The Equilibrium, a key to success!

You only learn about pain or insight


Hello dear traders,


Trading is a business, you win or you lose. The fundamental question is, how do you make it that the profits are higher than the losses? There is no unit type and no recipe for success.

To be successful in the trading business, I have to know myself 100%. Now you will laugh and think that you know yourself best, because after all, you experience yourself every day. Unfortunately, we are mistaken in this assumption. How often are we alerted by others to our bad habits that we no longer notice.

How should we correct mistakes in the trading business that we may not even notice? Solution: We simply copy the successful traders. But if two do the same, it is far from the same. Successful people differ from less successful people by the match of personality structure and behavior. Less successful people imitate other people and do things that are different from their nature and personality. So it's important to know your personal traits and act accordingly!
The solution is found in our brains. From the brain comes our pleasure, joy, pain and suffering. Through the brain we think, see and hear. Nature has equipped humans with 3 different brains.



The reptilian brain is the first and oldest brain. It is the brain of the past, memory of the experiences of billions of years of life, the seat of primal instincts, desires and life programs, self-preservation and preservation of the species.

The dinosaurs were herbivores and multiplied numerous. Suddenly there were carnivores, their own life was threatened. Time for another brain that could quickly decide between attack or flight.

The limbic brain is the second brain of the present, the lightning-fast response to the moment, the brain of emotions between fear and aggression, self-assertion to the environment.

Thought processes and the logical connection developed with the primates. Time for another brain, which was able to plan and arrange.
The neocortex brain is the third, youngest brain. It is the brain of disposing of the future, the possibility of conscious planning, precautionary action, the brain of abstractions and logical connections, of self-confidence and individuality.

Everyone has these 3 brains, let's take a closer look at these brains related to the trader's profession.



Reptilian brain

Orientation: past
Setup: Aligns too much with other traders
Entry: Has a good empathy, but dares too little
Trade Administration: In the calm lies the power
Exit: Get out too early, because he relies on safety.
Behavior on profit: Balanced
Behavior on loss: Balanced

The reptilian brain has a hard time trading because it works more isolated on its own, communication with other people is preferred. The empathy for very good chances is best developed, but one dares not enough. Problem is that one listens more to others than to oneself. Losses cause you to give up quickly. Profits are not invested because you put too much security. The chance is greater than the risk you are willing to take.



Limbic brain

Orientation: present
Setup: Orient only to itself
Entry: Courageous but also thoughtless fast entrances
Trade Management: Is always hectic
Exit: Too late because he hopes for a turnaround
Behavior on profit: exaggerated joy
Behavior on loss: Excessive frustration

The red brain is in a sense a danger but also a great opportunity. The most daring trades are entered, which leads to huge profits or huge losses. You do not hear others because you know better. Losses lead to revenge trades, you want your money back, cost whatever it takes. Here there is only black or white, all or nothing. Either millionaire or welfare recipient. The risk is higher than the chance.



neocortex brain

Orientation: future
Setup: Oriented only to numbers, data and facts.
Entry: considered and strategic entrances
Trade Management: Works on its defined rules
Exit: Increases too late or too early because it trades in numbers and facts.
Behavior on profit: hardly any reactions
Behavior in case of loss: hardly any reactions

The blue brain is always busy analyzing and correlating numbers, data and facts. Only if all parameters are correct will a trade be entered according to clearly defined rules. The suggestions of others are analyzed carefully and if they are convincing, they are incorporated into the own concept. Losses make you question your concept and spend a lot of time creating a new concept. Chance and risk are balanced here.


Every human being has these three brains, which, in spite of great differences in structure and function, must work together and communicate with one another.


The big question is how strongly the respective part of the brains reacts in certain situations.



This results in an infinite number of possibilities, which in detail reflect the personality of a person. Decisive for an improvement is always the insight that something would have to be improved. Role models are well suited for this. Not to copy the role models, but to learn from them first. Then I can train my own personality in the learned area.

So you could classify the traders in 3 categories:

1.The feeling trader

2.The dominance trader

3.The numbers data facts trader

All these categories are equally successful, the key is the right mix at the right time. However, the individual situation of the individual trader is also important. First of all, no pressure is allowed. If you have to live off the trading, the pressure is much higher than if you use money that you do not need.
Try to find out what kind of trader you are. Then start looking for role models. But beware, too often we look for like-minded people, they do not help us, because they think the same way as we do. In order to change something, you should look for someone as a role model who thinks completely differently than you do. If you decide on this direction later, you decide. It is important, first of all, to change your thinking. After that the action takes place.

Man learns only through pain or insight, when pain and insight come together the learning success is the greatest.

I wish you every success in doing the right thing.

Best regards

Hi Michael,
Thank you for your reports. If I see the US rate hike and the dollar fall sharply at the moment, it could mean that the price is pushed higher to sell as dearly as possible, and then set the course for the level you are forecasting to lower?

Hello Klaus,

That sounds logical, but it would be too easy, because it would be predictable for everyone. The big players in the market are often responsible for where the market is going. But there are permanent traders who get exact instructions every week on what to do. If you have 50 employees and give each other a different job, you can already cause confusion in the market. But even the big players work against each other, because everyone wants to have something off the big cake. The small traders are just the plaything, we are shooed back and forth and often stopped. Since we do not know the strategies of the big players in advance, the price development is difficult to define. If everyone acted on the same principle, the price would be much clearer and the candles much larger. For me, the Equilibrium strategy of supply and demand is still the only way to make some good trades a day. Still, the various big players do not make it easy for me. The background, everyone has different interests. An oil producer wants to sell his oil as expensive as possible, a consumer wants to buy oil as cheaply as possible. That means both different interests have to somehow agree. And that is precisely what is regulated by supply and demand.

best regards

Hi Michael,
thanks, yes supply and demand are the logical conclusions.
While I still use Pivot to find equilibria, I find that in many ways resistance and support also cause balance.
Klaus

Hello Klaus,

the Pivot Lines are used by many traders, the big players know that too and stop small traders at important pivot lines. Here is the combination of Equilibrium and Pivot quite an alternative. I neglect the pivot points, because the more information you have, the more insecure you become. For me, the pure price chart is crucial.

Greetings Michael

Clear overview


Hello dear traders,

Some of you wanted to know what you can do with a 55 inch Ultra HD screen. Since I worked with this new setup, the overview has improved enormously. The basic setup is my 6 time units, M1, M5, M15, M30, H1 and H4. There I work only with a momentum indicator and my own marked resistance and support lines.



If I zoom in on the single chart image over the entire screen, the advantage quickly becomes apparent. With the same candle size as on my 32-inch screens, the 55-inch screen at least doubles the overall view.

To see a clear equilibrium I can look at the 4H chart over 3 years. This greatly facilitates the work, because you do not always have to scroll back so far.
The setup in the morning is faster, I draw in the 6 time units my lines due to the Equilibrium and then turn all 6 views in the overall view. Now I can see at a glance the reaction of the course when it comes to a defined resistance.

You can more quickly identify the different trends within the overall trend and make faster, more efficient decisions. Of course, not all lines are drawn correctly, but you can see the errors faster than before.

To write E Mais or to stop by Youtube everything can happen on the main screen at the same time, without losing sight of the course.

I use two 32 inch screens for my trade and for a 20 sec chart. The remaining screens analyze the trend strength, currency strength, candle strength and give me up to date information about the situation in the market.

Whether the setup is financially worthwhile, I evaluate only at the end of the year, the fact is that it is a huge relief. You just have more time. And time is known to be the most valuable we have in the world. Money can be increased, the time you have unfortunately not.

I wish you much success today.

Best regards

Hello dear traders,



We are still in an equilibrium on a monthly basis. The lines of the blue arrows will determine the future course sustainable. For this, it is crucial that the respective line is first broken sustainable up or down. On 20.03. the bottom line was broken, however, the move was quickly turned away and pushed back strongly over the middle line. At the moment it looks like the upper line is starting up again. As soon as the upper or lower line is broken, the upper or lower line should act as a strong resistance in pullback. That would be an indication of a possible longer-term price course.

At the moment, the market seems still undecided, but that could change quickly. Pay attention to the movements of the market and identify your Equilibrium. This gives you indications of possible future price movements.

I wish you success
best regards

Dear Bionics ,
I had subscribed to you personally long back i believe it was in one of the posted that Hanover had mentioned you to be some kind of excellect programmer something like that . So when you started your thread i immediately subscribed to it . Now i have started to go through your thread and your amazing post which is quit close to how and what i trade ....whatever you are posting is quit upto the mark and logical ...i wish you best of luck for this thread and hope that this thread makes to the top of FF . I think that i am quit luckey that i am following and intelligent guy like you

Hello HumbleLearne,

Thank you very much for your sincere compliment and motivational words. One can defend oneself against criticism, one is powerless against praise. Nevertheless, I would like to write a few words.

For several years I have looked at FF many times and looked forward to the many great contributions. Especially I have noticed the people like Hannover, Nicholishen, SwingMan and many others who have unselfishly put their valuable knowledge at the disposal of all traders. I found that very impressive. Then I tried to get information about the Equilibrium and realized that this topic was hardly noticed.

At the beginning of January 2018, I published my first blog. I was lucky enough to meet Hannover, Nicholishen, SwingMan and some other valuable people here. This has confirmed my intention to pass on my knowledge to those who like to accept and implement it. I am very happy that you belong to these people too.

Maybe I belong to the traders who can live off the trade, but I'm just a human who makes many mistakes every day but also learns from them. FF is a very special help for me because it brings together the best traders in the world. I'm not one of those, but we all have a chance to get a little better and learn. And for that I am very grateful to all who contribute to this.

Thanks again and much success

best regards

Dear Bionics ,
What are these numbers ilke 16.2,45.5,28.0 which are shown on the wicks do they help you in getting the turning point or something . how do you exactly read the momumtum candles because as far as i can see and observe the turning point or reversal if observed generally comes after the few candles after the the momentum candles .
what ther indicator can we add to the above chart which will help us get closer to pin point the exact turning point ...can you please help or give feed back on my query please

Hello HumbleLearne,

In principle, the identification of the Equilibrium helps me to mark my lines and signals a turning point. The Momentum candles give me a better overview to better recognize the Equilibrium. The numbers above the candles is a project I am currently working on and experimenting with. Unfortunately, this is still in the development phase and does not give me the values yet as I expect it. That will probably take a while, until I have concrete results here. The pure price type is still the most efficient method to identify an equilibrium. However, you should keep an eye on all time units.

best regards

Hello dear traders,



The market is still undecided and moves within my 3 drawn lines. Although the upper and lower line was broken twice in the last 7 days, (points 1 and 2) but the course was then always strongly rejected. In the picture, it looks like the price goes up, but I do not think so. The downward trend has become stronger. Now that the price has dropped 180 pip, there should now be a pullback upwards. After that the price could break again the lower line. Still, I'm waiting for the top or bottom line to be accepted as resistance. If the top line is severely broken and then accepted as resistance in the pullback I see the 1.28 as the next target. If the bottom line is severely broken and then accepted as resistance in the pullback I see the 1.19 as the next target. Let's wait for today's Friday.

I wish you much success today.

best regards

Hello Erinieks,

The GBPUSD currently correlates strongly with the EURUSD. In the last 200 days in the 4H chart at 86%. This could open your foreshadowing. I keep my fingers crossed.

best regards

Hi Michael,

Now that ESMA has decided on far-reaching decisions in favor of the lobbyists and to the detriment of the small traders (like myself), I have to say goodbye to evil or evil slowly from trading. A trade with 1:25 or 1:30 is no longer profitable for me and I have to look elsewhere in this regard unfortunately because I do not have the required 50,000 to remain in the future in the business and to have a small additional income. I'll stick with it as long as I can, but I'm already looking for other options (Australia).
Happy Easter.
Klaus

ESMA "What does the moon care if a dog barks at him"





Hello dear traders, hello Klaus,

Now what is standard in the US for a long time is the traders in Europe: the 100% restriction of free choice. I had already published a detailed blog on 03.Feb: Post 218, so I will not go into the possible restrictions.

In the CFD market in Europe, there are approximately 1,500,000 accounts of 400,000 traders with a turnover of 24,000,000,000,000 € per year. In the foreign exchange market, the same amount will be converted worldwide in one week. Still, it's a lot of money for brokers offering CFD in Europe.

CFDs are a cash cow for brokers, so trading is pushed so hard. The biggest winner of the CFD is always the broker. Options and CFDs are quite different in one point.

CFDs have issuers.

Options have no issuer. As a result, options prices are not manipulated by issuers. CFDs have issuers and you trade them directly with the issuer. So the traders always act against the bank. This allows the courses of CFDs to be manipulated. This works indirectly, e.g. about unavailability of the CFD broker or extended spreads etc.

CFDs are traded through specialized CFD brokers. So you trade directly with or against the broker. Options are traded on transparent futures exchanges. Options are standard in the USA, CFDs are not allowed. US citizens, however, have the opportunity to trade futures and options directly through numerous US online brokers directly on the domestic and international futures markets. They can also trade equities, currencies and ETFS directly on margin long and short. They are thus directly trading the reference markets of the CFDs.

Although the obligation to make additional payments for CFD was banned in Germany, the risks for CFD are higher than for options or futures.

I welcome a regulated customer protection, but I find it questionable to limit the free decision of traders.

The leverage limit is particularly severe for smaller traders who have less money available. To trade 1 lot has been enough to give a margin of $ 250. In the future, the margin could rise to $ 3000. Then you can act the same as Future.

I find the new stop-out rules questionable. However, ESMA is seriously proposing that these margin close-out rules no longer be applied to the account balance, but to each individual position. The broker must close a position if the loss of the position is half of the margin. Each position would therefore have installed an automatic stop-loss in the future.

MetaQuotes, the provider of Metatrader 4 and Metatrader 5, has problems implementing these rules. That would be the end for many brokers and possibly also for traders working with the Metatrader. But I think that you can solve the problem in Metatrader with plugins.

Long-term hedging will no longer be possible, as will long-term oriented traders. For me as a scalper who has a maximum stop of 4-7 pip, that's less of a problem. And right now, the benefits of my trading strategy come from supply and demand. Without this strategy, I would not have been able to trade profitably in CFD.



Which solutions are there?

The brokers do not want to lose their cash cow and are already working on many solutions. They fear that many traders will move abroad. The brokers can give private traders the status of professional and thus circumvent the restrictions, or they can found a new company that is not bound by the restrictions of the ESMA. From there you can continue to act funny.

If you want to continue to trade CFD like in the past, you can also look for brokers on certain islands, but I advise against it. Australia is an interesting area where you should look for brokers.

If you forbid dealers in Germany to trade abroad, there are other options. My family is in Canada and Australia. I can certainly motivate my sister or brother to trade and support her a little from Germany.

So as long as there are regulations and restrictions in the world, there are people who are very creative. So no one has to worry that he will not be able to act tomorrow. It has always been like this: the creative people have always survived.

My proposition:

With a creative solution, you can continue trading for the next two years as before. But the clock is ticking. See that you build your fortune and then switch to the futures market. It is much cheaper and the price comes directly from the stock exchange. And you are no longer acting against your broker, but only against the market.

It is never eaten as hot as it is cooked. Therefore, there is no reason to worry. It's the same when the FED or the ECB is holding a meeting, the course starts to sway wildly and an hour later it's back where the whole theater started. The bottom line is, nothing happened. It will be the same here. Let's relax and concentrate on the next trading week.

But CFD will not be the future, that should be made clear. The creative minds will still have some time to raise capital and then make the right profits in a heavily regulated market. So deal with the futures in the future.

I hope I could bring some light into the dark room.

I kindly ask for your understanding because I am strongly involved in JAVA for the next 6 months.
Nevertheless, I will answer all questions as soon as possible.

I wish you a happy Easter and a good start into the new trading week.

best regards

Hi Michael,
Thank you for your answer, still beautiful easter and a good week
Klaus

Hello Klaus,

I wish you the same. You will see: Whenever something disappears, a new big opportunity comes. Everything will be fine.

best regards

Only who have the knowledge can turn something so complicated into something simple. Thank you for share your knowledge with us and happy Easter for you and your family.

Hello palpite,

Thank you for your nice statement, I was very happy. Our life is already complicated enough, everyone tried with many unnecessary foreign words to represent his knowledge credible. The more complicated the statements are, the smarter the author feels about this unnecessary presentation. He does not reach his goal. One goal should be that everyone also understands the statements.

"Simflify your life" also means to easily portray complex issues. Actually, there are only two ways to trade in the long term. Up or down, end of story. Thats is quite easy. And what do we do with it? A complicated doctoral thesis that nobody understands anymore. If we were to focus on the essentials, much would be easier.

You said it in a nutshell in your last post:

How much more I study about forex, i have much more certainy i dont know nothing yet.



This means that the more I know, the more I notice what I do not know yet. Basically, this is not a problem, because more knowledge only hurts if you no longer use the basic knowledge.

A beginner in the Forex area is overwhelmed with the information here at Forex Factory. First, because he himself does not know where the journey is going for him, and second, because he can not distinguish important information from unimportant information.

Unconscious incompetence

Everything starts here: In this status you are not aware that you do not have a certain competence. Therefore, it does not bother you at all. At some point you may realize that you are missing something. This takes you to the next level.

Conscious incompetence

Here you realize that you are currently not equipped with the best knowledge in this field. You become aware of your incompetence and it hurts. That puts you under pressure!

Conscious competence

In this phase, you develop your knowledge and skills. It feels good and slowly gives you more and more security. First successes are coming and you will continue step by step.

Unconscious competence

Really good you are in this phase: Here you internalize your knowledge and act intuitively. You no longer need to track your script, you know it by heart. You become safe and flexible in your actions. You get absolute confidence in your abilities and can let things "run wild".

These steps are repeated in different areas. That's good if we only do this in the areas that really help us. In the Forex area, however, you often can not distinguish between important and unimportant. This costs time, nerves and possibly a lot of money.

I want the serenity to accept things that I can not change, the courage to change things that I can change, and the wisdom to distinguish one from the other.

I wish you a nice day

best regards