Many traders tend to jump in and out of the market instead of staying with the trade as a trend develops.
Product Description
Synergy is designed to eliminate price distortions. It reveals periods of market strength and trend and periods of consolidation. Sentiment is the intuitive feeling or attitude of traders and investors in the market. For example, if the sentiment of the market is bullish, then traders and investors expect an upward move in the market.
Often, sentiment is an indication of optimism or pessimism in the market based on recent news announcements or political events. The Synergy method uses a hybrid custom indicator developed to show postive buyers sentiment or negative sellers sentiment.
Working in unison, Price Action and Sentiment give traders a distinct trading advantage. When both are in agreement, favorable trading conditions exists. For instance, when price action is showing upward movement with buyers sentiment, there is higher probability of a Long position having a favorable outcome. Similarly, when price action has a downward movement in conjunction with sellers sentiment, a short position has a favorable outcome.
The faster price changes due to immediate demand, the higher the volatility. And vice versa, the slower price changes the lower the volatility. When the market "steps on the accelerator" forcefully, there is rapid change in price with increasing volatility and the green Volatility line rises. As the market steps off the accelerator, price fades and the Volatility line changes to gray and descends. The red line of the VOL is similar to the idle-speed level of the tachometer. When the market is idling properly, price action is either trending or oscillating and the Volatility line remains above the red line.
But, when the market becomes stagnant or sluggish, the Volatility line will drop below the red line. Avoid trading in a stagnant or sluggish market. Typically, a stagnant or sluggish market has lack of conviction and direction which can be a potential trade hazard. One of the best aspects of VOL is its quick reaction to the market. When price action makes a strong move in the market, the Green line rises at an acute angle. This is ideal for scalpers and aggressive traders who favor trading volatile market moves such as economic events and news announcements.
Trading with the VOL There are two basic concepts a trader should understand to trade volatility: Volatility rises as price activity changes rapidly regardless if the market is Long or Short. Volatility declines as price activity changes slowly regardless if the market is Long or Short. Typically when buyers quickly buy more and more, volatility rises. The same is true when sellers quickly sell more and more.
Conversely, volatility declines as buyers stop buying and close positions or sellers stop selling and close positions. When trading volatility, traders are not looking for direction of price, but rather rate of change in price. For example, price slowly grinds higher, but drops rapidly because of a bad economic report.
Volatility traders pass on the slow Long but trade the quickly moving Short. The snapshot below illustrates the three variations of trading Volatility:. High volatility when volatility is rising, traders can look for a potential entry. Low volatility when volatility is falling from a peak, traders can look for a potential exit. Zero Volatility illustrates periods of sluggish or stagnant volatility which helps to eliminate possible trade entries during periods of market doldrums.
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The SPTA is designed with a number of trade entry and trade management techniques built into one indicator. Traders can act upon an alert or evaluate the condition of an alert compared to their trading objectives. In effect, the SPTA provides traders real-time market information in order to make knowledgeable trading decisions at entry, during the trade, and trade expiration.
When placed on a MetaTrader 4. This is the indication the SPTA indicator is applied and working. The SPTA can be placed on any timeframe from a 1-minute to a 1-month chart. Also, an Alert message box will appear including four specifics: 1. Local time stamp of the users computer. Trading with the SPTA: Trade Management For most traders, entering a trade is often easier than managing a trade for maximum potential and minimal loss.
Therefore, multiple trade management techniques are built into the SPTA. This is truly the Trader in the system. Potential Target 1 PT1 3.
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Potential Target 2 PT2 4. Traders should consider their own trade objectives.
Like an automatic cruise control in an automobile, the SPTA monitors market conditions and adjusts trade updates accordingly during a potential trade. This automated response to the market allows Synergy Pro traders to make well-informed trade decisions. Referring to the trade example above, as the market reached various potential targets or retracement levels, the SPTA displayed updates of "Potential Exit" alerts, either Long or Short depending upon the trade.
Notice the Potential Short Exit alerts at 1. All types of traders can take advantage of its ability to pinpoint momentum trend setups, either in the direction of the overall trend or with the immediate oscillation in price action. Conservative Mode Modifying the value of the Conservative Mode parameter to Y Yes , the SPTA scans the current market for potential trades that meet the Synergy Pro model and only triggers Long and Short alerts that are moving in the direction of the overall trend.
When using the SPTA in the Active mode, some alerts will trigger in the direction of the overall trend and some will trigger in the opposite direction due to immediate price movement. Be prepared for potential reversals. When triggered, it displays trade management conditions. The most favorable condition is when price reaches one of three Potential Target levels.
At this point, a trader can choose one of the following: 1. Close the trade. Scale out reduce position size and risk exposure. Scale in add to position favoring a trend continuation. Do nothing and let the trade run. This alert occurs after all potential trade conditions no longer exist, whether Long or Short. Trading the SPTA Conservative mode is designed for those who favor trading in the direction of the overall trend.
Forex NEW Synergy PRO Price Bar Trading System
Generally trading in the direction of the trend results in favorable trades. However, there are times when a trend is overextended; and the market expects a reversal. In this case, monitor , SynergyProTrader. Regular divergence is an indication of potential reversal. Be prepared for it! When divergence is detected between the Highs or Lows of price compared to the peaks or Troughs of the TDI Green line, be prepared for a potential retracement or reversal.
The focus is on catching immediate up and down moves without regard to the overall trend. Some trades will be in the direction of the overall trend, while other trades will not. It is advised if counter-trend trading to be aware of abrupt turns with proper risk management in place. Look for an acute angle of the VOL Green line rising. Regardless of the direction of the trade, when market volatility rises the VOL rises. Example of an acute angle of the VOL Green rising:. Below is a minute chart with an example of two situations where the VOL Green line is rising at an acute angle matched to a prominent price move up at A and a strong lasting price move down at B.
This is an example of a 4-hour chart, A and B represent two situations where the VOL Green line is rising at an acute angle matched to a prominent price movement. Sound an audible alert. Display an Alert message box. Green arrows equate to Long conditions. Red arrows equate to Short conditions. It is recommended to enter on the first, second, or third APB Arrow. Near the top of the message box an alert message displays the most current alert and includes the currency pair, the trade condition, the price, and which time chart the alert was triggered.
APBA Alerts are listed in sequential order starting with the most current alert.