Оглавление
Christopher Weaver. 4 Keys to Profitable Forex Trend Trading
Publishing details
Preface. What this book covers
Who this book is for
Notes on charts
Introduction
Figure 0.1: major trends in EUR/USD
Key 1. Trend Lines
The Theory. Primary strength: tells you whether to buy or to sell
Some practicalities
Basic trend line characteristics
Figure 1.1: example of a simple, single-sided trend line
Figure 1.2: example of a simple, single-sided trend line
Trend line types
Single-sided trend lines
Double-sided trend lines
Figure 1.3: example of a double-sided trend line
Figure 1.4: example of a double-sided trend line
Figure 1.5: example of multiple double-sided trend lines
Figure 1.6: example of a double-sided trend line
Major trend lines
Figure 1.7: example of a downward moving currency pair
Figure 1.8: example of a single-sided trend line
Figure 1.9: example of a double-sided trend line
Minor trend lines
Figure 1.10: example of a double and single-sided trend line on the same chart
Figure 1.11: example of double and single-sided trend lines with minor counter trend lines
Figure 1.12: example of an upward moving currency pair
Figure 1.13: example of a single-sided trend line
Figure 1.14: example of a major, double-sided trend line
Figure 1.15: example of double and single-sided trend lines with counter minor trend lines
Figure 1.16: example of a busy chart
Summary
Moving averages
Figure 1.17: example of moving average and price relationship
Figure 1.18: example of moving average and price relationship
Trend line projection
Figure 1.19: example of projected trend lines
Trend line zones
Figure 1.20: example of projected trend lines creating zones
Figure 1.21: example of price action without trend lines
Figure 1.22: example of projected trend lines
Figure 1.23: example of projected trend lines creating zones
Figure 1.24: example of price action without trend lines
Figure 1.25: example of projected trend lines
Figure 1.26: example of projected trend lines creating zones
Figure 1.27: example of an additional zone created by a further trend line
Summary
Entry and Exit Strategies
1. Trend line bounce strategy
Figure 1.28: price action without trend lines
Figure 1.29: projected trend lines creating zones
Entry
Figure 1.30: anticipated entry
Figure 1.31: actual entry
Entry summary
Exit – Risk
Figure 1.32: options for the placement of the stop loss
Exit – Target
Figure 1.33: target
Figure 1.34: a support level that is consistent with the target
Figure 1.35: entry, stop loss and target of the trade as well as the outcome
Summary
Another example
Figure 1.36: price action without trend lines
Figure 1.37: projected trend lines creating zones
Figure 1.38: anticipated entry
Figure 1.39: actual entry
Figure 1.40: entry, stop loss and target of the trade
Figure 1.41: support level that is consistent with the stop loss
Figure 1.42: outcome of the trade
Summary
2. Trend line break strategy
Entry
Figure 1.43: price action without trend lines
Figure 1.44: projected trend lines creating zones
Figure 1.45: entry
Summary
Exit – Risk
Figure 1.46: options for the placement of the stop loss
Exit – Target
Figure 1.47: target
Figure 1.48: entry, stop loss and target of the trade
Figure 1.49: outcome of the trade
Summary
Key 1 Summary
Key 2 . Channels
The Theory. Primary strength: creates a trending range
Channel characteristics
Figure 2.1: basic channel
Figure 2.2: example of price action without the channel lines
Figure 2.3 example of single-sided trend line forming the top of the channel
Figure 2.4: the channel revealed through parallel trend lines
Figure 2.5: horizontal non-trending chart
Figure 2.6: price action action
Figure 2.7: price action with a single sided upward trend line
Figure 2.8: channel revealed by two parallel trend lines
Channel types
Major channel
Figure 2.9: example of downward pointing channel
Figure 2.10: example of upward pointing channel
Figure 2.11: example of downward pointing channel
Figure 2.12: example of upward pointing channel
Minor channels
Agreeing minor channels
Figure 2.13: example of major downward pointing channel
Figure 2.14: major downward channel with minor agreeing channel
Figure 2.15: minor agreeing channel within major channel
Figure 2.16: example of major upward channel
Figure 2.17: minor agreeing channel within major upward channel
Figure 2.18: major channel with minor agreeing channel
Figure 2.19: example of exiting based on the price action relationship with the major and minor agreeing channels
Figure 2.20: upward major channel with minor agreeing channel
Figure 2.21: example of exiting based on the price action relationship with the major and minor agreeing channels
Disagreeing minor channels
Figure 2.22: example of major downward pointing channel
Figure 2.23: example of major downward channel with disagreeing minor channel
Figure 2.24: major upward pointing channel
Figure 2.25: major channel with minor disagreeing channel
Figure 2.26: major channel with minor disagreeing channel
Figure 2.27: example of entering based on the price action relationship with the major and minor disagreeing channels
Figure 2.28: major channel with minor disagreeing channel
Figure 2.29: example of entering based on the price action relationship with the major and minor disagreeing channels
Channel zone projection
Figure 2.30: example of channel projection
Figure 2.31: example of zones created by extended channel lines
Breakdown zone
Standard zone
Overextended zone
Figure 2.32: example of zones created by extended channel lines
Entry and Exit Strategies
1. Channel bounce strategy
Entry
Figure 2.33: example channel for the strategy
Figure 2.34: zones created by channel lines
Figure 2.35: close up of the anticipated entry for the channel bounce strategy
Figure 2.36: exact entry for the example
Exit – Risk
Figure 2.37: option one for stop loss placement
Figure 2.38: option two for stop loss placement
Exit – Target
Figure 2.39: target option one
Figure 2.40: target option two
Figure 2.41: example of option one for both stop loss and target price
Figure 2.42: example of trade hitting target
Figure 2.43: example of downward pointing channel
Figure 2.44: projected zones created by channel lines
Figure 2.45: example of stop loss and target prices
Figure 2.46: short entry
Figure 2.47: trade reaching target
2. Channel break strategy
Figure 2.48: example for the channel break strategy
Entry
Figure 2.49: example of zones created by the extended channel lines
Figure 2.50: entry
Exit – Risk
Figure 2.51: location of stop loss
Exit – Target
Figure 2.52: two target options
Figure 2.53: example chart
Figure 2.54: projected zones
Figure 2.55: entry
Figure 2.56: stop loss and target
Figure 2.57: trade reaching target
Key 2 Summary
Key 3. Fibonacci Retracement Levels
The Theory. Primary strength: reveals hidden support/resistance levels
Fibonacci retracement level characteristics
Figure 3.1: example of Fibonacci levels
Figure 3.2: example of Fibonacci levels
Key retracement levels
Figure 3.3: natural Fibonacci levels
Figure 3.4: natural Fibonacci levels
Fibonacci types
Major Fibonacci
Figure 3.5: price action with Fibonacci levels
Figure 3.6: price action with Fibonacci levels
Minor Fibonacci
Figure 3.7: price action with Fibonacci levels
Figure 3.8: Fibonacci retracement levels stretched across price action
Overlapping Fibonacci levels
Figure 3.9: highlighted 38.2% Fibonacci retracement level
Figure 3.10: highlighted overlapping 50% Fibonacci level
Figure 3.11: price responding to the overlapping Fibonacci retracement level
Figure 3.12: highlighted 38.2% Fibonacci retracement level
Figure 3.13: highlighted overlapping Fibonacci retracement level
Figure 3.14: price responding to the overlapping Fibonacci retracement level
Figure 3.15: highlighted 38.2% Fibonacci retracement level
Figure 3.16: highlighted overlapping Fibonacci retracement levels
Figure 3.17: price responding to the overlapping Fibonacci retracement levels
Figure 3.18: highlighted 38.2% Fibonacci retracement level
Figure 3.19: overlapping Fibonacci retracement levels
Figure 3.20: price responding to overlapping Fibonacci retracement levels
Important end of day Fibonacci levels
Figure 3.21: highlighted 61.8% Fibonacci retracement level
Figure 3.22: the highlighted overlapping Fibonacci retracement level
Figure 3.23: price responding to the overlapping Fibonacci level
Figure 3.24: two possible targets
Important intraday Fibonacci levels
Figure 3.25: highlighted 50% Fibonacci retracement level
Figure 3.26: the highlighted overlapping Fibonacci retracement level
Figure 3.27: price action responding to the overlapping Fibonacci retracement level
Entry and Exit Strategies
1. Fibonacci bounce strategy
Entry
Figure 3.28: highlighted 78.6% Fibonacci retracement level on example chart
Figure 3.29: close up of entry
Figure 3.30: exact entry price revealed
Exit – Risk
Figure 3.31: option one stop loss placement
Figure 3.32: option two stop loss placement
Exit – Target
Figure 3.33: example of target
Figure 3.34: example of entry, both stop loss options and target as it is reached
Figure 3.35: highlighted 78.6% Fibonacci retracement level on example chart
Figure 3.36: exact entry
Figure 3.37: stop loss options
Figure 3.38: target
Figure 3.39: trade reaching target
2. Fibonacci break strategy
Figure 3.40: initial example image
Figure 3.41: highlighted key Fibonacci level
Entry
Figure 3.42: entry
Exit – Risk
Figure 3.43: stop loss option one
Figure 3.44: stop loss option two
Exit – Target
Figure 3.45: target option one
Figure 3.46: target option two
Figure 3.47: trade reaching target option one
Figure 3.48: example chart revealing visual flow of the price action
Figure 3.49: highs and lows used to determine Fibonacci retracement levels
Figure 3.50: highlighted 38.2% Fibonacci retracement level
Figure 3.51: entry
Figure 3.52: stop loss option one
Figure 3.53: stop loss option two
Figure 3.54: target option one
Figure 3.55: target option two
Figure 3.56: trade reaching target one
Figure 3.57: trade reaching target two
Key 3 Summary
Key 4 . Symmetrical Triangles
The Theory. Primary strength: clear message – indecision
Symmetrical triangle characteristics
Figure 4.1: price action for example of a symmetrical triangle
Figure 4.2: partial symmetrical triangle
Figure 4.3: example of a symmetrical triangle
Figure 4.4: price action for example of a symmetrical triangle
Figure 4.5: symmetrical triangle
Symmetrical triangle types
Major symmetrical triangles
Figure 4.6: price action for example of a symmetrical triangle
Figure 4.7: symmetrical triangle
Figure 4.8: price breaking out of a symmetrical triangle in the direction of the trend
Figure 4.9: price action for symmetrical triangle example
Figure 4.10: example of a symmetrical triangle
Minor symmetrical triangles
Figure 4.11: price action for symmetrical triangle example
Figure 4.12: example of a symmetrical triangle
Figure 4.13: price action breaking out of the symmetrical triangle
Figure 4.14: price action for symmetrical triangle example
Figure 4.15: symmetrical triangle
Figure 4.16: price action breaking out of the symmetrical triangle
Symmetrical triangle zone projection
Figure 4.17: labelled zones created by the projected lines of the symmetrical triangle
Figure 4.18: zone 1
Figure 4.19: zone 2
Figure 4.20: zone 3
Figure 4.21: zones 1, 2 and 3 in an uptrend
Entry and Exit Strategies
1. Symmetrical triangle bounce strategy
Entry
Figure 4.22: symmetrical triangle for trade example
Figure 4.23: zoomed symmetrical triangle
Figure 4.24: entry for symmetrical triangle bounce strategy
Exit – Risk
Figure 4.25: stop loss placement
Exit – Target
Figure 4.26: target placement
Figure 4.27: location of entry, stop loss and target for trade
Figure 4.28: example of when to move stop loss to breakeven
Figure 4.29: trade reaching target
Figure 4.30: example chart
Figure 4.31: entry
Figure 4.32: stop loss placement
Figure 4.33: target placement
Figure 4.34: example of when to move stop loss to breakeven
Figure 4.35: trade reaching target
2. Symmetrical triangle break strategy
Entry
Figure 4.36: example chart
Figure 4.37: entry
Exit – Risk
Figure 4.38: stop loss placement
Exit – Target
Figure 4.39: target placement
Figure 4.40: trade reaching target
Figure 4.41: example chart
Figure 4.42: entry
Figure 4.43: stop loss placement
Figure 4.44: target placement
Figure 4.45: entry, stop loss and target levels
Key 4 Summary
Using the Keys Effectively
Which currency pairs should we trade?
Figure 5.1: chart with exponential moving averages to determine trend
Figure 5.2: addition of trend line to help determine trend
Figure 5.3: chart with trend line and exponential moving averages
Figure 5.4: chart with trend line and exponential moving averages
Figure 5.5: chart with trend line and exponential moving averages
Figure 5.6: chart with exponential moving averages
Figure 5.7: chart with exponential moving averages and levels of support and resistance
Figure 5.8: chart with trend line and exponential moving averages
Figure 5.9: chart with trend line and exponential moving averages
Figure 5.10: chart with trend line and exponential moving averages
Figure 5.11: chart with trend line and exponential moving averages
Figure 5.12: chart with exponential moving averages to determine trend
Figure 5.13: chart with exponential moving averages and levels of support and resistance
The trend strength of the cross rates
Figure 5.14: chart with exponential moving averages to determine trend
Figure 5.15: chart with exponential moving averages to determine trend
Figure 5.16: chart with exponential moving averages to determine trend
The locked chart
Multiple key confirmations
Why are multiple confirmations so powerful?
Deciding which key to turn?
Examples of multiple key confirmations
Figure 5.17: example chart of raw price action
Figure 5.18: example chart with trend line
Figure 5.19: example chart with Fibonacci retracement levels
Figure 5.20: example chart with symmetrical triangle revealed
Figure 5.21: example chart with trend line
Figure 5.22: example chart with Fibonacci retracement levels
Figure 5.23: example chart with symmetrical triangle revealed
Figure 5.24: the trade outcome
Figure 5.25: another option of how to manage this trade based on Fibonacci retracement levels
Figure 5.26: trade reaching the 0% Fibonacci retracement level
Figure 5.27: another option of how to manage this trade based on support principles
Conclusion
