4 The su**osition is that once that has ha**ened= ou can ta/e a safe trade 6ith this ne6information. , struggled for a long time tring to figure out ?ust ho6 this ha**ens and 6hat it means.

,t's reall *rett sim*le. rice Action is the 7est indicator4 of the direction the mar/et 6ill mo%e. The *re%ious section descri7es some= 7ut 7 no means all of the 6as that rice Action can 7e used to6atch as the mar/et sho6s it's hand4 so ou can trade safel. #%en 6ith this arsenal of tools=sometimes= the mar/et 6ill sho6 it's hand4 then ?ust go the other 6a. ,t can 7e %er= %erschiEo*hrenic at times.

$till= 7 using *rice action ou can mitigate our ris/ on the entr e<tremel 6ell. There are sectionslater that e<*and on this to a great degree= e%en an additional *art of this manual that is a7out theThree Main Trades4 of the Dance $trateg.

+ere is a short %ersion of all this.

A in 9ar= at the to* or 7ottom of a %er long run of *rice mo%ement is a good 6a the mar/et sho6s

it's hand4 that *rice has e<hausted itself. "ften it is also *receded 7 *rogressi%el smaller 7ars in thedirection of the mo%ement. ,f *rice is also a**roaching a $@( le%el of a (ound Num7er= or a *lace6here rice re%ersed in the o**osite direction *re%iousl= or one of the Mo%ing A%erages used here=those things ALL can 7e used to determine if the mar/et is trul sho6ing it's hand4 to the trader 6hois attenti%e.

!hen *rice is constrained 7 one or another Mo%ing A%erage= (ound Num7er= $@( le%el or aconfluence of an of these= that is also ho6 the Mar/et sho6s it's hand4 to the trader.

Let's ta/e an e<am*le. Let's sa that *rice has ?ust dro**ed 5) *i*s going short and then retraces asmall amount= sa 25 *i*s and in the Dro* crossed the 35@5) lines fairl shar*l. ou might not ha%ehad an 6arning and might ha%e missed the entire mo%e. N"! though= *rice is in a retrace and heads

7ac/ to the 35@5) area. ,f it hits and starts to sort of 7ounce along4 one of these t6o main a%erages=that is constrainment and the mar/et demonstrating a resistance to going u* an further. T+,$ ,$ ALLT+# C"N;,(MAT,"N "- N##D at this *oint.

After a cou*le to ma7e 3 or 7ars li/e this= if ou ha%e not alread ta/en a trade 7ac/ in the originaldirection of the mo%ement of rice= short if it 6as short= long if it 6as long then ou ha%e *ro7a7lalread missed the 7est entr *oint. The mar/et's ina7ilit to cross 7ac/ through a $u**ort or(esistance Le%el= 6hate%er that ma 7e= is the mar/et sho6ing it's hand.4 ,f ou 6ait to long= it 6illmore than li/el= suddenl mo%e 1) to 2) *i*s the 6a it 6as sho6ing it's mo%e 6ould 7e= and ouha%e missed the trade's 7est entr if ou are not alread in the trade.

The Touch4 trades descri7ed in this strateg are much the same. The mar/et often 6ill hit4 or

touch4 a significant $@( le%el and then literall (-N4 a6a from it as much as 2) to 5) *i*s in oneor t6o 7ars. ,f ou are not e<*ecting that to ha**en= ou 6ill miss it e%er time until ou learn to trustit and use %er short sto* losses to ta/e ad%antage of it.

Learn the rice Action 7ars in this strateg. Learn the *o6er of the 35@5) lines= the (ound Num7ersand learn the *o6er of more traditional $@( *atterns as 6ell. Things li/e dou7le and tri*le tests= oftencalled dou7le to*s@ 7ottoms4 or tri*le to*s@ 7ottoms4 at an area of $@( can 7e e<tremel *o6erful andoften allo6 ou to ta/e 7asicall the e<act same trade a cou*le of times in a session for good *i* gains.



The %alue of learning ho6 *rice mo%es around the Mo%ing A%erages= (ound Num7ers and traditional$@( le%els cannot 7e e<aggerated. The more ou can see4 them= trust 6hat the mar/et is telling outhrough them= the more successful and the 6ealthier ou 6ill 7ecome in trading.

,n the rest of this manual 6e discuss the three main t*es of trades= 6e demonstrate 6hat the loo/ li/ein real time4 through the use of $creen ca*tures at the *oint of the trade and ?ust after at either themo%e to 9#= or the e<it from the trade.

-$# T+# $,M-LAT"( A L"T and *a attention to the e<am*les gi%en and ou 6ill do reall 6ell.ou ma e%en sur*rise ourself and master this strateg a lot faster than ou thin/.



8utting It All Together:

$creen $etu*4 or real estate4 is %er im*ortant in trading. "ne must 7e a7le to see at a glance46hether or not a trade is imminent or not and the direction it most li/el 6ill go. Most com*uter

screens are not large enough= and most sstems to not allo6 for multi*le monitors to allo6 one to seethe charts in the 7est *ossi7le fashion.

This manual 6as created using a 1 inch monitor= 6hich is *rett standard in toda's 6orld. $till= thatis *rett small 6hen ou need to see4 se%eral charts at a time. The ans6er to this dilemma is tostac/4 the chart 6indo6s.

The follo6ing is a screen shot of our setu* on Metatrader. ou 6ill notice that , onl monitor three orfour currencies at the moment. !ith a larger screen , 6ould *ro7a7l monitor more= 7ut , 6ant to seeCL#A(L the setu*s.

+"!#I#(= it is *ossi7le to trade onl "N# currenc and ma/e great *rofits and 7ecome e<tremelsuccessful. Ne%er underestimate the *o6er of sim*licit in this area as 6ell Learning the*ersonalit4 of a currenc is amaEingl *o6erful as 6ell.

ou 6ill notice that this setu* lea%es room for access to the $cri*ts4 area of Metatrader. , ha%edisco%ered that using $cri*ts to trade 6ith is much faster= more fle<i7le= and in short a lot easier to do.



#ntering a trade is as sim*le as dragging the a**ro*riate scri*t 7u or sell to the chart ou 6ant toe<ecute an order on and letting it dro*. The e<ecution should 7e a L"T faster than using the normalMT "rder interface. ou could also ?ust clic/ on the chart ou 6ant to e<ecute on then dou7le clic/ thescri*t ou 6ant to e<ecute. That 6or/s e%en faster.

The $cri*ts for 9u and $ell orders= ha%e *reset $L and T le%els. These scri*ts access a glo7al%aria7le *re%iousl set 7 the AS$etLot$iEe scri*t. , suggest setting our trade@ris/ once *er sessionat the 7eginning. That 6ill automaticall increment our trades for a 7it more aggressi%e com*ounding6ithout running the ris/s of instant com*ounding4 6hile trading.

There are other scri*ts for mo%ing 7oth 7 sim*l dragging the a**ro*riate $cri*t to the a**ro*riatechart and dro**ing it.

The $L or T scri*ts 6ill mo%e our $L or T to the e<act s*ot on the chart 6here ou dro* it.

There is e%en a 9# $cri*t for mo%ing to 9rea/ #%en to mitigate (is/ in a trade. !e tal/ a7out the$cri*ts later.



5e&ining the Entr$

-sing three charts on differing time frames for a single currenc is nothing ne6. Man do it. Thedifference 6ith this $trateg is that 6e do N"T change to different Mo%ing A%erages on the %arioustime frame charts. "nce ou get used to seeing the @A around the a%erages= it ?ust doesn't ma/e muchsense to me to change them. ,n addition= the 35 $MA is %er strong on all the charts

9elo6 are is an image from one of m trades. , ha%e mar/ed the $AM# time on t6o of the charts inthe grou*. "ne on M15= the larger chart= and one on M5= the smaller left side chart. (emem7er= thereason for three charts is so ou can see the o%erall recent trend on +1= start to choose our entr onM15= then refine it on M5 for the 7est *ossi7le entr and e<it. , don't use M5 much an more 7ut thissho6s the *rinci*le reall 6ell.

Notice that on 9"T+ of the lo6er time frame charts *rice 6as 7eing constrained4 7 the $AM##MAs. "n M15= there 6as a three 7ar area 6here a good entr could ha%e 7een made= 7ut on M5 thesame area 6as se%eral more 7ars. This all is ?ust added confirmation of the trade and should gi%e oumore confidence for an entr.

+o6e%er= once in the trade= it's 7est to manage it on M15 trailing our sto* loss on M15 7ars as it

eliminates the cho*4 that sha/e *eo*le out of other6ise strong trades. ,f ou had trailed the $L on M5=ou 6ould ha%e 7een sha/en out a cou*le of times. $tic/ to trailing the $L on M15= it 6ill greatlincrease our gains o%erall. This trade 6as ultimatel good for a7out ) *i*s.



This ne<t image sho6s the same *rinci*le 6ithout the use of the M5 chart. The trade 6as ta/en at theimmediate +1 Touch4 of the 35 and ga%e u* a7out ) *i*s as 6ell and ou can see on M15 6here ithit resistance.



A Word About Wic)s

!ic/s on candles are used lots of 6as in all sorts of $trategies. ,n The Dance4 6e use them onl forimmediate $@( le%els from the immediate *ast t6o or three das. Longer than that ?ust messes u* thecharts. -sing 6ic/s to set 7oth e<it le%els and entr le%els can 7e *rett *o6erful. Hust don't get toocarried a6a 6ith them and /ee* them sim*le and our charts clean or it gets confusing.

,f there are lots of 6ic/s on M15= use the +1 chart for the le%els ou need. ,f +1 is too cho**4 6ithtoo man 6ic/s= use D1. , seriousl dou7t D1 6ill e%er ha%e too man4 to mess 6ith ou.

9elo6 is a chart that sho6s 6hat , am tal/ing a7out. There is one from M15= then , Eoomed M15 outto and +1 chart to find a cou*le more le%els= and mar/ed them 7oth on +1 and M15 to ma/e themmore a**arent to ou= and e%en one on D1 ?ust for em*hasis. Trade these li/e a normal4 $@( Le%el=6hen the get there4 ta/e the trade and gi%e it no more than a 10 *i* $L. ,; the stall 6ithin a cou*leof *i*s= ta/e them and 6ait 6ith our $L li/e ou 6ould normall use it.

, don't recommend trading cho*4 7ut as in the chart 7elo6 6here there are clear $@( le%els= I#(close to the (ound Num7ers areas it can 7e acce*ta7le to ta/e the re%erse trade as if4 it touched on asecond candle. Hust 7e sure ou use a long enough $to* Loss so ou don't get ta/en out in the entr

candle.

#n?o



ta$ O,T!

As 6ith all strategies= there are areas to a%oid at all costs. As sim*le as this ma sound= it 6ill %astlincrease our *rofita7ilit and success rate.

1. N#I#( T(AD# a *rice action 7ar 7 it's self There M-$T 7e some sort of other reason forthe trade such as the 7ar occurring at a $u**ort or (esistance Le%el= a (ound Num7er=4 as a 7ounce off of a Mo%ing A%erage as a constrainment trade in a counter trend trade "NL after *rice has tra%eled a significant distance a6a from the 5) and 7oth turned 7elo6 and retested alo6er MA.

2. N#I#( ;"(C# a trade= 6ait *atientl for the *erfect4 setu*s found in this manual.3. N#I#( T(AD# if ou are not 1)) sure4 of the trade. 9ut at the same time= don't let fear

sto* our trading= ou must trade= ?ust 7e 1)) sure4 the trade fits the rules 7efore ou do.. Lastl= !E(ER TRA#E T)E &ORU&%!E* The orcu*ine4 is an area of *rice acti%it

6here the *rice 7ars ha%e lots of 6ic/s on 7oth sides of them= and those 6ic/s are significant4in siEe= meaning more than ?ust a fe6 *i*s. The orcu*ine4 is demonstrated in the e<am*les of

$ta "-T4 follo6ing this area of definition.

;a/eouts occur often in ;ore< Trading 7ut there are 6as to mitigate them. ;irst= D"N'T L#T (,C#;""L "- +ere are a fe6 e<am*les of 6hat , mean.

(#M#M9#(= , no longer use the M5= the line colors ha%e changed and , no longer use the *ur*le MA.



,n the a7o%e chart= the last area in the 7o< is 6here lots of fa/e outs4 ha**en. Things ma loo/ good= 7ut an entr in these areas 6ould %iolate the rules and lea%e ou %ulnera7le to indecision and manother 7ad things such as re%ersals that are too fast= e<tremel 6ide $L settings and more.

A%oiding the 7ad trades is ?ust as im*ortant as ma/ing the good ones. ,f ou are not sure4 of the trade=$TA "-T and 6ait for a 7etter setu*.



Trade 5is) 1anagement

5is) 1anagement:

(is/ is a *ersonal thing and it should 7e. No one can assess ris/ the same 6a ou do and no one

should. There are man 6ho sa ne%er to ris/ more than 2 on a trade= some sa 3 and , ha%e seentraders use as high as 2) on a trade. ,t all de*ends on our confidence le%el and ho6 much ou canafford to lose if ou do.

ersonall= trading 6ith 2 to 2 ris/ #( "$,T,"N is acce*ta7le to me. !hat that means is that if ,ta/e a *osition in one currenc= usuall it's no more than a 3 ris/ for that currenc. $ometimes= , ta/et6o *ositions in a currenc and that means that each *osition is 3 or & total ris/. $ometimes= , seereall good trades in multi*le currencies and , can mitigate ris/ 7 ta/ing a single *osition in more thanone currenc. As long as each *osition is no more than 2 to 3= , am *ersonall fine 6ith it.

M suggestion is that ou trade 6ith no more than 2 *er *osition to start learning and O!L+ one

currenc 6hen ou start. ou need some time to learn to trade The Dance and to learn the s*ecificcurrenc ou choose. All currencies ha%e a slightl different *ersonalit4 7ecause slightl differenttraders o%erall trade them.

Trade 1anagement:

Trade management is N"T the same as ris/4 management though it can greatl affect and eitherreduce or increase the ris/ of our trading. ;or e<am*le= if ou trade one lot= or one *osition= then ouneed to ha%e a 6a of trading that allo6s ou to loc/ in4 as far as that is *ossi7le= some *i*s earl onand then tr to let it run4 after that. ,t can 7e done= 7ut 6ith one *osition it's a 7it harder and some 7ro/ers 6ill not let ou scale4 out after the entr thus loc/ing in4 some *i*s earl on 7 actuall

ta/ing them ";; the ta7le 6hen ou do this.

The 9#$T 6a= in m hum7le o*inion is to ta/e t6o *ositions 6ith less ris/ each 6hen trading and e<itthe first *osition at some *oint 6here ou ha%e made a solid gain= then mo%e the $L to 9# and let thelast *osition run4 and trail the $L 7 the rules.4 to ma<imiEe the last *osition and our trade.

The scri*ts included in this strateg 6ill o*en T!" *ositions each 6ith 1.5 ris/ for a total of 3o%erall. The first *osition 6ill ha%e a ta/e *rofit4 set for 15 *i*s and the second one for a7out 1))=6hich ou can increase 6ith other T scri*t if it's reall running4 hard our 6a.

D" N"T change this 6hile ou are learning. Ta/ing some of the *i*s earl is #BT(#M#L *o6erful.

,t all 7ut guarantees 6inning trades= ,; ou follo6 the rules to the letter= AND mitigates or eliminatesmost of the ris/ of the trades ta/en. ,n addition= it allo6 ou to let it run4 as ou ha%e heard so mantimes and *ro7a7l struggles 6ith as , did earl on.

, ne%er reall could figure out ho6 to let it run4 and it al6as seemed to end u* going against me.T+,$ $"LI#$ all that. ,t eliminates= for the most *art the *ossi7ilit it 6ill go against ou once ouare in *rofits= AND it allo6s a 1)) *i* 7reathing s*ace4 for the trade to run to6ard so ou can learn totrail the $L as 6ell.



Now let's tal) EFits"

#<its can actuall 7e more important than entries. This is the MA,N reason for using t6o *ositionsand ta/ing one out earl. Most of this manual is dedicated to filtering= seeing4 and ta/ing strongentries so ou can a%oid lots of losses. The *ro7lem is that e%en 6ith a6esome entries= if ou don't

ha%e an euall strong e<it strateg= ou 6ill still most li/el fail. , did for a long time.

!hen , first 7egan= , had man= man trades that 6ent *rofita7le *rett uic/l= 7ut in an effort to letthe trade 7reathe4 as so man tal/ a7out= , often ended u* at a loss. Letting a trade 7reathe4 too fastis often fatal. ,f the trade is a strong trade= it should gi%e ou at least T!" 7ars of *rofit 7efore an reFtest occurs of an significance. ,f it doesn't= ou reall don't 6ant to 7e in the trade an 6a.

$till= allo6ing a trade to 7reathe4 is e<tremel im*ortant to long term trading success= 9-T at the 7eginning= N"T L"$,NG is M"(# im*ortant. ,t 7uilds confidence in the strateg= our a7ilit to useit and it 7uilds our account as 6ell. ,f ou ha%e *erfect entries e%er time= 7ut let lots of them gonegati%e ou 6ill lose confidence %er= %er uic/l and ha%e *ro7lems= 7eginning to thin/ the strategis fla6ed= 6hen our e<it strateg4 is the (#AL *ro7lem -$# T+# $C(,T$ ("I,D#D to fightthis

#arl on , faced this= and the 6a the scri*ts are set is the a7solute 9#$T solution , could find. Thereare man 6ho 6ill tr to tell ou to use more *ositions= less ris/ and man different com7inations.Those ma all 6or/ 6ell 6ith T+#,( strateg= 7ut N"T for The Dance. -$# T+# $C(,T$ ANDD" N"T change them.

Jee* in mind that 6hat ou are aiming for is consistenc= not huge *rofits= at least at first. The *rofitsand trade siEes 6ill gro6 if ou are consistent. The main idea is to hit our targets e%er time. T+#N6or/ on ma<imiEing the trades in other 6as such as mo%ing our $L on each 7ar and so on. ourtarget4 is N"T the 1)) *i* T set 7 the scri*ts for the second *osition. ,T ,$ to 7e *rofita7le #I#($,NGL# T(AD#= 6hether it is for onl 9#1 or and e<it for a fe6 more *i*s 6hen *rice hesitates toolong for ou= or an e<it at or %er close to the ne<t (ound Num7er le%el. ALL A(# ACC#TA9L#trades. #%en a 9rea/ #%en trade is a good trade in the 7eginning and in fact e%en for %eterans oftrading.

At first= ou 6ill *ro7a7l onl 7e a7le to *rofit 1) to 2) *i*s consistentl 6ith this strateg. T+AT ,$#(;#CTL ;,N#= and acce*ta7le. C"N$,$T#NC is the goal not huge *i* counts.

As ou gain more and more e<*erience= ou 6ill 7egin to ha%e a ;eel4 for the trade and *rice'smo%ement and momentum. T+AT is 6hen ou can 7egin to 6or/ on ma<imiEing the trades andincreasing *i* counts.

"ne of the 7est 6as to ma<imiEe a trade is to *rogressi%el mo%e our $L u* to the last retrace le%eland /ee* it ?ust a fe6 *i*s short of that. Then= 7 mo%ing it u* after each le%el= ou 6ill in effect 7eallo6ing rice itself to dictate our e<its= not a *redetermined T le%el. ,t 6ill ta/e some *ractice tolearn this= 7ut /ee* at it as it ields reall strong re6ards.

N"!= T(A,N "-($#L; T" ,GN"(# T+# PP ,N T+# T(AD# and our account. ;"C-$ "N,$ instead. There are a great man 6ho 6ill argue %ehementl that ou a7solutel= *ositi%el must



*a attention to the of ris/ each trade= the total of the trade and in our account= our e<*osure andon and on and on. That's all C(A unless ou can first 7ecome consistent in our trading. !ithoutconsistenc= ou 6ill ne%er ha%e anthing to manage 9esides= using the $cri*ts descri7ed later= oucan manage ris/ reall= reall 6ell and easil too.

$"= if ou reall 6ant to gro6 our ne6 7usiness account and ha%e lots of in%entor4 to 6or/ 6ith=

;"C-$ "N G""D #NT(,#$= $T("NG #B,T$ and ,$ "NL AND #BCL-$,I#L. Let the$cri*ts do the 6or/ of (is/ Management for ou so ou can focus on other things.

"nce ou are used to focusing on the num7er of *i*s= the stress of the PP fairl disa**ears. Then ouare left 6ith either gaining or losing a fe6 *i*s= nothing more or less monumental than the *oints in a%ideo game. T+AT is the mindset ou a7solutel M-$T nurture and master to 7ecome successful. Themore 7oring4 this 7ecomes= the more successful ou 6ill 7e.

,f our trading is more li/e dancing= or *laing a %ideo game to ou= the stress and fear4 that so often/ills others 6ill ha%e Eero affect on ou. ou 6ill 7ecome immune to it and it 6ill 7ecome much easierto focus on the actual trading strateg= the *rice action= and im*ro%ing our s/ills.

#<its are acce*ta7le at an *oint ou are in *rofits. ,f ou ha%e carefull chosen a strong entr= mo%ingto 9# 1 fairl uic/l= sa after a7out 15 *i*s or so shouldn't e%en ha%e an effect on the trade. ,f ouare consistentl 7eing sto**ed at that le%el= reFread this manual= use the $imulator and fine tune ourentries some more.

!ith the entries mastered= 7egin mastering the e<its ne<t. The more s/illed ou 7ecome at ma<imiEingthe trades to *reser%e the *i*s alread gained= in the trade on the first *osition and learning to ma<imiEethe second *osition= the faster our account 6ill gro6.

That's it. Jee* it sim*le and learn to be consistent $%R'T = then mo%e on to longer trades= more *ositions and staing in to ma<imiEe the trade.



Trailing the L:

"nce in the trade= and ou ha%e mo%ed to 9# 1= learn to let it run. The follo6ing chart is a greate<am*le of that.

lace each ne6 $L at the last e<treme of the last candle 2 *i*s and N" M"(#. ,; the trade sto*s ouout= ou !ANT T+AT 7ecause it frees ou u* for a ne6 trade and *ro7a7l indicates at least a reFtestre%ersal an6a. Mo%ing an more aggressi%el 6ill 7urn ou too often.

,f the trade is starting to run4 M"I# "-( T 6a out in front to allo6 ou to ma<imiEe the trade.

+ere is a good chart e<am*le. #ach 7lac/ line is 6here the $L 6ould ha%e 7een trailed to after each 7ar until sto**ed out in the trade. , no longer use the 5#MA= or the longer *ur*le one and , ha%echanged the line colors for sim*licit= 7ut the chart e<am*le is a great one.

NOTE: The a%erages used are no6 the standard MT a%erages and are colored slightl differentl andthe *ur*le 2)) is no longer used. This chart= ho6e%er sho6s e<tremel clearl ho6 to trail the sto* so, /e*t it in the manual for our con%enience.

Jee* in mind that if *rice has 7een ranging= or a 7it more cho**= ou ma 6ant to ta/e our *i*s a 7itfaster near a (ound Num7er.

The follo6ing e<am*le 6as actuall created for a different illustration= 7ut it sho6s another as*ect of



trailing sto*s on The Dance= 6hich *ersonall , thin/ is a6esome. The conce*t is getting a second 7ite4 at the a**le 6hile trading. ,t means that ou enter= get sto**ed out *i*s= then the trade ranges 7ac/ to AN"T+#( entr *oint 6here ou reFenter and ta/e that second 7ite= thus har%esting some *i*sT!,C# in the trading *rocess. +ere is the chart 7elo6. This chart does N"T sho6 the other t6o= 7utou get the idea from it %er= %er 6ell. Comments are on the image 7elo6 and 7eside it.

N"T#: This ,$ a *ro*er setu*= 7ut , ha%e eliminated the thic/er lines in fa%or of sim*licit. Thethinner lines are the correct setu*. ou can *la 6ith the higher time frame eui%alent4 lines if ou6ant to= , found them distracting and uit using them.



etting ,. The Charts

1. ;ind our Metatrader installation on our hard dri%e.

2. ;ind the rofiles folder and dro* in the entire folder titled The Dance4 in it..3. ;ind our ,ndicators and $cri*ts folders under #<*ert Ad%isers4 and dro* the indicators in the

a**ro*riate indicators folder= and the $cri*ts in the a**ro*riate $cri*ts folder.. ;ind our Tem*lates folder under #<*ert Ad%isers and to* the included tem*late The Dance4

in it.5. $tart Metatrader and a**l the ne6 rofile The Dance.4 #%erthing should loo/ e<actl li/e

this manual no6.

,f it doesn't= outu7e.com has some great %ideos and this lin/ on ;; might hel* as 6ell.

htt*:@@666.fore<factor.com@sho6thread.*h*Kt&520

+ere is a short tutorial on it as 6ell.

(ight clic/ our home4 7utton= then select #<*lore4 from the menu

,n the ne<t 6indo6 that o*ens find our rograms4 folder= clic/ on the icon ne<t to it and e<*and it.

As seen here. Then in the right 6indo6= scroll do6n to our Metatrader installation. ;or me that is an,9;B folder. ours might ha%e the name of our 7ro/er on it or it might ?ust ha%e Metatrader4 on it.

"nce ou find it= clic/ it and e<*and it.





"nce e<*anded= ou 6ill then see folders from Metatrader in the right 6indo6. ;ind rofiles4 anddou7le clic/ it to e<*and it as 6ell. This is the folder the included *rofile The Dance4 is dro**ed intoas seen here 7elo6.



#<*anded %ie6 of rofiles4 is 7elo6.



Ne<t is to find= clic/ and e<*and the Tem*lates folder in the left 6indo6. Then *lace the includedtem*late The Dance4 in it. "nce ou ha%e *laced the rofile and the Tem*late correctl= then in theleft 6indo6 find and e<*and #<*erts4 and in the right 6indo6 ou 6ill then see the $cri*ts= ,ndicatorsfolders. lace the scri*ts and indicators included in the Ei* file this came in= in those folders and startMetatrader.

,f ou get the error message !aiting for -*date4 in the chart 6indo6= ?ust o*en the Mar/et !atch4are of our *latform and drag the a**ro*riate currenc to the *ro*er charts and the 6ill u*dateimmediatel. This 6as done 6ith a $tandard Account= so if ou use a Mini= micro or some otherdesignation from our 7ro/er= this error ma occur. The solution is e<*lained in the ne<t section.



,sing The 8ro&ile

,ncluded in the Ei* file is a rofile4 for our use in setting u* our charts. rofiles are a neat featureof MetaTrader that allo6 ou to sa%e a *rofile4 and ra*idl a**l it to another set of currencies. !heninstalling the *rofile4 ?ust find our MetaTrader installation as in the *re%ious section on installingthem.

"nce ou ha%e e%erthing installed= ou ma see an error message that sas !aiting for -*date4 orsomething similar in our chart 6indo6s. ,f ou are using a Mini= Micro or some other account= our 7ro/er ma use differing currenc designations to u*date to our charts than these 6ere created 6ith.$hould that occur= there is a uic/ and eas fi<.

Hust o*en the Mar/et !atch4 6indo6 and select the currenc ou 6ant from the list. Clic/ and holdthe mouse 7utton on that currenc= then drag it to the chart ou desire and ou 6ill instantl see itchange to that currenc and u*date. ,t reall is that sim*le. (e*eat for each chart 6indo6.

,f ou decide to du*licate this for more currencies= ?ust sa%e the *rofile 6ith a ne6 name and follo6 the

same *rocedure to re*lace the currenc in the 6indo6s dis*laed 6ith a ne6 one.

$ee the image 7elo6. Jee* in mind the ne6 *rofile onl used three charts on "N# currenc for trading.



,sing The cri.ts

$e%eral $cri*ts4 are included in this strateg. The intent of these $cri*ts is to ma/e trading muchsim*ler= uic/er and easier to do. &RAT%E %! #EMO 7efore using them so ou /no6 6hat ouare doing 6ith them

The $cri*ts are as listed 7elo6. N"T#: -sing the one currenc4 setu* ou ma sim*l dou7le clic/4the scri*ts instead of dragging and dro**ing if ou li/e.

• AJetLotiKe: This scri*t sets the siEe of Lots ou 6ill 7e trading for each session. IT 1,T

=E ET 4I5T for eac session or the ne<t t6o scri*ts 6hich e<ecute a 7u and a sell !,LL N"T 6or/. ,t is used to set the Lot siEe 7ased on the account 7alance and the $to* Loss ouchoose to use. ,t is *reFset to a 15 i* $L 7ut 6hen clic/ed launches a *o* u* ou can use tochange the ris/ and the $L setting if ou 6ant to. That is not recommended.

• AJ=u$: This $cri*t e<ecutes a single order 7u sim*l 7 dro**ing it on the chart. ,t is *resetto enter T!" *ositions 6ith a $L of 12 *i*s on each 6ith a T of 15 and a 1)) *i*s

res*ecti%el. "nce e<ecuted ou should ma decrease the $L if ou ha%e the e<*erience to doso. The settings on the first T is +A(D= D" N"T change it. The $L an the second T areonl to gi%e ou time to thin/ a7out 6here to set it= 7ut still ha%e them in *lace.

• AJell: This $cri*t e<ecutes a single order $ell sim*l 7 dro**ing it on the chart. ,t is *resetto enter T!" *ositions 6ith a $L of 12 *i*s on each 6ith a T of 15 and a 1)) *i*sres*ecti%el. "nce e<ecuted ou should ma decrease the $L if ou ha%e the e<*erience to doso. The settings on the first T is +A(D= D" N"T change it. The $L an the second T areonl to gi%e ou time to thin/ a7out 6here to set it= 7ut still ha%e them in *lace.

• AClose 4irst (8air: This scri*t 6ill close the first o*en order on a single chart. $im*l drag

it on the chart and dro* it. Than/s to ;;'s $6ingman for the scri*t.

• AClose All (8air: This scri*t 6ill close ALL o*en orders on a single chart. $im*l drag it onthe chart and dro* it. Than/s to ;;'s $6ingman for the scri*t

• AE1E53ENC+CloseAll: This $cri*t 6ill close ALL *ositions on ALL currenciesimmediatel.

• AT8 etG1oe: This $cri*t 6ill set or mo%e ALL the Target rofit lines on a s*ecific chart.$im*l drag and dro* it on the desired chart. ,f no T is *resent= it 6ill create one. -se this tochange the T on a trade.

• AL etG1oe: This $cri*t 6ill set or mo%e ALL the $to* Loss lines on a s*ecific chart.$im*l drag and dro* it on the desired chart. ,f no $L is *resent= it 6ill create one. -se this tochange the $L on a trade.

• =rea) Een L: !ill mo%e ALL sto*s to 9rea/ #%en on a s*ecific chart. Drag and dro* onthe chart ou 6ant.



MAJ# $-(# "- +AI# #NA9L#D 9"T+ #B#(T ADI,$#($4 AND ALL"! L,I#T(AD,NG4 in the #<*erts4 ta7 of the "*tions4 *o* u* found under Tools4 in the to* Menu of our *latform. Clic/ Tools=4 then "*tions.4

Then ena7le the 7o<es sho6n 7elo6.

NOTE: I& $ou hae a &ie digit bro)er or one that uses more2 $ou 1,T o.en the scri.ts and add

a #B% to the L and T8 setting or the scri.ts will not eFecute &or $ou"

$#TT,NG T+# $T" L"$$: the *ur*ose of setting the $L to 10 in the scri*ts is that on G7*@-sd and#ur@H* 6ith *i* s*reads one needs a 7it more room.4 ,f ou decide to trade others= li/e the #ur@-sdou should dro* it immediatel to as little as *ossi7le 6ith the A$L scri*t. Also= often= once ou are a 7it more s/illed= ou ma often dro* the $L to as little as or 0 *i*s on an entr e%en on G7*@-sd and#ur@H*. This 10 *i* setting 6ill also allo6 ou to set it 6here ou 6ant it after entr= 7ut a%oid ou 7eing sto**ed out *rematurel on a *rice s6ing 6ithin the entr candle.

The other reason for using 10 is that the (is/ of each trade is determined 7 the num7er of *i*s use forthe $L in the AS$etLot$iEe scri*t= 6hich is 15. ou 6ill need to decrease the $L almost immediatelon entr= 7ut this setting allo6s ou to earn more *er trade= 6hile /ee*ing e<tremel lo6 ris/ e<*osure



on each trade. The smaller the $L ou can learn to manage a trade 6ith= the smaller our ris/ 6ill 7e ,;ou lea%e the 15 *i* in the AS$etLot$iEe scri*t that sets the trade siEes.

Modifing the $cri*ts:

;irst= go to Tools FU MetaRutoes Language #ditor and clic/ the lin/ as seen here

"nce the #ditor o*ens clic/ scri*ts4 and find the 7u and sell scri*ts AS9u4 and AS$ell.4 "ne at atime= dou7le clic/ then and ma/e the follo6ing changes.

Ne<t *age *lease.



"nce one of them is o*en= modif this setting in each.

"nce ou ha%e done that= then find the com*ile4 7utton and clic/ it to acti%ate the ne6 settings andclose the editor. "- M-$T CL,CJ C"M,L# "( T+# !,LL N"T C+ANG#

,f ou ha%e s*ecial needs or *ro7lems= time to do some research and learning on our o6n for this.



Oanda Charts

This is the *rocess for setting u* "anda the 6a , ha%e it setu*.

"*en the *latform and login and ou 6ill see this screen first.

This is the 7asic setu* and from here ou ha%e to start to customiEe4 the 6a ou 6ant things to 6or/.;irst= a**l the three lines of The Dance 7 clic/ing the Add $tud4 dro* do6n list at the lo6er left ofthe chart 6indo6 and add the 1) #ma= the 35 $ma and the 5) #ma in that order= then right clic/ each

and a**l a color ou li/e to each as seen in this ne<t screen.



,t's *rett intuiti%e u* to this *oint. Then once that's done= ou can start to setu* our trading setu*4as ou 6ant it. Then clic/ the little dou7le 7o<4 icon at the to* left of the chart area and ou can o*enthree e<actl same 6indo6s 6hich ou can then drag and reFsiEe to fit the screen the 6a , set mine u*.+ere is a loo/ at ho6 that ha**ens. #ach 6indo6 ou create ou must drag4 out of the 6a so oucan create the ne<t of the three as seen here 7elo6.



"nce ou ha%e the tree created= drag and dro* them and reFsiEe them so the loo/ li/e this and lea%ea7out an inch at the 7ottom of the screen as 6e 6ill 7e using that in a minute as 6ell= as seen here 7elo6. After dragging and reFsiEing= ou can then select the time frame for each 6indo6 as seen= thenthe currenc from the a**ro*riate dro* do6ns as seen 7elo6 as 6ell.



"nce this is done= ou 6ill need to find he original 6indo6= 6hich ou N#I#( close as it 6ill shutdo6n the entire a**lication. ,n that 6indo6= there is a *lace at the to* 6here our li%e4 trades a**earand there is a dou7le 7o<4 to o*en that as 6ell so ou can *lace it at the 7ottom of the ne6l reFsiEed6indo6s= com*leting the loo/4 and the a7ilit to close all o*en trades unfortunatel= one at a time if

need 7e as seen here 7elo6. The little thin 6indo6 in the center is the one ou 6ill 7e mo%ing to the 7ottom of the setu* for trading.



"nce created= drag into *lace and stretch it across the 7ottom li/e , do as seen here.



This com*letes the setu*4 of the trading are li/e , use it 6hen , use "anda. Then go 7ac/ to that main6indo6 and clic/ Tools4 then $a%e Current rofile4 so the setu* 6ill al6as load this 6a for ou.9elo6 is a screen shot of that menu item to clic/.



;rom there= ou 6ill need to modif the ne6l created 6indo6 so ou onl see i*s4 and ou can alsodelete anthing else ou don't 6ant to see 7 clic/ing the little grid4 icon 6hich then *o*s u* a6indo6 6here ou can choose 6hat to dis*la as seen here. -nchec/ rofit -$D4 and chec/ rofiti*s4 and *erha*s rofit 4 if ou 6ant to then ou 6ill /no6 the of our *rofit each trade 7account siEe. , don't use that feature= 7ut , ma start.



"nce this is finished= clic/ close and then reFsa%e the current *rofile as ou did a7o%e. Ne<t 6e go tothe -ser references4 section and set the actual trading amounts and 6ith "anda= , al6as trade a 4of the account and , 6ill sho6 ou ho6 , set mine= ou can set ours ho6e%er ou 6ant to. Go toTools4 and clic/ -ser references4 from the dro* do6n and this 6indo6 6ill a**ear= , ha%e alreadchec/ed it the 6a mine is setu* for the Trading4 section. ou can *la 6ith the others later after oulearn to use this to trade 6ith.



"nce our's loo/s li/e this= then go to the Ruotes ta7 and and remo%e all 7ut the G- and #H and *erha*s AH currencies as sho6n 7elo6. Then clic/ A**l and $a%e and the uotes 6indo6 6e deal6ith ne<t 6ill loo/ right 6ith the right currencies in it and this 7o< 6ill disa**ear. +ere is ho6 to do

the remo%al=== ?ust highlight all the currencies ou 6ant to remo%e and lic/ the correct arro6 as seen.Clic/ on each currenc "N# T,M# and it 6ill sta highlighted until ou select all the ones ou 6ant toremo%e then clic/ remo%e4 as seen and then a**l and sa%e as e<*lained.



No6 there is onl one thing left to do= clic/ and set the Ruotes4 6indo6 itself so ou can use it forone clic/4 trades. Go to the main 6indo6 again and select the little dou7le 7o< again ne<t to theRuotes4 area and it 6ill o*en in a ne6 6indo6 ou can then drag and resiEe as the others to com*letethe entire setu* and ou're read for trading. ou can see 7elo6 the t6o images that com*lete this ste*.ou ma also reForder the currencies to G- is on to*= then #H ne<t and AH last 7 clic/ing the currencthen the u*4 or do6n4 arro6s as seen a7o%e.



The Ruotes 6indo6 6ill o*en in a ne6 6indo6 then ou can minimiEe the main 6indo6 for the lasttime 7efore sa%ing the current *rofile one last time. And ou can then drag and resiEe the 6indo6 asseen. "nce ou ha%e it the siEe and location ou 6ant= clic/ the Ruotes4 ta7= then the little funnloo/ing icon m mouse is on in this screen shot and then the second image is ho6 our setu* 6ill loo/.This 6ill allo6 one touch4 entries and set4 our com*ounding for this session.



$econd image is 7elo6.

The a7o%e image sho6s 6hat it 6ill loo/ li/e 6hen ou clic/ on a $ell4 for a one clic/ trade. ,t doesthe e<act same 6ith a 7u4 trade and it 6ill *lace the $L and T and the trailing $L immediatel. N#I#( trade 6ithout a $L in *lace as the do not ha%e a trading des/ of an /ind. T+# D" ha%ee<cellent li%e chat at all times the trading is going on. 9ut ou 6ill= from time to time notice someoutages4 on the *latform= 7ut the do a great ?o7 of customer su**ort e%en at that and the s*reads areso small it's 6orth learning and *utting u* 6ith the issues that do come u*= in m hum7le o*inion.

"nce it's setu*= *la 6ith it until ou're comforta7le 6ith it. The trades are near instant and the s*readsare reall lo6. 2 *i*s on 7oth G- and #H e<ce*t at ne6s times 6hen it 6idens a lot 1) *i*s or more attimes= so 7e I#( careful around ne6s time.



A7out Ad%anced (ules

There are man= man 6as to use the lines of The Dance. A lot of tal/ on the ;; thread has gi%en to6hat the might 7e. There are some= and ,'ll tal/ a small 7it a7out them here= 7ut don't get caught u* inthem. Learn and master the 7asics first= then ou 6ill 7e read to create our "!N ad%anced rules4 7ased on our e<*erience and 6hat "- see in the charts.

coo.ed Awa$:

This is *rett sim*le= 6hen the 1) #MA turns4 on one of the charts= the 7ar after it turns often reteststhe line. $ometimes the second one does li/e a touch4 trade in a normal setu*. #ither 6a= that retestoften *resents a fairl solid counter trend entr 6orth at least 2) *i*s. ,f ou are using the $cri*ts *ro*erl= ou can ta/e the first T out reall uic/= mo%e to 9e and 6ait for the trade to run our 6a=or 7ounce at the higher lines and re%erse 7ac/ into the trend of the moment. Hust 6atch the charts=ou'll see 6hat , mean.

Wic)ed:

The ti*s of %er long 6ic/s on M15= and on +1 and D1 *resent some e<tremel *o6erful T targets6hen *rice is heading that 6a= and the can also *resent strong re%erse trades as 6ell. There is areason that *rice *re%iousl re%ersed lea%ing that long 6ic/= and most li/el that reason is still in *lafor at least 2) to 5) *i*s after 6hich *rice ma again head to6ard that 6ic/ ti*. Learning to 6atch forthem and use them is a %er strong 6a to find good targets for e<its to ma<imiEe the trade= and a *laceto find solid re%erse trades as 6ell. (emem7er to /ee* reall= reall tight $Ls in those area.

?ome on The 5ange:

(anging mar/ets can 7e a real challenge and more than once the ha%e /ic/ed m little ros red The

7est 6a to trade DA,L ranging mar/ets is to lea%e them alone. N"(MAL ranging mar/ets *la %ernicel into The Dance's lines if that range is 1)) *i*s or so from high to lo6.

9-T 6hen that range is ,NT(ADA and onl a7out 5) to 5 *i*s= most ?ust call it cho* and 6al/a6a. , often do that 7ecause of the attention and focus needed to trade them *ro*erl. ,f ou reall6ant to tac/le it though= trade it the 6a most 6ould= dra6 a channel4 at the most common highs andlo6s= T+#N loo/ for 7ounces off the 35@5) lines for a7out 15 *i*s to mil/ it= 7ut D" N"T e<*ectanthing larger

ou can also ta/e trades 6hen the 1) scoo*s4 *rice u* or do6n at the e<tremes of the range= 7ut again=D" N"T e<*ect more than a7out 15 *i*s. $"M#T,M#$ ou'll get luc/ and hit a good 5) or 1)) *i*

trade in this stuff= 7ut mostl ?ust the 1) *i*s and 2) *i*s of trading



$ummar

,f ou ta/e the time to learn to use the rice Action and 7ounces of the Confluence of #MAs and(ound Num7ers4 as a filters for entries and the #MAs as floating su**ort and resistance= this strategcan literall ma/e ou rich. The man 6ho hel*ed me learn most of this and to 6rite do6n all the rulesa%erages a**ro<imatel ) to 1)) *i*s *er da. +e does it da in= da out= no matter 6hat the mar/et.

+e did it during the most %olatile mar/et e%er seen in 2)) and 2))0. +e did it in the consolidation *eriod that follo6ed and he 6as doing it 7efore that during the *re%ious trending mar/et.

$e%eral times , 6atched him earn u*6ards of 5)) *i*s *er 6ee/ and es= those are real4 *i*s at a fulllot each *i* 6ith onl a P1)=))).)) account to 7oot. ,n addition= se%eral times he has ta/en a P5)).))account and gro6n it to o%er P5=))).)) in less than t6o months= then mo%e 7ac/ to earning a li%ing6ith that account.

,f ou thin/ ou need lots of mone to start= thin/ again. $tarting 6ith a large account is a great 6a tolose a lot of mone. , 6atched m friend ta/e a P3)).)) dollar account to P1)).)) in a7out & 6ee/s.A moth later that same account had o%er P5=))).)) in it. ;ol/s=== that's a return of o%er 1)) e%er

6ee/ and a half. ,f he can do it= so can ou.

9 the 6a= as of this 6riting he is trading to 5 standard lots e%er trade. ou do the math on that.,t's a7out a million a ear income

atience is the main /e in all this. atience allo6s ou to 7e less emotionall in%ol%ed so ou don'tma/e lots of dum7 mista/es. 'T%- TO T)E RULE' = and ou 6ill 7e ?ust fine.



Dancing 8ractice

Learning to dance= 6hether it's real dancing or this strateg= reuires *ractice. Al6as *ractice 7eforema/ing a fool of ourself on a li%e dance floor

!ith that in mind= there is a good 6a to do that. The first and 7est 6a to *ractice this is to use the$trateg Tester *ro%ided 7 Ruantem. +is thread is no6 in the ;ore<;actor (eccle 9in= 7ut the toolis still a good tool. +ere is the lin/ htt*:@@666.fore<factor.com@sho6thread.*h*Kt)2

ou 6ill *ro7a7l ha%e a tough time getting to an real success4 on it 7ecause of the 6a it 6or/s= atleast at first. 9ut stic/ 6ith it and ou !,LL start seeing some success. The follo6ing are the ste*s toget good at this strateg. ou 6ill also not 7e a7le to use the three chart setu* 7ecause of ho6 the$trateg Tester 6or/s= 7ut it's great *ractice.

1. At first ou should ?ust start a chart in the Tester and acti%ate the tem*late The Dance4 for thechart. Then ?ust sit and 6atch ho6 it acts and reacts around the Mo%ing A%erages and around

the (ound Num7er le%els on se%eral different currencies. This 6ill start to de%elo* our a7ilitto see at a glance4 6hen trades are forming. ,t 6ill 7e as 7oring as suc/ing nails= 7ut do it forat least a da or so on as man currencies as ou can ?ust for the e<*erience of learning the 6a *rice mo%es around the Mo%ing a%erages and (ound Num7ers.

2. "nce ou feel comforta7le 6ith the Tester= start trading it and set the slide 7ar to no more than

2 so *rice action is slo6 enough for ou to actuall ma/e trades in the tester. Jee* 6ith ituntil ou are starting to see some success in trading this strateg. (emem7er to mo%e our $L *rogressi%el and to mo%e the T 6a out in front to let the trades run if the do dou7le clic/ itto mo%e it. "ther 6ise ou 6ill 7e sto**ed on man trades at the T and then see it run off6ithout ou. !hen trading the simulator= don't 7other 6ith tring to figure out the actual

mar/et time frames= ?ust trade e%er signal ou see and don't get frustrated or 7e hard onourself. The !+"L# *oint of this is to allo6 our su7conscious to 7egin to see4 the tradesso ou can understand ho6 the start and ho6 to enter them *ro*erl.

3. After no more than a fe6 das or e%en 7etter= *erha*s a fe6 6ee/s= ou should 7e at a *oint6here ou can see4 the trades forming 7efore ou actuall ta/e them. !hen that ha**ens= it'stime to start to mo%e to a more li%e4 format on a Demo account. Demo trading itself isn't6orth much unless ou ha%e alread defined in ad%ance= strict trading rules and had somee<*osure to them so ou can actuall stic/ to them. !hile Demo trading= trade e<clusi%el themar/et times the (ules call for. ou !,LL 7egin to see the trades 7etter= and ou !,LL start toha%e some success= though it ma still 7e a 6hile 7efore ou reach an /ind of consistenc in

our trading= 7ut stic/ 6ith it.

. !hen ou feel comforta7le 6ith the li%e sessions in the Demo account= o*en a li%e account6ith a 7ro/er ou feel ou might li/e. There are se%eral that are acce*ta7le li/e Al*ari= ,9;B=A%a;B= ;BCM= ;BDD= "anda and man more. Hust do a search and find one ou thin/ oucan li%e 6ith. (emem7er= no 7ro/er is reall good4 all of them ha%e their issues. ersonall= ,use ,9;B. Hust remem7er to N#I#( de*osit more than a P1)).)) in an account until ou getreall= reall consistent 6ith this strateg. Then= let the account gro6 itself as ou trade. There





is nothing stronger or more satisfing that going through that *rocess= and ou !,LLe<*erience all the issues4 and *schological4 challenges as 6ith a larger account= 7ut 6ithoutlosing huge sums of cash.

5. #NH" T(AD,NG Don't e%er let it 7ecome a frustration to ou. (ealiEe it's a challenge andsomething ou CAN and !,LL master o%er time. ,t 6ill ta/e a 6hile= so 7e *atient 6ith

ourself as 6ell as 6ith the trading.



It's A =usiness !!!

As 6ith all things= it ta/es a 7it of time to get good at trading= 7ut no 6here near as much time as most6ill tell ou. , ha%e heard of traders ta/ing from t6o to fi%e ears 7efore 7ecoming consistent at

trading and some e%en longer.

,f ou treat this as a 7usiness= not a game of chance= then ou can dramaticall shorten the time needed.All 7usinesses first of all= ha%e a 9usiness lan. !hen , started trading= that *art mstified me. , ha%e 7een an entre*reneur from the time , 6as %er oung and had m first real4 7usiness= as the o6ner= 7the time , 6as 22. 9ut for some reason= , couldn't thin/ of trading that 6a= not at first an6a. +o6in the 6orld do ou create a 9usiness lan4 for tradingK The ans6er follo6s.

(" T?I I A =,INE

$o=== Lesson one is learn that this is a 7usiness. ,t 6ill reuire some time and dedication to ma/e our

ne6 7usiness successful. D#D,CAT# T,M# to our ne6 7usiness. Decide on 6hich session of themar/et and 6hich currenc ou 6ill 7e trading and stic/ to it D" N"T C+ANG# our time= thecurrenc or the strateg. $tic/ 6ith it Most 6ho lose= lose 7ecause the 6ill not stic/ 6ith it.4

Hum*ing around a lot 6ill /ill our ne6 7usiness. ,f our customers couldn't count on ourmerchandise 7eing the same and of high ualit and ou 7eing at the same *lace to do 7usiness all thetime= the 6ould soon sto* sho**ing 6ith ou. "- are our customer. ,f ou ?um* around= ou losean chance at de%elo*ing a high ualit *roduct our trading strateg and stle and ou ha%e no *laceof 7usiness. A 7ro/er is N"T our *lace of 7usiness= the Mar/et is. 5E1E1=E5 T?AT! ou machange our 6holesaler4 or su**lier4 from time to time to get 7etter *rices or rates= 7ut N#I#( our *roduct line trading strateg or our *lace of 7usiness.

;rom time to time= ou ma im*ro%e our *roduct line fine tune our strateg to "-( 6a of usingit 7ut ou still need to offer the same *roduct ,f ou started 6ith clothing store= ou 6ould stic/ toclothing. ,f ou start 6ith a s*ecific strateg= stic/ to it. Hust loo/ for 6as to use it 7etter= 7ut $T,CJT" T+AT $T(AT#G until ou master it

ou do not need lots of time= 7ut ou need consistently te same time= ?ust li/e a 7usiness. ou needo*ening hours4 and closing hours4 for our ne6 7usiness to succeed. !ith no o*ening hours4 ou6ill ne%er learn4 our *roduct line= 6hich is the mar/et. !ith no closing hours4 ou 6ill gete<hausted and gi%e u*.

,f ou do not ta/e the time to learn it 7efore ou ?um* off into the dee* end= it is %er li/el ou 6illget discouraged and fail. ersonall= , 7elie%e more traders fail 7ecause of discouragement than fromlac/ of ca*ital= lac/ of training or an other cause. The sim*l gi%e u* deciding it's too hard= thedon't ha%e enough mone= or 6hat e%er other e<cuse to gi%e u* 7ecause the are discouraged= that thecan find.

,'m not slamming anone 6ho decides it's not for them= ?ust tring to shed a little light. #%er trader6ho has succeeded 6ill tell ou that it can 7e a %er lonel 7usiness= and %er discouraging= es*eciall



if ou are sitting at home 6ith no one or %er fe6 to encourage ou in our ne6 7usiness.

*" +O, NEED A =,INE 8LAN

,n the Vi* file that is included this manual= ou 6ill find an #<cel file. This manual and that filecontain the 7usiness *lan4 , used 6hen , started this ?ourne= after a ear of researching and trading

e<tremel small accounts for e<*erience. ou ma use it or change it as ou see fit. 9it 6hat e%er oudo= stic/ to O!E *lan= O!E strateg and a 6a to gro6 the results.

M 7usiness goal at first 6as to gain at least 5) *i*s each and e%er single da , trade. , am stillstic/ing to that goal. Jee* in mind= it does N"T reuire that man to 7e successful.

,f ou gain 2) *i*s *rofit *er da= and ne%er ta/e an mone out of the account= increasing our tradesthe 6a the *lan calls for= ou can achie%e success in less than a ear. AND= though some 6ill laugh atthis= e%en ridicule the conce*t= ou can earn literall a million the first ear ou successfull trade 6iththis strateg.

#arning 2) *i*s *rofit isn't that hard and shouldn't ta/e more than an hour or so each da= ,; ou tradeat the right times= and 6ith a good strateg.

ou also need to *lan on s*ending time trading %er= %er small accounts ,N L,I# T(AD#$= 6ith realmone= 7efore ou ?um* off into the dee* end of this *ool= or it 6ill 7e a %er e<*ensi%e lesson indeed.Trading L,I#= (#AL accounts is the 7est 6a to go. Demo accounts are nice if ou are ?ust tring outstrategies and so on= 7ut if ou are read to start our ne6 7usiness= use li%e accounts 6ith real moneand *lan on losing some for a 6hile.

Man 7ro/ers offer small accounts. Al*ari= ,9;B= "anda and se%eral others 6ill allo6 ou to trade6ith as little as 1) dollars. D"N'T T+,NJ ;"( A $#C"ND this is /idd stuff= trading tin accounts.

ou do it for a 6hile and ou 6ill e<*erience ALL of the emotions and *schological things that go6ith trading and it 6ill cost ou %er little.

As of the 6riting of this manual= , ha%e 7lo6n out se%eral accounts= and ne%er lost more than a total ofP3)).)) trading in m ne6 7usiness during the entire time. ,n m *re%ious life 6ith other 7usinesses= ,did much the same= , tested the 6aters 6ith real *roducts= ser%ices= or 6hat e%er the 7usiness reuired=on as limited a 7asis as , could to get a feel4 for the 7usiness= T+#N , ?um*ed in and did reasona7l6ell.

9 the 6a= this is a good area to e<*lain 6h , finall chose trading ;"(#B as m 7usiness. #%ertime , gre6 a good 7usiness= there al6as seemed to 7e someone= some6here in the right *lace at the6rong time to mess it all u* and destro 6hat , had 7uilt.

,n Trading= N" "N# can do that 7ut me4 or ou4 in our case. #%en a 7ad 7ro/er 6ho steals ourmone can't /ill our 7usiness. The can cause ou to lose some time= and ma/e ou ha%e to go toanother 7ro/er= 7ut ou !,LL succeed if ou stic/ to it and once ou master it= N" "N# can ta/e itfrom ou.

The ne<t thing is immensel im*ortant= tattoo it on our 7rain= car%e it in the 6all 7ehind ourcom*uter so ou can see it and ne%er forget it.



-" 4OLLOW T?E 5,LE TO T?E LETTE5 AND DO NOT A5+ 45O1 T?E1 !!

The (ules 6ill hel* ou a%oid fear and greed= the t6o strongest /illers in this industr. This *air canreall get ou messed u* *schologicall and get ou to the *oint of 6anting to uit. The funn thingis that ou ma not e%en thin/ ou are 7eing greed or fearful= so let me gi%e ou an e<am*le.

;#A(:

!hen ou trade= if ou hesitate in the slightest in e<ecuting= *ulling the trigger= an indecision at all isfear. The same thing a**lies to e<iting a trade 7efore the (ules tell ou to. 9"T+ of these fear 7asedscenarios 6ill /ill our ne6 7usiness 7efore ou ha%e a chance to e%en start it. 9"T+ 6ill cost ou *i*s.

+esitating ma/es ou miss o**ortunities AND !"($T= it ma/es ou dou7t the (ules= our ?udgmentand decisions. T)AT is fatal and it is all fear 7ased. As our account gro6s= fear 6ill tr to tell outhat for some reason= 1) of P1)).)) is less stressful to lose than 1) of P1=))).)) or 1) of

P1))=))).)). The truth is it is still ?ust 1) and nothing more. ,t's all a matter of *ers*ecti%e and asour account gro6s= so should our *ers*ecti%e

The *ro7lem is not the *ercentage= it is our familiarit 6ith the amounts re*resented that o*ens a doorto fear in our trading. , once had a 7oss 6ho told me m main *ro7lem in sales 6hat that , had ne%erearned a si< figure income= 7ut once , did= it 6ould 7ecome easier and easier to earn it and to learn togro6 it. +e 6as right. T+# $AM# AL,#$ T" T(AD,NG

,f ou listen to all the nasaers telling ou ho6 it can't 7e done=4 their *oison 6ill infect ou 6ith thesame dou7ts and limitations. A%oid them at all costs and find *eo*le 6ho can encourage ou 6ithoutselling ou their cra*4 6a of doing things. There are 6a more than enough free resources around to

ma/e sure ou get 6here ou 6ant to 7e in our trading. Hust D"N'T G,I# -

G(##D:

Greed is also e<tremel innocuous in trading in it's *resentation. Loo/ing to get ?ust one more *i*4 isgreed ?ust as much as 6anting to ro7 a 7an/. T+#(# ,$ N" D,;;#(#NC#= es*eciall not 6hen ouare trading. +anging on to a losing trade too long is greed= and also *erha*s fear. ;ear ou 6ill lose ifou e<it a 7ad trade= and greed that it 6ill come 7ac/ to ou and ou ha%e to hang on to the trade.

Greed can ma/e ou not ta/e that first fe6 *i*s 6hen the *rice mo%ement hesitates a tin 7it too long.Greed 6ill sa 6ell= it's onl 7een a fe6 seconds longer than normal=4 then it 6ill sa= hang on a 7it==it's still going our 6a.4 Then it 6ill sa= 7ut the trade 6ill come 7ac/ reall uic/.4 All those are 7ased on Greed.

/" TAE +O,5 8I8 NOW!

At the %er first sign of *rice hesitating too long= ta/e 6hat e%er *i*s ou ha%e on one *osition= e%en ifit's onl three *i*s TAJ# T+#M and mo%e to 9rea/ #%en on an other *osition ou ha%e o*en onthat currenc. Then sit 7ac/ and 6ait confident that ou ha%e made a *rofit. There 6ill 7e anothertrade along in a fe6 minutes and ou can catch more *i*s then too.



Don't 7e afraid to *ull the trigger to enter= or to loc/ in those first fe6 *i*s= or too greed= 6antingmore. TAJ# "-( ,$ N"! Jee* in mind that the time e<*osure4 to the mar/et is at least as *o6erful a ris/ as the *ercentage of our account ou trade 6ith on each *osition. $hooting formulti*le shorter= stronger trades is an a6esome 6a to TAJ# "-( ,$ N"! 4

0" 3ET O,T NOW!

"nce ou hit our target for the trade= or get an e<it signal= G#T "-T N"! N#I#( 6ait= ?ust getout and ta/e our *i*s. ou can al6as find another trade= it ma e%en 7e 7etter and gi%e ou more *i*s= 7ut remem7er the old saing a 7ird in the hand is 6orth t6o in the 7ushK4 ,t's true=== the *i*s oualread ha%e earned are the 7est *i*s ou 6ill e%er ha%e. TAJ# T+#M N"!

,t is es*eciall critical to follo6 the rules on this issue. ,t reduces ris/= increases our account= 7uildsour confidence and a hundred other good things. ou ne%er go 7ro/e ta/ing a *rofit4 is another old 7usiness ma<im. ,t's also true.

A uic/ nic/el is 7etter than a slo6 dime.4 T+AT one is amaEingl true. Mone has a %er definitetime %alue and the more time ou s*end 6aiting to earn that ne<t *i*= is more time at ris/. ,n fact= ifou are using an account that increases our trade e%er time ou trade automaticall= the smallertrades can 7uild u* amaEingl uic/l. ,n addition= 6aiting for that ne<t *i* ma cost ou a 7etter tradethat is currentl onl de%elo*ing on a different currenc

Ne%er 7e too greed or to afraid to ta/e our *i*s N"!

6" WAIT 8ATIENTL+!!

atience is a %irtue.4 This is the strongest lesson to learn in trading. 9# AT,#NT in 6aiting for the

right setu*s to ha**en. !hen the sa Let the mar/et come to ou=4 this is 6hat the mean= 9#AT,#NT. ou can't *ush a ri%er= shoot *ool 6ith a ro*e= fall u*stairs= or hurr the mar/et.

Ma/ing lots of trades is the 6rong a**roach in all situations. #%en in scal*ing= there is a *erfect setu*to loo/ for. Ta/ing su7standard trades is an e<cruciating 6a to learn *atience and e<tremel costl.(emem7er= ou are learning a 7usiness= not a cra* shoot or some sort of gam7ling.

#%en in card games such as 9lac/?ac/= o/er= inochle= (umm and so on there are rules to li%e 7 and%iolating the rules means certain death of the effort and e%entuall the enter*rise. ,t is the same in the 7usiness of trading ;"(#B.

,f ou ta/e "NL the strong= i.e. *erfect4 trade setu*s= our *ro7a7ilit of success is much greater andthe *otential *rofit of the trades is also much higher.

No6= if ou don't thin/ that 7usiness has much to do 6ith *ro7a7ilities= li/e ;"(#B= let me enlightenou. N" "N# has a crstal 7all on 6hat *roduct= or 6hat ad%ertising 6ill gain a7solute success.There A(# strategies that 6or/ much 7etter than others and 7ring lots of success= 7ut it is still agame4 of *ro7a7ilities.

!hen 9urger Jing started= the follo6ed a %er sim*le strateg. McDonald's 6as alread e<tremel



successful and the lines of those 6aiting to 7e ser%ed 6ere gro6ing. $o= the man 6ho founded 9urgerJing thought of a sim*le strateg. ,t 6as to 7uild a 7urger sho* across the street and count on the factthat McDonald's had alread done the *ro*er research to 7e successful and then sim*l 6ait for theo%erflo6 for his ne6 restaurants.

,t 6as a sim*l 7rilliant *lan= and o7%iousl 6or/ed.

;"(#B is that sim*le. Trading the trend 6or/s= using rice Action 7ars 6or/s= using su**ort andresistance 6or/s. The Mar/et 7reathes4 meaning that *rice rises and falls 7ecause of the com*etingtraders in 7uing and selling *ositions.

All of that is alread *ro%en in the histor of trading= as 6ell as the histor of ;"(#B. All that is leftis to find a $,ML# method ou can use to im*lement those ideas.

The sim*ler to im*lement and see4 and use= the more *rofita7le the method or strateg 6ill 7e.

Lastl= no 7usiness model is stagnant or static. #%er 7usiness needs constant attention as customerneeds and desires and *roduct su**l and im*ro%ements as 6ell as costs of doing 7usiness are in aconstant state of flu<. ,T ,$ N" D,;;#(#NT from ;"(#B.

!ith that in mind= e%erthing in this manual u* to this *oint is aimed at hel*ing ou to understand thatthis is a 7usiness and ou can master it and 7e 6ildl successful. AND it should N"T ta/e ou ears toget there. All it reall ta/es is a decent= sim*le 7usiness *lan= li/e this one 7uilt on the strategies andmethods *ro%en o%er decades to 6or/.

#%erthing in this manual and the attached #<cel s*readsheet is our 7usiness *lan. Jee* it sim*le andstic/ to it. All 7usiness o6ners need some time to learn to master their 7usiness. ;ortunatel= ou canmaster this one in our s*are time= as long as ou treat it li/e a 7usiness= set aside dedicated time fortrading at the same time e%er da and stic/ to the rules e<clusi%el.

No6= let's learn to actuall trade.

Master the 9asics ;irst

This is one of the most critical *arts of an 7usiness. The 7asics 6ill ma/e or 7rea/ ou. The 7asics ofthis strateg ha%e 7een laid out clearl in this manual. MA$T#( T+#M ;,($T= 7efore ou doanthing else= MA$T#( T+# 9A$,C$. Master the constrainment entries and 7ounces off the 5)#MA ;,($T= and use the (ound Num7ers4 for guidance on e<its or to sta in a trade Constrainmententries are the a7solute 9#$T there are in this strateg. Loo/ for *rice 7eing constrained 7 one of the

#MAs of a confluence of #MAs and (ound Num7ers 7efore ou start tring to get fanc. There areenough of them to allo6 ou to ma/e tons of *i*s. MA$T#( T+#$# ;,($T

Trade them relentlessl in demo or in a %er= %er small li%e account until the 7ecome mindnum7ingl 7oring and com*letel refle<i%e. ,n other 6ords= ma/e it such a refle< that 6hen ou seethe good 7asic trade= ou ta/e it 6ithout a single thought. T+#N ou can mo%e to ma<imiEing ourtrades.



1aster The Trades !

"nce ou ha%e mastered the 9asic (ules and #ntries and started to learn to ta/e 7etter and fe6er tradesa 7it= it's time to start mastering the actual Trade itself. This is done 7 using Mone Managements/ills and managing ris/ at the same time.

A lot has 7een said in man areas of minimiEing the ris/s= and lots of tal/ is a7out limiting ris/ 7 thesiEe of the trade. Most 6ill tell ou not to ris/ more than 3 on an gi%en trade. To me= this is moreof a *ersonal thing than a hard and fast rule.

, /no6 of traders 6ho use 3= some 6ho use 2= some 6ho use 5 and a fe6 6ho go much higher.,t's all a7out our *ersonal confidence= e<*erience and a7ilities.

To 7e honest this *art is also amaEingl sim*le= if ou are 6illing to stic/ to it. ,t eluded me for a longtime= 7ut no6 , 6onder ho6 , e%er missed it.

!hen , trade= , often 7ut not al6as use t6o *ositions in the same currenc. 9"T+ of them are a 3 to ris/ 6ith the e<act same $to* losses. , use one to eliminate the ris/ uic/l and loc/ in *rofits= andthe other one to allo6 the trade to run and ma<imiEe *rofits.

"nce , enter a trade= at the first sign of strong resistance or *rice action hesitation= , e<it or tighten u*m $to* Loss as close as *ossi7le 6ithout cho/ing4 the trade. , al6as mo%e to 9# 1 as soon as ,feel it is *ossi7le 6ithout cho/ing out the trade. That is as sim*le as trade Management gets to me.

No one has a crstal 7all to determine that e%en 6ith all our efforts and rules the mar/et 6ill definitelgo our 6a. , ha%e entered man *erfect4 setu* trades onl to ha%e rice go m 6a to 15 *i*s thenhesitate and *lunge against me hard= lea%ing me 6ith a loss 6hen , had a *rofit.

;or that reason often , 6ill mo%e to loc/ in *rofits at the first sign of strong hesitation= 6hich oftenoccurs at either = 12= 15 or 1 *i*s. , am not sure the reason for those figures and ha%e no hard data to *ro%e them= 7ut those are the areas , ha%e noticed in my trading. ou ma notice other areas. ;eel freeto learn to feel4 this *art of the strateg on our o6n. ,t is a7out our *ersonal ris/ and confidenceafter all.

,f a trades runs strong= , sim*l trail the sto* as *re%iousl descri7ed.

ou can ma/e this a lot more com*licated= 7ut it's not necessar. (emem7er the goal is to 7econsistent= not hugel accurate. ,f ou consistentl loc/ed in onl *i*s *er trade and made threetrades a da= ou 6ould still ha%e a million dollars in a 7it o%er a ear.

D" N"T get greed here -se this to mitigate ris/ and to ma<imiEe our trading C"N$,$T#NC=ma<imiEing *rofits 6ill come 6ith e<*erience. ,t is more im*ortant to 7e consistent than to ma/e hugegains each time.



1a)e It +ours !

No6 comes the reall fun *art. Ma/e it ours This= all of this to this *oint= 6as to get ou to 6hereou could 7e consistent and that is the "NL goal of this manual. A sim*le 6a to see4 and ta/e the

trades 6ith clear signals4 to achie%e consistenc.

"nce ou get here= the fun reall 7egins. No6 ou can *la 6ith anthing ou 6ant to= as long as ou/ee* consistent 6ith our trading. Ne%er uit *rinting mone. That's right= *rinting mone. That's6hat trading is all a7out.

Learning a strateg to the *oint of it 7oring ou immensel. ,f ou are not 7ored= ou ha%e not 7ecomeconsistent et. "nce ou do= the dollar amounts 6on't 7other ou. The num7er of *i*s 6on't im*ressou. !hat 6ill im*ress ou is the freedom that a good strong income 7rings.

, remem7er the first time , *aid cash for m car= m daughter's car= m girlfriend's car= her daughter's

car and m house. All of it in the same *art of the same ear. !hat an amaEing sense of freedomT+AT is the goal of trading= not sho6 7oating a7out the huge gains= 7ut the 7oring= stead= consistentgro6th of great 6ealth.

"nce ou start to 7ecome consistent= ou 6ill 7egin to see4 and recogniEe good= solid *rice setu*salmost 6ithout loo/ing to find them. The goal of all trading is to 7e a7le to sit do6n at a screen and/no6 in a fe6 moments 6here in the scheme4 of *rice action ou are and if ou ha%e a trade no6= orone 7eginning to setu*.

;rom there= ou can modif this or an other strateg ou 6ant to to ma/e things e<citing= if ou neede<citement in our trading= ?ust remem7er /ee* one %er large account after ou gro6 it from 6hich

ou har%est mone from the mar/ets. Then 7e as e<cited as ou 6ant 6ith much smaller accounts.

!ho /no6s= ou might find and *ro7a7l 6ill a strateg that is 7etter than this one and 6hich fitsour *ersonalit much 7etter. Then ou can reall 7egin to ha%e fun trading.

God 7less.



A 4ew Lie EFam.les

The follo6ing are e<am*les of real entries. These are 7 no means e<hausti%e. There are lots and lotsof good e<am*les on the ;ore<;actor thread titled= The Dance.4 lease %isit that thread for an ne6

%ersions of this strateg's manual= tools= *rofiles or tem*lates.

Touch Trade o&& the -0<0B lines: comments on the charts



Touch Trade o&& the (B E1A: comments on the images below



More trades:



NeFt eries o& three: images



NeFt eries: o& three images



Once I eFited2 the trade then ran on &or another 0B .i.s"



Constrainment entries: The first is a 1) #MA constrainment entr the second a 35 $MA entr.

1) #MA constrainment entr



35 constrainment entr:



A 4ine Tuning EFam.le:

the simple dance

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