THE HUMAN COMMUNCATION PRINCIPLES AND THE MARKET

1. Ninety Percent of everything you hear about the market is lies
2. The Market itself cannot lie
3. The Market can only talk about itself

DAILY ROUTINE

DAILY ROUTINE
Enter market at 3:00 am EST (14.00 WIB). Check the charts.
Ask the following questions:
1. Where did the USD close (5pm EST/4am WIB) yesterday against the majors?
2. What effect will today’s economic reports have, if any, on the forex market?
a. FED interest rate movements
b. ECB decisions
c. Unemployment – Weekly Moving Average above or below 400k?
d. Greenspan speaking?
3. Are we at an all time high or low on the EUR or GBP or CHF? Or:
a. Are they way oversold or overbought? Is it better to not trade today?
4. If I make a trade now, what might go wrong? What’s the most I’ll lose? Gain?
Is the market just dead quiet right now? Moving fast?
5. Is the EUR or GBP moving right now? How far are the pairs from support and
resistance?

MY FAVOURITE MARKET INDICATOR

BOLINGER BANDS - BB
Bolinger Bands are formed by 3 lines.The middle line (ML) is usual Moving Average.BB are plotted a certain number of standard deviations away from it. Standard Deviation is measure of volatility, therefore BB adjust themselves to the market conditions. When the markets become more volatile, the bands widen and they contract during less volatile periodes.

ALLIGATOR
Alligator is a combination of 3 Balance Lines (Moving Average)
1.Alligator's Jaws (Blue Line)
2.Alligator's Teeth (Red Line)
3.Alligator's Lips (Green Line)

When the Jaw,Teeth and the Lips are closed, it means Alligator is going to sleep. As it sleep, it gets hungrier and hungrier - the longer it will sleep, the hungrier it will wake up. The first thing it does after it wakes up is to open its mouth. Then the smell of food/price comes to its nostrills, flesh of a Bull or Bear, and the Alligator starts to hunt it.Having eaten enough to feel quite full, the alligator will sleep again. Its time to fix the profit.

FRACTAL
A Fractal is one of 5 indicators of Bill Williams trading system, which allows to detect the bottom or the top.
You should not close your buy transaction, if the fractal is lower than Alligator's Teeth, and you should not close a sell transaction, if the fractal is higher than the Alligator's Teeth.