The Doji | Candlestick forex analysis

The Doji is probably one of the most accurate of candle reversal signals. Used correctly you will increase your forex profitability by 80%.

Understanding the candlestick patterns and graphical displays will greatly enhance your trading skill & will allow you to trade emotionlessly.

So What is the Doji candlestick?



A Doji candlestick forms when there is indecision between the Bulls & the Bears. It appears when the open and close price are very close together or identical. There are 2 ways to trade the Doji

How to trade the Doji in a Bull market?

When you see a Doji at the top of a trend the rule of thumb according to the Japanese rice traders is to get out of the trade - take profit and wait for the next signal.

How to trade the Doji in a Bear market?

When you see a Doji at or near the bottom of the trend you need to wait for further trading signals to make a decision on what to do.

Lets have a look at the picture below. Look at the red circle you can see the price of GBP/JPY (GJ) has been trading sideways ever since the Doji. The Doji formed at the top of the Bull trend and is now consolidating. It is time to take profit.

Trading candlesticks alone without another indicator will bode you well, but getting confirmation from other technical signals will further enhance your trading skill.

8EMA (8 Exponential Moving Average On The Close Price)

The 8EMA is the red & white dotted line as seen on the chart above. This line is a great tool to have in your arsenal to keep you trading emotionlessly.

Rule of thumb here is when the candle closes above the 8EMA stay in the trade & when the candle closes below the 8EMA get out of the trade. This is obviously for a Bull market. The opposite is true for a Bearish market. When the candle is below the 8EMA stay in the trade & when the candle closes above and the next candle opens above the 8 EMA get out of the trade, take profit and possibly go long.

So the above picture has a little bit of a challenge when making a decision. Does one take profit as per the rule of thumb of seeing a Doji at the top or do we wait until the candle opens and closes below the 8EMA?

The answer is simple.

You take profit and protect profits.
There are basically 4 rules in trading.

Rule 1 = Protect capital
Rule 2 =  Make profit
Rule 3 = Protect capital.
Rule 4 = Repeat steps 1-4.

What happens if the price goes up after getting out of the trade as per the pic above?

This is called a false positive. Nothing to beat yourself up about. Just get back in to the trade and carry on going long and making profit. The spread (commission to the broker) is around 2-4 pips before you begin making money, so just get back in the trade.

If you remained in the trade and the trade closed below the 8EMA it is far more than 2-4 pips you would have lost.
You would have lost about 30 pips. So very clearly using the Doji at the top is the right decision.

So when do you decide to get back in to the long trade after seeing a Doji after you got out and have made an error to get out as per the pic above?

I would wait until a new candle forms and closes above the high of the previous Doji. This way you know you are out of the sideways trade. you have protected capital & you have now positioned yourself for the next bull wave.

100MA (100 Moving Average - Blue line)

Professional traders, financial institutions, hedge fund managers & banks etc use moving averages to make decisions on wether to enter or exit trades. One of the major MA's is the 100 MA.

Before I discuss the above picture let me explain what a MA is. A Moving Average (MA) is created by taking the close out of the last X amount of candles and plotting a dot on the chart.

In the above picture each candle represents a 4 hour time frame. So the 100 MA is the average of the past 100 candles on a 4 Hour time frame. To get the next dot on the chart we wait for the next candle to open and close. We then take the past close out price of the past 100 candles add them up and divide by 100 to get the average. plot it on the graph & then join all the dots to get a line chart. Very simple.

The 100 MA in blue is shown with the arrow.

A moving average is used as a support or resistance level for traders to either get in or out of a trade. Let's now analyse the picture below.  You can see the price is trading at 142.632 and is stuck on that level. Why? Because the price has reached the 100 MA. Lots of traders have their buy & sell orders on this level. The price will either go up or down based on the amount of orders executed.

This trading game is a game of supply & demand. If there are more buy orders than sell orders then the price will go up. Conversely, if there are more sell orders than buy orders the price will go down.

We do not predict what will happen to the price, here we just follow the signals. So we have 2 signals now.

Signal 1 = Doji at the top = Take profit.
Signal 2= 100 MA & Doji = Take profit.



Signal 3. 

Stochastic
The stochastic oscillator is a momentum indicator that is widely used in forex trading to pinpoint potential trend reversals. This indicator measures momentum by comparing closing price to the trading range over a given period.

Basically it shows you either over-bought or over-sold conditions. Over-bought means too many people have bought the product and a reversal is imminent. Conversely, over-sold means to much of the product is sold and we can expect a reversal. 

To recognise over-sold conditions we would find the red dotted line and the yellow line between the 0 - 20 as seen in the picture below.

Conversely recognising an over-bought condition would show us the red dotted line and the yellow line in between the 80 - 100 area. as seen in the picture below.

So now we have 3 signals that are screaming at us. 

Signal 1 = Doji at the top = Take profit.
Signal 2= 100 MA & Doji = Take profit.
Signal 3 = Stochastic in the over-bought area.

This is now a 100% take profit signal and time to wait for the 4th signal which will tell us to get back in and go long or get back in & go short.

Understanding the above signals will improve your profit and sanity. Unfortunately trading manually takes time to learn and is time consuming in itself. Most people do not have time to trade manually as they have jobs, careers and a life.

I prefer to make Passive Income. 

I have an amazing toll that buys & sells forex automatically 24 hours a day. you do not have to do anything. You just set it up and print money. The bot does everything and you just rake in profit 24 hours a day 5 days a week.  Click this link to find out more.

or

Whatsapp me on +2776 4577444 & say "Howzit" & I will send you more info

Alan Solarsh | The Passive Income Guru
+2776 4577444
How To Make Passive Income

Most if not all the richest of the rich throughout the world have more than 1 income stream & if you want to get rich you need to start emulating the richest of the rich.
How many streams of income do you have?
Warren buffet has over 10.

So what is passive income exactly?

Well lets discuss the different types of income. Basically there are 2 types of income in this world.
1. Active Linear Income
2. Passive Income

Let's begin with understanding what Active Linear Income is.
You are exchanging your valuable time for money. Mostly you will only get paid enough to keep you rooted in your chair. Traditionally this would be a job, but as of late contracting your time out has become more prominent as there is very little security in having a job. So basically your life works like this, you work you get paid, you work you get paid, you work you get paid. If you do not work you don't get paid. So your income is dependent on your time & time as we know it is very limited and finite. There are only 46-80 working hours in a week. You can't stretch that out so your income is basically capped.
The only way to increase your income is to increase your price & sometimes, in fact most times this is impossible. Even Tony Robins can only charge a certain amount for his time. So again your income has a ceiling.
Now Passive Income works completely differently. When you have $1 Passive Income More than your expenses you are what is called financially free.

So what is Passive Income?

It is money you earn passively. Money you earn when you sleep or even if you do not work. The most common type of this Income is rental income. This is money you make when you own property. You have a tenant that usually works & earns linear income & he pays you rent, which is Passive Income. There is very little if any effort done on your part as the owner of the property so as to bring in the rental income & earn passively
So how many types of Passive Income streams are there?
There are probably hundreds. but let me name a few that will assist you to make a decision in which Passive Income Opportunity suits your risk profile & life style.
Rental Income Highly Lucrative, but yet there is a very high barrier to entry. You needs loads of cash to start a decent property portfolio & you need to show your liquidity, affordability and you can't be blacklisted as a bad or slow payer.

Affiliate Marketing. Affiliate marketing is a fabulous way to start earning passively. There are many companies out there looking for quality sales people. You need to sell, subscription based products & services. an expanse of this is web site hosting services, Software, mobile phone subscriptions, Insurance, medical aid. My wife has a hair care product that she manufactures and she has brought in a subscription service that allows her clients to have their hair care products delivered to them on a monthly basis, mission free at a discounted price if they take an annual subscription. There are many products out there that offer this system. A great place to find these are affiliate web sites like Commission Junction, ClickBank many many others. You just need to find a product & service that you could align yourself with.

MLM. Multi level marketing or Network Marketing is an amazing way for any person with 1 cell of entrepreneurship in their bodies to get started in having their own business and start earning passively. A lot of the MLM companies put there offer a passive earnings on the sales you do and on the sales that your representatives that you have recruited in your organisation make. This is such am amazing business model where you can recruit people in to your organisation and whatever sales they make you get an overriding commission on their sales. The overriding commission is now money you make passively, as you did nothing to earn it except recruit the sales person. He did the sale, the follow up etc. & you earned Passively from his efforts. This is like the WOW factor.

Even if you owned your own business their are very creative ways you can adopt in your business so as to earn recurring income. Let's look at a guy that builds pools. You would think that this is just linear active income here. You would be wrong. How about the pool guy offering a subscription service for after care & maintenance. He could charge a monthly subscription to come out and backwash the pool, make sure the PH is correct, (which is such a motion for a person that does not understand PH etc). This is the Recurring Income Stream now created for the pool builder.

You really need to dig deep here and start working on your business rather than in your business. Once you do this you can begin to become creative & move your business in to or have a division of your business dedicated to making you a Recurring Income Stream. Your Recurring Income will eventually overtake your linear active income & then live for you begins. Even if you have a job, you can do affiliate marketing or MLM in your spare time as you get paid for the sales you do & not the time you put in. Obviously the more time you put in the more sales you make, but if you have not time due to having a job, don't let this be the reason not to, it should be the reason why you should do it!

I hope that this article has inspired you to make a change from Linear Active Income to Passive income.
The Passive Income Guru
Send me a "Howzit" on Whatsapp & I will mentor you.
Alan Solarsh | The Passive Income Guru
+2776 457 7444

If you want a consistent Passive Income then you need to try out the Forex Ninja Bot. This is A piece of technology that buys and sells Forex automatically. You could earn 0.1% - 6% per day depending on market Volatility.

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Article Source: http://EzineArticles.com/expert/Alan_Solarsh/2580941

The Magic Pill For Skeptical People

By Eric Worre

Unfortunately, Network Marketing has had some bad publicity. Many outside the profession think it’s a pyramid scheme, a get-rich-quick scheme, or just a scam. And unfortunately, this means as you’re out recruiting prospects, you’ll run into some skeptics.

This frightens many Network Marketers. What do you say when your prospect thinks you’re trying to scam them? How are you supposed to react when they speak negatively about your profession, thinking they already know everything about it?

I’m sorry to say that there’s no way to avoid skeptics. You will run into one eventually. But that doesn’t mean you have to be unprepared.

So, here are two things to keep in mind as you’re dealing with skeptics.

Approaching Skeptics

First, the way you approach skeptics can make a huge difference. Remember, you are not there to convince anybody to do or believe anything. You are there to educate people on your opportunity so that they understand what it is that you do. So, don’t push your prospects to sign up or make them feel uncomfortable. You’ll merely drive the skeptics away and confirm some of their negative views of Network Marketing.

Also, you need to not be emotionally attached to the outcome. I know that when you first start out, you’re talking to prospects, and they tell you no, it can feel like they are rejecting you personally and it hurts. But you have to learn that no is just a word. It doesn’t matter if your prospect tells you yes or no. That’s not important. The only thing that is important is that they come to understand what it is that you do and the opportunity you are presenting them.

So, don’t approach skeptics with a confrontational or defensive attitude. Approach them as a friend, a consultant, a teacher. Approach skeptics with the mindset of educating them, and you’ll have a much better interaction.

When Faced with Skeptics

Okay, so then what do you actually do when you approach a skeptic?

You hold a conversation.

That’s it. There’s not some magical formula for converting skeptics or proving them wrong. All you do is have a conversation with them.

Often skeptics have had some sort of experience with Network Marketing. They’ve known someone who joined with no success or they’ve tried it themselves and it didn’t pay off. Or maybe they’ve just heard stories or read articles. Whatever kind of experience they’ve had, ask them for their story. Ask them what they specifically are concerned about or what they don’t like about Network Marketing.

And then talk about it with them. If they think it’s a get-rich-quick scheme, explain that it is extremely rare for anyone in the profession to get rich in a short amount of time. If they’ve been told that there’s no work involved, tell them that they will have to work hard to reach success. Tell them the truth about Network Marketing. Give them realistic expectations. Present objective facts about the company, product, and profession.

You don’t have to be afraid to run into skeptics. All you have to do is hold a conversation with them. If they are still skeptical of Network Marketing, that’s okay. You can’t make people believe in the profession. All you can do is educate them.

Eric Wore

There are many fish in the sea.

There are over 3 billion people on the planet. there is no need to try convince skeptical people, find motivated people. Remember we are looking for the 2%'ers in the world. Those are the people that control the wealth in the world. The 98%'ers consume the wealth. 

My mentor always said to me find positive people, find motivated people. Stay away from the negativity and the demotivated. 

Alan Solarsh

The Passive Income Guru

You will never succeed in Network Marketing

I think you are going to enjoy this article from my Mentor EricWorre. 

After each step I will give you steps for Atlantic.

You will never succeed in Network Marketing if all
you do is sign up distributor after distributor. You could
sign up 30 new distributors in a month, but if those
new people don’t get started right in this profession,
you’ll lose almost all of them after a month or two.

My View

In Atlantic You earn irrespective of
wether you recruit or not, but if you
want to make more than 4% - 7% per week,
Then you need to find recruiters. Teach
them how to recruit and you will win at a high
level here.
People recruit once they have started making
money. So get your people to buy a package ASAP.

Get your distributors started right. Only then will your
retention rates go up, and you’ll see some real and consistent
growth in your business.

So, here are five steps to get your new distributors started off right.

Step 1 – Validation

Validate their decision to join Network Marketing.
This may seem like an obvious step, but it’s amazing
how many people just gloss over it. You don’t have to
spend a long time on this step. But take a moment to
congratulate your new distributor for joining and say
something about how they have now taken control
of their life. Reassure them that they have made the
right decision.

By doing this, you’ll ease any lasting doubts your new
distributors might have and make them feel good
about their decision.

My View

Adding your people on the whatsapp

group and welcoming to the team, has
proven to be most successful, as everybody
wants to be part of something & be recognized.

The whatsapp group also shows proof of
people earning on a weekly basis. Once your
people see other people making money, their
apprehension to invest evaporates, they invest,
you earn & they will now start to recruit their
friends & family. 

Step 2 – Set Their Expectations

Unrealistic expectations are one of the biggest reasons
why new distributors drop out. They come in with this
idea of what Network Marketing will be like, and
when that doesn’t happen, they bail. So, your job is
to make sure they know what to expect.

In addition to the usual sentiments that this profession is not easy and is not a get-rich-quick scheme, there are a few other things you should tell your new distributors.

Tell them that their success or failure is all up to them.
You are not there to make sure they succeed. You
are there to help guide them and work with them,
not for them. They are in charge of their own success.
If they fail, they were the ones who created the failure.
If they succeed, they created their own success.

Second, your job is to help your new distributors
become independent of you as quickly as possible.
If your distributors completely rely on you to tell them
what to do or how to do things, then they will never be
able to build a business on their own. And you’ll be
dragged down by them as well. When your distributors
are completely dependent on you, you become their
slave, not their teacher. So, make sure they know
that eventually they will have to work independently.

Third, let your distributors know that there will be
good and bad times, and sometimes they may feel
like giving up. Make sure they know that you will be
there for them if they want, and you can help guide
them through the tough times.

My View

There is no failure in Atlantic there is only
success. You earn every week. This is why
I love Atlantic. Passive income Weekly!
 

Step 3 – Make Sure They’re Prepared

Go through a checklist with your distributors to make
sure they have everything they need to get started
and succeed. Some examples are:

• Make sure they have an appropriate supply of products. 

          Get your distributors on the path to become raving 

          fans of the product, and make sure they have samples 

          for demonstrations. With regards to Atlantic make sure 

          you people have bought a package and are making Cash!

• Give your new distributors the appropriate tools. 

         Third-party tools can help one build a large and successful 

         business. So, make sure your distributors have the proper 

         tools to help them through the exposure process 

         with new prospects.

• Make sure your new distributors get connected. 

          Show them how to find things on the company 

          website, where upcoming events are, when leadership

          calls are conducted, etc.

• Explain the compensation plan so that your distributors 

          have at least a basic understanding of it. They don’t

          need all the details, but they should be able to know 

          what will happen financially as they move through 

          the first few levels.

• Teach them how to properly invite their prospects 

          to hear more about what they have to offer. 

          Your distributors will have a better time getting started

          if they at least know how the professional invitation 

          process works.

My View

I have created a step by step paint by
numbers system. Help your investors follow
the system and they too will have success.

It is very important that you go through
the investment growth, commissions owing
to the traders and the compensation plan.Make sure your people have access to the
videos and the web sites that explain this
in detail.

Step 4 – Create a Game Plan Together

Sit down with your new distributor and hash out a plan
for how they will get through the first few ranks and then
challenge them to do it quickly. You don’t have to figure
out how they will reach their ultimate goals. Just figure
out how they can get through those first hurdles and
meet smaller goals. Think about how they will get their
first customer and distributor. Encourage them to attend
their first company event. And figure out the steps they
will need to take to earn that first commission check.

If your new distributors can get results quickly, then they’ll
be more likely to continue. A game plan will help them get
that quick start.

My View

Again we have detailed videos on this.
Eric's views are awesome, & definitely work,
but try not create a job of baby sitting
your new investors. Everyone must be
independent from you.
That is why we are all called Independent
representatives.Not dependent reps.

Step 5 – Give them an Assignment

New distributors crave direction, so give them a simple
assignment to start off with. Make sure you give them a
deadline, too. This assignment will get them to start working
on their game plan and also help them get over the line.

When someone gets started, there is always a line between
success and failure. On one side of the line, it’s easier to
quit than to continue. On the other side of the line, it’s easier
to continue than to quit.

So, give them an assignment that will help them get
over the line towards success. This can be something
like getting their first customer or distributor or even
proclaiming their intentions to the world.

My View

Get a time line from them of when they
are going to invest. Diarize it so that you
can call them to assist with investing.
Show them how to do it. Or direct them
to the videos.


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Ps. Whatsapp me or call me if you need assistance. Call me as me times as you like as I am here to mentor you. 

Alan Solarsh 

The Passive Income GuruYour up-line, mentor & friend

+27764577444 (Whatsapp me or call me)

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Have a fantastic passive income day.