ForexFalcon Trading

- Automatic Trend Detection

- The Power Of Nested Trends

- Perfect Setup Timing

- Perfect Entry Timing

- Entry Automation

- Easy To Follow Systems

- Setup Announcements

Introducing the DTS Pro System

Successful trading requires not only sound market analysis, but also timely execution and effective management of trades. DTS Pro System is not only a trading methodology based on logical and sound market analysis, but also an innovative set of tools that helps you automate the execution and management of high probability setups. Thus, freeing you from the need to be glued to the chart screen all day long, but not missing out on the opportunities!

DTS Pro System is not one of those run of the mill black box systems available out there in the noisy forex industry. I will share with you the complete trading methodology, and how to use of the system tools to trade successfully.

I take great pride in being open and honest. I aim to empower you with the knowledge and equip you with the enabling tools to become a successful trader. I shall describe below the DTS Pro System in detail. After having understood the sound logic of the trading system, I believe you’d agree that the DTS Pro System is definitely worth your reasonably small investment. Let’s dive in!

 

The DTS Pro System

With the DTS Pro System we enter as soon as possible into a new trend. Using this entry methodology we can catch up to several hundred pips by riding the new trend. The holding time of the trades depends on your personal preference:


1. If you want to have a high winning percentage (around 65-70% with a Reward/Risk-ratio of 1.0) for your trades, then you can decide to trade only the next swing move after the entry signal has occurred. The holding time of these trades is usually 1 to 3 days.

2. If you can handle a lower winning percentage (but become even more profitable because of the better Reward/Risk-ratio), then you can decide to ride the trend. This means you will hold the trade during multiple swing moves and correction phases of the trend. The holding time of these trades can be weeks.

In both cases the winning percentages are relatively high considering the respective profit targets set. The overall high winning percentage is achieved by judiciously selecting the very best setups and then wait for confirmation. The trend will carry our winning trades.

The DTS Pro System uses a top down approach similar to a triple screen trading method (e.g. as described by Dr. Alexander Elder). We search for possible setups on the higher time frames D1/H4, then we wait for confirmation of the new trend on the time frame H4 and subsequently, if everything is in place, we time our entries on the H1 time frame. In addition to the price action, we use VOLUME as a confirmation of the new trend. VOLUME is the only leading indicator in trading. Without VOLUME you are trading blind. VOLUME tells you what the smart money is doing, and you only want to trade in the same direction as the smart money.

The 3 main components of the DTS Pro trade setups are:

1. Price action on the H4/D1 time frames
2. Confirmation of the new trend
3. Price action and volume on the H1-Chart for the entry timing


As you will see, the DTS Pro System is designed to make the tasks of detecting and executing the trade setups very easy.

The DTS Pro System is ideal for part time traders. Nobody can watch the markets around the clock. The DTS Pro System solves this problem. With the DTS Pro System, you only need to check the charts every 6 to 12 hours. That's all. And you will never miss a single setup. You have plenty of time to act with this trading methodology. If you see confirmation of a setup (components 1 and 2 of the trade setups are fulfilled), you can then configure the DTS-Pro-ExpertAdvisor. The configuration takes only seconds. The ExpertAdvisor will then automatically execute the trade entry. If you want to trade manually, you can also place limit entry orders. This is professional trading with only a few minutes of work per day!

 

 

What we trade with the DTS Pro System

 

 Following screenshot shows one short and one long entry signal of the DTS Pro System:


In the screenshot above you can see that the entry signals occur at the beginning of a new trend. DTS Pro uses the well-known edge "The biggest momentum is at the market turning points". Therefore these two entries are the only two valid entry signals of this price chart.

Prior to the short entry signal there was an uptrend. The uptrend gets broken and the downward trend begins. We enter into the first retracement of the downward trend.

The same rules are applied for the long entry signal. Prior to the long entry signal there was a downward trend. The downward trend gets broken. We enter into the first retracement

With the DTS Pro System, we always only enter into the first retracement in a new trend. The first retracement in a new trend has by definition the highest success rate and the biggest profit potential. We want to enter into highest quality trades. We want to earn money with trading. We don't search for entertainment in the markets with a large number of bad quality trades.

The screenshot above shows the basic setup of the DTS Pro System, which repeat in all forex pairs, indices and commodities. We will add further edges to these setups as filters to get even higher quality trades with higher probability of success.

 

In the screenshot above you can see that the entry signals occur at the beginning of a new trend. DTS Pro uses the well-known edge "The biggest momentum is at the market turning points". Therefore these two entries are the only two valid entry signals of this price chart.

Prior to the short entry signal there was an uptrend. The uptrend gets broken and the downward trend begins. We enter into the first retracement of the downward trend.

The same rules are applied for the long entry signal. Prior to the long entry signal there was a downward trend. The downward trend gets broken. We enter into the first retracement

With the DTS Pro System, we always only enter into the first retracement in a new trend. The first retracement in a new trend has by definition the highest success rate and the biggest profit potential. We want to enter into highest quality trades. We want to earn money with trading. We don't search for entertainment in the markets with a large number of bad quality trades.

The screenshot above shows the basic setup of the DTS Pro System, which repeat in all forex pairs, indices and commodities. We will add further edges to these setups as filters to get even higher quality trades with higher probability of success.



Are You A Swing Trader Or A Trend Trader?

To be highly successful as a trader, your trading method must fit your personality. With the DTS Pro System, you can shape your own trading style around the concepts and edges of the system. As you will see later, the entry style, stop and target placements have a big impact on the winning percentage of the trades. You can trade the DTS Pro System with an extremely high winning percentage of above 80%. But it can be beneficial if you can accept a lower winning percentage. The results of all trend-based trading systems tend to be more stable and more profitable with a lower winning percentage. If you are a badass trader and you can handle a winning percentage of only 30 - 40%, you will probably make more money than a trader with a winning percentage of 70 - 80% when you trade the same setups. On the other hand, if you can't psychologically handle a low winning percentage of 30 - 40%, then overall, you will be better off and making more money by adopting a higher winning percentage trading style.

The winning percentage with which a trader feels comfortable is highly subjective. Therefore you have to find your own comfort zone. I found mine at a winning percentage of around 70%. The famous market wizard trader Marty Schwartz once said in an interview that he needed a high winning percentage of above 70%. This is probably a good starting point for you too. Later on, if you wish, you may adapt and transform yourself into a trader who's comfortable with lower winning percentage, but with even higher overall profits.

Your decision to be either a swing trader or trend trader using the DTS Pro System will have a big and direct impact on the winning percentage of your trading style.

Following chart shows the profit targets of both trades if you decide to be a swing trader:

 

As you can see in the screenshot above, both trades would have been winning trades if you adopt the swing trading style, and thereby holding the trade only during the first swing of the new trend. The holding time of the short trade would have been approximately two days. The long trade would have reached the target within several hours.

The following chart shows the profit targets if you decide to be a trend trader:

 

 

As you can see in the screenshot above, the winning trades of the trend trading style would generate much bigger profits compared to the winners of the swing trading style. Because the profit targets are set farther away from the entry point, the winning percentage of the trend trading style is lower compared to that of the swing trading style.

Based on the stop distance that I use for my trades, the short trade would have been a big winner while the long trade would have been a loss trade. Although the direction of the long trade was correct, the additional stophunt by the smart money (shown in following screenshot) would have taken out my stop (horizontal line -> Stoplevel).

 

 

The example above shows you the inherent characteristics of trend-based trading systems. They tend to be more profitable with lower winning percentages. I have compiled statistics of 3000 trades that lend support to this statement.

The swing trading style would have given 2 winning trades (100% winning trades), yielding a profit of 2R (2 times the initial profit).

The trend trading style would have produced 1 win trade and 1 loss trade. The win short trade could have been a 4R winner and the loss long trade would have cost us 1R. So the trend trading style could have yielded a profit of 3R.

I personally adopt the swing trading style. Sometimes I try to hold the trades a little bit longer. When there are no valid setups, I simply do not trade. I prefer to have days without open positions. For these are days of recreation for me :-)

 

 

When does a new trend begin?

The DTS Pro System makes it relatively easy to detect when a new trend begins. Price action and volume show you the beginning of a new trend with high accuracy. The following chart shows the two points of the chart where a new trend starts according to the rules of the DTS Pro System:

A downward trend starts if:
1. there was a preceding upward trend, and
2. then the price goes below the inner red line of the DTS_Pro_Trend-Indicator, and
3. the volume (indicated by the DTS_Pro_Divergence-indicator) is strong below its moving average. 


Only if all three criteria are fulfilled then a new downward trend has started with high probability.

An upward trend starts if:
1. there was a preceding downward trend, and
2. then the price goes above the inner green line of the DTS_Pro_Trend-Indicator, and
3. the volume (indicated by the DTS_Pro_Divergence-indicator) is strong above its moving average. 


Only if all three criteria are fulfilled then a new upward trend has started with high probability.

The tollowing chart shows that all criteria have been fulfilled before the entry signals were created:

 

From these examples you can see why the DTS Pro System is ideal for part time traders. The timespan between the confirmation of the new trend and the entry signal was in both cases (short and long trade) approximately 1 day. This is plenty of time. If you can check the charts every 6 to 12 hours, then you will manage to detect all the setups. I can't remember when I missed the last setup. After you have visually spotted a new valid setup, you can then configure the ExpertAdvisor (DTS_Pro_EA) to execute the trade. This procedure takes only seconds. After having done so, you don't need to watch the market anymore. The ExpertAdvisor will make the entries, stop and target settings.

 

 

 

The DTS Pro Divergence Indicator


As I mentioned above, the DTS Pro Divergence Indicator is based on volume. Volume is the only LEADING indicator in the financial markets. Traders who trade without volume are blind. With volume you are able to see a market move before it happens.

When the smart money accumulates its own position, you will often see that the thick black line of the DTS Pro Divergence Indicator is far away from its moving average (the thin blue line). You will then often see a strong move of price in the same direction of the thick black line of the divergence indicator. Such strong move is the profit release phase of the smart money, whereby it distributes its own accumulated positions back to the herd with profits.

A divergence between price and volume occurs (therefore the name divergence indicator) if the volume is far away from its moving average and at the same time the price is close to the blue moving average on the price chart, or even on the opposite side of the blue moving average. Since volume is the leading information, the price will follow subsequently with high probability. 

Following screenshot shows you bullish divergences. The price follows most of the time:

 

 

The following screenshot shows you bearish divergences. The price follows most of the time:

 

All bullish and bearish divergences could be traded as swing trading setups also. But such setups are not part of the classical DTS Pro System. The rules of the classical DTS Pro System give you only the setups with the highest probability of success: the ones at the beginning of the new trend.

A general rule of thumb: The more the thick black line of the DTS Pro Divergence Indicator deviates from its moving average when a new trend starts, the higher the probability of success the trade will have.

If you are very selective, then you only trade the setups with the biggest deviation.

 

 

The Entry Method

The entry method of the DTS Pro System is based on limit order entry. For my swing trading I use 3 limit orders at different price levels. And for my trading, I always use the ExpertAdvisor (DTS_Pro_EA) to execute the trades.

The ExpertAdvisor comprises two on-chart indicators, namely the DTS_Pro_Entry and DTS_Pro_Trend indicators. The ExpertAdvisor enters with the first partial order (first of three) when the price touches the blue line of the DTS_Pro_Entry indicator. In following chart the DTS_Pro_Trend indicator has been removed from the chart. Only the DTS_Pro_Entry indicator is visible on the price chart. Our first partial entries are labeled with the two arrows. At each of these points, the price touches the blue line of the DTS_Pro_Entry indicator:

 

If the price were to make a deeper retracement further away from the blue line, then a second or even a third partial position would have been
opened. The following chart shows the price level of the partial positions and the stop level for all the open trades.


The three thin red lines show the entry price levels for the short trades as per my configuration. The stop level of my configuration is shown with the thicker red line.

The same applies to the long trade. The three green lines show the entry price levels of the long trades. The thicker green line shows the stop level for all the long trade:

 

For these two trades, which are based on the swing trading style (smaller targets), only the first partial position would have been opened; and the stops would have been placed at the thick horizontal lines.

I will use the following screenshots to explain what happens if the price makes a deeper retracement. We will use the short trade example.

To trigger the second partial position during the short trade, the price need to retrace to the price level of the second partial position. The winning trade would then have been a lot bigger than with only one partial position:

 

To trigger the third partial position during the short trade, the price would need to retrace to the price level of the third partial position. The trade would then be fully loaded. Winning trades with fully loaded position sizes can get quite big:

 

A losing trade would happen if the price retraces to the stop loss price level of my configuration. Approximately 30% of my trades hit the stop loss price level. The following chart shows the development of the price action that creates a losing trade:

 

 

When to cancel a setup?

I prefer to enter as soon as possible into a new trend because the biggest momentum is at the turning points. If the trend matures before an entry signal occurs, then the probability of success and the profit potential of the trade diminishes. The two outer lines of the DTS_Pro_Trend indicator often act as dynamic support/resistance. If the areas of these two lines are reached before the entry signal is created, I will then cancel the setups. However, I have exceptions for this rule. If the setup of the bigger picture, which I shall describe later, promises a very big move/new trend, then I will not cancel the setup.


In our example I would have cancelled the short setup if price has reached the red rectangle region before an entry signal has occurred. Likewise, the long setup would have been cancelled if price has reached the green rectangle before an entry signal has occurred:

 

In other words: I only allow trade entries if the price does not move farther into the direction of the new trend than the rectangles of following screenshot. If I see moves going farther, then I disable the ExpertAdvisor for this setup.

 

 

Trading with the ExpertAdvisor

As I already mentioned above, no single trader can watch the markets all the time. Organizations such as proprietary trading firms with staff working in shifts can place their trades manually around the clock. But we as lone retail traders simply cannot do that in any practical manner if we want to have a life!

The entry method of the DTS Pro System is of limit order type. As soon as the price retraces to the blue line (the moving average of the DTS_Pro_Entry indicator), our entry signal is created. Since the retracement is often only a fast stophunt move created by the smart money, the price sometimes only remains within the entry zone for a few minutes before it shoots into the profit zone. With manual trading, we would often miss the window of opportunity (the few minutes) to enter when the price touches the blue line. This would then result in late entries at worse prices. Therefore, a good option is to let a trading robot (ExpertAdvisor) do the entry execution.

To understand how the ExpertAdvisor (DTS_Pro_EA) can be configured, we have to take a closer look at the lines of the DTS_Pro_Entry indicator. The DTS_Pro_Entry indicator draws 5 lines on the chart. The main line is the blue line in the middle, which is a moving average of the price. The 4 other lines (2 thin black lines and 2 thicker black lines) have a constant distance from the middle blue line. Therefore, the lines of this indicator are forming a band on the chart. This band helps us see if the price is in an "overbought" or "oversold" state; and the lines also serve as an orientation for entry and exit regions.

The area between the two inner thin black lines is the entry zone where trades are started. With my configuration a trade is started if the price touches the blue line.

The two thicker outer black lines are used as an orientation for exit price levels. The distance of these thicker black lines from the middle blue line is always 4 times the value of indicator ATR (AverageTrueRange). Following chart shows what I mean by a distance of 4 ATR:

 

My entry style is 3 limit orders as I mentioned above. With my configuration, the ExpertAdvisor makes the first entry at 0 ATR distance from the blue line (the moment when the price touches the blue line). The second partial entry is done if the price retraces 2 ATR behind the blue line. The third partial entry is done if the price retraces 4 ATR behind the blue line. In my configuration, the stop for all partial positions is placed at the distance 5.5 ATR. Following chart shows the distances:

 

 

The target distance of my configuration is 6 ATR. This means that the ExpertAdvisor always places the target for all partial positions 6 ATR away from the entry price of the last partial entry executed. The target price therefore comes closer to the entry price of the first partial position if the second and the third partial positions are opened.

The arrows in the following 3 screenshots show the target distance of 6 ATR. If only the first partial position is opened, then the target for this position is at a price level outside the thicker black line, this is because the thicker black line by default is always 4 ATR from the first entry level, which is the thin blue moving average line.

 

If the second partial position is opened, as shown following screenshot, then the target for both positions is now 2 ATR closer to the entry price of the first position. The target price is now 4 ATR away from the price level of the first entry.

 

 

If the price retraces further and triggers the third partial entry, then the target price comes another 2 ATR closer to the entry price of the first position. The target price is now only 2 ATR away from the entry price level of the first entry.

 

 

This is the configuration for my trade based on my swing trading style. This configuration gives me a risk reward of approximately 1.0, which is OK because of the high winning percentage of the trades.

 

 

Configuring the ExpertAdvisor

One special characteristic of the DTS Pro System is that the ExpertAdvisor DTS_Pro_EA gets instructions for entering and exiting positions from the DTS_Pro_Entry indicator. Therefore, if you want to trade with the ExpertAdvisor, you must then have both on the chart.

Warning: Within the same MT4 instance it is not allowed to have the ExpertAdvisor on more than 1 chart of the same trading instrument. You can have multiple, say two EURUSD, charts opened within the same MT4 instance, but the ExpertAdvisor must only be attached on maximum one of the EURUSD charts. Of course you can have the ExpertAdvisor on multiple charts within the same MT4 instance, but it must always be on different instruments.

The following screenshot shows the configuration parameters of the DTS_Pro_Entry indicator. With these parameters you can define your personal style for entries and exits. The settings you see (except the position sizes) are the settings which I use for my swing trading.

 

 

The parameter "maxPositionAmount" defines the maximum number of partly positions that can be entered by the DTS_Pro_EA. You can define up to 10 partial positions.

The position size of each partial position can be configured in the parameters "size1, size2, …". For my configuration with 3 partial positions, I just need to edit size1, size2 and size3.

The values of the 4 parameters below "----Trading_Style----" have ATR (Average True Range) as unit.

The DTS_Pro_Entry indicator calculates the distances between the partial positions based on the values of the parameters maxPositionAmount, firstPositionDistance and lastPositionDistance. For my configuration, these values are:

maxPositionAmount = 3
firstPositionDistance = 0.0
lastPositionDistance = 6.0

Because the value of the parameter firstPositionDistance is 0.0 ATR, the DTS_Pro_EA will do the first partial entry at the moment when the price touches the blue moving average of the DTS_Pro_Entry indicator. This entry price is indicated by the black arrow and 0 ATR in the following screenshot.

The second partial entry will be done at a distance of 2 ATR above the first entry. The third partial entry will be done at 4 ATR. The distances of the partial entries are calculated as follows:

Distance between partial positions = (lastPositionDistance - firstPositionDistance) / maxPositionAmount

With my configuration the values are:

Distance between partial positions = (6.0 - 0.0) / 3 = 2.0 ATR

 

 

My configuration can be a good starting point for you because of the relative high winning percentage. But, of course, you can choose settings that suit your own preferences.

 



Entries with the ExpertAdvisor

The ExpertAdvisor can be activated with a trend line with a specific name. For short trade setups, the name of the line must be ms, and for long trade setup, the name must be ml.


The following screenshot shows the activation of the ExpertAdvisor for a short trade. You draw a trend line above the actual price and give it the name ms. The left end of the line should lie in the past and the right end of the line must lie in the future. Between the endpoints of the line (within this timespan), the ExpertAdvisor will watch the market for entry signals. If no entry is executed by the time of the right end of the line is reached, the ms line is then automatically deleted. The ExpertAdvisor will no longer look out for entries.

 

After you have named the line ms, the ExpertAdvisor automatically draws 2 vertical lines and the small horizontal lines. The small red horizontal lines represent the entry price levels of the additional partial positions.

 

 

Once the entry of the first partial position is triggered, the ms line is automatically deleted. The small red horizontal lines are replaced with black horizontal lines. The red line at the bottom of the following screenshot shows the price target (6 ATR) at which the ExpertAdvisor exits all open positions.

 

In this example only the first partial position was triggered. The trade reaches the profit target. All lines on the chart are deleted. The trade is done!

 

For a long trade you draw a trend line with name ml below the actual price. The behavior of the ExpertAdvisor is the same as in the short trade example above.

 

 

The most important part of the system!

Detection of the best trading setups = Big picture analysis

 

In the first post I mentioned the 3 main components of the system. I’d like to quote them here again.

The 3 main components of the DTS Pro trade setups are:
1. Price action on the H4/D1 time frame
2. Confirmation of the new trend
3. Price action and volume on the H1-Chart for the entry timing


All the explanations in the previous posts have only been about components 2 and 3 of the DTS Pro System. Until now we haven’t covered the most important part: Price action on the H4/D1 time frame

You could probably trade successfully if you only use the rules of components 2 and 3. Especially if you only take the setups where the black line of the DTS_Pro_Divergence indicator deviates extremely far from its moving average (strong trend ahead). However, if you do proper analysis of the big picture (D1/H4), you will more likely to have:

1. Trades with a higher winning percentage
2. Trades with a bigger profit potential
3. More confidence and less stress

 

 

 

Big picture setup: Major Support/Resistance Stophunt Reversal

 

 

Major Support/Resistance Stophunt Reversals have very big profit potential. They are some of the best setups you can trade. Therefore the filters "Strong Divergence" and "Outer band of the trend indicator must not be reached" are less important.


The following screenshot shows 2 rejections from major resistances on the D1 timeframe. The price developed into the region near the previous major resistance. Then a fast move above the previous resistance price level occurred (stophunt), which was immediately rejected to lower prices. The smart money took out the protective buy stops of many big players like pension funds, investment funds etc., which operate on longer term timeframes. Smart money sold into these buy orders (filled their short position), then drove the price to lower regions (profit release phase of the smart money).

As and when we notice a trading opportunity in the bigger picture (component 1), we want to jump on the downward move as soon as possible according to the rules of components 2 and 3 of the DTS Pro System.

 

The first setup in September 2012 took out the highs of April 2012:

 

On the H1 timeframe we see the price entering the downward trend on September 26. The divergence indicator also supports this downward move. We then configure the ExpertAdvisor for a short trade. The entry is triggered on September 27. All 3 partial positions get filled. The stop (my distance 5.5 ATR) is missed by only some pips before the price turns downward:

 

 

The profit target of 6 ATR would have given a winning trade of 1.1 R. The profit target of 8 ATR would have given a winning trade of 1.7 R:

 

 

From the development of the downward trend (see the following huge upward swings) you can understand why I mainly trade the swing trading style with lower profit target. I want to protect my nerves. I don't want to see a trade negative again after it has been in huge profit. Trend trading (riding the waves of the trend) is not the best option for me. What I often do is setting the profit target a little bit farther away if I see that the move is still strong when the price reaches the region of my standard profit target of 6 ATR. Then I extend the profit target to 8 ATR.

We are trading against the sharpest minds in the world who in addition have a lot more information than we have. Therefore, I want to enter and exit within the small time window with the best opportunity (at the reversal of the trend / beginning of the new trend).

Also if you use trend line in your decision making process, then exiting short trades at the lower end of the trend channel makes sense. In the following screenshot you see that first trend channel of the downward trend was defined by the lows that are connected by the solid red line. The dotted extension of this line harmonizes with the 8 ATR profit target.

Also if you are a trend trader, it’d also make sense to exit a portion of your total position at these trend lines and then reenter at better prices. This procedure is called "Trading around the position", which can make trend trading even more profitable.

 

One last side note on this trade: As I said, we are trading against the sharpest minds with the best information. The retracement of the price that triggered our 3 partial positions and nearly triggered our stops was forced by the smart money to get the stops at the price level of the previous swing high. The horizontal line in following screenshot shows this price level. The high amount of volume reveals that the smart money invested a lot of money to get to this price level. Smart money had to absorb all incoming short orders from the herd (which was obviously a huge amount) to drive the price upward. But smart money would do that if it would bring a benefit. The amount of protective stop orders that the smart money could collect at this price level must have been worth a lot more than the costs of driving the price upwards.

 

The second setup took out the highs of the first setup:

 

 

 

On the H1 we carry out the same procedure as with all of our trades. We wait for the new trend, then configure the ExpertAdvisor, and based on the swing trading style we exit before the smart money can hunt our stops with a second re-accumulation move. Because this is a major reversal setup, the odds of a strong move/new trend are so high that I wouldn't have cancelled the trade just because the price has reached the outer line of the DTS_Pro_Trend indicator. The higher odds of the big picture at least compensate the reduced odds from the rule "if price touches the outer line before the entry signal". Successful trading is based on probabilities. No trade is 100% sure.

 

The following screenshot shows a long trade example which occurred after a stophunt reversal from a major support zone. I will only show the D1 timeframe because the procedure on H1 is always the same. On H1 we wait until the price goes above the thin inner green line of DTS_Pro_Trend Indicator, then you can configure the ExpertAdvisor for automatic entries.

 

 

Big picture setup: Double Tops / Double Bottoms


Good trading opportunities are also presented by Double Tops and Double Bottoms that are visible on the D1 timeframe. They can occur:

1. in ranging markets at minor support/resistance price levels
2. in trending markets as counter trend setups
3. in trending markets in direction of the trend

Following chart shows a double bottom as a stophunt reversal from a minor support level. The entry/exit procedure is done on H1 as always:

 

 

The following chart shows a double top as a stophunt reversal from a minor resistance level. A second double top occurred at extremely overbought prices. The entry/exit procedure is done on H1 as always:

 

The following chart shows multiple double tops within an upward trend. Because these Setups are counter trend setups the profit targets are limited. A strong value of the divergence indicator is mandatory for these setups. As you can see, I didn't mark every double top. I prefer double tops/bottoms where the right leg begins higher/deeper than the left leg of the double top/bottom. The entry/exit procedure is done on H1 as always:

 

Smart money needs to re-accumulate its long position during an uptrend. Smart money acts as a market maker. During a strong upward trend, every member of the herd is buying. A market maker makes a market. If everybody is buying then the market maker is net selling and therefore accumulates a short position in an uptrend. The market maker must get rid of the losing short position. Therefore, we will often see stophunt reversals as labeled in following screenshot. With these stophunts the market maker gives its short position back to the herd (they buy into the protective sell stops of the herd) and re-accumulates its own long position. Only after the market maker has accumulated enough long positions, then and only then, the price is allowed to rise. We jump on board on the profit release phase of the market makers in direction of the trend AFTER the stophunt reversal. The entry/exit procedure is done on H1 as always. These trades can be traded with the trend trading style because of the big profit potential:

 

 

 
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