The Nostradamus Forex Trading Method

The Nostradamus Forex Trading Method

A Forex trader knows the highly volatile nature of currency trading can bring great rewards but also it can result in substantial losses. Therefore the traders seek a ‘Good’ and ‘Fool Proof’ money management system or tool for achieving stronger gains and mitigating unwanted losses.

Like the famous French publisher of prophecies Nostradamus, The Nostradamus Trading Indicator claims to have the ‘mythical power’ to predict the future trend of the Forex market. It is a Compass, which shows the directional force of the market.

The data is updated constantly on a second by second basis. It is designed to indicate signals when markets are trending -- reversing from a previous trend, or going range bound. So it can warn you when you should reverse out of a position at the end of a trend, and when you can expect target highs and lows to act as a good range.

Nostradamus - Constantly Updating Forex Trends

The working principle is based on software that is capable of testing millions of combinations of indicators and optimized parameters before predicting the near future market movements.

Nostradamus gives neural network based predictions of the high and low of the chosen market for the next two and 8 hours. The Compass indicator gives you the direction and strength of any market move based on which you can form an ideal intraday trading strategy.

The Nostradamus method presents a framework for the intraday trader on basis of which the trader can form the opinion to enter, maintain, and exit positions for maximum profits. The trader may perceive the market trends in their own way and can use Nostradamus to strengthen their confidence, and help in suggesting the timing of any position they choose to take.

Nostradamus uses the bid side of the last updated market price of the instrument, to calculate charts, actual highs and lows. The Compass indicator provides a 5 minute chart.

The Nostradamus Compass - Easy But Effective

If you open the system, you can find values for the time of the last update marked in Cyan at the top of the chart. The Compass shows the current bar, and a current value based on the Open, High, Low and Last price of the instrument. You may also view additional Compass dial windows for different currency pairs by clicking on the blue link. All times on the system are always London times.

The Compass dial has three main zones, Long Position in green, Rangebound that is blue, and Short Position in red, separated by two smaller regions called Reversal/Signal, which are purple. In the middle of the pointer is a number, which is the latest calculated value of the Compass indicator.

Compass is always a number between 0 and 100, and as the value of Compass changes, the pointer moves and points at the various zones, telling the trader what the market is doing, and what position one should have in the market.

The yellow line on the chart is the historical plot of the Compass indicator, with a scale between 0 and 100 on the left axis. Two relevant levels on the chart are marked corresponding to the red and green position areas on the Compass dial. They are the 80 level in red, and the 20 level in green.

Use Nostradamus to Mazimize Your Forex Profits

On the top corner of each graph - you can find a button for Alert Settings. You can monitor four fields individually by sound, by a pop up window or both. The Level to check fields contain default values which prevent any limits being triggered. For example you can be warned by a pop up window once when the Compass reaches 20 by setting the Compass high to 19.

The Compass reading updates on a regular basis, and must be watched constantly to get a true feeling for its signals. With all updates taking place in the market the track record of the system automatically updates the results from the previous period. It compares the actual high and actual low reached in the market with the prediction, and show the error rate in pips.

According to the veteran traders of Forex market, the Nostradamus method is one of the best indicators to predict the near term future, based on a detailed examination of their performance in the past.

For details on using the Nostradamus method for Forex trading including your opportunity to recieve a free 14 day trial please visit Nostradamus System Limited by clicking here.

On the next page we will look at the ancient analysis method of candlesticks. Click the 'next' button below to learn how candlestick charting can help you trade more efficiently than ever before.