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No-BS Trading System

1. The No-BS Forex Trading System uses hammer candlestick patterns that form at major support/resistance levels (pivot points) to generate entry signals. 2. Buy signals occur when price is above the EMA20 and EMA50, moves past and retraces back to a pivot point, and a hammer candle forms. Trades are entered on close of the hammer candle. 3. Exit signals involve taking partial profits when price moves the distance of the stop loss, and trailing the stop loss below the EMA20 for the remaining lots until all positions are closed.

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Ivan Sanader
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1K views6 pages

No-BS Trading System

1. The No-BS Forex Trading System uses hammer candlestick patterns that form at major support/resistance levels (pivot points) to generate entry signals. 2. Buy signals occur when price is above the EMA20 and EMA50, moves past and retraces back to a pivot point, and a hammer candle forms. Trades are entered on close of the hammer candle. 3. Exit signals involve taking partial profits when price moves the distance of the stop loss, and trailing the stop loss below the EMA20 for the remaining lots until all positions are closed.

Uploaded by

Ivan Sanader
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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No-BS Forex Trading System

No-BS Trading System


“Techniques The Professionals Don’t Want To Be Revealed”

DISCLAIMER

U.S. Government Required Disclaimer - Commodity Futures Trading Commission


Futures and Options trading has large potential rewards, but also large potential risks.
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.
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-OR-OVER 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.
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. Hypothetical trading does not involve financial risk, and no
hypothetical trading record can completely account for the impact of financial risk in
actual trading.
All information on this website or any e-book purchased from this website is for
educational purposes only and is not intended to provide financial advice. Any
statements about profits or income, expressed or implied, does not represent a
guarantee. Your actual trading may result in losses as no trading system is guaranteed.
You accept full responsibilities for your actions, trades, profit or loss, and agree to hold
No BS Forex System creators and any authorized distributors of this information harmless in
any and all ways. The use of this system constitutes acceptance of our user agreement.
No-BS Forex Trading System

There will be no fluff, no hype whatsoever in this system. It’s written


in a straightforward, no-nonsense manner. The main components of
No-BS System is a candlestick pattern called hammer and special
types of price support and resistance known as pivot levels.

1. Hammer

You may already read about hammer candlestick pattern elsewhere.


However, clear and concise methods of defining what a hammer is and
how to trade hammers are never mentioned.

Here is how we define a perfect hammer pattern:

a. The lower wick (the tail) is at least twice as large as the body and
the upper wick.
b. It’s located at major support.

Figure 1 – Typical Hammer

The above photo shows a good hammer. Notice the lower tail of the
candlestick is much bigger than the body and the upper wick.

Rules for defining an inverted hammer are just the opposite:

a. The upper wick is at least twice as large as the body and the lower
wick.
b. It’s located at major resistance
No-BS Forex Trading System

Below is an example of a perfect inverted hammer:

Figure 2 – Typical Inverted Hammer

2. Pivot Levels

Floor traders love pivot points. They act as magnet for price
movements. If you observe how price move during any trading
session, you’ll notice that price often stalls or stops at pivot points
before resuming its movement.

To calculate daily pivot points you need High, Low, and Close Price of
the previous day.

Here are the formula for calculating daily pivot points:

Central Pivot Point (P) = (High + Low + Close)/3


Resistance Level 1 (R1) = 2xP – Low
Resistance Level 2 (R2) = P + (R1 - S1)
Resistance Level 3 (R3) = High + 2x(P - Low)
Support Level 1 (S1) = 2xP - High
Support Level 2 (S2) = P - (R1 - S1)
Support Level 3 (S3) = Low – 2x(High - P)
No-BS Forex Trading System

To calculate weekly pivot points, apply the same formula, but using
High, Low, and Close Price of the previous week instead of the
previous day.

The indicators that automatically calculate daily and weekly pivot


points can be downloaded from here.

For information on how to install free MetaTrader4 software and how


to add indicators to your charts, please visit:
http://www.metaquotes.net

3. Put everything together and generate entry signals and


exit signals

This system is used on 15-minute and 4-hour timeframe. With


15minute timeframe, daily pivot points are employed. Weekly pivot
points are utilized when trading off 4-hour timeframe.

In this manual, I’ll present the entry signals for swing trading off 4hour
timeframe. We use the same techniques to generate entry signals on
15-minute timeframe but using daily pivots instead of weekly pivots.

Okay, let’s dive right in the meat of No-BS Trading System:

Buy Entry Signals: Three criteria must be fulfilled:

a. Price must be above 20-period Exponential Moving Average


(EMA20) and EMA20 must be above 50-period Exponential
Moving Average (EMA50).
b. Price moved past a pivot level (S1/S2/S3/P/R1/R2/R3) and
retraced back to that level.
c. A hammer formed.

When the hammer candlestick closed, we enter at market price with


three lots. Stop loss should be placed 10-20 pips below the Low of the
hammer depending on the volatility of the currency pairs we’re
trading.

Exit Signals:
No-BS Forex Trading System

a. When price moves in our favor the same distance as our stop
loss we take one lot out. For example, if our stop loss is 50 pips
away from entry price, when we have 50 pips in profit we exit
one lot.
b. For the remaining two lots, we trail our stop loss a few pips (510
pips) below EMA20. We let our profits run and let the market
decide when our positions are closed.

For sell (short) entry and exit signals, the rules are obviously the
opposite of the rules for buy (long) signals.

Here is an example of a long trade with clear entry and exit signals:

Figure 3 – Enter long at the close of the hammer

In this example, price was above EMA20 (green color) which was in
turn above EMA50 (yellow color). The first requirement was fulfilled.
Next, price moved beyond the pivot level and then retraced back
and tested that level. Finally, a hammer formed. When this hammer
candlestick closed, we entered at market price.
No-BS Forex Trading System

Figure 4 – Exit Our First Lot, Trail Stop Loss Just Below EMA20 (green color) for
The Remaning Two Lots

Figure 5 – Exit The Remaining Two Lots

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