PFT Ebook Advanced PDF

ProForexTrades
A complete
summarization of our top
Advanced
Tips and Strategies Version
© ProForexTrades
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Table of
Contents
Introduction 02
Basics 03
Our Most Popular Trading Methods 06
Elliott Wave Theory 11
Supply and Demand 12
Price Action Patterns 14
Candlesticks Patterns 19
TradingView Tools 20
Special Dates 23
Trading Hours 24
Watchlist 25
Wolfe Waves 25
Harmonic Paterns 26
Trendlines 29
Indicators 30
Signals 32
Trade Examples 33
Conclusion 36
ProForexTrades | Strategy eBook 01

Introduction
We want to start by saying thank you for investing
your time and money in this eBook. As someone
who is taking the steps to pursue your passion,
you will find success in this field. Reading this
book and putting in the effort necessary to learn
and grow, you are surely the type of trader who
uses losses and setbacks to move forward and
develop yourself, and it seems like a safe bet
that you will refuse to quit when your path seems
difficult.
In this short book, you will discover some of my

personal favourite tips, tricks, and market secrets.
There is no fluff here: simply the steps and advice
that you’re looking for. If you have any feedback,
we would love to hear it. Enjoy!
02 © ProForexTrades
Basics
Maybe you are not sure where to start as you On the MetaTrader 4 app, you enter your broker
get into trading. In case you’re completely new login credentials – and get started making your
to this, let’s cover some forex basics. Feel free to trades immediately. Wherever you are, you can
skip to the end of this section if you are already check your trades on the app. While MetaTrader
comfortable with our trading skills. 4 may work for beginners, we recommend the
Oanda app, which features a more powerful plat-
What is Forex? How does it work? form (if it’s available in your country). For trading
What am I trading? on a regular basis, we believe that Oanda is supe-
rior to MetaTrader 4, equipping you with the tools
Forex can seem very complicated if you try to read you need to operate at a high level.
about it at some sources, but it simply means
“foreign exchange market”. Say you are living in Of course, if you are only getting your feet wet,
the US and you go on vacation in Europe: when you may consider opening a demo account on
you exchange USD to EUR, that is forex. You are MetaTrader 4 which will let you try trading with
exchanging one currency for another. Doing the no risk and no additional cost.
math at the end of your trip, you realize that your
leftover Euros are actually worth more than your How do you make a trade?
USD. You exchange the currencies once again How do you set an SL/ TP? How do
and end up with more money than you had before you enter a signal?
the first exchange. You probably already see the
potential here. Imagine harnessing this concept Once you have downloaded the MetaTrader 4
many more times at a much faster rate, and in- app, open “Settings,” select “New Account,” and
stead of conducting the trades in person, you do tap “Open a Demo Account.” You can then view all
it all online. “Betting” on whether the price of each the pairs that you can trade on the “Quotes” page.
currency will increase or decrease, you also have
the option to add a layer to your investments,
something that is not possible if you are investing
in stocks.
What is a broker?
What is MetaTrader 4?
What is leverage?
Handling your buying and selling, a broker frees

you up to research and discover profitable trades,
optimizing your time and resources. When you
use a broker, you can buy and sell hundreds of
thousands of dollars in currency instantly via the
broker’s online dashboard.

Selecting a currency pair, you will see the option Please be careful when you are taking signals:
to trade it or pull up a chart. If you tap “Trade,” many new traders end up paralyzed by signals,
you’ll see how to put in a signal. A signal is never learning how to trade for themselves.
when someone tells you which trade to take, Even though signals can be convenient when
and in the example below, you can see a signal you are starting out, trading is never going to be
that we sent out and instructions for entering as easy as copying signals. If it were, everyone
it into MetaTrader 4. We’ll talk more about why would be doing it. It’s much better to walk on
following signals could be a good or bad idea your own two feet!
later on in the book. The Take Profit (TP) and
Stop Loss (SL) are important because they will For a guide about how to use Oanda, we have
automatically close the trade for us when we hit video tutorials available on our Training Channel.
our target levels, a necessity for any trader who
wants to maintain consistency in their trades
and avoid waking up to an empty account be-
cause of trades that got out of control.
What types of trades are there?
This is a question that we get often. Basical- too quick for our international clients (and differ-
ly, there are three types of trades: day trades ing time zones), and swing trades are ideal for
and scalping (short-term), swing trades (medi- teaching new students by showing them more
um-term), and long-term trades. gradual progress. This is also the type of trade
that will lead to the most consistent results in
For a day trade, you are closing the trade before our experience.
the day is over, which is what the typical “forex
trader” claims to do. To succeed at this type of Ultimately, the type of trade that you pursue will
trading, you will need to work a significant number come down to your preference. We encourage
of hours to get any substantial gains. Working a you to try both day trades and swing trades and
full-time job, you probably can’t day trade on the see which one fits your needs better, applying our
side. technical analysis whichever way you choose to
go. When we see a high volatility in the major time
For a swing trade, you may remain in a position frame charts, we try to send trades in smaller time
anywhere from two days to one month. This is the frames to avoid possible fakeouts and traps.
type of trade that we send on our signal group.
There are two reasons for that: day trades are
Our Most Popular
Trading Methods
In this section, we are going to show you our most The answer is simple: it’s risk management.
popular and most used tips and tricks. Once you Starting out (and our founder did this himself),
grasp these concepts fully, you will have a reliable you may risk 30-50% of your account on a single
set of tools to start trading and to improve the trade. One bad trade, following this strategy, will
consistency of your trades. net you losses of as much as $500, and within
three or four trades, you will find your account
Risk Management emptied of its value. The correct amount to risk
is not 30-50% but 1-5%. We recommend hovering
The way that we see it, poor risk management around 2% risk per trade, which minimizes your
skills are the top reason that traders fail, end up loss on any single trade to $20 (in a $1,000 ac-
discouraged, and quit. Read that sentence back count). This is a manageable loss level for almost
because there is no way to overstate how import- anyone, and it will prevent the sort of devastating
ant risk management skills are. Imagine saving losses that will discourage you from continuing
up $1,000 and trying your hand at trading with it. to learn and try.
You make some poor trades over the next seven
days, and you watch as your balance drops from Reframe the question in your mind. Instead of
$1,000 to $550 to $230 to $20. How discouraging asking “How do I stop making bad trades?” ask
would that be? The fact of the matter is that this yourself “How do I minimize the pain that I feel
happens all the time. No one knows exactly what from my losses so that I can keep moving for-
they are doing when they are only starting out. ward?”
The key is risk management.
When you are on the right trading platform, it
Many new traders will come out on top early on, should be easy for you to calculate and manage
turning their $1,000 into $1,500, and let their greed your risk. This is one of the reasons that Oanda’s
overwhelm their senses. They will envision them- FxTrade app is so useful: on Oanda, you can cal-
selves turning their small amount of money into a culate how much risk you face with each trade.
fortune overnight. If you realize that this is never MetaTrader 4, however, leaves you guessing or
going to happen, you will be much better off. You running the calculations yourself. To earn a liv-
earned $500 profit off a $1,000 investment, but ing from trading, you need to know precisely how
we guarantee you will not be able to do that over much money you stand to lose if one of your
and over. As you try – and make riskier trades – trades doesn’t work out. Check out the examples
you will set yourself up for disappointment, in the below, and for a more detailed tutorial, we have
form of a disappearing account value. tutorial videos available in our Training Group.
How do you do earn a fortune as a forex trader?

Why is it that 60% of traders are correct about
their trades but 95% of traders lose money?
On FxTrade by Oanda (pictured on the right), your units on the left to match up to 2% of your
you get to decide how much you want to buy account balance. You can also see how many
and sell according to the units, enabling a great- “available units” you can purchase on the right
er level of precision in your lot sizing. You can side of Oanda, so say that we want to risk $20
risk less than a 0.01 lot size, equivalent to 1,000 out of a $1,000 account: we simply try sever-
units. This is less than the lot size you can risk al different numbers until the “stop loss – USD
on MetaTrader 4. amount” equals $20 (in this case, 900 units or
$19.98 if the trade goes bad). This is the fast,
Let’s go back to the GBP/USD signal from efficient way to see how much you could lose
before. That signal was SL: 1.2600 and TP: or gain. As you can see, we could gain $49 or
1.3363. Entering that information into Oanda, lose $20 here. While this isn’t the “overnight for-
you will see how many pips away the SL and TP tune” that many other traders promise, it is the
are. From here, you can increase and decrease intelligent way to do risk management.

Working with Multiple TPs
We sometimes send trades where there are

multiple TPs (Take Profits). All this means is
that there are two milestones we believe the
trade will hit, a short-term milestone and a lon-
ger-term milestone. Using multiple TPs, we also
help decrease our risk and lock in our profits
if the trade goes bad. Going back to the GBP/
USD signal once again, we see SL: 1.2600, TP1:
1.3129, and TP2: 1.3363.
You make two trades here, splitting the risk: in-

stead of putting 900 units on either side, you
put 450 units on one side and 450 units on the
other, risking the same amount of money but
breaking up the risk.
R:R (Risk Reward Ratio)

The risk reward ratio is a basic principle of the R:R is less than 1:1, it explains how they can
forex trading, and we use it as a foundation in be right 60% of the time and lose money 95% of
our strategy. Defining how much you can lose the money. Even if they are right, they are still
versus how much you can gain, the risk-reward losing more money than they can afford. Sticking
ratio is 1:2.5 in the GBP/USD signal. This is be- to R:R between 1:3 and 1:4, you can lose three
cause we risk $20 to gain $50, and 20:50 can be trades in a row and still turn a profit. These trades
reduced down to 1:2.5. are rarer, but as you become more experienced,
you will recognize them more often. Combining
Check out these examples of good and bad R:R. 2% risk management and trades of 1:3 R:R and
higher, you will drastically improve your chances
On the first image the R:R is 1:1. This is bad. On of turning a profit. This will, of course, take disci-
the second, however, the R:R is 1:4 – which is pline and hard work. There are no easy outs here!
good. When forex traders take trades where
Trading Channels
Some of our favorite patterns to trade on the See that? This channel has been behaving con-
charts are channels. If you look closely, you can sistently for quite some time, but it ended in a
see that the price moves in repeating patterns place that would have been impossible to pre-
like a channel. See the example below. dict. As it always does, the market makes the
final decision. Perfect predictions are always
impossible to make, but professional traders
learn how to recognize better opportunities.
You may look at that example and think that you

know the secret formula to trading. It is not that As you can see in this example, the trade looked
easy, though. Channels can be unpredictable, like it was forming a smaller channel. Then, it
and prices will break out unexpectedly some- continued downward, touching the bottom of
times. We trade channels because they are of- the main channel. Because the timeframe was
ten consistent and because they can pay off if smaller, the trade was out of reach for us. Making
you catch the price at the top or bottom of a smaller trades, you may struggle to see when the
channel (make sure to trade with the trend), but price will increase and when it will decrease – and
you can see below what erratic behavior looks especially which way it will go before touching the
like in a channel. bottom of the channel.

In this example, the trade is making a “fake out” Here, the price has been respecting the bottom
because the price dips below the channel and red line and pushing down into a bearish chan-
then comes back up into the channel to behave nel. It could go up and break resistance and go
like you would expect it to behave. An amateur down or continue to bounce in the wedge.
trader would short as soon as he sees a break-
out from the channel, quickly losing money as
the price comes back up during a retest.
It is crucial that you don’t chase the price. If

you’re wrong, then you’re wrong. You pull out of
the trade and take the lesson for what it’s worth.
Chasing the price from buy/sell/buy/sell/buy,
you need to go back to the drawing board and
stop grasping at straws. Trade another pair or
come back to the trade another day. We have
all seen trade “fake outs,” and when we set up
our SL, we try to take these into consideration. It is possible that the trade will respect this S/R
level and bounce back down. This is not an ex-
Support and Resistance act science, though, and to see where the pric-
es could bounce, you should combine it with
Support and resistance (or S/R) is a fundamen- other strategies. We’ll go over other indicators
tal strategy of price action, and we combine it for showing S/R later on.
with our other techniquest for the best result.
The way it works is this: price movement will
tend to respect certain levels so that if the price
gets stopped three times by a certain level, it’s
likely to get stopped the fourth time too. This is
the idea of S/R in action.
This is a graphic representation of a chart, just

something to highlight support and resistance
concepts. See how the price is respecting hor-
izontal S/R levels while also respecting the
Another example of S/R is that the price will channel? You should train your eye to notice
often respect even price levels (1.000, 0.600, both of these things. It’s important to use S/R
27.500, etc.) because traders usually close and along with your other strategies.
open around these levels (increasing liquidi-
ty), working from the emotion they feel due to
even prices. Large banks will also enter and exit
trades at these even levels, shaping price move-
ment deeply. Check out these examples.
Elliott Wave
Theory
Ralph Nelson Elliott (28 July 1871 – 15 Janu- The movement in the direction of the trend is
ary 1948), the namesake of Elliott Wave The- labeled as 1, 2, 3, 4, and 5. The three-wave cor-
ory, was an American accountant and author. rection is labeled as a, b, and c. We can see
Inspired by the Dow Theory and observations these patterns in long-term as well as short-
found in nature, Elliott concluded that he could term charts.
predict the movement of the stock market by
observing and identifying a repetitive pattern of Ideally, we can identify smaller patterns within
waves. He was able to analyze markets in great- larger patterns. In this sense, Elliott Waves are
er depth, identifying the specific characteristics like a piece of broccoli, where the smaller piece,
of wave patterns and making detailed market if broken off from the bigger piece, does, in fact,
predictions based on these patterns. look like a small version of the big piece. Using
this information (about smaller patterns fitting
Simply put, Elliott said that movement in the di- into bigger patterns), coupled with the Fibo-
rection of the trend is unfolding in five waves nacci relationships between the waves, we can
(called motive waves) while any correction make predictions about trading opportunities
against the trend is in three waves (called cor- with solid R:R ratios.
rective waves).

Supply and Demand
What is supply and demand?
If supply is higher than demand, then price causing the price to go back in the same direc-
will go down and vice versa. This law rules all tion that it was moving before the original big
markets. Shaped by large financial institutions decision.
(banks, hedge funds, etc.), markets respond
to economic events, and as institutions make You can see in this example that there are big,
big decisions, they cause strong movement, in bearish candles after a consolidation period,
turn creating supply and demand zones. When marked as our supply zone here. Once the price
prices return to previous levels, other financial returns to our supply zone, there is an influx of
institutions make new orders of the same type, short orders, pushing the price back down.
Common Patterns The Drop-Base-Rally pattern is just the Rally-
Base-Drop pattern in reverse..
You should know the four basic patterns of supply The Drop-Base-Drop pattern
and demand.
In this pattern, the price moves down (drop),
pauses (base), and then moves down again
(drop). Once again acting as a consolidation pe-
riod, the base will form a rectangle or triangle
normally, which can then create a flag pattern for
the bearish trend. When the price goes down for
the second drop, we can identify the supply zone,
which will run from the lowest point of the base
to the highest point of the base. The price then
returns to the supply zone, acting as an S/R level,
pushing the prices down again. Enter short when
The Rally-Base-Drop Pattern the price reaches the zone (entering a sell limit
order), putting the SL level at the top of the zone
In this pattern, the price moves up (rally), pauses and the TP level at the lowest point between the
(base), and then moves down (drop). Acting as a actual price and the base. Like the other patterns,
consolidation period, the base will usually form the R:R ratio will range from 4 to 7 and we don’t
a rectangle or triangle, and once the price goes recommend making the trade if the ratio is lower
up aggressively, we can identify the supply zone, than 2.
which will run from the lowest point of the base The Rally-Base-Rally pattern is the inverse of
to the highest point of the base. Most times, the Drop-Base-Drop pattern.
when the price comes back to the supply zone,
it acts as an S/R level, pushing the price down How do you identify supply
again. To make this trade, enter short when the and demand levels?
price reaches the supply zone (entering a by limit
order), putting the SL level at the top of the zone
and the TP level at the lowest point between the As we have seen, there are four major supply and
actual price and the base. The R:R ratio for this demand patterns. To identify each of them, try to
detect strong bullish and bearish candles, which
pattern will change from 4 to 7, and we don’t rec-
large financial institutions cause with their major
ommend making the trade if the risk:reward ratio
decisions. If you notice this aggressive move-
is lower than 2. ment, look for a previous consolidation zone or
rectangle pattern, checking for a recent rally or
drop at the beginning of the consolidation. This
way, you can see double top or bottom opportu-
nities (if there is a drop-and-rally or a rally-and-
drop). You can also see a flag pattern (if there
are two rallies or two drops).

Price Action Patterns
Bearish Channel In this pattern, on the other and, there are two par-
allel bullish trend lines plus a preceding bullish
trend. There are several ways to trade this:
- Sell when the price touches the upper trend
line and buy when the price touches the lower
trend line.
- Wait for a breakout and sell.
- Wait for the breakout and retest and sell, the
less risky and rarer case.
The TP and SL may vary in function of other price
action structures and patterns, such as trend
lines, S/R levels, etc.
In this pattern, there are two parallel (similarly Bullish Flag

sloped) bearish trend lines and a preceding bear-
ish trend. There are several ways to trade this:
trend line.
- Wait for a breakout and buy.
- Wait for the breakout and retest, and buy; the
less risky but also the rarer case.
- Aim to trade with the trend, avoiding the risk
inherent to trading against the trend.
The TP and SL may vary in function of other price Now in this pattern, we see two parallel bearish
action structures and patterns, such as trend trend lines that could form a channel, rectangle,
lines, S/R levels, etc. or wedge with a preceding bullish trend. There are
several ways to trade this:
Bullish Channel - Buy when the price touches the lower trend
line (in this case, we don’t recommend to sell
when the price touches the upper trend line as
the preceding bullish momentum could drive
the price to the SL easily).
- Wait for the breakout and retest and buy,
which is as before the less risky and rarer case.
Bearish Flag There are several ways to trade this:
- Sell at the moment of the identification of the
second swing-high in combination with a great
Risk:Reward Ratio; but this is accompanied by
a lower probability of completion.
- Sell at the level of the lowest point between
the swing-highs, which a sell stop order can
help with.
The ideal SL placement is above the swing-highs,
and the TP should be determined in function to
other price action structures and patterns.
Continuing on, we see in this pattern that there Double Bottom

are two parallel bullish trend lines that could form
a channel, rectangle, or wedge with a preceding
bearish trend. There are several ways to trade this:
line (in this case, we don’t recommend to buy
when the price touches the lower trend line as
the preceding bullish momentum could drive
the price to the SL easily).
- Wait for the breakout and retest and sell,
which is (as you remember) the less risky and
rarer case. Here we are looking at two swing-low points
The TP and SL may vary in function of other price with a horizontal line (the support and resis-
action structures and patterns, such as trendlines, tance level), so they should be at the same
S/R levels, etc. price. There are several ways to trade this:
- Buy at the moment of the identification of
Double Top the second swing-low.
- Buy at the level of the highest point between
the swing-lows, using a buy stop order.
The ideal SL placement is above the swing-
highs. TP should be set according to other price
action structures and patterns.
Two swing-high points combine with a horizontal

line (support and resistance level) in this pattern,
and they should be around the same price.
Head and Shoulders There are several ways to trade this:
- Buy when the price crosses the neckline
(union of the 2 swing-highs between each
shoulder and the head).
- Wait for the breakout and retest and buy,
the rarer and less risky case.
Bullish and Bearish Pennants
Cool name, right? This is one of the most com-

plex price action patterns, consisting of one im-
portant swing-high (head) and two smaller high
pivot points at the left and right (shoulders).
There are several ways to trade this
- Sell when the price crosses the neckline
(defined as the union of the two swing-lows These patterns consist of the price creating a
between each shoulder and the head). consolidation in the market, which will even-
- Wait for the breakout and retest and sell, the tually converge at a future point. This pattern
rarer and less risky case. requires more attention than regular bullish
The TP and SL may vary in function of other or bearish patterns because the market could
price action structures and patterns, such as break in any direction. Be sure to wait for a
trend lines, S/R levels, etc. breakout before trying to trade this pattern.
Here are several ways to trade it:
Inverted Head and Shoulders - Buy or sell when the price reaches the end
of the consolidation, if other technical analy-
ses are telling you to believe that it will break
a certain direction.
- Wait for a breakout and buy/sell.
- Wait for the breakout and buy/sell after a
retest, the rarer and less risky case.
Your TP and SL levels may vary in relation to
other price action structures and patterns,
such as trendlines, S/R levels, etc.
This pattern is just the inverse of the original pat-

tern, but instead of the bears regaining power at
the end of the structure, the bulls regain power.
Rising Wedge that they will converge at a point in the future.
There are several ways to trade this:
trend line.
rarer and less risky case.
action structures and patterns, such as trend-
Bullish Triangle
This pattern consists of two bearish trend lines
with different slopes, and the lower trend line
should have more slope than the upper one so
that they will converge at some point in the fu-
ture. There are several ways to trade this.
trend line.
The TP and SL may vary in function of other price This pattern consists of a single bullish trend
action structures and patterns, such as trend line and an S/R level above the trend line, so the
lines, S/R levels, etc. pressure the two levels exert will move the price
aggressively. There are several ways to trade this:
Falling Wedge - Sell when the price touches the support and
resistance level and buy when the price touch-
es the lower trend line.
- Wait for the breakout and retest and buy, the
This pattern consists of two bullish trend lines

with different slope, and the upper trend line
should have more slope than the lower one so
Bearish Triangle There are several ways to trade this:
- Sell when the price touches the upper S/R
level and buy when the price touches the lower
S/R level.
- Wait for the breakout and retest and buy, the
action structures and patterns, such as trend-
Bearish Rectangle
This pattern consists of a single bearish trend

line and an S/R level below the trend line, so
the pressure the two levels exert will move the
price aggressively. There are several ways to
trade this:
- Buy when the price touches the S/R level
and sell when the price touches the upper
trend line.
The TP and SL may vary in function of other This pattern consists of two S/R levels, which
price action structures and patterns, such as you can think of as a consolidation zone as the
trend lines, S/R levels, etc. price remains in this zone until there is a bearish
pressure. There are several ways to trade this:
Bullish Rectangle - Sell when the price touches the upper S/R
level and buy when the price touches the lower
S/R level.
This pattern consists of two S/R levels, which

you can think of as a consolidation zone. The
price remains in this zone until there is a bullish
pressure.
Candlesticks Patterns
Pin Bars
A pin bar is a candlestick where the body is small The effect of these patterns is the same as that of
and the wick is large. We use this term to refer a pin bar, and if you merge these two candles into
to indecision in the market, where there are high one, you will have a pin bar (a candle with similar
volumes of trades in a large price range, as rep- open and close prices). Trade this pattern as you
resented by a candle where the open and close would trade a pin bar: for example, if you see an
prices are similar to each other. S/R level that crosses this pattern (bear trap), it
We can classify these further, into three types, could communicate trend reversal to you.
depending on the wick:
- Hanging Man: when a pin bar is at the top of
a wave
- Hammer: when a pin bar is at the bottom of
a wave
- Spinning Bottom: when a candle has two large
wicks
Combining pin bars with your current price action
strategy, you can identify bear traps, improving
your entries and detecting a possible bounce in a
trend line or channel.
Tweezer Top and Bottom
A Tweezer Top and Bottom candlestick pattern You find the Golden Zone in an area between
is a formation of two candles. One is bullish, and 61.8% and 38.2% Fibonacci levels. It’s true that
the other is bearish. all Fibonacci levels tend to act as S/R levels, but
the Golden Zone is the most powerful. When you
detect a tradeable Golden Zone, keep in mind
that isn’t the only price area where the trend will
change, but rather an area of high market strength.
You should also remember that the price may not
change its direction, so to increase your accuracy
and consistency, stick to the risk management
we advise.

How to Confirm Supply and Demand
Zones with Fibonacci Retracements
and the Golden Zone:
As we have seen, a supply or demand level isn’t If the zone is set inside the Golden Zone, the de-
a specific level where the price could change mand or supply zone could have greater power.
direction. Rather, it is an area between two levels
where the price could reverse its trend direction
if enough of the opposite volume is traded. To
confirm one of these zones with Fibonacci re-
tracements, take the Fibonacci tool and draw it
from a swing high to a swing low. To confirm
this, select the first point of a rally or drop before
the consolidation zone and the lowest or highest
point of the drop or rally after the consolidation
zone.
TradingView Tools
Pitchfork Parallel Line
The Pitchfork tool is a popular trading tool to The Parallel Line tool is one of the most popular
spot turning points or support and resistance trading tools available, drawing two parallel trend
levels. To use it, start by analyzing three pivot lines that make a channel. In TradingView, it’s
points. Then, select it in Gann and Fibonacci easily modifiable, and you can even set custom-
tools, beginning at the earliest point, which we izable colors. To use it correctly, you should first
will base our pitchfork structure around. After spot four pivot points for its placement.
that, select the structure peak and bottom. This Aim to spot more than four points to make the
tool will then draw five parallel lines to form your structure more stable, increasing reliability for
pitchfork structure. possible breakouts and price retests.
You can use this tool in the same way you’d use
trend lines, looking for short and long opportu-
nities when the price breaks S/R levels.
Horizontal Line Short Order
The Horizontal Line tool is a very useful tool in The Short Order tool in TradingView helps you
TradingView. To draw one, select the tool, begin- organize your operations and trades. Only a few
ning at a point in the chart, and after that, there brokers are allowed to open positions in Trad-
will be a horizontal line. You can also try out the ingView, so you have to do it on MetaTrader 4
semi-horizontal line, which will only extend to the and then put it on the TradingView Chart Short
right, not to the left. Order tool. There are two different input options
This tool is useful for identifying and marking for this tool: the expiration time and the SL and
S/R levels. TP levels.
If the price doesn’t hit the SL or TP level before
Fibonacci Arcs the expiration time, the order will close automat-
ically.
Fibonacci Retracement
The Fibonacci Arcs is a little-known tool in Trad-

ingView. As with the normal Fibonacci Retrace-
ments tool, arcs represent potential zones of
support and resistance that vary over time. To
put this into a chart, select a pivot point for the The Fibonacci Retracement is a trending market
center of the arcs and another pivot point where tool that you can use to find potential S/R points.
the first arc will pass. To put it on a chart, you just have to detect one
Combining Fibonacci Retracements and a maximum and minimum point. If the trend is
half-circle, it creates arcs that intersect the base- bearish, select first the high point and later the
line at the common Fibonacci levels. low point, and if the trend is bullish, select first
the low point and later the high point.
Trendline Data Range
The trendline is one of the most used tools in The Data Range tool in TradingView is one of the
price action trading. This is the base of almost simplest tools, empowering you to identify the
every pattern and probably is the most common length of a structure. You should use this tool
form of technical analysis in forex trading. To with limit orders. Usually, limit orders have an
construct a trendline, you just have to pick two expiration time, after which the order will expire
or more pivot points and join them. They will then and become unavailable. To use this tool, you
act as dynamic S/R levels. The more often price just have to select it and put it into a chart, drag-
tests the trendline without breaking it, the stron- ging it to place it and measuring the number of
ger the trendline is. bars and time that you want
Gann Box Price Range
The Gann Box tool is a Fibonacci-based tool, The Price Range tool in TradingView is another
combining two Fibonacci retracements tools. very simple tool, helping you measure the price
Instead of only having the y-axis (vertically), range of a structure. You should use this tool
though, we have two: one in the x-axis (horizon- with price action breakout patterns, like wedg-
tal) and other in the y-axis (vertically). The Fibo- es and channels. For example, you can use it to
nacci retracement marks the points where you determine the TP and SL levels, measuring the
can spot an S/R level. For example, the 0.382 difference between maximums and minimums.
and 0.618 ratios are the points where candles To use this tool, you just have to select it and
can have a special relevance, marking S/R levels put it into a chart, dragging it to place it and
or pivot points. measuring the number of points that you want.
You can use this tool to measure and detect
recurring price cycles.
Special Dates
There are some days in the calendar where the forex market could be inactive (low liquidity) or even
closed. Even though the forex market is technically open 24 hours, 5 days a week, there are some
exceptions:
Low-liquidity days: Forex Market closed:

- January 21st: Martin Luther King - January 1st: New Year
- July 4th: Independence Day - December 25th: Christmas Day
- September 2nd: Labor Day
- November 28th: Thanksgiving Trading on these days can be risky because
big financial institutions are closed, causing
a liquidity shortage that leads to abnormally
spreads and swaps.

Trading Hours
There are some days in the calendar where the forex market could be inactive (low liquidity) or even
closed. Even though the forex market is technically open 24 hours, 5 days a week, there are some
exceptions:
Session Hours (GMT) Asiatic Session

- US Session: 13:00 – 21:00 The Asiatic session is the least liquid period of
- European Session: 08:00 – 16:00 the day. It tends to have a gap at the beginning
- Asiatic Session: 01:00 – 08:00 (because of the accumulated orders placed be-
tween the close of the US session and the bell
European Session of the Asiatic session). In addition, it tends to
The European session, the main stock market of have bigger spreads and less activity than the
which is the London Stock Exchange, is one of other two sessions.
the most liquid of all the sessions, and it tends
to follow price action structures and patterns. Overlap
You can usually spot an open gap between the The Overlap is a time period between 13:00 and
Asiatic and European Session. 16:00 where the European session and the US
session run simultaneously. This is the most liq-
US Session uid period of the day, combining the liquidity of
This is the largest session because the US econ- the two biggest sessions in the world.
omy is the largest in the world. It is also very
liquid, comparable to the European session.
Watchlist
A watchlist is a list of securities monitored for
potential trading or investing opportunities. You
can compose a watchlist with actual limit and
stop orders, current trades, and possible trading
opportunities. This can help you keep an eye on
potential pairs that could lead to lucrative trad-
ing opportunities.
We recommend the apps Google Keep, Apple

Notes, or Evernote to maintain your watchlist
because they are each compatible with multi-
ple platforms. We also use TradingView.com
and Investing.com to place alarms on the pairs
in our watchlist.
Wolfe Waves
The Wolfe Wave is a variation of the Elliott The Wolfe Wave Theory is an advanced trading
Wave: instead of a series of five waves (three strategy that enables you to trade fakeouts. You
rallies/drops and two consolidation zones), a can use this strategy in channels and wedges.
Wolfe Wave consists of a channel/wedge with
the first four waves and the fifth wave breaks To get started, identify a four-wave channel or
following the same direction of the pattern wedge and a fakeout that will act as the fifth
(bullish fakeout for bullish wedge/channel and wave. The entry price will be the crossing of the
bearish fakeout for bearish wedge/channel). price and the trendline formed by connecting
the first wave and the third wave. You will set
the SL below the end of the fifth wave, and you
will have fixed TP level for this strategy, which
will be the extrapolation of waves 1 and 4. Close
the trade when the price reaches the extrapola-
tion of the trendline formed by connecting the
first and fourth waves. You should get an R:R
ratio of 1:5 to 1:9.

Harmonic Patterns
Once you have the first part of the pattern, mark
the 61.8% level, keeping in mind that to find it, you
need the Fibonacci Retracement tool. In the tool,
select the pivot low point to begin the uptrend and
later the pivot high to finish it.
Harmonic Patterns are complex applications of

Fibonacci Retracements. A Harmonic Pattern is a In this case, we see a fixed level where the second
structure that forms when the price completes a wave can finish, and it can’t finish below that level.
path following specific Fibonacci levels. The most If the wave does end below that level, the pattern
common one is the Gartley pattern, and Harmonic will be invalidated. Once you have identified the
Patterns usually have five points (XABCD) or four first two waves, spot the range where the third
in the case of the AB=CD (ABCD) wave can finish.
How do you draw a

Harmonic Pattern?
To draw a Harmonic Pattern, the first thing that

you need to do is identify an uptrend, marking its
beginning and its end.
The pattern can finish between 38.2% and 88.6%

of the anterior wave, so we should mark these
levels.All that is left for us to do now is identify
the last point where the pattern can finish. In this
case, we have two conditions: the fourth wave
should finish at 78.6% of the first wave and also
within 127% and 161.8% of the previous wave.
Because point D (end of the fourth wave) is the
last point of the structure, it has two different ra-
tios based on the reference wave. We will take
the last one (third wave BC), and because point
D should be between 127% and 161.8%, the ratio
for point C will be BCD: 1.27-1.618.
The last step is to get the ratio between the first

wave (XA) and the last point (D), and because its
Fibonacci relation is 78.6%, the second ratio of
If the 78.6% level of the first wave stays outside point D will be XAD: 0.786.
the range of the preceding wave, the structure is
impossible. Common Harmonic Patterns
AB=CD
The AB=CD pattern is the only harmonic that has

four points and exhibits the relationship between
two drops or rallies. We know that the height and
number of bars of one wave will be equal to the
third wave, and the second wave usually acts as a
flag pattern and consolidation zone for the struc-
ture, finishing at the 0.618 Fibonacci level of the
first wave in most cases.
Distance Ratios on
Harmonic Patterns ABC: 0.618-0.786
We build Harmonic Patterns using Fibonacci Re- BCD: 1.27-1.618

tracements, and the relationship between two
points will always be a Fibonacci ratio. Gartley Pattern
We write the distance using two more points of The Gartley pattern was the first Harmonic Pat-
reference. For example, the end of the second tern and it’s a classical five-point (XABCD) Har-
wave of the Gartley Pattern (point B) will be 61.8% monic Pattern.
of the previous wave (XA), so the ratio for point B
will be XAB: 0.618 XAB: 0.618
If we know that point C (end of the third wave) ABC: 0.382-0.886

should be between 38.2% and 61.8% of the pre-
vious wave (AB), the ratio for point C will be ABC: BCD: 1.27-1.618
0.382-0.618
XAD: 0.786

Bat Pattern
The Bat pattern is one of the series of Harmonic

Patterns developed in 2001, and it is highly pre-
cise.
XAB: 0.382-0.5
ABC: 0.382-0.0.886
BCD: 1.618-2.618
XAD: 0.886
Butterfly Pattern
The Butterfly pattern is one of the series of Har-

monic Patterns developed in 2001, and like the
Bat, it is also highly precise.
XAB: 0.786
ABC: 0.382-0.886
BCD: 1.618-2.618
XAD: 1.27-1.618
Crab Pattern
The Crab Pattern is one of the series of Harmon-

ic Patterns developed in 2001. Again, it’s highly
precise.
XAB: 0.382-0.618
ABC: 0.382-0.886
BCD: 2.24-3.618
XAD: 1.618
Trendlines
What are trendlines? How do you identify them?
Trendlines are some of the most popular tools in Trendlines are the union of two swing-highs or
price action trading, forming the basis of almost swing-lows. The more pivot points they connect,
every pattern. In forex trading, trendlines are prob- the more reliable they will be.
ably the most common form of technical analysis.
To construct a trendline, just pick two or more How do you trade them?
pivot points and join them. That’s all there is to it.
Often, they will act as dynamic S/R levels, and the You can trendlines in different ways. For bullish
more prices test the trendline without breaking it, trendlines, there are three main ways to trade
the stronger the trendline is. them:
- Enter long once the price makes a drop and
hits the trendline, making an exception for a
bullish bounce.
- Enter short once the price breaks the trendline.

Indicators
An indicator is basically just an overlay on your You may feel tempted to look through tons of
chart, illustrating statistical and mathematical indicators when you are starting out, accepting
information. You’ve probably heard other traders the chaos and wondering where to go from there.
claim they are trading a “magical indicator” that This is common.
will show you the foolproof spots to enter and
exit a trade. We aren’t going to spend a bunch of time re-
viewing indicators because only about 10% of
We’re here to tell you that the magical indicator, our success comes from indicators. Indicators
unfortunately, doesn’t exist. should be like the salt for your meal, adding to
it but not making it up entirely. Next, we’re going
While indicators can help you see how the market to discuss the indicators that are actually helpful
is behaving and will behave, there is no indicator for us.
that will tell you what to do.
Some of you might have a chart that looks like this. If that’s you and all those indicators help you,
good for you. The odds are strong that you don’t use them all, though. They’re just there so you
can tell yourself you know what you’re doing. Personally, we only trade with 1-2 indicators at a
time. It’s important to remember that a new indicator should not add to your strategy! You should
be learning the concepts of forex and how the market behaves and then look for an indicator that
helps you identify those patterns! A lot of traders will watch a YouTube video about an indicator
and think “Wow, that makes sense. What that guy showed me worked for him!” Chances are, how-
ever, it’s just going to confuse you.
RSI (Relative Strength Index)
RSI (relative strength index) is a helpful tool for To sum all this up, you should realize that indi-
identifying when the market is overbought or cators can help you identify market trends but
oversold. When the RSI graph goes to the top, that they are not always right. You need to know
you can conclude it may be overbought, and what you’re doing and develop a trading strategy
when it’s at the bottom, you can conclude that it so that you can interpret them properly and give
may be oversold. Knowing this, you can tell when them the right weight in your mind.
the price may make a potential drop/rally. Again,
you can’t rely on RSI or any other indicator by
itself. There’s no indicator that will be right 100%
of the time, which is why you need to make your
decisions based on strategies, not indicators.
Look at the RSI example below.

Signals
As many of you know, we post signals in our You cannot master the markets until you master
trading room. Before you make any assumptions your mind, no matter where you get your trades
about that, realize this: you should be wary about from. We only send signals as tools for teaching
the people who are offering to sell you their sig- our students, not as specific directions. Com-
nals. The vast majority of people do not know bining an understanding of signals with a solid
what they’re talking about, and when they fail at course, training videos, and real-world trading
trading on their own, they launch a signal service experience, you can actually learn how to do this
to compensate. Another reason why beginners for yourself. The last thing you should ever do
can fail from signals is because they lack the is accept someone’s signals blindly. If they are
fundamental understanding of how to trade and offering a get-rich-quick scheme, recognize it
manage their money. When they get a few win- for what it is (uselessness) and skip out on it. It
ning trades, they increase their positions. Then bears repeating that we don’t offer get-rich-quick
the next few trades may fail and they’ll lose a big schemes: we are offering you education that will
portion of their accounts. require you to work and build your skillset steadily
over time.
What are signals for anyway?
Our signals are helpful because they afford you As a subscriber, you will also get access to our
a glimpse into our trades so that you can learn support team 24/7. Many of our clients reach out
from what we’re doing. They may earn you a little to us periodically to ask about our trades and to
starter cash, but they are primarily educational get our opinions on pairs. When you are starting
tools. You can spend years learning about forex out, this information will be invaluable. You should
and still not know it all, and we can’t fit all of the not be paying for signals for your whole life, but
information you need into one tiny eBook. rather to cultivate the right mindset and process-
Subscribing to our Training Room and Live Trading es, as they do have their place.
Room, you can see how we set up our trades and
how we apply the knowledge we have presented If you’re serious about taking your trading to the
here. Soon, you’ll be able to recognize the patterns next level, reach out to our Team to learn more!
we have taught you and find them in the wild.
Trade Examples
EUR/AUD 1D
From: 09/01/2018
To: 03/12/2018
For this trade, our team spotted the price bounc-

ing on the rising trend line. We saw that the price
had broken the support, so we had our signal
group enter a sell.
Once the trade hit about 390 pips of profit, we saw

that it was making a pullback and that it would be
likely to move towards the monthly low and touch
down somewhere near that bottom resistance.
We had our signal group enter another sell during
the pullback for an additional 460 Pips of Profit.
This trade brought our group an average 850 pips
of profit.

to create a consolidation zone that acted as a
bearish channel and gave our final confirmation
for the price to break the bullish channel. The
bears finally came in with the downward wave
we were expecting and brought the trade to our
TP with 133 pips.
USD/TRY 1D NZD/JPY 2D
From: 27/03/2019
To: 31/07/2019
For this trade, we waited for the price to break

through the support line it had been following for
about a month. We then waited for the price to NZD/JPY 1D
retrace up a little before the bears came in with a From: 01/12/2018
downward movement. The bears finally came in To: 07/05/2019
with the downward wave we were expecting and
formed a bearish channel that brought the trade For this trade, we saw that the price was in a
to our TP with 473 pips. downtrend bouncing on a bearish trendline.
Then the price formed a bullish wave on a rally,
that finally broke. We then opened a short trade,
with the SL set above the main bearish trend-
line and the TP above the previous low
NZD/CHF 2D
From: 01/08/2018
To: 20/05/2019
For this trade, we waited for the price to break

through the channel it had been bouncing along
for about 9 months. We then waited for the price
A market entry order was set at the retest on the
trendline, and we expected a powerful bearish
wave as the bullish trendline had a lot of slope.
SL was set above the previous high (supply zone),
and TP was set at the bottom of the structure. The
price created a symmetrical triangle that acted
as a consolidation zone for the previous uptrend
(flag pattern). The price dropped to the bottom of
the wedge after touching the supply zone, break-
GBP/AUD 8H ing the bearish triangle, but it didn’t hit the TP lev-
From: 30/08/2019 el. We closed the trade early as we saw that a
To: 16/10/2019 shoulders and head pattern could drive the price
at the top of the pattern again.
For this trade, we saw that the price was bounc-
ing inside a bullish channel (bullish long-term out-
look). The price touched the bottom of the channel
and bounced, starting a bullish trendline. A mar-
ket entry order was set at the end of the pennant,
expecting a rally. TP was set just below the upper
trendline and SL at the bullish channel structure.
The bears took control of the price and made a
drop, but the bulls still maintained strength and
respected the support from our original trading
plan. After a couple of bounces, the bulls came
in with some huge power which pushed the price
right to our target, and automatically closed the
trade after hitting TP. AUD/JPY 2D
From: 26/12/2019
To: 31/01/2020
Price was bouncing inside a rising wedge and

completed a five-wave Elliott Wave pattern. As the
five-wave pattern ended, we expected an upcom-
ing ABC pattern. A market entry order was set at
the top of the rising wedge (end of the fifth wave).
SL was set above the golden zone and TP at the
bearish trendline. The price dropped to the bear-
From: 28/10/2019 ish trendline and made a retest on wave A, but we
To: 21/01/2020 didn’t close the trade, instead waiting for a price
consolidation before another drop. At the end of
Price was bouncing inside a falling wedge after wave B, the bears came in with lots of momentum
breaking the rising wedge in a bearish long-term and pushed the price to our target, creating the
outlook. last wave for an Elliott Wave pattern.
USD/CAD 1D
From: 15/01/2020
To: 03/02/2020
Price was bouncing in a bearish flag and made a

fakeout. The fifth wave created a bearish trendline
where the price was bouncing until the sixth wave
broke it. The entry price was set above the bear-
ish trendline inside the flag, and the Wolfe Wave
strategy helped to confirm the trade. TP was set
below the upper trendline, while SL was set at the
previous swing low (end of the fifth wave). The
price hit the stop order without entering the loss
zone, and we closed the trade early as we saw
that the weekend gap and Brexit fundamentals
could drive the price to the SL level easily.
Conclusion
This eBook isn’t going to make you a millionaire overnight. If you haven’t realized it already, nothing is.
Entering the world of trading equipped with a couple more tools, though, you can start making
more consistent and profitable trades. All in all, you’re going to become a successful trader by
pursuing your goal and never giving up. Instead of wasting your money on a Gucci belt, spend it
on a forex course (even if it’s not one of ours). If you start learning to invest in yourself and your
own education, you’ll find that that’s the most valuable asset you have.
Thank you for taking the time to read this eBook, and if you have any questions feel free to DM us
on Instagram.
Thank you,
The ProForexTrades Team
ProForexTrades | Strategy eBook

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ProForexTrades

ProForexTrades | Strategy eBook 01

In this short book, you will discover some of my

Handling your buying and selling, a broker frees

ProForexTrades | Strategy eBook 03

How do you do earn a fortune as a forex trader?

ProForexTrades | Strategy eBook 07

We sometimes send trades where there are

You make two trades here, splitting the risk: in-

R:R (Risk Reward Ratio)

You may look at that example and think that you

ProForexTrades | Strategy eBook 09

It is crucial that you don’t chase the price. If

This is a graphic representation of a chart, just

ProForexTrades | Strategy eBook 11

ProForexTrades | Strategy eBook 13

In this pattern, there are two parallel (similarly Bullish Flag

Continuing on, we see in this pattern that there Double Bottom

Two swing-high points combine with a horizontal

Bullish and Bearish Pennants

Cool name, right? This is one of the most com-

This pattern is just the inverse of the original pat-

This pattern consists of two bullish trend lines

This pattern consists of a single bearish trend

This pattern consists of two S/R levels, which

Tweezer Top and Bottom

ProForexTrades | Strategy eBook 19

The Fibonacci Arcs is a little-known tool in Trad-

Gann Box Price Range

Low-liquidity days: Forex Market closed:

ProForexTrades | Strategy eBook 23

Session Hours (GMT) Asiatic Session

We recommend the apps Google Keep, Apple

ProForexTrades | Strategy eBook 25

Harmonic Patterns are complex applications of

How do you draw a

To draw a Harmonic Pattern, the ﬁrst thing that

The pattern can ﬁnish between 38.2% and 88.6%

The last step is to get the ratio between the ﬁrst

The AB=CD pattern is the only harmonic that has

We build Harmonic Patterns using Fibonacci Re- BCD: 1.27-1.618

If we know that point C (end of the third wave) ABC: 0.382-0.886

ProForexTrades | Strategy eBook 27

The Bat pattern is one of the series of Harmonic

The Butterﬂy pattern is one of the series of Har-

The Crab Pattern is one of the series of Harmon-

ProForexTrades | Strategy eBook 29

ProForexTrades | Strategy eBook 31

For this trade, our team spotted the price bounc-

Once the trade hit about 390 pips of proﬁt, we saw

ProForexTrades | Strategy eBook 33

For this trade, we waited for the price to break

For this trade, we waited for the price to break

Price was bouncing inside a rising wedge and

Price was bouncing in a bearish ﬂag and made a

The ProForexTrades Team

ProForexTrades | Strategy eBook

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