Advance Entry Signals (AES)

January 23, 2008

AES is simply an addition to Daily OzFx system. It is a method of finding entry signals for pairs which are deep in their trend.

How To Identify Pairs:

Look for pairs which have moved far from 200SMA. AC for these pair stays below or above 0 line without crossing.

Why Trade Such Pairs:

These pairs are excellent in catching big long sustainable moves. Trend is your friend until it bends

Entry Signals:

Wait for price to pull back against the trend.
Wait for Stot to cross in the direction of trend.
Wait for AC to turn green for long and red for short.

Strong Signal:

When AC is below 0 for short and above 0 for long.
When AO is the same color as new AC line.

As you can see this method is very simple and helps us get good entry points for pairs that are in a trend.

Sample Trades - Download Here

Cheers,

OzFx

Written by OzFx · Filed Under Updates

Advance Stop Loss (ASL)

January 8, 2008

Learning to place smart stop loss is essential in winning in Forex. Putting a static 100 pip stop loss may not work very well in every situation. Hence I learned some advance ways and would like to share them with you:

If price is close to recent high or low then place SL 5-10 pips above or below that point. This is very important. Prices do go back to test recent highs and lows and we need to set SL as per the recent price action. Trading on daily chart is bit tricky where such SL can be even 30-40 pips more on top of your static 100 pip SL.

Another point to take care is that don’t place SL on important boundary numbers such as 00 or 50 mark. These points are tested often and you can easily be stopped out.

Place your stop loss on odd numbers excluding 1 and 9. Never place SL on even numbers.

Believe It or Not!!!

Let me surprise some of you by saying that Brokers HUNT for your SL. That’s true. Forex is unlike Dow where everything is run by one organization and prices don’t vary from broker to broker (those broker makes money by giving you a worse fill than you would expect + commissions). Brokers in Forex can manipulate prices as they like and hence they go after your SL.

Now why brokers will want to you to loose?? Well every time you open a position, a broker opens an opposite position. So when you loose they win. They also want you trade more often, since they make money either in commission or spreads (or both). The only way they can force you to trade again is to stop you out.

Why you think brokers give out free market research and trading ideas?? If all of their traders are trading the same way then it is easier for them to take them out.

I am sure that some people would disagree (the ones working for broker J ) but it is something to think about.

So How To Beat The Brokers:

Simple, don’t place any Stop Loss. That’s right. It is not a typo. What you need is a Mental SL. You should know at price you will take your losses and set up alarms on your trading station when the price reach close to the mental SL you had in place. This can be challenging for some people but if you are lucky enough to get this working then there is nothing like it.

Hope this helps you in placing better SL from now on.

Cheers,
OzFx

Written by OzFx · Filed Under Updates