ForesightFX User Manual6

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ForesightFX.com User Guide

How to trade profitably
with ForesightFX:
The User Guide

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Disclaimer (The Boring Bit)

U.S. Government Required Disclaimer - Trading foreign exchange on margin carries a high level of risk and may not be
suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in
foreign exchange, you should carefully consider your investment objectives, level of experience, and risk appetite. The
possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest
money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and
seek advice from an independent financial advisor if you have any doubts. The purchase, sale or advice regarding a
currency can only be performed by a licensed Broker/Dealer; Neither us, nor our affiliates or associates involved in the
production and maintenance of this service or this site, is a registered Broker/Dealer or Investment Advisor in any State or
Federally-sanctioned jurisdiction. All purchasers of services or products referenced at this site are encouraged to consult
with a licensed representative of their choice regarding any particular trade or trading strategy. No representation is being
made that any account will or is likely to achieve profits or losses similar to those discussed on this website. The past
performance of any trading system or methodology is not necessarily indicative of future results. You must clearly
understand this: Information contained here and in the signal service is not an invitation to trade any specific investments.
Trading requires risking money in pursuit of future gain. That is your decision. Do not risk any money you cannot afford to
lose. This document does not take into account your own individual financial and personal circumstances. It is intended for
educational purposes only and NOT as individual investment advice. Do not act on this without advice from your
investment professional who will verify what is suitable for your particular needs and circumstances. Failure to seek
detailed professional, personally tailored advice prior to acting could lead you to acting contrary to your own best interests
and could lead to losses of capital. *CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE
CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL
TRADING. IN ADDITION, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER
COMPENSATED FOR THE IMPACT OF ANY OF THE CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED
TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF
HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES
SIMILAR TO THOSE

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Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Pages 4 5

Our Philosophy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 5

Best Time To Trade . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Page 6

How to Read the ForesightFX Forecast Page . . . . . . . . . . . . . . . . . . . . . .Pages 7-10

The Steps to Success with ForesightFX (main content) . . . . . . . . . . . . . .Page 10 30

Step 1: Getting the Forecast Alert . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Page 11

Step 2: Plot the Synergy Zone . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Page 11

Step 3: Plot the Targets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 13

Step 4: Watch the Video . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Page 14

Step 5: Omegavus MACD Confirmation . . . . . . . . . . . . . . . . . . . . . . . . . . Page 15

Step 6: Moving Averages Confirmation . . . . . . . . . . . . . . . . . . . . . . . . . . Page 17

Step 7: Elliot Wave Confirmation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 19

Step 8: Pivot Step Entry When Synergy Zone is Hit . . . . . . . . . . . . . . . . . Page 20

Step 9: What if the Synergy Zone is Missed . . . . . . . . . . . . . . . . . . . . . . . Page 22

Step 10: What if Price Moves Through Synergy Zone Stop Loss Level. . .Page 25

Step 11: What if Carlos Recommends a Pivot Step Entry (no Synergy Zone) . Page 25

Step 12: Stop Loss and Risk Management . . . . . . . . . . . . . . . . . . . . . . . . Page 28

Step 13: Managing Your Trade Through the Targets . . . . . . . . . . . . . . . . Page 29

Final Thoughts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Page 30

ForesightFX Trading Checklist . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 30

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Imagine a future where . . .

You live in the house of your dreams. You dine at the best restaurants in town.
You take long expensive luxurious holidays. Your familys future is financially
secure and you certainly dont need to waste your time with a 9-5 job because
money is abundant. Does that sound good?

Well trading can give you all this and more, but it doesnt come easily. Yes, I
hate to say it, but if you sincerely want to make it in the world of forex
trading then you will have to learn to think and act like a professional forex
trader. Theres really no other way around it. I know the sales pages of those
forex robots scams, trade copiers and magical EAs are tempting but lets just
get real for a moment. Ive met hundreds of successful traders over the last 20
years in the industry and not one of them made their fortune easily by simply
plugging in one of the solutions mentioned above. How did they make their
fortunes?

The vast majority of the successful traders Ive met did it by learning how to
read the markets. They learned how to interpret price action. They had a plan
(a trading edge) that worked and they stuck to it until they got the results they
desired. Here is the good news . . .

If you are reading this guide, you are on the right path. We have helped
countless struggling traders turn their frustration to freedom. What we do will
work for you provided you play your part. Do not underestimate the power of
what is being offered here. It took me 20 years of experimentation and well
over $100,000 in forex education and mentoring to arrive at where I am now. If
you are on the inside of ForesightFx you are going to be looking over my
shoulder daily to see how I plan my trades. You will not only have the game
plan, but you will have it explained to you clearly everyday. You will be
getting a direct insight into my trading methodology and mindset. Essentially
that means you are getting the inside track towards becoming a professional
trader. If that is something you truly want then please put everything you have
into this opportunity. I can only open the door, but you have to walk through
it.
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In the rest of this guide one of my team is going to take you through the basics
of trading with ForesightFx. Think of this as your cheat sheet. Its here to get
you up to speed and help you understand and follow along with my daily
forecasts. Im confident that if you understand how ForesightFx works early on,
you and I will have a long and prosperous journey together. I know this
because Ive seen it happen over and over again. This is real trading for serious
traders. If you are just playing around with trading and arent really serious
about becoming a successful trader then just stop reading now. Like I said, this
is your chance to make amazing things happen in your life, so please take it
seriously your future happiness might just depend on it.

Great to have you on board!

Happy pip hunting,

Our Philosophy

ForesightFx is about real trading for serious traders. Therefore we practice
patience. We trade when we have a high probability of winning and we sit back
and watch the market when the probability does not fall in our favour. We
treat every trade like our life depends on it. We are not gamblers. The markets
are not our casino. This is our business. Risks are calculated and managed. We
exist for one reason only - to enable you to build massive wealth through forex
trading. This will not happen overnight. Your accumulation of wealth will
probably fall in line with your accumulation of knowledge and practice.
Discipline is required. We know that becoming wildly successful at anything
isnt necessarily easy, but it is worth it. ForesightFx is your map and your
compass. We will guide you to massive profits if you play your part.

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The Best Time to Trade

The best time to trade using the ForesightFx methodology is between 6am
GMT and 1pm GMT. This is when the markets are at their most predictable. At
1pm 2pm GMT the USA market opens and things become much more
volatile. You can still trade outside of our recommended hours but we urge you
to do so with extreme caution. Always check for news reports and keep a close
eye on the ForesightFX confirmations (MACD, Moving Averages, Elliot Waves,
Pivot Steps) which you will learn about in the rest of this guide.

No Trade Days: Newbies Vs Advanced Traders

Carlos is fond of saying: We trade with the trend, because the trend is our
friend! What this really means is that we only trade when there is a very clear
upward or downward trend in progress. We do not trade in a sideways market.
We trade with the trend in order to ensure a high probability of our trade
working out as expected. This sometimes causes us to have days where we
literally cancel our plans to trade and stay out of the market until a much
clearer trend is apparent. These are known as No Trade days.

New traders typically dislike these No Trade days because they feel they have
to be in the markets as much as possible to be a real trader (whatever that
is). More advanced traders, especially those who have lost a lot in the past,
tend to understand and respond better to No Trade days. They understand
that avoiding volatile or uncertain situations is just as important to your
monthly bottom line profit as entering winning situations. That is a
professional traders mentality.

Please understand that the purpose of No Trade days is to ensure you get to
keep as much of your capital as possible. Individual wins and losses are largely
irrelevant how much you take home at the end of the month is what really
matters.

When there is a No Trade day, Carlos will still make a forecast video so you
can understand the thinking behind the decision and learn from it.
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How to Read the ForesightFX Forecast Page

Below I will take you through the various sections of the forecast page. This is
the page you will use most as a member. This is where all of the components
for that days trading strategy are laid out.

1. BUY/SELL Instruction This is found at the very top of the forecast page.
This section enables you to see at a glance which currency trades we will
be looking to participate in that day. It also tells us whether the
probabilities lie with a buy or sell set up. Knowing this immediately gives
you a trading advantage. You now know with good probability which
way the markets are likely to move for a particular currency on that day.
This is what that sections looks like:

2. Daily Forecast videos These can be found just below the BUY/SELL
instruction. In these videos Carlos gives his analysis from the previous
day of trading. This allows you to get a deep insight into how you should
have traded and allows you to understand where you might have gone
wrong if things didnt go to plan. Carlos then moves on to his forecast for
that day ahead and explains how you should manage your trades.

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Watching these videos is crucial because Carlos will give extra insights
and training that the numbers listed on the page wont reveal. Having
access to these videos is like having a coach or mentor. You are getting
insights from a 20 year professional who trades for a living. The videos
look like this (below) on the page. Just click on them to play. If you click
the icon in the bottom right corner of the videos (two diagonal arrows)
the videos will play in full screen. Just to the left of that is the volume
control.

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(Please note: if you are having any trouble watching the videos please
try another browser).

3. Synergy Zone This is the highly calculated area where price is most
likely to hit and change direction. Carlos works out the parameters for
this area every day for members (provided its not a no trade day). He
lists the details in the forecast area the night before trading. The Synergy
Zone is calculated using pure price action activity. It is not based on
news reports or anything like that. It is a complex calculation that has
been allowing us to predict market movements for years. Later on well
show you in more detail how to use the Synergy Zone for maximum
effect. This is where you find that information on the forecast page
(outlined in red):

You will see how to plot this on your chart later in this guide.

4. Targets These are highly calculated areas where price is likely to reach
after changing direction. This is worked out using Carloss own
methodology which relies on price action activity. We have three targets
where price is likely to reach. Since the probability of reaching each
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target decreases as price moves through them, knowing where they are
allows us to manage our money by decreasing our contract sizes as we
progress from one target to the next. We will cover this in more detail
later in this guide. You will find the targets as shown below on the
forecast page (outlined in red):

5. News Releases Calendar News releases can disrupt the market and
throw our price action based forecasts out of kilter. Therefore we
recommend you trade between 6am GMT and 2pm GMT. This is when
the markets are at their most stable and predictable. However,
sometimes you may want to hold trades longer. In these cases it is
important to check for news releases that could affect your trades. The
link to the calendar can be found at the bottom of the forecast page.

The Steps to Success with ForesightFX

In the following sections I will take you through the daily process you will need
to go through in order to trade successfully with us. I will also take you through
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possible scenarios that are likely to come up. Once you understand everything
you might want to change things around to suit your own style.

Please note that the steps below might seem complicated when you first look
over them but but in reality (after a bit of practice) you will find setting up the
charts takes no more than a few minutes per chart. After that you simply need
to keep an eye on price action in order to find a trigger for a buy or sell
opportunity. Please dont worry if this doesnt make sense yet, it will all fall
into place as we progress.

This guide is really intended to be an overview of the basics in order to get you
up to speed and allow you to join in with trading as soon as possible. However,
the really powerful knowledge and insights will come via the daily forecasts
available to all members and the further training videos in the VIP training
section of the website which are only available to full ForesightFX members.

So lets get down to business . . .

Step 1: Getting the Forecast Email Alert

The daily process normally begins with an email from Carlos Diaz and it will
look something like this:

Open that email. It is there to let you know the daily forecast is ready. The
email should always arrive well before 6am GMT. If for any reason you do not
get the email just login to the membership anyway and see if we have trading
set ups for the day laid out on the forecast page.

Step 2: Plot the Synergy Zone

In order to plot the Synergy Zone on your own MT4 chart simply follow the
instructions below.

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2.1. Copy the figure you find on the forecast page in the Synergy Zone section
that relates to the pair you are looking at (just highlight the number, right click
on it and select copy).

2.2. Go to your MT4 chart and select the horizontal line drawing tool from the
tool bar at the top.

2.3. Click on the chart to draw your horizontal line. Then double click on the
line you just created. Then click on the small box at the end of the line (to the
right) to bring up the options. Select Horizontal Line Properties. Add the
figure you copied over from the Synergy Zone section of the forecast page as
shown below.

Click on the tab called Common if you wish to change the colour of the lines.
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2.4. Repeat this with the second figure in the Synergy Zone line (for the pair
you are concentrating on) so you have two horizontal lines across your chart.

2.5. Select insert in the menu bar and scroll down to shapes. Then select the
rectangle drawing tool. You can now draw a rectangle in between your plotted
Synergy Zone lines. Put this rectangle starting at 8am GMT and finishing
around 2pm GMT (you can use any colour you like). This is your Synergy Zone
for that day and should price hit this area it is highly likely to change direction.
The example below shows how this might look for a potential SELL set up.

What if there is no Synergy Zone but Carlos indicates a Pivot Step Entry?

If Carlos indicates a Pivot Step Entry without a Synergy Zone you can skip the
steps mentioned above. We will discuss that situation on page 24.

Step 3: Plot the targets

Now we have the Synergy Zone plotted its time to plot three targets for the
currency pair were working on. Follow the instructions below to achieve this:

2.1. Highlight and right click to copy the figure given for the first target on the
forecast page.

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2.2. Go over to MT4 and use the horizontal line drawing tool as we did earlier
(when drawing the Synergy Zone lines). Input the figure as before to get your
first target in the right place.

2.3. Repeat this process for the second and third targets also.

The example below shows how your chart might look after the Synergy Zone
has been hit in a SELL set up and price is moving towards the targets.

Step 4: Watch the video

Watch the video and make notes on what Carlos recommends for that day of
trading. Many key insights are shared in these videos so it pays to give them
your full attention, even on no trade days.

It is especially important to watch the video if Carlos has indicated a Pivot Step
Entry without the Synergy Zone.

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Please dont worry if you find the forecasts confusing at first (especially if you
are new to trading and ForesightFX). Carlos is an advanced trader and is
sharing some high level strategies in these videos so it might take little getting
used to. However, we find over and over again that traders who stick with it
and give it their full attention quickly get used to the forecast videos and start
to profit as a result.

Important note: Now that we are set up we need to look for triggers to enter
trades. In the following sections (Step 5-7) we will be looking at various
indicators that we use as confirmation to help us find potential triggers/entries
to get into trades. Please note that most indicators are lagging indicators. This
means they are providing information that is not up to date. In turn this can
cause traders to make decisions based on old/incorrect metrics. Inside
ForesightFX we have unique insights that transform lagging indicators into
leading indicators. This means we can use these tools to help us predict market
movements and confirm that our predictions are correct. That is what well be
looking at in the next steps.

Step 5: Omegavus MACD Confirmation

The MACD we use inside ForesightFX has been specially modified for our needs
and is only available to full members. If you are not a full member but would
like to get this MACD you can upgrade your membership by using the upgrade
options inside the ForesightFX back office. Once there you will also find full
instructions on how to set up the MACD and more insights on how to use it.

Even if you are not a full member, this next section is still useful as Carlos will
often show the MACD in his forecast explanations.

How the MACD works

The MACD we use has two levels on it. The 80 line and the 20 line. You can see
them marked below. In order to get the most accurate results we use the 4
hour chart. Below is an example of how it looks on your chart, underneath the
main price action graph.
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The MACD is really there to help us identify major trends before they happen. I
have outlined the steps below that are needed to identify these potential
trends:

5.1. If you are looking to confirm the market tendency for a potential bullish
scenario (a turn to the upside) you should expect to see the blue line cross the
red line below the 20 line like this.
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5.2. If you are looking for a potential bearish scenario (turn to the downside)
you should expect to see the red line cross the blue line above the 80 line like
this.

Step 6: Moving Averages Confirmation

The next step in confirming whether or not you have a potential entry into a
trade is to look at the moving averages. Follow the steps outlined below to get
them set up for the ForesightFX trading methodology:
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6.1. If you dont have moving averages showing on your MT4 chart simply
move your mouse over to the Navigator section on the left side of your MT4
and find the section on Moving Averages. Once you have it in your sights, you
simply drag it onto your chart.

6.2. Click on the red line and enter the figure 34 in the box marked Period.

6.3. Do the same as mentioned above for the blue line but enter the number 8
instead of 34 in the box marked period. Your chart should now look
something like this:

How to read the Moving Averages

6.4. If the blue line crosses the red line it indicates a potential BUY set up.

6.5. If the red line crossed the blue line it indicates a potential SELL set up.

The best chart for analysing the Moving Averages is the 1 Hour chart.
Moving Average are also lagging indicators (especially on bigger timeframes)
so we are only using them to confirm what we already suspect that a
potential trade set up is occurring in the direction we are anticipating.

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Step 7: Elliot Wave Confirmation

Elliot Waves are the technical name for the way price moves up and down in
wave-like shapes. In forex these waves tend to take five different moves to
reach their conclusion, after which they tend to reverse. The example below
shows a typical Elliot Wave pattern moving downwards. Each wave has been
numbered.

When using Elliot Waves as a confirmation in the ForesightFX system we simply
have to zoom out and identify which wave we are on in the current set of Elliot
Waves. Doing this is useful for us because we can draw certain conclusions
about how price is likely to move in future if we can identify where we
currently are in an Elliot Wave cycle.

In a typical Elliot Wave cycle the longest waves are wave 3 and wave 5.
Entering into a trade on these waves gives us the best possible chance of
gaining maximum pips.

In order to identify where you currently are in an Elliot Wave cycle you need to
read the chart from right to left while identifying the most significant price
highs and lows during a particular trend. This will allow you to figure out
whether a trend is just beginning (waves 1 or 2), is in the middle (wave 3), or is
coming to an end (waves 4 or 5).
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Having this information gives us yet another edge when trading and also adds
another level of confirmation to our analysis of the market.

Confirmation Strategies Insight:

Each confirmation strategy discussed above gives you a small piece of the
puzzle. However, when you put these three strategies together you are able to
understand the market on a much deeper level. Many new and experienced
traders end up losing because they do not take the time to properly analyse
the market in this way. This is how professional traders operate they dont
gamble, they make considered strategic moves. This is part of our core
philosophy inside ForesightFX.

Step 8: Pivot Step Entry When Synergy Zone is Hit

Once we are confident that price is moving in the direction we want it to
(based on the factors mentioned above) we can look for an entry into the
trade. In this section I will walk you through the perfect scenario we are hoping
for - a direct hit where price reverses from the Synergy Zone area. However,
its not just a case of price hitting the Synergy Zone that tells us to enter the
market. There needs to be one more confirmation in order for us to
confidently enter the trade. This is what I will explain next.

The Steps Needed to Find an Entry Once Price is Inside the Synergy Zone

8.1. Select the trend line drawing tool found in the tool bar on MT4.

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8.2. In this example we will use an expected down trending scenario from the
Synergy Zone. Find the two most significant low points on the line that has
entered the Synergy Zone. They are points A and B on the example below.

8.3. Now draw a support line between those points, going through the Synergy
Zone (if you were expecting to BUY would do the same thing with a resistance
line). The example above also shows how this support line would look.

8.3. Once price is inside the Synergy Zone we are looking for it to significantly
break the most recent trend line we have drawn. This will be our entry point
into the trade and is clearly marked SELL in the example above.
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Step 9: What if the Synergy Zone is missed?

Sometimes things just dont go to plan. Thats natural, especially in trading as it
is definitely not an exact science. Although we are using an accurate
methodology inside ForesightFX, along with highly calculated areas and
targets, we cant expect a 100% hit rate. That just isnt realistic (despite what
the forex scammers might tell you about their magical systems). However,
knowing what to do when things dont go as expected is the key to finding
success when trading the markets. That is what we are dealing with in this
section.

Take a look at the example below. It shows a scenario where price didnt go
into the Synergy Zone as expected, but it did hit the projected targets.
Wouldnt it be great if we could enter a trade and take profits from this
scenario before the targets are reached? That is what this next section is all
about.

As price is approaching the Synergy Zone it is worth keeping a close eye on it to
see whether there will be any warning signs for a reversal before hitting the
Synergy Zone. If that happens we can use the Pivot Step System to find a trade
entry. Here are the steps needed in order to achieve this.
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9.1. Check the MACD on the 4 hour chart. Is it confirming our suspicions that
the trend will move in the direction we are expecting? (See step 5 if you need a
recap on how the MACD works).

9.2. Check the Moving Averages on the 1 Hour chart. Do they confirm our
suspicions of the direction price is intending to move? (See step 6 if you need a
recap on how this works).

9.3. Can you identify which wave of the Elliot Wave cycle we are on?
Remember that waves three and five are the biggest. This might give you a
clue as to what is about to happen.

9.4. If the confirmations mentioned above are looking strong, and price seems
to be moving away from the Synergy Zone towards the targets you should do
the following. If you have an up trending market, draw resistance lines along
the top of the price bars connecting the two most significant highs.
Alternatively, if you have a down trending market you will be drawing a
support line along the two most significant lows. Below is an example of that
kind of scenario for an up trending market.

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The two most significant high points on the first trend line have been circled in
blue.

9.5. You are looking for a significant break of the trend line in the direction
you are intending to trade. Point A represents the first potential entry into a
trade in this situation. By looking at this and all of the other factors mentioned
you should now decide whether or not to enter the trade. If you are not
confident to enter the trade at this point, move to the next step.

9.6. It is likely that there will be a small pull back after the first break out in this
kind of scenario. If you want to wait for that situation to arise and then plot
your pivot step again when this pull back happens you can. This is further
confirmation of what is unfolding here. This is illustrated below with the
second trend line. Point B marks the next potential entry into the trade.

As you can see we are using multiple levels of confirmation in order to confirm
our intentions to enter a trade here. Hopefully you can see by now that we are
definitely not gamblers its all about strategy.

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Step 10: What if the price moves through the Synergy Zone stop loss level?

If price moves through the Stop Loss level, located at the top of the Synergy
Zone (as shown below), we normally cancel our trading plans for the moment.
When this happens it is likely that price will move in the direction we were not
expecting.

Step 11: What to do if there is no Synergy Zone and Carlos recommends a
Pivot Step Entry

On some days Carlos will see a potential opportunity on the markets even
though there is no Synergy Zone. This requires you to use the Pivot Step
System to find an entry into the trade (if you feel comfortable doing so). There
is video training and case studies on the Pivot Step System in the VIP videos
section available to full members, so we recommend you check those out
when you can. You can also watch the webinar recording available to all
members too. This covers live examples of the Pivot Step System in action.

When this situation occurs you will already know whether it is a BUY or SELL
opportunity from the forecast and you will have targets laid out too. The next
steps are really about finding an entry without having the Synergy Zone to help
you.

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11.1. Find the last two major support points that price is giving us. Then do the
same with resistance points. The example shows how this would look for a
down trending market. Note that resistance points must go upwards from right
to left. Support points must go downwards from right to left.

11.2. Use the trend line drawing tool to draw a line connecting the points you
identified in the last step. That will look something like this. Notice how the
resistance line goes up and the support line goes down when looking from
right to left this will always be the case.

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11.3. Wait until you see a significant break of your trend line in the direction
you are expecting the market to move. This is your entry point shown below.

11.4. Measure the distance between point A and point B. This will form a
triangle. We can now predict that the price will move a similar distance for the
next cycle. This gives us a potential target area before the next big change in
the trend. The example below shows how this scenario played out in real time.
Feel free to look it up on your own MT4 chart and plot the lines (27
th
June 30
min chart).

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For a more in depth look at this please watch the webinar recording in the
members area available to trial members and full members.

Step 12: Stop Loss & Risk Management

When using the Synergy Zone you set your Stop Loss level at the top of the
zone for a SELL set up and at the bottom of the zone for a BUY set up.

When using the Pivot Step System you will need to find your own Stop Loss
level and decide how much risk you can afford to take on. The following steps
will show you how to do that.

12.1. Find the last significant low (in an up trending market) or high (in a down
trending market) on the price chart. This is shown below for a down trending
market.

12.2. Decide how much capital you are willing to risk by literally giving it a
dollar value. This can seem tricky but its really just a case of asking yourself
how much capital you would feel comfortable losing if things didnt work out in
the way you expect. Thats your worst case scenario. This will differ from
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trader to trader depending on account size and confidence in this particular
trade.

12.3. Now measure the distance in pips between your entry point and your last
significant low/high and add another twenty pips to it.

12.4. Now divide the amount of capital you can risk (found in section 12.2) by
the amount of pips (found in section 12.3). This will tell you which contract size
you can trade in this particular case.

Example:

Lets use an up trending market as an example here. You decide you can risk
$150 on a trade without damaging your account or making you feel emotional
about the loss of that capital. You then measure the distance between your
entry point and the last significant low and find theres 47 pips between these
two points. You then add 20 to that number of pips (giving you 67 pips). You
set your Stop Loss 20 pips below the last significant low. You then divide the
capital you can risk by the number of pips like this:

150 / 67 = 2.23

This means you can trade only 2 mini lots so you enter 0.200 as your Stop Loss
when placing your order.

For a more in depth look at this technique in action please check out the Street
Wise Money Management video available to all members in the back office.

Step 13: Managing the trade through the targets

In order to cover ourselves and keep our profits safe whilst we are in a winning
trade there is one more thing we need to do. We need to manage our risk as
price moves. Just follow the steps outlined below to do this:

30 | P a g e
13.1. Watch your confirmations (MACD and Moving Averages) as price is
moving. Also take notice of how the market has been moving previously is it
a strong trend? These things will give you an idea of how likely it is that the
trend is going to continue moving in that direction. Depending on your
confidence level in the trade, take profits after 20 40 pips. Then open a new
trade using half the contract size you were just using and move your Stop Loss
to the breakeven point.

13.2. When price reaches the 1st target look at the MACD and the Moving
Averages and see if price is still looking likely to continue on in the same
direction. If things are looking good you should close the trade you have open
and take profits. Now open a new trade using half of the contract size of the
last trade. Move the stop loss to the breakeven point. This will protect your
profits if the case of a reversal while allowing you to continue trading.

13.3. If the indicators warn us of a possible change in the trend we need to
take profits and get out at this point.

13.4. When price reaches the second target do the same as above.

13.4. When the final target is reached, close the trade.

Final Thoughts . . .

I hope you have enjoyed this guide and have found it useful. There is plenty
more in depth training and case studies available in the VIP Videos section of
the membership which you can access now if you are a full member. The
MACD we use can also be found there as well along with the MACD training
videos. Full members also get access to our Forecast Video Vault which gives
you access to the last few months of Forecast videos from Carlos. There is
enough real life trading knowledge contained in that section to keep any
trading junky happy for a long time.

Our system is all about patience and strategy. That might not seem as
glamorous as some of those flashy forex miracle systems that hit your inbox
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everyday but its the only true way to make long lasting profits trading forex.
Thanks for choosing to trade with ForesightFX.

ForesightFX Trading Checklist

Below is a quick reference guide to help you when youre looking to pull the
trigger on a trade.

1. Plot your trend lines. This should immediately show you where the
important support and resistance points are. Remember, we are looking
for a significant break of the trend line to confirm the markets intention
to move in a specific direction.

2. Check the MACD on the 4H chart. This will give you an early warning of
the momentum price currently has:

- Red crossing blue above the 80 line = Potential SELL opportunity
- Blue crossing red below the 20 line = Potential BUY opportunity

3. Check the Moving Averages on the 1H chart:

- Red crossing blue = Potential SELL opportunity
- Blue crossing red = Potential BUY opportunity

4. If you are not using the Synergy Zone Stop Loss level as calculated by
Carlos (for example if you have a Pivot Step entry) you need to work out
your own Stop Loss level.

5. Now do your money management calculations to work out how much
capital you are willing to risk on this trade.

6. Enter the trade with the appropriate contract size.

7. Take profits after 20 40 pips depending on your confidence in the
trade. Your confidence will depend on the factors mentioned above.

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8. Does the current price movement look set to continue in your direction?
If so, re-enter the trade with half of the contract size and move your
Stop Loss to the breakeven point. This will allow you to continue in the
trade whilst protecting your capital.

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