Successful FX
Strategies for Any
Market Condition
Presented by Toni Hansen
http://www.TradingFromMainStreet.com
toni@tonihansen.com
For the sake of simplicity, the examples that follow do not take
into consideration commissions and other transaction fees, tax
considerations, or margin requirements, which are factors that
may significantly affect the economic consequences of a given
strategy. An investor should review transaction costs, margin
requirements and tax considerations with a broker and tax
advisor before entering into any options strategy.
Options involve risk and are not suitable for everyone. Prior to
buying or selling an option, a person must receive a copy of
CHARACTERISTICS AND RISKS OF STANDARDIZED
OPTIONS. Copies have been provided for you today and may
be obtained from your broker, one of the exchanges or The
Options Clearing Corporation. A prospectus, which discusses
the role of The Options Clearing Corporation, is also available,
without charge, upon request at 1-888-OPTIONS or
www.888options.com.
Any strategies discussed, including examples using actual
securities price data, are strictly for illustrative and educational
purposes and are not to be construed as an endorsement,
recommendation or solicitation to buy or sell securities.
Disclaimer and Terms of Use:
Copyright 2008 © Toni Hansen & The Bastiat Group, Inc. All rights reserved. Terms of use apply.
Reproduction, adaptation, distribution, public display, exhibition for profit, or storage in any electronic
storage media in whole or in part is prohibited under penalty of law.
Disclaimer: The Bastiat Group, Inc., the holding company for ToniHansen.com, Swingtrader.net and
TradingFromMainStreet.com does not make solicitations, recommendations or offers to buy or sell any
security or investment. The Bastiat Group, Inc. does not advocate the purchase or sale of any security
or investment. The information provided by The Bastiat Group, Inc. should not be construed as
investment, financial, tax or legal advice. The Bastiat Group, Inc. is not a registered investment
advisor, commodity trading advisor, broker or broker dealer. Trading in securities may not be suitable
for all individuals. The Bastiat Group, Inc. and its members, employees, agents, consultants, analysts,
representatives, content and/or service providers, affiliates, subsidiaries, successors and assigns
(hereinafter collectively, “The Bastiat Indemnities") assume no responsibility or liability for your trading
and investment results. Prior to the execution of any securities trade, you should always consult with
your broker or other financial advisor. There is a very high degree of risk involved in trading securities.
Past results are not indicative of future returns.
About ISE FX Options
•
•
•
•
•
Accessible through your options broker
Exchange-listed securities
Cash-settled in U.S. dollars
European style exercise
Can be traded as spreads
Currency
Convention
Symbol
Australian dollar
USD/AUD
AUX
British pound
USD/GBP
BPX
Canadian dollar
USD/CAD
CDD
Euro
USD/EUR
EUI
Swiss franc
USD/CHF
SFC
Japanese yen
USD/JPY
YUK
www.ise.com/fx
Investors can view the underlying rates from several leading market data vendors and financial
websites, including Big Charts, Bloomberg, ILX, Reuters, and Yahoo! Finance.
Time Frame Analysis
In order to succeed in any market arena,
you must have a firm understanding of how
the time frame upon which you are focusing
your efforts plays a role in determining your
success in any position.
Toni’s Building Blocks
 Support/Resistance Levels
 Pace (aka Momentum)
 Trend Development
Support & Resistance
Support & Resistance levels are price
zones in the market where a security is
liable to react in some manner that affects
the trend which is in play as the support or
resistance level hits.
Support & Resistance
Support & Resistance levels must be
thought of as zones and not exact price
levels.
Support & Resistance
Two Main Types of Support &
Resistance used in technical analysis:
 Prior zones of congestion
 Prior highs or lows
Congestion S/R
Chart © 2008 Finance Chart
Price S/R
Chart © 2008 Finance Chart
Price S/R
Chart © 2008 IntelliChart
Pace / Momentum
Pace is a measurement of the momentum
of a trend move in a security as compared
to not only the average move, but also the
most recent move on a given time frame.
Measuring Pace
Pace / Momentum
Slower than average moves will often
lead to continuations of the prior trend (A-B
in pace chart).
Gradual Momentum
Chart © 2008 IntelliChart
Pace / Momentum
Stronger than average moves will tend to
correct more slowly, by either basing or
pulling back gradually (B-C in pace chart).
They can also correct by rounding off at
highs or lows in order to shift the
momentum.
Strong Momentum
Chart © 2008 IntelliChart
Pace / Momentum
Comparable moves back and forth will
usually create trading ranges until the
momentum within the range shifts once
again (E-J in pace chart).
Range & Momo Shift
Chart © 2008 IntelliChart
The Nature of Trends
Trends are the primary direction of price
movement at any given time. They are
repetitive, but the placement of a pattern in
the context of the larger trend is key to
identifying target levels or to assess if the
setup is even viable in the first place.
Trend Development
Most trend
develop with
two or three
waves of
buying or
selling before a
larger
correction of
that trend takes
place.
Trend Development
Chart © 2008 Finance Chart
Trend Development
Chart © 2008 IntelliChart
Trend Development
Chart © 2008 IntelliChart
Buy ??? USD/CAD
Chart © 2008 IntelliChart
Buy Formation USD/CAD
Chart © 2008 IntelliChart
Trend Comparison
Chart © 2008 IntelliChart
Trend Comparison
Chart © 2008 IntelliChart
Buy Formation USD/CAD
Chart © 2008 Finance Chart
Buy Formation USD/CAD
Chart © 2008 IntelliChart
Trading Made Simple Series
Toni’s CD bundle:
 5 Technical Signals You
Cannot Trade Without (7
hours on 4 CDs, 238 page pdf)
http://www.swingtrader.net
Toni’s interactive video courses
and manuscripts detailing her
trading and investment strategies
All three products:
$279* (*plus shipping. $497 when
sold separately.)
 Trading Made Simple: No
Indicators Necessary (3
hours on 2 CDs, 100 page pdf)
 Toni’s Guide to Successful
Market Timing (76 pdf
manual)
http://www.swingtrader.net
About ISE FX Options
•
•
•
•
•
Accessible through your options broker
Exchange-listed securities
Cash-settled in U.S. dollars
European style exercise
Can be traded as spreads
Currency
Convention
Symbol
Australian dollar
USD/AUD
AUX
British pound
USD/GBP
BPX
Canadian dollar
USD/CAD
CDD
Euro
USD/EUR
EUI
Swiss franc
USD/CHF
SFC
Japanese yen
USD/JPY
YUK
www.ise.com/fx
Investors can view the underlying rates from several leading market data vendors and financial
websites, including Big Charts, Bloomberg, ILX, Reuters, and Yahoo! Finance.
More FX Options Education
•
•
•
•
Please visit our archives at: www.ise.com/archives
For upcoming webinars visit: www.ise.com/webinars
Sign-up for Trade Alerts: www.ise.com/fx
Register for podcasts: www.ise.com/podcasts
FX Options Webinar Series
Date
Time
Toni Hansen on "Spotting Opportunities in the FX Market"
7/08/08
4:30 PM
Rob Booker on "What’s Next for the U.S. Dollar?"
7/15/08
4:30 PM
The Market Guys on "Managing Risk in a Volatile Market using FX Options”
7/22/08
4:30 PM
Steve Misic on "Entry & Exit Strategies Using FX Options"
7/29/08
4:30 PM
Price Headley on "Trading the Trend using FX Options"
8/05/08
7:30 PM
John Person on "Staying on the Right Side of the FX Market"
8/12/08
4:30 PM
FX Options Q&A Session: Ask the ISE
8/19/08
4:30 PM
Toni Hansen on “Successful FX Strategies for Any Market Condition”
9/03/08
4:30 PM