First of all, it is a hybrid system. All this means is that unlike expert advisors that work by entering and closing trades based on specific rules or conditions, the Forex LST system has all the elements of an expert advisor, except that instead of entering a trade when conditions are met, it will show you an alert. You should then analyze the conditions of that alert based on the entry rules and decide whether to execute or not.
Those alerts are are triggered based on regular divergence, candle pattern formations and ATR price channel.
Let�s begin with the divergence indicator. A complex algorithm that determines only the extreme divergence, which is the �break� of harmony between the price candle trend and the MACD slope. It will show you the divergence by drawing a line above the candles involved and another one on the indicator, for the same period.
Then we have the candle pattern indicator. This will not show all the possible patterns on the chart. In all his years studying divergences, Vladimir has discovered that some candle patterns are better suited than others for trading divergences. In the Forex LST System, the prefered candle patterns are (in no particular order) engulfing, hammers and marobozus (for more information on candle patterns, you may download Vladimir�s free e-book �the Secret Meaning of Japanese Candlestick Patterns�, parts 1 and 2 here).
These patterns will filter out your entries, giving you the best chances of success. Once you have a divergence, it will look for a candle pattern for you. And once it has both conditions, it will alert you to the fact of a possible trade and display the nest indicator, the price channel.
The final indicator is a modified ATR channel indicator that will appear only when the candle pattern is present. This is the indicator you shall use with the HUMAN EYE FILTER, in conjunction with support and resistance areas, to determine that you have a good entry based on the rules. The rules expressly say to enter only if your take profit line is twice as far as your stop loss line is from the entry (1:2 ratio), which means that for every Dollar you risk, your take profit should be at least 2 Dollars.
These are three filters for the market, that when used properly, will keep your account healthy and growing.
But we want to make every effort possible not to be misleading. This is a great system that is profitable, but you will have occasional bad trades, and you need to be aware of this. How many? That depends on you and the market, but as long as you follow the rules, this system is so powerful that you could only make 40% of your trades correctly and still be profitable. Yes, that�s right. You can be profitable even if only 4 out of 10 trades are successful.
The Forex LST System has many additional features that will make your trading more adaptable to your style. You may drag horizontal lines onto your chart for determining stop loss and take profit points and once identified as such, you can simply drag them to new levels as you see fit.
It also has a money management feature to automatically calculate your lot size based on your percentage risk set in your preferences based on your stop loss line.
You will be able to select how precise you want the alert to be based on the rules by setting your level to �conservative�, �normal� or �aggressive� style. the more aggressive (the more trades you will be alerted of, but your success rate may suffer as well).
Take the Forex LST System for a test ride. You will not be disappointed. Click Here!