Synergy Average Price Bar PDF

Synergy
Average Price Bars
By Dean Malone
2014, Dean Malone. All rights reserved. No reproduction without permission.
Disclaimer
Trading Foreign Exchange (Forex) carries a high level of risk and may not be suitable for all investors.
There is a possibility that you could sustain a loss of all or more of your investment therefore you
should not invest money that you cannot afford to lose. You should be aware of all the risks associated
with Foreign Exchange trading. Unique experiences and past performances do not guarantee future
results! Testimonials herein are unsolicited and are non-representative of all clients; certain accounts
may have worse performance than that indicated. Trading stocks, futures, options and spot currencies
involves substantial risk and there is always the potential for loss. Your trading results may vary.
Because the risk factor is high in the foreign exchange market trading, only genuine "risk" funds should
be used in such trading. If you do not have the extra capital that you can afford to lose, you should not
trade in the foreign exchange market. No "safe" trading system has ever been devised, and no one can
guarantee profits or freedom from loss.
CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN
LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT
ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE
UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS
LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT
THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE
THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.
Substantial risk is involved. Forex trading has large potential rewards, but also large potential risk. You
must be aware of the risks and be willing to accept them in order to invest in the Forex markets. Don't
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is being made that any account will or is likely to achieve profits or losses similar to those discussed on
our site. Also, the past performance of any trading methodology is not necessarily indicative of futures
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that any software or training will guarantee profits or not result in losses from trading.
All related detailed information pertained herein is copyrighted material. Any reproduction,
duplication, or copying in whole or in part without permission is strictly prohibited. The training
materials herein are the copyrighted property of Dean Malone.
Average Price Bars (APB)

Average Price Bars (APB) are modified Heikin-Ashi type candlesticks. Heikin-Ashi is a Japanese term
translated as 'Average Bar'; therefore, the name, Average Price Bars. Heikin-Ashi candlesticks are a
weighted version of candlesticks calculated with the following formula:
Open = (open of previous bar + close of previous bar)/2
Close = (open + high + low + close)/4
High = maximum of high, open, or close (whichever is highest)
Low = minimum of low, open, or close (whichever is lowest)
Synergy Pro APB are a modified version of the traditional Heikin-Ashi bars because of the extreme
volatility in the Forex. This modification reduces the overstretched length of High and Low wicks found
with normal Heiken-Ashi bars; and, it allows the APB to run closer to current Close price conditions.
Benefits of Average Price Bars

Average Price Bars provide a better depiction of current market by eliminating or reducing fluctuations
in nominal price action often referred to as choppiness of current High, Low, and Close price action.
In other words, the Synergy Pro APB removes the noise of price distortion.
The APB allows a trader to focus on the underlying trend. This is analogous to oceanic subsurface
currents such as the Equatorial Undercurrent, an eastward-flowing subsurface current that extends the
length of the equator in the Pacific Ocean. Years ago, researchers discovered their deep-underwater
devices drifted eastward as the surface currents of the Pacific Ocean flowed westward following wind
conditions.
Similarly, in trading the markets, there are two currents: surface and subsurface. The surface current is
the immediate trend with choppy price action related to spontaneous reactions from institutional and
retail traders. Whereas, the subsurface current is the underlying trend that is less affected by market
spontaneity and runs the course of typical price. In my own trading, I have found if I focus on average
price movement instead of Close prices the market conditions seem less volatile and my perception of
the market is more balanced.
Another benefit of the APB, it tends to reveal market strength and consolidation bar by bar.
As mentioned above, the APB candlestick is designed to follow the underlying trend within current
price activity and is color coded accordingly. There are five variations of APB:
1.
2.
3.
4.
5.
Buy Long APB

Sell Short APB
Short-body APB
Reversal APB
Consolidating APB
Blue body with blue wicks

Red body with red wicks
Either blue or red body with corresponding wicks.
Either a blue body with red wicks or red body with blue wicks.
Either blue or red body with gray wicks.
A Buy Long APB indicates an uptrend.
Long APB
A Sell Short APB indicates a downtrend.
Short APB
A Small Body APB indicates a potential trend change and can be either blue or red. Consider exiting if
in a position or waiting for confirmation before entering a trade.
Small Body Long APB
Small Body Short APB
A Reversal APB indicates a potential reversal in trend direction. It is identified by opposing body and
wick colors. The wicks reveal the current trend direction while the body shows the reversal direction.
The Reversal Long APB occurs after a Long trend indicating a potential reversal Short. The Reversal
Short APB occurs after a Short trend indicating a potential reversal Long.
Reversal Long APB
Reversal Short APB
A Consolidating APB indicates market congestion. Either the market is consolidating after a trend or
the market is moving sideways in a tight range where buyers and sellers equally oppose each other. It
is identified by gray wicks. A Consolidating Long APB has a blue body with gray wicks. A Consolidating
Short APB has a red body with gray wicks.
Consolidating Long APB
Consolidating Short APB
Note: Repeating Consolidating APB indicate that the market has no clearly defined direction. It may
be best to stand aside until a trade entry condition exists, such as breaking the range of the
Consolidating APB.
The following are examples of APB scenarios.
A normal APB pattern with Price Action Channel (Yellow lines):

Hint:
When trading the Synergy method, look to enter a

trade Long as the Blue APB crosses above the
Price Action Channel (PAC) or trade Short as the
Red APB crosses below the PAC.
Within the above APB pattern, Reversal APB appear after

trends indicating a change in trend direction:
Hint:
When Reversal APB occur, consider closing or scaling

out of a position. If not in a position, wait for trade
entry conditions.
Within the above APB pattern, Consolidation APB appear

during a range and after a trend:
Hint:
When Consolidating APB occur, consider closing or

scaling out of a position. If not in a position, wait for
trade entry conditions.
A sample of a sideways market with Consolidating

and Small Body APB:
Hint:
Consider a range formed by the repeated

Highs and Lows of the Consolidating APB.
Look for an entry on a break of the range.
Avoid False Exits - Another reason for using APB is to avoid

False Exits that appear with normal Japanese candlesticks.
Take a look at the picture to the right. In both the Short
trend and the Long trend, reversal candles appear
suggesting potential exits.
Placing the APB on top of the Japanese candlesticks, the

False exit points are apparent as the APB show the
underlying trend and a continuation in the trend direction.
Hint: If APB show 3 lower Highs or 3 higher Lows and
maintains the current trend direction, the market is
consolidating due in part to potential profit-taking.

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Synergy

Average Price Bars

2014, Dean Malone. All rights reserved. No reproduction without permission.

Average Price Bars (APB)

Benefits of Average Price Bars

2014, Dean Malone. All rights reserved. No reproduction without permission.

Buy Long APB

Blue body with blue wicks

A Buy Long APB indicates an uptrend.

A Sell Short APB indicates a downtrend.

Small Body Long APB

Small Body Short APB

2014, Dean Malone. All rights reserved. No reproduction without permission.

Reversal Long APB

Reversal Short APB

Consolidating Long APB

Consolidating Short APB

2014, Dean Malone. All rights reserved. No reproduction without permission.

A normal APB pattern with Price Action Channel (Yellow lines):

When trading the Synergy method, look to enter a

Within the above APB pattern, Reversal APB appear after

When Reversal APB occur, consider closing or scaling

Within the above APB pattern, Consolidation APB appear

When Consolidating APB occur, consider closing or

2014, Dean Malone. All rights reserved. No reproduction without permission.

A sample of a sideways market with Consolidating

Consider a range formed by the repeated

Avoid False Exits - Another reason for using APB is to avoid

Placing the APB on top of the Japanese candlesticks, the

2014, Dean Malone. All rights reserved. No reproduction without permission.

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