Dear readers and traders:

I have taken several measures to explain
“my trading system” . Still I find some express their concern and feedback. Here
is yet another method of presenting in sequence in this blog- my trading system.
The details are given in my trading system webinar series and are linked in the
left hand side menu bar below the word – subscribe.

Every day for the benefit of the
interested traders i am doing “Asian session : Live market analysis”
webinar explaining the components I use for the market analysis
and tracking and trading ideas.

Below is the sequence explained

my trading system consists of 3 components.

1. Intra-day expected market moves derived from the forecast
algorithm – it changes daily for the 3 sessions

2. market reading – it is the
method used irrespective of the forecast while trying the read what could be the
next move in sequence -it is explained below and does not change-
so daily update is not needed
once a trader understand how to read the intentions
using the  market time ( sessions times)  and the moves the trading decisions
can be made at ease.

3. Trading
strategy – does not change- is used in all trades
and are explained in the 3rd component.

sequence explained:

1.
Forecast
– it is given
in the form of expected market moves  for all the 3 sessions of the
day
– it is explained daily during Asian session: Live market analysis
and also displayed in the blog – it can be used as a guiding factor and cannot be followed in
full
.

Instead of expecting
the market may go up or down following the levels they achieve during session
wise moves, gives intra-day bias and the possible trend – like up or down. in
actual market, players use the traders net long and short conditions and make
the moves accordingly – so actual market can deviate from the expected moves –
but most of the time there might be a delay and the market may move in line with
expectation of the forecast in a phased manner. ( still traders are requested to
use trading strategies to limit the risk like using stop and stop at entry once
the position makes profit as the market can suddenly make unexpected moves).The
forecast is given with –like chance or “may be” condition and not definite
conditions. I wish the keep my disclaimer and apology if the expected moves go
wrong.

2.market reading:  what the players intend to do after
setting the initial high and low in 4 majors and 2 commodity pairs by 03:30 GMT
in 24 hrs forex market .It can be taken from Live market quiote page link: http://www.i-knowindices.com/saxo_bank.htm ,
or can be noted when I present Asian session live market analysis.

To certain extent we can understand following
their time based types of market moves.

a) market session timings

Japanese session – 00:30 -07:00 GMT

Gap time             – 07:00-07:30 GMT

European session -07:30-13:00 GMT

gap time             – 13:00-13;30 GMT

US session         – 13;30 -20:30 GMT

gap time             – 20:30-00:30 GMT      ——– (
gap time moves are false moves -the opposite may
be seen during first 30 min of the following session.)

b) I read the types of moves every 30 min –

stop hunt – may be seen below the initial low or
initial high for less than 30 min and may be for less than 30 pips, may be seen
during session start or session close time

false move – may be seen as a move from high to low
and without cutting the initial low could rise in less than 30 min and cut and
go above initial high. This move is to happen in less than 30 min.may be seen
during gap time and before the data release time.

Extended move – it a type of move happens after a
false move or stop hunt when the market volume improves. Quick moves or spike
are seen it happens for more than 30 min  and cease in 2 hrs time frame- cut the
high and rise every 30 min for 3 times (1:30 Hrs) and equal amount of rise may
be seen each time – can go up to net permissible levels for the day ( 150 pips
in EURO, 250pips in GBP, 200 pips in USD/YEN.USD/CHF and USD/CAD  and 100  pips
in AUD.)the extended move can be differentiated from stop hunt – when they cut
the initial low or high and do not come above initial low or below initial high
in less than 30 min then it can be extended move.

Intentional move – it is opposite of extended move-
slow move happen more than 2 hrs and reverse during 3rd session. When they
initial low or high is cut and in more than 30 min the market does not come
above initial low or below initial high, then slowly the rise or drop may
continue for more than 2 sessions and 3rd session may show initial continuation
and reverse during the 3rd midsession. it can also make the one sided move till
the net permissible level.

extnded stop hunts – these are extreme or aggressive
quick moves happen during trend reversal time. A quick rise up to the net
permissible level and reverse to where the move has started in less than 1 hr
may be seen.

3. Trading strategy

So if stop hunt or false moves is seen the
positions can be taken buy near the low or sell near the high with 30 pips stop
or entry stop if the hedging facility is available in the platform- a cross can
also be used as hedging with same 30 pips from the market at the time of taking
position if hedging in the same pair is not available in the platform. Once the
position makes profit of 20-25 pips stop can be moves to entry to reduce the
risk of trading to NIL.

if the position is stopped out or hedged then comes trading
strategy

if the move is identified as extended move then profit can be
booked in the hedging after 2 hrs and another hedging order can be placed 30
pips below market to limit the risk.if again hedged that means it is intentional
move – the original position can be closed with loss and the stop can be placed
in profit making hedging and trail down till the early 3rd session and closed
with net profit.

if trading with stop – if the stop is filled and the stopped
level is in profit for 30 min and market does not go above the initial low then
a technical trade of sell below initial low and close during the drop using
trailing stop ,identifyying the move as extended or intentional move and
maximize the profit.

IF INTENTIONAL MOVE IS SEEN OPPOSITE OF THE EXPECTED MARKET
MOVE OF THE FORECAST – THE FORECAST IS INVALIDATED.

Since the market reading and trading strategies does not
change  in my trading system – i am giving the first part – expected market
moves in this blog on daily basis. Market reading is explained during Asian
session: Live market analysis for those who can attend – other wise one can
follow what is given above. trading strategy is the tool to limit the risk and
maximize the profit during intra-day trading. Position traders can follow the
forecast with trading strategy of spreading the risk – ie take only 1% of the
equity the position at a given time and average only if the fall is for 150 pips
and more and try to close all the positions above average  with net profit. That
can be done from one trend reversal time to another  if equity permits and
willing to accept the overnight interest charged by the
platform.

Regards

Dr.Sivaraman