PipsAndTips.

com Live Data System Tutorial

It is very important that you carefully read these guidelines before using any of the signals or levels. We will update this tutorial according to members FAQ, so check back here regularly.

1) The Strategy

the system is essentially trend-following & based on short-term technicals. For swing trading you can still use the short-term signals, but you will probably want to follow the H1D1 directions & levels more closely.

With this system, you will NEVER trade against the trend. This doesnt guarantee that all entries are winners, of course but ALL entry signals without exception are trend-following (the rules of the system prevent counter-trend trading).

The system is designed to make large profits in trending markets & break even in choppy market conditions.

How the signals are generated: the system continuously checks for a certain set of technical conditions across 6 time frames (M1 to H4). Then, all data collected is entered into a proprietary algorithm which measures the strength of our trend indicators & assigns them a specific weight into the final formula.

2) The Short-Term Entry Signals (STES)

STES are generated live directly from our main trading platform. They are designed to catch short-term market movements with reasonably low risk exposure.

STES consist of a Strength Indicator & a Trend Direction with 3 readings:

1) Strength > 50% + BULLISH Direction = Green (LONG Signal) 2) Strength > 50% + BEARISH Direction = Red (SHORT Signal)

3) Strength < 50% + ANY Direction = Yellow (FLAT)

How to use the signals:

- get ready for a trade: once Strength reaches above 30%. Be patient & wait for the STES to reach the minimum trending strength of 50%

- entry condition: minimum 50% strength in the direction of your entry + favorable setup on the Levels (see below)

- exit condition: use the levels for Limit/Stop loss orders / exit on an opposite signal (50% strength in the opposite direction to your trade)

- the indicator may go back & forth between TRENDING mode & FLAT while you are in a trade. This is normal, especially in choppy market conditions. You can use the changes between FLAT & TRENDING to enter/re-enter while the setup on the levels remains valid. Remember that the STES is meant to be used together with the Dynamic Levels.

- if nevertheless you want to use the STES as your main entry/exit condition we advise that you simply enter when the indicator gives a TRENDING signal (value goes above 50%) & reverse when the signal changes to TRENDING in the opposite direction. This strategy will work well in strongly trending markets, but may fail to capture key tops/bottoms in sideways markets (thats why use of the dynamic levels is advisable)

- Remember to ALWAYS pay attention to CONFLUENCES of key levels (when 3 or more key dynamic levels are within 10pips distance), as its likely the market will either pause or reverse direction at those levels & that is usually a good area to place your stop/target orders against.

- while in FLAT mode, the indicator will remain yellow in color, but it will display both positive (bullish) & negative (bearish) values. Since the market pulse is flat we did not indicate these directions with a color change, but you can still see the true reading of the indicator by looking at the value (-20% will mean the bias is slightly bearish, for instance, while a 35% reading will indicate mild bullishness with possible long signal coming up soon).

- we advise that you dont enter a trade if the indicator is already above 75% when you log in. WAIT at least for it to go below 50% & take your entry at the next change from FLAT to TRENDING.

4) The Key Levels (Dynamic Support/Resistance Zones)

The dynamic levels of support/resistance are the most important element in the system, because they help you achieve a good R/R ratio for every trade. Its not enough to know the direction & strength of the trend at any point in time, its also important that you choose your entry/exit levels wisely.

The key levels are great for managing your trades according to the market pulse & your own discretion. Remember: the STES signals are not meant to be followed blindly; they are supposed to be used in a way that makes sense to you, according to your own trading style, time availability & risk tolerance.

Please treat the levels as Support/Resistance ZONES, and not as precise-to-the-pip tops & bottoms. No one can predict the exact beginning & end of a market move and thats not even the objective here. The point is to identify KEY ZONES of dynamic support/resistance where we can strategically take our profits or limit our risk.

Our system generates automatically 2 levels for each time frame (M5 to D1). Then, these levels go through a filter. In case of support levels, if price is above BOTH on a particular time frame, then the system will display only the lower level & mark the other one as open (same thing applies to resistance levels). That means basically that price has no obstacle on that time frame & price is open to continue moving in the direction of the trend.

When you are in a trade, watch ALL the levels in the instrument box & see how price reacts to each of them. The more open readings you have, the higher the probability of a large move on the trend keep this in mind when managing your positions.

The closer the levels are to each other, the stronger the area of S/R. As a rule of thumb when 3 or more levels are within a 10 pips area expect that area to be either a good support/resistance zone or a nice breakout point. This information can be extremely useful for setting limit & stop loss orders & can help you maximize the profit from the signals. We call this CONFLUENCE LEVELS maybe the most powerful feature of the entire Live Data System when combined with the STES bias.

5) The Trend Directions (6 timeframes)

Calculated on 6 timeframes (M5, M15, M30, H1, H4, D1), the trend directions are provided mainly for swing traders (for the management of longer-term positions).

The H1, H4 & D1 trend directions can also be used by short-term traders (day traders) as filters for their positions. But we advise against using these levels as main arguments for entries & exits unless you are very well-versed with how they work. If you are a short-term trader (intraday) we advise that you use the STES system instead as its already been designed & balanced for short-term trading.

They can also serve as reference in trading other systems, together with the Dynamic Key Levels.

Final Observations

We advise all traders/investors to use these tools wisely. Powerful as they may be, they are not magic wands. Personal discretion is highly advised we are NOT providing precise entry & exit levels for all trades because each trader has his own style, objectives & risk tolerance. As a trader you have to take responsibility for your trading/investment & understand that any tool/system/signal has limitations & no entry is ever 100% sure or free of risk.

We advise caution in trading around key fundamental reports, like Interest Rate announcements or Non-Farm Payrolls releases. Make sure you keep an event calendar near & check every day for high-impact events that could influence your trades. Please keep in mind that THE SYSTEM WILL UPDATE IN REAL TIME, BUT YOU SHOULD WAIT FOR AT LEAST A M15 CANDLE TO CLOSE BEFORE MAKING A DECISION USING THE LIVE DATA SYSTEM.

We really appreciate your feedback. We are continuously working on improving both the performance of our service & the way it is delivered thus any input from traders is highly appreciated. We take all suggestions seriously & do our best to integrate your valuable feedback into our work.

We hope you enjoy our proprietary trading tools! Happy trading!