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Nicola Delic Day Trade Profit Fusion System

Welcome to
Day Trade Profit Fusion System

Day Trade Profit Fusion System is fairly simple, yet still extremely
powerful part of Elliott Wave Theory. After spending years using Elliott
Wave as my only trading strategy, I wanted to share a few patterns that
everyone can find in very short amount of time and make profitable
trades every day. In this manual you are going to learn the technique
behind the Day Trade Profit Fusion System.

It consists of determining a trend and spotting a pullback pattern. Once


you spot the simple A-B-C pullback pattern, you will use Fibonacci
retracement tool to determine your target.

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Nicola Delic Day Trade Profit Fusion System

Components of the system


For Day Trade Profit Fusion System you'll need two tools:

1. Trendlines

2. Fibonacci Retracements

1. Trendlines

A trendline is probably the most basic tool in the technical traders


toolbox. Trendlines are a useful tool for visually highlighting a trend, and
potentially being part of a trading strategy. They are easy to understand
and can be used in combination with any other tools you might already be
using. By definition, a trendline is a line connecting two or more lows or
two or more highs.

Drawing trendlines in MT4 is easy: simply click the Trendline tool icon to
activate the tool and you can start drawing.

By default, the Trendline will be an


infinite line. If you'd like to change
that, double click on your drawn
trendline, right click on it and from
the drop-down menu choose Trendline
Properties. Switch to Parameters tab
and uncheck Ray option. That way
your Trendline will end at the cursor of your mouse when you draw it.

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Nicola Delic Day Trade Profit Fusion System

We want to draw a line connecting either two (or more) swing lows or two
(or more) swing highs. Once we connect peaks with other peaks or
valleys with other valleys, we want to see the line not being broken by
any candle between those two points. Take a look at the examples below.

Example of a trendline drawn incorrectly:

Example of trendline drawn correctly:

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Nicola Delic Day Trade Profit Fusion System

In the first image, you will find that we successfully drew a line
connecting two swing lows. But, between those two points, the price
broke through the line that we drew. This invalidates the trendline.

What we want is what we see in the second image, two swing lows
connected together by a line unbroken by price. This is a valid trendline
that is ready to be projected out into the future.

2. Fibonacci Retracements

Fibonacci retracement lines are based on the Fibonacci Sequence and are
considered a "predictive" technical indicator providing feedback on
possible future exchange rate levels.

The Fibonacci Sequence is a series of numbers that seem to consistently


occur in nature. The discovery of this phenomenon is credited to the 13th
century mathematician, Leonardo Fibonacci.

The method to calculate the sequence is to add any Fibonacci number


together with the number that immediately precedes it in the sequence.

Fibonacci retracement tool can be found on the toolbar of MT4. Click to


activate it and click and drag on your chart to apply it. Connect either
swing low with swing high or swing high with swing low.

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Nicola Delic Day Trade Profit Fusion System

About the system


Day Trade Profit Fusion System is a system that works on M5 and M15
timeframes. It is based on one major trendline, that should have it's start
at the first swing low/high point after the opening of Asian session. Once
you draw the trendline and determine the trend, you need to look for the
pullbacks in a form of a simple A-B-C pattern. Once you spot the pullback
pattern, you can enter the trade and determine your target using
Fibonacci retracement tool.

If the price is above the trendline, you are only looking for
long (buy) trades.

If the price is below the trendline, you are only looking for
short (sell) trades.

You only need to learn one pattern for this strategy:

Uptrend (buy) pattern:

Uptrend pattern rules:

Wave B must hold below starting point of wave A

Wave C must break below starting point of wave A

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Nicola Delic Day Trade Profit Fusion System

Downtrend (sell) pattern:

Downtrend pattern rules:

Wave B must hold above starting point of wave A

Wave C must break above starting point of wave A

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Nicola Delic Day Trade Profit Fusion System

Forex Market Hours

Trading sessions according to GMT (Greenwich Mean Time):

Region City Open (GMT) Close (GMT)


London 8:00 am 5:00 pm
Europe
Frankfurt 7:00 am 4:00 pm
New York 1:00 pm 10:00 pm
America
Chicago 2:00 pm 11:00 pm
Tokyo midnight 9:00 am
Asia
Hong Kong 1:00 am 10:00 am
Sydney 10:00 pm 7:00 am
Pacific
Wellington 10:00 pm 6:00 am

Trading sessions according to EST (Eastern Standard Time):

Region City Open (EST) Close (EST)


London 3:00 am 12:00 noon
Europe
Frankfurt 2:00 am 11:00 am
New York 8:00 am 5:00 pm
America
Chicago 9:00 am 6:00 pm
Tokyo 7:00 pm 4:00 am
Asia
Hong Kong 8:00 pm 5:00 am
Sydney 5:00 pm 2:00 am
Pacific
Wellington 5:00 pm 1:00 am

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Nicola Delic Day Trade Profit Fusion System

Buy Rules
1. Draw the trendline that has its starting point at the first swing low
after the beginning of the Asian Session

2. Buy trades are only valid while the price is above the trendline,
therefore start looking for the pullback patterns (A-B-C)

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Nicola Delic Day Trade Profit Fusion System

3. Once you spot the A-B-C pullback pattern, draw another trendline that
connects the starting point of wave A and ending point of wave B

4. Entry: Enter the trade once the price breaks above the trendline that
is connecting the starting point of wave A and ending point of wave B

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Nicola Delic Day Trade Profit Fusion System

5. Target: Draw Fibonacci retracements from starting point of wave A to


ending point of wave C. Target is the 161.8 Fibonacci retracement level

6. Stop Loss: Stop Loss is placed few pips below the ending point of
wave C

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Nicola Delic Day Trade Profit Fusion System

Sell Rules
1. Draw the trendline that has its starting point at the first swing high
after the beginning of the Asian Session

2. Buy trades are only valid while the price is below the trendline,
therefore start looking for the pullback patterns (A-B-C)

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Nicola Delic Day Trade Profit Fusion System

3. Once you spot the A-B-C pullback pattern, draw another trendline
that connects the starting point of wave A and ending point of wave
B

4. Entry: Enter the trade once the price breaks below the trendline
that is connecting the starting point of wave A and ending point of
wave B

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Nicola Delic Day Trade Profit Fusion System

5. Target: Draw Fibonacci retracements from starting point of wave A


to ending point of wave C. Target is the 161.8 Fibonacci
retracement level

6. Stop Loss: Stop Loss is placed few pips above the ending point of
wave C

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Nicola Delic Day Trade Profit Fusion System

Examples

Buy Trade Example

In this trade, I waited for the first swing low to form after opening of
Asian session. After that, I drew the first, major trendline (1). Since it's
an uptrend trendline and the price was above it, I only focused on
buy/long trades.

After that, I noticed a pullback towards the major trendline in a form of A-


B-C pattern (2). My pattern was as per rules of the system, so I drew the
Entry trendline (3) and started waiting for the price to break above it. As
soon as the price crossed above the entry trendline, I entered the trade
(4). I didn't have to wait for the close of the candle above the Entry
trendline.

I used Fibonacci retracement tool and drew it from the start to the end of
my pattern and got my target at 161.8 level (5). Stop Loss was placed
few pips below the end of the pullback, i.e. below the ending of wave C of
the pattern.

Little bit later, price reached my target and I was taken out of the trade
with full profit.

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Nicola Delic Day Trade Profit Fusion System

Sell Trade Example

In this trade, I waited for the first swing low to form after opening of
Asian session. After that, I drew the first, major trendline (1). Since it's a
downtrend trendline and the price was below it, I only focused on
sell/short trades.

After that, I noticed a pullback towards the major trendline in a form of A-


B-C pattern (2). My pattern was as per rules of the system, so I drew the
Entry trendline (3) and started waiting for the price to break below it. As
soon as the price crossed below the entry trendline, I entered the trade
(4). I didn't have to wait for the close of the candle below the Entry
trendline.

I used Fibonacci retracement tool and drew it from the start to the end of
my pattern and got my target at 161.8 level (5). Stop Loss was placed
few pips above the end of the pullback, i.e. above the ending of wave C of
the pattern.

Price just continued in the same direction, soon reached my target and I
was taken out of the trade with full profit.

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Nicola Delic Day Trade Profit Fusion System

Conclusion

I would like to share a few powerful tips that will help you get the most
out of trading this system and give you the very best results.

It might be different for you and thats all right, but Im sure youre
curious to know the pairs that I trade so here they are: EUR/USD,
GBP/USD, USD/CHF, USD/JPY, AUD/USD, USD/CAD, EUR/JPY and
GBP/JPY.

Tighten your Stop Losses around High Impact News Releases or avoid
trading at least 15 minutes before and after these events.

I have also found that the best results can be achieved on the 5 and 15
minute timeframes.

This system has served me very well and I know that you will enjoy
trading it too. If you can follow the rules and these simple guidelines you
are well on your way to success as a trader.

I wish you the very best in all your trading endeavors.

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