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TABLE OF CONTENTS
I. Introduction ............................................................................................................... 4
II. Indicators & Tools .................................................................................................... 5
A. Forex Profit Boost .................................................................................................... 7
B. MACD .................................................................................................................... 10
III. Buy Trade Rules ................................................................................................... 13
IV. Sell Trade Rules ................................................................................................... 15
V. Example Trades .................................................................................................... 17
1. USDCAD Aggressive Long Trade .......................................................................... 17
2. EURUSD Conservative Long Trade ....................................................................... 19
3. GBPUSD Aggressive Short Trade ......................................................................... 21
4. EURNZD Conservative Short Trade ...................................................................... 23
VI. Important Notes .................................................................................................... 25
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Please download the Forex Profit Boost files from the members area. Copy and paste
the Forex Profit Boost indicator in the indicators folder in your MetaTrader4 platform,
and save the template into your templates folder.
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Once done, you may apply the chart template on your chart. Just open your MT4
platform, click on the Templates icon and select the Forexprofitboost template.
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For a SELL entry, the Forex Profit Boost bars should be Red in color and are above the
candlesticks.
The Yellow bars below the Blue and Red give us an extra confirmation. They give us
an indication of a stronger or weaker signal.
When the Yellow bars are below the Blue bars, this indicates that we have a stronger
signal that the market will continue on moving upwards.
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When the Yellow bars are below the Red bars, this indicates that the downtrend will
eventually stop and the Red bars will start to turn into Blue.
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B. MACD
The Moving Average Convergence-Divergence, or simply MACD, is a technical
momentum indicator developed by Gerald Appel. This indicator is popular, its used by
many traders to confirm buy and sell signals.
The indicator consists of the center line (also called zero line), signal (red) line, and
histogram (or bar graph).
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On the image below, you can see that the signal line crossed under the histogram. This
means that price is starting to climb. With the aggressive approach, you get a buy signal
when the histogram is above the signal line.
While with the conservative approach, the signal line has to cross the zero line to get a
confirmation that price is indeed rising. So you have a buy signal when the histogram is
above the signal line and has crossed (or is above) the 0 center line.
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On the other hand, when you see that the signal line is crossing above the histogram,
this means that the price will be moving downwards. You get a sell signal when the
histogram is below the signal line with the aggressive approach.
When using the conservative approach, the signal line has to cross under or be below
the zero line to get a confirmation that the price is falling. You will have the sell signal
when the histogram is below the signal line and has crossed under the 0 center line.
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4. Set the Stop Loss a few pips below the most recent swing low or under the Forex
Profit Boost indicator.
5. Set the Take Profit Level at the same distance as the Stop Loss (1:1 risk-ratio). For
example, if the Stop Loss is set at 30 pips then the Take Profit should be set at 30
pips.
The Stop Loss and Take Profit Levels illustrated below are for our conservative entry.
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4. Set the Stop Loss a few pips above the most recent swing high or above the Forex
Profit Boost indicator.
5. Set the Take Profit Level at the same distance as the Stop Loss (1:1 risk-ratio). For
example, if the Stop Loss is set at 30 pips then the Take Profit should be set at 30
pips.
The Stop Loss and Take Profit Level illustrated below are for the conservative entry.
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V. Example Trades
1. USDCAD Aggressive Long Trade
Below is the USDCAD 15 Minute chart. Using the aggressive approach, the first step is
to check for the Forex Profit Boost indicator to turn Blue in color. Once its formed blue
bars, well look for our second signal on the MACD indicator to make sure that the
histogram bar is above the MACD signal line.
You can see that both signals appeared below along the vertical line, we can place a
buy trade order at the open of the next candle.
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For this particular trade, well set the Stop Loss Level few pips below the most recent
swing low.
Next, we have to set the Take Profit Level at the same distance as the Stop Loss. Since
the Stop Loss is set at 23 pips then the Take Profit will be set at 23 pips.
This is a good example of an aggressive long trade taken using the Forex Profit Boost
system.
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We will then place the Stop Loss level under the Forex Profit Boost indicator or
approximately 39 pips away.
For our Take Profit Level, we will set it at the same distance as the Stop Loss based on
1:1 ratio. Since the Stop Loss is set at 39 pips then the Take Profit will be set at 39 pips.
You can see that our Take Profit level was hit after three candles and we managed to
exit this particular trade with a healthy profit.
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Well place our Stop Loss level a few pips above the recent swing high.
Next, we will place our Take Profit level at the same distance as the Stop Loss. Since
the Stop Loss is set at 22 pips, our Take Profit will also be at 22 pips.
We can see that the price dropped over the next few candles and hit our Take Profit
level.
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For our Stop Loss, well set it at the top of the Forex Profit Boost indicator.
For our Take Profit Level, we will set it at the same distance as the Stop Loss based on
1:1 ratio. Since the Stop Loss is set at 34 pips then the Take Profit will be set at 34 pips.
Price continued to decline and not long after we placed the Sell Trade, our Take Profit
Level was hit and we exited this particular trade with a healthy profit.
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Sincerely,
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