MIS v2014 Info

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I Learn to trade I Learn a trade I V2014 MIS [Manual Trading Strategy] Lets get to know MIS a little bit!

The MIS H4 Template: The template is set on to Meta Trader 4. Below the price chart there are three indicator windows which are not visible in the picture below but due to size and resolution.

Principles: In a trading period being the H4 time frame, we determine the tops and bottoms as per the indicators and also as per price support and resistance levels. We are walking on two legs here, the indicators and the matching support and resistance levels on the price. Once a level of interest is defined, we drop to the lower time period being etiher the m15 or the m30 and enter when we receive a clear entry signal.

Opening additional positions: The price levels caught at tops and bottoms give us the opportunity to add positions now in the new move developing from the top or the bottom by using the signals in the smaller time frame. This keeps the trader always on the right side of the trend until the defined targets or until the indicators dictate otherwise.

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What you need to know: MIS will not give you trading opportunities every day! The system has to show you that there is a reasonable top and bottom that is being reached. Thus, we do not enter trades when ever we feel like it. Only trade with the rules.

Below is USDJPY 4 hour chart. Lets first take a look and later I will make some explanations.

The below USDJPY is streching from the end of February 2014 to end of April 2014 on the H4 time frame. As you can see the yellow circles, the tops and bottoms, have occurred only 5 times in that period according to the indicators.

The movements ranging from 250 to 300 pips. When we enter trades these are the types of tops and bottoms we are first waiting for! Only once this occurs we start to wait for a "u" turn on the lower time frames m15 or m30. Afterwards we can add positions in the same direction as long as we get a clear signal on the lower time frames.

How do we determine tops and bottoms?: For a lot of traders this is a dilemma and many say there is no way to pick tops and bottoms. That is not true! Unless there is

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something drastic in the global economy in terms of news or war etc... we can very reasonably determine tops and bottoms.

Lets talk about the indicators: There are three indicator windows: 1- Combination indicator window; this gives us a sign that the prices are nearing the bottom/ top. This indicator is visually easy to understand and when you get used to bringing it all together, one glance will let you know if you need to trade or go to the gym today.

2- Timing indicator window; this indicator is a part of the harmony of all the indicators that are used. When it is in the trading zones confirmed by the combination indicator then you need to settle down and wait for the prey to come. In the same window I added a mathematical Elliott Wave twist. Instead of counting the waves the indicator will merge where the waves are approximately finalised, thus indicating also a top or a bottom possibility. This is also going to be showing us a clear visual market condition.

3- Strength and divergence indicator window; this indicator window has three indicators merged in to one. The divergence will show you the "u" turns from the bottoms and tops and will give you a sign when there is a divergence. Divergence will enable you to get in to the trade on the pull backs and at double tops/bottoms.

The Strength indicator also in the same window is a great tool for such pull backs to enter with amazing precision. This indicator is great for those who have knowledge of support/resistance trading. The indicator will give you the exact level of entry and it is always more accurate than the price! This gets rid of most fake break outs! Price seemingly breaks a support or resistance but the strength behing the price does not on the support/resistance of the indicator! Keeps you safe!

The Divergence indicator will not only show you the bottoms and tops but will also give you a signaling direction when divergence occurs. Then all you have to do is enter in the pull backs given that the other indicators agree, we are trading with harmony of multiple variables here. Pull back trading keeps your stop losses tight and targets long. Great for Low risk high return ratios.

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The Trader's job: Wait for the indicators to align in the indicator windows and then; 1- see where the price reacted in the past on the blue price levels on the price chart and to enter the trade at those lines or 2- wait for a clear "u" turn signal in the lower time frame.

Below is the USDJPY bottom from 10 April 2014. Note the clear "u" turn signal in the yellow circle first comes on 11 April and then after the weekend on the Monday 14th.

Only the signals in the yellow circles are clear signals the others are not. We keep entering in the new direction until we reach targets or the indicators advise otherwise.

For those who have technical analysis knowledge the H1 template: If you are reasonably knowlegable about support resistance trading you will find the H1 template to be the jewel in the crown. You will not need to draw any support or resistance lines on the indicator that is done automatically however, you should have a sound understanding of support and resistance so you can give it some meaning.

This template will put you into the trade on the pull back without having to wait for a "u" turn. You can thus use tight stop losses between 20/30 pips when you enter at precise levels. The same logic applies on the H4 strength indicator. You will be able to enter trades on daily supports and resistance levels and follow the trade until the next resistance and support to take profit. Tight stops, less risk.

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The Strength indicator sometimes will show you the break out before price breaks out. In that case you can trade at a better price rather than waiting for the break out of the price. Once again tight stop losses and less risk is a huge advantage here.

If you use H4 and H1 strength indicator with technical knowledge you can really make precise entries even when the market is trading side ways . The indicator will show you the support and resistance of the strenght behind the price much more accurately than the price itself!

Money management: In the lower time frames top left corner there is a lot calculator with respect to your account balance. It is crucial to use proper money management.

If you use the right guidelines as per that indicator you will preserve your capital. Do not enter unnecessary risks.

If you do not have any technical analysis knowledge or feel you could add more to your foundations I seriously recommend it. The markets are risky and you will need a solid strategy and a good knowledge base to keep your trading disciplined and calm.

Should you have any queries please contact us.

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