Complementary Trading Tools

The principles of trading in the direction of the trend are fairly simple and we recommend reading the book titled “Trend Following”, How Great Traders Make Millions in Up or Down Markets”, by Michael Covel.  Reading this book will give you a valuable foundation for successful trades with FEW.

The principles of analyzing trends with multiple timeframe analysis are also fairly simple. In order to understand these principles in more detail you can consult the technical trading article titled “Trading Currencies Using Multiple Timeframes” by Kathy Lien and Patrick Dyess. For a reprint of this article click on the link below.

http://store.traders.com/stcov226

Put it in a few simple words: When conducting multiple timeframe analysis the smaller trends are used to enter the larger trends or to observe how the larger trends are built. If a larger trend is established you would enter the trade when the smaller trends are in agreement.

Chart set up is very easy!  Here is our suggestion for putting together a set of reliable trend indicators that are available at no cost to you. These indicators can be used on any broker charting package available for free from almost all forex brokers and they work directly with the FEW reports.

This leads us to a question. What trend indicators can we use for the best multiple timeframe analysis? You can use the indicators that are available free to most traders on broker trading platforms at no cost or you may be used to using more expensive stand-alone software packages.  Either one will work with the FEW reports.

Making it real easy to set up the charts to trade with FEW reports!

If you don't know how to set up these indicators for your particular charting package that you use now you can contact your broker to assist you with setting them up. Explain to them that  you want to set up a green line that uses a 5 period exponential moving (EMA) based on the close using a line thickness and color scheme that is visually pleasing. Then set up a red line that uses a 12 period EMA based on the close using a line thickness and color scheme that is also visually pleasing. Apply these averages to all of the timeframes available on your current trade platform package.

Now you have a good set of indicators to get you started. We also have experimented with 6,13 and 7,14 time periods as well as the 5,12. You can certainly have a look at them when you feel like it, now that your broker has helped you set up the 5 and 12 as outlined above.

NOTE: If you would like to use the complimentary trading tools to mimic expensive software here is a set of equivalent time frames for direct comparison, these are approximate: Long term monthly is equivalent to W1, midterm weekly is equivalent to D1, Short term Daily is equivalent to H4, 180 to 240 minute is approximately equivalent to H1, 60 minute is approximately M15, ans so forth. If one of the FEW trading plans specifies a 90 minute and 180 minute chart for entry then you would use the M15 and M30 indicators to assist with the entry.

When using the FEW trading plans if a price alarm hits then look at the M1, M5, M15 and M30 time frames to guide your entry to guide your entry into the larger timeframe trends which are established or developing. The FEW reports will point these out. These two timeframes, combined with good money management will guide you through the entry into the larger trends or developing trends that the FEW reports are set up to plan entries for.

Free Forex Trend Indicators (Complimentary Trading Tools)  (13 minutes)

Now for some examples of trend indicators. We have set up some screen shots of our complimentary trading tools below. These screen shots were set up on a Metatrader 4 platform. Metatrader 4 platforms have 9 different timeframes built in to their trading platforms and our FEW reports and time frames work quite well with them. You can set up all 9 timeframes with our free indicators in about one minute per pair. Its quick and easy and we invite all clients to do this.

Screen shots for the complimentary trading tools are available by clicking here. These screenshots illustrate how these trend indicators look on a metatrader platform. There is also an illustration for setting up the desktop price alarms. Your broker will be happy to help you set up these indicators on Metatrader on any other charting package.

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