Forex ; Ross Hook Trading Strategy

Joe Ross has been trading and investing since his first trade at the age of 14, and is a well known Master Trader and Investor. He has survived all the up and downs of the markets because of his adaptable trading style, using a low-risk approach that produces consistent profits. Joe Ross is the creator of the Ross Hook ™ (Rh), and has set new standards for low-risk trading with his concepts of "The Law of Charts™" and the "Traders Trick Entry™" (TTE). Joe Ross has a few preferred trading signals, but we will present here the Ross Hook and the Traders Trick Entry.

Ross hook could be created on charts after:

1. First correction after a 1-2-3 pattern breakout;
2. First correction after a ledge pattern breakout (A ledge consists of a minimum of four price bars. It must have two matching lows and two matching highs. The matching highs must be separated by at least one price bar, and the matching lows must be separated by at least one price bar.);

First correction after a trading range breakout (A Trading Range is similar to a ledge, but must consist of more than ten price bars.).

The definitions are from "Law of Charts" by Joe Ross. This is very useful reading also.

During an uptrend when the market fails to make new high, a Ross Hook is formed. During a downtrend when the market fails to make new low, a Ross Hook is formed. Every directional price move reaches a point of exhaustion and needs new participants to continue. That is why the market takes its breath and at this point a Ross hook occurs. The Ross hook could be identified when the market is trending not when it is in a phase of consolidation. We skip the signal if the market opens with gap beyond the Ross Hook.

With the Traders Trick Entry TTE we try to open position before the other traders. We can make profits in trading only if we take other people's money. We have to learn how we can be one step ahead of the other market players. When Ross Hook, 1-2-3 pattern or other chart formation occurs most of the traders will place their orders at these levels. The Big boys know this very well and often target these order to make easy profits. They move the prices towards the nearest major level and activate the orders around only to reverse the price movement towards the stop losses. TTE is designed for such cases. When we see Ross hook and expect a test of this level we try to open a position early and make a nice profit if the break is successful with good risk/reward ratio. In most of the cases if the break of the Rh is false we can close our position with small profit



Long Position

1. The high of the last period is lower than the high of the previous Ross hook is formed;
2. The price retraces lower and the high of every period is lower than the previous one. The retracement should be 3-5 periods max;
3. We place a buy order above the high of the last period with stop loss below its low;
4. When the long position is opened we place limit order according to our money management rules. We suggest closing part of the position and move the stop loss to break even when the Rh level is reached.

Short Position

1. The low of the last period is higher than the low of the previous Ross hook is formed;
2. The price retraces higher and the low of every period is higher than the previous one. The retracement should be 3-5 periods max;
3. We place a sell order below the low of the last period with stop loss above its high;
4. When the short position is opened we place limit order according to our money management rules. We suggest closing part of the position and move the stop loss to break even when the Rh level is reached.

---- by : Svetlin Minev ------

THE TRADER’S MINDSET

THE TRADER’S MINDSET

You must keep in mind that even with a tested and
profitable system, you could have numerous losses in a row. This is usually referred to as drawdown. Being aware that this can and will even- tually occur can prepare you to control risk and not abandon your trading system when drawdown occurs.

This confidence is an important ingredient in your mindset, one that you must develop in order to be consistently profitable. You are striving for a balanced growth in your trading equity curve over time. When you see that steady balanced growth, you’ll know you’ve developed the mindset necessary to be a trader.
Acquiring the trader’s mindset takes time and experience and generally occurs when you least expect it. Here’s a partial list of the traits you should develop:

■ Sense of calm when trading

■ Ability to focus on the present reality and not how you would like reality to be

■ Disregarding which way the market breaks or moves

■ The feeling that the money is not the point

■ Always looking to improve skills

■ Open-minded, keeping opinions to a minimum

■ Absence of anger

■ Enjoyment of the process

■ Trading one chosen approach or system

■ No need to control or conquer the market

■ No feeling of being victimized by the markets

■ Taking full responsibility for all trading results.

Forex Trading Strategies : DMI and Psar

Directional Movement Index and Parabolic SAR
DMI and Parabolic SAR are very efficient trend indicators and are used often by traders for developing of their strategies. These indicators could be used separately and in combination with other technical studies. The DMI system is plotted by three lines: ADX, +DI and -DI, and could be used for generating of signals or trend filter:

Rising ADX shows that the market has a clear direction and is in a trending mode;

Declining ADX shows that the trend is losing steam or the market is in consolidation phase;
When ADX is above 20-25, the market is in a clear trend.

DMI system generates the following signals:
Rules for long position

1. ADX is above 25 and rising;

2. The Parabolic SAR goes form below to above the chart of the price. The bar when this happens is marked as Signal bar.

3. Long position is initiated when the price breaks 2-3 pips above the high of the Signal bar.

4. After the position is open an initial stop loss order is placed 2-3 pips below the low of the signal bar.

5. A limit order is placed according our Money management rules.
Rules for short position

1. ADX is above 25 and rising;

2. The Parabolic SAR goes form above to below the chart of the price. The bar when this happens is marked as Signal bar..

3. Short position is initiated when the price breaks 2-3 pips below the low of the Signal bar.

4. After the position is open an initial stop loss order is placed 2-3 pips above the high signal bar.

5. A limit order is placed according to our Money management rules.

Indicator chart



----- by ; Svetlin Minev / M.Popov ------

Forex Trading Indicator

Fx Indicator's ; Elliott Wave Oscillator, Juice and MA” -
the currency pair EURUSD (but you can choose any other, the selection of suitable values of stop-loss, profit and trailing stop),
a time-frame - M30 - MetaTrader4

Indicators Forex:
1) Exponential Moving Average EMA (200), applied to a close, the color blue.
2) Exponential Moving Average EMA (50), applied to a close, the color red.
3) Oscillator Elliott Wave Oscillator.
4) indicator of the level of Juice 0,0004.


Open a deal to BUY conclude with the following conditions:

1) Price is above the 2 moving averages EMA (200) and EMA (50), and the trend is upward, as indicated by the intersection of bullish Moving Averages (red above blue)

2) Oscillator Elliott Wave Oscillator crossed its zero line and closed above it.

3) Juice indicator is above its level of 0.0004.

Take-profit set to a value of 100 points from the entrance to the market.

Stop-loss - 20 points, trailing stop just 20 points.


Open a deal to SELL is when the following conditions:

1) Price is below the 2 moving average EMA (200) and EMA (50), while the trend is downward, as indicated by the intersection Moving Averages bearish (red below blue)

2) Oscillator Elliott Wave Oscillator crossed its zero line and closed below it.

3) Juice indicator is above its level of 0.0004.

Take-profit as set on the value of 100 points from the entrance to the market.

Stop-loss, respectively - 20 points, trailing stop - 20 points.

----- by ; ForexStrategies ----