Forex Patterns & Probabilities by Ed Ponsi
Content :
Acknowledgments
About the Author
PART I The World’s Most Dynamic
Trading Market
CHAPTER 1 Getting Started in Forex
From Stocks to Forex Getting to Wall Street Welcome to the Jungle Football and Forex Stock Market Headaches Welcome to Forex A New Beginning
CHAPTER 2 All About Forex
The Canadian Dollar and the U.S. Dollar
The Euro and the U.S. Dollar Trading Terminology An Easy Way to Understand the Exchange Rate
CHAPTER 3 Questions and Answers
Why Does the Big Money Trade Forex? Why Is Forex Suddenly So Popular?
How Do Traders Make Money in the Forex Market? Why Do Currencies Trade in Pairs? How Can I Trade Two Currencies at One Time? How Is 24-Hour-per-Day Trading Possible? How Is the Trading Day Structured? Greenwich Mean Time
CHAPTER 4 Technical Analysis and the Forex Market
The Theory behind Technical Analysis Statistical Survey Fear of the Unknown Trading Patterns and Technical Indicators The Psychology behind the Market Moving Beyond Technical Analysis Trends Proper Order Fibonacci Techniques
CHAPTER 5 Things You Need to Know Before
Trading Forex
The “Triple Threat” Trader Gaining Experience Which Pair to Trade? Commodity Currencies Don’t Limit Yourself Trading and Karma Schadenfreude
PART II Trading Strategies for Trending Markets
CHAPTER 6 Understanding Trends and Tendencies
Trading Conditions The Importance of Maintaining Objectivity Begin with a Tendency Putting the Trend to Work
Take Me to the River How to Determine If the Market is Trending
CHAPTER 7 The Anatomy of a Trend
Why Trends Form Don’t Fight the Trend
CHAPTER 8 Forex Multiple Time Frame Strategy
Why Does It Work? Combining Fibonacci and Trend Overbought Does Not Equal “Sell” Picking Tops and Bottoms The Entry Signal Placing the Stop Getting Out Welcome to the Real World Tweaking the Exits Executing the Plan Second-Guessing Bringing It Home The Devil’s Advocate When to Stay Out Reloading the Trade Fantasy versus Reality Phantom Signal Temporary Success and Failure The Stop Run
CHAPTER 9 The FX-Ed Trend Technique
Trends Are Self-Sustaining -Difference of Opinion- Big Money at Work – The Common Denominator – Long or Short
Identifying the Trend Filtering the Trend The Catalyst Placing the Stop Volatility Stop Comparing Apples to Apples ATR Calculation The Entry The Stop The Trade Don’t Fish for Minnows Back to the Trade Denouement The News versus the Trend Appearances Can Be Deceiving More Than One Chance Partial Exit Exercise Discretionary and Strategic Exits Faulty Wiring Partial Exit Technique Reloading Important Points to Consider Final Thoughts
PART III Nontrending Trading Techniques
CHAPTER 10 The Ultimate Indicator
The Price Is the Key
Why Support Becomes Resistance The Pleasure Principle and Trading Price Action Don’t Stand in Front of a Freight Train
CHAPTER 11 Keys to Intraday Breakouts
Ascending and Descending Triangles Trend Filter
Time-of-Day Filter Summary
CHAPTER 12 Flags and Pennants
Pennants Flags Filtering Entries Summary
CHAPTER 13 The Squeeze Play
The Cycle of Volatility Perception Moves the Market Volatility Breakout Strategy
CHAPTER 14 The Round Trip
Why Round Numbers Capture Our Attention Why Round Numbers Are Effective Round Numbers and Forex The First Bounce Is the Best Bounce Using the Moving Average The Strategy in Action
CHAPTER 15 The Interest Rate Edge
Think Like the Big Boys Interest Rate Differentials Here’s How It Works Changing Differentials
What’s the Big Deal? Collecting Interest U.S. Dollar/Japanese Yen
CHAPTER 16 The Boomerang
Fading False Breakouts The Strategy Setting the Parameters Entering the Trade Simple but Effective
PART IV Take Control of Your Trading Destiny
CHAPTER 17 How to Achieve Spectacular Gains
Keep Your Eyes on the Road Proper Goal Setting Breaking Down Your Goals Consistency Is the Key What Happens When I Reach My Goal?
CHAPTER 18 The Forex Playing Field
Evening the Odds The House Has the Edge Make the Playing Field Bigger But the Other Trading Instructor Said . . . Let’s Do the Math Changing the Equation Why Doesn’t Everyone Do It? Huge Gains with Minimal Effort! What We Can Learn from the “Smart Money”
Now Get Out There and Win
CHAPTER 19 Trading Lessons from Life
Panic at the Beach The Endless Tournament Summary
CHAPTER 20 What You Don’t Know Can Hurt You
Sarcasm Alert! Know When to Retreat The “95 Percent Winners Strategy” Beware the Back Tester Hypothetically Speaking
CHAPTER 21 A Tale of Two Traders
Individuals versus Institutions The Difference Between Amateurs and Professionals
CHAPTER 22 Some Final Thoughts
A Good Trade Is Not the Same Thing as a Winning Trade Proper Execution Is Critical Take Responsibility for Your Actions Keep It Simple Physical versus Mental In Closing
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