SimpleFX Trading Tool: as Easy as 1-2-3

Picture of camera pointing at you with the heading ‘The Picture-Perfect Forex Trade.’

SimpleFX Trading Tool: as Easy as 1-2-3

Hi friend! This blog post reveals for the very first time an amazing tool that simplifies forex trading. It can also be used for the other markets – any asset class, as a matter of fact.

I discovered it quite by chance, and have been enthralled by its accuracy and its ease of use. 

Don’t click away too soon, as you are about to be dazzled by this revolutionary tool that will have you wishing you had had it all along.

It’s as easy to use as 1-2-3.  You will be truly stunned and amazed.  Promise.  I know I was when I first saw it in action.  My jaw dropped.

NB:  If after reading through this blog post, you would like to use the tool referenced throughout this blog post, please let me know here.

And, if you would like us to do your forex trading for you, use the same link to get my attention.

You might be too busy to do your own trading, so that option might appeal to you.

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Forex Trading Tip

One of the most important considerations in trading the forex, or for that matter any other market, is the notion of trend.  As the saying goes, “The trend is your friend.”

If you want to know what the trend is for any chart you are looking at, just plot the 200 EMA, and Bob’s your uncle.

A while back, a survey was taken of traders who were asked, of the 99 indicators available to traders, which one was the most important.  The overwhelming response was the 200 EMA.

You can even go one step further, and plot a 50 EMA.  It depicts a closer-in trend, which signals either a Golden Cross (bullish) or a Death Cross (bearish), when it intersects the 200 EMA up or down.

Once you know what the overall trend is, you can change these EMAs to 5 and 21 to get a better handle on trend in the moment.

A cross of these two EMAs (Golden Cross or Death Cross) is a powerful buy or sell signal.

All four EMAs apply equally as well to the other markets as well.

Table of Contents:

Forex Trading Tip
Announcing SimpleFX
SimpleFX Back Story
SimpleFX Straight Skinny
Versatile SimpleFX Tool
SimpleFX Uniqueness
Patience in Using SimpleFX
SimpleFX Risk Management
SimpleFX Rules
SimpleFX Trade Examples
SimpleFX NFP News
SimpleFX Resistance
Major U.S. Currency Pairs
Most Active Cross Pairs
Inspiration and Quotes
Kudos
Definitions
References
Conclusion

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Announcing SimpleFX

This is for you…

  1. If you want a simple and straight-forward way of trading the forex, or any other market.
  2. If you have difficulties making trading decisions.
  3. If you struggle with knowing where to get into a trade, and where to get out, knowing beforehand what your profit potential is.

If you have been trading the forex (or other market), you probably know how much of a challenge it can be to engineer trades.

Where to get in, where to get out, and what is the profit potential for the trade?

You may even be using a myriad of indicators.  It’s called ‘Indicator Fascination.’

And, you may be following a strategy of your own making or from some so-called guru.

How has that been going for you?  Not great, I’ll bet.

I am sure you have had your ups and downs (we all have), and I’m sure you have been wishing all along that there was a simpler and less stressful way of trading the forex (or any other market, for that matter).

Well, there is, and here it is…

But first, permit me to let you know how I came upon the tool I am about to reveal to you for the very first time.

SimpleFX Back Story

I first Met Lennox Chambers early in 2017 at a seminar that was totally unrelated to trading.

We somehow got into a discussion on trading.  As it turned out, he was trading options, and I the forex (and stocks).

He seemed intrigued at the profit potential of trading the forex.

One thing led to another and, before I knew it, I found myself over at his place showing him the forex ropes.

He showed me a calculator he had created that could predict where price would go by simply inputting two variables into it, and pressing the ‘CALC’ button on the calculator (green or red arrows on another version of the calculator).

I must say I was sceptical at first, as I have been in this business for a very long time – since the earth cooled, or so it seems.

But, I hung in there, and kept listening, and watching.

He applied his calculator to a particular pair to show me how the calculator performs its magic.

Lo and behold, the price projection was met bang on.

By simply inputting two variables, and pressing ‘Calc,’ the calculator spit out three potential price levels where price would ‘reach to.’

Any one of them is a valid choice, although the one in the middle is preferred, according to Lennox.

Well, who could have guessed?

Price did in fact reach the middle price target, almost to the penny.

I was speechless.

The rest is history. 

Since that fateful meeting, I have tested the calculator on pair after pair and a myriad of stocks, only to be absolutely stunned and amazed time and again.

Lennox and I meet on a regular basis to go through all 28 forex pairs, and compare notes, looking for trade set-ups, using his approach and calculator.

What amazes me most is how successful he has been trading the forex in such a short period of time – results I have NEVER seen before.

He jumped right into the forex, taking an initial US$5,000 account, and ramping it up to US$30,000 in one month (even much higher, as I write this).

Needless to say, he is giddy.  And, I am gobsmacked.

He says he could never achieve the same results trading options, which he has done for years – very profitably so, I might add.

Music to my ears.

I now even use Lennox’s approach and calculator to trade stocks with incredible results.

My stock trading has been completely revolutionized in the process – and, it has become a lot less complicated and a whole lot easier.

As with the forex, I now only look for one thing – the pattern that his tool works off of.

More on that later.

Why hadn’t I met Lennox earlier?

Where was he when I needed him?

But, it’s never too late.

And now, I am about to reveal the straight skinny to you for the very first time.

So, strap in, and listen up closely my friend.

You are in for one heckuva ride.

SimpleFX Straight Skinny

Picture of chart with 1-2-3 bottom and explanation.

I hate to disappoint you my friend, but there is nothing complicated whatsoever in what you are about to learn.

I call it the ‘Big Reveal.’

And, get this, there is only one thing you have to look for.

That’s right… just one.

Nothing more complicated than that.

And, what’s that one thing?

It’s called a ‘Price Exhaustion,’ ‘Price Rejection,’ or ‘Price Reversal’ swing point.

In layman’s terms, it’s as simple as 1-2-3.

What I am talking about here are ‘1-2-3 Tops’ and ‘1-2-3 Bottoms’ – nothing else.

Have a look at the diagrams below to see what I mean.

What we are looking for is a downtrending situation or an up-trending situation to be reversed by the formation of a ‘1-2-3 bottom’ or a ‘1-2-3 top.’

The number one and number two points are simply inputted into Lennox’s calculator and, once the ‘CALC’ button is depressed, out spits three possible destination points for price’s arrival to choose from.

Any one will do, but the one in the middle is the preferred choice, according to Lennox.

Before I carry on, please study the diagrams below thoroughly, and then join me on the other side.

Picture of chart with 1-2-3 bottom and narrative bottom right.

A 1-2-3 formation looks like a ‘W in a down-trending market

 

Drawing of what a 1-2-3 top looks like.

 

And, a 1-2-3 formation looks like an ‘M’ in an up-trending market

 

Drawing of what a 1-2-3 top looks like.

 

In Sum… here is what they look like side by each:

 

Drawings of 1-2-3 top and 1-2-3 bottom.

 

A 1-2-3 should look like a sloppy ‘W’ or a sloppy ‘M’ – a W at the bottom of a down-trending market and an M at the top of an up-trending market.

No extremes please

  • You should feel comfortable that a 1-2-3 formation looks reasonable.
  • It should not have any wild price fluctuations.

In other words, the distance between the bottom (or top) and the no. 2 point should not be unreasonable.

The Mechanics:

  • Let’s focus on an up-trending situation to keep things simple.
  • Scan through all the pairs on your forex trading platform, looking for pairs where the overall trend is UP!
  • Look at all the charts top-down, starting at the higher level (monthly), working your way all the way down to the 1 hour chart (stopping there). The 1 hour is the best place to trade (or the 4 hour).
  • By overall trend, I mean that the 200 EMA is trending up, and the 50 EMA is above the 200 EMA, with good angle and separation between the two.
  • Look for a recent 1-2-3 pattern – having just completely formed.
  • The #3 point must be firmly in place, as confirmed by subsequent price action being higher than the low of the #3 point. It does not have to be the lowest swing point after the #1 point.
  • Select the BULL sign over the left of the WaveCalc calculator, as we are only focussing on an up-trending situation in this instance (although the calculator will also work in a down-trending situation, in which case you would select the BEAR button).
  • Plug the low of the #1 point and the high of the #2 point into the WaveCalc program, and then click the CALC button (or green or red arrow, depending on which version of the WaveCalc calculator you end up using).
  • You are then presented with three strike prices at the #3 level on the calculator window.
  • Generally speaking, the middle number is perhaps the best number to work with (according to Lennox), in terms of where price will eventually arrive. We don’t usually target price beyond that point.

That’s all there is to it… easy peasy!  Enjoy!

Read on for more details.  Examples are coming up a little bit later in this blog post.

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Versatile SimpleFX Tool

Please note the the Wave Calc calculator can be used in both ‘UP’ and ‘DOWN’ markets.  Up to this point, I have focussed on an up-trending situation, using the ‘Bullish’ side of the calculator over to the left – in which case, the ‘Bull Button’ is engaged.  For down-trending situations, you would engage the ‘Bear Button.’

Images of both sides of the WaveCalc calculator – bullish and bearish.

SimpleFX Uniqueness

Picture of a note with a question about WaveCalc – “What makes it so unique?”

All traders want to know is where to get into a trade, how long to hold it, where to close it, and what the profit potential is?

Granted there are a myriad of strategies available to traders, but they’re all based on the trader having to make educated guesses as to how to address those variables through technical analysis.

What the Wave Calc program offers that is so totally unique is the fact that it has been mathematically programmed (by Lennox) to accurately predict where price will ‘reach to’ upon the successful completion of a 1-2-3 formation.

You simply enter the no. 1 and no. 2 extremities into the calculator, hit the calculate button (green arrow or red arrow or ‘CALC,’ depending on which version of the calculator you re using),  and you are presented with three possible price target levels – the one in the middle preferred.

A very effective strategy, if you aren’t able to babysit your trade, is to put in a buy stop order five pips above the number 2 point (in an up-trending situation) with a 30-pip stop loss below the entry point, and a ‘take profit’ exit price, which can be any one of the three exit numbers offered up by the calculator – again, middle number preferred.

If you re working with a down-trending situation, you would do everything in reverse – sell stop below the number 2 point, 30-pip stop loss above that point, and your jumping off point.

So, you set it, and forget it… and then go about your business.  That’s all there is to it.

Of course, you can always go in ‘At Market’ any time after the number 3 point of the 1-2-3 pattern is firmly in place.

Patience in Using SimpleFX

Picture of a pedestrian crossing caution light with the word ‘Patience’ underneath it.

As the saying goes, “Patience is a virtue.”

Never force a trade.  Wait until you see a bona fide set-up based on the 1-2-3 paradigm that the Wave Calc program works off of.

After you go through all the pairs on your forex trading platform, you will more than likely end up with a handful of pairs that meet the criteria spelled out earlier.

Wait for a 1-2-3 pattern to be solidly in place, before committing to a trade – and do then so with a buy stop (or at market), a target price, and a stop loss.

SimpleFX Risk Management

Picture of Scrabble with RISK letters spelled out.

The beauty of using the Wave Calc program is you know what the exit point(s) are before engaging a trade.

That knowledge, plus knowing where you are going to put your stop, gives you the risk/reward ratio.

If the reward (potential trade profit) is not sufficient in relation to the stop placement, then you may wish to pass on the trade, and go find another pair that has a 1-2-3 formation and better metrics.

SimpleFX Rules

Picture of hands up in the air around the words ‘The Rules.’

  1. Register to trade at a true ECN/STP forex broker like Tallinex. You can do so on this site (via the pop-up or the sign-up box in the side column of the site).  Such a broker charges you a commission per trade, instead of using wide spreads, trading against you, and gunning your stops.  Market maker brokers do all of those things, except for charging a commission.
  2. Bring up your charts.
  3. Plot 50 EMA, 200 EMA, MACD.
  4. Do your homework. Scan through the major U.S. dollar currency pairs and most actively traded cross pairs on your platform (listed below).  Look at each pair top-down, starting at the monthly level.  Look for up-trending situations (or down-trending, if you are contemplating going short).  Look for a newly formed 1-2-3 bottom in place on the timeframe you wish to trade (daily for a position trade, 15 minute, 1 hour, 4 hour charts for day trades – executing off the 5 minute for best entry with limited risk).  That said, it’s best to trade off the 1 hour chart.
  5. Interrogate the 5 minute and 15 minute charts for evidence of a 1-2-3 top that would give you pause before entering the trade.
  6. Best to bracket the trade – buy stop (BID > or = Stop) 5 pips above the no. 2 point, with stop 30 pips below, and take profit at the no. 3 point (middle number) on the Wave Calc program. Going in at market may incur slippage (draw-down).  It’s best to let the market take you in (using a buy stop), by letting the market prove to you that price is going in your direction (i.e. your buy stop engaged).  By bracketing the trade, you can put the order in, and just let the trade come to fruition, if it is going to execute at all.  That way, you don’t have to babysit the trade, waiting for something to happen.  If you go in at market, do so after the no. 3 pt. is firmly in place, picking your entry pt. on the 5 minute chart, based on a Golden Cross of the 50 EMA penetrating the 200 EMA (punching up through it).
  7. The no. 3 point is achieved by entering the no. 1 low pt. as the Start and the no. 2 high pt. as the End. Hit the green arrow (or CALC button), and Bob’s your uncle.
  8. Before entering a trade, make sure to be aware of any impending news that might sway price action. Case in point… June 8/17, I was about ready to enter a trade at market on the GBP/USD pair.  I knew there was voting underway for the Prime Minister’s position.  I hesitated.  Sure enough, the Conservative party did not get a majority, and the pound plunged.  Lucky me.    Smart!
  9. Patience is a virtue. Never force a trade.  Wait till you see a bona fide 1-2-3 bottom already formed and in place.
  10. Best times to trade are definitely the London open (~3 am ET) and the London close (~11:30 am ET). Beyond those times, other good ones are ~8 am ET(NY open), 8:30 am ET (the news hour), ~4 pm ET (NY close), ~7 pm ET (Tokyo open), and ~9 pm ET (Hong Kong/Singapore open).
  11. The Wave Calc program can be used for any market (including options). Regarding the forex, it can be used for any of the currency pairs – even beyond the ones listed in the tables below.
  12. NB: The Wave Calc program can be used for both up-trending or down-trending situations (i.e., looking to go long or short).  My comments above focus on a pair in an up-trend, because it is just plain easier to explain its use to newbies for a long trade than a short trade, given novice traders may not immediately grasp how a short trade works.
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SimpleFX Trade Examples

Picture of dart board with heading ‘Right on Target’ above it.

GBPUSD chart with 1-2-3 bottom, price projection, WaveCalc calculator, & image of 1-2-3 bottom.

(chart image via https://www.dukascopy.com/)

Picture of animated price action and 1-2-3 bottom in an uptrend with descriptive header.

(chart image via https://www.dukascopy.com/)

EURCAD chart with 1-2-3 bottom, price projection, WaveCalc calculator, & Golden Cross.

(chart image via https://www.dukascopy.com/)

Picture of world news graphic on globe background.

USDJPY chart with 1-2-3 bottom and reaction of price to NFP news.

(chart image via https://www.dukascopy.com/)

SimpleFX NFP News

Picture of hands up in the air around the statement ‘Watch out for resistance’ in between.

While we’re on the subject of 1-2-3s, I thought I would point out the powerful combo of such a pattern and NFP news (Non-Farm Payroll report). 

It usually comes out at 8:30 am ET the first Friday of each month.

You can see in the chart below (USD/JPY) that on Friday, Aug. 4/17, we had a 1-2-3 bottom in place immediately before the NFP announcement broke.

In effect, the 1-2-3 bottom foretold an impending rise in price.  NFP just added fuel to the fire.

So, in anticipation of that date every month, see if you can spot a 1-2-3 just before 8:30 am ET (Friday) on any of the charts for pairs marrying up USD with another currency – be it USD/CAD, USD/CHF, USD/JPY, EUR/USD, or GBP/USD.

That might give you a leg up on what’s about to happen when NFP comes out.

For further considerations regarding the impact of news on forex trading, please consult my blog post on that topic: Trading Forex News

EURAUD chart showing resistance, death cross, and subsequent swoon in price.

(chart image via https://www.dukascopy.com/)

SimpleFX Resistance

Picture of motivational quote about what to do in 2017.

AUDCAD chart showing major resistance on 1 hr. chart impeding price advance.

(chart image via https://www.dukascopy.com/)

EURAUD chart showing resistance, death cross, and subsequent swoon in price.

(chart image via https://www.dukascopy.com/)

Major U.S. Currency Pairs

EUR/USD
USD/JPY
GBP/USD
USD/CHF
USD/CAD
AUD/USD
NZD/USD

Most Active Cross Pairs

EUR/CHF
EUR/GBP
EUR/JPY
GBP/JPY
AUD/JPY
NZD/JPY

Inspiration and Quotes

Picture of motivational quote about what to do in 2017.

“Nothing worthwhile is easy.”  John Sinunu, is a Cuban-born American politician, who served as the 75th Governor of New Hampshire and later White House Chief of Staff under President George H. W. Bush.

“The longest journey begins with a single step.”  Anon

“If you don’t ask, you don’t get.”  Jonathan Ross Goodman’s mother

“Envy is bad for your health.  Just keep looking forward and keep moving.”  Anon

“If it doesn’t work, it’s not going to stop the party.”  Anon

Kudos

“Wow… amazing blog content.”

“Utterly composed written content.  Really enjoyed reading.” 

“Somehow identified your Internet site when I was kind of stoned.  Very good read.”

“You ought to get involved in a contest.  I’ll recommend this page.”

“I like your Internet site.  It genuinely helped me with the data I was seeking for.  Thank you.  Will save.”

Definitions

Mean Reversion’ is the theory that suggests that prices and returns eventually move back toward the average or mean.

The average or mean can be the historical average of the price or return, or another relevant average, such as the growth in the economy or the average return of an industry.

Quantitative Trading’ embraces trading strategies that are based on quantitative analysis, which employs mathematical computations and number crunching to suss out trading opportunities.

Generally speaking, quantitative trading is used by financial institutions and hedge funds.

The transactions tend to be sizeable, involving the purchase and sale of hundreds of thousands of shares and other securities.

Individual investors are jumping on the bandwagon, and also getting involved in quantitative trading.

References

http://www.investopedia.com/terms/m/meanreversion.asp

http://www.investopedia.com/terms/q/quantitative-trading.asp

Images courtesy https://pixabay.com/

Conclusion

I hope you found this SimpleFX Trading Tool: as Easy as 1-2-3 blog post to be instructive, and that you are now better equipped to trade the forex and other markets with precision. 

Trading the forex, or any other market, is made that much easier when you have a tool like WaveCalc at your disposal.  If you want to use it, please let me know here.

And, if you would like us to do your forex trading for you, use that link.

If you still have questions about how to use it, you can contact me at the same link.

If you would like to arrange private consulting lessons with Lennox and I on better understanding the use of WaveCalc, again just put in your request at that link.

Or, if you would just like to have us as your trading advisers, use the same link to make the request.

If you haven’t already read my previous blog posts, please check them out below: 

VIX

After Hours Trading

Trading Volume

Stock Trading Stops

Currency Trading Strategy

How to Pick Stocks

Stock Trading Rules

Three Winning Stock Trading Strategies

Forex Trading Techniques

Forex Pivot Points

MACD Divergence

ADR Indicator

Best Forex Indicator

The HNW Club

Q&A

Market Update

Margin and Leverage

Support and Resistance

Stock Market Forecast Next Five Years

Trading Forex News 

And, you can always learn more about me here.

If you would like to help me start a forum and be a moderator, I would love to hear from you.  Just drop me a line using the Contact provision at the bottom of my site.

If you would like to be featured in my blog, I would love to share your success story – or even your trading experience.  Please send me a message using my Contact form at the bottom of this page.

I won’t live long enough to know it all, and I won’t live long enough to make all the mistakes myself.  So, hearing your story will be most helpful not only to me, but also for my other beloved readers.

Please share this post.  Sharing is caring.  Thank you!

I look forward to your articles, feedback, ideas, stories, and suggestions for my blog.  Please post these on my blog at the Contact link below.  

HAVE FUN and ENJOY LIFE!  Remember – FAMILY comes first!

Here’s To Your Success and Quality of Life,

prbain

Peter R. Bain
PS:  Don’t let them steal your dreams!
PPS:  I will help you achieve your dreams!

About Peter R. Bain

Picture of Peter R. Bain, founder of www.TradingSmarts.com – the go-to site for all things trading.

Peter R. Bain

I am a speaker, trader, writer, aviator, car nut, Harley enthusiast but, above all else, I am here for you at TradingSmarts, which I founded some 15 years ago.

TradingSmarts is your best friend when it comes to finding anything and everything to do with trading.  Through my blog you will always find guides, news, reviews, tutorials, and much, much more.

TradingSmarts is a ‘NO-BS, No-Holds-Barred, Take-No- Prisoners’ site for traders who want the straight-bill-of-goods on how to make a full-time income trading less than part-time. 

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