Trading Guidelines

 

 

 

ATM Alerts

The ATM alerts usually goes off between:

  • 5 pm to 10 pm NY time for ASIAN Market Currency Strength and
  • 1 am to 11 am NY time for EURO Market Currency Strength

Before entering a Trade check:

  • Golden Rules (check TOOLS)
  • Euro/Asian Market Currency Strength (check the ATM Dashboard)
  • Support and Resistance Breakouts (check S&R Breakouts on the Dashboard)
  • Money Management (check TOOLS)
  • Best Time to Trade the Forex Market (check TOOLS)
  • Domino Effect (check TOOLS)
  • Calendar News at the Forex Factory page

Note: we recommend you to have all the PDF files printed so you can easily check before entering a trade.

If you don't understand some of the terms we use, please check our Forex Glossary of Terms in the TOOLS page.

ATM Alert Analysis:

The Alerts on your cell phone or email will look like this:

AUD   1    USD   2           EUR   -1     GBP   -7             NZD   1    CAD   -4           JPY   7     CHF   1

As a general rule, you should always trade the weak against the strong currency. On this example, the GBP is weak showing -7 and the JPY is strong showing 7. As you can see you have narrowed down the charts that needs to be analyzed from the 28 currency pairs to just 2 instantly.

Trend Analysis:

  1. Using a MTFA: Multiple time frame analysis is the inspection of trends, starting with the larger trend and time frames, and working backwards down to smaller time frames. Check the video (TREND ANALYSIS)
  2. To consider a trade the H4 chart has to point in the same direction as the ATM alerts. The best scenario is when H4 and D1 charts are in agreement trending in the same direction you are going to trade.
  3. When the moving average cross over (Green line / Red line) on any time frame is where the trends starts. The H4 chart is the minimum trend to consider an entry decision.

Support & Resistance Analysis:

  1. To consider a trade the currency pair you chose has to pass intra-day Support or Resistance. The S&R Breakouts have to show 5 out of 7 broke Support or Resistance
  2. You have to calculate the distance (In PIP's) from intra-day Support or Resistance to the H4 Support and Resistance. The reason we calculate this is to get a clear picture of the possible move in pips that can occur.

Note: We provide Support & Resistance indicators to our customers when they sign-up as VIP Members.

Formulas to calculate a possible movement to the next S or R

Uptrend Distance: From intra-day Resistance (Price you get from the ATM Dashboard) to H4 Resistance

Down Trend Distance: From intra-day Support (Price you get from the ATM Dashboard) to H4 Support

Example 1

GBPUSD is up trending on the D1 and H4 time frame charts.
Intra-day Resistance is 1.6020 and H4 Resistance is 1.6181.
Using the up Trend Distance formula from below we get

1.6181 - 1.6020 = 161 PIP's

That means if the ATM Alert has a signal sent to your phone displaying either the GBP = +7 or the USD = -7 , the GBPUSD pair is trading above 1.6020 (intra-day Resistance) and the moving average has a fresh cross to the upside on the H4 you would enter this trade. Let's say you enter in at 1.6050 because the market has already been moving fast and it took you a few minutes to wake up and get to your computer. You still have 131 PIP's of possible movement before the H4 resistance price of 1.6181.

Ok let's look at the same setup but with a different scenario:

Example 2

The ATM Alert has a signal sent to your phone displaying either the GBP = +7 or the USD = -7.

The GBPUSD pair is trading above 1.6020 (intra-day Resistance) and the moving average has a fresh cross to the upside on the H4. Let's say the GBPUSD is trading at 1.6150. You would not enter this trade. You only have 31 PIP's of possible movement before the H4 resistance price of 1.6181. Too risky not enough profit potential and we already missed the move better to wait and trade another day....
So as you can see knowing these Uptrend Distance & Downtrend Distance in PIP’s on all 28 pairs before you even get an ATM alert will help you make entering a trade a simple decision. Clarity is the key to trading the Forex markets.