CHAPTER 5. TRADING RULES

Finally you are now on the top of this material. PustakaForex.com Congratulation anyway .In this chapter 5, We are going to discuss about how to set the entry. We will involve Support and resistance, Pinbar and Engulfing, and Confirmation/validation. Well, below are what we are going to do in the trading rules;

1. Draw Strong Support and Resistance

2. Find Pinbar or Engulfing near the support resistance

3. Validating the Pinbar

4. Execution.

No more theory, Lets practice!!!!

Example 1.

In this time I would like to give you an example, how I trade GBPUSD (Step by step Explanation)

Step 1. Drawing strong Support and Resistance

Note: In determining Strong SnR, I always prioritize to use Daily TF and above. But in this case, I use Daily TF. The blue lines are considered as strong Resistance, while the red lines are considered as Strong Support. 

After completing drawing SnR lines in Daily TF then I move down to the lower TF (H4 time frame) to see the candle pattern happen around the SnR.

We open a position when we see "Valid" Candle Formation in the SnR area. From the picture above, we can see that there are some "Valid" candle pattern and 1 "Invalid" candle Pattern (Have a look at the box sign). So let's just ignore the invalid and take only the Valid ones. 

OPEN POSITION RULES

Let's back to the picture above, from the left we have price in Support area. and there is a valid pinbar. So we can take Buy.

Case 1. Pinbar Setup (Buy Position) in Support Area

Case 2. Engulfing Setup (Sell Position) in Resistance Area

Case 3. Pinbar Setup (Buy Position) in Support Area

How to put Stoploss and Take Profit?

1. For setting an SL it is very simple. Just put below/above the candle pattern. You keep in mind that in placing a Stop Loss you must give several pips (Space) below/above the candle pattern. It is intended to anticipate Spread.

2. For determining the Take Profit (TP) it is very simple too. Just Make sure that your TP "AT LEAST" 2X bigger than your SL.

Note: There is no "Perfect" Trading system. What we should know and find is a system which has high winning probability. 

That's all about trading rules. I hope my explanation is clear and easy to understand. If you have a question, I am always there in Facebook Group.

Happy Profit

Cheers,

Kenny FX

CHAPTER 3. PINBAR AND ENGULFING CANDLESTICKS

Imagine you have already drawn support and resistance. Sistem Forex Terbaik What will you do then? You might still remember about what I have said earlier that SnR means reversal. Now my questions are:

1. Will you take an entry right after you find price touch the SnR? 

2. Will you take short (SELL) directly if you find price touch the resistance line?

3. Will you take long (BUY) directly if you find price touch the support line?

4. What if the price doesn’t reverse on that SnR level? Let’s say it breaks it out instead?

Let me explain you a bit. No one can guarantee that the price will reverse when it touches SnR level. Then, Why I said SnR means reversal? Keep reading! :)

We use SnR as Reversal. But “WE MUST HAVE CONFIRMATION” to make sure the price will truly reverse or not. How to confirm it then? Yes we used candle patterns named “PINBAR” and “ENGULFING” candlesticks. 

Note: I Probably stated the definition of Pinbar and Engulfing differently with the the common people. Definition is not our point, but profit is :)

A. PINBAR

Pinbar is a candle stick which has tail longer than the body. The body of the candle shouldn’t exceed 50% length. 

Below are the examples of Pinbar.

Note: We use Pinbar as a confirmation before taking an entry. And we use it as reversal.

B. ENGULFING 

Engulfing candlestick is a candle set up formed by 2 candles, Where the next candle close exceeds the previous one.

Below are the examples of Engulfing candlestick.

Note: We use Engulfing as a confirmation before taking an entry. And we use it as reversal.

C. ENGULFING PINBAR

Engulfing pinbar is a combination of Pinbar and Engulfing. And it is considered as great candle pattern. It is “stronger” than pinbar or engulfing.

Below are the examples of Engulfing Pinbar Candlestick.

In the end, What you need to do is to find those patterns (Pinbar, Engulfing, or Engulfing pinbar) that APPEAR in the Support and resistance area. If you have done it, there is one more step you should complete. Keep going!!! :)

Note: If you have a question related Pinbar and Engulfing candlesticks, please leave me a message through Facebook Group.

CHAPTER 2. SUPPORT AND RESISTANCE

Support Resistance (SnR) is used to determined the point/level of the entry. Strategi trading terbaik As I always said that SnR is like a station, where the bus or train usually stops for a moment before continuing the trip. The same thing happens in forex trading, SnR is the station of the price. 

Why should we consider SnR?

Because we know that SnR is an area where the price starts its moves. In simple words, we can minimize the risk (SL) by opening a position near the SnR. Besides, SnR will help us determine where the Stop loss (SL) should be. So I say that it is very important. 

May be there are some rules about SnR out there. In order to make the same perception, I tell you that we use SnR as REVERSAL. Now, keep in your mind, when you find SnR you must think about REVERSAL. Because we are gonna counter the price direction. For example, when the price is going up, and there is a resistance near the current price, then we must be ready for taking short (SELL). We don’t use SnR as break out or continuation, but REVERSAL only. In conclusion, in KEN FX TRADING SYSTEM, Support and resistance (SnR) means REVERSAL.

Here are the characteristic of good support and resistance:

1. Strongest and the best Support Resistance comes from High Timeframe. ie: Monthly, Weekly, Daily, and H4.

2. Strongest and the best support resistance are areas where there are many price bounces on that area.

Note: Please remember that support and Resistance is just “an area” not exact level/point.

But you don’t need to be paranoid about SnR. It is not that complicated. Let’s make it easy. As long as there is high/low in the past, it can be used as SnR. Yes it is that simple. Let  you take a look at this example;

It is very simple right? And what we need to do is wait for the next price near the support and resistance. We don’t need to use “too far” back history for drawing SnR.  Find only SnR who are near the current price. Well take a look at the example below;

Then, Where should we draw Support and Resistance line?

Well, buddy, Just use your imagination to put your SnR line. Put your Resistance ABOVE the recent price and put your support BELOW the current price. And below is the example how I draw SnR for EURUSD chart above.

Note: The current price must “between” the support and resistance. Then we wait for the price come close to either support or resistance.

When the price firstly touch the resistance, then we must be ready for the SELL setup. On the contrary, where the price firstly touch the support, the we must be ready for the BUY setup.

Well, now you have understood what support and resistance is. And you are now able to draw support resistance. Congratulation anyway.

Let’s go to the next chapter!!!!

Note: If you have a question related Support and resistance, please leave me a message through Facebook Group.

CHAPTER 1. MONEY MANAGEMENT

Money management (MM) gives 50% contribution to be success in forex trading. Teknik Forex Terbaik .I will not explain you how to count margin, leverage, equity etc. I will give you the simple calculation you can apply. 

Here are the Money Management summary you should consider before start trading:

1. Never use small balance

The smaller your balance, the higher the risk will be. In the other hand, the bigger your balance, the lower your risk will be. It means, to make your trading safer, you must provide enough balance before trading. So, how much is the ideal balance for trading? At least $100. By deposit 100 USD, you can apply KEN FX TRADING SYSTEM well and safety. In conclusion, To keep your balance away from “Margin Call” NEVER trade with balance under 100 USD. 

NOTE: The more amount will be better.

2. Choose Big Leverage (Optional)

IF it is possible, choose as big leverage as possible. It will strengthen your margin. Personally I search for a broker which provide at least 500 leverage. It would be much better if the broker give you options to have 1000 or bigger leverage. So, what if the broker I use didn’t provide big leverage? IT DOESN’T MATTER AT ALL. It is not compulsory. You still can trade with any leverage you have. Do not worry about that.

Why we should choose big leverage? The reason is that we can have strong margin. Detail reasons about it will be explained in the last chapter.

3. Lot Management

It is the main part of money management. Because there are many traders do not know well about the use of lot management. Have you ever experience Stop out level? And your entry was cut automatically?. IF yes, you might apply “bad” lot management. Lot which is you use will affect the strong of your margin. You no need to learn about calculating lot, margin, etc. It is very time consuming and it only bothers you. Good news for you because I will give you the reference to apply proper lot management you can follow without counting and doing some boring things.

Note: Using lot with WEAK tenacity is NOT recommended. And you are still allowed to use the MEDIUM.

Congratulation, you now understand what is the best lot to use.

That’s all about money management. There is no successful traders without applying good money management.

TASK

Try to calculate your own balance and find the proper lot to use.

*If you have a question about money management you can ask through Facebook Group.

KENFX TRADING CONCEPT

DISCLAIMER

Please be aware of the loss, risk, personal or otherwise consequences of the use and application of this book’s content. Teknik trading forex terbaik The author are not responsible for any actions that you undertake and will not be held accountable for any loss or injuries.

All information on this book is for educational purposes only and is not intended to provide financial advice. Any statements about profits or income, expressed or implied, do 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.

COPYRIGHT

This article cannot be re-written, re-published, stored or linked at any file sharing sites or Forums or used for any other books without proper referencing without permission. The use of the book and is limited to your personal use. Spreading out the copies without paying for them is illegal and protected by international copyright law.

Copyright © 2015 

INTRODUCTION

Welcome and thank you for being my partner, KEN FX. First of all, I would like to say I’m really sorry if my English is bad. Truthfully I am telling you it because English is my second language. Hopefully it is understandable :)

Through this lesson you will learn KEN FX TRADING SYSTEM, The most accurate and profitable trading system which is I always apply in my trading. Previously Let me to say Congratulation to you, because you are one of the persons who will know my biggest secret in trading. 

What is KEN FX TRADING SYSTEM?

KENFX TRADING SYSTEM is a trading system which belongs to Price action trading. In the application, you will find this system different with any other price action method. In simple words, you WILL NOT find such this trading system out there around the world.

Why should we use KEN FX TRADING SYSTEM?

I am not going to say about theory, but I’m gonna say about the FACT instead. It is not only a saying, I have proven this strategy for years and This brought me into Freedom of trading. It means I have gained consistent profit. I got profit at least 100% a month of my capital, I even ever got up to 500% profit. Does KEN FX TRADING SYSTEM Belong to “Holy grail” system? Absolutely NO. Truthfully, there is no such Holy Grail trading system. We do not focus on single trading profit, but we focus on the Accumulation profit. For instance, if you can trade with 30% loss and 70% win, then it can be said that your trading statistic is good. In conclusion, this trading system will help you to make accumulation profit. You have to ensure that all your trades must follow all the rules.

Below is the example of The accumulation profits made by KEN FX TRADING SYSTEM

Before discussing The rules of trading, there are some things you should learn. Below are the materials which will be presented in chapter by chapter. Make sure you have understood deeply about every single chapters. It is very important and it defines the result of your trading later on. One chapter has correlation with other chapters, and KEN FX TRADING SYSTEM combine all those chapters to be one together. Remember, System is a combination from many components/parts. By skipping one single component/part, the system will not work well. The parts here will be represented in the form of chapter. 

CHAPTER 1. MONEY MANAGEMENT 

CHAPTER 2. SUPPORT AND RESISTANCE 

CHAPTER 3. PINBAR AND ENGULFING CANDLE PATTERN 

CHAPTER 4. VALIDATION/CONFIRMATION 

CHAPTER 5. TRADING RULES 

There are 5 chapters you should learn. Make sure you start from the first one and DO NOT move to the next chapter before you understand it deeply.