Dozens of chart examples and explanations will guide you each step of the way and allow the reader to "look over the shoulder" of a professional trader hard at work at his craft. This book provides traders with step-by-step methodologies that are based on real market tendencies. The strategies in this book are presented clearly and in detail, so that anyone who wishes to can learn how to trade like a professional.
It is written in a style that is easy to understand, so that the reader can quickly learn and use the techniques provided. From the Inside Flap: In recent years, traders have turned to the foreign exchange market expecting to capture substantial profits.
While the high availability of leverage within this arena can improve your chances of making money, ultimately the success of your endeavors depends upon how well you understand and operate within this market. Nobody knows this better than author Ed Ponsi. As a professional trader and leading educator of traders, Ponsi has developed a proven approach to trading today's forex market, and now, with Forex Patterns and Probabilities, he wants to share it with you.
While most books on trading deal with general concepts and shy away from specifics, Forex Patterns and Probabilities provides you with real-world strategies and a rare sense of clarity about the specific mechanics of currency trading that will allow you to take advantage of both trending and range-bound markets.
Written in a straightforward and accessible style, Forex Patterns and Probabilities will help you make the most of your time in this market. You'll be introduced to a variety of elements that are essential to forex trading success and discover the best ways to enter, exit, and manage trades. Dozens of chart examples and explanations will guide you each step of the way and allow you to "look over the shoulder" of a professional trader hard at work at his craft.
Divided into four comprehensive parts, this detailed guide: Explains the playing field of the forex market, using powerful metaphors that relate trading scenarios to situations in everyday life Outlines several specific trading strategies—including the FX-Ed Trend Technique—designed for trending markets Delves into a variety of non-trending trading techniques—from the volatility-based Squeeze Play to the hedge fund—inspired Interest Rate Edge—which are all based on unique market tendencies Offers an insider's view on how to emulate the behavioral patterns of successful professional traders—and how to escape the mindset of the amateur And much more Today's forex market contains some of the most profitable trading opportunities in the world.
With the practical strategies and trading methodologies found in Forex Patterns and Probabilities you can uncover these opportunities and achieve long-term financial success along the way. How to Determine If the Market is Trending. Chapter 7. The Anatomy of a Trend. Why Trends Form. Don't Fight the Trend. Chapter 8. Forex Multiple Time Frame Strategy. Why Does It Work? Combining Fibonacci and Trend.
Overbought Does Not Equal "Sell". Picking Tops and Bottoms. The Entry Signal. Placing the Stop. Getting Out. Welcome to the Real World. Tweaking the Exits. Executing the Plan. Second Guessing. Bringing It Home. The Devil's Advocate. When to Stay Out. Reloading the Trade. Fantasy vs. Phantom Signal. Temporary Success and Failure.
The Stop Run. Chapter 9. Trends Are Self-Sustaining. Difference of Opinion. Big Money at Work. The Common Denominator. Long or Short. Identifying the Trend. Filtering the Trend. The Catalyst. Volatility Stop. Comparing Apples to Apples.
ATR Calculation. The Entry. The Stop. The Trade. Don't Fish For Minnows. Back To the Trade. The News vs. Appearances Can Be Deceiving. More Than One Chance. Partial Exit Exercise. Discretionary and Strategic Exits. Faulty Wiring. Partial Exit Technique. Important Points to Consider. Final Thoughts. Chapter The Ultimate Indicator. The Price is the Key. Why Support Becomes Resistance. The Pleasure Principle and Trading. Price Action. Don't Stand in Front of a Freight Train. Keys to Intraday Breakouts.
Ascending and Descending Triangles. Trend Filter. Time of Day Filter. Flags and Pennants. Filtering Entries. The Squeeze Play. The Cycle of Volatility. Perception Moves the Market. Volatility Breakout Strategy. The Round Trip. Why Round Numbers Are Effective. Round Numbers and Forex. Using the Moving Average. The Strategy in Action. The Interest Rate Edge.
Think Like the Big Boys. Interest Rate Differentials. Here's How It Works. Changing Differentials. What's the Big Deal? Collecting Interest. Long-Term Play. Looking Ahead. The Boomerang. Fading False Breakouts. The Strategy. Setting the Parameters. Entering the Trade. Simple but Effective.
How to Achieve Spectacular Gains. Keep Your Eyes on the Road. Proper Goal Setting. Breaking Down Your Goals. Consistency Is the Key. The Forex Playing Field. Evening the Odds.