Michael J.Huddleston Government Required Risk Disclaimer and Disclosure Statement CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OROVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN Trading performance displayed herein is hypothetical. Hypothetical performance results have many inherent limitations, some of which are described below. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. In fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program. One of the limitations of hypothetical performance trading results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk in actual trading. For example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all of which can adversely affect actual trading results. U.S. Government Required Disclaimer - Commodity Futures Trading Commission Futures and Options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don't trade with money you can't afford to lose. This is neither a solicitation nor an offer to Buy/Sell futures or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this web site. The past performance of any trading system or methodology is not necessarily indicative of future results. Trade at your own risk. The information provided here is of the nature of a general comment only and neither purports nor intends to be, specific trading advice. It has been prepared without regard to any particular person's investment objectives, financial situation and particular needs. Information should not be considered as an offer or enticement to buy, sell or trade. You should seek appropriate advice from your broker, or licensed investment advisor, before taking any action. Past performance does not guarantee future results. Simulated performance results contain inherent limitations. Unlike actual performance records the results may under or over compensate for such factors such as lack of liquidity. No representation is being made that any account will or is likely to achieve profits or losses to those shown. The risk of loss in trading can be substantial. You should therefore carefully consider whether such trading is suitable for you in light of your financial condition. If you purchase or sell Equities, Futures, Currencies or Options you may sustain a total loss of the initial margin funds and any additional funds that you deposit with your broker to establish or maintain your position. If the market moves against your position, you may be called upon by your broker to deposit a substantial amount of additional margin funds, on short notice in order to maintain your position. If you do not provide the required funds within the prescribed time, your position may be liquidated at a loss, and you may be liable for any resulting deficit in your account. Under certain market conditions, you may find it difficult or impossible to liquidate a position. This can occur, for example, when the market makes a "limit move." The placement of contingent orders by you, such as a "stop-loss" or "stop-limit" order, will not necessarily limit your losses to the intended amounts, since market conditions may make it impossible to execute such orders. By viewing any www.TheInnerCircleTrader.com text, audio, visual commentary, video or presentation, you acknowledge and accept that all trading decisions are your own sole responsibility, and the author, Michael J. Huddleston and anybody associated with www.TheInnerCircleTrader.com cannot be held responsible for any losses that are incurred as a result. What We Will Cover This Month 1) Long Term Perspective 2) Determining The Range 3) Focusing On Probable Reactions 4) Implementing Market Structure Shifts 5) Forecasting Potential Direction Begin With Monthly Charts The Long Term Insight Has Significant Impact On The Near Term This example is not in any way a hindsight – after the fact scenario. I called this move in advance and you can see this on my YouTube Channel here => http://youtu.be/1gqnoteIPgg We will be using this example in Price Action to teach this concept as it is anchored to a Live Analysis. Study this chart closely and see if you can spot some of the obvious points about this particular portion of Price Action? S&R • Clear Level • Both Roles Old H&L • An Old High • An Old Low Range High The Current Range Range Low Range High The Range need not be broken to make money. We can Trade “inside the Range” and profit! Range Low Range High Let’s note some crucial and otherwise obvious points about this area in Price Action. Range Low The 1.50 level is an obvious Support & Resistance level. The Fib overlaid on the “range” we determined shows an OTE [Optimal Trade Entry]. Let’s zoom in closer and study this portion in Price Action further and begin to break down the concepts as you would in your Demo Trading. The “Range” between the Low on this Monthly Swing Low and the High on the 3rd Candle completing the Swing Low Pattern is your Intermediate Term Dealing Range. We will move down to a Weekly Chart to further study this Price Action. Intermediate Term Dealing Range High Intermediate Term Dealing Range Low We as developing Professionals aim to control fear & greed and by that premise we refrain from “chasing” Price. Electing to rather wait for Price to retrace inside the “Dealing Range” and stalk a potential Buy Signal… We see Price did in fact retrace “inside” the Intermediate Dealing Range. We see a nested OTE pattern now unfolding and we can now move down to a Daily chart for closer analysis… Study this Daily chart and see if you see anything that stands out in our list of clues we stalk? See any S&R levels, Old Highs or Lows? We can note these lows and drill down into “Intraday – Lower Timeframes” to stalk an entry pattern on those timeframes where we employ OTE patterns for Trade entries… Old Lows in OTE zones and after retracing inside range. Let’s move down to an 60 minute chart to start really breaking down this Price Action using the same concepts we used on the Monthly – Weekly – Daily charts… Looking at the 60 minute chart we can see the 1.5025 level was finding Support as we anticipated based on the Longer Term Macro to the Micro perspective. The “yellow” & “inner white” rectangles depict the higher timeframe OTE zones. We will drop down to a 5 minute chart to hunt a setup to illustrate how developing the Directional Bias with this simplistic and uniform approach can aid you in your demo Trading and development as a Forex Trader. Let’s drill in to this level here… Do you see how after bouncing at the predetermined Support at 1.5025, Price gave further insights in the Bullflag formation? Let’s look closer at Price when it dropped into 1.5025! The addition of the Asian Range on the day the Cable [Gbp/Usd] traded down into the 1.5025 Support level illustrates how the “Smart Money” accumulates inside the Asian Range and more importantly and what makes my concepts unique. Buying under the Asian Range High. The Price is determined by the Fibo tool as illustrated and the Timing is driven by Session Openings and Closings. In this case let’s see when the OTE formed and found Support on our predetermined 1.5025 price level. The overlap of London Open & Asian Close was the Timing factor in this trade setup. By having first laid the ground work in Long Term Macro Perspective on the Monthly, Weekly, Daily, 60 minute and finally 5 minute basis… we can arrive at a Directional Bias. Stalking trades only in this direction is recommended while first developing as a Demo Trader. It will provide the building blocks needed to assist you in more advanced counter trend trades. Let’s take a look at the results this trade entry offered those savvy enough to see the signs and clues “Smart Money” provided the Traders in Cable… As you can see here… over 700 pips was the result. I’m sure you are still full of questions and I haven’t exhausted my treatise on the topic… we will build on these foundations. Again, I council you to view the YouTube video I posted before the market traded as detailed here. 700+ Pips Directional Bias Trading