The theory is worth to be used only if somebody can get a benefit from it, in practice
Before a trader starts gaining profit (depriving somebody of his/her money), it is necessary to:
· understand who is the “enemy” that you are going to “deprive the money” of
· find the advantages over the enemy (through his/her weak spots)
This is a fundamental axiom of any professional success of:
· A commander of any military unit before the battle
· Sportsmen and their coaches before the competition
· A marketing specialist of some big company before taking the market niche
· A trader before gaining profit
How can a trader find the weak spots of the market and his/her own advantages over certain sectors/areas of market movements?
The ratio of weak and strong points are present in the structure of any organization. Masterforex-V's theory has some remarks about searching advantages on the controlled Forex market.
A disadvantage is always an inseparable part and an extension of an advantage.
There is no system in the world that has only advantages (no disadvantages). There is also no such system in:
· Physics (as a result of it the so-called Golden Rule of Mechanics exists, under which one can gain an advantage at the expense of either the power or the distance.
· The political system of any state (democracy and dictatorship also have their drawbacks and strengths)
· In business organization (whether it is a small venture with flexible policy and the total control of the head or it is a large company with a bureaucratic hierarchy)
· Forex training (Masterforex-V World Academy is still blamed for not providing lecture-hall (off-line) courses in Forex trading)
So, I want to clarify the situation: Do you really think that a successful trader gives up trading to give lectures about trends, flats, trend channels and money management while the students are taking notes of his lecture in the lecture hall?
· At the closed part of the internet, the Academy`s theory is handed to you on a plate, followed by daily practice with online calculation tips during trading sessions. The tips concern the direction and targets (aims) of the incoming movement, trend reversals etc. Moreover, there are extra courses at the Academy where an experienced trader shares his/her tips and tricks with the students, answer the questions via Skype (voice chat) while trading by himself/herself.
· Than, who teaches along such Forex training courses with DCs and broker companies right at the height of the trading session? Try to guess yourself.
· Trading and giving online calculation tips (which will be confirmed or disproved by the market in 5 minutes/hours) is one thing. Being a lecturer at some “taking-notes-in-the-lecture-hall” courses and teaching flats, trends basing on historical data instead of trading at Forex is a completely other thing.
To score a success at Forex (as the art of war) it is necessary:
· To define the weak spots of your enemy and concentrate your attack in that direction
· Richard Dennis taught the legendary “Turtles” to “trade with advantages” understanding when and where you have these advantages over “the market” (under MF, over the Forex Founder)
· It is a universal formula of ANY professional success
The conclusion:
For a professional trader the argument about the controlled/uncontrolled Forex market is a question about “the enemy” who can be permanently and consciously “taken money from” only on condition that the trader realizes his/her weaknesses and strengths.
The example of the success algorithm of Victor Suvorov's books on the Great Patriotic War… as compared with Forex.
Let me explain the thesis about “trading with advantages” on the example of the success of Victor Suvorov's books on the Great Patriotic War. The attitude taken by millions of readers has some similar features in discussions about the controlled/uncontrolled (interbank) Forex market.
Historical science
· It's based purely on historical facts and documents (historical science divide such documents into subtypes on the basis of the degree of their importance and priority during the analysis. The most important are the official laws, decrees and acts of the state's authorities. Then follow the documents of Department of Defense, high-ranking officers' orders, mass media materials of the period under consideration, memoirs etc.)
· If there is no official documents (from an order signed by Stalin to the plans of General Staff and marshals and generals' memoirs) that can confirm the existence of the USSR plan to attack the fascist Germany in summer (July) 1941 then there is no reasons to consider this version. Consequently, from this standpoint there is no point in looking into the reasons of the USSR's major defeats in summer-fall 1941.
Victor Suvorov's books on World War 2 are based on a different science.
· This is the science of secret services, which is based on the specifics of its professional analysis under which nobody invites an intelligence agent to the closed conference of the state's first parties and nobody gives him/her the original variants of secret decrees and the memoirs of the would-be marshals.
· The mission of the secret services is to collect facts, which will be assembled into a precise model of the offense/assault against the enemy state, taking into consideration the offense/defense models.
· Searching for weak spots in the CPSU (Communist Party of the Soviet Union) censorship V. Suvorov found these spots in the memoirs of the numerous veterans of the Great Patriotic War as the censors, who didn't know what should be censored in the first place in the memoirs about the simmer-fall 1941, often missed those revelations of the veterans that accidentally exposed the true plans of the supreme command.
· Basing on merging, the 2 advantages of his (knowing the General Staff's techniques of the army preparation for offensive/defensive operations and searching the memoirs for the facts and details that has never been found by anybody else) V. Suvorov assembled those multiple facts into a “clear picture” (drew together hundreds of proving facts) (the structure of airborne troops, panzers, artillery, air force, topography (the maps of only the potential enemy), naval forces (instead of the defensive Dnepr Military flotilla 2 offensive flotillas were raised – Pinsk and Dunai river Military flotillas, which were useless in defensive operations). Defensive pillboxes were built at the secondary frontiers while shock tank corps were concentrated in the salient parts in the enemy's direction etc. up to accidental matches – see the book “The Liberators” – in 1968 right after the “liberation march” to Czechoslovakia millions of pairs of box-calf boots were delivered to the Prikarpatski military region, where Resun (Suvorov) served in the army) and unloaded to the ground. An old man tells that the same thing happened in May 1941 right in the same place).
The Algorithm of the V. Suvorov theory`s success
Under the government's support, the amounts of anti-Suvorov books are written, which are made reference to by all his critics…yet they only favor the popularity of Suvorov's books because:
· By using one science (historical), it is only possible to shatter the conclusions of the other science (of secret services), yet, they cannot be revealed and disproved this way.
· To understand what is right and wrong with Suvorov's conclusions it is necessary… to find the identical drawback of the algorithm of Suvorov's concept itself that he applied to the historical science of the Great Patriotic War (see the examples at the closed Academy sub-forum “The formula of success: applying Forex analysis tools to other aspects of life” within the scope of the training in finding MF's algorithm in different spheres of human activity beside Forex).
· Only time will judge which of the sciences go in the right direction (modern history is based on ideology rather than science)
· This example is necessary for us to realize how the solutions to many urgent problems (not only at Forex) can be found easily and professionally by looking at the problems from a different standpoint through MF's algorithm.
Searching techniques for traders' advantages on Forex as if it was spontaneous and uncontrolled.
As opposed to history, Forex has distinct criteria of any thesis being right or wrong
· Understanding each movement and gaining profit
· The ways of conscious profit-making at the controlled and spontaneous types of Forex are different.
If Forex was spontaneous and uncontrolled, the weakest link of its chain would be the absence of simultaneousness between the trading tools of various exchange markets in the world. Consequently, the trader would have to find his advantage over the market in the following:
1. The absence of simultaneousness of brokers' quotes
· The trading would be performed via the brokers whose quotes would be constantly delayed.
· I always ask the same question to the critics of the theory of the Forex Founder: Can you name any broker or market-maker whose quotes are given 10 seconds/minutes before the rest of Forex participants get them?
· Your theory of the UNcontrolled FX market wil give us real profit, yet we do not need any other flood and proofs of the market being uncontrolled.
· They keep silent
2. The absence of simultaneousness between the currency pairs
· We would trade the currency pairs of those national banks which would have a slow reaction to the news, for example, because of the bureaucratic agreement about the new currency rate.
· One more question to the critics: Can you name such a currency pair? All of us would trade it at the UNcontrolled Forex market.
· If there is no such pair (all the quotes are coordinated and match right up to a split second, including the news-based movements) then why do you argue and waste time?
3. It would be possible to trade crosses without comparing them with the relevant majors.
· For example, we could do without the majors like GPB/USD and NZD/USD (that make up the crosses of the Bitish Pound and the New Zealand Dollar) while trading the exotic currency pair GPB/NZD.
· For 5 years, I have been asking the supporters of the theory of the simultaneous Forex market to name at least 1 major out of 150 currency pairs, the cross of which can prompt the movement direction of its major at least 5-10 seconds earlier. It is the only proof of the spontaneity of Forex I need. Yet, this practical recommendation could bring real profit.
4. Any decentralized (uncontrolled) market has different prices in different places
· If Forex was a pure interbank market, it would be more profitable to buy a certain currency from those who sell it at a cheaper price and to sell it to somebody who can afford to buy it at a higher price.
· It would also be very profitable to open a number of trading accounts with different broker companies and banks and to buy currencies (knowing the trend) from those of them who sell at the lowest price and buy at the highest one
· Instead of it, we can see the identical price rates with a time difference of a split second (There is the Major Computer controlling the Interbank).
· Forex is a financial game without real deliveries of the bought/sold currency to the traders. Doesn't the world's biggest financial game have the founder? Then, who provides traders all around the world with simultaneous currency rates thus ensuring the financial basis of the currency pair rate of any of 150 currency pairs for the exchange of the currencies at any bank in the world at the stated rate? Is it some abstract computer that has a mysterious “created-by-nobody” program generating currency rates and that is served by nobody? All the banks in the world exchange their clients' currencies at the stated rate in any volume without any questions.
5. Oanda's quotes would function in the opposite way as opposed to the controlled Forex market.
· If the crowd of traders' sell-limit orders got active at a bullish trend one should sell like the crowd did (under the laws of spontaneous markets the price must collapse if everybody sells and nobody buys).
· If the Founder of the Game cheats the crowd, we should follow his logic, not the crowd's one (he himself will “buy” their positions and take them to the stop-loss orders).
6. It is absolutely impossible to understand why the supporters of the theory of the uncontrolled Forex market… teach other traders to trade at Forex.
· If Forex is the battlefield of traders (including banks) where, under Elder, you'll have to “to rob other traders of the money they carried to the market ”
· Think WHY Elder travels all around the ex-USSR and read lectures (according to his logic he will have to rob those whom he is going to teach)
· Having solved the paradox, you will come up to the next level of understanding Elder's TS and of the fact that teaching Forex trading to others is logical only for the supporters of the theory of the controlled Forex market as there is no need to rob a fellow trader at Forex (as Elder teaches), it is better to trade and profit TOGETHER with him/her (as we do it at the closed forum of Masterforex-V Academy because our enemy at Forex is not the same as Elder's one).
That is why when you are reading the critics of Masterforex-V's theory about the controlled Forex market try to understand the following:
· The answers to the above-mentioned questions are the way out to your advantages in real trading and it is the real help in profiting.
· All the rest is just flood and phrase-mongering (principal for analysts and useless for traders)
· The theory of the uncontrolled Forex market has actually reached a deadlock (a more detailed explanation in Chapter 3 of book 2 called Chartism as the deadlock of the classic tech analysis. The way of overcoming the deadlock through Mastreforex-V TS
· The algorithm and the internal reasons for the deadlock of the classic tech Forex TA lie exactly in the spontaneity and uncontrollability of the Forex maket. That is the reason why all the classics of tech and wave analysis move in a circle and 97-99% traders lose their money.
The algorithm of MF TS, which results from the conscious understanding of a trader's advantages on the controlled Forex market
MF's thesis in book 1 about the controlled Forex market was cited to give a practical prompt for searching after the advantages that can help to find the movement algorithm of Forex currency pairs.
· This allows us to strictly follow the market through the conscious understanding of each movement (from m1 to h4, d1 and so on) and to gain conscious profit basing on this understanding.
· The weak spots of the controlled Forex market are the extension of its major strength – the SIMULTANEITY of more than 150/200 currency pairs.
What is the weak spot of the SIMULTANEITY of 150/200 currency pairs?
1. There are no accidental movements on Forex. Each movement is forced to be consistent with some laws.
Otherwise, it is impossible to make a long-term online match of wave analysis, Fibo, Murrey and Demark levels, pivots, waves and sub-waves on all ticks (each time the price change) of 150/200 currency pairs with the work-off of waves and sub-waves of Majors and Crosses on each of the 8 timeframes.
2. The TA algorithm of all the currency pairs on all the timeframes of the controlled Forex market is the same.
· The algorithm on d1, w1, MN charts is the same as on the tick chart, m1, m2, m5, m10 charts etc.
· If you understand the algorithm of the tick chart an m1, then, you will understand each movement on each TF (including h4, h8, d1, w1, MN)
· If you do not understand the algorithm of the tick chart an m1, then, you will lose on any TF (even if you stick to money management rules etc.) like 99% traders do it all over the world (the algorithm of mistakes that implies constant searching for “better” currency pairs and “better” timeframes)
3. Following the market under MF TS means to find the starting point from which a series of waves and sub-waves starts working off, the whole movement being determined on the controlled Forex market. For example, the end of a pullback on h1/h2 = a correction/ impulse wave on m30/h1 with a full cycle of sub-waves on m1/m2/m5/m10 of the current TF (h1/h2)
4. The connection between Majors and their Crosses
· The end of an impulse wave of a cross = the trend beginning of the relevant major with a simultaneous and co-directional movement.
· For example, a flat of GPB/USD and a trend of EUR/USD = a trend of EUR/GPB with the work-off of the full wave/sub-wave cycle of a specific MF wave level.
5. The possibility of revealing the plans by analyzing both the current currency pair and its allied pairs.
· If the reversal of the US Dollar trend is planned, it should be ready for all the allies against the Dollar…it is impossible to hide the plans for all the currency in equal degree.
· The important thing is to know the criteria… that have never been described by any classic trader, as they have never analyzed Forex from this standpoint.
Is it necessary to take into account the orders of the Interbank and the exchange Forex market?
· Absolutely, they can be used as an extra element of the analysis of the Founder's computer software that is ABOVE the exchange and off-exchange Forex markets. The orders of the Game participants should also be taken into account.
· The breakthrough of banks' stop-loss orders is a strong signal (the trend continuation in this direction… or its reversal after the stop-losses are broken through).
Classic traders' logic algorithm of “following the market” is … if Forex is spontaneous and uncontrolled.
“To follow the market and not to predict it” is Forex classics' favorite saying.
In chaos (at the spontaneous and uncontrolled Forex market) the saying turns:
· First into nonsense (if the chaos contains cause-and-effect relations with distinct criteria of the reversal of each movement within the scope of the general model then there is no (and cannot be) any chaos)
· From nonsense into demagogy. Naiman cites an example when after missing several months of the trend (d1 chart) with the movement of more than 1000 pips he enters the market and the trend reverses. Yet Naiman teaches traders to always follow the market and “to not see the models that the market doesn't give us”.
Naiman wrote: “The best solution in this case would be either to wait (!) till the situation clarifies or to get other (?) confirming signals”. For a more detailed examination of the topic see Chapter 3 of book 2 called “Chartism as the deadlock of the classic tech analysis. The way of overcoming the deadlock through Mastreforex-V TS
Consequently, the spontaneity of Forex, for most Forex analysts is:
· Their “lifesaver”, which makes up for their incompetence and lack of professionalism, which they try to hide behind the phrases “the market is unpredictable”, “market noise”, “the market is always right” etc.
· The hidden truth of the chartist trading systems of the classic TA is revealed through the following saying of Naiman's.
The quote from Naiman's book is:
You may not have time (??) to distinguish a trend in its first stages, yet, it is not the most important thing. It is much more important to enter the market at least (!) in the middle of (?) the trend, which is usually far more profitable then the 1st stage of the trend because of “speculative heat-up” (End of quote).
As a result, we can conclude that the classic TA (tech analysis) of Forex is not capable of defining:
· The beginning of the trend
· The algorithm of its movement
· The end of the trend
Yet, the classic TA recommends you “to get at least in the middle of the trend”.
That is what the thoroughly hidden algorithm of TA classics consists in (followed by the demagogy resulting from the absence of distinct criteria). They say that traders should always follow the market… without the distinct criteria of trend reversal/continuation.
With such a level of Forex analysis, it is real chaos, yet the chaos is not on Forex, it is in the analysts' heads.
How to follow a trend while using Masterforex-V's new TA?
Under MF, to follow the market means to understand the coordinate system of the current movement from the standpoint of the new tech analysis by MF and to trade consciously only where the trader can clearly see:
· The targets (aims) and the importance of the movement from the standpoint of senior timeframes.
· The point where the movement get canceled (a stop-loss/a lock)
The new tech analysis of trading by MF is the distinct identification criteria of:
· The beginning of ANY trend (from the tick chart/m1 to d1/w1/MN)
· The algorithm of any trend movement
· The algorithm of the end of any trend
· The synthesis of the wave levels (timeframes) of any trend (for example, an h4 trend consists of h1/h2 trends, which consist of m10/15 sub-waves… and so on, up to the tick /m1 chart)
Examples of calculating EACH Forex movement by MF Academy listeners
From the viewpoint of the new TA by MF-V
· Any Forex movement is determined
· These movements are the work-off of waves and sub-waves on senior TFs.
· Consequently each movement at the controlled Forex market can be calculated and defined.
· A trader should consciously profit from those areas of movement that he understands (when the price reaches the stop/ lock any trader must cancel the current variant and move to an alternative trading plan, which was calculated in advance).
Look at the pictures below showing the calculations of some Academy members after several months of training.
As one of the students wrote:
The quote (Sergo11 @ 10.1.2009, 15:22)
I have calculated and drew on the H4 chart the structure of the correctional wave…and I was shocked - no excess movement, each wave and sub-wave, mini-flat and ISF at Forex has its own specific functions: (end of quote)
Let me explain it for those who could not understand
1. TA classics (Murphy, Shwager, Elder, Naiman, Luka etc.) search for models (head-and-shoulders etc.) and sloping channels in “the market chaos”
2. The highest level of TA analysis is wave analysis (see the 11th grade of the beginner school under MF Academy). Even the classics of such high level of TA analysis (Balan, B.Williams etc.) publically confessed that they are not capable of analyzing correction waves, especially on small TFs (the things that the Academy students can do after 6months/a year of training. It is demonstrated on the pictures above).
· They can resolve into components any wave on any of the 8 (!) TFs from the tick chart to d1/w1/MN. (I remind you that h1/h8/d1 trends are made up from the sub-waves (waves of smaller TFs). It is not necessary for a trader to trade on m1 or m5, but it is vital to understand the movements on all the charts, yet it is an obligatory condition of successful trading)
· They can see the structure and algorithm of flats and trends and their correlation in the general model of the market movement.
If you look at Forex as chaos and do not see:
· The beginning of the movement
· The algorithm of the trend progress (often inside the flat on the senior TF)
· The end of the trend (trying to get into the middle of the incomprehensible)
Then answer the following questions: Can you permanently and successfully trade at Forex?
Is it accidental that the world's 99% traders lose their deposits and scam DCs' course instructors talk their students into studying the “masterpieces” of Forex classics before trading?
So, who needs the theory of the spontaneous and uncontrolled Forex market and why do they need it?
In the following chapter, we are going to have a detailed look at Masterforex-V's synthesis of binary trading patterns. The list of questions to answer is the following:
· How do the author's new tools of market analysis (as a part of MF's new TA) logically follow from the basic thesis about the controlled FX market?
· What results do the tools give?
· How can one easily find those DETERMINED Forex movements, which have never been explained online by any classic trader?
Further we will look at the books by the classics from a completely different viewpoint, making a clear distinction between their greatest discoveries (with finding the algorithm and synthesizing the classic tools with MF's TA tools) and their evident failures, which are also found and solved through MF TS.
The chapter can be discussed at the Academy forum
Introduction to the 2nd edition of Masterforex-V's Book I. >>>
Chapter 1 - The 1st delusion of 97% of traders in the world. Predators and preys at Forex. >>>
Read more
Part II - Masterforex-V's Trading System and new technical analysis. >>>
Book 2. Technical analysis in the Masterforex-V Trading System >>>
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