MECHANICAL CASH BUILDER -  The Mechanical Cash Builder Right Away

MECHANICAL CASH BUILDER - The Mechanical Cash Builder Right Away


MECHANICAL CASH BUILDER


Instantly download your copy of The Mechanical Cash Builder right away...

This is a professional grade trading system that takes full advantage of a secret hedge fund technique that is not only easy to use, but it could also put hundreds if not thousands of dollars in your pocket.

This is a gift to my community!

This is completely different from anything you’ve seen before and is yours today for absolutely ZERO cost. This has been responsible for many trading beginners finally making the breakthrough you’ve been looking for!

You will be supplied with everything you need – for zero cost – to start making hundreds of dollars today, including:


  • The Secret Report containing the full system rules, the secret code, and the instant cash-making strategies.

  • The custom indicators that take advantage of this secret hedge fund technique, finely tuned to where the easy money is waiting.

  • Plus you can watch my video on this page that shows you how to use this information to line your pockets with a ton of easy money.

  • This system is a wealth-generating machine that could practically print money for you... Day after day… Year after year. No need to buy anything or give your credit card.


INTRODUCTION



Welcome! You’re about to learn how to trade a system that has served me quite well for a very long time. I have every confidence that it will perform just as well for you if not better than it has for me.

When I was new to trading, I knew I was lucky to know about trading Forex because there are many people out there who still know nothing about it. I’m sure you can relate when I say Forex was a nightmare for me in the beginning, simply because I did not have a proper system or method to trade. I have blown many accounts and lost a lot of my money.

But because of that, I have learned a lot of good lessons. I now understand that in Forex there is no short cut. Every trader will experience the same things in trading the markets. We all need to learn how to trade properly in order to be successful.

The Mechanical Cash Builder trading system is quick to learn and easy to implement. If you are new to trading, this system is one of the best systems to start with because I use two simple indicators and a technique called divergence trading. I will show you how in great detail further in this report.

The currency pairs I usually trade are the EURUSD and GBPUSD, and if I don’t find a signal on these pairs, I will trade other currency pairs with low spreads or sometimes trade Gold instead.

I trade the most active currency pairs during any market session and the timeframes I normally use are the 15 minutes and 30 minutes. Sometimes I will trade on the 5 minute timeframe with adjusted targets when there is no signal on the higher timeframes.

In the following chapters you will learn more about my Mechanical Cash Builder trading system and learn exactly how I trade along with many examples and illustrations. It is my sincere hope that with this simple manual, I can help you improve the way you trade Forex.



COMPONENTS OF THE SYSTEM


Indicators

As I mentioned, I only use two indicators, which are the Exponential Moving Average (EMA) and Awesome Oscillator (AO).


Exponential Moving Average or EMA


Moving averages are computed averages of a specified number of candles to help smooth out price movement to show the current trend. It can also help predict support and resistance levels. The simplest moving average is the Simple Moving Average (SMA), which is the sum of the prices divided by the number of candles. All the prices are equal in weight for the SMA.

The type of moving average I use is the Exponential Moving Average (EMA). The main feature of this type of moving average is that it computes the weighted average of a set number of candles. It considers recent prices more important than the previous prices, so recent prices have greater weight. In other words, the EMA is more reactive to recent price movements.

I get a signal from the EMA if the price breaks above or below the line.
Exponential Moving Average or EMA  

Awesome Oscillator


The Awesome Oscillator (AO) was developed by Bill Williams to show current market momentum and in form of a histogram, where each bar that is higher than the preceding bar is green while each bar that is lower than the previous bar is red.
Awesome Oscillator

It is basically the 34 SMA of the central points of the candles minus the 5 SMA of the central points of the candles.

The AO can be used in many ways as you can see below. They are well worth mentioning, but the only function used in this system is Divergence, which will be discussed in detail in the next page.


  1. Zero line crossovers Buy signal - histogram below the zero line crosses above the zero line. Sell signal - histogram above the zero line crosses below the zero line.

  2. Saucer Buy signal - oscillator is above the zero line and two descending red bars are followed by a green bar. Sell signal - oscillator is below the zero line and two ascending green bars are followed by a red bar.

  3. Twin Peaks Buy signal - histogram is below the zero line, it makes two troughs where the last low is higher than the previous low, and is followed by a green bar. Sell signal - histogram is above the zero line, it makes two peaks where the last high is lower than the previous high, and is followed by a red bar.

  4. Divergence Buy signal - histogram and price makes a bullish divergence signal. Sell signal - histogram and price makes a bullish divergence signal.



Divergence


Divergence occurs when the price moves in one direction while the indicator moves in the opposite direction, which indicates that the trend will change. In my system, I only use regular divergences.


Regular Bullish Divergence


A bullish divergence occurs when the price makes lower lows but the oscillator is making higher lows.
Regular Bullish Divergence
As you can see, Line A-B is drawn to connect a higher low and a lower low on the price going downwards, while line 1-2 connects a lower low and a higher low on the Awesome Oscillator going upwards. The price went up after the divergence occurred.

Bullish divergence indicates that momentum of the price movement in the downward direction is weakening and that the price may reverse soon. You must only enter when the reversal is confirmed.

Remember that the lines to identify a bullish divergence are drawn below both price and trendline, and the direction of the line on the indicator is going up even if the price is going down. Also, note that the price is making a lower low while the AO is making a higher low.


Regular Bearish Divergence

Regular Bearish Divergence

A bearish divergence occurs when the price makes higher highs but the oscillator is making lower highs. As you can see, line A-B is drawn to connect a lower high and a higher high on the price going upwards, while line 1-2 connects a higher high and a lower high on the Awesome Oscillator. The price went down as expected.

Bearish divergence means that the momentum of the price movement in the upward direction is weakening and that the price may reverse soon. You must only enter when the reversal is confirmed.

Support & Resistance


For my system, support and resistance levels are very important. Stop loss and take profit levels are based on such levels.

Generally speaking, support is the lowest maximum level that the price can reach. This is the level that price is unable to break any lower. The price stopped going down because the sellers are no longer willing to sell because it has become undervalued

On the other hand, resistance is the maximum high level that price can reach. Price is unable to increase anymore because the buyers are no longer willing to buy. They think that the value is overvalued.

There are major and minor types of Support levels. Major support and resistance levels are what we call bottoms and tops. They are the extreme lows and highs of the price. Minor support and resistance levels are levels within the range of the major levels that price was not able to exceed.
Support & Resistance
 

Take note that support (S) and resistance (R) can reverse roles. A previous support level can become a resistance level, as you can see in the image above.

Also, support & resistance are not areas because the price can be affected by many factors, it does not necessarily to touch an exact price level. Having this in consideration, I set my stop loss a few pips below support (buy trades) or a few pips above resistance (sell trades) levels.



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BUY/LONG TRADE RULES


The rules of my system are easy to follow. All you have to do is look for divergence, enter a trade at the break of the EMA, and set the take profit and stop loss levels.
  1. Identify Regular Bullish Divergence by drawing a line connecting the lows of the price, and another line connecting the lows of the Awesome Oscillator (AO). On the price, connect the higher low (Point A) to the lower low (Point B). On the AO, connect the lower low (Point 1) to the higher low (Point 2).

  2. Although not required to be present to enter a trade, look for confirmatory signals:
    a. Double Bottom
    b. Triple Bottom
    c. Inverted Head & Shoulders
    d. Bullish Pin Bar at Point B

  3. Enter a buy trade when the price breaks above the 10 EMA and the AO turns green. Most of the time, I don’t wait for the candle to close, as long as the signals are valid and the price stays above the 10 EMA.

  4. Set the stop loss level a few pips below the lower low on price, which is below Point B. If no stop loss was set, cut any loss manually if the price breaks below Point B level.

  5. Set the take profit at the previous resistance (R) Level, or a little lower for safety.

Exceptions To The Rules


Even if there’s no divergence signal, if there is a double bottom, triple bottom, or an inverted head and shoulders pattern, enter a buy trade when price breaks above the 10 EMA.

Don’t trade during high impact news release.

BUY/LONG TRADE EXAMPLES


Buy/Long Example 1

BUY/LONG TRADE EXAMPLES

The price was making a lower low while the AO was making a higher low. This is a Regular Bullish Divergence, an early signal indicating that the price may retrace or reverse soon.

The AO has already turned green, so when the price broke above the 10 EMA, I entered a buy trade (1.35890) and set the stop loss level below point B (1.35600).

For me, the target is flexible; I will either set a fixed take profit or exit trade when price reaches the previous support/resistance level.

In this example, point R is the minor resistance level. A safe target number of pips must be smaller than the price range from the entry level to point R. I exited this trade at 1.36100 with about 21 pips of profit.


SELL/SHORT TRADE RULES


Sell trades are entered in the exact opposite way as buy trades.

  1. Identify Regular Bearish Divergence by drawing a line connecting the highs of the price, and another line connecting the highs of the Awesome Oscillator (AO). On the price, connect the lower high (Point A) to the higher high (Point B). On the AO, connect the higher high (Point 1) to the lower high (Point 2).

  2. Although not required to be present to enter a trade, look for confirmatory signals:
    a. Double Top
    b. Triple Top
    c. Head & Shoulders
    d. Bearish Pin Bar at Point B

  3. Enter a sell trade when the price breaks below the 10 Exponential Moving Average (10 EMA) and the AO turns red. Most of the time, I don’t wait for the candle to close, as long as the signals are valid and the price stays below the 10 EMA.

  4. Set the stop loss level a few pips above the higher high on price, which is above Point B. If no stop loss was set, cut any loss manually if the price breaks above Point B .

  5. Set the take profit at the previous support (S) Level, or a little higher than the support level for safety.


Exceptions To The Rules


Even if there’s no divergence signal, if I see a double top, triple top, or head and shoulders pattern, I will enter a sell trade when price breaks below the 10 EMA.

Don’t enter a trade if high impact news is due to be released.

SELL/SHORT TRADE EXAMPLES


Sell/Short Example 1

SELL/SHORT TRADE EXAMPLES
On the EURUSD 5 Minute chart, the price made a higher high while the AO made a lower high. This is a Regular Bearish Divergence and indicates that the price may retrace or reverse soon.

The AO turned red, so when the price broke below the 10 EMA, I entered a sell trade (1.38033) and set the stop loss level a few pips above point B (1.38292).

Point S indicates a previous support level. A safe target number of pips must be smaller than the price range from the entry-level to point S, so I exited this trade at 1.37789 with about 24 pips of profit.


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CONCLUSION


By now you should have become more familiar with my Mechanical Cash Builder trading system. If you are completely new to trading the next step would be to open a demo account and test it for yourself to get a feel of how the system works. Go back to the history of your charts and have a look at previous signals. Practice identifying divergences.

If you feel you are used to identifying divergences, you can move a step further and practice looking for price patterns that can help you in making better trading decisions. Look for double tops/bottoms, head and shoulders patterns and pin bars.

Always trade the system according to the rules so that you will see actual unbiased results. Because the system is so simple to trade, it won’t be long before you will master trading with it. When you have gained consistent profits on Demo, that’s the only time you can start trading on a Live account to get a feel of live trading. Start small and work your way up. Patience is very important.

I do not believe there’s a secret of trading. But I believe if you learn as much as you can and trust yourself. Nothing is impossible. Self-discipline, a well-planned money management strategy and never giving up are important to be successful.

I hope my Mechanical Cash Builder system will help you achieve your goals in trading. And I hope you will enjoy trading it as much as I have enjoyed putting this system together.

Good luck!