PERTANDINGAN PERTAMA, Transkripsi Seni Forex 1 1 PERTANDINGAN PERTAMA, Seni Perang Forex 2 2 BATTLE PERTAMA, Seni Forex Perang Kebanyakan pedagang tidak mengenali pertempuran pertama mereka. Tapi karena ini adalah pertempuran penglihatan, pasti menang. Jika Anda akan menang dalam trading, Anda harus mengerti bagaimana permainan ini benar-benar dimainkan. Budaya Forex menumbuhkan kepercayaan bahwa jika Anda memiliki cukup informasi, jika Anda mengelola risiko dengan baik, dan jika Anda disiplin, Anda akan menang. Itu benar BENAR. Tapi itu juga seperti memberi tahu seseorang yang kelebihan berat badan jika Anda makan dengan benar dan berolahraga, Anda akan menurunkan berat badan. Apakah itu STRATEGI untuk menurunkan berat badan No. Bila tujuan benar-benar penting, Anda akan meluangkan waktu untuk mempertimbangkan semua hal yang dapat mempengaruhi kesuksesan Anda. Bahkan ketika Anda memiliki rencana yang bagus, itu adalah titik awal. Sewaktu Anda menyusun rencana Anda, Anda menemukan informasi penting tentang diri Anda. Seperti, Anda akan merasa lebih baik tidak pergi ke toko lapar. Anda mungkin juga menemukan bahwa Anda terus makan setelah Anda tidak lagi lapar. Secara pribadi, saya menemukan bahwa meskipun saya tidak berhasil, saya tidak akan berjalan, saya akan menang, saya akan dipukuli selama satu jam di Muay Thai Kick Boxing. Go figure Ketika saya pindah dari bekas tempat tinggal saya dan tidak bisa lagi mempraktikkan disiplin yang sama, saya harus menemukan hal lain yang akan saya lakukan. Akhirnya saya menemukan bahwa saya akan berjalan tanpa henti di atas treadmill jika TV menyala. Bingo. Ketika saya datang ke perdagangan Forex di tahun 2004, keuntungan saya adalah pengalaman saya dengan selfdiscipline. Bagaimana saya mendapatkan diri saya untuk membuat pilihan yang baik Bagaimana cara saya konsisten membuat pilihan yang baik Jika tujuan kita adalah menurunkan berat badan, kesulitan terbesar kita adalah menghadapi perasaan kita. Kita menginginkan sesuatu yang tidak baik untuk kita. Hal yang sama berlaku untuk trading Forex. Anda akan tahu lebih cepat atau lambat bahwa emosi Anda akan menghalangi Anda menghasilkan uang jika Anda tidak memiliki strategi untuk membuat keputusan bagus terlepas dari emosi Anda. Jadi ini adalah pilihan pertama dan paling penting Anda. Lakukan apa yang Anda inginkan. 3 3 Atau Belajarlah membuat keputusan yang bagus terlepas dari emosi yang Anda alami. Itulah dua pilihan Anda. Keduanya tentang bagaimana perasaan Anda. Satu mudah dan tidak menghasilkan keuntungan dan kehilangan semua uang Anda. Yang kedua membutuhkan usaha dan dapat memungkinkan Anda mencapai tujuan Anda. Buat pilihan yang tepat dan Anda maju terus. Buatlah pilihan yang salah, dan akhirnya Anda mengulangi aktivitas yang sama berulang-ulang selama berbulan-bulan atau bertahun-tahun. Ini adalah definisi Einstein tentang kegilaan, tapi orang tetap melakukannya. Jika Anda siap untuk membuat pilihan yang tepat, saya menulis ini untuk Anda. Forex quotculturequot mendorong penglihatan yang tidak efektif dalam perdagangan Forex. Untuk alasan ini sangat penting bagi kesuksesan Anda yang Anda mulai dengan membaca ebook ini: 8 Hal yang Mereka Tidak Beri Tahu Tentang Trading Forex. Buku saya menjelaskan mengapa budaya Forex adalah seperti itu, mengapa pedagang kehilangan uang mereka, dan itu sama sekali tidak perlu. Ikhtisar Singkat Seni Forex Perang Forex Art of War adalah strategi holistik yang mempertimbangkan semua variabel yang berpotensi mempengaruhi kesuksesan Anda. Bagian dari strategi tersebut dimulai pada bulan Oktober, Pada bulan Maret 2010, saya mulai menguji strategi dengan para pedagang dengan sukses besar selama tahun depan. Strategi itu dan apa yang terjadi didokumentasikan di buku 232 halaman saya, Forex Art of War. Tak lama setelah menerbitkan buku saya, saya menyadari kebutuhan akan proses langkah demi langkah, dan membagi strateginya menjadi tiga tingkat. Mereka sekarang berkembang menjadi BATTLE PERTAMA, diikuti oleh SEIZE THE HIGH GROUND, diikuti oleh Sun Tzu ATURAN KETERLIBATAN. Mereka tiga tingkat. Tingkat pertama (di mana Anda sekarang) adalah tentang menjadi mahir dengan alat, bahasa, dan logika dasar. Tingkat kedua adalah tentang semua informasi dan alat pasar penting yang benar-benar akan Anda gunakan saat Anda benar-benar memulai trading untuk mendapatkan keuntungan. Tingkat ketiga adalah tentang bagaimana keputusan berisiko tinggi dibuat dan berfokus terutama pada proses memisahkan emosi Anda dari keputusan Anda. 4 4 Persiapan Pastikan untuk memeriksa kami di Facebook. Blog saya merasa bebas kepada saya dengan segala pemikiran atau pertanyaan Panduan ini dimaksudkan untuk menunjukkan kepada Anda cara tercepat dan paling efisien untuk memulai trading Forex. Saya tidak akan menjelaskan perdagangan dalam urutan tradisional. Sebagai gantinya, kita akan masuk ke dalam grafik, dan Anda bisa belajar saat Anda pergi. Informasi tersebut disajikan sesuai pesanan yang akan digunakan. Jika Anda memiliki kebutuhan, mintalah kami untuk meneruskan tautan untuk bagan, akun praktik dan platform perdagangan gratis. Kami menyertakan video yang menjelaskan penggunaannya. Tidak masalah jika Anda sudah memiliki grafik dan platform trading Anda sendiri. Forex Art of War adalah strategi holistik untuk memenangkan yang memperhitungkan segala sesuatu yang mempengaruhi kemampuan Anda untuk menghasilkan keuntungan yang konsisten. Saya menganggap buku ini (The First Battle) menjadi tingkat pertama pengetahuan, keterampilan, dan aplikasi. Sebagai ilustrasi: Sebelum Anda bisa mengekspresikan ide dalam sebuah kalimat, Anda harus bisa menulis kata-katanya. Untuk menulis kata-kata Anda harus terlebih dahulu mempelajari huruf dan aturan dasar untuk ejaan. Setelah Anda menguasai bahasa dan alat pasar, Anda kemudian dapat beralih ke tingkat kedua, yaitu logika dan teknik. Tingkat ketiga adalah di mana Anda memahami bagaimana keuntungan sebenarnya dibuat dan mencakup metode, rencana trading, evaluasi dan penyesuaian. Yang paling penting adalah tingkat ketiga, di mana Anda belajar memisahkan keputusan Anda dari emosi Anda. Untuk saat ini, latih saja dasar-dasarnya. Berikut adalah tujuan pembelajaran spesifik Level 1: Alat seperti grafik dan platform trading Kosakata seperti PIP dan logika perdagangan Stop Loss Basic yang mengajarkan tren, penghalang, masuk dan keluar Saya telah melakukan trading dan melatih orang lain selama lebih dari tujuh tahun saat ini. titik. Saya telah bekerja dengan ribuan calon pedagang, dan memiliki hak istimewa untuk bekerja dengan beberapa pedagang hebat. Saya suka apa yang saya lakukan karena itu menantang dan karena saya dapat membantu orang untuk memperbaiki diri. Orang yang berusaha untuk mencapai lebih jauh dalam hidup mereka menginspirasi saya. Ada puluhan ribu informasi yang bisa Anda pelajari tentang pasar Forex. Saya hanya akan fokus pada hal-hal penting yang tidak perlu Anda pelajari. Saya percaya 5 5 bahwa Anda tidak dapat menghasilkan banyak keuntungan sampai Anda belajar menghasilkan keuntungan. Jadi itu adalah prinsip penting yang diterapkan dalam buku ini dan pelatihan selanjutnya. Logika Dasar Sebagai pedagang, kita mengantisipasi apa yang akan terjadi di masa depan. Bagaimana kita melakukan ini Ada logika sederhana dalam trading. Logika dapat dilihat dan didefinisikan dengan berbagai cara. Saya suka menjaga hal-hal sederhana. Ketika saya mengacu pada logika, saya mengacu pada informasi dari masa lalu yang dapat digunakan untuk mengantisipasi apa yang mungkin terjadi di masa depan. Perilaku manusia bersifat berulang. Bila Anda melihat, Anda melihatnya di mana-mana. Kita cenderung berbelanja di tempat yang sama, dan membeli makanan yang sama. Kita tahu kapan lalu lintas macet di jalan raya kita. Sementara saya telah banyak menulis tentang masalah ini, cukuplah untuk mengatakan bahwa kita tidak hanya mengulangi perilaku yang sama berulang-ulang, kita mengalami kesulitan untuk mengubah tingkah laku bahkan ketika kita melakukan usaha sadar. Ingatlah perjuangan Anda terakhir kali Anda memulai diet baru atau program olahraga. Ada alasan yang lebih dalam untuk kelemahan manusiawi kita. Urutan matematis yang sama yang kita lihat di mana-mana juga ada di dalam diri kita. Itulah sebabnya kita bisa mengandalkan informasi historis untuk mengantisipasi apa yang kemungkinan akan terjadi di masa depan. Toko grosir bahkan menetapkan harga berdasarkan perilaku Anda. Ketika saya berbicara tentang pola berulang, saya tidak hanya membicarakan pola yang Anda dengar seperti tren, kepala dan bahu, pola lilin, atasan ganda, dll. Saya sedang membicarakan pola sepanjang keseluruhan proses pengambilan keputusan. Kita tahu trader suka tren perdagangan. Dimana mereka suka masuk Dimana tempat terbaik untuk anda dapatkan Dimana tempat terbaik untuk menempatkan stop loss dan profit target Ada pola (logika) untuk semua keputusan ini. Jadi, saat pembeli membeli dan menjual penjual di pasar Forex, mereka menciptakan pola. Pola ini menunjukkan kepada kita apa yang dilakukan pedagang berulang kali. Jadi ketika kita melihat pola waktu berikutnya, kita tahu apa yang akan terjadi lagi. 6 6 Forex Saya akan menjelaskan secara singkat penjelasan saya karena ada banyak hal yang Anda tidak perlu tahu. Forex adalah singkatan dari Foreign Exchange. Ini adalah pasar terbesar di dunia. Saya memikirkan uang sebagai darah kehidupan bisnis dan Forex sebagai sistem peredaran darah. Ini adalah jaringan 1000 s bank di seluruh dunia tanpa lokasi sentral. Tidak ada yang bertanggung jawab Tujuan pasar Forex adalah untuk menentukan harga wajar pertukaran antara dua mata uang. Harganya ditentukan dengan menggunakan prinsip penawaran dan permintaan. Jika ada lebih banyak pembeli pada saat tertentu, harga bergerak naik. Jika ada lebih banyak penjual, harga bergerak turun. Apa itu Forex bagiku Aliran data? Bagi saya, itu saja. Ini adalah aliran data (nyata). Data itu masuk ke perangkat lunak saya dan memberi tahu saya berapa harga yang sedang Anda lakukan. Apa lagi yang perlu saya ketahui Tidak banyak. Software Trading Software Trading mengambil data feed tentang jual-beli di seluruh dunia dan bisa digunakan dengan berbagai cara. Pada tahun 2001 Platform menjadi sangat stabil sehingga kami dapat melakukan perdagangan dari komputer pribadi kami. Jadi industri atau perdagangan Forex eceran (Anda dan saya) masih dalam masa pertumbuhan. Pialang atau dealer menyediakan sebagian besar umpan data, memetakan platform perangkat lunak dan perdagangan. Ini harus bebas biaya. Kebanyakan broker bersedia memberikan ini kepada Anda dengan harapan bahwa pada akhirnya Anda akan menukar akun live dengan mereka. Pastikan Anda hanya membuka rekening praktek, BUKAN akun live. Ada 10.000 akun latihan gratis yang tersedia, seperti kebanyakan orang lain (perhatikan bahwa kami TIDAK pialang dan tidak memiliki hubungan keuangan dengan broker). Jangan membuka akun live sampai Anda benar-benar tahu bagaimana berdagang. Jika Anda membuka akun live sebelum waktunya, meskipun Anda berniat untuk tidak menukarnya, ada kemungkinan (setidaknya) Anda akan menukarkannya dan Anda akan kehilangan semua uang Anda. Sekali lagi, pastikan Anda membaca ebook gratis saya, 8 Hal yang Mereka Tidak Katakan pada Pedagang Forex. 7 7 Saya lebih memilih Accucharts. Metatrader juga merupakan program software charting yang bagus. Anda bisa mendapatkan ini gratis dengan menghubungi saya di Bagi Anda yang adalah pengguna MAC, Anda perlu menggunakan Windows Parallels atau program seperti itu untuk memanfaatkan sepenuhnya alat yang tersedia bagi pedagang Forex. Saya tahu pengguna MAC tidak suka mendengarnya, tapi MAC hanya 10 dari pasar PC, jadi mereka yang menulis software menuliskannya untuk pasar yang lebih besar terlebih dahulu. Kabar baiknya adalah bahwa program bekerja dengan cukup baik menggunakan Parallels. Saran saya untuk pengguna MAC adalah mendapatkan PC stand-alone yang murah. Anda bisa menggunakan software berbasis web pada MAC tapi fungsinya akan terbatas. Dengan perangkat lunak modern, Anda bisa mengeksekusi perdagangan langsung dari grafik Anda. Saya lebih memilih untuk memiliki perangkat lunak charting saya di desktop saya dan mengeksekusi perdagangan saya menggunakan platform perdagangan berbasis web. Saya merekomendasikan platform perdagangan desktop untuk pedagang baru karena memiliki fungsi yang memungkinkan Anda mempelajari detail yang tidak Anda ketahui. Nantinya, yang perlu dilakukan hanyalah menjalankan perintah, dan Anda bisa pindah ke platform berbasis web dimana eksekusi akan lebih cepat lagi. Sekali lagi, kita tidak mendapatkan keuntungan secara finansial dari Anda membuka rekening live dengan broker. Tidak masalah jika Anda sudah memiliki perangkat lunak sendiri. Hubungi saja kami jika Anda memerlukan bantuan. Grafik biasanya menampilkan waktu militer sebagai 00: 00-23: 00. Untuk menghitung waktu, kurangi 12 jam. Jadi jika Anda melihatnya adalah lilin 14:00 dan Anda tidak terbiasa dengan waktu militer, kurangi 12 jam dan Anda tahu itu 2PM. Saya sarankan Anda mengatur grafik Anda ke GMT -4: 00 di musim semi dan GMT -5: 00 di musim gugur (ketika AS mengubah waktu). Agar benar mengikuti apa yang sedang kita lakukan dan katakan, Anda perlu melakukan penyesuaian ini. Jika, misalnya, salah satu pedagang kami menulis bahwa mereka memasuki perdagangan pada pukul 13:00, kecuali jika bagan Anda ditetapkan ke zona waktu yang sama, Anda tidak akan mengerti atau melihat apa yang mereka lihat. Saya merekomendasikan pengaturan alat retracement Fibonacci 23,6, 38,2, 50, 61,8 dan ini digunakan untuk mengukur area retracement alami dari gelombang harga, dan akan menjadi penting nanti. Beri diri Anda waktu untuk berlatih dan menjadi akrab dengan grafik dan platform trading. Saya akan memberi Anda sistem spesifik dalam panduan ini sehingga Anda bisa berlatih. Ini akan membantu Anda mengembangkan kemahiran dengan alat, keakraban dengan kosa kata yang digunakan trader, dan Anda akan menjalani mosi menerapkan logika trading yang baik. 8 8 Bahasa Pasar Jelas ada kosa kata atau bahasa untuk memperdagangkan beberapa kata dan istilah. Menurut saya cara tercepat untuk belajar adalah mulai menggunakan grafik dan platform trading. Anda tahu dengan cepat apa yang Anda tidak tahu atau tidak yakin tentang. Bila Anda menemukan kata atau istilah yang tidak Anda ketahui, tanyakan saja atau lihatlah. Saya akan secara singkat mendefinisikan sebagian besar kata dan istilah yang penting. Mata uang diperdagangkan berpasangan. Jadi saat kita berdagang, kita menukar pasangan seperti EURUSD. Mata uang di sebelah kiri adalah mata uang dasar. Mata uang di sebelah kanan adalah mata uang yang dikutip. Jadi itu berarti ketika Anda melihat grafik EURUSD, Anda melihat nilai Euro bergerak naik turun di grafik. Harga di sisi kanan grafik adalah USD. Jadi bagan itu memberi tahu Anda berapa Dollar yang dibutuhkan untuk membeli satu Euro. Anda benar-benar tidak perlu tahu bahwa untuk berdagang, sekalipun. Yang perlu Anda ketahui adalah: Jika Anda membeli dan harga naik, Anda menghasilkan uang. Jika Anda membeli dan harga turun, Anda kehilangan uang. Jika Anda menjual, dan harga turun, Anda menghasilkan uang. Jika Anda menjual dan harga naik, Anda kehilangan uang. Membeli atau menjual adalah hal yang sama karena likuiditas yang besar di pasar ini. Itu berarti selalu ada pembeli dan penjual yang tersedia. Itu sangat berbeda dengan saham dimana harga bisa terjerumus dan Anda tidak bisa menutup perdagangan karena tidak ada pembeli. Yang perlu Anda ketahui adalah: jual beli adalah tindakan yang sama persis. Hal lain yang perlu Anda ketahui adalah bahwa pergerakan harga adalah ukuran di PIP. Anggap saja itu sebagai pengukuran mata uang seperti seperempat, sen, dime dan sen. Hanya saja yang lebih kecil lagi. Dalam Dolar AS, PIP adalah satu 10.000 sen (ditunjukkan kepada saya bahwa sebenarnya tidak ada uang sepeser pun di AS, kami biasa memanggilnya sepeser pun). Sekarang Anda tidak perlu tahu semua itu. Yang perlu Anda ketahui adalah bahwa PIP adalah dua digit terakhir pada tabel. Saat saya menulis ini, EURUSD berada di Itu berarti bahwa nilai tukar adalah satu dolar, tiga puluh delapan sen, dan delapan puluh dua pips untuk satu Euro. Jadi sebagai pedagang Forex, kami hanya memperhatikan nilai di PIP. Anda bahkan tidak perlu tahu apa arti PIP. Ini digunakan untuk mewakili Persentase Bunga Harga. Sudah menjadi populer untuk menyebutnya Persentase di Point. 9 9 Sementara Anda baru, tetap dengan pasangan Dolar AS. Ini akan menyelamatkan Anda kebingungan. Misalnya, jika Anda memperdagangkan EURGBP (disebut pasangan silang), tidak ada Dolar AS pada pasangan ini. Jika Anda berasal dari AS, Anda perlu menentukan nilai PIP aktual dalam Dolar AS. Ingatlah bahwa ada banyak hal yang dapat Anda pelajari tentang pasar ini. Tetapi jika Anda ingin belajar dengan cepat, fokuskan hanya pada hal-hal yang esensial. Kemudian pelajari hal-hal lain saat Anda pergi. Tetap trading sesederhana mungkin saya pikir ini berguna bahkan bagi trader baru untuk mengetahui bahwa sebagian besar volume di pasar Forex adalah Dollar, Euro, Great British Pound, dan Yen. USD 40, Euro 20, Pound 12, dan Yen 8. Itu cukup mendekati perkiraan untuk menunjukkan bahwa 80 dari semua pergerakan di pasar ini ada di keempat pasang tersebut, dengan volume yang jauh lebih besar dengan EUR dan USD. Yen cenderung sedikit lebih tidak menentu. Jadi saat Anda baru, hindari mata uang itu. Saat ini ada beberapa isu intervensi yang terjadi seputar Yen. Intervensi adalah ketika bank sentral, sekelompok bank sentral, atau pembuat kebijakan mengambil tindakan untuk mengubah harga mata uang. Menyiapkan Grafik Anda Untuk trader baru, saya sarankan berlatih dengan EURUSD, GBPUSD, dan kemudian pasangan kecil AUDUSD dan NZDUSD. Anda tidak perlu banyak pasang untuk berlatih. Saya ingin merekomendasikan USDCHF, namun baru-baru ini bank sentral Swiss mulai melakukan intervensi atas nama mata uang mereka, juga. Dalam buku saya, Forex Art of War, saya menunjukkan metode yang menggunakan grafik jangka panjang terutama (4 jam dan setiap hari). Saya percaya bahwa pembacaan terbaik Anda di seluruh pasar akan menjadi grafik 4 jam. Karena itu, memperdagangkan 4 jam dan grafik harian sulit dilakukan oleh kebanyakan trader karena mereka datang ke pasar untuk mengharapkan lebih banyak peluang daripada penawaran pasar. Jadi bahkan trading 8 pasang, dengan metode bagus, Anda mungkin hanya mendapatkan satu setup bagus seminggu. Kebanyakan trader tidak puas dengan beberapa peluang trading, walaupun ada beberapa hal pasti. Saya memasukkannya ke dalam buku saya (Forex Art of War) karena ini adalah logika terbaik yang tersedia. Bila Anda lebih baru, saya pikir hal yang paling penting untuk dilakukan adalah berlatih. Anda perlu mengembangkan kemampuan pasar dasar dengan alat, logika dan bahasa. Alat seperti diagram dan platform perdagangan Bahasa seperti PIP dan Stop Loss 10 10 Logika perdagangan dasar yang mengajarkan tren, penghalang, masuk dan keluar Inilah yang Anda butuhkan untuk turun di tingkat pertama, seperti yang saya lihat. Berhati-hatilah untuk tidak terlalu banyak minum sekaligus atau Anda akan mudah terbebani. Fokus saja untuk mendapatkan keahlian di ketiga bidang tersebut terlebih dahulu. Untuk mencapai hal ini, saya akan memberi Anda sesuatu untuk dipraktikkan. Pertama siapkan grafik Anda sehingga Anda memiliki EURUSD, GBPUSD, AUDUSD, dan NZDUSD. Tetapkan setiap grafik menjadi 5 menit lilin. Saya merekomendasikan 5 menit karena ini akan memberi Anda banyak kesempatan untuk berlatih. Saya punya alasan penting untuk merekomendasikan hal berikut. Tempatkan 21 dan 55 EMA pada masing-masing grafik. Ini disebut moving average eksponensial. Tidak masalah bagaimana atau mengapa mereka bekerja. Yang penting adalah bagaimana kita akan menggunakannya. Selanjutnya, saya ingin Anda menempatkan indikator Stochastics Lambat pada setiap bagan. Ini biasanya akan muncul di panel bawah di bawah grafik. Periode K akan ditetapkan menjadi 5, D diset ke 3, dan K Memperlambat menjadi 3. Buat warna yang sama dengan latar belakang Anda. Kami hanya tertarik pada periode K. Jadi jika Anda tidak bisa mengubah D, pastikan Anda tahu yang mana adalah garis K. Harus ada garis horisontal atas yaitu 80, dan garis bawah yaitu 20. Sekarang Anda memiliki empat grafik 5 menit dengan 21 dan 55 EMA dan indikator Stochastics Lambat. Saya merekomendasikan lilin. Jika Anda menggunakan grafik berbasis web, Anda mungkin terbatas, tidak apa apa. Tentunya saya merekomendasikan candlestick charts. Mereka adalah grafik yang paling umum digunakan. Begitu Anda mengenal saya, Anda akan melihat bahwa saya selalu hanya melihat apa yang sedang dilakukan tren, melihat apa yang sedang dilakukan orang lain, dan berdasarkan pada apa yang mereka lakukan, saya menghasilkan kesimpulan probabilitas tinggi. Jadi jika kebanyakan trader menggunakan chart candlestick, itu yang ingin saya gunakan juga. Pastikan dan pergi ke forum kami dan mintalah bantuan jika ada pertanyaan tentang grafik. Alasan Saya meminta Anda untuk membuat grafik Anda dengan cara ini: Peluang perdagangan lainnya (grafik 5 menit) Belajar mengikuti tren (21 dan 55 EMA) 11 11 Belajarlah untuk melihat kemunduran (di depan buku ini) Belajarlah untuk melihat penghalang (Maju dalam buku ini) Belajar untuk melihat kelelahan (Slow Stochastics) Belajar memasuki dan keluar perdagangan (di depan buku ini) Jika Anda pernah ingin membuat keuntungan trading Forex, Anda harus bisa berhasil menjalankan logika ini. Jadi meskipun kita tidak berfokus untuk menghasilkan keuntungan saat ini, Anda akan menerapkan banyak logika yang membuat Anda mendapatkan keuntungan. Bagan Anda akan terlihat seperti ini. Anda bisa menyesuaikan warna sesuka Anda. Saya memiliki latar belakang hitam untuk kedua panel, tapi Anda bisa menggunakan apapun yang Anda inginkan. Beberapa pedagang lebih suka menggunakan warna yang berbeda untuk lilin. Beberapa perlu menggunakan warna yang berbeda karena cara unik mata mereka (otak) memproses informasi. Apapun masalahnya, itu benar-benar tidak peduli apa warna, selama Anda tahu apa yang mereka wakili. 12 12 Anda hanya melihat satu baris di Stochastics Lambat saya karena saya membuat garis D hitam. Itu hanya menyatu dengan latar belakangnya. Sekali lagi, keduanya bisa menunjukkan. Pastikan Anda membuat K warna yang berbeda. Tentang Lilin Waktu bagan ada di bawah, kiri ke kanan. Di bagan saya, Anda melihat lilin biru dan merah. Lilin biru mewakili pembeli dan lilin merah mewakili penjual. Kita bisa membuat lilin ini mewakili kerangka waktu. Pada level kedua dan ketiga, kita ganti grafik 30 menit. Saat ini kami menggunakan grafik 5 menit, menetapkan bahwa setiap lilin dibuat dalam periode 5 menit. Jika Anda melihat lilin biru selesai, itu berarti ada lebih banyak pembeli daripada penjual selama 5 menit itu. Jika Anda melihat lilin merah selesai, itu berarti ada lebih banyak penjual daripada pembeli dalam periode 5 menit itu. Lilin memiliki tubuh, sumbu, dan ekor. Gambar-gambar ini dibuat dengan harga tinggi, rendah, terbuka dan dekat. Jadi di panah, itu adalah ekor (garis vertikal membentang dari badan ke bawah), dan titik terendah dari ekor itu adalah harga terendah yang dicapai lilin selama periode tersebut. 13 Garis vertikal di bagian atas lilin adalah sumbu. Bagian persegi panjang lilin disebut tubuh. Jika badannya berwarna biru, maka lilin mulai (dibuka) di bagian paling bawah bodi, dan diakhiri (tertutup) pada bagian tubuh yang paling tinggi. Jika lilin berwarna merah, maka harga dibuka di bagian bodi yang paling tinggi dan ditutup pada bagian paling bawah bodi. Ini adalah beberapa detail yang saya sampaikan pada Anda, tapi ini adalah informasi yang perlu Anda ketahui. Jadi, mari pikirkan beberapa hal itu. Jika ada tiga lilin biru berturut-turut, dengan cara berapa harga harus pergi, itu hanya bisa naik. Kebalikannya benar dari lilin merah. Terkadang perlu bagi Anda untuk mengetahui apa yang tinggi, rendah, terbuka atau dekat. Anda bisa bola mata ini, tapi cara yang lebih akurat untuk melakukannya adalah dengan menggunakan kotak silang dan kotak data display. Pada kebanyakan grafik, saat Anda klik kiri, dan pasang sumbu vertikal pada lilin apa pun, sebuah kotak akan muncul. Kotak itu akan memberi tahu Anda semua informasi spesifik yang mungkin Anda inginkan tentang lilin itu. Ini juga akan memberi tahu Anda posisi moving averages dan indikator lainnya. 14 14 TREND Seperti yang saya sebutkan di awal, semua keputusan kita didasarkan pada logika. Logika itu adalah hasil studi tentang pola historis yang diciptakan oleh pembeli dan penjual. Ada pola bagan, pola lilin, pola indikator, dan bahkan pola lain yang tidak begitu terkenal. Pola yang paling terulang pada grafik adalah apa yang kita sebut tren. Dalam trader berbicara, tren adalah ketika Anda melihat harga bergerak ke arah tertentu. Di gambar ini di sebelah kiri, harga sedang turun. Alasan kita ingin tahu tentang trend dan belajar mengenalinya terlebih dahulu adalah karena trader PALING ingin berdagang ke arah trend. Jadi ANDA harus mencari untuk perdagangan ke arah tren. Tren adalah harga yang jelas bergerak ke atas atau ke bawah. Dalam gambar ini (kanan), harga tidak trending, itu sideways. Di sebelah kiri sini lagi, saya ingin menarik perhatian Anda ke hal lain. Semakin banyak pengalaman yang Anda dapatkan, semakin sedikit Anda harus mengandalkan indikator. Garis kuning adalah 21 dan 55 EMA. Mereka bergerak rata-rata. 90 saat itu, mereka akan memberi Anda pembacaan yang akurat mengenai arah tren. Itu cukup baik saat Anda belajar bagaimana trading bekerja. Jadi tren mudah bagi Anda. Jika moving average yang lebih cepat ada di atas, Anda hanya membeli. Jika rata-rata bergerak lebih cepat ada di bawah, Anda hanya menjual. Jangan terlalu rumit ini. Bahkan beberapa pedagang yang paling terampil dan sukses menggunakan moving averages. Mengapa karena memberi mereka sesuatu yang pasti tentang keputusan dasar. Semakin banyak pengalaman yang Anda dapatkan, semakin Anda akan menghargai nilai definisi yang baik. Jadi kita bisa lihat di gambar ini bahwa harga sedang bergerak turun. Kita juga bisa melihat rata-rata bergerak dan melihat bahwa mereka terpisah dan turun. Itu semua yang perlu kita lihat sekarang. Kami sekarang membangun metode trading untuk praktik yang akan terdiri dari 15 15 Trend Pullback to barrier Kelelahan di penghalang Trigger Entry dan exit Jadi kita punya trend sejauh ini. Pullbacks Hambatan sama pentingnya dengan tren. Kami mengatakan bahwa pedagang suka berdagang ke arah tren. Kita juga tahu dari pengamatan berulang bahwa trader suka memasuki tren ketika harga menarik kembali. Karena psikologi pasar ini, Anda akan melihat pola berulang berulang-ulang. Anda akan melihat tren, Anda akan melihat pullback, dan kemudian Anda akan melihat harga push lagi ke arah tren itu. Lihatlah gambar di bawah ini. Ikuti garis putih. Tren harga dan menarik kembali, tren dan menarik kembali Jadi kunci berikutnya adalah bagaimana kita tahu kapan kita kembali ke arah tren Kita melihat ini terjadi berulang-ulang, jadi pertanyaannya adalah begini: kemana kita akan masuk 16 16 Hambatan Kami tahu dari melihat grafik selama bertahun-tahun dan puluhan ribu jam bahwa pedagang suka memasuki tren di penghalang yang baik. Barrier juga disebut support atau resistance. Resistance selalu di atas harga, dan Support selalu di bawah harga. Jadi Anda perlu tahu cara menggambar garis horizontal pada grafik Anda. Bila tren harga dan kemudian bergerak menyamping, seperti yang Anda lihat di sebelah kiri, ini disebut konsolidasi. Ada lagi jenis penghalang (support atau resistance) yang disebut penghalang bersejarah. Ini mengacu pada area harga dimana harga mengalami masalah di bawah atau di atas. Saya tuliskan harga daerah karena biasanya bukan harga yang spesifik, tapi kisaran support atau resistance. Hambatan Bersejarah: Seperti yang Anda lihat, saya menggunakan persegi panjang untuk menunjukkan area ini di mana harga telah berjuang untuk mencapai di atas atau berada di bawah di masa lalu. Anda mencari beberapa sentuhan. Ini membutuhkan beberapa latihan. Jadi praktekkan. Entah itu penghalang bersejarah, atau konsolidasi, keduanya merupakan penghalang, keduanya merupakan pendukung atau perlawanan. Tujuan kami adalah mengantisipasi di mana harga kemungkinan akan terpental. 17 Saya akan berbagi satu teknik lagi yang perlu Anda praktikkan untuk mengidentifikasi hambatan. Ingatlah untuk mengunjungi forum kami yang telah kami buat untuk mendapatkan bantuan dalam semua pelajaran ini. Saya masih ingat betapa senangnya memiliki komunitas saat mempelajari teknik ini. Alat Retracement Fibonacci Begitu Anda melihat tren Anda, dan tren itu mulai mundur, inilah tempat dimana kita akan mencari perdagangan kita. Kata pullback juga disebut retracement. Retracement mengacu secara khusus pada level Fibonacci Retracement Tool. Sebuah pullback bisa mengacu pada pembalikan atau harga. Pada awal buku ini, saya memberi Anda pengaturan Fibonacci 23,6, 38,2, 50, 61,8, dan inilah alat itu terlihat seperti semuanya. Kita mulai dari awal tren, dan kemudian menariknya ke akhir tren. Ini sangat berharga karena ada pola berulang di sini juga. Alat ini bisa membantu kita untuk mengidentifikasi penghalang yang baik. 18 18 Pertama Anda butuh sebuah tren. Bila tren itu mulai pullback, itu saat Anda bisa menggunakan alat retracement Fibonacci. Dari sini saya akan menyebutnya sebagai alat Fib. Begitu kita menariknya, saya akan menyebutnya sebagai Fib. Seperti yang Anda lihat jika Anda mengikuti panah, harga akan miring, dan kemudian mulai menurun. Dalam tren turun, kami ingin menjual. Tapi kami ingin menjual saat harga menarik kembali ke penghalang yang baik (hijau). Fib bisa menjadi salah satu konfirmasi bahwa kita memiliki penghalang yang baik. 19 19 Fib selalu ditarik dari kiri ke kanan. Anda tahu sekarang saatnya memikirkan menggambar fib karena harga mulai bergerak kembali. Anda akan melihat lilin warna yang berlawanan seperti yang ada di panah putih. Anda memulai Fib di mana tren mulai turun. Berikut adalah beberapa pengetahuan untuk Anda dan 38,2 adalah tingkat keuntungan alami, dan 50 dan 61,8 adalah tingkat koreksi. Tidak perlu lebih dari itu pada saat ini. Saya kira saya bisa menulis buku tentang mengapa menurut saya ini berhasil, tapi pola historisnya adalah: 38,2, 50, 61,8, dan 76,4 dapat menjadi penghalang yang menunjukkan kemana harga akan berbalik. Saya tidak memperhatikan penghalang 23,6 sebagai tempat potensial untuk melakukan perdagangan. Terlalu sering bergerak ke 38.2. Jadi saya ingin melihat harga bergerak kembali ke 38,2 sebelum saya mempertimbangkan perdagangan. Sekarang Anda memiliki dua hal yang harus dicari sebagai penghalang. 1. Tingkat retracement Fibonacci 2. Sebuah penghalang bersejarah. Seiring Anda kemudian pindah ke tingkat perdagangan berikutnya, akan ada alat lain yang dapat kita gunakan, dan kita tidak berhasil kecuali dua hambatan hadir bersamaan. Untuk saat ini, Anda hanya ingin berlatih. Anda hanya butuh satu penghalang. Kelelahan (pada pullback) Pada titik ini akan sulit bagi Anda untuk melihat kelelahan. Ini bukan tidak mungkin. Itu hanya bahwa Anda memiliki tangan Anda penuh sekarang. Semakin banyak Anda berlatih, semakin banyak mata Anda akan mulai melihat kelelahan sebenarnya. Bayangkan (seperti gambar kita di atas) harga sedang tren turun. KEMUDIAN. Harga mulai mundur dan pembeli mulai membeli. Kami ingin minat pembeli untuk lelah, atau kehabisan bensin atau setidaknya melihat tanda-tanda itu sebelum kita memasuki perdagangan. Sudah pasti saat saya berdagang dimana tidak ada tanda-tanda kelesuan harga. Ketika harga sedang tren dengan cepat pada jam sibuk, akan sering terpental cepat dari penghalang kita dan kembali ke arah tren. Anda tidak perlu khawatir dengan ini saat ini. 20 20 Untuk saat ini, saya akan menunjukkan teknik Slow Stochastics yang telah kita gunakan selama bertahun-tahun. Pedagang masih menggunakannya hari ini di seluruh dunia. Tapi karena kita memperdagangkan logika dan bukan indikator, harga selalu akan melukis gambar yang lebih baik. Untuk saat ini, ayo tetap dengan indikatornya. Lihatlah panel bawah tempat garis K Stochastics kami berwarna ungu. Ada panah kecil di lingkaran yang menunjuk ke ekstrem. Ketika harga menarik kembali ke penghalang, kami ingin indikatornya berada dalam posisi ekstrim (lebih tinggi dari 80 untuk penjualan) (lebih rendah dari 20 untuk membeli) dan kemudian terhubung kembali ke arah perdagangan. Lihat gambar berikutnya Jika Anda mengikuti Anda akan melihat harga turun. Rata-rata bergerak dalam urutan (lebih cepat satu di bagian bawah) menunjukkan perdagangan hanya menjual. Harga mencapai bagian bawah, dan kita menarik fib. Kami melihat harga mencapai 38,2, 50, 61,8, atau 76,4, atau mencapai penghalang bersejarah untuk membuat perdagangan. Pada dua panah BESAR, Anda bisa melihat harga mencapai 38,2 dan selanjutnya 61,8. Itulah titik di mana harga mencapai penghalang kita, dan indikator Stochastics tersambung kembali. Masalahnya di sini adalah bahwa Stochastics tidak pernah mencapai level 80 (garis horizontal atas) untuk sebuah penjualan. Jadi kita tidak akan mempertimbangkan perdagangan di salah satu lokasi tersebut. Kami ingin pergi dengan tren, memiliki harga mundur ke penghalang kami, dan memiliki Stochastics yang ekstrem, berbalik ke arah perdagangan kami. Anda mungkin harus berlatih untuk mendapatkan semua ini secara langsung. Sebagai contoh, jika saya menggambar fib dari atas ke bawah tren turun, saya hanya bisa mencari-cari jual. Stochastics tidak akan pernah bisa berada di titik paling bawah untuk menjual. Itu hanya bisa di atas 80, mengaitkan kembali untuk menjual. 21 21 Izinkan saya memberi contoh tentang semua kebutuhan ini berbaris dan kembali ke jalan lain. Lihatlah bagaimana tren bergerak naik (moving average yang lebih cepat di atas), dan kemudian mulai pullback ke arah lain (back down). Seperti yang terjadi, saya menarik fib dari awal tren ke puncak tren. Sekarang saya mencari harga turun dan mencapai level 38,2 Fib. It does, and now I look to see if price is extreme. Ini. Look at the vertical line showing the alignment. The candle before the arrow establishes Stochastics at extreme. Now pay attention carefully: In order for the Stochastics to hook back up, that 5 minute candle at my arrow MUST finish and close. When it does, I can then enter the trade. See next picture. 22 22 The green line is the price at which the candle closed. So I enter the trade right there. If you are trading a 10k practice account, don t worry about your total risk at this time. Later we will control our risk to 2-5 maximum of our equity when we trade real money. For now, that just adds more complication to your practice. For now, when you trade, just buy or sell 10 contracts (lots). You just want to repeatedly practice these elements. The stop loss goes just one PIP under the swing low. The swing low is the most recent, lowest price reached. This is usually the lowest price retraced when we are talking about pullbacks. So now we know where to put our stop loss and know the price. The next step is to determine our exit. I recommend you only target 10 pips. In order to get 10 actual pips, you will need to overcome the spread. 23 23 The trading platform I recommend for practice is called the GTS Pro. It offers many helpful functions when you are newer to trading. Notice the floating EURUSD box I have in the front of the trading platform (green rectangle). You will observe a price on the left and the right side. On the left you have the bid and sell price at Bid and Sell mean the same thing. On the right, you have the ask and buy price at They mean the same thing. The spread is the difference between the bid and ask price, or the difference between the sell and buy price. When you execute a trade, price will need to first move the amount of the spread before you get to zero (breakeven, written as BE). So in the case of the Euro, the spread is 3 PIPs. Our entry price was Price has to move 3 pips in the direction of our trade in order to breakeven. Then a movement of ten more pips would bring us to So is our profit target. When you are actually 24 24 taking trades, be very sure to enter your stop loss in the trading station as quickly as possible. To reinforce how ridiculous it is to trade without a stop loss, imagine a NASCAR driver speeding around the race track without wearing a helmet. Or a parent leaving their two year old to play by the street while they go in to make tea. That s how outrageous it is. If anyone tells you different, you now know how absurd they are. If price is too close to your stop loss, the trading platform will not allow you to enter an automatic stop loss (usually the amount of the spread or closer). So if you entered this trade, and price dropped to. you would not be able to execute an automatic stop loss. You would need to manually close the trade when the stop price is reached. The same is true for the profit target. In the trading platform, this is called a limit. Now, I m going to give you a rule you do not need to understand right now (might hurt your head to try), but you absolutely must use it or you will wonder what is happening to you at times. Read carefully and pin it to your wall: WHEN IN A SELL TRADE YOU MUST ADD THE SPREAD TO YOUR STOP LOSS AND LIMIT WHEN TYPING IT INTO YOUR TRADING PLATFORM. This illustration above is a buy trade. So we don t do anything at all. The rule doesn t apply to buy trades. The rule only applies to sell trades. Let s walk through a trading setup again, 25 25 and then show how we would do things differently for our stop loss and limit in the trading platform. The faster moving average is on the bottom, so we can only sell. We draw a Fib from the top to the bottom of the trend. At the 61.8 level, the highest blue candle gets the Stochastics established in the upper extreme (must be upper for a sell). To hook back, the red candle at the white arrow must close. It does and you sell ten contracts immediately. Your stop loss goes 1 pip above the swing high. The spread is 3. You got in at. so your breakeven price is To make a 10 pip profit, price must move to So is your target. We now need to enter the stop loss and limit order in our trading platform. What is our rule WHEN IN A SELL TRADE YOU MUST ADD THE SPREAD TO YOUR STOP LOSS AND LIMIT WHEN TYPING IT INTO YOUR TRADING PLATFORM. What does that mean First of all, you don t change anything on your chart only on your trading platform. So the stop loss you type into the trading platform would be or Your limit order would be or That s what you type in the trading platform. Make sure you know the rule and know what to do. The reason for this is because if you are in a sell, your contracts are going to close at the buy price (3 pips higher). So when your chart price is at your target price (1.4060), the buy price will be at Easy just follow the rule if you don t understand. 26 26 Keep in mind that different currency pairs have different spreads. The spread might even change for the pair you are trading. Be sure to check the spread each time you trade. In summary, trading is a marathon, not a sprint. You must become proficient at language, basic tools, and basic logic. Once you do, then you will be ready for more. Always remember it s not about what the market does, it s about what you do. Always keep in mind that your success depends on your ability to make good decisions, not on what you see happening in the market. me with any questions: I wish you the very best on your journey Vance Williams In the pages that follow, you will find a Level 1 Trading Plan, all the tools you need for trading, and an introduction to the next level of trading. 27 27 Level 1 Trading Plan (see next page for charts and trading software) Trend If faster moving average is above slower moving average, only buy. If faster moving average is below, only sell. Barrier Need only one barrier Can use Fibonacci retracement levels Can use historic support or resistance Stochastics Must be at upper extreme or coming from upper extreme, hooking down for a sell. Must be at lower extreme or coming from lower extreme hooking up for a buy trade. Trigger Your trade is triggered when all of these parts line up at the same time. If price is extreme and hooking back, be sure to wait for the candle to close. If price is hooking in the direction of the trade at that time, you enter. Take one trade at a time Trade 10 Contracts 28 28 Trading Platform and Trading Software You are welcome to use any charting software and any broker. I do not have a financial relationship with any broker. I recommend FX Solutions because I have been doing business with them for six years. They offer the tools for free, and the tools are very good. The way this works: If you register for a free 10k Practice Account, you will receive an with a username. That username can be used to login to charts and trading platform. 10k Practice Account Registration Upon registering, you will receive a second with a link to a new page. This page will provide free downloads, and video tutorials teaching you how to use the charts and trading platform. Be sure to let us know if you do not receive that second. Note: If you are a MAC user, to take full advantage of Forex trading software, you will need to acquire a program like Windows Parallels or get an inexpensive stand-alone PC. You can use web based software if it is your only options, though functionality will be somewhat limited (MAC is only 10 of the PC market). Please visit our Forums for technical questions and support at the following link: Forex Art of War Technical Forum Community Teamwork In all of my years of working with traders, I have found it to be of great value to be a part of a community of like-minded people. This is where you can share your trades, and share your point of view with others on their trades. This can greatly accelerate the rate at which you learn. You can access our public forums at the following link: THE FIRST BATTLE - Trader Community Forum 29 29 The Next Step SEIZE THE HIGH GROUND Once you have become proficient with the information in this book, it will be time to consider our second program, SEIZE THE HIGH GROUND. Write to me: for more information. It is a premium membership, however we are striving to keep prices as low as we possibly can while assisting you with your goals. Level 2: SEIZE THE HIGH GROUND The purpose of this program is to help you master the precise logic and tools you will later be using in Level 3, which is your method and trading plan. There are limitless setups you can choose to trade in Forex. My concern is teaching you where the best opportunities are. Trading decisions are not just about what price is likely to do. I ll be teaching you how we know which direction price is likely to go. I ll show you the optimal entry and the optimal exit. I ll teach you why trading a 1 or 5 minute chart is very difficult, why Daily and 4hr charts are easy, and why we choose to teach you to trade a 30 minute chart. I ll be teaching you insights into the market that few ever realize are taking place. All of this to give you a clear edge over other traders in the Forex market. Here is a sample of what you will be learning: New Wave Fibonacci formula for measuring trends How to Control Risk How to read price exhaustion How to read the correct trend to trade How to choose strong barriers How to factor in Time of Day When to stay out of the market And More. This will also include a Level 2 trading plan, community forum, live trading sessions, and videos assisting you to gain more insights into what I am teaching. Again contact me: if you would like to learn morements from Our Traders Hi Vance, I want to thank you for what you do Before signing up I completely ignored your member feedback page. hahaha Because it was on your site, I just assumed they were coerce or manipulated. In hindsight, now that I8217m a member, I see it8217s just feedback page. All from your members, completely honest and organic. Which makes that page even more impressive I have to say I signed up because you8217re down to earth, serious, very experienced, and accessible. You also cover all aspects of trading, not just strategy. The fact that your not a 8220youtube forex celb8221, didn8217t surprise and is a positive for you, IMO There are too many that live on teaching forex rather then actually trading forex I like your motto of education is watching you, and training is you watch us. It explains exactly what your program is all about. Your on going mentorship is of me great value to me and not to mention your entertaining and informative morning sessions Your 1cent trial is a no-brainer and your 12 monthly payment plan is very generous. I don8217t have any hesitation recommending Vance to beginners or non beginners, who are serious about being 8216consistently profitable8217 in forex Moment of Clarity A few weeks ago I had a moment of clarity. After a year of learning Forex with Vance and trading it all came together. It was one of those moments when everything you have been studying, practicing and researching all comes together in one coherent thought. The moment of Ah Ha I get it now That is what happened for me. For a year now I have been studying with Vance and trading. I have been learning more and more as the time went on. Practicing and doing research. It was just shortly after I started posting fundamentals in the Team Fundamentals Forum that I had insight. I was listening to one of the morning live recordings and Vance was talking about short and medium term trades. I am not sure what he said or what he was showing, but at that moment everything came together and I knew exactly what he was talking about, what the market fundamentals meant and what my trading plan meant. It was the best feeling I have had in a very long time concerning Forex. It was also the first time since I started this I didnt get an anxiety attack or upset stomach at the thought of trading a live account. I realized that there is not a difference, as long as I follow my trading plan. By no means am I done learning or looking for guidance from Vance, far from it. It just means I understand what Vance has been teaching us and it allows me to learn more. The foundation that Vance is teaching is more important than anything you will learn in Forex. Without it you will fail and lose all your money. My motto is Patience and Persistence. Dont rush it, dont force it. Be Patient and Persist in your learning. I am truly enjoying your program. It is more than trading it is a way of thinking and a way of life. The holistic approach Vance teaches not only helps you with your trading, but with everyday life. His advice and recommendations for reading have helped improve what I do and how I do it. This is a great course and it is hard to put a price on all the benefits you get. Keep an open mind truly listen to what is being said and you will do more than master currency trading, you will begin to master your life. I8217ve been trading forex for about 8 years since 2006. Throughout the first 7 years I spent thousands of dollars on countless online trading methods, robots, mirror trading, and none of them worked for me. I was blowing my account over and over again. On top of all my losses, I spent all day and night glued to my computer monitor looking at charts. I had no profit and no life, and even though I was working from home, I was spending more time on my charts than with my own family. I was consumed with trying to make forex my livelihood and main source of income, but my untrained efforts only brought me to more debt and a huge sense of failure. It felt almost impossible to make money trading. Most people would have probably stopped trading completely after losing over 10,000, but I still believed it was possible to make a living trading forex. When I came across Vance8217s Art of War video on youtube, I was trading a small account (1000) unsuccessfully. The free online videos and free e-books that I read and watched, showed his general method of trading which was so simple, yet so precise and accurate. I was even starting to make consistent profit following just his youtube videos, so I knew that I stumbled onto what I have been looking and hoping for all these years. The fact that he was giving away his method for free and not some sneaky tease method only to lure you in to pay for some software or EA and then leave you to fend for yourself, was unique to me. So I put my live account on hold and joined his forexartofwar program. Vance helps you create a trading plan, using his proven method, designed specifically for each individual trader. His training, forum, insight, and expertise are like nothing I8217ve ever come across. For the first time in 8 years, I am trading with a step by step plan that he helped create for me to trade successfully with consistent profit. I don8217t spend my entire day glued to my charts anymore. I have strict rules that I follow which now gives me the freedom and peace of mind I never had trading forex. Although I still have more to learn through my experience, I am greatly appreciative to Vance and everyone in the forum who has helped me get to where I am today. I8217ve learned more about my trading and myself personally in the last 7 months from Vance than I have in the last 7 years on my own. I really love your philosophical approach to trading. I now truly appreciate the interconnectedness of all that is. Your program has given me all the necessary tools for me to develop my own skill. I could write an essay detailing the value of your guidance but to put it succinctly, thank you for being the signpost that has shown me the path of least resistance. I8217m grateful for the wealth of knowledge and training you have provided me. Thanks for keeping it real I signed up with Vance about 7 months ago. I have been busy with my two little daughters, so I8217ve been working on the program very slowly. Vance8217s program has many great qualities. For me, it8217s extremely flexible. And because Vance watches your progress PERSONALLY, you receive top notch education. The live sessions are great. You interact DIRECTLY with Vance and other traders. Vance does not just give you information and learning material and tells you to go figure it out. He watches your practice trades and gives you personal feedback. And for me, that is the most valuable education I can get anywhere. I am a curious person by nature. I have dabbled in a lot of different educationalfinancial concepts. I have always been looking for a great way to get involved in the financial market. When I ran across ForexArtOfWar I thought it was just another one of those websites that wanted to take your money and leave you high and dry. I entered my contact information in on the website and did not expect anything to come of it. The next morning I awoke to a call from Vance. I thought 8220wow, they seem on top of it, for sure this is just one of those telemarketers.8221 He told me about a free 30 day trial to the complete education of the website and then hands on training with a reasonable cost after a month. I thought to myself we will see what happens after 30 days right I was travelling for work then, so I had quite a bit of free time. I began learning as much as I could as quick as I could. I got to a point where I had learned the concepts (so I thought). I was thinking they would just say thanks for your money, now go out and use your money to practice what we taught. That was not what happened at all. I was told to not open a live account and just practice under the direction of Vance and his team until I knew exactly what was happening. So8230.Here I sit about 6 months after running into ForexArtOfWar and I am getting much closer to live trading. I feel a million times more secure about what is happening in the Forex market than I did before. I had no knowledge at all. I now know that when I do start live trading, I will understand the logic of the market well enough to experience success. Vance has characteristics that are not found very often in people. For some reason, he wants to mentor us as we grow and make us better Forex traders. It is as if everything he does is only to help others. That is a very admirable trait that the majority of us do not possess. I am brand spanking new to forex trading and have been navigating my way through the site and level 1 videos and training. Needless to say everything feels a bit daunting but just sitting and focusing every day and not letting my fear and slow progress discourage me is great. I am usually very impatient but realized that will just land me into deep water in the world of forex trading. Just having to go through everything step-by-step with the assistance of the trainers is forcing me to focus, master and then move on at a reasonable pace. What I find particularly motivating is to see how different people are progressing to different levels every day 8211 that is really very inspirational to me and it keeps me focused and exited to keep going. This is a great learning community and exactly what a newbie like me needs. There is no ra, ra, ra about how much money is made and no moaning and complaining about how much is lost. Vance, thank you for creating such a great space to learn and thank you everyone for building and maintaining such a great positive learning community. If you are looking for an edge in the Forex market, this is the place to be. Fundamental and technical education is important, but training and discipline is what sets an Art of War trader apart from the rest of the market. You know you are working with the real deal when the program has been developed and centered around principles from the one and only, Sun Tzu. What really sets this program apart from the others is the psychological training you receive as well. It is what gives you the edge as a trader. You must conquer yourself before you8217re even able to survive in the Forex market. The added benefit of having psychological training is that it has positively influenced all aspects of my personal life too Working with Vance and his team is a pleasure. The training and social environment is friendly and more importantly, focused. If you want a professional, no nonsense, down to earth, practical, and encouraging approach to Forex, then Vance is your man. It8217s affordable, and you get more than you pay for 8211 provided you apply yourself and put trust in the program. I feel that I could not have done this any quicker with anyone else. From zero trading experience to going live in just 5 months 8211 and without any compromise to the quality of education or training. Joining this program has made me feel very grateful for having saved and years of grief from failure. THANK YOU Vance and team Vance8217s flexibility and patience allowed me to combine this training with employment and college work. I8217ve been training with vance for a little over 18 months now. I8217ve been supplementing university work with trading in my free time so I have subsequently progressed significantly slower through the training process than my fellow traders here at FAW. I was initially surprised at vance8217s dedication to each individual trainee8217s skills and circumstances. In the beginning I8217d often remind Vance of how I8217m getting on as I knew he had 100s of trainees and didn8217t want to be forgotten in the haystack, however overtime Vance8217s actions made it clear that he sculpts the program around each individual8217s interests and skills so I had nothing to worry about Now at level 3, Vance and I spent hours (30min at a time) developing and perfecting a high probability trading setup that I am confident using. The amazing thing is that I did it all by myself This is why I believe Vance is great at being patient with his trainees, as contrary to other Forex programs, Vance waited until I observed the correct behavior myself and merely guided me in the correct track. Vance allowed me to write and develop every part and nuance of my own system for myself which gives me a solid sense of satisfaction and credibility when executing decisions in real time. The most valued facet of this program however is the complimentary wisdom he gives. Vance8217s methodical and psychological approach to not just trading, but real world experiences has really taught me a lot and helped me address daily encounters with more of a logical, planned perspective. His rants about expectations, consistency, execution and assumptions I tend to find increasingly interesting as often his life experiences and advice are ones I find value in and appreciate. Becoming a member of this program is quickly shaping out to be one of my most proudest decisions of my life at the age of 22 I would certainly recommend a friend to try at least a couple of months with the FAW team, and once you see the light, you8217ll want to never leave Disclaimer: Forex Art of War and Vance Williams believe that customer should be aware of the risks associated with over-the-counter, spot Forex. Forex trading is highly speculative in nature which can mean currency prices may become extremely volatile. Forex trading is highly leveraged, since low margin deposits normally are required, an extremely high degree of leverage is obtainable in foreign exchange trading. A relatively small market movement will have a proportionately larger impact on the funds you have deposited. You may sustain a total loss of your funds. Since the possibility of losing your entire cash balance does exist, speculation in the Forex market should only be conducted with risk capital you can afford to lose which will not dramatically impact your lifestyle. Forex Art of War is proudly powered by WordPress and BuddyPress. Just another WordPress Theme developed by Themekraft. THE FIRST BATTLE, Forex Art of War Transcription 1 1 THE FIRST BATTLE, Forex Art of War 2 2 THE FIRST BATTLE, Forex Art of War Most traders dont recognize their first battle. But since it is a battle of vision, it must be won. If you are going to win in trading, you have to understand how the game is really played. The Forex culture fosters the belief that if you have enough information, if you manage your risk well, and if you are disciplined, you will win. That is absolutely TRUE. But it s also like telling someone who is overweight if you eat right and exercise, you will lose weight. Is that a STRATEGY for losing weight No. When an objective is truly important, you will take the time to consider everything that can affect your success. Even when you have a good plan, it is a starting point. As you put your plan into practice, you discover critically important information about yourself. Such as, you will find it s better to not go to the store hungry. You might also discover that you continue to eat after you are no longer hungry. Personally, I discovered that even though I won t jog, I won t walk, I won t stretch, I will get beat up for an hour in Muay Thai Kick Boxing. Go figure. When I moved from my former residence and could no longer practice the same discipline, I had to find something else that I would do. Eventually I discovered that I ll walk endlessly on the treadmill if the TV is on. Bingo. When I came to Forex trading in 2004, my advantage was my experience with selfdiscipline. How do I get myself to make good choices How do I consistently make good choices If our goal is to lose weight, our greatest difficulty is going to be dealing with how we feel. We want something that is not good for us. The same is true with Forex trading. You are going to find out sooner or later that your emotions will prevent you from making money if you don t have a strategy for making good decisions in spite of your emotions. So this is your first and most important choice. Do what you feel like doing. 3 3 Or Learn go make good decisions regardless of the emotions you experience. Those are your two choices. Both are about how you feel. One is easy and results in no profit and the loss of all of your money. The second requires an effort and can enable you to reach your goal. Make the right choice and you move forward. Make the wrong choice, and you end up repeating the same activity over and over again for months or years. This was Einstein s definition of insanity, but people do it anyway. If you are ready to make the right choice, I wrote this for you. The Forex quotculturequot encourages an ineffective vision of Forex trading. For this reason it is vital for your success that you begin by reading the ebook: 8 Things They Don t Tell You About Forex Trading. My book explains why the Forex culture is the way it is, why traders lose their money, and that it is totally unnecessary. A Brief Overview of Forex Art of War Forex Art of War is a holistic strategy that takes into consideration all variables that have the potential of affecting your success. That part of the strategy began in October, In March 2010, I began testing the strategy with traders with great success over the next year. That strategy and what happened became documented in my 232 page book, Forex Art of War. Shortly after publishing my book, I recognized the need for more of a step by step process, and divided the strategy into three levels. Those have now developed into THE FIRST BATTLE, followed by SEIZE THE HIGH GROUND, followed by Sun Tzu RULES OF ENGAGEMENT. They are three levels. The first level (where you are now) is about becoming proficient with tools, language, and basic logic. The second level is about all of the important market information and tools that you are really going to use when you actually begin trading for profit. The third level is about how high risk decisions are made and focuses primarily on a process of separating your emotions from your decisions. 4 4 Getting Started Be sure to check us out on Facebook. My blog is Feel free to me at with any thoughts or questions This guide is intended to show you the fastest and most efficient way to get started trading the Forex. I m not going to explain trading in a traditional sequence. Instead, we are going to get right into the charts, and you can learn as you go. The information is presented in the order it will be used. If you have the need, please ask us to forward links for free charts, practice account and trading platform. We include videos that explain their use. It s fine if you already have your own charts and trading platform. Forex Art of War is a holistic strategy for winning that takes into account everything that affects your ability to make consistent profit. I consider this book (The First Battle) to be the first level of knowledge, skill, and application. To illustrate: Before you can express an idea in a sentence, you must be able to write the words. To write words you must first learn the letters and basic rules for spelling. Once you are proficient in market language and tools, you can then move to the second level, which is logic and technique. The third level is where you understand how profit is actually made and includes the method, trading plan, evaluation and adjustment. The most important is the third level, where you learn to separate your decisions from your emotions. For now, just practice the basics. Here are the specific learning goals of Level 1: Tools such as charts and trading platform Vocabulary such as PIPs and Stop Loss Basic trading logic that teaches trends, barrier, entry and exit I have been trading and training others for more than seven years at this point. I have worked with thousands of aspiring traders, and had the privilege of working with some truly great traders. I love what I do because it is challenging and because I can help people to improve. People who strive to reach farther in their life inspire me. There are literally tens of thousands of pieces of information you can learn about the Forex market. I m only going to focus on the essential things that you quotneedquot to learn. I believe 5 5 that you cannot make lots of profit until you learn to make some profit. So that is an important principle applied in this book and the subsequent training. Basic Logic As traders, we are anticipating what will happen in the future. How do we do this There is a simple logic in trading. Logic can be viewed and defined in many ways. I like to keep things simple. When I refer to logic, I m referring to information from the past that can be used to anticipate what is likely to happen in the future. Human behavior is repetitive. When you look, you see it everywhere. We tend to shop at the same places, and buy the same food. We know when traffic will be congested on our roadways. While I have written extensively on this subject, suffice it to say that not only do we repeat the same behaviors over and over again, we have difficulty changing a behavior even when we make a conscious effort. Just remember your struggle the last time that you set out on a new diet or exercise program. There is a deeper reason for our human frailty. The same mathematical sequence we see everywhere in nature is also in us. That is why we can rely on historical information to anticipate what is likely to happen in the future. Grocery stores even set prices based on your behavior. When I talk about repetitive patterns, I m not just talking about patterns you hear about like trends, head and shoulders, candle patterns, double tops, etc. etc. I m talking about patterns throughout the entire decision process. We know traders like to trade trends. Where do they like to get in Where is the best place for you to get in Where is the best place to put your stop loss and profit target There are patterns (logic) for all of these decisions. So as buyers buy and sellers sell in the Forex market, they create patterns. These patterns show us what traders are doing over and over again. So when we see the pattern next time, we know what is likely to happen again. 6 6 The Forex I m going to be brief in my explanations because there is so much that you don t need to know. Forex is short for Foreign Exchange. It s the largest market in the world. I think of money as the life blood of business and the Forex as the circulatory system. It is a network of 1000 s of banks around the world with no central location. No one is in charge. The purpose of the Forex market is to determine a fair price of exchange between two currencies. The price is determined using the principle of supply and demand. If there are more buyers at any given moment, price is moving up. If there are more sellers, price is moving down. What is the Forex to me A stream of data. To me, that s all it is. It is a stream of data (for real). That data comes into my software and tells me what price is doing. What else do I need to know Not much. Trading Software Trading software takes in the data feed about buying and selling around the world and can be used in many different ways. In 2001 Platforms became very stable so that we were able to trade from our personal computers. So the industry or retail Forex trading (you and me) is still in its infancy. Brokers or dealers provide most of the data feeds, charting software and trading platforms. These should be free of charge. Most brokers are willing to supply these to you in hopes that you will eventually trade a live account with them. Be sure you only open a practice account, NOT a live account. has free 10,000 practice accounts available, as most others do (note that we are NOT brokers and have NO financial relationship with a broker). Do not open a live account until you actually know how to trade. If you open a live account prematurely, even if you intend not to trade it, there is a 90 chance (at least) that you will trade it and that you will lose all of your money. Again, make sure you read my free ebook, 8 Things They Don t Tell Forex Traders. 7 7 I prefer Accucharts. Metatrader is also a good charting software program. You can get these free by contacting me at For those of you who are MAC users, you will need to use Windows Parallels or a program like it to take full advantage of the tools available to a Forex trader. I know MAC users don t like to hear it, but MAC is only 10 of the PC market, so those who write software write it for the bigger market first. The good news is that programs work pretty well using Parallels. My suggestion for MAC users would be to get an inexpensive stand-alone PC. You can use web based software on MAC but functions will be limited. With modern software, you can execute trades directly from your charts. I prefer to have my charting software on my desktop and execute my trades using the web based trading platform. I recommend a desktop trading platform for new traders because it has functions that enable you to learn details you don t know. Later, all you will need to do is execute orders, and you can move to a web based platform where execution will be even faster. Once again, we do not benefit financially from you opening a live account with a broker. It s okay if you already have your own software. Just contact us if you need any help. Charts usually display military time as 00:00-23:00. To calculate the time, just subtract 12 hours. So if you see it is the 14:00 candle and you are not familiar with military time, subtract 12 hours and you know that is 2PM. I recommend you set your charts to GMT -4:00 in the Spring and GMT -5:00 in the Fall (when US changes time). In order to correctly follow what we are doing and saying, you would need to make this adjustment. If, for example, one of our traders writes that they entered the trade at 13:00, unless your charts are set to the same time zone, you won t understand or see what they are seeing. I recommend Fibonacci retracement tool settings of 23.6, 38.2, 50, 61.8 and These are used to measure the natural retracement areas of price waves, and will be important later. Give yourself time to practice and become familiar with the charts and trading platform. I m going to give you a specific system in this guide so that you can practice. This will help you develop proficiency with the tools, a familiarity with the vocabulary we traders use, and you ll be going through the motions of applying good trading logic. 8 8 Market Language There is definitely a vocabulary or language to trading a few words and terms. I think the fastest way to learn is to begin using the charts and trading platform. You find out quickly what you don t know or are not sure about. When you come across a word or term you don t know, just ask or look it up. I ll briefly define most of the words and terms that are important. Currencies are traded in pairs. So when we trade, we trade a pair such as the EURUSD. The currency on the left is the base currency. The currency on the right is the quoted currency. So that means when you look at a EURUSD chart, you are seeing the Euro value move up and down on the chart. The price on the right side of the chart is the USD. So that chart is telling you how much US Dollars it takes to buy one Euro. You don t really need to know that to trade, though. All you need to know is this: If you buy and price goes up, you make money. If you buy and price goes down, you lose money. If you sell, and price goes down, you make money. If you sell and price goes up, you lose money. Buying or selling is the exact same thing because of the great liquidity in this market. That just means that there are always buyers and sellers available. That is very different from stocks where price could be plummeting and you cannot close the trade because there are no buyers. What you need to know is this: buying and selling is the same exact action. Another thing you need to know is that price movement is measure in PIPs. Just think of it as a currency measurement just like quarters, nickels, dimes and pennies. Only it is even smaller. In US Dollars, a PIP is one 10,000 th of a cent (it was pointed out to me there are actually no pennies in the US, we just got in the habit of calling it a penny). Now you don t need to know all of that. All you need to know is that a PIP is the last two digits on the chart. As I write this, the EURUSD is at That means that the exchange rate is one dollar, thirty eight cents, and eighty two pips for one Euro. So as Forex traders, we are only watching the value in PIPs. You don t even need to know what PIP stands for. It used to represent Price Interest Percentage. It has become popular to call it Percentage in Point. 9 9 While you are new, stick with US Dollar pairs. It will save you confusion. For example, if you are trading the EURGBP (called a cross pair), there is no US Dollar in the pair. If you were from the US, you would need to determine the actual PIP value in US Dollars. Keep in mind that there are so many things that you can learn about this market. But if you want to learn fast, focus on only the essential things. Then learn the other stuff as you go. Keep trading as simple as possible I think it is useful for even a new trader to know that most of the volume in the Forex market is the US Dollar, Euro, Great British Pound, and Yen. USD 40, Euro 20, Pound 12, and Yen 8. Those are approximate enough to show you that 80 of all movement in this market is in those four pairs, with much greater volume with the EUR and USD. The Yen tends to be a little more erratic. So when you are new, avoid that currency. Currently there are some intervention issues going on around the Yen. An intervention is when a central bank, a group of central banks, or policy makers take action to alter the price of a currency. Setting up Your Charts For a new trader, I recommend practicing with EURUSD, GBPUSD, and then minor pairs AUDUSD and NZDUSD. You don t need a lot of pairs to practice. I would have liked to recommend the USDCHF, but recently the Swiss central bank began to intervene on behalf of their currency, as well. In my book, Forex Art of War, I show you a method that uses primarily longer term charts (4hr and daily). I believe that your best read on the entire market is going to be the 4hr charts. Having said that, trading the 4hr and daily charts are difficult for most traders because they come to the market expecting more opportunities than the market offers. So even trading 8 pairs, with a great method, you might only get one good setup a week. Most traders are not content with such few trading opportunities, though some certainly are. I include it in my book (Forex Art of War) because it is the best logic available. When you are newer, I think the most important thing to do is practice. You need to develop basic market proficiency with tools, logic and language. Tools such as charts and trading platform Language such as PIPs and Stop Loss 10 10 Basic trading logic that teaches trends, barrier, entry and exit This is what you need to get down in the first level, as I see it. Be careful not to take on too much at once or you will be easily overwhelmed. Just focus on getting proficient at those three areas first. To accomplish this, I m going to give you something to practice. First setup your charts so that you have EURUSD, GBPUSD, AUDUSD, and NZDUSD. Set each chart to be 5 minute candles. I recommend 5 minutes because this will give you plenty of opportunities to practice. I have important reasons for recommending the following. Place a 21 and 55 EMA on each of the charts. These are called exponential moving averages. It doesn t really matter how or why they work. All that matters is how we are going to use them. Next, I want you to put a Slow Stochastics indicator on each chart. This will usually appear in a lower pane under the chart. The K period will be set to 5, D set to 3, and K Slowing to 3. Make D the same color as your background. We are only interested in the K period. So if you can t change D, just be sure you know which one is the K line. There should be an upper horizontal line that is 80, and a lower line that is 20. Now you have four 5min charts with 21 and 55 EMAs and a Slow Stochastics indicator. I recommend candles. If you are using web based charts, you might be limited, which is ok. Obviously I am recommending candlestick charts. They are the most common charts being used. Once you get to know me, you will see that I m always just watching what the trend is doing, watching what everyone else is doing, and based on what they do, I form high probability conclusions. So if most traders are using candlestick charts, that s what I want to be using, too. Be sure and go to our forums at and ask for help if you have questions about charts. The Reason I ask you to setup your charts in this way: More trading opportunities (5 min charts) Learn to follow a trend (21 and 55 EMAs) 11 11 Learn to see a pullback (ahead in this book) Learn to see a barrier (ahead in this book) Learn to see exhaustion (Slow Stochastics) Learn to enter and exit trades (ahead in this book) If you are ever going to make profits trading Forex, you have to be able to successfully execute this logic. So even though we are not focusing on making profits right now, you are going to be applying much of the logic that does make you profits. Your chart should look something like this. You can adjust the colors however you like. I have a black background for both panes, but you can use whatever you want. Some traders prefer to use different colors for candles. Some need to use different colors because of the unique way their eyes (brains) process information. Whatever the case, it really doesn t matter what the colors are, as long as you know what they represent. 12 12 You only see one line on my Slow Stochastics because I made the D line black. It just blends in with the background. Again, both can show. just make sure you make K a distinct color. About Candles The time of the chart is on the bottom, left to right. On my chart, you see blue and red candles. The blue candles represent buyers and the red candles represent sellers. We could make these candles represent any time frame. In the second and third level, we change to 30 minute charts. Currently we are using 5 minute charts, designating that each candle is created in a 5 minute period. If you see a completed blue candle, that means there were more buyers than sellers during that 5 minutes. If you see a completed red candle, that means there were more sellers than buyers in that 5 minute period. Candles have bodies, wicks, and tails. These images are created by the high, low, open and close prices. So at the arrow, that is the tail (vertical line extending from the body down), and the lowest point of that tail is the lowest price that candle reached during that period. 13 13 The vertical line on the top of the candle is the wick. The rectangular part of the candle is called the body. If the body is blue, then the candle began (opened) on the lowest part of the body, and ended (closed) at the highest part of the body. If the candle is red, then price opened on the highest part of the body and closed at the lowest part of the body. These are quite a few details that I am throwing out at you, but it is information you need to know. So let s think about some of that. If there were three blue candles in a row, which way does price have to be going It can only be going up. The inverse is true of red candles. Sometimes it will be necessary for you to find out what the high, low, open or close is. You can eye ball this, but the more accurate way to do it is to use the cross hairs and display data box. On most charts, when you left click, and line up the vertical axis on any candle, a box will pop up. That box will tell you all of the specific information you might want about that candle. It will also tell you the positions of moving averages and other indicators. 14 14 The TREND As I mentioned in the beginning, all of our decisions are based on logic. That logic is the result of a study of historic patterns that are created by buyers and sellers. There are chart patterns, candle patterns, indicator patterns, and even other not so well known patterns. The most repeated pattern on the charts is what we call a trend. In trader speak, a trend is when you see price moving in a particular direction. In this picture on the left, price is trending down. The reason we want to know about the trend and learn to recognize it first is because MOST traders want to trade in the direction of the trend. So YOU should be looking to trade in the direction of the trend. A trend is any clear price move up or down. In this picture (right), price is not trending, it is sideways. On the left here again, I want to bring your attention to something else. The more experience you get, the less you will need to rely on indicators. The yellow lines are the 21 and 55 EMAs. They are moving averages. 90 of the time, they are going to give you an accurate read on the trend direction. That s good enough when you are learning how trading works. So trending is easy for you. If the faster moving average is on top, you only buy. If the faster moving average is on the bottom, you only sell. Don t overcomplicate this. Even some of the most skilled and successful traders use moving averages. Why Because it gives them something definitive on which to base decisions. The more experience you get, the more you will appreciate the value of good definition. So we can see in this picture that price is making a steady move down. We can also just look at the moving averages and see that they are apart and down. That s all we need to see for now. We are now building a trading method for practice that will consist of 15 15 Trend Pullback to barrier Exhaustion at the barrier Trigger Entry and exit So we have trend so far. Pullbacks The barrier is just as important as the trend. We said that traders like to trade in the direction of the trend. We also know from repeated observation that traders like to enter that trend when price pulls back. Because of this market psychology, you will see a pattern repeating over and over again. You will see a trend, you will see a pullback, and then you will see price push again in the direction of that trend. Look at the picture below. Follow the white lines. Price trends and pulls back, trends and pulls back So the next key is how do we know WHEN to get back on in the direction of the trend We see this happening over and over again, so the question is this: where will we get in 16 16 Barriers We know from looking at charts for years and tens of thousands of hours that traders like to enter a trend at a good barrier. Barrier is also called support or resistance. Resistance is always above price, and Support is always below price. So you will need to know how to draw horizontal lines on your charts. When price trends and then goes sideways, as you see on the left, this is called consolidation. There is another type of barrier (support or resistance) that is called historic barrier. This refers to a price area where price has trouble going below or above. I write price area because it is usually not a specific price, but a range of support or resistance. Historic Barriers: As you can see, I am using a rectangle to show this area where price has struggled to get above or get below in the past. You are looking for multiple touches. This takes some practice. So practice. Whether it is a historic barrier, or consolidations, both are barriers, both are support or resistance. Our goal is to anticipate where price is likely to bounce. 17 17 I m going to share one more technique that you will need to practice for identifying barriers. Remember to visit our forums we have created for you for help with all of these lessons. I can still remember how nice it was to have community when learning these techniques. The Fibonacci Retracement Tool Once you see your trend, and that trend begins to pullback, this is where we will look for our trade. The word pullback is also called retracement. Retracement refers specifically to the Fibonacci Retracement Tool levels. A pullback can refer to any reversal or price. In the beginning of this book, I gave you Fibonacci settings of 23.6, 38.2, 50, 61.8, and This is what that tool looks like all by itself. We start at the beginning of the trend, and then draw it to the end of the trend. It is extremely valuable because there are repetitive patterns here, too. This tool can help us to identify a good barrier. 18 18 First you need a trend. When that trend starts to pullback, that s when you can use the Fibonacci retracement tool. From here on out I ll refer to it as the Fib tool. Once we draw it, I ll refer to it as Fib. As you can see if you follow the arrows, price is going sideways, and then it begins to trend down. In a downtrend, we would want to sell. But we want to sell when price pulls back to a good barrier (green). The Fib can be one confirmation that we have a good barrier. 19 19 The Fib is always drawn from the left to right. You know it is time to think about drawing a fib because price begins moving back up. You ll see the opposite color candles like the one at the white arrow. You start the Fib where the trend begins down. Here is some knowledge for you and 38.2 are natural profit taking levels, and 50 and 61.8 are correction levels. No need to get more into it than that at this time. I suppose I could write a book on why I think this works, but the historical pattern is this: 38.2, 50, 61.8, and 76.4 can be barriers indicating where price will turn. I don t pay attention to the 23.6 barrier as a potential place for a trade. All too often it moves to 38.2 anyway. So I would like to see price move back to 38.2 before I consider a trade. Now you have two things to look for as a barrier. 1. A Fibonacci retracement level 2. A historic barrier. As you later move to the next level of trading, there will be other tools we can use, and we won t trade unless two barriers are present together. For now, you just want to practice. You only need one barrier. Exhaustion (at the pullback) At this point it will be difficult for you to see exhaustion. It s not impossible. It s just that you have your hands full right now. The more you practice, the more your eye will begin to see what real exhaustion is. Imagine (like our picture above) price is trending down. KEMUDIAN. price begins to pullback and buyers start to buy. We d like buyer interest to get tired, or run out of gas or at least see signs of it before we enter a trade. There are certainly times that I trade where there are no signs of price exhaustion. When price is trending quickly during peak market hours, it will often bounce quickly off our barrier and return in the direction of the trend. You don t have to concern yourself with this at this time. 20 20 For now, I ll show you a Slow Stochastics technique we used for years. Traders still use it today the world over. But since we trade logic and not an indicator, price is always going to paint a better picture. For now, let s stick with the indicator. Look at the lower pane where we have our K Stochastics line in purple. There are little arrows in circles pointing at the extremes. When price pulls back to the barrier, we want the indicator to be in the extreme (higher than 80 for a sell) (lower than 20 for a buy) and then be hooking back in the direction of the trade. See next picture. If you are following along you will see that price is trending down. The moving averages are in order (faster one on the bottom) showing a sell only trade. Price reaches the bottom, and we draw a fib. We are watching for price to reach the 38.2, 50, 61.8, or 76,4, or hit a historic barrier to set up a trade. At the two BIG arrows, you can see price reaching 38.2 and then next 61.8. That is the point where price reaches our barrier, and the Stochastics indicator is hooking back down. The problem here is that the Stochastics never reached the 80 level (top horizontal line) for a sell. So we would not have considered a trade in either of those locations. We want to go with the trend, have price pullback to our barrier, and have Stochastics extreme, turning in the direction of our trade. You might have to practice to get all of this straight. For example, if I m drawing a fib from the top to bottom of a down trend, I can only ever be looking for a sell. Stochastics can never be at the bottom extreme hooking back for a sell. It can only be above 80, hooking back for a sell. 21 21 Let me give you an example of all of these necessities lining up and coming back up the other way. Look at how the trend moves up (faster moving average is above), and then begins to a pullback the other way (back down). As it does, I draw a fib from the start of the trend to the top of the trend. Now I m looking for price to come down and reach at least the 38.2 Fib level. It does, and now I look to see if price is extreme. Ini. Look at the vertical line showing the alignment. The candle before the arrow establishes Stochastics at extreme. Now pay attention carefully: In order for the Stochastics to hook back up, that 5 minute candle at my arrow MUST finish and close. When it does, I can then enter the trade. See next picture. 22 22 The green line is the price at which the candle closed. So I enter the trade right there. If you are trading a 10k practice account, don t worry about your total risk at this time. Later we will control our risk to 2-5 maximum of our equity when we trade real money. For now, that just adds more complication to your practice. For now, when you trade, just buy or sell 10 contracts (lots). You just want to repeatedly practice these elements. The stop loss goes just one PIP under the swing low. The swing low is the most recent, lowest price reached. This is usually the lowest price retraced when we are talking about pullbacks. So now we know where to put our stop loss and know the price. The next step is to determine our exit. I recommend you only target 10 pips. In order to get 10 actual pips, you will need to overcome the spread. 23 23 The trading platform I recommend for practice is called the GTS Pro. It offers many helpful functions when you are newer to trading. Notice the floating EURUSD box I have in the front of the trading platform (green rectangle). You will observe a price on the left and the right side. On the left you have the bid and sell price at Bid and Sell mean the same thing. On the right, you have the ask and buy price at They mean the same thing. The spread is the difference between the bid and ask price, or the difference between the sell and buy price. When you execute a trade, price will need to first move the amount of the spread before you get to zero (breakeven, written as BE). So in the case of the Euro, the spread is 3 PIPs. Our entry price was Price has to move 3 pips in the direction of our trade in order to breakeven. Then a movement of ten more pips would bring us to So is our profit target. When you are actually 24 24 taking trades, be very sure to enter your stop loss in the trading station as quickly as possible. To reinforce how ridiculous it is to trade without a stop loss, imagine a NASCAR driver speeding around the race track without wearing a helmet. Or a parent leaving their two year old to play by the street while they go in to make tea. That s how outrageous it is. If anyone tells you different, you now know how absurd they are. If price is too close to your stop loss, the trading platform will not allow you to enter an automatic stop loss (usually the amount of the spread or closer). So if you entered this trade, and price dropped to. you would not be able to execute an automatic stop loss. You would need to manually close the trade when the stop price is reached. The same is true for the profit target. In the trading platform, this is called a limit. Now, I m going to give you a rule you do not need to understand right now (might hurt your head to try), but you absolutely must use it or you will wonder what is happening to you at times. Read carefully and pin it to your wall: WHEN IN A SELL TRADE YOU MUST ADD THE SPREAD TO YOUR STOP LOSS AND LIMIT WHEN TYPING IT INTO YOUR TRADING PLATFORM. This illustration above is a buy trade. So we don t do anything at all. The rule doesn t apply to buy trades. The rule only applies to sell trades. Let s walk through a trading setup again, 25 25 and then show how we would do things differently for our stop loss and limit in the trading platform. The faster moving average is on the bottom, so we can only sell. We draw a Fib from the top to the bottom of the trend. At the 61.8 level, the highest blue candle gets the Stochastics established in the upper extreme (must be upper for a sell). To hook back, the red candle at the white arrow must close. It does and you sell ten contracts immediately. Your stop loss goes 1 pip above the swing high. The spread is 3. You got in at. so your breakeven price is To make a 10 pip profit, price must move to So is your target. We now need to enter the stop loss and limit order in our trading platform. What is our rule WHEN IN A SELL TRADE YOU MUST ADD THE SPREAD TO YOUR STOP LOSS AND LIMIT WHEN TYPING IT INTO YOUR TRADING PLATFORM. What does that mean First of all, you don t change anything on your chart only on your trading platform. So the stop loss you type into the trading platform would be or Your limit order would be or That s what you type in the trading platform. Make sure you know the rule and know what to do. The reason for this is because if you are in a sell, your contracts are going to close at the buy price (3 pips higher). So when your chart price is at your target price (1.4060), the buy price will be at Easy just follow the rule if you don t understand. 26 26 Keep in mind that different currency pairs have different spreads. The spread might even change for the pair you are trading. Be sure to check the spread each time you trade. In summary, trading is a marathon, not a sprint. You must become proficient at language, basic tools, and basic logic. Once you do, then you will be ready for more. Always remember it s not about what the market does, it s about what you do. Always keep in mind that your success depends on your ability to make good decisions, not on what you see happening in the market. me with any questions: I wish you the very best on your journey Vance Williams In the pages that follow, you will find a Level 1 Trading Plan, all the tools you need for trading, and an introduction to the next level of trading. 27 27 Level 1 Trading Plan (see next page for charts and trading software) Trend If faster moving average is above slower moving average, only buy. If faster moving average is below, only sell. Barrier Need only one barrier Can use Fibonacci retracement levels Can use historic support or resistance Stochastics Must be at upper extreme or coming from upper extreme, hooking down for a sell. Must be at lower extreme or coming from lower extreme hooking up for a buy trade. Trigger Your trade is triggered when all of these parts line up at the same time. If price is extreme and hooking back, be sure to wait for the candle to close. If price is hooking in the direction of the trade at that time, you enter. Take one trade at a time Trade 10 Contracts 28 28 Trading Platform and Trading Software You are welcome to use any charting software and any broker. I do not have a financial relationship with any broker. I recommend FX Solutions because I have been doing business with them for six years. They offer the tools for free, and the tools are very good. The way this works: If you register for a free 10k Practice Account, you will receive an with a username. That username can be used to login to charts and trading platform. 10k Practice Account Registration Upon registering, you will receive a second with a link to a new page. This page will provide free downloads, and video tutorials teaching you how to use the charts and trading platform. Be sure to let us know if you do not receive that second. Note: If you are a MAC user, to take full advantage of Forex trading software, you will need to acquire a program like Windows Parallels or get an inexpensive stand-alone PC. You can use web based software if it is your only options, though functionality will be somewhat limited (MAC is only 10 of the PC market). Please visit our Forums for technical questions and support at the following link: Forex Art of War Technical Forum Community Teamwork In all of my years of working with traders, I have found it to be of great value to be a part of a community of like-minded people. This is where you can share your trades, and share your point of view with others on their trades. This can greatly accelerate the rate at which you learn. You can access our public forums at the following link: THE FIRST BATTLE - Trader Community Forum 29 29 The Next Step SEIZE THE HIGH GROUND Once you have become proficient with the information in this book, it will be time to consider our second program, SEIZE THE HIGH GROUND. Write to me: for more information. It is a premium membership, however we are striving to keep prices as low as we possibly can while assisting you with your goals. Level 2: SEIZE THE HIGH GROUND The purpose of this program is to help you master the precise logic and tools you will later be using in Level 3, which is your method and trading plan. There are limitless setups you can choose to trade in Forex. My concern is teaching you where the best opportunities are. Trading decisions are not just about what price is likely to do. I ll be teaching you how we know which direction price is likely to go. I ll show you the optimal entry and the optimal exit. I ll teach you why trading a 1 or 5 minute chart is very difficult, why Daily and 4hr charts are easy, and why we choose to teach you to trade a 30 minute chart. I ll be teaching you insights into the market that few ever realize are taking place. All of this to give you a clear edge over other traders in the Forex market. Here is a sample of what you will be learning: New Wave Fibonacci formula for measuring trends How to Control Risk How to read price exhaustion How to read the correct trend to trade How to choose strong barriers How to factor in Time of Day When to stay out of the market And More. This will also include a Level 2 trading plan, community forum, live trading sessions, and videos assisting you to gain more insights into what I am teaching. Again contact me: if you would like to learn more.
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