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FOREXTRADINGMAJIC.COM

 

"1 ON 1 TRADER TRAINING COURSE"

               

 ( THE LAWS OF CHARTS AND MEN TRADER TRAINING COURSE )

  • COURSE INCLUDES... $430.00 IN FREE GIFTS...
  • FREE- 2 E-BOOKS, (THE LAWS OF CHARTS AND MEN & VOLUME-THE ARCHIMEDES PRINCIPLE.) $180.00 VALUE.
  • VIDEO ARCHIVE OF OVER 120 LCM TRAINING VIDEOS ( $250 VALUE )

                                         TRAINING METHOD

  • 1 LIVE TRADING ROOM. 1 VIDEO LESSON AND 1 EMAIL LESSON EACH WEEK FOR 4 WEEKS OR AS LONG AS IT TAKES...
  • EMAIL QUESTIONS AND ANSWERS BETWEEN LESSONS...

 

      $200.00  THEN - 4 BI-WEEKLY PAYMENTS OF $200.00 EACH FOR A TOTAL OF $1000.00

 

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ELEMENTS OF THE TRAINING COURSE

(AN INTRODUCTION)

 

THE 2 CONCEPTS

 

The Lcm method is broken down to 2 simple concepts.

A.      Identifying any known support or resistance level (draw lines )

B.      Apply the reaction cycle principle to

 

THE 4 TECHNIQUES

The trading of these 2 concepts is done through the use of 4 separate techniques.  The 4 techniques are BREAKINS, BREAKOUTS, REVERSAL BARS, and CONTINUATION BARS.  These 4 techniques can be used individually or in combinations with each other.  The easiest way to learn is to master one technique at a time.

The book, “The Laws of Charts and Men”.  Is about just one technique within the total concept of Lcm.

The second book, “ Volume, The Archimedes Principle,” Is about confirming any trading signal with volume spread analysis.

The difference between the books and the course is the depth and breadth of information.  There are also nuances that would take up far too much space to cover in a book.

Thus far I have been giving you specific techniques without tying them together and sometimes this results in confusion for you because you fall under the impression ( my fault ) that each separate technique is the actual trading system itself. 

THE 2 CATAGORIES OF TECHNIQUES

The 4 techniques are divided into two separate categories.  Swing support/resistance and Single bar support/resistance.

The 2 swing techniques are BREAKINS AND BREAKOUTS while the 2 single bar techniques are REVERSAL BARS AND CONTINUATION BARS. The first 2 techniques (break-ins/breakouts ) are related to swing support and resistance and the second 2 techniques (reversal bars/continuation bars )are related to single bar support/resistance.

SWING TECHNIQUES

You should start learning with break-ins  because, professionals and operators trade break-ins. Break-ins offer the earliest safe opportunity to enter with the trend and, since swings are composed of a series of bars, quite naturally swing support/resistance is going to be stronger than single bar support/resistance.   After you master break-ins you should then master breakouts because,  breakouts and Break-ins are just the opposite sides of the same coin.

 

SINGLE BAR TECHNIQUES

The single bar techniques are best applied to the levels of swing support/resistance levels.  When the market gets to a swing support/resistance levels you then apply the single bar technique to the location of the swing support/resistance level.

 

SWING STRUCTURE

 Support and resistance is the structure of the market house.  Think of the market as a house.  When you enter the door and the door closes behind you that is a break-in.  When the door closes, the closed door is now support behind your back.  If the door remains open and you fall back, there is nothing at your back but air.  This is why we want to wait for the breakout/break-in bar to close before we consider the signal to be valid.

You are running towards a house and kick in the back door and keep running.  That’s a break-in.  You keep running through the house and kick through the front door, and continue running outside again.  That’s a breakout.   You break in through the back door and you breakout through the front door.

Once you break outside the front door you are running free because, you are now outside, free of the constraints of the house.  When inside the house you are boxed in.

SINGLE BAR STRUCTURE

Single bar support/resistance operates exactly the same way but instead of a house, a single bar can be likened to a room within the house.  A house is composed/built of a series of rooms (single bars). A two story house is just a group of rooms (bars) on the top floor that sits on top of the rooms on the lower floor/s.  First, the rooms ( bars ) on the lower floor must each be constructed properly (with strength) or the upper floors cannot be built because they have no stable structure to stand upon.

SWING VS SINGLE BAR

We use swing sup/res to identify areas where we want to enter and exit our trades.  We use single bar sup/res to tell us if, and when we should enter at the swing support or resistance level the market is testing at that time.  Even though a market must first clear the hurdle of single bar sup/res before it can make it to swing sup/res, it is easier to learn the concepts in reverse.  Kind of like the cells of the body.  First you learn the body and then you are in better position to understand the workings of the cell.  The cells (single bars) are the cause while the body/house is the effect of the workings of the inners cells.  First you must understand the effects, ( swing support/resistance ) before you can understand the cause (single bars ).

CAUSE AND EFFECT

Example:  I place you inside an animal called an imaginatron.  You have never seen an imaginatron and don’t know how many legs or arms it has or if it even has any.  You have no idea of its method of locomotion or even, if it moves at all.  You know absolutely nothing.  Now, I place you inside the imaginatron and you learn everything about the inner workings of the cells of the imaginatron.  Even though you know everything about the cells you still don’t know their true purpose.  Why they do what they do.  You know all the causes and none of the effects of imaginatron locomotion.  You must be able to apply causes to effects.  So, if you knew what the imaginatron looked like, you could then categorize your study of the cell in relationship to specific parts pertaining to the locomotion of the imaginatron.  Thus, it is logical to work backwards from effect down to cause.

ADVANTAGES

The benefit is that you get to take your profits at swing sup/res while placing your stop just beyond the range of ( the smaller range ) single bar sup/res.  The spread between the high and low of a single bar is typically much smaller than the high a low of a swing, which, consists of a series of bars and not just a single bar.

So, there may be a 100 pip spread between swing support/resistance and only a 30 pip difference between single bar support/resistance.  Swing  sup/res is going to be one level of sup/res and single bar sup/res provides a second level.  It’s like this, if price is rising up and a single bar breaks up above a swing resistance level (door ), the door  has opened but, if you fall back, since the door is still open, you will fall back through the open door.  Now, if the single bar closed above the resistance level (the door) that means the door has close behind you and if you fall back to the door, you have the closed door at your back to support or stop your fall backwards.

Okay, now that you are in the house, you go into the next room (single bar ) and close that door behind you.  Now you have two doors behind you to support you if you fall back. When you have a reversal bar or a continuation bar you have entered a room within the house. 

Thus the spread between the larger range of a series of bars as opposed to the spread of just one single bar means that your reward is substantially larger than your risk.  That is because, your stop can be placed outside the door of the room (single bar sup/res) as opposed to placing your stop outside the door of the house (swing sup/res ).

Therefore, your target is based on reaching the back door of the house while your stop is based on falling back through a single room in the house.  If the door to the room swings open your next level of sup/res is the door to the house.  Now, if the door to the room and the house are at/near the same spot, that is like having the thickness of two doors at your back instead of one.  The stronger door to the house and the weaker door to the room. 

Even though you must know how to build a room (single bar ) before you can build a house swings, you must first understand the layout of the house before you can start the process of building rooms.

TECHNIQUE VS MASTERY

Any of the 4 techniques are profitable if either used individually or together.  When beginning it is easier to focus on mastering just one technique at a time.  Master one technique first before moving to the next.

The highest level of master will be attained when you master all 4 techniques and will be able to use all 4 techniques in combination.  But you do not have to attain the level of master before you are able to make consistent profits.  All you need to make consistent profits is to master one technique and trade it consistently.

The benefit of mastering all 4 techniques is that it relieves you of the biggest cause of trader patience and that is impatience.  We will force moves if we feel that we might miss the boat.  If the moves takes off without us we feel we have invested a lot of emotion and time into tracking the market and our emotion and out time is the most valuable thing that we own. 

It’s like if you were a hunter who had been tracking the footprints of a deer all day, he has painstakingly scouted and identified the most efficient location for him to ambush the deer.  The deer walks right into the setup on schedule.  You have the deer in your sights, while placing light pressure on the trigger, just a little bit closer…Then, just before you can say bang, the deer somehow sniffs danger and takes off before you can take the shot. DAMN!  NO WAY DO I WANT TO LET THAT DEER GET AWAY.  I HAVE INVESTED TO MUCH TIME, EFFORT AND PLANNING into this HUNT!

So, you get desperate and start chasing the deer, shooting wildly at it even when it is too far out of range and you know it. 

This approach compels  you to go ahead and take your profit early if you smell the first weakness to your position.  The prevents the second biggest reason for trader failure.  Letting trades that are in a profitable position, fall into negative territory, thereby, turning a winning trade into a loser.

Be water and flow…If you have a workable way of satisfying the need to eliminate this frustration so you can eliminate the emotion out of your trading.  The best way to increase your patience is to know the location of various sup/res levels so that you know the exact locations of the next trade opportunity.  The more techniques and sup/res clusters you can combine, the more opportunities you can recognize and know that you don’t have to chase that deer.

To summarize, the LCM trading method is compose of the two concepts of Support/Resistance and the Reaction Cycle.  We know that these two concepts are to be applied to 4 separate techniques of Break-ins, Breakouts, Reversal Bars, and Continuation Bars.

We’ve seen how the 4 techniques are divided into two categories of swing sup/res and single bar sup/res.  We’ve discussed how swing techniques and single bar techniques are like the door to the house and a door within the room of the house respectively, as it applies to swing structure and single bar structure.

We’ve seen how swing is the effect and single bar is the cause and that this is why you should learn swing technique first.  We talked about the advantages of the Lcm method is how you can maintain a productive risk vs. reward ration by placing your stops according to single bar sup/res and taking your profit at swing sup/res because the range of single bar sup/res is usually going to be much smaller than swing sup/res.

And, we talked about how the difference between a market technique and market mastery can help you make better trading decisions by allowing you to control your emotions.

ALWAYS REMEMBER THAT, IF THERE IS  A LEVEL WHERE THE MARKET HAS AN OPPORTUNITY TO BOUNCE AGAINST YOUR POSITION… IT WILL

 

 

A. IDENTIFY SWING AND/OR SINGLE BAR SUPPORT AND RESISTANCE LEVELS

B. LOOK FOR BREAKOUTS OR REVERSALS AT A SUPPORT/RESISTANCE LEVEL

C. APPLY REACTION CYCLE TO BREAKOUTS AND PIVOT CYCLE TO REVERSALS

 

( BELOW IS THE ORDER IN WHICH WE WILL COVER THE MATERIAL )

SWING TECHNIQUE - WEEK 1

1.       BREAKINS

2.       BREAKOUTS

 

SINGLE BAR TECHNIQUE - WEEK 2

1.       REVERSAL BAR

2.       CONTINUATION BAR

 

EXCEPTION BARS - WEEK  3

1.       INSIDE BARS

2.       OUTSIDE BARS

 

ENTRY TECHNIQUE - WEEK 3

1.       REACTION CYCLE

 

EXIT TECHNIQUES - WEEK 4

1.       STOPS

A.      TARGET

B.      LOSS

C.      TIME

D.      WEAKNESS

CONFIRMATION TECHNIQUES - WEEK 4

1.       TREND

2.       VOLUME

3.       SUPPORT CLUSTER

4.       RESISTANCE CLUSTER

TIMING

1.       FIBONACCI BAR COUNT

2.       OCCILATORS

 

TODAY’S LESSON – SWING BREAK-INS ( 5/31/09 )

VIDEO NUMBERS FROM VIDEO ARCHIVE

 

  SAMPLE LIVE TRADING SESSION

LIVE TRADING ROOM - EURO SESSION-5/8/2009

1.  https://forextradingmajic.webex.com/forextradingmajic/lsr.php?AT=dw&SP=MC&rID=29351222&rKey=1B2A7A943B6A166A    713

 

SAMPLE VIDEO LESSON

68.      goto 1 fibonacci continued 1 of 2_003.wmv - <H:\goto 1 fibonacci continued 1 of 2_003.wmv>

http://www.forextradingmajic.com/goto%201%20fibonacci%20continued%201%20of%202_003.wmv

67.      goto 1 fibonacci cont. breakin_004.wmv - <H:\goto 1 fibonacci cont. breakin_004.wmv>

http://www.forextradingmajic.com/goto%201%20fibonacci%20cont.%20breakin_004.wmv 

72.      goto 3 breakins 2 of 2.wmv - <H:\goto 3 breakins 2 of 2.wmv>    ( PAID ACCESS ONLY)

http://www.forextradingmajic.com/goto%203%20breakins%202%20of%202.wmv

SAMPLE CHART LESSON

  Test questions 6/1/09

LESSON 1: (Test 1-break-ins/daily swing sup/resistance )Based on daily break-in levels for week beginning Sunday 5-31-09

1hr chart

1.      How did we know that bar #1 was a false upside breakout?

2.      How did we know bar 2 was a valid trade signal?

3.      How did we know bar 3 was our short entry bar?

4.      What was our short entry price?

5.      Where did we place our stop for the short entry?

6.      Where did we place our profit target and why?

7.      What is the gross profit or loss on the trade in pips?

 

 

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