EURUSD - Financial Instrument Analyzer

PREAMBLE

This thread is about a fully featured, automated financial market analysis application specially designed to provide traders with key market levels required to enter actionable trades.

It is for traders of all levels whether you are an expert trader with several years of experience in institutional or retail trading or simply a novice trader who has little or no experience trading the financial markets.

- Traders do not need any prior knowledge or experience of technical analysis or fundamental analysis.

- Traders do not need years of training or experience to identify and calculate Supply and Demand levels.

However, it is important for traders to have at least an introductory knowledge of Money Management and Risk Management. Two topics which will not be covered in this thread.


INTRODUCTION

Supply and Demand is what moves all financial markets.

The Financial Instrument Analyzer (FIA) has been designed to detect, capture and analyze even the slightest variations in market Supply and Demand. It is uniquely positioned for use across a broad variety of financial markets including, but not limited to, the Currency Market, the Commodities Market, the Bond Market, the Stock Indices Market and the Futures Market. Furthermore, it could be used on any financial instrument and on any timeframe.

The Financial Instrument Analyzer (FIA) provides traders all the information they need to trade unfilled market gaps between Supply and Demand including Market Direction (i.e. Long, Short, High and Low), Entry, Stop Loss and Take Profit levels. There is never a need for traders to calculate these levels.

The Financial Instrument Analyzer (FIA) is a fully featured cloud-based application. It is not an "Expert Advisor" (EA) and, therefore, it is not available on any version of the MetaTrader trading platform or any other broker platform.


Very Simple Set of Rules (VSSR)

To trade using the Financial Instrument Analyzer (FIA), traders need only know and apply the following VSSR:

(1) in a Short market, traders Sell the Highs or Enter Short in the Price Range between the Short Level and the Retracement Levels,

(2) in a Long market, traders Buy the Lows or Enter Long in the Price Range between the Long Level and the Retracement Levels,

(3) for Take Profits, we have 2 options:

(i) the optimal way to use the FIA is to close Long trades on market Highs and close Short trades on market Lows, or

(ii) set your Take Profit as per technical levels indicated on the next Higher Timeframe and exceptionally in some cases the Lower Timeframe. Note: for practical purposes, only option (ii) we will use in this thread.

(4) never Buy as the market approaches a Supply level (Supply levels are always Bearish, not Short) or a Short Level on a Higher Timeframe, and

(5) never Sell as the market approaches a Demand level (Demand levels are always Bullish, not Long) or a Long Level on a Higher Timeframe.

In my posts, I will be giving traders market entry strategies including Risk Reward Ratio (RRR), Entry Levels, Stop Loss(es) and Take Profit targets for each trade.

We are now ready to have a good time and move forward with this thread.

Oh yes, one last thing, please take the time to READ my posts ...

Cheers all,


Jack Elio Ollio

CAUTION: due to the delay required to post and comment the charts, information may no longer be timely or accurate at the time of posting. Trades should only be entered on your demo account!


Financial Instrument Analyzer

welcome back Jack, I hope this time I follow you from the beginning, .... Hopefully.

Hope you'll be with us this week!!!

I'll do my best despite it is the end of academic year, (God willing)

God bless you!

Sunday May 10, 2015

Chart #1 Post #6 above

There is no direction on any of the timeframes. Therefore, there are no trade setups at the moment.

All timeframes are in their respective Consolidation zone between their Short level and their Long level.

Chart #2 Post #6 above

On the 4 Hour, the market is Long above the Long level @1.11928 with a Retracement level @1.11956 (i.e. Short level).

We have a trade setup on the 4 Hour timeframe.

(1) Long Entry between the Retracement Level @1.11956 and the Long level @1.11928,

(2) Stop Loss we have 2 options (i) slightly below the Long level @1.11928 or (ii) slightly below the candlestick Low @1.11925. Option (ii) is preferred,

(3) Take profit level is at or near the Short level @1.12312 on the 8 Hour timeframe.

Assuming a market entry @1.11956, a Stop Loss @1.11925 and a Take Profit @1.12312, your RRR is approx. 11:1.

Chart #3 Post #6 above

On the 4 Hour timeframe, the market has reversed. Market direction is now Short.

We have a trade setup on the 4 Hour timeframe.

(1) Short Entry between the Retracement level @1.11928 and the Short Level @1.11956,

(2) Stop Loss we have 2 options (i) slightly above the Short level @1.11956 or (ii) slightly above candlestick High. Option (ii) is preferred,

(3) Take profit is at or near the Long level @1.11360 on the 8 Hour timeframe.

Assuming a Short entry @1.11928, a Stop Loss @1.2011 and a Take Profit @1.11360 your RRR is approx. 6:1.

Price came to your short entry but I don't know what the app look like when price came back to short level after many hours

Posts #8 and #9 above are an example of a market reversal.

It would have been possible for us to detect the reversal earlier by simply looking at lower timeframes (i.e. intraday timeframes only).

But even if you did take the trade, you can see that your losses were minimal in terms of pips at -31 assuming a Long entry as per Post #8 above.

Also, note the time on Chart #3 Post #6 above, it indicates 20:47. In other words, the application immediately detected the reversal but by the time I posted the comment, the Short market was already almost complete. The market was approximately @1.117xx.

Monday May 11, 2015

Unfortunately, I don't know either I was in sleeping!

Chart #1 Post #12 above

On the 8 Hour, the application indicates "Establish Low". This means that we are in Short market below the Short level @1.1887 and the Long level @1.11271 is the Next Target Low.

As long as the market remains below the Short level @1.11887, we expect the market to attempt to make a new Low.

If the market moves above the Short level, the market will have confirmed the Low. The application will indicate "Low" as opposed to "Establish Low".

This is in fact a special type of trade setup which we will choose not trade for now.

Note: for my following posts, I'll be posting intraday charts only (i.e. 2 Hour, 4 Hour, 8 Hour and Day timeframes)

Chart #2 Post #12 above is an intraday chart

On the 2 Hour, the market is Short below the Long level @1.11565 with Next Target High at the Short level @1.11596.

We have a trade setup on the 2 Hour which reads as follows:

(1) Short entry below the Long level @1.11565,

(2) Stop Loss is slightly above 1.11565,

(3) Take Profit is at or near the Demand level @1.11149 on the 4 Hour timeframe.

Assuming a Short Entry @1.11540 with a Stop Loss @1.11565 and Take Profit @1.11149 your RRR is approx. 15:1 (Reward 15 times Risk).

Short on H2 retracement level is 1.11565, target 1.11159 demand level on H4, stop loss is a problem for me, because H2 high is below retracement level on H2

Very good.

Your answer is in my Post #16 above.

Allready 9+ in profit, entry to the pip. 40 pips to the target. RIsk was 6 pips to get 40 pips. Almost 1 to 7 rrr.

What I will demonstrate this week is that trading with the FIA (Financial Instrument Analyzer) offers low risk, high reward trade setups.