Section 1 : How to use your Daily Intermarket Analysis Forecasts

You subscribed to the Forex Day Trading Forecast to give yourself an edge in trading and above all MAKE PROFITS. Remember, to be profitable in Forex you must accept and limit losses, recognize when you are in a losing position, and DO NOT MARRY YOUR TRADE.

Every evening (approx 7:15 p.m EST) we will be giving you the necessary ammunition to make the best trading decisions for the next 24 hours. Our Forecasts utilize very sophisticated intermarket analysis tools that predict the next day highs and lows. This is how we suggest using this information.

• We highly recommend using a demo account until you become familiar with the forecasts.
• We highly recommend that once a profit or loss is triggered you stay out of that currency pair until the next day forecast. Overtrading with your "gut" is the sroke of death. Accept your losses and rejoice for your profits then walk away from that currency pair.
• Stay away from "Woulda. Shoulda, Coulda, If I hadda" and beating yourself up over missed opportunities. There is money to be made EVERYDAY!
• Exercise proper money management. do not be underfunded for the lot sizes you are trading. 3 - 9% is a safe trading margin
• To not risk more than you can afford to lose, forex is HIGH RISK

Picking the Trade/Trades:

The forecasts you receive will contain the following information on the currency pairs:
(note this info is valid between the Tokyo Open (0:00 GMT 7:00 p.m. EST) till the New York Close (22:00 GMT 5:00 p.m. EST)

• previous daily close
• next day predicted high
• next day predicted low
• predicted next day trend direction
• strength of trend direction
• potential pip spread profit

You also receive the following information:

• heads up news event that could impact decisions
• comments

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How to use this info to enter the trade. This is the 5 minutes or so each night you will take to make your trade.

1) Determine the currency pair/pairs that has the greatest pip potential profit.

2) Use the previous daily close to see how far the currency might have moved and determine if you still want to trade this pair if there has been a spike one way or another. (Can happen with the yen pairs as the Tokyo Markets open)

3) Confirm the strength of the trend with your desired pick. (sometimes there may be a great pip potential but the trend is weakening)

4) Confirm whether or not there is a news event that could influence the currency pair.
Please note that although news events like interest rate decisions and the first Friday of every month NFP's out of the US have great influence we tryy and keep our heads focused on the trend and the fact that the news is always proced into the charts. There is a reason they say "Buy the rumour , Sell the news".

5) Look at the other major currency pairs to see what they will do. It is very rare for instance that all currency pairs go up together. Historically ...

• as the euro/usd goes up, the usd/chf goes down and vice versa.
• when the gbp/usd goes up, the usd/jpy go down and vice versa.
• the movement of the gbp/usd and usd/jpy influence where the gbp/jpy moves
• the movement of the euro/usd and usd/jpy influence where the euro/jpy moves

By noticing any anomlies ( gbp/usd and usd/jpy are predicted to go up yet the gbp/jpy is predicted to go down, this should be a flag) you can avoid bad trades.

The comments we supply every evening will give you a heads up on any anomoly.

Trading Strategy:

As you become more familiar with the nuances of the forecasts you will discover a number of ways to plan your trades.

Once you have determined your pick sometimes it is the best course of action to make your trade right then. Put your stop loss just above or below the predicted high or low depending on if you are going long or short with the currency. This will protect you in the event of some currency catastrophy. Take a profit of about 70% of the predicted pip move.

Do not be greedy. Although the predictions sometimes far exceed their targets, they can also come a little short. The best strategy we have found is to be comfortable with realistic goals. You will achieve them more often. Although you can use these forecast to stay in positions for days on end to ride a trend, we like to cash in every day.

Losing streaks happen but are limited when you don't chase your losses. It is very rare for the forecasts to be 100% wrong for all the currency pairs. Protect your money for the next day if you make the wrong pick and the forecast did not deliver.

Other Stategies

Sample Strategy for a DayTrader... Divide your available trading income among the four majour currency pairs and close out all positions when a desired profit target is hit.

Sample Strategy for a DayTrader... Based on the information you receive on the strength of the move up or down pick one or 2 currencies with the greatest pip spread for the next day and put a take profit at about 75% of the move. Our experience shows that although many times the picks move further it is safest not to be greedy. Also, we have found best results when shorting to try and not hit the pick right on.

Sample Strategy for a Position Trader....You can use the next day high and the next day low to help set entry points and then use predicted next day high and low range on subsequent days to adjust trailing stops. If you are long, and the market is expected to go up you can use a stop loss below the low which can act as a technical support level and prevent you from being kicked out prematurely but can protect you in the case of an unexpected down turn.

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Bonus Items:

Section 2 : How to use your Daily Chart Setup - You do not need to use this to use the forecasts Treat it as another tool.

We have sent you a Profile for the Meta Trader program. It is a folder called Daily Forecasts. Simply place it into your meta trader platform folder in the profiles folder.

To open it, start your meta trader program, click on
file - open - profiles - Daily Forecasts

To manually set up these charts in your chart program of choice, do the following:

1. Set up a daily Chart with Candle Sticks
2. Attach an RSI to the chart with the following Parameters
   period =8
   apply to close
   fixed min - 0
   fixed max 100
   levels 30 and 70
3. Attach a Moving Average Exponential
   period = 8
   apply to First Indicators Data

Once the program is opened you will see a number of tabbed charts for each currency pair.

We like to use these charts as confirmation for our Daily Picks.

You will notice on these charts at the bottom there is a relative strength index and a moving average. Every evening after you have made your pick, check the chart and take notice of the relationship between these two lines. If they are about to cross, this indicates a trend change. If they are moving apart the trend is intact.

As these are daily charts use the next day candle to confirm the direction of the trend.

So remember, whenever the rsi and ma cross look at the candle to determine the direction of the trend. Click on Picture Below to see a blow up of the chart.

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