A Step-by-Step Trading Method for Maximizing Reward/Risk in Trending Forex Markets
Do you wish to cut down on the amount of time and effort it takes to finding tradable opportunities?
Are you having trouble figuring out when Forex markets are moving with sufficient clarity?
Do you wish for a more efficient way of scanning for low-risk entry opportunities?
Are you looking for more objective exit strategies?
We've all heard the famous trading mantra - "The Trend is Your Friend". But it is often impractical for traders to be manually scanning a long list of currency pairs to find tradable candidates. Traders need a systematic tool they can use to quickly locate trending pairs.
Over the last two years, our senior mentor Frank Paul has vigorously tested and analyzed thousands of different scenarios (timeframes, analyses, and indicator combinations) to perfect a trading methodology which pairs the insight of Market Flow analysis with the convenience of a responsive multi-timeframe momentum indicator, yielding a trading system that is simple, effective and robust.
What Is FXM TrendTrader and How Can It Help You?
FXM TrendTrader is a comprehensive suite of online resources and real-time services designed to help you apply a unique trend-trading method to the daily Forex market action. The method involves three essential components:
Trend Following Indicator System: We apply a two-bar “slope” reading on the MACD Histogram across three specific timeframes – Daily, 4 hour, and 60 minute – to determine if momentum appears to be aligned in top-down fashion.
This helps to avoid the situation of seeing a strong trend reading on one timeframe, only to find a retracement or reversal getting underway on another, resulting in the kind of “signal conflict” difficulties that are worrisome for so many traders. If the three timeframes are in agreement on this one indicator, we have a potential trading bias and a clue to look more closely for a possible setup. We call this a “3M” reading because “3” represents the number of timeframes involved, and “M” represents “Momentum”. Our service automates the detection of these signals – saving you massive time and effort – by way of our proprietary Momentum Matrix™ real-time opportunity identification tool, as well as supplemental screening tools written for the MT4 and ProRealTime charting platforms.
Simple Discretionary Analysis: With a tradable trend established, we look closely among the 4 hour, 60 minute and 15 minute charts for clear evidence of Market Flow and Market Structure which corroborates the indicator reading, and confirms the bias. We define ‘Market Flow’ as a clear progression of major Swing Points left to right on any given timeframe which are indicative of a trending market. We define ‘Market Structure’ as the combination of Impulse Waves and Retracements, which together create continuation setups providing the context for actionable trend and trade entry signals. Both of these simple and easy-to-apply concepts are explained and illustrated in Module 4 of our online video course.
Low-level Execution Signals: With the indicator signals in place, corroborated by Market Flow analysis, we drill down to the pairing of the 5 minute and 1 minute charts, lining up a momentum reading on the higher of the two timeframes aligned with the “3M” reading, then looking for a low-level corrective dip or rally on the 1 minute chart, the resolution of which provides an entry signal with very tight stops of 20 pips (spread included). Once in the trade, we can use flexible approaches to close it, defaulting to an innovative scaling-out method which reflects all four major trading styles at once: equal parts Scalp, Day Trade, Swing Trade, and Position Trade. We do so as a reflection of our underlying philosophy of price action, which is that we can never be entirely sure how far price will move in our favor before turning. So we lock in profit iteratively as we go, leaving the last lot in the position free to “let profits run”, but eliminating risk long before the position has achieved that level of aggregate profitability.
Who Is FXM TrendTrader For?
FXM TrendTrader is for traders of intermediate to advanced levels of experience who:
Are proficient with all important elements of executing and managing a trade within an online dealer account;
Understand Technical Analysis basics; most especially the topics of Market Flow and Market Structure analysis.
Our online course teaches the latter concepts briefly and concisely, and because the ideas are relatively simple, any intermediate to advanced level trader should feel proficient with them after only a short duration of study. That said, we do not recommend this course and service to those who are completely new to Forex trading as it assumes a mastery of rudimentary concepts which are beyond the scope of our presentation to instill.
How Is FXM TrendTrader Different From Its Predecessor?
FXM TrendTrader represents a quantum improvement over its predecessor (Fibonacci Swing Trader) which was essentially a short-term market forecast service predicated on a large volume of written and video commentary, which was “static” in the sense of being updatable only once per day.
By contrast, FXM TrendTrader will for the most part relinquish the market forecasting role in favor of an exciting suite of resources designed to help you apply our trading method 24/6, including real-time market screening and trade setup signals, and an EA semi-automation tool for the MT4 platform, which can be turned ‘on’ or ‘off’ as market conditions warrant. These tools collectively will serve as your faithful guide and companion, saving you much time and effort in the limited time you have available each day to look for quality trade setups. Simply put, Forexmentor has never before made available a resource that not only teaches you how to trade but assists you in the application of the methodology with such compelling real-time tools.