How To Simple with Metatrader 4

Supply and Demand Zones

This video explains what supply and demand zones are (price levels likely to attract many orders), and how to profit from trading around them.

A Trend-Following Technical Analysis Method

The Technical Tools I Use

First, I largely recommend keeping it simple. I think it is better to focus on a few things and become really good at them rather than trying to learn everything but having a cursory understanding instead of real mastery of many technical analysis subjects. For me, at least, specializing in a few markets and methods is what gives me the edge I need to succeed.

The three technical tools I use are as follows:

1. Horizontal Support and Resistance Levels. Support and resistance is a concept I think is worth mastering; perhaps the most important technical concept, in my opinion. The basic idea is to look for levels that are acting as a “wall” of sorts; a barrier where price tends to have trouble breaking through, and often reverses from. Price levels where support (a lower barrier) and resistance (a higher barrier) emerge signal where buyers and sellers may be sitting. As a result, they are often good entry and exit points; levels where we can find a low-risk way of speculating upon a reversal in price.

2. Trendlines. Trendlines are a bit like diagonal support/resistance levels. In order for a trendline to be valid, I like for it to be touched three times, with the market failing to close below it each time, and preferably rallying strongly off it. Trendlines can also be a point that the market reverses from, and thus a potentially low-risk way to speculate upon a price reversal.

3. Candlesticks. The last technical concept I like to focus on is candlesticks. Specifically, I look for long wicks -- a condition where the straight line of the candlestick is much longer than the body of the candle. I view long wicks as an indication of where bulls/bears will step in to defend a price level and create a reversal. When a market forms a long wick off a trendline or a support/resistance level, I view it as a particularly favorable sign for a price reversal.

Trailing Your Stop

Of course, identifying levels that price will reverse from is only one part of the equation; stop loss placement (the price at which you will exit and take a loss) and position-sizing (how many shares, ounces, or currency units being purchased) are very important. My previous article on managing risk across timeframes illustrates my position-sizing strategy; I believe position-sizing and stop loss management need to be designed in a complementary fashion, in consideration of one another.

Here is my my basic approach:

1. First, I identify where buyers/sellers will step in to defend a price zone, and I place my stop just beyond that reach. Invariably I will miscalculate and incur some losses; I accept this and view it as almost inevitable. What percent of my account I am willing to risk on this trade depends on what timeframe the trade is being placed upon, as I previously noted.

2. Based on where I put my stop-loss, I enter a position size accordingly. For instance, if I purchase stock ABC at $10 per share and place my stop at $9, that means I am risking $1 per share. If I have $1,000 in my account and am willing to risk 2% per trade, that means I can risk $20. This means I can purchase 20 shares.

3. I re-evaluate the market after each candle on the timeframe I place the trade on. For instance, if I am trading off the daily chart, I re-evaluate the position each day, after the new candle forms. What I like to see is a big move in my favor, and a new support/resistance level established. Once I see a new support/resistance level established, I move my stop up accordingly.

4. Once I can move my stop up to break even, I look to take on more risk. One way I like to do this is by looking at a lower timeframe. For instance, once I’m able to trail my stop up to break even or lock in some profits on the weekly timeframe, then I’ll look at the daily timeframe to see opportunities there; once I can enter and safely trail up on the daily, I’ll look at intraday opportunities. Of course, I have to be sure I can manage this within the parameters of my lifestyle; trading on a 15 minute chart and re-evaluating the market every 15 minutes can be exhausting, and may require certain technological aids (smartphones to enable mobility, timers to remind me).

And that’s basically it; my goal is to ride trends until they are exhausted.

Moving Average and MACD Combo Strategy

The key steps of the strategy are as follows:

1. Wait for price to be at least 10 pips above the 50 SMA and the 100 SMA
2. At this point, check to see if MACD turned positive within the past 5 candles; if not, re-evaluate the next time MACD does
3. If those criteria are met, enter
4. Place your stop loss order below the 5 candle low
5. When price reaches 2X the distance between your entry and your stop, exit half your position for a profit, and move the remainder to breakeven
6. Exit the rest when price falls 10 pips below the 50 SMA

Understanding Standard Deviation in Trading

Understanding Standard Deviation in Trading, Part 2: The Math

Interview With Richard Duncan, Author of The New Depression

Richard Duncan's web site: http://www.richardduncaneconomics.com

Richard Duncan is author of the following book :
The New Depression: The Breakdown of the Paper Money Economy

Here's a summary of the points discussed:

1. The book starts with a discussion of fractional reserve banking, observing the connection between debt and money and how debt and inflation go together.

2. Richard views the current monetary system as flawed and in trouble, but does not view a return to a gold standard of any kind as possible. Rather, he thinks the best hope is for governments to attempt to borrow at very low rates and invest not in consumption but in growth -- invest in projects that will offer a high economic return. He cites investing in a new energy grid as an example.

3. Richard does not view China dumping US Treasuries, or the world decoupling from the dollar as a viable threat. This seems to be part of why he believes there are a few more years left where low interest rates are achievable.

4. In terms of investments, Richard favors real estate that can be turned into rental income. He finds public stocks to be a bit too close to the derivatives crisis, and does not think gold is immune to a severe decline if growth cannot be obtained.

Book Review: A Trader's Money Management System

A review of Bennett A. McDowell's book, a trader's money management system.

Day Trading Methods So Easy Anyone Can Use

Trading price action with John Paul.

Yes It is Possible to Make a Million Dollars Trading (Quote From Market Wizards)

Michael Marcus told Bruce Kovner that it was really possible to make a $1,000,000 trading

How to Trade Forex Using RSI Tutorial