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SYNERGY 2.

0
Trading Method
Advanced Training

Presented by Compass Foreign Exchange, LLC.


www.compassfx.com

Dear Trader, Advanced Synergy 2.0 offers traders a user-friendly sophisticated trading edge designed to prompt traders when multiple facets of the market are in complimentary consensus. The Synergy trading method is used by Forex traders around the world with much acclaim: "The method you shared over two days was everything you stated and more. The indicators and method may be the best I've been exposed to since I started trading Forex 3 years ago!" ~ G.R., Phoenix, AZ I have never been able to gain such consistency until this method...the simplicity and conservative approach to taking a trade. Finally, an approach to trading that is working for me. ~ K.K., Detroit, MI "The one thing I really like about the Synergy method is the entry and exit rules." ~ B.J., Kansas City, MO "I use the Advanced Synergy as my main Forex trading tool." ~ M.M., Sao Paulo, Brazil Okay, its your turn! Youve traded your valuable time to learn a system that traders enjoy using. Our commitment to you is to show you what we know and provide the support you may need its your choice to make the Advanced Synergy 2.0 work for you!

~CompassFXTeam

2008 Compass Foreign Exchange, LLC. All rights reserved. *Disclaimer: Trading Foreign Exchange (Forex) carries a high level of risk and is not suitable for all investors. There is a possibility that you could sustain a loss of all or more of your investment therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading. Unique experiences and past performances do not guarantee future results! Testimonials herein are unsolicited and are non-representative of all clients; certain accounts may have worse performance than that indicated. Trading stocks, futures, options and foreign exchange spot currencies involves substantial risk and there is always the potential for loss. Your trading results may vary. Because the risk factor is high in foreign exchange market trading, only genuine "risk" funds should be used in such trading. If you do not have the extra capital that you can afford to lose, you should not trade in the foreign exchange market. No "safe" trading system has ever been devised, and no one can guarantee profits or freedom from loss. Forex, futures 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 foreign exchange, futures and options markets. Do not trade with money you can not afford to lose. This is neither a solicitation nor an offer to Buy/Sell stocks, futures, options, and foreign exchange spot currencies. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed within this document. The past performance of any trading system or methodology is not necessarily indicative of future results. CFTC RULE 4.41 - HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED 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 THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM. 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 IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL OF WHICH CAN ADVERSELY AFFECT ACTUAL TRADING RESULTS.

CompassFX receives a volume based referral fee for its services. Account access, trade executions and system response may be adversely affected by market conditions, quote delays, system performance and other factors. CompassFX and its affiliates assume no responsibility for errors, inaccuracies or omissions in these materials. They do not warrant the accuracy or completeness of the text, information, graphics, links or other items contained within these materials. CompassFX and its affiliates shall not be liable for any special, indirect, incidental, or consequential damages, including without limitation losses, lost revenues, or lost profits that may result from these materials. This is not a solicitation to buy or sell currency in the spot Forex market.

Advanced

SYNERGY 2.0
Trading Method
Presented by Dean Malone
CompassFX, 2008 www.compassfx.com

www.compassfx.com

Risk Disclaimer
Trading foreign exchange on margin carries a high level of risk, and is not suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your monetary objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your deposited funds and therefore you should not speculate with capital that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent advisor if you have any doubts. Past returns are not indicative of future results. Your trading results may vary. No representation is being made that any software or training will guarantee profits or not result in losses from trading.
CompassFX, 2008 www.compassfx.com

2008 Compass Foreign Exchange, LLC. All rights reserved. *Disclaimer: Trading Foreign Exchange (Forex) carries a high level of risk and is not suitable for all investors. There is a possibility that you could sustain a loss of all or more of your investment therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading. Past performance is not indicative of future results..

What is SYNERGY?
Mutually advantageous collaboration of forces to create an enhanced combined result.

Market Strength

Price Action

Basic Synergy Method


Momentum
CompassFX, 2008 www.compassfx.com

Trend
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MTF

Price Action

Volatility

Market Strength

Support & Resistance

Advanced SYNERGY 2.0


Range Trend

Momentum

CompassFX, 2008 www.compassfx.com

2008 Compass Foreign Exchange, LLC. All rights reserved. *Disclaimer: Trading Foreign Exchange (Forex) carries a high level of risk and is not suitable for all investors. There is a possibility that you could sustain a loss of all or more of your investment therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading. Past performance is not indicative of future results..

SYNERGY Trading Method


Basic Techniques

CompassFX, 2008 www.compassfx.com

SYNERGY Method
There are 4 primary market conditions in a potential trade:

1. Price action 2. Trend 3. Momentum 4. Strength


CompassFX, 2008 www.compassfx.com

2008 Compass Foreign Exchange, LLC. All rights reserved. *Disclaimer: Trading Foreign Exchange (Forex) carries a high level of risk and is not suitable for all investors. There is a possibility that you could sustain a loss of all or more of your investment therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading. Past performance is not indicative of future results..

SYNERGY Method
Price Action & Trend Average Price Bars Price Action Channel

Momentum & Strength

Traders Dynamic Index

CompassFX, 2008 www.compassfx.com

SYNERGY Method
Basic Chart Setup

Average Price Bars (APB) Price Action Channel (PAC) Traders Dynamic Index (TDI)

CompassFX, 2008 www.compassfx.com

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2008 Compass Foreign Exchange, LLC. All rights reserved. *Disclaimer: Trading Foreign Exchange (Forex) carries a high level of risk and is not suitable for all investors. There is a possibility that you could sustain a loss of all or more of your investment therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading. Past performance is not indicative of future results..

Average Price Bars

CompassFX, 2008 www.compassfx.com

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Average Price Bars


Provide a better depiction of current market. Eliminate fluctuations of nominal price action. Remove the noise of price distortion. Maintain focus on the underlying trend. Reveal market strength & consolidation.

CompassFX, 2008 www.compassfx.com

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2008 Compass Foreign Exchange, LLC. All rights reserved. *Disclaimer: Trading Foreign Exchange (Forex) carries a high level of risk and is not suitable for all investors. There is a possibility that you could sustain a loss of all or more of your investment therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading. Past performance is not indicative of future results..

APB vs. Candlesticks

Typical Japanese Candlesticks

CompassFX, 2008 www.compassfx.com

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APB vs. Candlesticks

False exit points!

CompassFX, 2008 www.compassfx.com

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2008 Compass Foreign Exchange, LLC. All rights reserved. *Disclaimer: Trading Foreign Exchange (Forex) carries a high level of risk and is not suitable for all investors. There is a possibility that you could sustain a loss of all or more of your investment therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading. Past performance is not indicative of future results..

APB vs. Candlesticks


Blue and Red Average Price Bars overlaid on typical candlesticks.

No false exit points just trending price bars!

CompassFX, 2008 www.compassfx.com

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APB vs. Candlesticks

Average Price Bars with candlesticks removed!

CompassFX, 2008 www.compassfx.com

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2008 Compass Foreign Exchange, LLC. All rights reserved. *Disclaimer: Trading Foreign Exchange (Forex) carries a high level of risk and is not suitable for all investors. There is a possibility that you could sustain a loss of all or more of your investment therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading. Past performance is not indicative of future results..

Average Price Bars


Long Candle Short Candle
haOpen haClose

haClose haOpen

CompassFX, 2008 www.compassfx.com

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Average Price Bars


Long Candle

haClose

Blue Candles signify an uptrend. Blue candles with no lower wick indicates a strong uptrend.

haOpen

CompassFX, 2008 www.compassfx.com

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2008 Compass Foreign Exchange, LLC. All rights reserved. *Disclaimer: Trading Foreign Exchange (Forex) carries a high level of risk and is not suitable for all investors. There is a possibility that you could sustain a loss of all or more of your investment therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading. Past performance is not indicative of future results..

Average Price Bars


Short Candle
haOpen

Red candles signify a downtrend. Red candles with no upper wick indicates a strong downtrend.

haClose

CompassFX, 2008 www.compassfx.com

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Average Price Bars


Long Candle
haClose haOpen

Short Candle
haOpen haClose

Small Body candles


A candle with a small body surrounded by upper and lower wicks indicates a trend change or possible reversible. Consider exiting if in a position, or waiting for confirmation to enter.
CompassFX, 2008 www.compassfx.com

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2008 Compass Foreign Exchange, LLC. All rights reserved. *Disclaimer: Trading Foreign Exchange (Forex) carries a high level of risk and is not suitable for all investors. There is a possibility that you could sustain a loss of all or more of your investment therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading. Past performance is not indicative of future results..

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Average Price Bars


Positive bars mean BUY

Negative bars mean SELL

CompassFX, 2008 www.compassfx.com

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Average Price Bars


A very short bar means Change of Trend

Shorter bar than previous bar is an indication of Change

CompassFX, 2008 www.compassfx.com

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2008 Compass Foreign Exchange, LLC. All rights reserved. *Disclaimer: Trading Foreign Exchange (Forex) carries a high level of risk and is not suitable for all investors. There is a possibility that you could sustain a loss of all or more of your investment therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading. Past performance is not indicative of future results..

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How-To Read Synergy Average Price Bars


Trend Type Normal Long Trend
Ascending blue candles Ascending long blue candles with no lower wicks Blue candle bodies get smaller, lower wick appears Small blue candles with upper and lower wicks Very small blue candle with long upper and lower wicks

Short Trend
Descending red candles Descending long red candles with no upper wicks Red candle bodies get smaller, upper wick appears Small red candles with upper and lower wicks Very small red candle with long upper and lower wicks

Entry

Exit

Strong

Weak


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Consolidation Change of Trend


CompassFX, 2008 www.compassfx.com

Counting Average Price Bars

CompassFX, 2008 www.compassfx.com

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2008 Compass Foreign Exchange, LLC. All rights reserved. *Disclaimer: Trading Foreign Exchange (Forex) carries a high level of risk and is not suitable for all investors. There is a possibility that you could sustain a loss of all or more of your investment therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading. Past performance is not indicative of future results..

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Counting APBs
1. Check the difference between the HA_Open & HA_Close. 2. 3 10 pips difference depending on the time frame. 3. Count the first Average Price Bar (APB) when #2 is satisfied. 4. Once you start a count, continue the count even if a candle does not satisfy #2. 5. Look to enter a trade between APBs 1, 2, 3. 6. Possible to enter trade on APB 4, if all indicators are good. 7. Look to scale out or potential exit between APBs 5 - 8.

CompassFX, 2008 www.compassfx.com

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Counting APBs

CompassFX, 2008 www.compassfx.com

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2008 Compass Foreign Exchange, LLC. All rights reserved. *Disclaimer: Trading Foreign Exchange (Forex) carries a high level of risk and is not suitable for all investors. There is a possibility that you could sustain a loss of all or more of your investment therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading. Past performance is not indicative of future results..

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Counting APBs
12 34 56 7 8

CompassFX, 2008 www.compassfx.com

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Counting APBs
12 34 56 7 8

After After5-8 5-8APBs APBs& & outside of outside ofPAC PAC Price Priceis isKing! King!

CompassFX, 2008 www.compassfx.com

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2008 Compass Foreign Exchange, LLC. All rights reserved. *Disclaimer: Trading Foreign Exchange (Forex) carries a high level of risk and is not suitable for all investors. There is a possibility that you could sustain a loss of all or more of your investment therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading. Past performance is not indicative of future results..

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Average Price Bars


Indicator name = Synergy_HeikenAshi
1. 2. Apply a Synergy_basic or Synergy_2 template to a chart. Double click on Synergy_HeikenAshi in the Custom Indicator folder found in the Navigator window.

CompassFX, 2008 www.compassfx.com

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Applying APB Indicator

1. Go to Navigator window > Custom Indicators > Synergy_HeikenAshi 2. Double left click to attach to chart. 3. Click on OK.

CompassFX, 2008 www.compassfx.com

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2008 Compass Foreign Exchange, LLC. All rights reserved. *Disclaimer: Trading Foreign Exchange (Forex) carries a high level of risk and is not suitable for all investors. There is a possibility that you could sustain a loss of all or more of your investment therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading. Past performance is not indicative of future results..

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Average Price Bars


1. Blue candles with no lower wicks = good uptrend. 2. Red candles with no upper wicks = good downtrend. 3. An Average Price Bar with a small body with upper and lower wicks indicates a possible trend change. 4. To reduce risk, wait for confirmation by monitoring HA_Close.

Remember, using Average Price Bars helps to avoid false exit signals!

CompassFX, 2008 www.compassfx.com

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Price Action Channel

CompassFX, 2008 www.compassfx.com

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2008 Compass Foreign Exchange, LLC. All rights reserved. *Disclaimer: Trading Foreign Exchange (Forex) carries a high level of risk and is not suitable for all investors. There is a possibility that you could sustain a loss of all or more of your investment therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading. Past performance is not indicative of future results..

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Price Action Channel


Provides overall trend direction. Reveals periods of consolidation. Used primarily as an Entry tool. Can be used as a Trailing Stop.

CompassFX, 2008 www.compassfx.com

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PAC vs. Traditional Channels


Traditional channels, such as Linear Regression and Keltner, set outside of current price activity. Used to determine upper and lower boundaries and signal potential reversal or breakout. Traditional channels can cause reactive trading!
CompassFX, 2008 www.compassfx.com

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2008 Compass Foreign Exchange, LLC. All rights reserved. *Disclaimer: Trading Foreign Exchange (Forex) carries a high level of risk and is not suitable for all investors. There is a possibility that you could sustain a loss of all or more of your investment therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading. Past performance is not indicative of future results..

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PAC vs. Traditional Channels


Price Action Channel sets inside of price movementinstead of outside of price waiting for the market. Used by institutional traders and sophisticated trading programs. Promotes responsive trading!

CompassFX, 2008 www.compassfx.com

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Price Action Channel

5 period Smoothed MA = High price. 5 period Smooth MA = Low price.

CompassFX, 2008 www.compassfx.com

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2008 Compass Foreign Exchange, LLC. All rights reserved. *Disclaimer: Trading Foreign Exchange (Forex) carries a high level of risk and is not suitable for all investors. There is a possibility that you could sustain a loss of all or more of your investment therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading. Past performance is not indicative of future results..

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Price Action Channel


Long Entry Condition for PAC PAC

Buy Entry = HA_Close > PAC High

CompassFX, 2008 www.compassfx.com

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Price Action Channel


Short Entry Condition for PAC PAC

Sell Entry = HA_Close < PAC Low

CompassFX, 2008 www.compassfx.com

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2008 Compass Foreign Exchange, LLC. All rights reserved. *Disclaimer: Trading Foreign Exchange (Forex) carries a high level of risk and is not suitable for all investors. There is a possibility that you could sustain a loss of all or more of your investment therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading. Past performance is not indicative of future results..

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Stay the Trade


Long Trend
Average Price Bars tend to rise above and run on top of channel.

Short Trend
Average Price Bars tend to drop below and run on bottom of channel.

CompassFX, 2008 www.compassfx.com

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Stay the Trade


Buy Long Trend Trend
Positive bars riding the top of the Price Action Channel

Nice upward trend of the Price Action Channel.

CompassFX, 2008 www.compassfx.com

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2008 Compass Foreign Exchange, LLC. All rights reserved. *Disclaimer: Trading Foreign Exchange (Forex) carries a high level of risk and is not suitable for all investors. There is a possibility that you could sustain a loss of all or more of your investment therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading. Past performance is not indicative of future results..

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Stay the Trade


Sell Short Trend Trend
Nice downward trend of the Price Action Channel.

Negative bars riding the bottom of the Price Action Channel

CompassFX, 2008 www.compassfx.com

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Traders Dynamic Index

CompassFX, 2008 www.compassfx.com

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2008 Compass Foreign Exchange, LLC. All rights reserved. *Disclaimer: Trading Foreign Exchange (Forex) carries a high level of risk and is not suitable for all investors. There is a possibility that you could sustain a loss of all or more of your investment therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading. Past performance is not indicative of future results..

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Traders Dynamic Index


A hybrid indicator developed to indicate market conditions related to trend direction, momentum, and market volatility.

An all-in-one indicator!

CompassFX, 2008 www.compassfx.com

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Traders Dynamic Index


The Lines of the TDI

Green line Red line Yellow line Blue lines


CompassFX, 2008 www.compassfx.com

RSI Price Line


Trade Signal Line

Market Base Line Volatility Band

68 upper level line 50 mid level line 32 lower level line


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2008 Compass Foreign Exchange, LLC. All rights reserved. *Disclaimer: Trading Foreign Exchange (Forex) carries a high level of risk and is not suitable for all investors. There is a possibility that you could sustain a loss of all or more of your investment therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading. Past performance is not indicative of future results..

22

Traders Dynamic Index


RSI Price (Green) Line

Rules: Trade Long when RSI PL > 50. Trade Short when RSI PL < 50.
CompassFX, 2008 www.compassfx.com

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Traders Dynamic Index


RSI Price (Green) Line
Above 50 = Positive Sentiment Below 50 = Negative Sentiment

Green > 50 = Positive sentiment (Buyers buying) Green < 50 = Negative sentiment (Sellers selling)
CompassFX, 2008 www.compassfx.com

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2008 Compass Foreign Exchange, LLC. All rights reserved. *Disclaimer: Trading Foreign Exchange (Forex) carries a high level of risk and is not suitable for all investors. There is a possibility that you could sustain a loss of all or more of your investment therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading. Past performance is not indicative of future results..

23

Traders Dynamic Index


RSI Price (Green) Line
68 line = Buying exhaustion

32 line = Selling exhaustion

Green > 68 Buying momentum will slow & reverse. Green < 32 Selling momentum will slow & reverse.
CompassFX, 2008 www.compassfx.com

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Traders Dynamic Index


RSI Price Line compared to Price Action

CompassFX, 2008 www.compassfx.com

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2008 Compass Foreign Exchange, LLC. All rights reserved. *Disclaimer: Trading Foreign Exchange (Forex) carries a high level of risk and is not suitable for all investors. There is a possibility that you could sustain a loss of all or more of your investment therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading. Past performance is not indicative of future results..

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Traders Dynamic Index


Trade Signal (Red) Line

Rules: Trade Long when RSI PL > TSL. Trade Short when RSI PL < TSL. Note: Less risk when RSI PL & TSL are both > or < 50
CompassFX, 2008 www.compassfx.com

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Traders Dynamic Index


Market Base (Yellow) Line

Rules: Market Base Line (MBL) is the Overall Trend. Trend. Trade Long when RSI PL is > MBL. Trade Short when RSI PL is < MBL.
CompassFX, 2008 www.compassfx.com

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2008 Compass Foreign Exchange, LLC. All rights reserved. *Disclaimer: Trading Foreign Exchange (Forex) carries a high level of risk and is not suitable for all investors. There is a possibility that you could sustain a loss of all or more of your investment therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading. Past performance is not indicative of future results..

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Traders Dynamic Index


Market Base Line compared to Price Action

CompassFX, 2008 www.compassfx.com

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Traders Dynamic Index


Market Base Line forecasts Market Reversals

CompassFX, 2008 www.compassfx.com

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2008 Compass Foreign Exchange, LLC. All rights reserved. *Disclaimer: Trading Foreign Exchange (Forex) carries a high level of risk and is not suitable for all investors. There is a possibility that you could sustain a loss of all or more of your investment therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading. Past performance is not indicative of future results..

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Traders Dynamic Index


Volatility Band (Blue) Lines

Rules: Possible to add to a Long when RSI PL is > VB. Possible to add to a Short when RSI PL is < VB. Consider exit when RSI PL crosses back over VB.
CompassFX, 2008 www.compassfx.com

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Traders Dynamic Index


Volatility Bands compared to Intraday Price Action
Tight Price Range

Tight Volatility Band

CompassFX, 2008 www.compassfx.com

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2008 Compass Foreign Exchange, LLC. All rights reserved. *Disclaimer: Trading Foreign Exchange (Forex) carries a high level of risk and is not suitable for all investors. There is a possibility that you could sustain a loss of all or more of your investment therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading. Past performance is not indicative of future results..

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Trading TDI
Treat the TDI as your Trading Buddy to inform and/or confirm price action. Confirm Entry and Exit conditions. Determine Positive or Negative sentiment. Look for Bullish and Bearish Divergence.

CompassFX, 2008 www.compassfx.com

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Trading TDI
Use the Green line of the TDI as market sentiment compared to Price activity when considering Bullish Divergence.

Bullish Divergence

CompassFX, 2008 www.compassfx.com

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2008 Compass Foreign Exchange, LLC. All rights reserved. *Disclaimer: Trading Foreign Exchange (Forex) carries a high level of risk and is not suitable for all investors. There is a possibility that you could sustain a loss of all or more of your investment therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading. Past performance is not indicative of future results..

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Trading TDI
Use the Green line of the TDI as market sentiment compared to Price activity when considering Bearish Divergence.

Bearish Divergence

CompassFX, 2008 www.compassfx.com

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Applying TDI
Indicator name = Synergy_TDI
1. 2. Apply a Synergy_basic or Synergy_2 template to a chart. Double click on Synergy_TDI in the Custom Indicator folder found in the Navigator window.

CompassFX, 2008 www.compassfx.com

58

2008 Compass Foreign Exchange, LLC. All rights reserved. *Disclaimer: Trading Foreign Exchange (Forex) carries a high level of risk and is not suitable for all investors. There is a possibility that you could sustain a loss of all or more of your investment therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading. Past performance is not indicative of future results..

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Applying TDI

1. Go to Navigator window > Custom Indicators > Synergy_TDI 2. Double left click to attach to chart. 3. Click on OK.

CompassFX, 2008 www.compassfx.com

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Applying TDI
Automatically applies internal parameters according to currency pair and time frame. TDI Fast an On / Off setting to run a faster version of the Traders Dynamic Index.

CompassFX, 2008 www.compassfx.com

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2008 Compass Foreign Exchange, LLC. All rights reserved. *Disclaimer: Trading Foreign Exchange (Forex) carries a high level of risk and is not suitable for all investors. There is a possibility that you could sustain a loss of all or more of your investment therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading. Past performance is not indicative of future results..

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TDI vs. Fast TDI

Fast TDI

CompassFX, 2008 www.compassfx.com

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SYNERGY Trading Method


Basic Entry Rules

CompassFX, 2008 www.compassfx.com

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2008 Compass Foreign Exchange, LLC. All rights reserved. *Disclaimer: Trading Foreign Exchange (Forex) carries a high level of risk and is not suitable for all investors. There is a possibility that you could sustain a loss of all or more of your investment therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading. Past performance is not indicative of future results..

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SYNERGY Method
Basic Entry Rules
Long Entry: (All conditions are satisfied.)
1. APB haClose > PAC High Moving Average. 2. PAC trending up. 3. TDI = RSI PL > 50, TSL, and MBL. MBL

Short Entry: (All conditions are satisfied.)


1. APB haClose < PAC Low Moving Average. 2. PAC trending down. 3. TDI = RSI PL < 50, TSL, and MBL. MBL
CompassFX, 2008 www.compassfx.com

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SYNERGY Method
Traders Dynamic Index (TDI)
Long entry = RSI PL > 50, TSL, and MBL. Consider adding to a Long position if:
Green > upper Volatility Band & > 50, but < 68.

Avoid entering a Long position if:


Green > upper Volatility Band, > 50, and > 68.

CompassFX, 2008 www.compassfx.com

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2008 Compass Foreign Exchange, LLC. All rights reserved. *Disclaimer: Trading Foreign Exchange (Forex) carries a high level of risk and is not suitable for all investors. There is a possibility that you could sustain a loss of all or more of your investment therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading. Past performance is not indicative of future results..

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SYNERGY Method
Traders Dynamic Index (TDI)
Short entry = RSI PL < 50, TSL, and MBL. Consider adding to Short if:
Green < lower Volatility Band & < 50, but > 32.

Avoid entering a Short position if:


Green < lower Volatility Band, < 50, and < 32.

CompassFX, 2008 www.compassfx.com

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SYNERGY Trading Method


Basic Exit Rules

CompassFX, 2008 www.compassfx.com

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2008 Compass Foreign Exchange, LLC. All rights reserved. *Disclaimer: Trading Foreign Exchange (Forex) carries a high level of risk and is not suitable for all investors. There is a possibility that you could sustain a loss of all or more of your investment therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading. Past performance is not indicative of future results..

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SYNERGY Method
APB Long exit
Positive bar is much shorter than the previous bar or changes to a negative bar at close.

PAC Long exit


APB closes inside the channel.

TDI Long exit


1. RSI PL crosses back below TSL to the downside. 2. RSI PL > 68 [5-minute chart] 3. RSI PL crosses back below the upper Volatility Band.
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CompassFX, 2008 www.compassfx.com

SYNERGY Method
APB Short exit
Negative bar is much shorter than the previous bar or changes to a positive bar at close.

PAC Short exit


APB closes inside the channel.

TDI Short exit


1. RSI PL crosses back over the TSL to the upside. 2. RSI PL < 32 [5-minute chart] 3. RSI PL crosses back above the lower Volatility Band.

CompassFX, 2008 www.compassfx.com

68

2008 Compass Foreign Exchange, LLC. All rights reserved. *Disclaimer: Trading Foreign Exchange (Forex) carries a high level of risk and is not suitable for all investors. There is a possibility that you could sustain a loss of all or more of your investment therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading. Past performance is not indicative of future results..

34

SYNERGY Trading Method


Scale Out Exit

CompassFX, 2008 www.compassfx.com

69

SYNERGY Method
Three lower Highs in a row indicate a potential Scale out for a Long trade.

CompassFX, 2008 www.compassfx.com

70

2008 Compass Foreign Exchange, LLC. All rights reserved. *Disclaimer: Trading Foreign Exchange (Forex) carries a high level of risk and is not suitable for all investors. There is a possibility that you could sustain a loss of all or more of your investment therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading. Past performance is not indicative of future results..

35

SYNERGY Method
Scale out examples of a Long trade.

CompassFX, 2008 www.compassfx.com

71

SYNERGY Method
Three higher Lows in a row indicate a potential Scale out for a Short trade.

CompassFX, 2008 www.compassfx.com

72

2008 Compass Foreign Exchange, LLC. All rights reserved. *Disclaimer: Trading Foreign Exchange (Forex) carries a high level of risk and is not suitable for all investors. There is a possibility that you could sustain a loss of all or more of your investment therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading. Past performance is not indicative of future results..

36

SYNERGY Method
Scale out examples of a Short trade.

CompassFX, 2008 www.compassfx.com

73

SYNERGY 2.0 Trading Method


Advanced Techniques

CompassFX, 2008 www.compassfx.com

2008 Compass Foreign Exchange, LLC. All rights reserved. *Disclaimer: Trading Foreign Exchange (Forex) carries a high level of risk and is not suitable for all investors. There is a possibility that you could sustain a loss of all or more of your investment therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading. Past performance is not indicative of future results..

37

MTF

Price Action

Volatility

Market Strength

SYNERGY 2.0
Support & Resistance Momentum

Range

Trend

CompassFX, 2008 www.compassfx.com

75

SYNERGY 2.0
Advanced Techniques 1. 2. 3. 4. 5. 6. 7. 8. 9.
CompassFX, 2008 www.compassfx.com

Price action Market Strength Momentum Trend Support & Resistance Volatility Range Continuation Multiple Time Frames
76

2008 Compass Foreign Exchange, LLC. All rights reserved. *Disclaimer: Trading Foreign Exchange (Forex) carries a high level of risk and is not suitable for all investors. There is a possibility that you could sustain a loss of all or more of your investment therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading. Past performance is not indicative of future results..

38

Dynamic Support and Resistance

Volatility Range Continuation MTF


CompassFX, 2008 www.compassfx.com

77

SYNERGY 2.0
Advanced Chart Setup Average Price Bars (APB) Price Action Channel (PAC) Traders Dynamic Index (TDI) Dynamic Support / Resistance Volatility Range Factor Continuation MTF (Multiple Time Frame)
CompassFX, 2008 www.compassfx.com

78

2008 Compass Foreign Exchange, LLC. All rights reserved. *Disclaimer: Trading Foreign Exchange (Forex) carries a high level of risk and is not suitable for all investors. There is a possibility that you could sustain a loss of all or more of your investment therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading. Past performance is not indicative of future results..

39

Dynamic Support Resistance

CompassFX, 2008 www.compassfx.com

79

Dynamic Support Resistance


Primarily used as an intraday trading tool. Dynamic S/R changes levels of S/R in harmony with current price activity unlike typical S/R levels remaining constant thru the day such as Daily H/L or Pivot levels. The unique design of the Dynamic S/R provides an effective interpretation of price behavior.
CompassFX, 2008 www.compassfx.com

80

2008 Compass Foreign Exchange, LLC. All rights reserved. *Disclaimer: Trading Foreign Exchange (Forex) carries a high level of risk and is not suitable for all investors. There is a possibility that you could sustain a loss of all or more of your investment therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading. Past performance is not indicative of future results..

40

Dynamic Support Resistance


Acts similar to typical S/R levels. During market congestion, Dynamic S/R levels will tighten toward each other. During trends, Dynamic S/R can be used to determine appropriate areas to enter a new position, exit a position or add to an existing position.

CompassFX, 2008 www.compassfx.com

81

Dynamic Support Resistance


Dynamic Resistance

Dynamic Mean Dynamic Support


CompassFX, 2008 www.compassfx.com

82

2008 Compass Foreign Exchange, LLC. All rights reserved. *Disclaimer: Trading Foreign Exchange (Forex) carries a high level of risk and is not suitable for all investors. There is a possibility that you could sustain a loss of all or more of your investment therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading. Past performance is not indicative of future results..

41

Trading Dynamic S / R
Dynamic Resistance
1. Potential Long target from Dynamic Mean. 2. Look for a possible Bounce to the downside. 3. Look for possible Break above. 4. If a Break above
a. Consider waiting for a retest. b. Consider adding to Long position.

CompassFX, 2008 www.compassfx.com

83

Trading Dynamic S / R

Trade Long

CompassFX, 2008 www.compassfx.com

84

2008 Compass Foreign Exchange, LLC. All rights reserved. *Disclaimer: Trading Foreign Exchange (Forex) carries a high level of risk and is not suitable for all investors. There is a possibility that you could sustain a loss of all or more of your investment therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading. Past performance is not indicative of future results..

42

Trading Dynamic S / R

Bounce off Resistance

CompassFX, 2008 www.compassfx.com

85

Trading Dynamic S / R
Trade Long & Add

Trade Long & Add

Break of Dynamic Resistance


CompassFX, 2008 www.compassfx.com

86

2008 Compass Foreign Exchange, LLC. All rights reserved. *Disclaimer: Trading Foreign Exchange (Forex) carries a high level of risk and is not suitable for all investors. There is a possibility that you could sustain a loss of all or more of your investment therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading. Past performance is not indicative of future results..

43

Trading Dynamic S / R
Break of Dynamic Resistance

Trade Long after Break of Resistance

CompassFX, 2008 www.compassfx.com

87

Dynamic Support

Dynamic Support
CompassFX, 2008 www.compassfx.com

88

2008 Compass Foreign Exchange, LLC. All rights reserved. *Disclaimer: Trading Foreign Exchange (Forex) carries a high level of risk and is not suitable for all investors. There is a possibility that you could sustain a loss of all or more of your investment therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading. Past performance is not indicative of future results..

44

Trading Dynamic S / R
Dynamic Support
1. Potential Short target from Dynamic Mean. 2. Look for a possible Bounce to the upside. 3. Look for possible Break below. 4. If a Break below
a. Consider waiting for a retest. b. Consider adding to Short position.

CompassFX, 2008 www.compassfx.com

89

Trading Dynamic S / R

Trade Short

CompassFX, 2008 www.compassfx.com

90

2008 Compass Foreign Exchange, LLC. All rights reserved. *Disclaimer: Trading Foreign Exchange (Forex) carries a high level of risk and is not suitable for all investors. There is a possibility that you could sustain a loss of all or more of your investment therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading. Past performance is not indicative of future results..

45

Trading Dynamic S / R

Bounce off Support

CompassFX, 2008 www.compassfx.com

91

Trading Dynamic S / R

Break below Dynamic Support

Trade Short & Add

CompassFX, 2008 www.compassfx.com

92

2008 Compass Foreign Exchange, LLC. All rights reserved. *Disclaimer: Trading Foreign Exchange (Forex) carries a high level of risk and is not suitable for all investors. There is a possibility that you could sustain a loss of all or more of your investment therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading. Past performance is not indicative of future results..

46

Dynamic Mean

Dynamic Mean

CompassFX, 2008 www.compassfx.com

93

Trading Dynamic S / R
Dynamic Mean
1. When price is Abovetrade Long. 2. When price is Belowtrade Short. 3. Avoid trading Long if price below it. 4. Avoid trading Short if price above it.

CompassFX, 2008 www.compassfx.com

94

2008 Compass Foreign Exchange, LLC. All rights reserved. *Disclaimer: Trading Foreign Exchange (Forex) carries a high level of risk and is not suitable for all investors. There is a possibility that you could sustain a loss of all or more of your investment therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading. Past performance is not indicative of future results..

47

Trading Dynamic S / R
Dynamic Mean
1. Price is above look to trade long. 2. Price is below look to trade short. 3. Avoid trading Long if below it. 4. Avoid trading Short if above it.

Dynamic Resistance
Break above = Trade Long or add to existing Long position.

Dynamic Support
Break below = Trade Short or add to existing Short position.
CompassFX, 2008 www.compassfx.com

95

Dynamic S / R
Indicator name = Synergy_DSR
1. 2. Apply a Synergy_2 template to a chart. Double click on Synergy_DSR in the Custom Indicator folder found in the Navigator window.

CompassFX, 2008 www.compassfx.com

96

2008 Compass Foreign Exchange, LLC. All rights reserved. *Disclaimer: Trading Foreign Exchange (Forex) carries a high level of risk and is not suitable for all investors. There is a possibility that you could sustain a loss of all or more of your investment therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading. Past performance is not indicative of future results..

48

Applying Dynamic S / R

1. Go to Navigator window > Custom Indicators > Synergy_DSR. 2. Double left click to attach to chart. 3. Click on OK.

CompassFX, 2008 www.compassfx.com

97

Comparing DSR Levels


Dynamic Resistance
5 Minute Chart 1 Hour Chart

Dynamic Support
CompassFX, 2008 www.compassfx.com

98

2008 Compass Foreign Exchange, LLC. All rights reserved. *Disclaimer: Trading Foreign Exchange (Forex) carries a high level of risk and is not suitable for all investors. There is a possibility that you could sustain a loss of all or more of your investment therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading. Past performance is not indicative of future results..

49

Volatility

CompassFX, 2008 www.compassfx.com

99

Volatility
The statistical measure of rate of change in price activity from one period to the next or over a period of time intervals.

CompassFX, 2008 www.compassfx.com

100

2008 Compass Foreign Exchange, LLC. All rights reserved. *Disclaimer: Trading Foreign Exchange (Forex) carries a high level of risk and is not suitable for all investors. There is a possibility that you could sustain a loss of all or more of your investment therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading. Past performance is not indicative of future results..

50

Volatility
Primarily used as a filter to determine strength or weakness of price activity. Designed to illustrate periods of low market volatility which helps to eliminate possible trade entries in periods of market doldrums.

CompassFX, 2008 www.compassfx.com

101

Volatility
When buyers buy Long more and more in the market, prices activity increases causing Volatility to rise. When buyers stop buying and start closing their positions, price activity decreases causing Volatility to decline.

CompassFX, 2008 www.compassfx.com

102

2008 Compass Foreign Exchange, LLC. All rights reserved. *Disclaimer: Trading Foreign Exchange (Forex) carries a high level of risk and is not suitable for all investors. There is a possibility that you could sustain a loss of all or more of your investment therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading. Past performance is not indicative of future results..

51

Volatility
When sellers sell Short more and more in the market, price activity increases causing Volatility to rise. When sellers stop short selling and start closing their positions, price activity falls causing Volatility to decrease.

CompassFX, 2008 www.compassfx.com

103

Volatility
High volatility:
Rising Volatility line above red line.

CompassFX, 2008 www.compassfx.com

104

2008 Compass Foreign Exchange, LLC. All rights reserved. *Disclaimer: Trading Foreign Exchange (Forex) carries a high level of risk and is not suitable for all investors. There is a possibility that you could sustain a loss of all or more of your investment therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading. Past performance is not indicative of future results..

52

Volatility
Low volatility:
Falling Volatility line above red line.

CompassFX, 2008 www.compassfx.com

105

Volatility
Zero volatility:
Volatility line below the red line.

CompassFX, 2008 www.compassfx.com

106

2008 Compass Foreign Exchange, LLC. All rights reserved. *Disclaimer: Trading Foreign Exchange (Forex) carries a high level of risk and is not suitable for all investors. There is a possibility that you could sustain a loss of all or more of your investment therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading. Past performance is not indicative of future results..

53

Trading Volatility
Entering EnteringLong Longor orShort: Short: .. Look Lookfor forrising risingVolatility Volatilityline line

High HighVolatility Volatility

CompassFX, 2008 www.compassfx.com

107

Trading Volatility
Exiting ExitingLong Longor orShort: Short: Look .. Lookfor forfalling fallingVolatility Volatilityline line

Low LowVolatility Volatility

CompassFX, 2008 www.compassfx.com

108

2008 Compass Foreign Exchange, LLC. All rights reserved. *Disclaimer: Trading Foreign Exchange (Forex) carries a high level of risk and is not suitable for all investors. There is a possibility that you could sustain a loss of all or more of your investment therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading. Past performance is not indicative of future results..

54

Trading Volatility
Avoid Avoidtrading tradingduring duringZero ZeroVolatility! Volatility!

Zero ZeroVolatility Volatility

CompassFX, 2008 www.compassfx.com

109

Volatility
Indicator name = Synergy_Volatility
1. 2. Apply a Synergy_2 template to a chart. Double click on Synergy_Volatility in the Custom Indicator folder found in the Navigator window.

CompassFX, 2008 www.compassfx.com

110

2008 Compass Foreign Exchange, LLC. All rights reserved. *Disclaimer: Trading Foreign Exchange (Forex) carries a high level of risk and is not suitable for all investors. There is a possibility that you could sustain a loss of all or more of your investment therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading. Past performance is not indicative of future results..

55

Applying Volatility

1. Go to Navigator window > Custom Indicators > Synergy_Volatility. 2. Double left click to attach to chart. 3. If desired, double left click on MyLevel value and enter value. 4. Click on OK.
CompassFX, 2008 www.compassfx.com

111

Applying Volatility
Automatically adjust Volatility red line level according to currency pair and time frame. Option: Selectable red line settings from the Inputs window as MyLevel.

CompassFX, 2008 www.compassfx.com

112

2008 Compass Foreign Exchange, LLC. All rights reserved. *Disclaimer: Trading Foreign Exchange (Forex) carries a high level of risk and is not suitable for all investors. There is a possibility that you could sustain a loss of all or more of your investment therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading. Past performance is not indicative of future results..

56

Applying Volatility
Volatility default settings GBP, EUR, and CHF: 1 Minute chart = 0.0001 5 Minute chart = 0.0002 15 Minute chart = 0.0004 30 Minute chart = 0.0006 1 Hour chart = 0.0008 4 Hour chart = 0.0014 Daily = 0.005
CompassFX, 2008 www.compassfx.com

113

Applying Volatility
Volatility default settings JPY: 1 Minute chart = 0.01 5 Minute chart = 0.02 15 Minute chart = 0.04 30 Minute chart = 0.06 1 Hour chart = 0.08 4 Hour chart = 0.14 Daily = 0.5
CompassFX, 2008 www.compassfx.com

114

2008 Compass Foreign Exchange, LLC. All rights reserved. *Disclaimer: Trading Foreign Exchange (Forex) carries a high level of risk and is not suitable for all investors. There is a possibility that you could sustain a loss of all or more of your investment therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading. Past performance is not indicative of future results..

57

Range Factor

CompassFX, 2008 www.compassfx.com

115

Range Factor
Primarily used as filter to determine if price is in a range of inactivity. Designed to avoid trading in periods of inactivity and tight choppy markets. The unique design of the Range Factor helps to eliminate trade entries due to indecision or lack of discipline.

CompassFX, 2008 www.compassfx.com

116

2008 Compass Foreign Exchange, LLC. All rights reserved. *Disclaimer: Trading Foreign Exchange (Forex) carries a high level of risk and is not suitable for all investors. There is a possibility that you could sustain a loss of all or more of your investment therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading. Past performance is not indicative of future results..

58

Range Factor
Compare the Range Factor of different time frames to determine potential strength of market direction. Be aware of varying market directions on smaller and larger times frames. Acts similar to the zero line of a MACD to show which side of the market to trade.

CompassFX, 2008 www.compassfx.com

117

Range Factor
Long outlook Rising RF line above upper blue line. Short outlook Falling RF line below bottom blue line. Range-bound outlook RF line between blue lines.

CompassFX, 2008 www.compassfx.com

118

2008 Compass Foreign Exchange, LLC. All rights reserved. *Disclaimer: Trading Foreign Exchange (Forex) carries a high level of risk and is not suitable for all investors. There is a possibility that you could sustain a loss of all or more of your investment therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading. Past performance is not indicative of future results..

59

Trading Range Factor


Trade Long: Range Factor Line rises above the top blue line. Trade Short: Range Factor Line drops below bottom blue line. Avoid Trading: Range Factor Line between blue lines.

CompassFX, 2008 www.compassfx.com

119

Trading Range Factor

Trade TradeLong Long

Range-boundno Range-boundnotrade trade

CompassFX, 2008 www.compassfx.com

120

2008 Compass Foreign Exchange, LLC. All rights reserved. *Disclaimer: Trading Foreign Exchange (Forex) carries a high level of risk and is not suitable for all investors. There is a possibility that you could sustain a loss of all or more of your investment therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading. Past performance is not indicative of future results..

60

Trading Range Factor

Trade TradeShort Short


CompassFX, 2008 www.compassfx.com

Range-boundno Range-boundnotrade trade


121

Trading Range Factor


30 30Minute MinuteChart Chart 4 4Hour HourChart Chart

CompassFX, 2008 www.compassfx.com

122

2008 Compass Foreign Exchange, LLC. All rights reserved. *Disclaimer: Trading Foreign Exchange (Forex) carries a high level of risk and is not suitable for all investors. There is a possibility that you could sustain a loss of all or more of your investment therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading. Past performance is not indicative of future results..

61

Range Factor
Indicator name = Synergy_RangeFactor
1. 2. Apply a Synergy_2 template to a chart. Double click on Synergy_RangeFactor in the Custom Indicator folder found in the Navigator window.

CompassFX, 2008 www.compassfx.com

123

Applying Range Factor

1. Go to Navigator window > Custom Indicators > Synergy_RangeFactor. 2. Double left click to attach to chart. 3. If desired, double left click MyRange value, and enter value of choice. 4. Click on OK.
CompassFX, 2008 www.compassfx.com

124

2008 Compass Foreign Exchange, LLC. All rights reserved. *Disclaimer: Trading Foreign Exchange (Forex) carries a high level of risk and is not suitable for all investors. There is a possibility that you could sustain a loss of all or more of your investment therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading. Past performance is not indicative of future results..

62

Applying Range Factor


Automatically adjust RF blue line levels according to currency pair and time frame. Option: Selectable blue line settings from the Inputs window as MyRange.

CompassFX, 2008 www.compassfx.com

125

Applying Range Factor


Range Factor default settings: 1 Minute chart = 0.01 5 Minute chart = 0.02 15 Minute chart = 0.04 30 Minute chart = 0.06 1 Hour chart = 0.08 4 Hour chart = 0.14 Daily = 0.4
CompassFX, 2008 www.compassfx.com

126

2008 Compass Foreign Exchange, LLC. All rights reserved. *Disclaimer: Trading Foreign Exchange (Forex) carries a high level of risk and is not suitable for all investors. There is a possibility that you could sustain a loss of all or more of your investment therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading. Past performance is not indicative of future results..

63

Continuation

CompassFX, 2008 www.compassfx.com

127

Continuation
A moving average of the Average Price Bars. An indication of continued market momentum. Designed to provide a view of possible trend continuation in order to stay in a trade longer.

CompassFX, 2008 www.compassfx.com

128

2008 Compass Foreign Exchange, LLC. All rights reserved. *Disclaimer: Trading Foreign Exchange (Forex) carries a high level of risk and is not suitable for all investors. There is a possibility that you could sustain a loss of all or more of your investment therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading. Past performance is not indicative of future results..

64

Trading Continuation
Possible Exits

Continuation

CompassFX, 2008 www.compassfx.com

129

Trading Continuation

Possible Exit Continuation

CompassFX, 2008 www.compassfx.com

130

2008 Compass Foreign Exchange, LLC. All rights reserved. *Disclaimer: Trading Foreign Exchange (Forex) carries a high level of risk and is not suitable for all investors. There is a possibility that you could sustain a loss of all or more of your investment therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading. Past performance is not indicative of future results..

65

Continuation
Indicator name = Synergy_Continuation
1. 2. Apply a Synergy_2 template to a chart. Double click on Synergy_Continuation in the Custom Indicator folder found in the Navigator window.

CompassFX, 2008 www.compassfx.com

131

Applying Continuation

1. Go to Navigator window > Custom Indicators > Synergy_Continuation 2. Double left click to attach to chart. 3. Adjust values of MA_Method and MA_Period, if desired. 4. Click on OK.
132

CompassFX, 2008 www.compassfx.com

2008 Compass Foreign Exchange, LLC. All rights reserved. *Disclaimer: Trading Foreign Exchange (Forex) carries a high level of risk and is not suitable for all investors. There is a possibility that you could sustain a loss of all or more of your investment therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading. Past performance is not indicative of future results..

66

Applying Continuation
Input the Moving Average method. Default Setting = 0 0 = SMA, 1 = EMA Input the Moving Average period. Default setting = 2.0

CompassFX, 2008 www.compassfx.com

133

Synergy MTF

CompassFX, 2008 www.compassfx.com

134

2008 Compass Foreign Exchange, LLC. All rights reserved. *Disclaimer: Trading Foreign Exchange (Forex) carries a high level of risk and is not suitable for all investors. There is a possibility that you could sustain a loss of all or more of your investment therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading. Past performance is not indicative of future results..

67

Synergy MTF
A multiple time frame indicator designed solely to monitor the Advanced Synergy conditions of other time frames.

CompassFX, 2008 www.compassfx.com

135

Synergy MTF
Synergy MTF is an optional indicator. When applied to a chart, it updates in real-time the normal Advanced Synergy conditions of other time frames for that specific currency pair.

CompassFX, 2008 www.compassfx.com

136

2008 Compass Foreign Exchange, LLC. All rights reserved. *Disclaimer: Trading Foreign Exchange (Forex) carries a high level of risk and is not suitable for all investors. There is a possibility that you could sustain a loss of all or more of your investment therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading. Past performance is not indicative of future results..

68

Synergy MTF
It does not affect the Synergy Trade Signal or other Advanced Synergy indicators when applied to a chart. It is intended for traders who prefer to trade knowing the current status of other time frames.

CompassFX, 2008 www.compassfx.com

137

Synergy MTF
Illustrates the current status, tick-by-tick, of other time frames by showing 1 of 5 market conditions:
Average Price bar is blue. Average Price bar is red. Green arrow indicating a Buy / Long condition. Red arrow indicating a Sell / Short condition. or Yellow arrow indicating slow momentum.
CompassFX, 2008 www.compassfx.com

138

2008 Compass Foreign Exchange, LLC. All rights reserved. *Disclaimer: Trading Foreign Exchange (Forex) carries a high level of risk and is not suitable for all investors. There is a possibility that you could sustain a loss of all or more of your investment therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading. Past performance is not indicative of future results..

69

Synergy MTF

CompassFX, 2008 www.compassfx.com

139

Synergy MTF
USDCHF 4-hour chart

CompassFX, 2008 www.compassfx.com

140

2008 Compass Foreign Exchange, LLC. All rights reserved. *Disclaimer: Trading Foreign Exchange (Forex) carries a high level of risk and is not suitable for all investors. There is a possibility that you could sustain a loss of all or more of your investment therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading. Past performance is not indicative of future results..

70

Synergy MTF
Blue APB on 5 minute chart

CompassFX, 2008 www.compassfx.com

141

Synergy MTF
Blue APB on 15 minute chart

CompassFX, 2008 www.compassfx.com

142

2008 Compass Foreign Exchange, LLC. All rights reserved. *Disclaimer: Trading Foreign Exchange (Forex) carries a high level of risk and is not suitable for all investors. There is a possibility that you could sustain a loss of all or more of your investment therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading. Past performance is not indicative of future results..

71

Synergy MTF
Red APB on 30 minute chart

CompassFX, 2008 www.compassfx.com

143

Synergy MTF
Red APB on 1 hour chart

CompassFX, 2008 www.compassfx.com

144

2008 Compass Foreign Exchange, LLC. All rights reserved. *Disclaimer: Trading Foreign Exchange (Forex) carries a high level of risk and is not suitable for all investors. There is a possibility that you could sustain a loss of all or more of your investment therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading. Past performance is not indicative of future results..

72

Synergy MTF
Yellow arrow on 4 hour chart

CompassFX, 2008 www.compassfx.com

145

Synergy MTF
Green arrow on Daily chart

CompassFX, 2008 www.compassfx.com

146

2008 Compass Foreign Exchange, LLC. All rights reserved. *Disclaimer: Trading Foreign Exchange (Forex) carries a high level of risk and is not suitable for all investors. There is a possibility that you could sustain a loss of all or more of your investment therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading. Past performance is not indicative of future results..

73

Synergy MTF
Blue APB on Weekly chart

CompassFX, 2008 www.compassfx.com

147

Trading Synergy MTF


Step 1 Consider your trading style: Scalper, Active, Conservative, or Position.

CompassFX, 2008 www.compassfx.com

148

2008 Compass Foreign Exchange, LLC. All rights reserved. *Disclaimer: Trading Foreign Exchange (Forex) carries a high level of risk and is not suitable for all investors. There is a possibility that you could sustain a loss of all or more of your investment therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading. Past performance is not indicative of future results..

74

Trading Synergy MTF


Step 2 Consider the Synergy rules on the current time frame.

CompassFX, 2008 www.compassfx.com

149

Trading Synergy MTF


Step 3 Consider a higher time frame for overall trend direction.

CompassFX, 2008 www.compassfx.com

150

2008 Compass Foreign Exchange, LLC. All rights reserved. *Disclaimer: Trading Foreign Exchange (Forex) carries a high level of risk and is not suitable for all investors. There is a possibility that you could sustain a loss of all or more of your investment therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading. Past performance is not indicative of future results..

75

Trading Synergy MTF


Step 4 Consider lower time frames for Entry / Exit warning.

CompassFX, 2008 www.compassfx.com

151

Synergy MTF
Indicator name = Synergy_MTF
1. 2. Apply a Synergy_2 template to a chart. Double click on Synergy_MTF in the Custom Indicator folder found in the Navigator window.

CompassFX, 2008 www.compassfx.com

152

2008 Compass Foreign Exchange, LLC. All rights reserved. *Disclaimer: Trading Foreign Exchange (Forex) carries a high level of risk and is not suitable for all investors. There is a possibility that you could sustain a loss of all or more of your investment therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading. Past performance is not indicative of future results..

76

Applying Synergy MTF

1. Go to Navigator window > Custom Indicators > Synergy_MTF 2. Double left click to attach to chart. 3. If desired, you can change the Label Display color. 4. Click on OK.
CompassFX, 2008 www.compassfx.com

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Applying Synergy MTF


Automatically reads and depicts current status on each time frame according to currency pair applied.

Modifying the Label Display color.

CompassFX, 2008 www.compassfx.com

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2008 Compass Foreign Exchange, LLC. All rights reserved. *Disclaimer: Trading Foreign Exchange (Forex) carries a high level of risk and is not suitable for all investors. There is a possibility that you could sustain a loss of all or more of your investment therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading. Past performance is not indicative of future results..

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Applying Synergy MTF


Synergy MTF Labels missing?

CompassFX, 2008 www.compassfx.com

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Applying Synergy MTF


1. Right click on chart. 2. Select Auto Arrange.

CompassFX, 2008 www.compassfx.com

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2008 Compass Foreign Exchange, LLC. All rights reserved. *Disclaimer: Trading Foreign Exchange (Forex) carries a high level of risk and is not suitable for all investors. There is a possibility that you could sustain a loss of all or more of your investment therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading. Past performance is not indicative of future results..

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Applying Synergy MTF

Automatically shifts chart to view Synergy MTF Labels!

CompassFX, 2008 www.compassfx.com

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Synergy Trade Signal

CompassFX, 2008 www.compassfx.com

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2008 Compass Foreign Exchange, LLC. All rights reserved. *Disclaimer: Trading Foreign Exchange (Forex) carries a high level of risk and is not suitable for all investors. There is a possibility that you could sustain a loss of all or more of your investment therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading. Past performance is not indicative of future results..

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Synergy Trade Signal


1. 2. 3. 4. 5. 6. Price action Momentum Strength Support & Resistance Volatility Range

Synergy Trade Signal

CompassFX, 2008 www.compassfx.com

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Synergy Trade Signal


When the combined parameters of these indicators identify Long or Short conditions, the Synergy Trade Signal is triggered.

Average Price Bars Price Action Channel Traders Dynamic Index Dynamic Support & Resistance Volatility Range Factor
CompassFX, 2008 www.compassfx.com

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2008 Compass Foreign Exchange, LLC. All rights reserved. *Disclaimer: Trading Foreign Exchange (Forex) carries a high level of risk and is not suitable for all investors. There is a possibility that you could sustain a loss of all or more of your investment therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading. Past performance is not indicative of future results..

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Synergy Trade Signal


When triggered, the Synergy Trade Signal will automatically: Show a Green arrow below or a Red above the Price Action Channel. If momentum changes, the Green or Red arrow will change to a Yellow arrow. Sound an audible alert. Display an Alert pop-up box.

CompassFX, 2008 www.compassfx.com

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Synergy Trade Signal


Synergy SynergyTrade TradeSignal Signal Green arrows = Green arrows =Long Longconditions conditions Red Redarrows arrows= =Short Shortconditions conditions Yellow Yellowarrows arrows= =Slowing Slowingmomentum momentum

CompassFX, 2008 www.compassfx.com

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2008 Compass Foreign Exchange, LLC. All rights reserved. *Disclaimer: Trading Foreign Exchange (Forex) carries a high level of risk and is not suitable for all investors. There is a possibility that you could sustain a loss of all or more of your investment therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading. Past performance is not indicative of future results..

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Synergy Trade Signal

CompassFX, 2008 www.compassfx.com

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Synergy Trade Signal

3:35:41 USDCHF: Buy condition at 1.0342 on 1-hour chart

Buy conditions shown at Ask price. Sell condition shown at Bid price.
CompassFX, 2008 www.compassfx.com

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2008 Compass Foreign Exchange, LLC. All rights reserved. *Disclaimer: Trading Foreign Exchange (Forex) carries a high level of risk and is not suitable for all investors. There is a possibility that you could sustain a loss of all or more of your investment therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading. Past performance is not indicative of future results..

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Synergy Trade Signal

3:35:41 USDCHF: Buy condition at 1.0342 on 1-hour chart

All alerts include an Audible alert and local Time stamp.


CompassFX, 2008 www.compassfx.com

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Synergy Trade Signal


Indicator name = Synergy_TradeSignal
1. 2. Apply a Synergy_2 template to a chart. Double click on Synergy_TradeSignal in the Custom Indicator folder found in the Navigator window.

CompassFX, 2008 www.compassfx.com

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2008 Compass Foreign Exchange, LLC. All rights reserved. *Disclaimer: Trading Foreign Exchange (Forex) carries a high level of risk and is not suitable for all investors. There is a possibility that you could sustain a loss of all or more of your investment therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading. Past performance is not indicative of future results..

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Applying Synergy Trade Signal


When applying the Synergy Trade Signal, it will automatically: Recognize the time period of the chart. Adjust the Range Factor parameters. Adjust the Volatility parameters.

CompassFX, 2008 www.compassfx.com

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Applying Synergy Trade Signal

1. Go to Navigator window > Custom Indicators > Synergy_TradeSignal. 2. Double left click to attach to chart. 3. Click on Inputs tab to input Email and Password (at first use). 4. Modify any other values.
CompassFX, 2008 www.compassfx.com

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2008 Compass Foreign Exchange, LLC. All rights reserved. *Disclaimer: Trading Foreign Exchange (Forex) carries a high level of risk and is not suitable for all investors. There is a possibility that you could sustain a loss of all or more of your investment therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading. Past performance is not indicative of future results..

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Trade Signal Display

Synergy 2.0 users can personalize their trade setups within the Synergy Trade Signal by turning parameters On and Off.

CompassFX, 2008 www.compassfx.com

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Trade Signal Display


On / Off trade parameters:
Trade Signal Display Yellow arrows Dynamic S/R Range Factor PAC Surf Fast Traders Dynamic Index Audible Alerts
CompassFX, 2008 www.compassfx.com

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2008 Compass Foreign Exchange, LLC. All rights reserved. *Disclaimer: Trading Foreign Exchange (Forex) carries a high level of risk and is not suitable for all investors. There is a possibility that you could sustain a loss of all or more of your investment therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading. Past performance is not indicative of future results..

85

Trade Style Settings

Personalize Trade Settings

1. 2. 3. 4. 5. 6.
CompassFX, 2008 www.compassfx.com

At the top menu bar select Charts > Indicators List. A pop-up window with a listing of indicators will appear. Click on Synergy_TradeSignal. Click on Edit and the above window will appear. Scroll down to any parameter and change to On / Off condition. Click OK.
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Trade Signal Display


Display Corner placement: Upper Left Upper Right Lower Left Lower Right

CompassFX, 2008 www.compassfx.com

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2008 Compass Foreign Exchange, LLC. All rights reserved. *Disclaimer: Trading Foreign Exchange (Forex) carries a high level of risk and is not suitable for all investors. There is a possibility that you could sustain a loss of all or more of your investment therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading. Past performance is not indicative of future results..

86

Moving T. S. Display

Move the Trade Signal Display

CompassFX, 2008 www.compassfx.com

1. 2. 3. 4. 5. 6. 7.

At the top menu bar select Charts > Indicators List. A pop-up window with a listing of indicators will appear. Click on Synergy_TradeSignal. Click on Edit and the above window will appear. Scroll down to Display Corner and change to 0, 1, 2, or 3. Upper Left = 0, Upper Right = 1, Low Left = 2, Low Right = 3. Click OK.

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Disabling T. S. Display
Disabling the Trade Signal Display

1. 2. 3. 4. 5. 6.
CompassFX, 2008 www.compassfx.com

At the top menu bar select Charts > Indicators List. A pop-up window with a listing of indicators will appear. Click on Synergy_TradeSignal. Click on Edit and the above window will appear. Scroll down to Enable Display and change to Off. Click OK.
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2008 Compass Foreign Exchange, LLC. All rights reserved. *Disclaimer: Trading Foreign Exchange (Forex) carries a high level of risk and is not suitable for all investors. There is a possibility that you could sustain a loss of all or more of your investment therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading. Past performance is not indicative of future results..

87

Change T.S. Display Color


Change Trade Signal Display Color

1. 2. 3. 4. 5. 6.
CompassFX, 2008 www.compassfx.com

At the top menu bar select Charts > Indicators List. A pop-up window with a listing of indicators will appear. Click on Synergy_TradeSignal. Click on Edit and the above window will appear. Scroll down to Display Color and double click on White. Select color and click OK.
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Modifying Range Factor

Modifying the RangeFactor

1. Double click on the MyRangeFactor value. 2. Enter value of choice. 3. Scroll thru RangeFactor_Help to view suggested values. 4. Click OK.
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CompassFX, 2008 www.compassfx.com

2008 Compass Foreign Exchange, LLC. All rights reserved. *Disclaimer: Trading Foreign Exchange (Forex) carries a high level of risk and is not suitable for all investors. There is a possibility that you could sustain a loss of all or more of your investment therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading. Past performance is not indicative of future results..

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Modifying Volatility

Modifying the Volatility

1. Double click on the MyVolatility value. 2. Enter value of choice. 3. Scroll thru Volatility_Help to view suggested values. 4. Click OK.
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CompassFX, 2008 www.compassfx.com

Disabling Audible Alert


Disabling the Audible Alert

1. 2. 3. 4. 5. 6.
CompassFX, 2008 www.compassfx.com

At the top menu bar select Charts > Indicators List. An pop-up window with a listing of indicators will appear. Click on Synergy_TradeSignal. Click on Edit and the above window will appear. Scroll down to Enable Alert and change to Off. Click OK.
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2008 Compass Foreign Exchange, LLC. All rights reserved. *Disclaimer: Trading Foreign Exchange (Forex) carries a high level of risk and is not suitable for all investors. There is a possibility that you could sustain a loss of all or more of your investment therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading. Past performance is not indicative of future results..

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