The Truth

About FOREX Trends

Market Flow Analysis Method

(MFAM)

The Core Price Structure and Rhythm of ALL Markets!

To Successfully Trade the FOREX Markets
You need to understand the Underlying Movements and Rhythm of the Markets!
The following Principles form the Cornerstone of a Consistent and Successful
Trading Methodology. There is only one major Market Cycle (or movement) in
existence. The FOREX Market can do nothing else but comply with this one basic
Market Cycle, we call it

The Market Flow Analysis Method (Pure PRICE ACTION)

There is no other Movement or Motion possible in the FOREX Markets.

The FOREX Markets do NOT move in a Random fashion.

The FOREX Markets ALWAYS move within the framework of an Underlying
Market Wave. Otherwise, known as a TREND, whether it be Up, Down, or
Sideways.

Market Flow Analysis Method

(MFAM)

Three Primary Waves (TRENDS) in the FOREX Markets!

There are only Three (3) Primary Waves (TRENDS) in the FOREX Markets:
1) UP Trend A Series of Higher Highs and Higher Lows
2) DOWN Trend A Series of Lower Highs and Lower Lows
3) SIDEWAYS Trend A Series of relatively Equal Highs and Equal Lows

Identifying which Wave or TREND the FOREX Market is in is vital to Successful

Trading.
The Market Flow Analysis Method (MFAM) is based upon:
the Upside Penetration of market HIGHS, and
the Downside Penetration of market LOWS.
New Highs and New Lows are continuously being formed in the Markets. Therefore, Traders
must identify these important levels to help in mapping out what the Markets are most likely
going to do next.
This will help you in identifying if a market is TRENDING UP, TRENDING DOWN, or
TRENDING SIDEWAYS, at the Early Stages of the Trend and not after the fact.

Market Flow Analysis Method

(MFAM)

The UP Trend Market Flow Process

A series of New Highs (NHs) and Active Lows (ALs)
NH
NH
NH

MRAL

HIGH
AL
AL
AL
(Active Low)

LOW
(Lowest LOW)

(Most Recent Active Low)

Market Flow Analysis Method

(MFAM)

The DOWN Trend Market Flow Process

A series of New Lows (NLs) and Active Highs (AHs)
HIGH
AH
AH

AH

(Most Recent Active High)

LOW

MRAH
NL

NL
NL

Market Flow Analysis Method

(MFAM)

The SIDEWAYS Market

A series of relatively Equal Highs and Equal Lows

HIGH

LOW

Market Flow Analysis Method

(MFAM)

An UP Trend Reversing Into A DOWN Trend

Downside Penetration of the Most Recent Active Low (MRAL) in the MFAM

HH

AH

NH
NH
MRAL
(Most Recent Active Low)

NL

AL
AL
The UP Trend is potentially Reversing into a
DOWN Trend at the Downside Penetration of the MRAL

Simply being able to identify critical Lows in an UPTREND will enable you to stay
in a Trend longer and you will know with High Probability at what levels the Market
is most likely going to change directions.

Market Flow Analysis Method

(MFAM)

A DOWN Trend Reversing Into An UP Trend

Upside Penetration of the Most Recent Active High (MRAH) in the MFAM
The DOWN Trend is potentially Reversing into an UP
Trend at the Upside Penetration of the MRAH

AH
AH

NH

(Most Recent Active High)

MRAH

NL
NL
LL

AL

Simply being able to identify critical Highs in a DOWNTREND will enable you to
stay in a Trend longer and you will know with High Probability at what levels the
Market is most likely going to change directions.

AUD JPY EUR CHF GBP CAD USD

What are the BEST Times of the Day to Trade FOREX?

The Best Time to Trade FOREX is:

When Two Markets are Open at the Same Time, and

When the FOREX Market is Experiencing Higher Volatility and Volume

For example,
Sydney (Australia) and Tokyo (Asian Markets) overlap between 7:00PM and 2:00AM
EST
Tokyo (Asian Markets) and London (European Markets) overlap between 3:00AM
and 4:00AM EST
London (European Markets) and New York (North American Markets) overlap
between 8:00AM and 12:00PM EST