The logic of creating Masterforex-V TS or what should have been corrected in the old TA.

If both - the old (classic) TA and WA of Forex trading:

·        -  hold true only in 30-40% of the cases

·        -  are  the reasons why 97% traders lose at Forex

·       - are advertized by scam DCs and BCs for would-be preys (novice traders) (Simultaneously they ban the name of Masterforex-V (its mentioning) at their websites and forums)

Then it would be reasonable to suppose that the old TA and WA cannot be profitable for traders. Before opening a real trading account and base your trading on the classic TA and WA, under MF it is necessary to do the following:

1. To cardinally change everything by separating the right (including the great of 30-40% profitable deals) from the 60-70% of the false and the unsolved by the classics.

2. Test your remake of the TS on demo and on mini-real.

3.  Combine the new TS with your psychology and the suitable type of MM (money management)

That is the path to be followed by any successful trader

That is the principled difference between a trader and all the rest professions in the world

·         Traditional professions (doctors, military men, teachers, lawyers, engineers, civil servants etc.) must stick to the instructions and the techniques approved by their bosses.

·         A successful trader first should find the mistakes of the classic techniques on his/her own, then cardinally (to a minimum of 70%) change them and constantly break the generally accepted classic methods (including the nonsense of DC/TV analysts and supposedly “successful traders” at various internet forums on Forex).

The SBP by MF: the essence of the new TA by Masterforex-V

What is the principled difference between the old (classic) TA and the new one created by MF-V?

·         It does not even consist in the fact that the methods are only 30-40% right

·         It consists in the fact that there cannot be any other result of searching for “the Holy Grail” (if alchemists managed to find out the method of producing gold… it stopped being a standard of the world's financial system).

·         As soon as one simple tool for financial gambling allows anybody (who wishes) to beat the global financial system (for example, with the help of an expert adviser)… the tool will stop working (the Founder of the Game will change only one parameter of the quoting settings)

Consequently, the Forex classics' path of searching for THE TOOL/ “the Holy Grail” always leads to the deadlock.

·         You can spend years experimenting and optimizing the TSs created by Demark, Elder, Prechter etc. But nobody can guarantee that tomorrow your new TS will still be working.

·         The veterans of Forex can cite dozens of examples when the TS worked perfectly for a long time… and all of a sudden stopped doing it.

The most striking example is Bill Wiliams' TS described in his book “Trading chaos”

·         The book became dynamite at once. Millions of traders around the world considered it to be a desk book.

·         10 years later Bill Williams himself had to admit that his TS is not suitable for profitable trading at Forex.

How to avoid reaching the deadlock (probably the deepest shock)?

The correlation between fuzzy logic by Lotfi Zadeh and the SBP by MF

The paradoxes of the TS created by Bill Williams and other TSs with short-term success become logical and naturally determined through the “Fuzzy thinking” of Lotfi Zadeh and Bart Kosko

Forex has much in common with “Fuzzy logic” by Lotfi Zadeh and “Fuzzy Thinking” by Bart Kosko. In fact, the new branch of the Forex science is named “Fuzzy logic”.

However, it is not recommended to overestimate the significance of this approach and these articles. – i.e., one must not get caught into “an endless loop of it”. At the same time, it is absolutely necessary to comprehend the essence of “Fuzzy Logic” theory. As applied to Forex , it means to see the multiple-choice character of the evolution. That is, the process depends on the starting parameters and on the factors arising in the course of the development. Each of such elements is binary – i.e., it is formally logical. However, the correlation between these components (factors) can yield results cardinally different.

This is why mathematicians are often powerless at Forex . Specialists of this profile are used to deal with the binary systems where the multivariate development is not implied. That is, 2?2=4 forever, independently of news, correlation between trends of various types, currency pairs, etc. At Forex , only the system elements (components) can be measured accurately. Otherwise, the currency pair movement would be predictable in advance for years. Such things are inadmissible – especially at the controllable forex market.

And vice versa, for those, for whom the SBP was an inseparable part of the preceding profession (doctors/medics, teachers, policemen, journalists etc.), the Fuzzy thinking is natural.

For example:

·         No pharmacist searches for “the Holy Grail” ( the unique cure for all the deceases) as well as no doctor is ever going to believe that such a cure will ever be made (and will make the global pharmaceutical industry go out of business)

·         While going to work no doctor knows what patients with what deceases he/she is going to cure. He/she knows the methods/techniques of examining and curing these deceases including the inner correlation of the deceases (if a person suffers from excess weight he/she can probably suffer from cardiovascular diseases, hypertension etc.)

·         If he/she is not sure about the diagnosis of the patient's decease he/she invites the experts in other medical specialties.

·         As a result, the doctor knows how to help the patient no matter who needs help and when he asked for help.

That is what constitutes the essence of medical professionalism, not the search of the Holy Grail that would cure the whole humankind.

Example 2 of the SBP concerning the relationships of men and women.


Let's take an ordinary situation as an example and pay attention to how the situation can change with the addition of an extra fact.

·         The husband comes home

·         The husband comes home with flowers and a present for his honey

·         The same situation (with flowers and a present) after the quarrel

·         The husband comes home… the wife smells the flavor of some strange female perfume and sees lipstick on his clothes


I can continue the list of examples. The essence of the SBP is that by adding one extra element to the system one can cardinally change the situation.

That is why in any science a COMPLEX analysis is an axiom and an inseparable part of any scientific analysis regardless of the profession.

The COMLEX FOREX ANALYSIS (as opposed to the search of 1-2 Holy Grails by the classics) was called the Synthesis of Binary Patterns (SBP) created by Masterforex-V, which has the following features:

·         Each separate element of measurement is simple and objective (confirms Alexander Elder's rule “”the formula of a successful trading system must fit into the back of a postage stamp”.

·         The SBP (as well as the market movement) is absolutely different from yesterday's one (or the one that was a week/month/year ago) as there are absolutely different combinations of the elements (vectors) that determine the movement.

·         Consequently, the birth and the development of any new trend, under MF, are the first signal, confirmed by the 2nd/3d etc.

Apply the SBP to many TSs and you will understand their essence.

Any trading systems which are based on 1-2 elements lead traders to the deadlock.

The quotes of some traders:

·         I trade successfully with the help of exchange market orders

·         I trade successfully with the help of Elliot WA

While reading such revelations of supposedly “successful” Forex traders… try to understand:

·         How primitive the TS is to beat the global financial system

·         That the trader himself/herself doesn't remember/understand the old saying: “If you want to look smart, keep silent. When you read or talk you reveal yourself.”

If you understand the algorithm of doctors' professionalism and the relationships between men and women…let's proceed to the principled difference of MF's new TA from the old, classic one.

Masterforex-V's new TA.


Initially I was not going to search for another simple UNIQUE “Holy Grail” tool because this contradicts the common sense of any financial game and professionalism (Will you become a professional lawyer after learning one article of penal code? Will you become a philologist after learning some poem by heart?).

MF's logic of creating his PROFESSIONAL TS and the new TA is completely different.

The logic is in calculating the initial algorithm of success of any classic TS, thanks to which it is possible to do the following:

·         To understand what inner cause-and-effect relations of a classic TS give 30-40% profitable signals and where all this happens, assuming them (the relations) as a basis.

·         To define filters - the distinct criteria of separating 30% profitable signals from 70% unprofitable ones.

·         To correct/optimize the 70% through MF's open-structure algorithms (this is the way that over 100 global discoveries were discovered by MF in the field of TA and WA, which were not an initial goal, as well as a couple of dozens of MF's new tools – an ISF, an MF zone, a full-grown FZR, a SC (sloping channel), a fantail/semicircle of MAs, MF pivots, the Hound of the Baskervilles by Elder/MF, the Trap for professionals by Larry Williams/MF, a shortened wave C etc.)

The criteria:

The match of the signals given by the INDEPENDENT, unique tools is the SBP by MF as a basis of the new Forex TA.

The structure of the SBP by MF – a couple of dozens of tools:

·         A range of the tools is taken from the classics (Demark/Murrey/Axel/Fibonacci levels, the classic WA etc.)

·         Others are tools created by MF himself

·         Another range of the tools are created by experts from the Academy departments specializing in the advanced study of the very tools.

The essence of the SBP

·         Working TS (after removing the 70% of faults) gives profitable signals

·         The match of 2 and more tools, INDEPENDENT from each other, cannot be just a coincidence at the controlled Forex market, where each movement of a currency pair from the tick chart/m1 to d1/w1 is determined/logical/natural.

How to follow the trend through the SBP by MF?

Depending on the market situation one of the INDEPENDENT tools gives a signal, others must confirm it.

A position is opened when the 2-3 signals of the INDEPENDENT tools match with each other.

The 4th /5th…12th signals confirm the open position.

The position is closed when the price reaches the targets and the signals of 2 tools tell us about the reversal of the movement in the opposite direction.

The tools of MF's SBP.

·         The classic Elliot WA

·         MF's WA

·         MF starting/reference points

·         The orders of the exchange market (and their new interpretation by MF)

·         Oanda preys' orders (the orders placed by the traders (as preys) of the Oanda broker)

·         Market indexes

·         The off-exchange market indexes of currencies

·         The allied currency pairs (at Forex)

·         The starting/reference point of the MF synthesis of SHORT-TERM, MID-TERM and LONG-TERM trends.

·         MF pivots 1, 2, 3

·         MF's sloping channels and classic trend channels

·         An ISF (an intersession flat)

·         An MF zone

·         The Hound by Elder/MF

·         The classic levels by Fibonacci, Demark, Murrey, Axel

·         A complete/non-complete FZR (fractal-zigzag reversal)

·         A series of FZRs

·         MF's wave levels (they are combined for the first time with the classic TFs. As a result of it you can easily distinguish an M1 wave from an M5 wave, an M10 wave from an M15 wave etc.)

·         MF's algorithm of the flat

·         FLAT and TREND movements

·         Elongated and shortened waves by MF (as opposed to the classic “long” and “short” ones – they differ in the length/time of the deals, not in the direction of the trend)

·         The new system of using the fantail of EMAs.

·         Classic patterns and MF patterns.

·         And others

Believe me, when you start to make a COMPLEX analysis of the market (as opposed to the millions of losers) through the SBP by MF, the market will reveal itself for you in its different, genuine form.

A NOTE: On the initiative of the female part of Masterforex-V Academy the Department of the male-female relationship analysis (as an optional class) was founded, where the work is based on the same COMPLEX and objective analysis through the hidden algorithms of each element of the relationships.

The effect is the same – many puzzles, mysteries and secrets are revealed and become the consequences of the objective algorithms that the relationships are based on.

What does it mean: to CONSCIOUSLY make a profit with the help of MF's SBP?


To find the MF starting point

·         To spot the impulse/correction wave of a certain wave level (for example, m30, h1, h2, h4). Basing on this wave level the market (or its founder) will work off the waves and sub-waves of the JUNIOR wave level (discovered by MF).

To follow the market is to understand each of its movements starting from the tick chart/ m1 within the scope of a MID-TERM trend (h1, h2, h4, h6, h8) and a LONG-TERM trend (d1, d2, d3, w1)

The conscious opening of a deal, under MF, is a match of any 2 unique tools, INDEPENDENT from each other, which give a signal to enter the market. Then we follow the market in real time (not on history, as the classics do).

The conscious closing of a deal, under MF, is a match of any 2 unique tools, INDEPENDENT from each other, which tell us that the impulse is complete, that the trend is fading away and that it is going to reverse in the near future (at least for a correction to the current trend).

To stay away from the market:

When you cannot make out what SHORT-TERM wave is currently unfolding within the framework of the MID-TERM and LONG-TERM trends.

Until you define a new starting (calculation) point for the further work-off of the determined waves and sub-waves of a certain wave level.

The tactics of working with (within) a negative/positive lock will be described in a separate chapter of the book.

Examples from the daily practice of the Academy students.

The 1st step towards your success.

The 1st step towards your success at Forex lies in the understanding of each step of the currency pair movement.

For example, if you start you trading terminal and see a flat then:

·         It is not “market noise” as analysts and classics call it.

·         It is the work-off of the waves and sub-waves of a certain wave level before the pointed/purposeful movement (an impulse).

That is why it is necessary:

·         To define the wave level of the current flat as a correction to the senior TF (for example, a flat m30 – the search of wave C m30 within the framework of a correctional wave h1/2)

·         To define the waves and sub-waves trying to understand each movement of the market

·         To calculate the SHORT-TERM and MID-TERM levels of support and resistance for an impulse unfolding within the flat.

The 2nd step towards your success at Forex.

To profit from the impulse (the directed movement of a currency pair) with a clear understanding of EACH step of the currency pair from the beginning of the movement to its end. An example of such calculation for a trading day (April 28, 2009)

·         Then you open a position, make profit while understanding each step of the controlled Forex market, which works off the waves and sub-waves of a certain MF wave level

·         You close the position at the 2nd/3rd/4th/5th resistance level (we prompt them to beginners during the real-time trading)

·         A stop-loss/lock is obligatory. Its breakout (crossing) means proceeding to the alternative variant of movement on the senior TF (also pre-calculated).

The quote (Masterforex-V @ 27.4.2009, 9:03)

A SHORT-TERM movement

·         the bullish wave í4 1.4395-1.4770 is finished

·         a downward movement on í4 as the moment of truth

The downward targets are reached and the sell orders are closed… 8pips above the minimum at 1.4523 (the minimum is 1.4515)


The quote (Masterforex-V @ 27.4.2009, 10:04)

MF pivot at 3 1.4523 is broken through= a separate wave is going up

SCh (sloping channel)

The proof – the breakthrough of the sloping channel and the 1.4550 pivot = a correction grid <

·         ì30 1.4623-1.4514

·         í2

We follow the market in the upward direction, calculating each step of the market

The same movement on the senior TF

The example of May 1, 2009. Calculating the upward movement and the end point of the bullish wave with 1-point accuracy.

Preliminary calculation

The quote(Masterforex-V @ 1.5.2009, 11:50)

À ì15 1.4752-1.4821

à(Ñ) 1.4767-1.4841, â(Ñ) = 38%

The correction grid on h1



1.4887 = 76% + 162% + 200%

1.4915 = 88% + 200% + 238%

Defining the end point of the bullish wave more precisely (with 1-point accuracy).

The quote (Masterforex-V @ 1.5.2009, 13:54)

1.4932 = 138% ì1

Pivot 3 = 1.4920

If it is broken out, a series of downward FZRs will appear

Calculating the upward reversal

·         A 100-point downward movement after breaking through the bullish Pivot 3 at 1.4920

Öèòàòà(Masterforex-V @ 1.5.2009, 14:18)

A series of downward FZRs (short waves)

·         1.4885

·         1.4868 = 138% + 38%

·         1.4844 = 50% m15 + 38% h1

·         1.4822 = 238% + 62% m15

·         ...

Pic. The end of the 100-pip downward movement and the beginning of a new upward movement


The 3d step towards the success at Forex

Constant professional advancement:

·         Gaining the experience

·         Increasing the amount of working currency pairs

·         Investing the profit from Forex trading in OTHER objects of investment (visit the Investment Department of the Academy)

Was the profit made consciously?

It is a common question to the Academy members at the end of a trading day. 

The question means the following:

·         Was each movement of the currency pair (from the tick chart/m1 to h1/h2) clear to everyone (including the prompts/tips)

·         Was the profit made consciously?

·         Are there any questions, problems (for their close examination and training for the next days)?

You can become a professional trader only through the following:

·         The new theory of TA and WA by MF

·         Daily practice in applying the theory to the daily current/real-time trading

There doesn't exist any other way of entering the 3% best professionals.

Is there any other way to the success at Forex?


The quote from the Academy

Vjacheslav Vasilievich, Isn't it really possible to profit at Forex without going deep into al its details?

Continue the logic chain that results from the question:

…And to enter the 3% of the world's best professionals in the world

·         after studying some literature

·         by glancing over the forums from time to time searching for some info on your profession

·         by “gambling” (??) at Forex in between some “important affairs”

It is not accidental that I constantly compare the professions of a trader and a surgeon. Can anyone become a surgeon after studying “some literature on surgery” and flooding at internet forums (at best bothering with questions as though the answers to them will help him/her to master the profession)?

No, it is impossible to become a surgeon by following this way. As well as it is impossible to perform surgery without understanding the functionality of each vessel and nerve terminal of a human body.

So why do they think that it is possible to become a trader without understanding each step of a certain currency pair from m1 to d1, w1?

If beginners trade on demo it is not bad and dangerous for them ( They gain trading experience, start realizing the problems, try to solve them on their own, start reading the classics, find and correct the out-dated dogmas etc.)

Misfortune comes to traders when they open real trading accounts while considering themselves to be professionals.

That is why a trader-to-surgeon/trader-to-atomic-physicist comparison is needed.

The similarity of the 2 professions (a trader and a surgeon) lies in the fact that there is no accidental (especially permanent) success in both the professions.

If you have already chosen a profession and want to enter the 3% best experts without studying the algorithms and details of the profession, without practicing daily trading with those who are much more skillful than you, without constantly advancing in skill, without understanding each market movement (for a surgeon = the functionality of each blood vessel and nerve ending), then decide on your own whether you have even a ghost of a chance to enter the 3% of the best.

The difference between the professions is that a trader's work is …much more difficult than a surgeon's one.

·         Nobody is trying to deceive a surgeon (neither patients, nor diseases). The first thing a trader has to do DAILY (sometimes a couple of times a day) is to reveal the MAIN PREDATOR's “evil scheme” of “cheating the crowd” and “hunting the preys” in order to not become a prey himself/herself.

·         Surgery has thousands of time-tested scientific methods and techniques proven by the preceding generations. As opposed to surgery the classic trading methods hold true only in 30-40% of the cases.

·         Skill advancement and experience exchange can be considered as common practice for surgeons and nonsense for traders.

·         A surgeon can remain at the level of “the mid class” if he/she hasn't reached the top. A trader works according to the “all-or-none” law.

Consequently, successful traders' profit is much bigger than the best surgeons' one. And vice versa, misfortune is much more cruel and merciless towards traders than towards surgeons.

When you decide to open a real trading account recall the comparison with surgeons… It will probably save you and your money from an unreasonable and naïve desire to beat the WHOLE global financial system with the knowledge and experience gained from the training courses under DCs and from “shady” internet forums.

The next chapters of the book are dedicated to the application of MF's SBP, thanks to which we will learn to do the following:

·         To easily reveal new secrets of the well-known patterns and models of trend reversal/continuation

·         To spot the classics' mistakes (which are used to cut off the 60-70% of failed deals according to their statistics and which no trader wants to repeat)

·         To explain why the Academy members close their positions and wait for a reversal where the classics and the whole trading world continue to open positions with the old current trend catching the peaks of the trend before its reversal)

·         To show why “Elder's triple screen TS” is a primitive look at the market (or how it is possible to combine (according to MF) over 20 wave levels : m1, m2, m3, m5, m10, m30, m40, h1, h2, h4, h6, h8 using a simple MT4)

·         To understand where and why WA and Fibonacci levels work… and where they just cannot work.

·         To understand why support/resistance levels are dynamic at Forex (they can change in 10-30 minutes or at the end of the day)

·         To realize how the Founder of the Game uses the exchange and off-exchange market order (in order to avoid becoming a prey it is necessary to realize who is turning into a prey now).

·         To make a trading plan and do the preliminary calculations for each 2 variants of the forthcoming movement before each trading session

·         To discover the system of faultless deals… what the Forex classics failed to discover.

·         To derive the formula of distinguishing a working TS from a fake one in 5 minutes

·         To see who tries to copy separate elements of MF TS (without success) and how and why they do it.

·         To explain “the scam patterns” of work of many DCs, BCs and investment funds.

You can discuss the chapter with the Academy members who study the SBP techniques created by Masterforex-V by following the link


Part I - Delusions of Forex Market (typical error 97% losers traders: how and what to change on the way to success in Forex) >>

Chapter 1 - How to create a profitable Forex Trading System, taking into account the future changes in the market.>>

Read more

Chapter 3 - The ABC or the most concise course in TA while entering the 1st grade of Masterforex-V School.>>

Chapter 4 - Trading: the 1st reference point by MF (the Pattern by Elliot / MF). What main element is not enough for the classic Technical and Wave Analysis to make profit? >>

Chapter 5 - Trading Systems: How in 5 min to distinguish a professional trading system from a fake. >>

Chapter 6 - Technical levels of support and resistance in Masterforex-V Trading System. >>

Chapter 7 - Moving averages: The basic Forex indicator. >>

Chapter 8 - What can be added to Bill Williams Trading System? What 11 extra bullets following the 5 ones discovered by Williams will finish any trend? >>

Chapter 9 - Trading on news. Features of trader's work on Friday at American session. >>

Part 3. Forex investment funds >>

Book 2. Technical analysis of Forex in the Masterforex-V Trading System >>

Book 3. Masterforex-V “Points of opening and closing of positions at the Forex market (basic course)" >>

Undergo professional training at the Academy Masterforex-V >>




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