Forex Trading, Candlestick and Pattern 2 (CI System).pdf

Contents



Chapter 1 - Pivots ------------------------------ 2

Chapter 2 - i Lines ------------------------------ 7

Chapter 3 - Indicators ----------------------------- 10

Chapter 4 - Money Management ------------------------------ 16

Chapter 5 - Contents of a Trading Plan --------------------------- 20

Chapter 6 - Trading Psychology ------------------------------ 21

Chapter 7 - CI Trading System ------------------------------ 22

Chapter 8 - Putting It All Together ------------------------------ 28

Conclusion ------------------------------ 33

Disclaimer ------------------------------ 33


1
Copyright © 2003 Forex Systems pany
All rights reserved worldwide
Chapter 1

Pivots

Pivot Points

Pivot points indicate reversals in the market

Pivot High Pivot Low







buy

sell






A pivot is a candle or bar which has one candle or bar on each side, higher or lower than the middle
candle or bar.
Some traders buy at a pivot low when the price moves 1 pip above the high of the middle candle or bar as
the 3 bar pivot is confirmed when price moves above the high of the middle bar. They sell at a pivot high
when price moves one pip below the low of the middle candle or bar.



Candlestick Version of Pivots






sell

buy




2
Copyright © 2003 Forex Systems pany
All rights reserved worldwide
Pivot Lines

Pivot lines are lines of support and resistance and are very useful in today‘s forex markets as they
increase your profitability. The lines let you anticipate today‘s high or low. You have a roadmap for
ing price action. If one of your entry setups is near a pivot line, you will have more confidence in
buying or selling.

The new day‘s pivot lines are calculated from the High (H), Low (L) and Close (C) prices of the previous
day (Just use the daily charts from your chart provider). Downl