The 2-Day On-Site

2
The 2-Day On-Site
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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,
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RESULTS THAT HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE THE RESULTS
SHOWN IN AN ACTUAL PERFORMANCE RECORD, THESE RESULTS DO NOT
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The 2-Day On-Site
FOREX DISCLAIMER
3
The 2-Day On-Site
The Ultimate Traders Package on
Demand:
The 2-Day On-Site Class
Technical Skills Taught in the UTP
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Trendlines
Trendline breaks
Counter trendline breaks
Reversals – The King’s Crown
Support and resistance (score a point, pull back)
Past support can become future resistance
Past resistance can become future support
The A,B,C,D’s and its boundaries
Fibonacci retracements and extensions
Candlestick formations
Trading ranges
Technical indicators, etc.
1. Trading trendline breaks created either by using the
automated trendline from the FXTURBO or hand
drawing trendlines.
2. Trading candlestick formations in the direction of the
trend with a counter trendline break using the
FXTURBO.
3. Trading the Velocity Fuel Gauge Buy and Sell zones in
the direction of the trend with the FXTURBO.
4. Trading the BUY-BUY STOP and the SELL-SELL STOP.
The 2-Day On-Site
The MTI UTP Strategies
How the Uptrend Price Swing and the
Extension Form
•
It starts with an A low that moves to a B high
then retraces inside an A-B boundary
creating a C low. It then begins to rally above
the B high and ends by forming a new high
at the D extension.
D
B
A-B Boundary
C
A
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The 2-Day On-Site
The Fibonacci Retracements and Extensions in an Uptrend
The Fibonacci Retracements in an Uptrend
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RESISTANCE
RESISTANCE
RESISTANCE
The 2-Day On-Site
The Lines of Resistance
The Fibonacci Extensions in an Uptrend
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The 2-Day On-Site
It is my experience that Fundamental
Announcements exist to fulfill the Fibonacci
sequence more quickly.
The Fibonacci numbers and sequence do not
exist to fulfill the Fundamental
Announcements.
Let us review:
Find the correct up A,B,C,D’s. The down trendline
breaks and starts a new uptrend.
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The 2-Day On-Site
It starts with an A low that moves to a B high. A B High is 2
candles lower to the left and 2 to the right of the B high. It
then retraces inside an A-B boundary which creates a C
low. Then, it begins to rally above the B high and ends by
forming a new D high. The D is when it stops moving,
leaving 2 candles to the left and 2 to the right, both of which
are lower than the D High at or above the corresponding D
extension.
After you adjust your A,B,C,D’s,
your A’s and B’s will never be readjusted.
Only C’s and D’s can be readjusted.
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The 2-Day On-Site
Once the D is confirmed, you can now move your A,B,C,D’s.
A moves to C. B moves to D and you will never move A and
B again. C goes inside the A-B boundary and can be
adjusted. D goes to the corresponding D extension and can
be adjusted. The D ends where it makes a high of 2 to the left
and 2 to the right (at the D or beyond the D, but not before the
D).
Once the D is fulfilled, you can then readjust all of your A,B,C,D’s all over again.
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The 2-Day On-Site
Once the D is fulfilled, you can then readjust all
of your A,B,C,D’s all over again.
How the Downtrend Price Swing and the
Extension Form
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It starts with an A high that moves to a B low. It then retraces inside an A-B boundary,
creating a C high. Then, it begins to dip below the B low and ends by forming a new
low at the D extension. The D extension will be at the corresponding Fibonacci
extension number.
A-B Boundary
Dip
Retracement
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The 2-Day On-Site
Fibonacci Retracements and Extensions in a Downtrend
SUPPORT
SUPPORT
SUPPORT
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d
d
b
b
c
c
a
a
The 2-Day On-Site
Fibonacci Retracements in a Downtrend
Fibonacci Extensions in a Downtrend
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The 2-Day On-Site
When the uptrend line breaks, it takes out the line of support and then
creates a new downtrend.
Sell
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It starts with an A high that moves to a B low.
The B low is the first 2 candles to the left and
right that are above the B low. Then, it retraces
back inside an A-B boundary creating a C high. It
begins to dip below the B low and ends by
forming a new D low. There are 2 candles to the
left and 2 to the right at or below the
corresponding D extension, but not before.
Only C’s and D’s can be readjusted.
The 2-Day On-Site
After you adjust your A,B,C,D’s,
the A’s and B’s will never be readjusted.
Once the D is confirmed, you can move your A,B,C,D’s. A moves to C.
B moves to D. You will never move A and B again. C goes inside the
A-B boundary and can be adjusted. D goes to the corresponding D
extension and can be adjusted, but it ends where it finally makes a low
2 to the left and 2 to the right of the corresponding D extension or
beyond the D, but not before the corresponding D extension.
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The 2-Day On-Site
A,B,C,D’s on larger time frames control the
A,B,C,D’s on smaller time frames.
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D
Larger time frames control the price
movements of smaller time frames.
Smaller time frames respond to the
A,B,C,D,’s of the larger time frames.
Expect u-turns or trend reversals on the
smaller time frames when C’s and D’s are
reached.
B
D
B
C
A
A
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C
B
D
C
B
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•
C
D
B
A
C
These are the A, B, C, D’s
from the larger time frame.
The A,B,C,D waves from
the current time frame
respond to the A,B,C,D’s of
the larger time frame.
The 2-Day On-Site
D
A
A
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The 2-Day On-Site
DRAWING
UPTREND
LINES
Drawing Uptrend Lines
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There are primarily 3 uptrend lines formed in
an uptrend:
- An inner trendline
- An outer trendline
- A long-term trendline
Draw the uptrend lines across the lows of
support, connecting A’s with C’s after new
highs have been formed.
The 2-Day On-Site
Drawing Uptrend Lines
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An inner trendline is drawn connecting the
most recent A and C.
An outer trendline is drawn connecting the
first A with C’s.
The long-term trendline is drawn after
compressing the chart and connecting the
first A with C’s.
Draw the uptrend lines across the lows of
support, connecting A’s with C’s after a new
high has been reached.
d
b
c
a
C
A
A /C
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The 2-Day On-Site
In an uptrend, trendlines are future locations the
market may hit and then bounce up from in the
future. They are future potential levels of support.
The market is currently making
lower lows and lower highs.
 The uptrend line needs to go
beneath the low and through the
candles at the top.
 The uptrend line has been broken.

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Correct:
The line must be drawn across the wick
lows as long as the market is making
higher highs.
C
The 2-Day On-Site

C
A
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The 2-Day On-Site
DRAWING
DOWNTREND
LINES
Drawing Downtrend Lines
The Long-Term
Outer
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There are primarily 3 downtrend lines
formed in a downtrend:
- An inner trendline
- An outer trendline
- A long-term trendline
Draw the downtrend lines across the highs
of resistance, connecting A’s with C’s after
a new low has been made.
Inner
The Long-Term
Outer
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An inner trendline is drawn connecting
the most recent A with C’s.
An outer trendline is drawn connecting
the first A with C’s.
The long-term trendline is drawn after
compressing the chart and connecting
the first A with C’s.
Draw the downtrend lines across the
highs of resistance, connecting A’s with
C’s after a new low has been made.
A

C
Inner
The 2-Day On-Site
Drawing Downtrend Lines
Draw downtrend lines connecting the A’s and C’s, or across the highs of
resistance.
B
Sub-C
D
a
c
b
dD
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The 2-Day On-Site
In a downtrend, trendlines are future locations
where the market may bounce back down. They
are future potential levels of resistance.
•
Why is this incorrect?
You cannot draw a trendline through
the candles.
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
Correct:
Downtrend lines must go across the
wick highs of resistance and extend
outward.
The 2-Day On-Site
Sub-C
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The 2-Day On-Site
DRAWING
COUNTER
UPTREND
LINES
When drawing counter upward
trendlines, go across the highs of the
retracement with a 45-degree
trendline.
 The rule: There needs to be a
minimum of 3 bearish candles of
retracement for a counter uptrend line
to be effective.

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BUY
The 2-Day On-Site
Buy at the break of the counter
uptrend line.
 You should have 75% of a closed
bullish candle on the north side of
the 45-degree counter trendline.
 Once again, you need a minimum
of 3 bearish candles of retracement
to trade a counter trendline.

BUY
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The 2-Day On-Site
DRAWING
COUNTER
DOWNTREND
LINES
When drawing counter downward
trendlines, go across the lows of the
retracement with a 45-degree
trendline.
 The rule: There needs to be a
minimum of 3 bullish candles of
retracement for a counter downtrend
line to be effective.

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SELL
SELL
The 2-Day On-Site
Sell at the break of the counter
downtrend line.
 You need 75% of a closed Bearish
candle to the south of the counter
trendline.
 Once again, you need a minimum of 3
bullish candles of retracement to trade
a counter trendline.

Learning the skill of drawing
30-degree extension trendlines and 45degree counter trendlines
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The 2-Day On-Site
Trader’s Tips
• Keep up with your A,B,C,D’s and sub-a,b,c,d’s.
• Keep in mind that the market moves at different speeds
and creates aggressive trendlines as well as subtle
trendlines between 20 and 80 degrees.
• On retracements, use a 45-degree counter trendline and
use a 30-degree trendline on extensions.
• From experience, when the market breaks the 30-degree
trendline, it has a 90% chance of going the other way
during the active zone.
• When you enter into buying or selling the C, keep up
with the aggressive trendline and immediately draw a 30degree extension trendline.
Selling Tweezer Tops after a retracement
The market needs to go
your way or you need to
get out.
 When 30-degree
extension trendlines are
broken, you need to think
of reversing your position
or getting out because
you can get in trouble in a
real hurry if you stay in.
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30
Extension


Draw 30-degree trendlines on extensions.
Draw 45-degree trendlines on retracements.
The rule: There needs to be a minimum of 3
bearish candles of retracement in an uptrend
for a counter uptrend line to be effective.
Retracement
Retracement
Retracement
Retracement
Extension
Extension
Extension
The 2-Day On-Site

Extension
Extension
Draw 30-degree trendlines on
extensions.
 Draw 45-degree trendlines on
retracements.
 The rule: There needs to be a
minimum of 3 bullish candles of
retracement in a down trend for a
counter downtrend line to be effective.

Extension
Retracement
Retracement
Extension
Retracement
31
The 2-Day On-Site
The King’s Crown Or The Reversal
.
The King’s Crown Or The Reversal
D/A
B
C
D
A
B
C
C
A
B
B
C
D
D/A
.
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D/A
4C
3 B
1
C
5
The 2-Day On-Site
The 1,2,3,4,5 steps of forming the King's
Crown
2B
A
D
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59
D/A
3 B
4 C
1
C
A
5
2 B
1.
Market breaks the uptrend line.
2.
Market returns to support.
3.
Find the B of the up A, B, C, D, which
is the right tip of the potential crown.
4.
Draw a horizontal line from 3 - B to
the projected new down C at a .618
or Fibonacci number. Enter selling 4
- C and project D. Exit 10 pips before D
the market hits D for profit.
5.
After C forms, connect A and C for
the new downtrend line.
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The 2-Day On-Site
The King’s Crown
The King’s Crown
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With the completion of steps 1 - 5, the center tip of the crown
should be the high of the new downtrend. The crown
formation entry teaches you how to get in at the first C or the
first wave of the new downtrend.
The 2-Day On-Site
The Value of Learning the Crown Formation
Becoming A Good Chart Reader Requires
Spatial Intelligence
When the market makes an upside down or inverted
crown, all of the steps are the same, but upside down
and in the opposite direction.
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The 2-Day On-Site
The 1,2,3,4,5 steps of the Downtrend King's
Crown
D Sell Exit
A
2B
C
5
1
3B
4 C Buy Entry
D/A
1.
Market breaks the downtrend line.
2.
Market returns to resistance.
3.
Find the B of the down A, B, C, D, which is the right tip of
the potential crown.
4.
Draw a horizontal line from B - 3 to the projected new C at
a .618 or Fibonacci number. Enter buying 4 - C and
project D. Exit 10 pips before the market hits D for profit.
5.
After C forms, connect A and C for the new uptrend line.
D Sell Exit
A
C
2B
1
3B
5
4 C Buy Entry
D/A
Copyright 2003 by Market Traders Institute, Inc.
36
The 2-Day On-Site
The Downtrend King's Crown
37
The 2-Day On-Site
10 Candlestick Formations
•
Rules for Trading
Candlestick Formations
Trading Candlestick Formations
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I have identified 5 bullish and 5 bearish patterns you need to learn.
Even though these patterns offer great trading signals, it is very important to
note that should you trade these signals on their own merit, they may not be
as strong and you’ll have more of a chance of success if you trade the
bearish formations in a downtrend and bullish formations in an uptrend with
the market bouncing at trendlines. Fibonacci’s past support becomes future
resistance or past resistance becoming future support.
The candlestick formations you want to trade are when the market is
retracing to a deep C.
Trading is a game of probabilities and in order to put the percentages of
success in your favor, you should compile more than one piece of evidence
(probability) that the market will potentially move in the opposite direction
inside the A-B boundary and move in the extension direction right after at
the price level you enter.
In other words, success is increased if you have more than one educated
reason to enter the market. When you have more than one good reason, it
is what we call a convergence. Examples of convergence are on the
following slides.
•
Rules for Trading Bullish
Candlestick Formations
The 2-Day On-Site
5 Bullish Patterns
Important Rules: Candlestick Formations
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Wait until the candle of certainty closes before you enter the market.
Enter at the opening of the next candle if your rules of equity
management allow it.
If scalping, place your protective stop loss 10 pips beyond the
formation.
Figure out the total risk of the trade and place your limit exit orders
for profit on a one-to-one risk-reward ratio for scalping.
If you are trading a C – D extension of the latest A,B,C,D swing,
place your protective stop loss order 10 pips beyond the A of the A-B
swing and your limit 10 pips in front of the corresponding D
extension.
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The 2-Day On-Site
Important Rules
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Once again, it’s imperative to wait until the candle that forms the candlestick formation has
closed before you enter at the opening of the next candle.
It is important to note that all candlestick formations will be tested over 50% of the time. In
other words, on bullish candlestick formations, the bears will attempt to drive prices lower
to see if there is any interest in more sellers coming into the market.
In bearish candlestick formations, the bulls will attempt to drive prices higher to see if there
is any interest in more buyers coming into the market. Both the bulls and the bears put up
one last fight to try and overrule the new pattern.
The strength of the pattern will depend on this test and it will normally be clear after 2 or 3
periods whether the test will hold or fail.
You should always be risk-orientated. Before you enter the market at the opening of the
next candle, look at your risk factor to see if it is in line with your equity management rules.
If your protective stop loss order needs to be too far away from your entry, you can wait for
the potential test of the candlestick pattern and enter the market when prices are closer to
the low or high of the candlestick formation during the test.
Once again, your protective stops when scalping will be 10 pips beyond the candlestick
formation, which will be new levels of support or resistance if the pattern holds.
If you are going from C to D, figure out the total risk of the trade and place your protective
stops beyond the A if your equity management allows and your limit exit orders for profit 10
pips before it hits the corresponding D extension or according to the options in the Trader’s
Checklist.
D
Scalping Candlestick Formations on a 1-to-1 risk-reward ratio.
Exit with a Sell Limit Order
B
Buy at the opening of the next candle
Protective Stop Loss Order
C
A
Bullish Piercing Line
40
D
Exit with a Sell Limit Order
B
Buy at the opening of the
next candle
Bullish Engulfing
A
C
The 2-Day On-Site
Buying candlestick formations at the C then going to the D.
Protective Stop Loss Order
41
The 2-Day On-Site
The Bullish Shooting Star

Buy in the direction of the trend at the opening of
the next candle or when it meets the criteria of
the bullish shooting star.
D
The Bullish Shooting Star
B
Exit with a Sell Limit Order
Buy at the opening of the next candle
Protective Stop Loss Order
A
42
C
•
Buy in the direction of the trend at the opening of the next candle or when
it meets the criteria of the Morning Star.
The 2-Day On-Site
The Morning Star
The Morning Stars
D
B
Exit with a Sell Limit Order
Buy at the opening of the next candle
C
Protective Stop Loss Order
A
43
The 2-Day On-Site
The Bullish Piercing Line
•
Buy in the direction of the trend at the opening of the next candle or when it
meets the criteria of the bullish piercing line.
Close of the bullish
candle must be
beyond a 60% u-turn of
the bearish candle.
The Bullish Piercing Line
D
Exit with a Sell Limit Order
B
Buy at the opening of the next candle
Protective Stop Loss Order
A
44
C
•
After the bullish engulfing candle appears in the direction of the trend,
buy at the market of the opening of the next candle with a protective stop
loss order approximately 10 pips beyond the lows of the wicks.
The 2-Day On-Site
The Engulfing Bullish Candle
The Engulfing Bullish Candle
D
B
Exit with a Sell Limit Order
Buy at the opening of the next
candle
C
Protective Stop Loss Order
A
45
The 2-Day On-Site
The Tweezer Bottom
•
After 2 candles have met the criteria of a Tweezer Bottom, buy at the market
at the opening of the next candle with a protective stop loss order
approximately 10 pips beyond the lows of the wicks.
The Tweezer Bottom
B
D
Exit with a Sell
Limit Order
Buy at the opening of the
next candle
C
A
46
Protective Stop Loss Order
•
Rules for Trading
Bearish Candlestick
Formations
The 2-Day On-Site
5 Bearish Candlestick Formations
47
The 2-Day On-Site
The Bearish Shooting Star
•
Sell in the direction of the trend at the market and at the opening of the
next candle or when it meets the criteria of the Bearish Shooting Star.
The Bearish Shooting Star
A
Ca
Protective Stop Loss Order
c
Sell at the opening of
the next candle
Exit with a Buy Limit
Order
B
b
dD
48
•
Sell in the direction of the trend at the market and at the opening of the
next candle or when it meets the criteria of the Evening Star.
The 2-Day On-Site
The Evening Star
The Evening Star
A
C
Protective Stop Loss Order
Sell at the opening of the next candle
B
Exit with a Buy Limit
Order
D
49
The 2-Day On-Site
The Dark Cloud Cover
•
Sell in the direction of the trend at the market and at the opening of the next
candle or when it meets the criteria of the Dark Cloud Cover formation.
The Dark Cloud Cover
A
Ca
c
Protective Stop Loss Order
Sell at the opening of the next candle
B
b
Exit with a Buy Limit Order
D d
50
•
After the engulfing bearish candle appears in the direction of the trend, sell at
the opening of the next candle with a protective stop loss order approximately
15 pips beyond the highs of the wicks.
The 2-Day On-Site
The Engulfing Bearish Candle
The Engulfing Bearish Candle
A
C
Protective Stop Loss Order
Sell at the opening of the next candle
Exit with a Buy Limit Order
B
D d
51
The 2-Day On-Site
The Tweezer Top
•
After you have 2 candles that have met the criteria of a Tweezer Top, sell at
the market at the opening of the next candle with a protective stop loss order
approximately 15 pips beyond the highs of the wicks
A
C
The Tweezer Top
Protective Stop Loss Order
Sell at the opening of the next candle
Exit with a Buy Limit Order
B
D
52
•
•
•
•
•
•
Trade in the direction of the current trend after the market retraces
back into an A-B or sub a-b boundary, forming a candlestick
formation.
Many times, a candlestick formation will appear at the end of a trend
on a smaller time frame. This is a trendline bounce in the opposite
direction on a larger time frame.
Do not trade candlestick formations in consolidation.
All protective stop loss orders must be 15 pips above the candlestick
formation when selling due to the bid-ask spread and 10 pips below
the candlestick formations when buying as most charts are bid
charts.
If your stop order is too far away from the entry point and does not
meet your equity management requirements -- PASS ON THE
TRADE!
Find another trade that will meet your equity management rules.
The 2-Day On-Site
Trader’s Tips
Trading Candlestick Formations
• Trading Japanese Candlestick formations offers
good risk-to-reward opportunities for traders.
• Candlestick formations are potential turning points.
When traded in the direction of the trend, they have
a high percentage chance of paying off.
• They lend themselves to what is called great equity
management.
• You execute a trade with what is called a tight stop.
That means you are risking very little financially.
• If the trade doesn’t work out, your loss is small.
• Keep your losses small and let your profits run.
53
The 2-Day On-Site
Trading Past Resistance to Become Future
Support
Trading Past Resistance to Become Future Support
d
b
Past resistance becoming future support
B
c
Past resistance
becoming future support
C a
A
54
Buying points
D
The 2-Day On-Site
Trading Past Support to Become Future
Resistance
Past Support Becoming Future Resistance
A
SELLING POINTS
C
SELL
a
c
B
D
b
d
55
The 2-Day On-Site
Daily Trading Ranges
The Daily Trading Range
• As of July 2012, the 4-week, daily trading ranges on the
following currencies are:
– EUR/USD:
121
– GBP/USD:
116
– USD/CHF:
88
– AUD/USD:
96
– NZD/USD:
82
– USD/CAD:
71
– USD/JPY:
48
– EUR/JPY:
126
– GBP/JPY:
125
56
78 pips
Average Daily Trading Ranges
95 pips
121 pips
The 2-Day On-Site
116 pips
60 pips
90 pips
57
The 2-Day On-Site
Active and Dead Zones
Activ
e
Active
60 Minute Chart
Active
Active
Active
Dead
Active
Dead
Dead
Dead
Dead


The active zone is between 2:00 a.m. ET and 12:00 p.m. ET (GMT-4)
The dead zone is between 12:00 p.m. ET and 2:00 a.m. ET (GMT-4)
110
58
Copyright 2003 by Market Traders Institute, Inc.
•
•
•
•
•
•
•
•
•
It is recommended to risk no more than 2.5% of your trading account
balance.
A risk of 5% is considered over-trading your account.
Stops and limits are based on knowing your A,B,C,D’s.
Open a demo account and practice, practice, practice until you understand
and feel comfortable trading the strategies.
Start off with trading mini or micro lots. Build confidence in your strategies
on mini or micro lots. Make your mistakes on mini and micro lots.
Only risk 2.5% of your account in any given trade.
Do not over-trade your account.
When increasing your lot sizes, go from 1 mini lot to 2 mini lots and do not
regress. Then go from 2 to 3 and never regress, etc.
Do not go from 1 mini lot to 5 mini lots or 1 mini lot to 10 mini lots. That is a
recipe for disaster.
After you have mastered a successful technique, increase your lots per
currency and never regress on your lots.
The 2-Day On-Site
Equity Management
Managing Your Risk
100K Lots - $10.00 per pip , 1 currency
$3,000
$5,000
$15,000
$20,000
$25,000
Dollars Risked
$500
$500
$500
$500
$500
% Risk to
Margin
16%
10%
3%
2.5%
2%
In Margin
Mini lots - $1.00 per pip, 1 currency
$1,000
$2,500
$5,000
$10,000
$15,000
Dollars Risked
$50
$50
$50
$50
$50
% Risk to
Margin
5%
2%
1%
.5%
.3%
In Margin
59
The 2-Day On-Site
Trading multiple currencies at one time
100K Lots - $10.00 per pip, 6 currencies, 50 pip stops
In Margin
$15,000
$20,000
$30,000
$75,000
Dollars Risked 6
Lots
$3,000
$3,000
$3,000
$3,000
% Risk to Margin
20%
15%
10%
2.5%
Mini lots - $1.00 per pip, 6 currencies, 50 pip stops
$3,000
$5,000
$10,000
$15,000
Dollars Risked 6
Lots
$300
$300
$300
$300
% Risk to Margin
10%
6%
3%
2%
In Margin
Do Not Over-Trade Your Account.
(Over Trading With Mini Lots)
6 Mini Lots at Once With 50 Pip Stops
$2,000
$3,000
$5,000
$10,000
$15,000
Risk 50 pips 6 lots
$300
$300
$300
$300
$300
% Risk to Margin
15%
12%
6%
3%
2%
1
4
10
27
44
In Margin
# of Losses in a Row
You Can Endure
with a Minimum of
$300 per Lot or
$2,000 in Margin
60
1. Trendline breaks created either by using the
automated trendline from the FXTURBO or handdrawn trendlines.
2. Trading candlestick formations in the direction of
the trend with a counter trendline break with the
FXTURBO.
3. Trading the Velocity Fuel Gauge in the buy and
sell zones in the direction of the trend with the
FXTURBO.
4. The BUY-BUY STOP and the SELL-SELL STOP.
The 2-Day On-Site
MTI’s UTP Strategies
Trading Tips
•
•
•
•
•
•
Find and mark your A,B,C,D’s , sub-a,b,c,d’s and Fibonacci’s on the daily
chart, 2 hour chart, 1 hour chart, and 15 minute chart and readjust them as
needed.
Keep in mind the daily trading ranges of each currency.
When you enter the market, ask yourself, “Am I entering during the active
zone or the dead zone?” The market will move faster in the active zone than
in the dead zone.
When you enter the market, answer the question, “Am I getting involved in
an extension or a retracement?”
Don’t forget that the market moves more pips in less time on an extension
and fewer pips in more time on a retracement.
All these strategies can be used on any time frame. Remember the larger
the time frame, the larger the swings.
61
The 2-Day On-Site
62
Trader’s Tips
•
•
•
•
•
Keep in mind that the market moves at different speeds and creates
aggressive trendlines and subtle trendlines of 20 to 80 degrees.
On retracements, use a 45-degree counter trendline. On extensions,
use a 30-degree trendline during the active zone.
From experience, when the market breaks the 30-degree trendline
during the active zone, it has a 90% chance of going the opposite
direction.
When you enter the market at a C or sub-c extension, draw 2 trendlines
(an aggressive trendline and a 30-degree extension trendline) in the
direction of the trend.
When you enter the market, you will immediately be in the red due to
the bid and ask spreads.
The 2-Day On-Site
THE FXTURBO
THE FXTURBO


The bulls live above the auto trendline.
The bears live below the auto trendline.
The red line monitors
all bearish movement.
Auto Trendline
The green line monitors
all bullish movement.
The Velocity Fuel Gauge
SELL ZONE
BUY ZONE
63
The 2-Day On-Site
Traders Checklist - Strategy #1
 1. Compress the chart and see if you are in an uptrend or downtrend.
 2. Find and mark your A,B,C,D’s , sub-a,b,c,d’s and Fibonacci’s on the daily chart, 2
hour chart, 1 hour chart and 15 minute chart and keep up with them when they need
to be adjusted .
 3. Figure out if you will be entering on a retracement or extension of the recent A,B,C,D.
 4. Look at the time and figure out if you are in the active zone or dead zone. You will be
more effective during the active zone
 5. Count the number of pips your currency has already moved for the day from low to
high or high to low in its daily trading range to make sure you are not entering at the
end of the daily trading range.
 6. Using the FXTURBO, when the blue line crosses the aqua line from the south to the
north and you have 75% of a bullish candle above the blue line, that is a buy signal.
Enter the market.
 7. Using the FXTURBO, when the blue line crosses the aqua line from the north to the
south and you have 75% of a bearish candle below the blue line that is a sell signal.
Enter the market.
 8. Draw your counter trendlines on the retracements once a candlestick formation
appears in the direction of the trend. If you are going long, you may want to wait until
you have 75% of a bullish candle above the blue line. If you are going short you may
want to wait until you have 75% of a bearish candle below the blue line and counter
trendlines have been broken.
 9. If you are entering on an extension, draw a 30-degree angle trendline after you’ve
entered. If you are entering on a retracement, draw a 45-degree angle
retracement line.
 10. Place stops either beyond the candlestick formation or beyond the A on each
currency. As a safeguard monitor the 30-degree trendline, the aggressive trendline
and the blue and aqua lines in FXTURBO.
 11. Exits can be based on several different exit strategies:
 1. Exit at the D extension on the time frame you are trading.
 2. Exit if you are in the black and the candles start to cross the blue line.
 3. Exit if it breaks the aggressive hand-drawn trendline and you are in the
black.
 4. Exit if it starts to break the 30-degree trendline.
 5. Exit near the end of the daily trading range.
 6. Exit when the blue line crosses the aqua line again on the FXTURBO.
64


Sell when the blue line crosses the aqua
line from north to south and the bearish
candle is south of the blue line.
Buy when the blue line crosses the aqua
line from south to north and the candle is
north of the blue line.
SELL
SELL
BUY
BUY
The 2-Day On-Site
Strategy # 1
123
65
The 2-Day On-Site
Traders Checklist - Strategy #2
 1. On the FXTURBO, the bears live below the aqua auto trendline and bulls live
above the aqua auto trendline.
 2. Compress the chart and see if you are in an uptrend or downtrend.
 3. Find your current A/B boundary, your A,B,C,D’s , sub a,b,c,d’s and draw your
Fibonacci’s.
 4. Figure out if the market is retracing or moving toward the extension.
 5. Look at the time and figure out if you are in the active zone or dead zone.
 6. Count the number of pips the currency you are trading has already moved
during that day from low to high or high to low in its daily trading range to avoid
getting in at the end of the daily trading range.
 7. On the 2 hour, 1 hour, 30 minute or 15 minute charts (and preferably during the
active zone) look for bearish candlestick formations if the candles are below the
aqua automated trendline and bullish candlestick formations if the candles are
above the aqua automated trendline.
 8. If you are entering on an extension, draw a 30-degree trendline. If you are entering on
a retracement, draw a 45-degree retracement line.
 9. Place stops 10 pips beyond bid-ask spreads on each currency beyond the candlestick
formations for scalping and beyond the A for day trading which enables the market to
wave.
 10. Exits can be based on several different exit strategies:
 1. Exit at the D extension on the time frame you are trading.
 2. Exit if you are in the black and the candles start to cross the blue line.
 3. Exit if it breaks the aggressive hand-drawn trendline and you are in the
black.
 4. Exit if it starts to break the 30-degree trendline.
 5. Exit near the end of the daily trading range.
 6. Exit when the blue line crosses the aqua line again.
66
Exit the market
Buy bullish
engulfing
A




Buy when a bullish candlestick formation appears and the
market has broken the counter trendline.
Place a 30-degree uptrend line and draw an aggressive uptrend
line.
Do your A,B,C,D’s and Fibonacci's .
Exit the market at either the break of an aggressive uptrend line
or the D extension.
The 2-Day On-Site
Strategy # 2
127
Strategy # 2
15 Minute Chart
120 Minute Chart
Sell Exit
Buy Entry
Morning Star Buy Signal
Buy signal on the 120 minute time frame.
Buy crossover on 15 minute time frame.
128
67
The 2-Day On-Site
Trader’s Checklist - Strategy #3
Strategy #3 can be a stand alone strategy or a combination of the previous 2 strategies. You will see
as I start to explain.
 1. On the 2 hour, 1 hour, 30 minute or 15 minute charts, the bears live below the
aqua auto trendline and bulls live above the auto aqua trendline.
 2. Compress the chart and see if you are in an uptrend or downtrend.
 3. Find your current A/B boundary, your A,B,C,D’s, sub a,b,c,d’s and draw your
Fibonacci’s. The 60 and 120 minute charts work best with this strategy.
 4. Figure out if the market is retracing or moving on an extension.
 5. Look at the time and figure out if you are in the active zone or dead zone.
 6. Count the number of pips your currency has already moved for the day from low
to high or high to low in its daily trading range to avoid getting in at the end of the
daily trading range.
 7. During the active zone, look for bearish candlestick formations if the candles are
below the aqua automated trendline and bullish candlestick formations if the
candles are above the aqua automated trendline.
 8. Look at the velocity fuel gauge to see if it is entering or getting ready to exit
either the buy or sell zones.
 9. If the velocity fuel gauge is either entering or exiting the sell zone, the trend
should be down and the market should be retracing back up. You should be
looking for the market to be forming a bearish candlestick formation and
breaking the counter downward trendline when the velocity fuel gauge is leaving
the sell zone.
 10. If the velocity fuel gauge is either entering or exiting the buy zone, the trend
should be up and the market should be retracing back down. You should be
looking for the market to be forming a bullish candlestick formation and breaking
the counter uptrend line when the velocity fuel gauge is leaving the buy zone.
 11. Once the market begins to leave the buy or sell zone and the counter trendline
begins to break, look for corresponding candlestick formations appearing to
support your decision to enter the market. Enter your currency in the direction
of the trend and when a candlestick gets on the north side of the blue line for
buying and south of the blue line for selling.
 12. You should be entering on an extension. After you enter the market, draw a 30degree trendline and keep up with an aggressive trendline. If you are entering on
a retracement, draw a 45-degree retracement line.
 13. Place stops 10 pips beyond bid/ask spreads on each currency beyond the
candlestick formations for scalping and beyond the A if you are trading the
A,B,C,D’s.
 14. Exits can be based on several different exit strategies.
 1. Exit at the D extension on the time frame you are trading.
 2. Exit if you are in the black and the candles start to cross the blue line.
 3. Exit if it breaks the aggressive hand-drawn trendline and you are in the black.
 4. Exit if it starts to break the 30-degree trendline.
 5. Exit near the end of the daily trading range.
 6. Exit when the blue line crosses the aqua line again.
68
SELL
SELL
SELL
BUY
SELL
BUY
BUY
SELL
The 2-Day On-Site
Strategy # 3
SELL ZONE
BUY ZONE
SELL EXIT
Strategy # 3
Enter buying the Engulfing
Bearish.
Stop loss beyond A
SELL ZONE
BUY ZONE
Enter as the
market is leaving
the buy zone.
69
The 2-Day On-Site
Strategy # 3

When the velocity
fuel gauge enters the
buy zone on a larger
time frame, use a 15
minute chart and buy
when the candles
move above the
aqua trendline and
the velocity fuel
gauge leaves the buy
zone.
SELL ZONE
BUY ZONE
70
120 Minute Chart
15 Minute Chart
Wait for a crossover to the north before
entering
The BUY-BUY-STOP
and
The SELL-SELL-STOP
On time frames of
2 hours, 1 hour, 30 minutes and 15 minutes
The 2-Day On-Site
Trading Strategy #4
71
The 2-Day On-Site
Trading Strategy #4
The UPTREND
The BUY-BUY-STOP
On time frames of
2 hours, 1 hour, 30 minutes and 15 minutes
You have a confirmed upswing with a high and a low
High
High: Two candles to the
left and two to the right
that are lower than the
wick high.
Low: Two candles to the
left and two to the right that
are higher than the wick
low.
Low
72
B
The 2-Day On-Site
Find the up A-B boundary.
A
D
B
C
Spread the Fibs to anticipate the up
A,B,C,D’s and mark the D.
A
73
The 2-Day On-Site
D
If the uptrend stays in place, the market will
make a higher low and either bounce back
up at a shallow C or…
B
C – shallow C bounce at .382 or less
A
D
B
C
A
74
…bounce back up at a deep C
retracement at the .50 - .618 - .786
or .86.
The trader does not know where the C
retracement bounce back up is going to be.
B
C?
The 2-Day On-Site
D
C?
A
D
Place a Buy order 10 pips above the B high plus the spread.
B
C
As the market starts to retrace back
down into the A-B boundary and you
have 2 candles to the left and 2
candles to the right that are lower
than the old D high (now the new B),
place a buy order 10 pips above the B
high plus the spread before it gets to
the .382 in anticipation of a shallow C
retracement and .382 bounce back up
followed by a rapid rally to the 1.618
D Extension.
A
75
The 2-Day On-Site
D
Limit Order: 10 pips before the 1.618 D
extension
Place a buy order 10 pips
above the B high plus the
spread
B
If the market takes you in 10
pips above the B high, place
your stop order 10 pips below
the C bounce/ u-turn and place
your limit order 10 pips before it
hits the D extension at the 1.618
or before the bulls score a point.
Follow your pre-trade checklist.
C
Stop Order: 10
pips below the
u-turn bounce
A
Equity Management
D
Limit Order- 10 pips before the 1.618 D
extension
Reward: 52 pips
108% Return
Buy Order
B
Risk: 48 pips
100%
C
100 pip
swing
A
76
Stop Order: 10
pips below the
u-turn bounce
Limit Order: 10 pips before the
corresponding extension
B
A
Place a buy order 10 pips above the B
high plus the spread
If the market dips and penetrates the
.382 with a closed bearish candle,
cancel the buy above the B high.
Then, look to buy a deep C bullish
candlestick formation retracement
and the breaking of the counter
uptrend line with a stop order below
the A, if you are going to the D
Extension. If going 1 for 1 place stop
C
10 pips below the candlestick
Buy at market
formation. Follow your pre-trade
checklist for the correct extensions
and limit orders.
Stop Order: 10 pips below the A
The 2-Day On-Site
D
You can trade 2 lots at a deep C exiting one
lot on a 1 to 1 Risk reward and the second lot
10 pips before the corresponding D with its
stop 10 pips below the A.
77
The 2-Day On-Site
Stop Order: 10 pips above A
A
Sell at market
C
B
If the market bounces down at the .382
then u-turns back up at or before it hits the
B low and rallies to penetrate the .382,
cancel the B low order and look to sell a
deep C bearish candlestick formation after
the retracement and the breaking of the
counter down trendline with a stop order
above the A. Exit 10 pips before it hits the
corresponding D extension with a stop 10
pips above the A. Follow your pre-trade
checklist for the correct extensions and
limit orders..
Place a sell order 10 pips below the B low
Limit Order: 10 pips before the extension
D
D
Limit Order: 10 pips before the
corresponding extension
Place a buy order 10 pips above the B
high plus the spread
B
C
Buy at Market
A
78
If the market bounces up at the .382
then does a u-turn back down at or
before it hits the B high and dips and
penetrates the .382, cancel the B
high order and look to buy a deep C
bullish candlestick formation
retracement and the breaking of the
counter uptrend line, with a stop
order below the A. Follow your pretrade checklist for the correct
extensions and limit orders.
Stop Order: 10 pips below the A
The Downtrend
The SELL-SELL-STOP
On time frames of
2 hour, 1 hour, 30 minutes and 15 minutes
The 2-Day On-Site
Trading Strategy 4
You have a confirmed downswing with a high and a low.
High
High: Two candles to
the left and two to the
right that are lower
than the wick high.
Low
Low: Two candles to
the left and two to the
right that are higher
than the wick low.
79
The 2-Day On-Site
Find the down A-B boundary.
A
B
Spread the Fibs to anticipate the down A,B,C,D’s and mark the D.
A
C
B
D
80
C : Shallow C bounce at .382 or less
B
If the downtrend stays in place, the market will
make a lower high and either bounce back down at
a shallow C or…
The 2-Day On-Site
A
D
A
C
…bounce back down at a deep C
retracement at the .50 - .618 - .786 or .86.
B
D
81
The 2-Day On-Site
A
C?
C?
B
The trader does not know where the C
retracement bounce back down is going to be.
D
A
C
B
As the market starts to retrace back up
into the A-B boundary and you have a
confirmed low with 2 candles to the left
and 2 candles to the right at the old D
(the new B low) and before it gets to
the .382, place a sell order 10 pips
below the B low in anticipation of a
shallow C retracement - .382 bounce
back down followed by a rapid dip to
the 1.618 D extension.
Place a sell order 10 pips below the B low.
D
82
Stop Order: 10
pips above the
u-turn bounce
If the market takes you in 10 pips
below the B low, place your stop
order 10 pips above the C bounce
u-turn and place your limit order 10
pips before it hits the D extension at
the 1.618 or before the bears score
a point.
Follow your pre-trade checklist.
C
B
Place a sell order 10 pips below the B low.
The 2-Day On-Site
A
Limit Order: 10 pips before the extension
D
Equity Management
A
Stop Order: 10
pips above the
u-turn bounce
100 pip swing
C
RISK 48 pips
100%
B
Sell Order
REWARD 52 pips
108% Return
D
Limit Order: 10 pips before the extension
83
The 2-Day On-Site
A
Stop Order: 10 pips above A
Sell at market
C
If the market rallies and penetrates the .382
with a closed bullish candle, cancel the sell
order below the B. Then, look to sell a deep C
bearish candlestick formation and the breaking
of the counter down trendline during the
retracement with a stop order above the A with
your limit order 10 pips before it hits the
corresponding D. If you are scalping one for
one, place stop 10 pips below the candlestick
formation.
Follow your pre-trade checklist for the correct
extensions and limit orders.
B
Place a sell order 10 pips below the
B low
Limit Order: 10 pips before the extension
D
Stop Order: 10 pips above A
A
Sell at market
C
B
If the market bounces down at the .382 then uturns back up at or before it hits the B low and
rallies to penetrate the .382, cancel the B low
order and look to sell a deep C bearish
candlestick formation after the retracement and
the breaking of the counter down trendline with a
stop order above the A. Exit 10 pips before it
hits the corresponding D extension. Follow your
pre-trade checklist for the correct extensions and
limit orders..
Place a sell order 10 pips below the B low
Limit Order: 10 pips before the extension
D
84
“A Brand You Can Trust”
The 2-Day On-Site
Market Traders Institute
It Is Not Just A Forex Education…
It Is A Belief!
85
86
The 2-Day On-Site
Trading foreign exchange on margin carries a high level of risk, and may not be suitable
for all investors. Past performance is not indicative of future results. 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.
Any statements regarding income, whether expressed or implied, do NOT represent a
guarantee. No representation is being made that any account will or is likely to achieve
profits or losses similar to those shown. Any opinions, news, research, analysis, prices,
or other information contained in this e-mail or promotional material is provided as
general market commentary, for educational purposes only, and does not constitute
investment advice or a solicitation to buy or sell any Forex contract or securities of any
type. MTI will not accept liability for any loss or damage, including without limitation
any loss of profit, which may arise directly or indirectly from use of or reliance on such
information.
THESE RESULTS ARE BASED ON SIMULATED OR HYPOTHETICAL PERFORMANCE
RESULTS THAT HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE THE RESULTS
SHOWN IN AN ACTUAL PERFORMANCE RECORD, THESE RESULTS DO NOT
REPRESENT ACTUAL TRADING. ALSO, BECAUSE THESE TRADES HAVE NOT
ACTUALLY BEEN EXECUTED, THESE RESULTS MAY HAVE UNDER-OR OVERCOMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH
AS LACK OF LIQUIDITY. SIMULATED OR HYPOTHETICAL 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 PROFITS OR LOSSES SIMILAR
TO THESE BEING SHOWN.
The information as presented is based on simulated trading using systems and education
developed exclusively by MTI. Please note that simulated trading results may or may
not have been back-tested for accuracy and that spreads/commissions are not taken
into account when preparing hypothetical results.
Pips captured represent net or overall pips for the trading period indicated. All results
are based on simulated trading and are not live trading accounts.
Please read the General Disclaimer and the Risk Disclaimer located on MTI’s website
at http://www.markettraders.com/about-fx-company/general-disclaimer/ and at http://
www.markettraders.com/forex-risk-disclaimer for more information.
The 2-Day On-Site
FOREX DISCLAIMER
87