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The RDS Forex System: A Breakthrough Method To Profiting from Market Turning Points

Book Description

Inside a unique system that allows you to identify and trade key turning points in the forex market

The financial markets are in a constant state of affirming, breaking, and developing new support and resistance areas. Traders use a variety of methods to project support and resistance points based on past price action. However, the question of whether those areas will hold or break in real time is a much more difficult calculation. In The RDS Forex System, former pit trader Michael Radkay provides forex traders with a unique system for identifying support and resistance zones in the foreign currency market and developing profitable trading strategies around those zones.

The system uses market volatility, momentum, and chart patterns to calculate support and resistance zones. As prices reach a specific zone objective, trading strategies are put in place to profit from the next movement. The book will show how this system gives traders a continuous sense of the market's directional bias, identifies potential turning points, and recommends levels to take profits off the table.

  • Highlights the Rotating Directional System (RDS), a computer-based, longer-term application of the methodology used by many successful pit traders

  • Discusses how to use a variety of indicators to identify support and resistance areas

  • Reveals strategies employed to profit from market swings

The RDS Forex System is an ideal guide for retail traders actively involved in the forex market.

Table of Contents

  1. Cover Page
  2. Title Page
  3. Copyright
  4. Dedication
  5. Contents
  6. Preface
  7. Acknowledgments
  8. Chapter 1: Introduction to Today's Forex Market
    1. A NEW PLAYING FIELD
    2. ARE YOU READY FOR IT?
    3. SURVIVING THE “-INGS” IN TRADING
    4. THREE REASONS FOR FAILURE AND A SIMPLE SOLUTION
  9. Chapter 2: Comparing Forex to Other Markets
    1. CURRENCY FUTURES
    2. FOREX HAS “CARRY INTEREST”
    3. UNDERSTANDING LEVERAGE
  10. Chapter 3: Finding the New Edge
    1. PRACTICE PATIENCE WITH CONTROLLED RAGE
    2. FOLLOW THE MONEY
    3. LEARN TO TRADE MORE THAN ONE MARKET
    4. DON'T FORCE TRADES
    5. KNOW YOUR COMPUTER COMPETITION
    6. HIGH-FREQUENCY TRADING
    7. OUR FIRST OBSTACLE WITH FOREX
    8. GROW RESPONSIBLY WITH FOREX
    9. BECOME AN INDEPENDENT THINKER AND DECISION MAKER
  11. Chapter 4: The Long and Short of Fundamental Analysis
    1. PUT YOUR MONEY WHERE YOUR MOUTH IS
    2. KNOW YOUR ECONOMIC CALENDAR
    3. DECISION FALL-OUT
  12. Chapter 5: Price Never Lies
    1. PARITY: TRADE WITH THE WINNERS
    2. TUNING IN TO YOUR CIRCLE OF INFLUENCE
    3. ASKING THE RIGHT QUESTIONS
    4. WHERE DOES THE BIG DOG EAT DAY TO DAY?
    5. WHERE DOES THE BIG DOG EAT THE MOST?
    6. WHAT TIME DOES THE BIG DOG EAT?
  13. Chapter 6: Play at Peak Times
    1. TEST YOUR PERSONAL TIME TOLERANCE
    2. MAP YOUR TOLERANCE TO THE MARKET
    3. YOU DON'T NEED AN ECONOMICS DEGREE
    4. FEAR AND GREED HAVE NO BOUNDARIES
    5. ACT NOW AND ASK WHY LATER
    6. SURPRISE FUNDAMENTAL OR GEO-POLITICAL EVENTS
    7. 9/11
    8. GEORGE W. BUSH'S SECOND TERM IN OFFICE
    9. READING THE NEWS
    10. FEAR OF MISSING A MOVE
  14. Chapter 7: Preparing for Known Events
    1. FED FUNDS
    2. THE PURPOSE OF THE IMF AND THE FED FUNDS TARGET RATE
    3. PREPPING FOR EMPLOYMENT REPORTS AND THE FOMC
    4. PREDICTING PRICE RANGE
  15. Chapter 8: Risk Tolerance and Developing a Feel for Price Movement
    1. THE TRADING FOOTBALL FIELD
    2. THE LIGHT BULB WENT OFF IN 1992
    3. YARDS VERSUS LEVELS
    4. TWO TYPES OF TRADERS
    5. RISK
    6. THE OLD DAYS
    7. TODAY
    8. PERSONAL RISK TOLERANCE
    9. INTRODUCING THE RDS RISK CALCULATOR
    10. USING THE RDS RISK CALCULATOR
    11. THE WAY MIKE LEARNED FUTURES
    12. NO VACATION FROM DISCIPLINE
    13. FIVE KEYS TO SUCCESS
    14. WRAPPING IT UP
  16. Chapter 9: Why Technical Analysis Works
    1. WHY FIVE RULES?
    2. INTRODUCING THE RULES
    3. CHART BASICS
    4. CHART PATTERNS
    5. TIMEFRAME
    6. FIRST-HOUR MAGIC
  17. Chapter 10: Defining the Rotating Directional System
    1. RULE 1: THE HOMEWORK RULE
    2. RULE 2: THE NEUTRAL RULE
    3. RULE 3: DISTANCE RUN; TWO-LEVEL ROTATIONS WITH A FOUR-LEVEL RANGE OBJECTIVE
    4. RULE 4: WINDOW OF OPPORTUNITY, TIME TO EXECUTE
    5. RULE 5: RELATIVE STRENGTH INDEX: THE SECOND OPINION
  18. Chapter 11: Putting It All Together
    1. MOMENTUM SIDE TIMING
    2. MARKET PROFILE—RANGE BOUND OR TRENDING
    3. TEAMMATES AND OPPONENTS
    4. A THREE-STEP PROCESS: ENTRY, PROFIT, AND STOP LOSS
    5. LEVELS REVEAL THE ANGRY TELL
    6. BUY/SELL LOCATION AND TEAMMATE MOOD
    7. ONE GRENADE WILL GET YOU ALL
    8. WHAT SIDE SHOULD I TRUST? BREAKOUTS VERSUS COUNTER
    9. TRADING THROUGH A BREAK OR WHILE YOU SLEEP
    10. FIVE-SPEED TRANSMISSIONS
    11. PRE-SESSION PREPARATION
    12. ADJUSTING THE HOMEWORK RULE
    13. WEATHERING ONE STORM
    14. PRICE EVALUATION: SLOPE OF STAND-OUT TOPS/BOTTOMS
  19. Chapter 12: Evaluating Your Performance
    1. TWO INVESTOR PERSONALITIES
    2. FOLLOWING THE PLAN
    3. CHALLENGING THE PLAN
    4. STEPH'S STORY
    5. FIND YOUR GIFTS
    6. FOUR LEVELS OF CARE
    7. LOOKING AT THE BIG PICTURE
    8. CONCLUSION: STAYING POWER
  20. Resources
    1. BOOKS
    2. FILM
    3. WEB SITES
  21. About the Authors
  22. Index