VENOM - MQL5

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V E N O M Trad i n g Syste m: User M a n u a lVENOMUSER MANUALwww.thirdwavefx.comCopyright 2007 Third Wave FX. All Rights Reserved.ww w.third wa v ef x.co mPage 1

V E N O M Trad i n g Syste m: User M a n u a l Step 1Copy & paste ‘Third Wave FX Venom A.ex4’ & ‘Third Wave FX Venom B.ex4’indicator files into your MetaTrader indicators folder. By default, it is located atC:\Program Files\MetaTrader 4\experts\indicators.(Note: Third Wave FX Venom indicator is only compatible with MetaTrader 4trading platform). Step 2Close your MetaTrader application, assuming it is currently running. Ignore thisstep if the application hasn't been launched. Step 3Launch your MetaTrader application.ww w.third wa v ef x.co mPage 2

V E N O M Trad i n g Syste m: User M a n u a l Step 4Open any currency pair and select M1 timeframe. Let the M1 timeframe chartload completely. This step is only required during first time installation process.Please refer to Figure 1.Figure 1ww w.third wa v ef x.co mPage 3

V E N O M Trad i n g Syste m: User M a n u a l Step 5Open ‘Navigator’ window and double click ‘Custom Indicators’. Please refer toFigure 2.Figure 2ww w.third wa v ef x.co mPage 4

V E N O M Trad i n g Syste m: User M a n u a l Step 6Drag ‘Third Wave FX Venom A’ indicator onto the chart and click OK. Next, drag‘Third Wave FX Venom B’ indicator onto the chart and click OK. Please refer toFigure 3.Figure 3ww w.third wa v ef x.co mPage 5

V E N O M Trad i n g Syste m: User M a n u a l Step 7Change the colour scheme of your chart to match with the Venom IndicatorSystem. To do this, simply right click on the chart and select ‘Properties’. Underthe ‘Colors’ section, replace the default colours as instructed below:i)Background Blackii)Bar Down Rediii)Bull Candle Limeiv)Bear Candle RedClick OK to proceed. Please refer Figure 4.Figure 4ww w.third wa v ef x.co mPage 6

V E N O M Trad i n g Syste m: User M a n u a l Step 8Installation completed. You can now change back to your preferred timeframe.Your chart will look exactly as shown on Figure 5 below. Please repeat all thesteps given for other currency pairs.Figure 5ww w.third wa v ef x.co mPage 7

V E N O M Trad i n g Syste m: User M a n u a lFigure 6: Project X Venom Trading System Overview Trading opportunities presented by the system are based on the alignmentof Vectorial Bias, S/R Level 1 and S/R Level 2. Trading hours is from 5.00 GMT to 16.00 GMT. Please ensure that thesystem is running before 5.00 GMT so that no signals are missed andto prevent late entries. Remember, the first Buy or Sell signal (firstalignment of Vectorial Bias, S/R Level 1 and S/R Level 2) beginning5.00 GMT present high probability trades. For the first Buy or Sell signal (first alignment of Vectorial Bias, S/R Level1 and S/R Level 2), Venom Signal will display the price and time on thechart and Venom Alert will popup. The first alignment of the day alwaysprovides profitable trades.ww w.third wa v ef x.co mPage 8

V E N O M Trad i n g Syste m: User M a n u a l For the second alignment onwards, Venom Alert will continue to popup butVenom Signal does not change its display. Trading the second alignment onwards is only recommended forexperienced traders, for traders who have a feel for the system(know how to use the Venom Dashboard effectively) or for traderswho are using Venom Trading System as reference to othertechniques. Minimum take profit is 30 pips. Stop loss is 40 pips. Set trailing stop at 15pips. To take profit at higher levels, please refer to the section describing‘Positional Bias’. Do not risk more than 5% of equity per trade. Venom Trading System is suitable for all currency pairs but werecommend the following pairs: GBPJPYoGBPCHFoEURGBPoEURCHFVenom Signal & Venom Alertww w.third wa v ef x.co mPage 9

V E N O M Trad i n g Syste m: User M a n u a lFigure 7: Venom Signal & Venom AlertVenom Signal displays the first Buy or Sell signal between 5.00 GMT – 16.00GMT. The time displayed is the broker time. Venom Alert will popup wheneverVectorial Bias, S/R Level 1 and S/R Level 2 are aligned. The time displayed isyour local computer time. Venom DashboardFigure 8: Venom DashboardFigure 9: Strong Trend UpFigure 10: Strong Trend Downww w.third wa v ef x.co mPage 10

V E N O M Trad i n g Syste m: User M a n u a lFigure 11: Ranging / Sidewaysi) Vectorial BiasShows the market direction. When the Vectorial Bias of all six Venoms arealigned, the probability that the market moves in the particular direction ishigh (Figure 9 & 10). When the directions are mixed, the market isnormally indecisive (Figure 11).Market is heading upMarket is likely to head upMarket is sideways / ranging with upwards tendencyMarket is heading downMarket is likely to head downMarket is sideways / ranging with downwards tendencyii) S/R Level 1 & S/R Level 2Shows the support and resistance (S/R) levels of the market. Each Venomhas its unique S/R levels. The colour reflects the direction of VectorialBias. High probability buy / long trades exist when price is above itssupport level and significantly far from a resistance level. High probabilityww w.third wa v ef x.co mPage 11

V E N O M Trad i n g Syste m: User M a n u a lsell / short trades exist when price is below its resistance level andsignificantly far from a support level.Price is 16 pips above support, which was previously a resistance level.Price is 10 pips above support, which was previously a resistance level.Price is 82 pips below resistance, which was previously a support level.Price is 17 pips below resistance, which was previously a support level.Price is trapped in a range, 7 pips below resistance and 2 pips abovesupport.iii) Positional BiasPositional Bias shows the bias of the market based on the price position /location. It is monitored to decide whether to hold or to exit a trade when inprofit.Price is located in a strong bullish zonePrice is located in a bullish zoneww w.third wa v ef x.co mPage 12

V E N O M Trad i n g Syste m: User M a n u a lPrice is at an extreme point and is prone to retrace downwards.Price is located in a strong bearish zonePrice is located in a bearish zonePrice is at an extreme point and is prone to retrace upwards.When the Positional Bias of all Venoms show that price is in a strongbullish zone (Figure 9), price is expected to head higher. When thePositional Bias of all Venoms show that price is in a strong bearish zone(Figure 10), price is expected to drop lower. Venom ZoneShows the market trend. Also act as strong support or resistance levels.Major Trend ZoneWhen price is above the zone, major trend is up. When price is below the zone,major trend is down. This zone is a very strong support / resistance level.Medium Trend ZoneWhen price is above the zone, medium trend is up. When price is below thezone, medium trend is down.Mini Trend ZoneWhen price is above the zone, mini trend is up. When price is below the zone,mini trend is down.ww w.third wa v ef x.co mPage 13

V E N O M Trad i n g Syste m: User M a n u a lMini trend: DownMedium Trend: Range boundMajor Trend: UpMini trend: UpMedium Trend: UpMajor Trend: UpRange play between Mini Trend Zone and Medium Trend Zoneww w.third wa v ef x.co mPage 14

V E N O M Trad i n g Syste m: User M a n u a lRejection from the bottom of the Medium Trend Zoneww w.third wa v ef x.co mPage 15

Price is trapped in a range, 7 pips below resistance and 2 pips above support. iii)Positional Bias Positional Bias shows the bias of the market based on the price position / location. It is monitored to

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