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Re: Design your own System like the Pros Do

AussieBeau, Mon Jul 17, 2017 1:28 pm

Hi Guys,
This post is to answer the query of members that posted about the spread.

Now, Remember how i purposely didnt mention about what the fractal mtf was to be used for.
Well,yes the spread was put up with the wrong info for a reason..Why?
Both the first exercise and my first post,I put a real importance on knowing the price/spread and your brain.
I even told you that it was not the most enjoyable exercise but it was necessary to your success and that it was used in
entry exit decisions.

Now, the reason I did that is this:
You had nothing to work with on the chart...you were not trading that first chart...it was simply to get you to look
completely at the chart using nothing but your brain to decide what was happening.
The majority of traders never look at a chart by just using their brain..
Some of you would have given up and left the thread,some of you decided that you wanted to put the effort in to go on.
The spread is very very important and yes the best traders do use it as a main help in entries exits

Now I will explain how to read and use the spread...
The spread is the bid ask price.
Most traders think it is there only to tell you how much you have to pay to take a trade...that is one part of it.
Well what else can I learn from it?
In very basic terms the spread is a reflection of confidence
Banks release or with hold liquidity into the market based on their confidence of the direction of the market.
When the market is not confident what is going to happen such as at news releases you will see the spread widen.
Usually about 10 minutes after news ,when the market gains again confidence you will see the spread regain its balance
again.
When the market has confidence the spread tightens.

Now I am going to post 3 charts as examples..after each pic will be a short explaination.
After these examples..the only way to learn What it is doing is to load up your exercise chart and watch til you pick it
up...you absolutely must learn this if you want to achieve what I promised you , being able to trade a blank chart OK


The pics on this post were taken one after the other
AUDUSDM151.png
candle is green- price 78209 color magenta -spread color green o.9 base
means bull diection candle-strongest last cash input was by the bears -spread is green 0.9 meaning market has confidence in
current bull direction
So what happens next
AUDUSDM152.png
candle is green-price is magenta-spread color green 1.00
means still bull direction candle-price has risen to 78214 strongest last cash input is again bearish-spread is now widened
a little to 1.0 but still within 0.1 distance from base 0.9 ,but be very careful with any S/R around as it is showing that
its not looking to strong (remember confidence) to break thru a S?R
So what happens next

AUDUSDM153.png
candle is green - price is magenta 78217 - spread green 0.8
means its still bull direction candle price has risen 3 pips but still bearish biggest cash input - spread is green bullish
but has now dropped tightened by 0.2 to 0.8,,strong confidence in direction signalled,it has reached a s/R and if it
tightens further a good chance of breaking thru


I hope you can now understand why I left this to last..it is basically ongoing homework.
You have now gained enough confidence within yourself to be able to master the spread using your brain...no indicator could
do this except your brain.
Can you see the potential for entries exits?
This is one of the things that top traders use...would you call this a good edge?

You now have ALL the tools to be a 5%er dear traders....my work as a teacher is now complete.

Over the next day or 2 I will just share the things that have helped me if you like....we are now trader trader instead of
trader teacher OK

I will give you til Friday and then I will show you how I trade a blank Chart.

I hope you have found this course beneficial

Aussie Beau
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