High-Probability Techniques for Trading without Indicators n a k e d f o r e x FREE Trading Software and Video Tutorial Included alex nekritin walter peters , phd Foreword by Abe Cofnas P1:OTA/XYZ P2:ABC JWBT642-fm JWBT642-Nekritin January11,2012 21:10 Printer:CourierWestford i P1:OTA/XYZ P2:ABC JWBT642-fm JWBT642-Nekritin January11,2012 21:10 Printer:CourierWestford Naked Forex i P1:OTA/XYZ P2:ABC JWBT642-fm JWBT642-Nekritin January11,2012 21:10 Printer:CourierWestford Foundedin1807,JohnWiley&Sonsistheoldestindependentpublishing companyintheUnitedStates.WithofficesinNorthAmerica,Europe,Aus- tralia and Asia, Wiley is globally committed to developing and marketing printandelectronicproductsandservicesforourcustomers’professional andpersonalknowledgeandunderstanding. TheWileyTradingseriesfeaturesbooksbytraderswhohavesurvived the market’s ever changing temperament and have prospered—some by reinventing systems, others by getting back to basics. Whether a novice trader, professional or somewhere in-between, these books will provide theadviceandstrategiesneededtoprospertodayandwellintothefuture. For a list of available titles, please visit our Web site at www .WileyFinance.com. ii P1:OTA/XYZ P2:ABC JWBT642-fm JWBT642-Nekritin January11,2012 21:10 Printer:CourierWestford Naked Forex High-Probability Techniques for Trading without Indicators ALEX NEKRITIN WALTER PETERS, PhD JohnWiley&Sons,Inc. iii P1: OTA/XYZ P2: ABC JWBT642-fm JWBT642-Nekritin January 11, 2012 21:10 Printer: Courier Westford Copyright (cid:2)C 2012 by Alex Nekritin and Walter Peters. All rights reserved. Published by John Wiley & Sons, Inc., Hoboken, New Jersey. Published simultaneously in Canada. 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For general information on our other products and services or for technical support, please contact our Customer Care Department within the United States at (800) 762-2974, outside the United States at (317) 572-3993 or fax (317) 572-4002. Wiley also publishes its books in a variety of electronic formats. Some content that appears in printmaynotbeavailableinelectronicbooks.FormoreinformationaboutWileyproducts, visit our web site at www.wiley.com. LibraryofCongressCataloging-in-PublicationData: Nekritin,Alex,1980- NakedForex:high-probabilitytechniquesfortradingwithoutindicators/AlexNekritin, WalterPeters. p.cm.–(Wileytrading;534) Includesindex. ISBN978-1-118-11401-8(cloth);ISBN978-1-118-22435-9(ebk); ISBN978-1-118-26244-3(ebk);ISBN978-1-118-23749-6(ebk) 1.Foreignexchangemarket. 2.Foreignexchangefutures. 3.Speculation. I.Peters,Walter,1973- II.Title. HG3821.N452012 332.4(cid:3)5–dc23 2011043306 PrintedintheUnitedStatesofAmerica 10 9 8 7 6 5 4 3 2 1 iv P1:OTA/XYZ P2:ABC JWBT642-fm JWBT642-Nekritin January11,2012 21:10 Printer:CourierWestford For all gun traders as well as those rude and cute possums of the world. v P1:OTA/XYZ P2:ABC JWBT642-fm JWBT642-Nekritin January11,2012 21:10 Printer:CourierWestford vi P1:OTA/XYZ P2:ABC JWBT642-fm JWBT642-Nekritin January11,2012 21:10 Printer:CourierWestford Contents Foreword ix Preface xi Acknowledgments xiii PART ONE Naked Forex Trading Revealed CHAPTER 1 The Fundamentals of Forex Trading 3 CHAPTER 2 Avoiding a Trading Tragedy 9 CHAPTER 3 Back-Testing Your System 25 CHAPTER 4 Identifying Support and Resistance Zones 39 PART TWO Naked-Trading Methodology CHAPTER 5 The Last Kiss 73 CHAPTER 6 The Big Shadow 95 CHAPTER 7 Wammies and Moolahs 111 CHAPTER 8 Kangaroo Tails 131 CHAPTER 9 The Big Belt 151 vii P1:OTA/XYZ P2:ABC JWBT642-fm JWBT642-Nekritin January11,2012 21:10 Printer:CourierWestford viii CONTENTS CHAPTER 10 The Trendy Kangaroo 163 CHAPTER 11 Exiting the Trade 177 PART THREE Trading Psychology CHAPTER 12 The Forex Cycle 203 CHAPTER 13 Creating Your Trading System 209 CHAPTER 14 Becoming an Expert 229 CHAPTER 15 Gaining Confidence 239 CHAPTER 16 Managing Risk 249 About the Trading Software and Video Tutorial 261 About the Authors 263 Index 265