TABLE OF CONTENTS

1. Top 10 Trading Rules

2. Strategy Rules
2.1. Mark up your chart
2.2. Entry point
2.3. Maintaining orders
2.4. Timeframe purpose
2.5. Entries based on timeframes
3. Risk Management
4. Trading Assignments
5. Candlestick Analysis
5.1. Bullish Signals
5.2. Bearish Signals
6. Major Market Hours
6.1. Sydney
6.2. Tokyo
6.3. London
6.4. New York
7. Major Market Pairs
7.1. EUR/USD
7.2. USD/JPY
7.3. GBP/USD
7.4. USD/CHF
7.5. USD/CAD
7.6. AUD/USD
7.7. NCD/USD
8. Highly Correlated Currency Pairs
9. Forex News Sources
10. *Market Pattern Guide*
 TOP 10 RULES OF TRADING

1. JOURNAL TRADES
2. ALWAYS FOLLOW YOUR RULES
3. DO NOT RISK OVER 5 % PER TRADE MAX
4. ALWAYS BE PATIENT, BE CALM
5. DO NOT LET WINNERS TURN TO LOSERS
6. REVIEW ALL TRADES
7. TREAT TRADING LIKE A BUSINESS
8. FIND A TRADING FRIEND
9. ALWAYS USE A STOP-LOSS
10. SET GOALS

“PUT IN THE WORK THAT IS REQUIRED AND YOU WILL HAVE SUCCESS”
 Risk Management

∠ 2-5% risk per trade

∠ 30-40 pip Stop Loss
∠ At least 2:1 or 3:1 risk reward ratio
∠ Minimum 10 trades to evaluate

Account Balance: ​$6,000 Account Balance:​ $6,000

Stop Loss:​ 30 pips or 600 points Stop Loss:​ 30 pips or 300 points
Take Profit 1:​ 60 pips or 600 points Take Profit 1: ​60 pips or 600 points
2% Risk = $120 per trade = 0 ​ .4 lot per trade 5% Risk = $300 per trade = ​1 lot per trade
$240 per win $600 per win
$120 per loss $300 per loss
100% Win Ratio 100% Win Ratio
10 Win: $2,400 Total Profit: 10 Win: $6,000 Total Profit:
0 Loss: $0 $2,400 0 Loss: $0 $6,000
90% Win Ratio 90% Win Ratio
9 Win: $2,160 Total Profit: 9 Win: $5,400 Total Profit:
1 Loss: $120 $2,040 1 Loss: $300 $5,100
80% Win Ratio 80% Win Ratio
8 Win: $1,920 Total Profit: 8 Win: $4,800 Total Profit:
2 Loss: $240 $1,680 2 Loss: $600 $4,200
70% Win Ratio 70% Win Ratio
7 Win: $1,680 Total Profit: 7 Win: $4,200 Total Profit:
3 Loss: $360 $1,320 3 Loss: $900 $3,300
60% Win Ratio 60% Win Ratio
6 Win: $1,440 Total Profit: 6 Win: $3,600 Total Profit:
4 Loss: $480 $960 4 Loss: $1,200 $2,400
50% Win Ratio 50% Win Ratio
5 Win: $1,200 Total Profit: 5 Win: $3,000 Total Profit:
5 Loss: $600 $600 5 Loss: $1,500 $1,500
40% Win Ratio 40% Win Ratio
4 Win: $960 Total Profit: 4 Win: $2,400 Total Profit:
6 Loss: $720 $240 6 Loss: $1,800 $600
30% Win Ratio 30% Win Ratio
3 Win: $720 Total Profit: 3 Win: $1,800 Total Profit:
7 Loss: $840 (-) $120 7 Loss: $2,100 (-) $300
20% Win Ratio 20% Win Ratio
2 Win: $480 Total Profit: 2 Win: $1,200 Total Profit:
8 Loss: $960 (-) $480 8 Loss: $2,400 (-) $1,200
 Trading Assignments

3 Charts - Choose
USDCAD​ / ​USDJPY​ / ​GBPUSD​ / ​AUDUSD

1. Place Monthly and Weekly Levels

a. (All labels - Zones - Pip Range)
b. Highlight touch, gap or overlap for support and resistance
c. Highlight 5 examples of “Tested" areas in “Green"
d. Highlight 5 examples of “Broken” areas in “Red”

2. Setups, Support/Resistance, Structure

a. Full Support and Resistance (Daily, H4)
b. 5 Examples on how you would use your random line (Support and
Resistance, Patterns, Setups)
c. 5 examples of setups based on higher time frames and break them down
to a timeframe that you could of found an entry opportunity. highlight entry
reasoning. (Bullish/Bearish variations) highlight everything
d. Full structure uptrend to downtrend w/BOS and first sell opportunity full
breakdown
e. Full structure downtrend to uptrend w BOS and first buy opportunity with
full breakdown
f. Mark off 4 break of structures with random line
g. Make sure that all your HH, HL, LL, LH points of structure is labeled and
your first LH or HL is not less than a 38.2% retracement Mark off break of
structure (BOS) with random line

3. Examples of applying moving averages

a. 5 highlighted examples of bullish to bearish crosses
b. 5 highlighted examples of bearish to bullish crosses
c. Higher timeframe highlighted setup
d. Lower timeframe breakdown to entry w/MA cross confirmation

4. Examples of applying trend lines

a. Plot your point A and Point B and how would you take advantage from a
trend line bounce
i. 5 examples downtrend
ii. 5 examples uptrend

5. 3 examples of applying Fibonacci

a. Plot your Point A and your Point B
b. Higher Timeframe - highlighted setup
c. What PRZ Level did it respect and What's the volatility projection of that
PRZ Level
d. Lower timeframe breakdown to entry w/ MA Cross Confirmation
 Candlestick Analysis

∠ Bullish Signals
1. Hammer or Inverted Hammer
∠ The Hammer is a bullish reversal pattern, which signals that a stock is nearing bottom in
a downtrend.
∠ The Inverted Hammer also forms in a downtrend and represents a likely trend reversal
or support.

2. Bullish Engulfing
∠ The Bullish Engulfing pattern is a two-candle reversal pattern. The second candle
completely ‘engulfs’ the real body of the first one, without regard to the length of the
tail shadows.

3. Morning Star
∠ As the name indicates, the Morning Star is a sign of hope and a new beginning in a
gloomy downtrend. The pattern consists of three candles: one short-bodied candle
(called a doji or a spinning top) between a preceding long black candle and a succeeding
long white one.
4. Tweezer Bottom
∠ First, there must be two or more adjacent candles of either color. Second, a clear
downtrend should be present. Third, those candles must reach the same low point.
∠

5. Three White Soldiers

∠ It consists of three long white candles that close progressively higher on each
subsequent trading day. Each candle opens higher than then previous open and closes
near the high of the day, showing a steady advance of buying pressure.
 ∠ Bearish Signals

1. Evening Star
- The bearish ​evening star reversal pattern​ starts with a tall white bar that carries an
uptrend to a new high. The market gaps higher on the next bar, but fresh buyers fail to
appear, yielding a ​narrow range​ candlestick. A gap down on the third bar completes the
pattern, which predicts that the decline will continue to even lower lows,

2. Bearish Engulfing
- This pattern is characterized by a large black body engulfing a preceding smaller white
body, which appears during an uptrend. The black body does not necessarily engulf the
shadows of the white body but totally engulfs the body itself. This is an important top
reversal signal.

3. Tweezer Top
- First, there must be two or more adjacent candles of either color. Second, a clear
uptrend should be present. Third, those candles must reach the same high point.
Forex Market Hours
 Forex Major Market Pairs

Highly Correlated Currency Pairs

Forex News Sources

1. FxStreet.com

2. ForexFactory.com

3. Bloomberg.com

4. ForexLive.com

5. Dailyfx.com
Table of contents

1​ Bullish Signals
● Bullish Engulfing
● Morning Star
● Bearish Exhaustion
2​ Bearish Signal
● Bearish Engulfing
● Evening Star
● Bullish Exhaustion
3​ Double Bottoms
● Bullish
● Bearish
4​ Triple Bottom/Top
● Bullish
● Bearish
​5​ Head & Shoulders
● Upright
● Inverted
● Tilted
6​ Wedge Patterns
● Bullish
● Bearish
​ 7​ Broadening Patterns
● Ascending
● Descending
● Ranging
8​ Flag Patterns
● Bullish
● Bearish
​9​ Pennant Patterns
● Bullish
● Bearish
​ 10​ Diamond Patterns
● Top
● Bottom
​ 11​ Triangle Patterns
● Asymmetrical
○ Ascending
○ Descending
● Symmetrical
○ Bullish
○ Bearish
12​ Rectangle Patterns
● Bullish
● Bearish
1 Bullish Signals

Many Bullish signals are used as significant confirmation, the most important are as 
follows: 
 
Bullish Engulfing​: 
-An engulfing candle has to completely eclipse the previous bearish candle 
- An insignificant bearish candle with a large bullish candle to follow will not be 
counted 
- Try to stay away from low volume candles 
Morning Star
 
- A morning star is, a bearish candle first, a doji/ low volume candle second with a 
bullish candle to follow third that covers at least 50% of the bearish candle 
- Bullish candles that fall below the 50% level will not be counted 
- Try to stay away from low volume setups

Bearish Exhaustion 
-Candles both bearish & bullish with long wicks at the end of a bearish push 
- The wicks have to be significant, the longer the wick the better because wicks = 
exhaustion 
-Look for this setup near important support or resistance levels as price often sharply 
bounces 
- As always, try to stay away from low volume setups 
2 Bearish Signals

Bearish signals often imply the end of a bullish trend or reversal. These signals can 
turn to be highly lucrative if spotted early by a keen eye. 
 
Some popular Bearish signals are to follow: 
 
Bearish Engulfing: 
-An engulfing candle has to completely eclipse the previous bullish candle 
- An insignificant bullish candle with a large bearish candle to follow will not be 
counted 
- Try to stay away from low volume candles 
Evening Star

- A evening star is, a bullish candle first, a doji/ low volume candle second with a 
bearish candle to follow third that covers at least 50% of the bullish candle 
- Bearish candles that fail to cover at least 50% will not be counted 
- Try to stay away from low volume setups

 
 
 
 
 
 
 
 
 
 
 
 
 
Bullish Exhaustion 
 
- Candles both bearish & bullish with long wicks at the end of a bullish push 
- The wicks have to be significant, the longer the wick means more exhaustion is 
present 
- Look for this setup near important support or resistance levels as price often 
sharply bounces 
- Low volume is more risky so try to stay away from it 
 

 
3 Double Bottoms/Tops *​Double Bottoms are reversal patterns
found on all time-frames*

A double top is one of the most traded patterns due to it being very accurate and easy to spot. 
This pattern signals a reversal and a potential change in trend. The pattern is shown with two 
peaks and resembles the shape of an M. 
 
4​​Triple Bottoms/Tops Triple bottoms are reversal patterns typically
found on lower time-frames
*Do not mistake for rectangle*

Very similar to a double bottoms/tops, triples are reversal patterns and indicate a reversal or
change of trend. This pattern can be extremely accurate and can present high quality trades.
5 Head & Shoulders Head & Shoulder Patterns are reversal patterns
Found on all time-frames. High TF= Stronger
*The shoulders should line up almost exactly*

A Head & Shoulder pattern is a pattern formation with three peaks and a single neckline within
the structure. The two outside peaks (the shoulders) are lower than the center peak (the head).
This pattern predicts a reversal in price and is one of the most traded patterns. A break of the
neckline is the indication of a completed head & shoulder pattern and potential entry area.
Tilted Inverted Tilted
6 Wedge Patterns ​* Wedge patterns are found as continuation
patterns, however, they can also be reversal patterns*

A wedge pattern is a popular trading pattern that can signify either the start or end of a trend.
Being that wedge patterns can be continuations or reversals it becomes important as to where
they form. For example, if a bearish wedge forms after a downtrend it will most likely be a bullish
reversal. Same goes for a bullish wedge. If a bullish wedge forms after an uptrend, it will most
likely turn bearish. This pattern squeezes price to an apex which means price is really
consolidating in there! This means that an explosive move typically happens after a wedge is
completed.

​Bullish ​ Bearish
7 Broadening Wedge Patterns

*A broadening pattern consistently forms HH’s (in an ascending example) or LL’s (in a
descending example) in a specific direction*
*Broadening Patterns have no flat side*
*Can be bullish or bearish*
*Can be a continuation or reversal*

Broadening Wedge Patterns can be a bit tricky as they are not the most popular trading pattern.
However they can give great insight as to what is happening in the market. A broadening wedge
is the flipped image of a regular wedge. This means that price action starts at the apex of the
pattern. From the apex price actions starts to build momentum and increase in volume. Where
this pattern forms in a trend is key to the outcome, just like regular wedges. However, this
pattern typically forms continuation patterns.

Ascending Broadening Wedge

Descending Broadening Wedge

 Ranging Broadening Wedge

​*Can be bullish or bearish*

*Can be a continuation or reversal*
*Consistently forms HH’s” & LL’s after each other*

Ranging Broadening Wedge patterns represent a cone. Most of the time this pattern is
overlooked as it can be hard to identify. Usually this pattern is a reversal pattern as it shows
price action starting at the apex of the pattern and builds momentum from there. This pattern
often builds so much volume it explodes out of the pattern and shows a strong breakout.
8 Flag Patterns

Flag patterns are very popular patterns to trade. They present great opportunities to get into a
trade, as they are continuation patterns and are quite easy to spot. The “flag” of the pattern
must run between parallel lines and can either be angled up, down or flat (sideways). Flags
which are angled in favor of the last move (example: pole up and flag slanting up), weakens the
momentum of the pattern. The highest quality Flag would be a strong push up followed by a flat
flag or a flag that is slightly angled down. If the push is down, you ideally want to trade a flag
that is flat or angled up.

Bullish Bearish
9 Pennant Patterns *Lower time frame & Can not be ascending or descending*

Like triangles, pennants are continuation patterns. The main difference is that pennants are
found on lower time frames and usually consist of around 30-40 individual candle sticks.
Pennants also have what is known as a “Flagpole”. The formation is a high volume push
followed by consolidation. The high volume push would be the “flagpole” while the consolidation
is the actual pennant. Pennants are always sideways/horizontal. Ascending or descending
pennants do NOT exist.

Bullish Bearish
10 Diamond Patterns *This is a strong reversal pattern*

Diamond patterns are generally pretty rare in price action, When you see one forming it is
usually a strong signal in the opposite direction of the most recent trend (a reversal). These
patterns represent heavy consolidation at a key zone/level. Thus, the strong reversal. To
properly identify this pattern you need to draw four trendlines fairly symmetrically around price
action. You want to see the start of the pattern expanding (forming HH’S & LL’S) while the end
of the pattern should be contracting (forming LH’S & HL’s). Remember symmetry! If the pattern
doesn’t look like a diamond do not force the trendlines.

Top Bottom
11 Triangle Patterns *Typically known as continuation patterns*

Asymmetrical

Asymmetrical Triangle patterns are very popular patterns traded by most traders. Often the
triangle is referred to as a continuation pattern but that is not always the case. These patterns
show a push in price action with one side of the triangle being flat. Either support or resistance
is the flat side depending on ascending or descending asymmetrical triangles. Usually price
breaks through and continues with the pattern.
Ascending Descending
Symmetrical Triangle Patterns *Triangles are continuation patterns*

A symmetrical triangle is a pattern with two intersecting trend lines. This pattern has a series of
highs and lows where price is squeezed to a point (apex). Both trend lines should be close to
equal in slant, length, angle etc. Hence, symmetrical triangle. Symmetrical Triangle patterns
look a lot like pennants but the main differences are timeframe and formation. Pennants have
flag poles, symmetrical triangles do not. Symmetrical triangles are higher timeframe patterns
while pennants are considered lower timeframe. Meaning that triangles can last for days, weeks
while pennants may last for a few hours.

Bullish Bearish
13 Rectangle Patterns

Rectangles refer to a pattern formation that show price action bouncing between a price ceiling
and price floor. Often this is referred to as ranging, especially on higher time-frames. This
pattern is mostly traded on a break of support or resistance with a retest.

Bullish Bearish
Extra pattern examples