Trading the Martingale Strategy

After trying so many different things I found the best way to make money online is by trading the currencies in the forex market. The advantage of trading currencies in the forex market is that you could trade in a much smaller trade lot. Thus even with a small capital I could make use of the martingale strategy combined with a good proper money management technique to make money from the market continuously.

Now, I know some people are quite negative the use of martingale strategy. In fact, you are right to think so. If you look from a medical point of view, martingale strategy is like a poison. Poison in most ordinary people’s view is a substance that kills. However, some very wise medical practitioners are able to make use of poison to cure chronic diseases. This is because they knew the right portion of poison to use. Using too much will certainly kill the person you are trying to cure.

Thus when one is using martingale strategy, it is the same, be very careful not to use a high multiplying factor. A factor over 1.5 is too consider too high. Choosing the right multiplying factor requires skill and experience, plus you need to combine with other strategies to make it work. The other strategies are

1) A strategy that trades with the trend. This is very important.

2) A hedging strategy that safeguards your positions against trend change allowing you to make extra money.

3) The third and most important is money management. You must have enough money.

Thus with these combinations
- Good Money Management
- Martingale Strategy with the right multiplying factor
- Hedging Strategy
Making money from the forex market becomes quite easy.

Forex Robot For Starter

It is now easy to trade Forex with Expert Adviser software. Expert Advisors (EAs) or Forex robots simplify your trading, you just need to buy the right software.
You should be careful and make a correct decision when buying an automated Forex robot. Out in the market, there is much scam software being sold. When I first started my journey in Forex trading using robot I fell into some of these scams. Do not think that a robot that is selling at $1000 or $5000 would be a good robot. You be surprised.
I will list some of this scam software here so that some of you may not fall into their traps again. Please note that these sellers can change their software’s name anytime.
Gomega
Destiny
Fabturbo
Autopilot
EA Shark
Kiss future
Fabs
Auto cash robot.
To gauge whether a robot is good or not, it may not be enough just to view the statement produced. Some of these cunning sellers make use of fake statement to con you. So be careful with this approach.
I believe the best way to know if a robot is good or not and can make money for you is
1) Check the statement
2) Compare the statement with the live trading account or get a chance to have demo test it. Unfortunately, nobody out there so far allows you to check out this.
I once have to pay US$900 just to view somebody’s live account for only one month. Still I was con. Anyway, it is better to lose $900 than pay $10000 for it.

Check out my live account
http://bit.ly/bZ9oHI

How do I find a Bullish Gartley pattern?

Each turning point (X, A, B, C, and D) represents a significant high or significant low on a price chart. These points define four consecutive price swings, or trends, which make up each of the four pattern “legs.” These are referred to as the XA leg, AB leg, the BC leg, and the CD leg. Bullish patterns help identify higher probability opportunities to buy, or go “long.” In addition to the following guidelines, ABCD pattern rules/characteristics are still in effect and must be observed (for example, warning signs such as wide-ranging candles and/or gaps prior to pattern completion).
1. Price swing from A up to D ideally at the 61.8% or 78.6% retracement of XA
-Valid ABCD pattern must be observed in move from A-to-D.
2. Time of AD ideally "equal" to XA, but may fall within 61.8%-161.8% time of XA
3. Limited instances where ABCD move completes at 100% of XA (double top)
-Note: Time of XA and AD should be equal for “true” double top
4. Pattern failure occurs when price moves beyond point X, and may indicate a strong continuation move is in progress
-Price typically moves to 127.2% or 161.8% of XA

How do I find a Bearish Gartley pattern?

Each turning point (X, A, B, C, and D) represents a significant high or significant low on a price chart. These points define four consecutive price swings, or trends, which make up each of the four pattern “legs.” These are referred to as the XA leg, AB leg, the BC leg, and the CD leg. Each pattern has both a bullish and bearish version. Bearish patterns help signal opportunities to “short,” or sell. In addition to the following guidelines, ABCD pattern rules/characteristics are still in effect and must be observed (for example, warning signs such as wide-ranging candles and/or gaps prior to pattern completion).


. Price swing from A up to D ideally at the 61.8% or 78.6% retracement of XA
-Valid ABCD pattern must be observed in move from A-to-D.
2. Time of AD ideally "equal" to XA, but may fall within 61.8%-161.8% time of XA
3. Limited instances where ABCD move completes at 100% of XA (double top)
-Note: Time of XA and AD should be equal for “true” double top
4. Pattern failure occurs when price moves beyond point X, and may indicate a strong continuation move is in progress
-Price typically moves to 127.2% or 161.8% of XA

Gartley Pattern

What is a Gartley pattern?
- A visual, geometric price/time pattern comprised of 4 consecutive price swings, or trends-it looks like a skewed “W” or "M" on price chart.
- Contains an ABCD pattern preceded by a swing high or swing low.

- First introduced in 1935 by trader H.M. Gartley in his book, “Profits in the Stock Market.” Specific pattern characteristics including Fibonacci price/time ratios applied by veteran trader Larry Pesavento in his book, "Fibonacci Ratios With Pattern Recognition."
Why is the Gartley pattern important?
- Helps identify trading opportunities in any market (forex, stocks, futures, etc.), on any timeframe (intraday, swing, position), and in any market condition (bullish, bearish, or range-bound markets)
-Reflects convergence of Fibonacci retracement and extension levels at point D, thus indicating a higher probability pattern
-Acts as a leading indicator helping to determine approximately where & when to enter and exit a trade

The Bearish ABCD Pattern

What is it?
• A leading indicator that may help determine where and when to enter a short (sell)
position or exit a long (buy) position
• A visual, geometric price/time pattern comprised of three consecutive price swings,
or trends—it resembles a lightning bolt on price chart
• Reflects the common, rhythmic style in which the market often moves
Why is it important?
• Helps identify selling opportunities in nearly any market for almost any timeframe (intraday,
swing, position)
• Serves as a basis for all other bearish Fibonacci patterns
• Highest-probability trade entry may be at the completion of the pattern (potential sell point D)
– Retracement followed by an extension suggests a higher probability for another
retracement to occur
• Helps to determine risk vs. reward prior to placing a trade
• May provide a stronger trade signal when it converges with other patterns — within the same
timeframe or across multiple timeframes
Sounds good … So how do I find it?
Each turning point (A, B, C, and D) represents a significant high or significant low on a price chart.
These points define three consecutive price swings (trends) which make up each of the three
pattern “legs.” These are referred to as the AB leg, the BC leg, and the CD leg.

Trading is not an exact science, so really there are three different types of ABCD sell patterns. There are key Fibonacci ratio relationships to
look for in the proportions between AB and CD, offering an approximate range of where and when the ABCD pattern may complete. This is
why converging patterns help increase probabilities and allow traders to more accurately determine entries and exits.

Trading is not an exact science, so really there are three different types of ABCD sell patterns. There are key Fibonacci ratio relationships to
look for in the proportions between AB and CD, offering an approximate range of where and when the ABCD pattern may complete. This is
why converging patterns help increase probabilities and allow traders to more accurately determine entries and exits.

The Bullish ABCD Pattern

What is it?
• A leading indicator that may help determine where and when to enter a long position,
or exit a sell position
• A visual, geometric price/time pattern comprised of three consecutive price swings,
or trends—it resembles a lightning bolt on a price chart
• Reflects the common, rhythmic style in which the market often moves
Why is it important?
• Helps identify buying opportunities in nearly any market for almost any timeframe
• All other bullish Fibonacci patterns are based on (include) the bullish ABCD pattern
• Highest-probability trade entry may be at the completion of the pattern (buy at point D)
– Retracement followed by an extension suggests a higher probability for another
retracement to occur
• Helps to determine risk vs. reward prior to placing a trade
• May provide a stronger trade signal when it converges with other patterns — within
the same timeframe or across multiple timeframes
Sounds good … So how do I find it?
Each turning point (A, B, C, and D) represents a significant high or significant low on a price
chart. These points define three consecutive price swings, or trends, which make up each of
the three pattern “legs.” These are referred to as the AB leg, the BC leg, and the CD leg.

Trading is not an exact science, so really there are three different types of ABCD buy patterns. There are key Fibonacci ratio relationships to
look for in the proportions between AB and CD, offering an approximate range of where and when the ABCD pattern may complete. This is
why converging patterns help increase probabilities and allow traders to more accurately determine entries and exits.


Bullish ABCD Pattern Rules
1. Point A is a significant high, and point B is a significant low. In the move from A to B there can be no highs above point A,
and no lows below B
2. Point C must be lower than point A. In the move from B to C there can be no lows below point B, and no highs above point C
• Ideally, point C will be 61.8% or 78.6% of AB (“Classic” ABCD pattern)
• In strongly trending markets, BC may only be 38.2% or 50% of AB
3. Point D must be lower than point B (market successfully achieves a new low). In the move from C to D there can be no
highs above point C, and no lows below point D
• CD may equal AB (AB=CD pattern)
• CD may be 127.2% or 161.8% of BC (“Classic” ABCD pattern)
• CD may be 127.2% or 161.8% of AB (ABCD Extension pattern)
4. There may be additional confirmation when the time of CD is in ratio/proportion to AB
• CD may equal AB in time, or CD may be between 61.8%-161.8% time of AB
5. Watch for price gaps and/or wide-ranging bars in the CD leg, especially as market approaches point D
• These may be signs of a potential strongly trending market. In this case, a 127.2% or 161.8% ABCD extension pattern is more
likely to occur.

The Bearish Butterfly Pattern

 

What is it?

• Contains a bearish ABCD pattern preceded by a significant high (X)
• Convergence of Fibonacci extension ratios at point D
– Point D = Fibonacci extension of BC and XA
• Formed by two connecting triangles at point B, symmetry is key
• Pattern is found only at significant tops (highs) and bottoms (lows)
Why is it important?
• Convergence of Fibonacci extension ratios may provide higher probability for change
in market direction
• May provide lower risk with the potential for higher reward
• Pattern failure may suggest a potentially strong bearish continuation may be in progress
Sounds good … So how do I find it?
Butterfly patterns are similar to Gartley patterns in that they resemble a “W” shape on a
price chart. However, a butterfly pattern completes at the convergence of two separate
Fibonacci extension levels (D is above X) whereas the Gartley completes at the convergence
of a Fibonacci retracement and extension (D is below X). The symmetry between the two
connecting triangles at point B is one of the keys to this pattern.

Bearish Butterfly Pattern Rules
1. The swing from A to D is a 127.2% or 161.8% extension of XA
• Note: D must be above X
2. A valid ABCD must be observed in the extension move (AD)
3. Additional confirmation may be attained when the times of
the XAB and BCD triangles are in proportion
4. A move beyond 161.8% negates the pattern and may suggest
a potentially strong bullish continuation

The Bullish Butterfly Pattern

What is it?
• Contains an ABCD pattern preceded by a significant low (X)
• Convergence of Fibonacci extension ratios
– Point D = extension of BC and XA
• Formed by two connecting triangles at B
• Pattern is found only at significant tops (highs) and bottoms (lows)
Why is it important?
• Convergence of Fibonacci extension ratios may provide higher probability for change
in market direction
• May provide lower risk with potential for higher reward
• Pattern failure may suggest a strong continuation move
Sounds good … So how do I find it?
Butterfly patterns are similar to Gartley patterns in that they resemble a “M” shape on a
price chart. However, a butterfly pattern completes at the convergence of two separate
Fibonacci extension levels, whereas the Gartley completes at the convergence of a Fibonacci
retracement and extension.
The symmetry between the two connecting triangles at point B is one of the keys to this
pattern. As with all geometric patterns, a buy or sell signal occurs as the pattern completes at
point D.

Bullish Butterfly Pattern Rules (buy at point D)
1. The swing from A-to-D should be a 127.2% or 161.8%
extension of XA
• Note: D must be below X
2. A valid ABCD must be observed in the extension move (AD)
3. Additional confirmation may be attained when the times
of the XAB and BCD triangles are in proportion. Ideally,
these two triangles will be nearly equal in time. Otherwise,
look for the BCD triangle to complete between 61.8% and
161.8% of XAB
4. A move beyond 161.8% negates the pattern and may
suggest a potentially strong bearish continuation is in
progress