RISK DISCLOSURE STATEMENT / DISCLAIMER AGREEMENT · RISK DISCLOSURE STATEMENT / DISCLAIMER AGREEMENT Trading any financial market involves risk. This report and all and any of its

RISK DISCLOSURE STATEMENT / DISCLAIMER AGREEMENT

Trading any financial market involves risk. This report and all and any of its contents are neither a solicitation nor an offer to Buy/Sell any financial market.

The contents of this material are for general information and educational purposes only [contents shall also mean the website http://www.tradeonix.com or http://www.tradeonix.net or any website (“the sites”) the content is hosted on, and any email correspondence or newsletters or postings related to such website]. Every effort has been made to accurately represent this product and its potential. There is no guarantee that you will earn any money using the techniques, ideas and software in these materials. Examples in these materials are not to be interpreted as a promise or guarantee of earnings. Earning potential is entirely dependent on the person using the product, ideas and techniques. We do not purport this to be a “get rich scheme.”

Although every attempt has been made to assure accuracy, we do not give any express or implied warranty as to its accuracy. We do not accept any liability for error or omission. Examples are provided for illustrative purposes only and should not be construed as investment advice or strategy.

No representation is being made that any account or trader will or is likely to achieve profits or losses similar to those discussed in this report or on http://www.tradeonix.com or on the sites. Past performance is not indicative of future results.

By purchasing any content, subscribing to our mailing list or using the website or contents of the website or materials provided herewith, you will be deemed to have accepted these terms and conditions in full as appear also on our site, as do our full earnings disclaimer and privacy policy and CFTC disclaimer and rule 4.41 to be read here with. So too, all the materials contained within this course, including this manual, whether they appear on our domain(s) or are in physical form, are protected by copyright. "Warning: The unauthorized reproduction or

distribution of this copyrighted work is illegal. Criminal copyright infringement, including infringement without monetary gain, is investigated by the authorities and is punishable with imprisonment and a fine." We reserve all our rights in this regard.

Alaziac Trading CC, in association with http://www.tradeonix.com, the sites, content, and its representatives do not and cannot give investment advice or invite customers or readers to engage in investments through this course or any part of it.

The information provided in this content is not intended for distribution to, or use by any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation or which would subject us to any registration requirement within such jurisdiction or country.

Hypothetical performance results have many inherent limitations, some of which are mentioned below. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. In fact, there are frequently sharp differences between hypothetical performance results and actual results subsequently achieved by any particular trading program and method.

One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk and no hypothetical trading record can completely account for the impact of financial risk in actual trading.

For example, the ability to withstand losses or to adhere to a particular trading program or system in spite of the trading losses are material points that can also adversely affect trading results. There are numerous other factors related to the market in general or to the implementation of any specific trading program, which cannot be fully accounted for in the preparation of hypothetical performance results. All of which can adversely affect actual trading results.

We reserve the right to change the set terms and conditions without notice. You can check for updates to this disclaimer at any time by visiting http://www.tradeonix.com

Governing law: this policy and the use of this report / course / DVDs / eBook, provided in any form, and any content on the website are governed by the laws of the Republic of South Africa. If any dispute arises the parties have agreed to resolve it with the help of an arbitrator in the following location: Durban, South Africa. Further details on this are found under the Terms and Conditions on our site. Please ensure you have read and agree with all Terms and Conditions as set out on our site before using any of the materials. Your use and reliance on the materials is based on your acceptance of such Terms and Conditions and policies as appear on the site.

http://www.trprofitsystem.com/

www.tradeonix.com Buy The Dips Sell The Rallies

3

If you are new to trading, you will soon come across the saying "buy the dips and sell the rallies". Even if you are an experienced trader, this can be a difficult thing to get straight. First of all, what does this even mean... buy the dip and sell the rally. The market moves in waves, this you probably already know. When the market is trending, you will get large moves in one direction and small moves in the opposite direction. In a downwards moving market, or a downtrend, the market will make bigger moves downwards and smaller moves upwards.


4

In an upwards moving market, or an uptrend, the market will make bigger moves upwards and smaller moves downwards.


5

Dips In an uptrend, you will have the market making large moves upwards, these will be very profitable moves that we want to capitalize on. The moves it makes downwards will be much smaller and if you were to trade them, you would get very little profit, but most likely, you will lose.

In an uptrend, the downward pullbacks that occur along the way are the dips that we are looking to buy. As the price retraces, we can take advantage of the better price and the market potential to move in the trend direction. Buying the dips is our best chance to make money.


6

Rallies In an downtrend, you will have the market making large moves downwards, these moves can generally be money-makers. Moves in the opposite upward direction will be much smaller and can be very risky to take.

In a downtrend, the smaller moves up against the trend will be the rallies we want to take advantage of. Selling the rallies is us as traders waiting for the price to climb and then looking for a way to take a sell trade. Selling the rally gives us the best opportunity to take a profitable trade.


7

Identifying The Trend In order to tell whether or not we are looking at dips or rallies, we will first need to identify the trend direction. The definition of a trend can help us tell what direction the market is trending. An Uptrend: Progressively higher highs and higher lows.

While both the highs and lows are getting progressively higher, the trend is still up and buying is the only direction we will be looking to trade.


8

A Downtrend: Progressively lower highs and lower lows.

As long as the highs and the lows are getting progressively lower, the downtrend is intact and we will be looking for selling opportunities.


9

Moving Averages Higher highs, lower highs, lower lows, higher lows... this can all be quite confusing, so there are other less confusing options to identify a trend. Having two moving averages on the chart is a good way to very quickly tell what the direction the trend is moving. We don't want moving averages that are too fast that it will falsely show us a change in the trend direction, and we don't want them so slow that the trend can change without affecting the moving averages.


10

I like the 21 Exponential Moving Average and the 55 Exponential Moving Average 21 EMA and the 55 EMA In an uptrend, the 21 EMA will be above the 55 EMA.

In a downtrend, the 21 EMA will be below the 55 EMA.


11

Now that we can easily identify the trend direction, we can start to buy the dips and sell the rallies. The next question is how do we do this? There are a few ways that I will show you.


12

3 / 8 Moving Averages. We will add a 3 EMA and an 8 EMA to the charts.

Signals in an uptrend: When we are looking to buy the dips, we will first be looking to see that the 3 EMA crosses below the 8 EMA and then cross back up again. We would buy when the 3 EMA crosses back above the 8 EMA.


13

Stop losses in an uptrend: The stop losses in the 3/8 EMA crossover will be placed just under the swing low previous to the crossover itself.


14

Signals in a downtrend: when we are looking to sell the rallies, we will first be looking to see that the 3 EMA crosses above the 8 EMA and then cross back down again. We would sell when the 3 EMA crosses back below the 8 EMA.


15

Stop losses in a downtrend: The stop losses in the 3/8 EMA crossover will be placed just above the swing high previous to the crossover itself.


16

Stochastic Oscillator. We will add a 5, 5, 5 Stochastic Oscillator to the chart.

Signals in an uptrend: When we are looking to buy the dips, we will be looking for the Stochastic to cross upwards. The Stochastic Oscillator has a blue Stochastic line (this is called the %K line) and a red signal line (this is called the %D line). The crossover occurs when the blue Stochastic line crosses above its red signal line.


17

Stop losses in an uptrend: The stop losses in the 5,5,5 Stochastic crossover will be placed just below the swing low previous to the crossover itself.


18

In a downtrend: When we are looking to sell the rallies, we will be looking for the Stochastic to cross downwards. The blue %K line will cross below the red %D line.


19

Stop losses in a downtrend: The stop losses in the 5,5,5 Stochastic crossover will be placed just above the swing high previous to the crossover itself.


20

8 / 21 / 55 Moving Averages. We will add an 8 SMA (simple moving average) to the 21 EMA and the 55 EMA that we already have.

Signals in an uptrend: When we are looking to buy the dips, first, we will be looking for the price to close into the space in between the 8 SMA and the 21 EMA. Next, we will place a trade when the price closes above the 8 SMA. It's possible that the price will move lower into the space between the 21 and the 55 EMAs, in this case, we are waiting for the price to close above all the moving averages in order to place a trade.


21

Stop losses in an uptrend: The stop losses 8 / 21 / 55 Moving Averages will be placed just above the most recent swing low leading into the signal if the setup touches the 21 EMA. If the pullback was only inside the 8 / 21 space, the stop loss will be placed below the 21 EMA.


22

In a downtrend: When we are looking to sell the rallies, first, we will be looking for the price to close into the space in between the 8 EMA and the 21 EMA. Next, we will place a trade when the price closes below the 8 EMA. It's possible that the price will move higher into the space between the 21 and the 55 EMAs, in this case, we are waiting for the price to close below all the moving averages in order to place a trade.


23

Stop losses in a downtrend: The stop losses 8 / 21 / 55 Moving Averages will be placed just above the most recent swing high leading into the signal if the setup touches the 21 EMA. If the pullback was only inside the 8 / 21 space, the stop loss will be placed above the 21 EMA.


24

So there you have it, how to buy the dips and sell the rallies. Trading this way is how you will find you make most of your money, and now you have the ability to identify everything you need to know. You can now determine the trend direction and you have several options at your disposal as to how to actually trade the dips and rallies. Try them all out and choose one that you like. Once you find a favorite, stick to it, you will make money using it.

Documents

RISK DISCLOSURE STATEMENT / DISCLAIMER AGREEMENT · RISK DISCLOSURE STATEMENT / DISCLAIMER AGREEMENT Trading any financial market involves risk. This report and all and any of its