Metatrader 5 Overview

The Importance of Exit Strategy - Part #1

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How to Exit While Trading with Trendlines

Talking Points:

• Traders should focus on their exit plan just as much as their trade entries.
• Trendline traders could set their stop losses beyond the nearest support or resistance level and set their limits within the nearest support or resistance level.
• Setting exit prices according to support and resistance levels could tip the odds in your favor.

How Important Is Your Exit Strategy?

Many traders have a strong set of rules that they follow to enter trades, but have difficulty in selecting their exits. This is troubling because how we exit a trade should be just as important, if not more important than how a trade is entered. After all, our exits ultimately determine if our trades are profitable for us or not. So we need to make sure our exit strategy is just as logical as our entry strategy.

When we place our trades based on trendlines, we are placing them based on support and resistance levels. We are thinking the price will bounce off a trendline like it did in the past. I propose we use the same logic when setting our stops and limits.



In the example above, it’s easy to see the sell entry that was given to us based on the bearish trendline. We entered right at the trendline looking for a bounce back down, but where do we want to exit? When do we call it quits if the trade goes against us? Where do we place our profit target? Let’s take a look.

Setting Stops Beyond Support/Resistance

We need to look at placing our stop somewhere above this trendline. If the resistance is broken through, we were wrong on the trade and should accept the loss quickly. It’s possible that price could return back to profitable territory after breaking this resistance, but we cannot rely on being lucky. We can only trade based on what we see.



I like to set my stop 5-25 pips from the closest support/resistance level depending on the time frame I am trading. The smaller the time frame of the chart, the tighter I will place my stops. On this trade, I set my stop 5-6 pips away from my entry since that was beyond the resistance line as well as the previous swing high (Bounce #2).

Remember that when we set our Stop loss, this is also setting our monetary risk on the trade. So we also need to consider our trade side in respect to our Stop loss distance.

Setting Limits Within Support/Resistance

Now that our stop is set, we need to focus on our profit target. For our limit placement, we have two objectives:

• Our limit’s distance needs to be further than our stop’s distance.
• Our limit needs to be placed within the closest support/resistance (by at least 5 pips).

The reason we want our limit further than our stop is because we always want to try to make more money than what we are risking on each individual trade. This is something we discuss heavily at DailyFX so I will say it again here. We want a positive risk/reward ratio.

And the reason we want our limit to be placed within the closest support/resistance level (by at least 5 pips) is for the exact same rationale we used to open this trade to begin with. We know prices have a tendency to bounce off price levels they have bounced off of before, so we want to make sure that no support/resistance is in between our entry and our limit level. In the example below you can see I placed my limit 5 pips above the swing low (potential support). This gives price a clear path to a profitable trade.



Trendline Strategy Complete

This trendline strategy is one that can be used universally across all currency pairs and time frames so it is definitely a worthwhile style of trading to learn. The logic behind the entry and exit rules is also something that can be tailored to other types of strategies as well. Good trading!

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The Importance of Exit Strategy - 2

Risk Management - Exit Strategy Video 2 (part 2 of 4).

Stock Market Timing

January barometer - (from wikipedia) : "The January barometer is the hypothesis that stock market performance in January (particularly in the U.S.) predicts its performance for the rest of the year. So if the stock market rises in January, it is likely to continue to rise by the end of December. The January barometer was first mentioned by Yale Hirsch in 1972"

This is the page #16 of 2008 edition of this book (Stock Trader's Almanac 2008) :

The Importance of Exit Strategy - 3

• what are the goals to exit
• how does chosen market move
• approach for exit
• initial stop loss management
• ongoing exit management
• multiple pairs
• news and economic releases

read/watch more here:

The Importance of Exit Strategy - 4

Risk Management - Exit - Strategy video (part 4 of 4)

3 Candlestick Patterns For Market Reversals - Morning Doji Star, Evening Doji Star, Island Reversal Patterns

Stock Market Technical Analysis - Aroon Mid Point

This is practical example about how to use different indicators for technical analysis.

Preliminary Announcement of the MetaTrader 5 Client Terminal build 900: Magazines in MetaTrader Market and New MetaViewer

Over the next week, we will release the MetaTrader 5 client terminal update. After the release of the update, we will publish an additional news containing the full list of changes and the build number. The following changes are planned:

1. Market: Added new product category in MetaTrader AppStore - Magazines. Now, users can buy not only trading applications but also trading and financial magazines quickly and easily.
   
   
   
   
   Just like MetaTrader 5 applications, magazines can be purchased at MQL5.community Market as well as directly via MetaTrader 5 terminal. All magazines are accompanied by detailed descriptions and screenshot galleries:
   
   
   
   
   
   The latest magazine issues are always displayed in the showcase, while the previous ones can be found on the Archive tab.
   
   To buy a magazine, you should have an MQL5.com account and the necessary amount of funds on it. The account data should be specified at the Community tab of the terminal settings:
   
   
   
   
   
   Click Buy on the magazine's page to purchase it. Purchase confirmation dialog appears:
   
   
   
   
   
   To continue, agree to the rules of using the Market service and enter your MQL5.community password. After that, the specified amount of funds will be withdrawn from your account and the magazine will be downloaded. Buy button will be replaced by Open one.
   
   Magazine files are downloaded to My Documents\MQL5 Market\Magazines\[Magazine name]\[Issue name]. The download may be performed in two formats:
   
   • MQB - this protected format is used for paid magazines. When purchasing and downloading a magazine file, it is encoded so that it can be opened only on the PC it has been downloaded to. Generation of an encoded copy is called activation. Each magazine can be activated at least 5 times on different hardware. Magazine sellers can increase the number of activations at their sole discretion.
   • PDF - this format is used for free magazines. After downloading, such file can be moved and viewed on other devices.
   
   The special component called MetaViewer has been added to MetaTrader 5 terminal allowing users to view MQB files. This application is launched when you click Open at the downloaded magazine page. If User Account Control system is enabled on the user's PC, the user will be prompted to allow the terminal to associate MQB files with MetaViewer during the first launch. After the association, MQB files are automatically opened in MetaViewer when launched from Windows file explorer.
   
   
   
   If you click ОК, the files are associated and the selected magazine issue is opened in MetaViewer immediately. If you click Cancel, only the magazine issue is opened.
   
   
   
   
   
   MetaViewer is a convenient application for viewing books and magazines in MQB and PDF formats. Keyboard arrows are used to turn over the pages: left and right arrows - for page-by-page navigation, while up and down arrows - for scrolling. MetaViewer menu and control panel contain additional commands for setting the journal's view and navigation:
   
   
   • File - commands for opening the files and exiting the program.
   • View - display settings: interface language, page look, enabling control panel and status bar, as well as page rotation.
   • Navigation - navigation commands: switching between the pages, moving to the first, last or selected page.
   • Zoom - page scale management commands: zooming in and out, fitting height, width and actual page size.
   • Help - information about the program and useful links.
   
   
2. Terminal: added MQL tab to EX5 file properties. The tab contains the program's icon as well as its name and description specified in the application's source code via the appropriate #property parameters.
   
   
   
   The tab appears only after MetaViewer is registered in the system. If a current user has sufficient rights and User Account Control system is disabled, MetaViewer is registered automatically during the terminal's first launch after the update. Otherwise, the user will see the dialog window requesting a one-time elevation of rights for MetaViewer during the first attempt to open a magazine.
   
   
   
3. Terminal: Added MQL5.community fast registration dialog in case a user has no account. Now, an MQL5.community account can be created without the need to leave the terminal.
   
   
   
   
   
   Specify login and email address in the registration window. After clicking Register, an email for MQL5.community account activation is sent to the specified address.
   
   MQL5.community account allows traders to use additional powerful services:
   
   • MetaTrader 5 AppStore - users can buy MetaTrader 5 apps or download them for free directly from the terminal. MetaTrader 5 AppStore offers hundreds of various applications and their number is constantly increasing.
   • Signals - users can subscribe to trading signals provided by professional traders and make profit. Trading operations are automatically copied from provider's account to subscriber's one. The service also allows selling your own trading signals. A trading account can be connected to the monitoring system in a few clicks.
   • Jobs - a freelance service allowing customers to securely order the development of MetaTrader 4 and 5 applications. The orders are executed by experienced programmers. The service also allows you to make profit by developing programs ordered by customers.
   
   
4. Terminal: Fixed the depth of market freezing when the best bid price is higher than the best ask one.
5. Terminal: Fixed setting the fill policy type for market trade requests depending on the trade symbol's execution type and allowed filling modes.
6. Terminal: Fixed display of incorrect SL and TP values in the position open dialog in case there is a position with placed SL and TP levels and the levels are placed "In Points". Incorrect SL and TP level values in points have previously been inserted to these fields. Beginning with the new build, the values in the above mentioned case are displayed in prices regardless of the level placing mode.
7. Terminal: Fixed occasional incomplete display of the trading history for the current day.
8. Terminal: Reduced memory consumption during MQL5 CodeBase and MQL5 Market operation.
9. Terminal: Fixed working with context menus when using touch screen devices powered by Microsoft Windows 8 or higher.
10. Market: Added product activation confirmation dialog displaying the number of remaining activations.
    
    
    
    Each application purchased in MetaTrader AppStore is additionally protected, so that it can be launched only on the PC it has been downloaded to during the purchase. Generation of an encoded copy is called activation. Each product can be activated at least 5 times on different hardware. Sellers can increase the number of activations at their sole discretion.
    
    The new dialog protects users from wasting activations by informing that their number is limited.
11. MQL5: Fixed crash when initializing primitive type arrays by a sequence.
12. MQL5: Fixed errors when working with #ifdef/#else/#endif conditional compilation macros.
13. MQL5: MQL5 language compiler moved to MetaEditor. The compiler will be available for download as a separate .exe file.
14. Signals: Added information about a signal, to which an account is subscribed, to the Navigator window:
    
    
    
    
    If the account is subscribed to the signal, the appropriate icon with the signal's name is shown for it. When hovering the mouse cursor over the name, the subscription's expiration date is displayed. The context menu contains commands for viewing the signal and unsubscribing from it. The latter one is displayed only if the appropriate trading account is currently active in the terminal.
    
    The subscription icon makes working with signals more convenient.
15. Signals: Added legend for equity, growth, balance and distribution graphs. Also, marks displaying funds depositing and withdrawal have been added to the equity graph. When hovering the mouse cursor over the balance operation triangle, a tooltip with the operation sum is displayed:
    
    
    
    
16. MetaEditor: Fixed the loss of focus in the code editing window that occurred after the first compilation.
17. MetaEditor: Fixed automatic scrolling of the compilation window to the first warning if there are no errors.
18. MetaEditor: Fixed highlighting predefined _DEBUG and _RELEASE macros in the source code.
19. MetaEditor: Fixed operation of snippets if the automatic entering of line indentations is disabled.
20. Fixed errors reported in crash logs.
21. Updated documentation.

The update will be available through the LiveUpdate system.

How should I choose my trade strategy?

Case shows slides about what strategies to use in high and low implied volatility situations. Her and Tom talk about how the market conditions affect the types of plays she makes.

Correctly Using MACD/Fibonacci Technical Analysis

It is mostly related to trading options (same case as with previous video) but it is interesting to watch because it is real practical example.

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Most traders use MACD/Fibonacci analysis wrong. Here's the right way to use these indicators along with some live examples!