AnyTime Trading System v1.2

Anytime Trading System Trade the stock market anytime of the day or night.

A trading strategy that can be used 24/7 on the currency markets.

The Anytime Trading System | Markets Mastered

Contents 1. Disclaimer ............................................................................................. 3 2. Important Message ................................................................................ 3 3. Introduction .......................................................................................... 5 4. Goals/ The Next 6 Months ..................................................................... 7 5. Opening a Trading Account ................................................................... 9 6. Trading Platforms ................................................................................ 11 7. Your Next Step – Demo Account........................................................... 13 8. Configuring Your Charts ...................................................................... 15 9. Trends and Reversals ........................................................................... 18 10.

Timeframes ...................................................................................... 21

11.

Candlestick Patterns ......................................................................... 22

12.

Divergence ....................................................................................... 25

13.

Any-Time Basic Strategy ................................................................... 31

14.

Targets & Stop Losses ....................................................................... 37

15.

Reversal Patterns .............................................................................. 39

16.

Extra Strategy ................................................................................... 48

17.

Conclusion ....................................................................................... 51

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1.

Disclaimer

Commodity Futures Trading and Options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don't trade with money you can't afford to lose. This is neither a solicitation nor an offer to Buy/Sell futures or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed in this manual or any web site’s mentioned, including www.marketsmastered.com. The past performance of any trading system or methodology is not necessarily indicative of future results.

2.

Important Message

Firstly, thank you for purchasing my Any-Time trading system, designed to trade virtually any market while spotting opportunities to get in very close to the changing of a trend. My original “Any-Time” system that was released three years ago in 2009 had been traded by myself for nearly ten years previously. After my “trendFX” collection of strategies came onto the market in 2011 the “Any-Time” system took a bit of a back seat as the newer system became a very big seller. I had a growing interest in price action trading and it is now time to add some recent developments of mine to this system – to make it more reliable when spotting chances to enter the market after a trend-change. As well as the ‘standard’ system set-up (similiar to the original “Any-Time” strategy) there are SIX additional ‘patterns’ to look out for at trend change time, plus an additional strategy you can use independently in your every day trading if you wish – it gives you some extra pips after you’ve spotted the trend change and you’re already in the market.

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So all in all, there are EIGHT different patterns to trade – so there should always be something to spot when you’re watching your charts. As I will show you later on, I have my favourites instruments/indexes that I have enjoyed trading over the past 20 years of trading (it is now 2012) and I would recommend you try these as well. Once you feel that you have the strategy nailed, you can then experiment with any you feel demand your attention. You can use historic charts to test your choices before you embark on demo trading. There is NO padding or superfluous content in this trading system manual, EVERY SINGLE WORD is there for a reason as they are important. Please do not skip over any sentences, paragraphs or chapters as you need to read everything (in order) contained in this eBook so that you can learn my system completely without having to constantly refer back to this manual over the next few weeks. In the past, I have found that when customers first download a new trading system manual (like the one you have here) they will first go straight to the index, and then chose the most interesting chapters according to their own criteria – usually the one with the strategy explanation – and read this book in rather a haphazard fashion. Sorry but this is not the way to get the most out of this manual. I would encourage you to read this eBook from this point, page by page right through the end, doing the exercises as I have laid them out. This way you will not miss out any part of important information, and you’ll learn the strategy exactly as I designed it. It is also said that any system is 20% strategy and 80% in your mind. This means that even though you may learn the actual strategy very well and know every part of it, you can still fail due to the tricks your mind will play on you as you learn to trade. Chapter 6 will provide you with a solution to this problem as well as some additional reading I can provide for you – just email me for some excellent trading psychology books.

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3.

Introduction

My system, in a nutshell, will enable you to earn small, regular amounts of money from virtually any market you can bring a chart up for, although I will give you a few recommendations later on, in a subsequent chapter. I would suggest that your target, for the first 3 months or so, will be just 20 pips (points) per session, although some learners have started with a slightly smaller daily target and I will expand on this theory a bit further on. Having a small, achievable target will enable you to learn this strategy without the stress of large monetary targets and so you should not be troubled with the new trader’s two worst enemies – fear and greed (more of these troublesome pair later) Due to these potential problems, it is also wise to trade the strategy using a demo-trading account. These types of accounts enable you to trade with ‘pretend’ money in your demo-account. There is no stress when you place a trade, and will show you how you should be trading with real-money, that is without emotion. Over the past 4 years I have taught thousands of customers how trade like a professional, and around 99% of people who ignore this advice fail in their quest to earn money from the markets. It is absolutely imperative to trade this strategy with a demo-account initially, even if you have been trading successfully for over 5 years. If you are a seasoned trader, your demo trading period can be greatly reduced, but you still need to use the demo platform for a few weeks. Trading the markets should be treated just like starting any other small business – you are going to be your own boss and so are completely responsible for ALL your actions and decisions. Starting in business is not easy (otherwise everyone would be doing it) but you have a head-start over most people as the basics of your new home-based business (trading) have all been worked out for your already be me, so in effect you are buying a franchise, as you have a proven business model to follow. I know it works as

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I have trodden exactly the same path as you are about to embark upon. There is one difference though – I had NO guidance whatsoever, so it took me a bit longer than it should have – but I did learn some very important lessons along the way, which I can pass onto you. As mentioned before, you are being given a complete blueprint of your new home-based business, so you’re really buying a franchise, but without the extremely large investment normally required – my local McDonalds cost the operator £1.5m to set-up in 1998, and this is for just ONE site. And he still pays a franchise fee EVERY month on his turnover, but with this opportunity all your profits are yours to keep and the money you have paid already is all you are committed to paying even though I will give you unlimited email help for as long as you need it. Additionally, you have no worries about renting expensive premises (factory/offices), no business rates, no staff hassles, no tax or VAT commitments (in the UK), what you earn is all yours to keep, so follow the simple steps in this manual and ensure you get out of the markets what you are owed. And what you are owed by the markets is entirely dependent on how well you trade those markets, so please read and absorb every word in the manual. In return for these fantastic rewards you have to commit to a learning programme that I know works. I would recommend you spend at least 3 hrs per day reading the manual and completing all the tasks page by page. This can be done before/after your day job, or if you are lucky enough to have flexible working hours, try to concentrate all your learning/reading in one session of 3 hrs instead of splitting your session up into 2 or 3 shorter sessions. At the weekend, try to fit in another 3 or 4 hrs of study – as well as studying charts for patterns and behaviours from your favourite indexes. If you have no favourites yet, please let me know and I will steer you in the right direction.

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You need somewhere to work that is free from distractions, and encourages you to work and study quietly. I find I work best with no background noise, although I will watch Bloomberg financial news for short bursts during the day, just to keep my eye on any important news. Try to find somewhere in your house that’s free from family noise, TV and radio broadcasts and also somewhere your family know that you go to work on your own. Your trading education is going to lead to a great life in the future, so get the basics right at the beginning and you’ll reap the rewards very soon. The skill level you need to reach is where you can sit down at a screen and within a few minutes, boot up your computer, load the (free) trading platform and trade for an hour or so to reach your daily target. Obviously you may not always reach your target in this small time, but with a positive expectation, you’ll be surprised just how often it does happen like this.

4.

Goals/ The Next 6 Months

This now brings me onto a very important subject – Goals. We all have them and they have played an important part in your life so far even if you did not realise it. Think back to when you were at school – you may have had an ambition to be (say) a pilot, so you would have found out what exams you need to pass, and where to go to receive training after you left school. The information that you gathered were steps in the goal to be a pilot. I have used the story of wanting to be a pilot as I personally know two people who had this goal while at school. One of the people took all the steps to get through to the RAF induction course, he passed all the relevant exams, and was probably over qualified to become a pilot in the RAF, his ultimate ambition was to become a harrier pilot and that was his total focus for over ten years leading up to this point, when he was 17yrs old.

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He failed one part of the RAF selection process and was offered the post of trainee helicopter pilot, but as he was dead set on flying harriers, he turned down the opportunity and today works in a shop, with all the drive knocked out of him. This should be a lesson to you all, if at first you do not succeed, examine what happened, correct it and then keep going for your goal. Examine all alternatives and be realistic, as 2nd choice maybe better than your original goal – they are phasing out harriers remember ? My other friend did not have the skills to be an RAF pilot so instead became a aircraft mechanic for 10 years as it kept in close to the planes he loved. When he left the forces he became a policeman but never lost sight of his goal to fly planes. In 1980 got his private pilot’s licence after saving a huge amount of money over a five year period. Today, I share the ownership of a small Piper Archer light aircraft with him and as he has retired from the police force, flies at least 3 times a week. He never lost sight of his goal and went through some pretty tough financial difficulties to stay on track and see his goal through to the end. You need to have the same ambition with whatever goal you have chosen as your main life focus. If this goal of yours is Financial Trading, please examine yourself thoroughly – do you really want be a trader or is just a way for you to earn life changing amounts of money ? If the latter is true, you may not have the staying power to see it through to the end. If you truly want to be a trader for better reasons, and really enjoy trading the markets – pitting your wits against the greatest trading minds the world has to offer, then there is a great deal of work in front of you. You need to look forward six months and also one, two and five years. It is well known in the field of goal setting that you should begin your goalsetting process with your 5yr goal. One you have settled on how that’s going to look like, you can then work backwards, towards a picture of what your life is going to look like in two years time. Then come back in time to closer © Markets Mastered 2012

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to today and work out how your life is going to look like in one year and six months time. I have a copy of Brian Tracy’s excellent book on the subject of ‘Goals’ and if you do not yet have a copy, please email me and I will send one over to you. In the book you will go through your long and short term goals, and I would encourage you complete this part of the book so you can see a clear path to your ultimate goal – to be a full time professional financial trader. Part of the goal-setting process is to go through your daily tasks – which is all the learning and reading of this manual together with practising to trade the markets with this strategy. So let’s get going with the trading system.

5.

Opening a Trading Account

If you already trade, there is no need to read through this chapter, but if you are new to the trading world, you will need a trading account to be able to trade this system in the market. If you reside in the UK I will list a few companies in a moment. If you are living in any other country please email me with full details and I will suggest some trading companies you can open an account with. In the UK I would suggest you use GKFX, Capital Spreads or IG Index. These company’s trading platforms are all reliable and I have used all of them at some stage in the last five years. You can visit the websites of these companies using the links below: GKFX Click Here

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Capital Spreads Click Here IG Index

Click Here

You can also use these companies if you reside in the UK Alpari CMC Markets Finspreads City Index To begin with you will just need a demo account/trading platform and I have personally tested the one from GKFX and found it to be completely reliable. The company use an MT4 platform, but you do not need anything as complicated as this if you are going for a company you have chosen yourself. The indicators I use in all of my systems are very simple, so all you need is a very basic platform, but the MT4 one is very easy to navigate to I do recommend you start with this one. As times goes on you will obviously need a ‘real’ trading account, and if you have not opened one yet please email me and I will give you further information to ensure you are not turned down at your first attempt. The FSA in London have clamped down quite heavily on people opening spreadbetting accounts, but I can show you a way to apply for one without being turned down.

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6.

Trading Platforms

As mentioned in the previous chapter (above) you do not need an over complicated trading platform to be able to trade this trading system – or any of my other strategies. The indicators I use are a few of the popular ones (with unusual settings) so platforms from Capital Spreads and IG Index are good enough, although I prefer the MT4 platform as it is so user friendly. This is what the two different types of popular platforms look like – first and MT4 one then a basic one from IG Index. Please increase the magnification on all illustrations to around 125-150% - this is done at the top of this page.

This is an MT4 platform from Metatrader. GKFX and Alpari use this platform. Although it has many complicated functions, you can also use it as a basic resource for your trading. © Markets Mastered 2012

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The chart below is an example from IG Index.

As I have mentioned previously, the settings you need for your “Any-Time” chart are very basic, but you still need to know how your chosen platform works. To do this I recommend you spend a couple of hours going through all the functions, and if you do come against a problem, please refer to the help section that all platforms have – this is a lot quicker than emailing the trading company you are using, and stops you wasting time waiting for an answer for something you can probably work out yourself with a bit of application and hard work. Getting to know your chosen platform now, will give you an advantage later on as you’ll be completely conversant with all its functions, and you will not waste time in the future looking for answers. You would not do a day-job without learning all about the tools you will be using, so why should trading

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be any different ? This is the machine you’re using for this job, one which can become your full-time career (if you really want it to) So now you need to spend a few hours learning all about your chosen platform as soon as you have downloaded it – or if you are using IG or Capital Spreads type charts, you will just access the charts from your trading account on their websites after logging on. You can access these charts by opening a demo account with your chosen trading company – which I’ll cover in the next chapter. Remember this is your job now, so make sure you’re an expert with the trading platform.

7.

Your Next Step – Demo Account

I have talked a lot about demo/practice accounts, and if you already own one of my other systems you’ll know why I’m so keen on them. To enable you to be in the correct mindset, and not fall foul of the two enemies of all new traders, you need to start trading this system with a demo account. I will give you a quick scenario to illustrate why I believe you need to trade without emotion. You have back tested your system, you know its good and you are going to trade it for the first time with real money. Everything’s set and you see your first signal, so you place your trade. It get stopped out, but that’s ok, all trading systems having losing trades. You get back to your charts and watch for more trades abiding by your strict rules. An hour later you see another trade set-up, it’s exactly what you need to enter a trade, so you once again place your trade. This time it goes in your direction for 10 pips, you’re overjoyed – at last you are going to be a winner.

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Then the market reverses and very quickly your 2nd trade gets stopped out. What’s happening – this is very unlucky you think. Still never mind, you’re going to call it a day for this trading session and examine the trades you’ve taken, just like all the trading books you’ve read have told you. You never worry about a run of winning trades, so why worry about two losing trades. So the next day, you’re all ready for the upcoming trading session. Ten minutes in and you see a trade set-up and it triggers a trade. You’re in once again and the trade looks like it’s going to do well. Fifteen minutes and you’ve almost hit your target – great, your first winner this week – but then the market spikes and the price hits your stop loss ! What on earth is wrong with this trading system ? You cannot believe what’s happened to your trading system. The market is going against you all the time you think. The only thing to do, you believe, is to paper trade the next set-up you see. That way you’ll not lose any more money. A trade comes up and you enter it in your head, watching carefully and noting down on paper the entry level plus stop loss and target price. Guess what – after 20 minutes this trade his your target of 30 pips profit. You cannot believe what you’ve done. You were too involved emotionally in your trading and you panicked, ans were too scared to risk any more of your money in the trading account. You were not ready to traded with real money. This is why I recommend you trade with a demo account is to combat the potential problems similiar to the story above. The story is told to me many times every month by people who have bought different trading systems over the past few years, and even if the actual systems were reasonably profitable, they still came out losers, wasting their trading accounts over and over again. To combat these psychological problems, I recommend you demo/paper trade this system for at least 70 trades. This means that if you trade for 5

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days per week with an average of 2 trades per session, you will complete the requisite amount of trades in under three months. Once you have completed the demo trading part, you should be trading the system with confidence, entering trades exactly as laid out in this manual – and more importantly, not having any emotion when entering or exiting your trades. Working your trading platform should fill you with the same emotion as you have when you go through the stages of making a cup of coffee. Do you get butterflies just before switching on the kettle, wondering what the outcome is going to be ? Do you worry if you spill the coffee after making it ? No, of course you do not, you simply make it again. When you get to this stage of emotion, you’re ready for real trading. If it happens after 50 trades that’s ok – some people achieve this level quicker than others. Conversely, if it takes you 100 trades to reach the required level, do not worry, it will take as long as it takes, and the most important thing to remember is you cannot move on until you have this part of your training sorted. There’s NO rush – just take your time and get it completely right. I am here to advise you if you’re not sure, just email me.

8.

Configuring Your Charts

As I mentioned earlier in this eBook, the charts you will be using are very simple, and all you’ll need is some Moving Averages, a MACD and an RSi indicator. If your familiar with my other systems – or you trade already – you can skip this chapter and just configure your charts using the following data: Moving Averages:20 EMA 50 EMA RSi: 9 period MACD: 5 19 1

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If you’ve had a good look at your chosen trading platform you could probably have a go at configuring your own chart. If you have taken my advice regarding the MT4 platform, you can add the MACD and RSi to the chart like this:

To add the moving averages as well (see chart below)

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REMEMBER TO INCREASE THE MAGNIFICATION TO 125-150%

Your chart should look like this:

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The Anytime Trading System | Markets Mastered

If your chart does not look like this, please go back and check all your settings.

9.

Trends and Reversals

As you know, this system will help you spot trade opportunities for taking advantage of trend reversals, and the following illustrations will show you firstly how to spot a trend. The picture below shows an up-trend (also called ‘Long’ or a ‘Bull-Trend’) then a down-trend (‘Short’ or ‘Bear-Trend’) with a period of volatility inbetween.

To practice spotting these trend, I would suggest you go through some random charts on your trading platform – I am using the S&P500 index in this example as it does trend a great deal of the time, and is one of my favourite instruments – many customers will know I have based an entire trading strategy on this one instrument. It respects support and resistance levels and does not display a great deal of volatility.

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Once you have the general idea regarding trends, you can start to learn what a trend change looks like. Usually in a trend you will get a succession of higher highs (HH) in an up-trend and a lower lows (LL) when the trend is downwards. When these HH’s and LL’s stop appearing, you may have a change of trend or a period of consolidation. The next chart (below) shows you one of the points to watch for once a trend has been going for a while.

In the chart above there is a down-tend, and it is still ok at point A. At point B the price reverses instead of carrying on down, so it is the first alert that the trend may be getting weaker. Once price goes above point C, you can be fairly certain that the trend has now changed to a bull-trend, although nothing is ever certain in the trading world. The price then continues up with consecutive HH’s all the way up to the final HH I have marked. Once the price drops below point D, we can presume that © Markets Mastered 2012

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the trend has changed again. Both times that the trend changes on this chart – there is an “Any-Time” pattern present, and in subsequent chapters I will show you how to spot these patterns every time plus the six other ones that are included in this trading system. Open any chart and you are bound to spot a few general trend changes. The chart below was one I just chose from my own MT4 screen and on it you can see 5 reversals and I have marked 4 of them on the chart. To spot a trend change is fairly easy, but there are some things that have to present to begin with, and one of those is a certain candle-pattern. On the chart below, only two of the marked reversals have this pattern – can see what I am referring to ?

Don’t forget to increase the size/magnification of this document so you can see these charts clearly.

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Well, the second and fourth reversals have the correct candle-pattern as you may have guessed. You NEED to have a candle-pattern that has a ‘longshadow/wick’ as this shows that the participants in the market have changed bias – for example where the sellers become weaker as more buyers come into the market (in an established down-trend), or vice-versa in an up-trend. I will cover actual candle-patterns I personally use in more detail further on in this document. Below is a document I prepared many years ago to help existing customers with regard to spotting trends nd I think it would help you too in your understanding of trends. Here is the document:

10.

Timeframes

If you are a seasoned trader, or you already trade my trendFX system, you will probably have your own favourite timeframe(s) to trade with. For your info, I would not recommend you go any lower than 15 minutes in your choice of timeframe, but you can go as high as daily/weekly charts.

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Trading on 3 and 5 minute charts can involve you a lot of ‘noise’ which can end up with you being stopped out too frequently. I personally like 15m/30m charts with this series of strategies as it suits my way of trading, I enjoy trading in the short term, so my trades typically last for between 1hr to 3hrs and I do not like to have positions running overnight. One useful reason for using an MT4 platform is that it enables the user to swap charts very quickly once they’ve been set-up. If there is not much happening with my normal 15m/30m charts I can very quickly look at a one or four chart within seconds. This gives me the chance to spot possible trades that I would no tbe able to do with a ‘normal’ trading platform such as IG Index’s. You can also set-up your required instruments/indexes beforehand, so they are ready for your forthcoming trading session. You only have to this setting-up once and they are all there every time you fire-up MT4. As I mentioned earlier, it si a good trading platform to use, and you can access it from either GKFX or Alpari (website addresses in Chapter 5).

11.

Candlestick Patterns

Part of my “AnyTime” strategy uses Japanese Candlestick Patterns but I use a modification of these candlestick rules to help with profitability. This means I do not use all the patterns that Steve Nison has made famous, these ones here below:

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If you magnify this document and still cannot see each candlestick pattern in the above picture, please email me and I will send you a better copy The difference that I have in the “Any-Time” strategy is that while I will possibly use most of the patterns above, if they are going to be useful to me when trading this strategy, ALL candle patterns MUST HAVE a long shadow/wick attached to it. The following collection of candle patterns are the ones you will use most of the time, and they are in the chart below:

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I have labelled each pattern, and they are the ones I use most of the time when trading the “Any-Time” strategies. A = Spinning Top B & E = Inside Day C = Hammer/Hanging Man D = Doji If you see (say) a Thrusting or Piercing Line pattern, it can be a valid pattern for this strategy but it MUST have a long wick/shadow attached as well. This rule has been seen to work over the last twenty years of my trading with candlestick charts. Here are some more patterns – the collection of ‘Long-Shadows’ are fairly familiar to most new traders, but I also have illustrated a few more rare patterns. This is the first time I have mentioned them in one of my system manuals.

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As you can notice, these ‘newer’ patterns are Inside & Outside Days together with their cousins, the ‘double’ variation of each one. As before, you can only use these patterns on your chart if they have a ‘long-shadow’ attached. Well that’s the first part of the basic “Any-Time” strategy. Next we come to the other important ingredient, and then we’ll get onto individual reversal patterns.

12.

Divergence

The other main part to the strategy is oscillator divergence. Traditionally I have used a MACD for spotting divergence over the last 13 years, and this indicator will still stay in use, and it is now joined by the RSi (Relative Strength Index) and gives us some idea of how over sold or over bought a particular instrument is. I will be using the RSi for these levels as well as oscillator divergence. As we are looking for trend reversal, we will need to be able to spot ‘Regular’ divergence.

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Quite simply, it can be illustrated in the following way: I have illustrated earlier that a trend consists of higher highs (HH’s) and lower lows (LL’s) in price movement and so long as this keep happening there is a trend in place. Well, divergence will give you a clue when the trend is coming to end, and when the price is still producing HH’s and LL’s you can see the oscillator making a lower high (LH) or a higher low (HL). In this system of mine we are going to use the MACD and RSi. Please read that last sentence as it is the basics of regular divergence, so you can see the theory is quite simple – even though a few people seem to have trouble putting this theory into practice. To illustrate regular divergence graphically, you can see below the two types of divergence, the first in an up-trend, then in a down-trend.

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Here is a chart showing the same divergence. It is the S&P500 which is a good instrument to start your trading with.

Price (at the top of the chart) has made another Higher High but the oscillator below has not followed it and has now made a lower high, indicating to you that price momentum is not as strong as it should be and there may be a fall in price soon. In this case, price does break down after the long shadow candle pattern at the top of the end of my divergence line. Entry for trade would be ONE PIP below the low of that candle, with stop loss set ONE PIP above the high of that long shadow candle. These entry and stop loss are used universally across this system, and is also drawn in on my candlestick Patterns document on page 19 The other type of regular divergence is when price is in an established down-trend, but the strength of the price move shows to be slowing down – you can see this when the price still keeps moving down as though it is still in the trend – making further lower lows (LL) but the oscillator changes direction and makes a new higher low (HL). Here it is in an easy to understand illustration:

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And now you can see the same divergence in an actual chart on the next page – it’s the S&P500 again.

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The price has moved down steadily over the past evening’s trading session, and after the oscillator divergence stops coming down and shows a higher low, you can see how the price follows the early direction change of the MACD (oscillator) line. You can see in both examples, the point where price changes direction has a ‘long-shadow’ candle of some sort to give added weight to the direction change. The illustrations so far on divergence have been using a MACD, and I have also included the RSi indicator to assist with divergence as well. The RSi has an added advantage over the MACD as it will show you overbought (OB) and Oversold (OS) levels with regard to the price as well as indicating possible divergence. This means that you can see when there may be a price reversal in a trend by watching the RSi and noting any reading above 70 (overbought) or under 30 (oversold) Most charting packages will automatically show these OB & OS levels on the RSi and usually they are set at 30 and 70, but if there are no such levels to © Markets Mastered 2012

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be seen when you open up the RSi on your chart, you can manually place them on and then save them. To give you one more filter for potential trade set-ups, the divergence line that you draw on the RSi must be over (under) the OB (OS) line at the beginning of the divergence line, and below (above) the OB (OS) line at the end of the divergence line. To enable you to understand this concept easier, it’s better to see it on a chart, and as usual please increase the magnification at the top of this page so you can see all important details.

This is clearly showing the price in a down-trend, so for an up-trend the process with the RSi is opposite – ie: the RSi line needs to be over 70 (OB) at the beginning of the divergence line. At the start of the divergence line in the chart above it is under the OS line (30) on the RSi but at the end it is on the 30 line, which is signifying a good

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signal as we could see a rise in the RSi which means the price should go the same way. We also have divergence with the MACD so that’s another reason to get into a trade. As you should now have your charts all configured with my settings, you must now spend an hour or so looking through some charts to see how quickly you can spot either MACD or RSi divergence with the price (candles) It may sound unbelievable now, but in a few short weeks you will be spotting this type of divergence on any chart almost as soon as you open up the chart. To get to this point in your education means you need to spend a few hours every day looking through your charts. Do not skip through this part of the learning process, it is very important and also a large part of the overall strategy. Now that I have explained the candle patterns together with the theory of regular divergence, you’re ready to put them together and learn about the main strategy of this trading system.

13.

Any-Time Basic Strategy

The basic strategy is quite easy to put together, as firstly you should have learned which candle patterns you are looking for, and when you spot this together with regular divergence, you have the start of the trade. You will notice that you also have two moving averages on your chart as well, and these are here for two reasons. Firstly, you use them to spot whether the price is in a trend or not. In the chart below, we have the moving averages all over the place, constantly crossing one another. There is no trend in place and you should stay out of

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this market and perhaps look at other instruments for alternative trade opportunities.

The chart below is a good example of an established trend, the moving averages are travelling along in the same direction without constantly crossing over each other. You will also notice that in an established trend, the moving averages get into an ‘order’ whereby the 20 EMA will be above the 50 EMA in an up-trend and will be below the 50 EMA in a down-trend.

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The Anytime Trading System | Markets Mastered

Here is the chart with a good trend, and the job of this strategy is to point out trades to you that will have a good chance of profitability – while showing you where to enter as the trend is changing. Obviously not all trades are going to work out as we wish, and that is the other reason I have the moving averages on the chart. So when you are watching your chart for possible trades, keep an eye on the two moving averages to make sure they are in a steady incline or decline (depending on what the trend is at the time). You can also use the 20 EMA as a price target for any trades, as we know that not all trades you take will succeed in showing you a complete change of trend direction. As you can observe by looking at a wide variety of your own charts with these settings on them, the price in a trend will keep returning back to the 20 EMA. This is an established fact, and that is why we can use it to help in

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this strategy. We can take advantage of these small retraces that occur in most trends by choosing out trades carefully, and when all the criteria are met, we can enter a trade using the 20 EMA as our target. I have marked out a few divergences (marked 1, 2 & 3) in the chart below, and you can see that the price has retraced back to the 20 EMA before resuming the original trend, until divergence 3 where the trend eventually broke down and started developing a down-trend. For the oscillator divergence, you can use either the MACD or the RSi, although there are a few ‘extra’ rules to observe when using the RSi, so for the moment I just used the MACD. Here is the chart – please observe it carefully how the price often returns back to the 20 EMA and to a lesser degree, it also occasionally returns to the higher MA

This is the basics of the “Any-Time” system, you need a valid candle pattern as shown in chapter 11 together with some oscillator divergence, and a

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precise target for each trade. My original Any-Time system had just this as its main strategy but with this update (I am writing this in 2012) I am going to add some more patterns for you to use which will make this complete system a lot more reliable and so give you a high percentage of winning trades. After you have traded the system for a few months, you will also develop a ‘sixth-sense’ with your favourite instruments meaning you will be able to ‘guess’ what the price may do next. This phenomenon is hard to explain, but you will know when you have reached this level of trading – and to help it along I would encourage you to always trade while trying to be “In The Zone” – and what I mean by that is sitting at your computer with NO distractions (even no TV or radio on) with all your focus on the chart in front of you. When you reach the required level of concentration, you will not notice outside noise, you will be completely immersed in the movements of the markets. It will take a few weeks to get to this level, but it is well worth the work to achieve this. I have now two screenshots to show what a typical “Any-Time” trade looks like. First there is a reversal trade when price is in a down-trend.

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PLEASE INCREASE THE MAGNIFICATION

Below is a chart showing a reversal in price when the trend has been a ‘bulltrend’ (upwards).

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The Anytime Trading System | Markets Mastered

As in the previous chart, we have all the components present for a trade signal. There are candle patterns with ‘long-shadows (1) with divergence lines on the RSi and MACD (2) (4) and the RSi conforms to the OB and OS rules I have laid out above. Please use your own charts now to look through and find other examples of the strategy.

14.

Targets & Stop Losses

As I have mentioned briefly before, the target for each trade is the 20 EMA and the chart below shows three trade set-ups using just the MACD for divergence.

The candles marked A and B are valid patterns and there is also divergence present. As the target for these possible trades is the 20 EMA you need to ensure there is enough space between the entry price for the trade and the 20 EMA line, otherwise the risk/reward for the trade is not worth contemplating.

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For example, if the stop-loss is 20 pips and the distance to the target is 12 pips, it is really not worth taking on the trade, but conversely if the stop-loss is just 10 pips and the distance to the 20 EMA is 22 pips, we have a good risk/reward and so the trade is worth taking if all other things are in place. You can see that the candle pattern marked C on the chart above is right on the 20 EMA line, so at first glance you would say that this trade is not worth taking – and you would be partially correct. The position of the candle pattern C also signifies that the trend may be breaking down as price has already on the 20 EMA and later on in this manual I will show you ways of taking advantage of this situation. To reiterate the stop-loss rules, they are dependent on the candle pattern that you are using for the particular trade in question, and to illustrate the general rule, please see the picture below. This illustration also shows how to work out the entry level for your trade with each kind of candle patterns. I have just included a few well-known patterns but with this theory, you can work out any stop-loss or entry level now.

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PLEASE INCREASE MAGNIFICATION TO ENABLE YOU TO SEE ALL DETAILS ON THIS ILLUSTRATION ABOVE

15.

Reversal Patterns

To help with the profitability of this entire strategy, I am now going to introduce to you a final part of the system. This involves reversal patterns. To recap, so far in this manual I have shown the basics of the strategy, the candle patterns that you need to see on your chart, and then you need to have divergence present as well. Now I am adding reversal patterns, so you have an extra ingredient to help raise the win/loss ratio in your favour. There are 6 main patterns to use and they are outlined below. There is also an extra ‘strategy’ that will help with extra pips/points once you are in a trade, or you can use it as an entirely separate strategy if you wish – it works on any instrument you want to use. Anyway – here are the 6 main patterns:

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Some of these patterns will be familiar to you, but I will show you how to increase their profitability by using a combination of resources to give you a win/loss ratio better than the original system.

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Head & Shoulders Pattern. This is one pattern that you are probably familiar with, but if you add a few extra components you can make it more reliable.If you have an OB or OS reading on the RSi at the point of the ‘HEAD’ part of the price chart – it will increase your chances. Divergence on the MACD or RSi will also help, but you MUST have ‘long-shadows’ present at all the head and shoulders points. The chart below also shows entry levels, ordinary and safe. As usual – please increase the magnification to see ALL relevant points.

Support & Resistance Line. Quite a simple concept and one that works very well on my favourite instrument – the S&P500 index. Here’s the set-up on a chart (on the next page).

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The Anytime Trading System | Markets Mastered

In this chart, I have marked some good trades and also some that do not quite make the grade, and before you move on, can you decide for yourself which ones I would have rejected. I will give you the answers a bit further down, but first a few notes. I prefer to have at least three candles at the same level although four would be better, all these examples are using four candles, which on a 15min chart means we are seeing price action over 60 minutes which is a reasonable length of time to make a judgement. Also remember the length between the candle pattern and the 20 EMA and make sure you have enough space to get a good profit. If you want to use divergence, you need to have at least 7 candles in the support/resistance line.

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The Anytime Trading System | Markets Mastered

Right the answers to the puzzle above, the good signals on the above chart are trades marked 1, 2, 3 and 4 although I have not measured the profits that may be possible before the price hits the 20 EMA. The others have small mistakes in the signal and I will leave you to work out what they are by going back through this manual – or even better, you should be able to remember the rules anyway. V-Formation. This pattern occurs quite a lot, and here it is in a chart:

It’s a fairly simple pattern and there is no divergence, but you can see abnormally large MACD movements as you can see on the chart above at trades marked 2 & 3. The main point to note is that the RSi is either OB or OS at the time of the candle/system pattern. As before, spend an hour or so now to look for similiar patterns on your own chart before you move onto the next pattern.

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DTB – Double Top/Bottom This pattern is similiar to the support/resistance and H&S patterns but it is normally a longer pattern (amount of candles) than the S/R line pattern. Firstly, here is the chart showing the pattern:

The first part of the rules is to ensure that the first point of the divergence line on the RSi is OB or OS as I’ve shown in the chart above. You need a minimum of seven candles in the pattern and also some divergence. Obviously, as with all these patterns, you NEED TO HAVE a long shadow candle pattern. TTB – Triangle Top/Bottom. This is not such a popular pattern, but I believe it is still worth including in this manual. The main point to note here is that you need to have the usual ‘longshadow’ candle pattern with OB or OS on the RSi. There may be some

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divergence but it will probably only occur less than 50% of the time in my experience. Here is my screenshot of the TTB pattern.

As before, you should now spend an hour or so looking for this pattern on your own chart before moving on to the next pattern. Doing this will help you remember the pattern in the future. UTB – Unequal Top/Bottom Right – I have saved the best until last, as this pattern is one I have traded on and off over the past 15 years. This is a pattern which occurs quite a number of times on the S&P500 and Gold charts and it will usually follow onto to another of the patterns I have included in this system manual in a few pages time. This pattern happens just before a reversal usually and in an up-trend will form a new high before moving down slightly – and then will try to get to the same level as the previous high, but does not quite reach it.

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In a down-trend the price will make a new low and then retrace, before trying to get back to that previous low. If it fails and then starts to go back up, we then have the possibility of price forming this UTB pattern. In the chart below, there are 4 different examples of this pattern and shows you just how many times it does appear on a wide variety of instruments. As usual, look for this pattern on the S&P500 index first over the next hour as you will see quite a few examples. As there are many examples on the chart below, please increase the magnification as before.

As you can see, there is NO divergence needed on this pattern although some OB/OS readings would be very handy. The chart below is one I would like to include as it shows that when you have a seemingly ordinary “Any-Time” signal (a basic one shown in chapter 12) on closer inspection it can be seen that parts of the trade signal are actually UTB trade set-ups.

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The Anytime Trading System | Markets Mastered

The first trade set-up I have marked is actually a FOUR candle UTB trade setup which hits the 20 EMA before retracing, and then going further down. Around 4hrs later there is another set-up which on closer inspection is a UTB pattern on its own again, although the pair of patterns together to go to make a basic “Any-Time” system trade set-up. If you do not see the patterns at first please magnify the chart and look again, you will see it. Here is the chart:

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The Anytime Trading System | Markets Mastered

Please spend some time with this pattern so as to understand it completely as it does occur a great deal of the time. Another chance for earning pips from the market comes after the UTB pattern, and most of the others as well – and here is the explanation of it. Just scroll down.

16.

Extra Strategy

This bonus at the end of the manual will give you a chance to get into the market if you missed the reversal pattern, or if you’re already in the market when this pattern occurs, you can stay in your trade for some extra pips. This little strategy is worth the price of the manual on its own !! It’s called: The FR – First retrace. Once price has reversed, and you can normally see its heading the way you thought as it would have gone through the 50 EMA, you need to look out for this pattern, the FR. It occurs quite close to the reversal and it is simply the ‘first-retrace’ of the price after a reversal.

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The Anytime Trading System | Markets Mastered

I will show you a few examples on charts below, and then you need to spend an hour or so looking out for them on your own charts. The chart below shows an normal UTB set-up and once the price has reversed as the UTB has predicted, you can then see the FR set-up.

The good thing about this set-up/pattern is that even if you miss the reversal pattern, you can still join in and earn some pips in the market! Below is another set-up:

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The Anytime Trading System | Markets Mastered

Examine this chart carefully after magnifying it – and you can see the 1st retrace after the price reversal is shown clearly, together with the entry level. On the chart below, I show another set-up and also clearly mark the stoploss level, but when you work with candlestick patterns you will instinctually know where to place your stops and entries.

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17.

Conclusion

I hope you have enjoyed reading through all the parts that make up this very reliable trading system. If you carry out all the exercises as Ihave written them down, you should be up and running in a few days, depending on how much time you can devote to the learning process. Pay particular heed to the demo-trading information I have written about, you must have at least 70 trades under your belt before you embark on realmoney trading. Since marketsmastered.com got going in the summer of 2008, I have educated over 2000 customers and without exception, the few that have not heeded this advice have failed in their quest to become professional fulltime financial traders. Take your time going through this trading manual, there is no race that you’ve got to win, and if you are rushing to learn this strategy (or any

system) so that you can begin to earn some “proper” money, I would suggest that you examine why you are learning to trade. Too much focus on money will hinder your progress as a consistently profitable trader – believe me; I have seen it happen on more than one occasion. So finally may I thank you again for purchasing my “Any-Time” trading system, and I wish you many good trades in the future. Any questions/queries or problems, please email me at the usual address. With my best wishes, Nick – marketsmastered.com April 2012

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