Forex Profit Hawk
FOREXOMETRY.COM Presents
Forex Profit Hawk
Forexometry © Published by Alaziac Trading CC Suite 509, Private Bag X503 Northway, 4065, KZN, ZA www.forexometry.com Copyright © 2014 by Alaziac Trading CC, KZN, ZA Reproduction or translation of any part of this work by any means, electronic or mechanical, including photocopying, beyond that permitted by the copyright law, without permission of the publisher, is unlawful. Trademarks: Alaziac Trading CC, Forex Profit Hawk, Forexometry
RISK DISCLOSURE STATEMENT / DISCLAIMER AGREEMENT Trading any financial market involves risk. This report and all and any of its contents are neither a solicitation nor an offer to Buy/Sell any financial market. The contents of this material are for general information and educational purposes only (contents shall also mean the website http://www.forexometry.com/ or any website the content is hosted on, and any email correspondence or newsletters or postings related to such website). Every effort has been made to accurately represent this product and its potential. There is no guarantee that you will earn any money using the techniques, ideas and software in these materials. Examples in these materials are not to be interpreted as a promise or guarantee of earnings. Earning potential is entirely dependent on the person using our product, ideas and techniques. We do not purport this to be a “get rich scheme.” Although every attempt has been made to assure accuracy, we do not give any express or implied warranty as to its accuracy. We do not accept any liability for error or omission. Examples are provided for illustrative purposes only and should not be construed as investment advice or strategy. No representation is being made that any account or trader will or is likely to achieve profits or losses similar to those discussed in this report or anywhere on http://www.forexometry.com/. Past performance is not indicative of future results. By purchasing any content, subscribing to our mailing list or using the website or contents of the website or materials provided herewith, you will be deemed to have accepted these terms and conditions in full as appear also on our site, as do our full earnings disclaimer and privacy policy and CFTC disclaimer and rule 4.41 to be read herewith. So too, all the materials contained within this course, including this manual, whether they appear on our domain(s) or are in physical form, are protected by copyright. "Warning: The unauthorized reproduction or distribution of this copyrighted work is illegal. Criminal copyright infringement, including infringement without monetary gain, is investigated by the authorities and is punishable with imprisonment and a fine." We reserve all our rights in this regard. Alaziac Trading CC, in association with http://www.forexometry.com/, the website, content, and its representatives do not and cannot give investment advice or invite customers or readers to engage in investments through this course or any part of it. The information provided in this content is not intended for distribution to, or use by any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation or which would subject us to any registration requirement within such jurisdiction or country. Hypothetical performance results have many inherent limitations, some of which are mentioned below. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. In fact, there are frequently sharp differences between hypothetical performance results and actual results subsequently achieved by any particular trading program and method. One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk and no hypothetical trading record can completely account for the impact of financial risk in actual trading. For example, the ability to withstand losses or to adhere to a particular trading program or system in spite of the trading losses are material points that can also adversely affect trading results. There are numerous other factors related to the market in general or to the implementation of any specific trading program, which cannot be fully accounted for in the preparation of hypothetical performance results. All of which can adversely affect actual trading results. We reserve the right to change these terms and conditions without notice. You can check for updates to this disclaimer at any time by visiting http://www.forexometry.com/ Governing law: this policy and the use of this report/eBook, provided in any form, and any content on the website are governed by the laws of the Republic of South Africa. Further details on this are found under the Terms and Conditions on our site. Please ensure you read and agree with all Terms and Conditions as set out on our site before using any of the materials. Your use and reliance on the materials is based on your acceptance of such Terms and Conditions and policies as appear on the site.
www.Forexometry.com
Forex Profit Hawk Hi guys! Today, I want to show you a Fractal Lines indicator which I call the Forex Profit Hawk. This I had created by one of the best programmers in Forex and is something many traders can only wish for! Let’s begin with the origins of fractals. The Fractals indicator was invented by Bill Williams. It is simple yet effective, and it could be used as a standalone indicator or in combination with other technical indicators. Every Fractal consists of a pattern of 5 or more bars/candles. Fractals show the possible reversal points in the market, and they could be either Up or Down. We have an Up Fractal when the middle bar is the highest bar, preceded and followed by two lower bars on each side. The middle bar has the highest high and there are two lower highs on each side (Image 1). We have a Down Fractal if the middle bar has the lowest low, and it is preceded and followed by two higher lows on each side (Image 2). Sometimes, Up and Down Fractals share their price bars as shown on the last image (Image 3).
Image 1
Image 2 Forex Profit Hawk
Image 3 3
www.Forexometry.com Now let’s move on to the Forex Profit Hawk and how it could be used. The next image (Image 4) shows you what this indicator looks like. It consists of an Upper Blue line and a Lower Red line.
Image 4 This is way more practical and useful than the regular Fractals indicator and in the next section of this report, I will show you why.
Forex Profit Hawk
4
www.Forexometry.com
Uses Of The Forex Profit Hawk I. Support & Resistance Breakouts Fractals represent the points where price failed to hold resulting in a reversal. When the price breaks previous fractal levels, this means that a new trend strength arises, thus a new trading opportunity. These points represent momentum support and resistance levels. The simplest way to use the Fractal Lines indicator is to identify when these levels are broken and place trades in that direction. The entry rules are pretty simple: Buy Trade Rules 1. When a candle crosses and closes above the Resistance line, open a buy trade. 2. Set the stop loss a few pips below the Support line. 3. Set the take profit at least 2 times the stop loss, or close the trade when a candle crosses the Resistance line again in the opposite direction. Sell Trade Rules 1. When a candle crosses and closes below the Support line, enter a sell trade. 2. Set the stop loss a few pips above the Resistance line. 3. Set the take profit at least 2 times the stop loss, or close the trade when a candle crosses the Support line again in the opposite direction. When the price moves in our favor equal to the stop loss that has been set, move the stop loss to breakeven. This way, we are in a free trade. If the price retraces or reverses, the worst scenario we can have is to be stopped at our entry price and we wouldn’t lose anything. Another technique that could be used here, especially if we decide to babysit our trade and close it when the price crosses the Support and Resistance lines in the opposite side, is to trail the stop loss. We can move it behind the price using the same distance as the stop loss, so we can secure some profits no matter what the market will do. I will show you exactly how this is done in the next page.
Forex Profit Hawk
5
www.Forexometry.com Here’s an example of a long trade using the Support and Resistance levels the Forex Profit Hawk plots on the chart (Image 5).
Image 5 At point A, the price breaks above the blue Upper Resistance line. The close of that candle is our signal to go long, so as soon as the candle closes above the Resistance line at point B, the buy order is placed. The stop loss for this long entry is set a few pips below the Support line at point C. The take profit is set at point D, which is twice the distance of the stop loss. Another option to close the trade is at point E, where a candle crosses the Resistance line again in the opposite side. If we would trail our stop loss, we would have waited for price to reach the same distance as the stop loss. So when price reaches point F, the stop loss is moved to breakeven at point B. When the price reaches point D, the stop loss is moved to point F. When reaches point G, the stop loss is moved to point D. We’ll keep doing this until we get stopped out… in profit of course.
Forex Profit Hawk
6
www.Forexometry.com II. Connecting Points For Trend Lines The Forex Profit Hawk shows the best swing high and low points to draw a trend line. This gives us some advantage as most of the other traders on the market are using this same high and low swing points to draw their trend lines too. Look for the points where the Fractal Line touches the price bars and draw your trendlines on them. In the next image (Image 6), you’ll see how easy it is to draw trend lines based on these points.
Image 6 As we see on Image 6 above, points A and B are the swing low points where the Lower Fractal Line touches the price candles. This is where an Up trendline can be applied. Points C, D and E are the swing high points where the Upper Fractal Line connects with the price bars. These points are where we’ll draw our Down trendline. As you can see, it is really easy to use the Fractal Lines for drawing our trend lines on our charts.
Forex Profit Hawk
7
www.Forexometry.com III. Trend Confirmation The Forex Profit Hawk can help confirm the trend direction. The price tends to break above/below the Fractal Line in the direction of the trend. In an uptrend, you’ll notice that price tends to break above the Up Fractal Lines than below Down Fractal Lines. In the example below, the Uptrend is formed from point A to point B. Price does not break below any Down Fractal Line at this range.
Image 7 The opposite is true for a downtrend. When we will see more Down Fractal Lines broken than Upper Fractal Lines, then we are in a downtrend. As price moves in the direction of the trend, it will keep breaking across the Fractal Lines in the same direction of the trend. So, a failure to break the Fractal Line in the same direction of the trend is the first sign that price is in consolidation or is possibly changing the trend direction. When two consecutive Fractal lines are broken in the opposite direction of the trend, then the change in the trend is confirmed. From a Downtrend, a new Uptrend emerges when price breaks the Upper Fractal Line twice. Later, when price fails to cross an Upper Fractal Line and it crosses the Lower Fractal lines twice, we have a new Downtrend. Forex Profit Hawk
8
www.Forexometry.com IV. Price Consolidation Warning When the price fails to break the Fractal Lines and it just bounces from one line to the other, the price is in a period of consolidation. During periods like these, we can expect a ranging price movement, and there will not be a clear trend until two consecutive Fractal Line breaks occur in the same direction. In the image below, you can see a period of consolidation.
Image 8 Points A and B represent Lower and Upper Fractal Lines. At point C, the price fails to break the previous point A. It just turns to the opposite side where it fails to break point B and again moves to the opposite side. In these times, price is in a consolidation period. It is just ranging until we can see two consecutive breaks of one Fractal Line.
Forex Profit Hawk
9
www.Forexometry.com As I showed you today, the Forex Profit Hawk gives you Fractal Lines that are used for many purposes in trading. The best thing about it is that it can be used as a standalone trading system as I explained in the beginning. Apply this indicator to your charts and practice what I’ve shown you in this report. I hope find this information helpful. Enjoy! Sincerely,
P.S. If you have any questions, please don’t hesitate to email me here: [email protected]
Forex Profit Hawk
10
Forex Profit Hawk
Forexometry © Published by Alaziac Trading CC Suite 509, Private Bag X503 Northway, 4065, KZN, ZA www.forexometry.com Copyright © 2014 by Alaziac Trading CC, KZN, ZA Reproduction or translation of any part of this work by any means, electronic or mechanical, including photocopying, beyond that permitted by the copyright law, without permission of the publisher, is unlawful. Trademarks: Alaziac Trading CC, Forex Profit Hawk, Forexometry
RISK DISCLOSURE STATEMENT / DISCLAIMER AGREEMENT Trading any financial market involves risk. This report and all and any of its contents are neither a solicitation nor an offer to Buy/Sell any financial market. The contents of this material are for general information and educational purposes only (contents shall also mean the website http://www.forexometry.com/ or any website the content is hosted on, and any email correspondence or newsletters or postings related to such website). Every effort has been made to accurately represent this product and its potential. There is no guarantee that you will earn any money using the techniques, ideas and software in these materials. Examples in these materials are not to be interpreted as a promise or guarantee of earnings. Earning potential is entirely dependent on the person using our product, ideas and techniques. We do not purport this to be a “get rich scheme.” Although every attempt has been made to assure accuracy, we do not give any express or implied warranty as to its accuracy. We do not accept any liability for error or omission. Examples are provided for illustrative purposes only and should not be construed as investment advice or strategy. No representation is being made that any account or trader will or is likely to achieve profits or losses similar to those discussed in this report or anywhere on http://www.forexometry.com/. Past performance is not indicative of future results. By purchasing any content, subscribing to our mailing list or using the website or contents of the website or materials provided herewith, you will be deemed to have accepted these terms and conditions in full as appear also on our site, as do our full earnings disclaimer and privacy policy and CFTC disclaimer and rule 4.41 to be read herewith. So too, all the materials contained within this course, including this manual, whether they appear on our domain(s) or are in physical form, are protected by copyright. "Warning: The unauthorized reproduction or distribution of this copyrighted work is illegal. Criminal copyright infringement, including infringement without monetary gain, is investigated by the authorities and is punishable with imprisonment and a fine." We reserve all our rights in this regard. Alaziac Trading CC, in association with http://www.forexometry.com/, the website, content, and its representatives do not and cannot give investment advice or invite customers or readers to engage in investments through this course or any part of it. The information provided in this content is not intended for distribution to, or use by any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation or which would subject us to any registration requirement within such jurisdiction or country. Hypothetical performance results have many inherent limitations, some of which are mentioned below. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. In fact, there are frequently sharp differences between hypothetical performance results and actual results subsequently achieved by any particular trading program and method. One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk and no hypothetical trading record can completely account for the impact of financial risk in actual trading. For example, the ability to withstand losses or to adhere to a particular trading program or system in spite of the trading losses are material points that can also adversely affect trading results. There are numerous other factors related to the market in general or to the implementation of any specific trading program, which cannot be fully accounted for in the preparation of hypothetical performance results. All of which can adversely affect actual trading results. We reserve the right to change these terms and conditions without notice. You can check for updates to this disclaimer at any time by visiting http://www.forexometry.com/ Governing law: this policy and the use of this report/eBook, provided in any form, and any content on the website are governed by the laws of the Republic of South Africa. Further details on this are found under the Terms and Conditions on our site. Please ensure you read and agree with all Terms and Conditions as set out on our site before using any of the materials. Your use and reliance on the materials is based on your acceptance of such Terms and Conditions and policies as appear on the site.
www.Forexometry.com
Forex Profit Hawk Hi guys! Today, I want to show you a Fractal Lines indicator which I call the Forex Profit Hawk. This I had created by one of the best programmers in Forex and is something many traders can only wish for! Let’s begin with the origins of fractals. The Fractals indicator was invented by Bill Williams. It is simple yet effective, and it could be used as a standalone indicator or in combination with other technical indicators. Every Fractal consists of a pattern of 5 or more bars/candles. Fractals show the possible reversal points in the market, and they could be either Up or Down. We have an Up Fractal when the middle bar is the highest bar, preceded and followed by two lower bars on each side. The middle bar has the highest high and there are two lower highs on each side (Image 1). We have a Down Fractal if the middle bar has the lowest low, and it is preceded and followed by two higher lows on each side (Image 2). Sometimes, Up and Down Fractals share their price bars as shown on the last image (Image 3).
Image 1
Image 2 Forex Profit Hawk
Image 3 3
www.Forexometry.com Now let’s move on to the Forex Profit Hawk and how it could be used. The next image (Image 4) shows you what this indicator looks like. It consists of an Upper Blue line and a Lower Red line.
Image 4 This is way more practical and useful than the regular Fractals indicator and in the next section of this report, I will show you why.
Forex Profit Hawk
4
www.Forexometry.com
Uses Of The Forex Profit Hawk I. Support & Resistance Breakouts Fractals represent the points where price failed to hold resulting in a reversal. When the price breaks previous fractal levels, this means that a new trend strength arises, thus a new trading opportunity. These points represent momentum support and resistance levels. The simplest way to use the Fractal Lines indicator is to identify when these levels are broken and place trades in that direction. The entry rules are pretty simple: Buy Trade Rules 1. When a candle crosses and closes above the Resistance line, open a buy trade. 2. Set the stop loss a few pips below the Support line. 3. Set the take profit at least 2 times the stop loss, or close the trade when a candle crosses the Resistance line again in the opposite direction. Sell Trade Rules 1. When a candle crosses and closes below the Support line, enter a sell trade. 2. Set the stop loss a few pips above the Resistance line. 3. Set the take profit at least 2 times the stop loss, or close the trade when a candle crosses the Support line again in the opposite direction. When the price moves in our favor equal to the stop loss that has been set, move the stop loss to breakeven. This way, we are in a free trade. If the price retraces or reverses, the worst scenario we can have is to be stopped at our entry price and we wouldn’t lose anything. Another technique that could be used here, especially if we decide to babysit our trade and close it when the price crosses the Support and Resistance lines in the opposite side, is to trail the stop loss. We can move it behind the price using the same distance as the stop loss, so we can secure some profits no matter what the market will do. I will show you exactly how this is done in the next page.
Forex Profit Hawk
5
www.Forexometry.com Here’s an example of a long trade using the Support and Resistance levels the Forex Profit Hawk plots on the chart (Image 5).
Image 5 At point A, the price breaks above the blue Upper Resistance line. The close of that candle is our signal to go long, so as soon as the candle closes above the Resistance line at point B, the buy order is placed. The stop loss for this long entry is set a few pips below the Support line at point C. The take profit is set at point D, which is twice the distance of the stop loss. Another option to close the trade is at point E, where a candle crosses the Resistance line again in the opposite side. If we would trail our stop loss, we would have waited for price to reach the same distance as the stop loss. So when price reaches point F, the stop loss is moved to breakeven at point B. When the price reaches point D, the stop loss is moved to point F. When reaches point G, the stop loss is moved to point D. We’ll keep doing this until we get stopped out… in profit of course.
Forex Profit Hawk
6
www.Forexometry.com II. Connecting Points For Trend Lines The Forex Profit Hawk shows the best swing high and low points to draw a trend line. This gives us some advantage as most of the other traders on the market are using this same high and low swing points to draw their trend lines too. Look for the points where the Fractal Line touches the price bars and draw your trendlines on them. In the next image (Image 6), you’ll see how easy it is to draw trend lines based on these points.
Image 6 As we see on Image 6 above, points A and B are the swing low points where the Lower Fractal Line touches the price candles. This is where an Up trendline can be applied. Points C, D and E are the swing high points where the Upper Fractal Line connects with the price bars. These points are where we’ll draw our Down trendline. As you can see, it is really easy to use the Fractal Lines for drawing our trend lines on our charts.
Forex Profit Hawk
7
www.Forexometry.com III. Trend Confirmation The Forex Profit Hawk can help confirm the trend direction. The price tends to break above/below the Fractal Line in the direction of the trend. In an uptrend, you’ll notice that price tends to break above the Up Fractal Lines than below Down Fractal Lines. In the example below, the Uptrend is formed from point A to point B. Price does not break below any Down Fractal Line at this range.
Image 7 The opposite is true for a downtrend. When we will see more Down Fractal Lines broken than Upper Fractal Lines, then we are in a downtrend. As price moves in the direction of the trend, it will keep breaking across the Fractal Lines in the same direction of the trend. So, a failure to break the Fractal Line in the same direction of the trend is the first sign that price is in consolidation or is possibly changing the trend direction. When two consecutive Fractal lines are broken in the opposite direction of the trend, then the change in the trend is confirmed. From a Downtrend, a new Uptrend emerges when price breaks the Upper Fractal Line twice. Later, when price fails to cross an Upper Fractal Line and it crosses the Lower Fractal lines twice, we have a new Downtrend. Forex Profit Hawk
8
www.Forexometry.com IV. Price Consolidation Warning When the price fails to break the Fractal Lines and it just bounces from one line to the other, the price is in a period of consolidation. During periods like these, we can expect a ranging price movement, and there will not be a clear trend until two consecutive Fractal Line breaks occur in the same direction. In the image below, you can see a period of consolidation.
Image 8 Points A and B represent Lower and Upper Fractal Lines. At point C, the price fails to break the previous point A. It just turns to the opposite side where it fails to break point B and again moves to the opposite side. In these times, price is in a consolidation period. It is just ranging until we can see two consecutive breaks of one Fractal Line.
Forex Profit Hawk
9
www.Forexometry.com As I showed you today, the Forex Profit Hawk gives you Fractal Lines that are used for many purposes in trading. The best thing about it is that it can be used as a standalone trading system as I explained in the beginning. Apply this indicator to your charts and practice what I’ve shown you in this report. I hope find this information helpful. Enjoy! Sincerely,
P.S. If you have any questions, please don’t hesitate to email me here: [email protected]
Forex Profit Hawk
10
