365 Trading Academy by Leroy Maisiri 365tradingacademy@mail.

com

Complicated 365 Candles, Talitha Areas,

Drawing Levels Accurately, Multiple
Time Frame Analysis, Entry Points + Risk
to Reward Ratio, and Leverage.
I AM A CONSISTENT WINNER BECAUSE:

1. I objectively identify my edges.

2. I predefine the risk of every trade
3. I completely accept the risk or I am willing to let go of the
trade.
4. I act on my edges without reservation or hesitation.
5. I pay myself as the market makes money available to me
6. I continually monitor my susceptibility for making errors
7. I understand the absolute necessity of these principles of
consistent success and, therefore, I never violate them.
- Mark Douglas, Trading in the Zone: Master the Market with Confidence,
Discipline, and a winning attitude.

There are generally two schools of thought when it comes to the markets. The first is the
Random Walk Theory, sometimes referred to as the Efficient Market Hypothesis, which states
that price movements in securities are unpredictable. Because of this random walk, investors
cannot expect to consistently outperform the market as a whole.

Proponents of the Random Walk Theory will argue that applying fundamental or technical analysis
to attempt to time the market is a waste of time that will simply lead to underperformance. Investors
would, according to this theory, be better off buying and holding an index fund.

This theory argues that stock prices are efficient because they reflect all known information
(earnings, expectations, and dividends.) Prices quickly adjust to new information, and it is
virtually impossible to act on this information. Furthermore, price moves only with the advent of
new information, and this information is random and unpredictable.

Opponents to the Random Walk Theory believe that future price action can be predicted by
previous price action. They tend to buy into technical analysis and believe that technical
indicators, chart patterns, and trend lines can help predict future price action.

1
365 Trading Academy by Leroy Maisiri 365tradingacademy@mail.com

The opponents to the Random Walk Theory have it partially right—you can predict future price
action based on previous price history, but not using technical indicators. We use previous price
action to show us where areas of excess supply or demand are.

The forces that drive price action in a market are supply and demand. This should be clear
by now, here we will discuss the last types of supplies and demands specifically complicated 365
candles and Talitha Areas

If you have ever taken a microeconomics course, you know that supply and demand is an
economic model of price determination in a market. It concludes that in a competitive market,
the unit price for a particular good will vary until it settles at a point where the quantity
demanded by consumers (at current price) will equal the quantity supplied by producers (at
current price), resulting in an economic equilibrium for price and quantity.

The four basic laws of supply and demand are:

1. If demand increases and supply remains unchanged, a shortage occurs, leading to

a higher equilibrium price.
2. If demand decreases and supply remains unchanged, a surplus occurs, leading to a
lower equilibrium price.
3. If demand remains unchanged and supply increases, a surplus occurs, leading to a
lower equilibrium price.
If demand remains unchanged and supply decreases, a shortage occurs, leading to a higher
equilibrium price.

2
365 Trading Academy by Leroy Maisiri 365tradingacademy@mail.com

Applying this to trading, supply represents willing sellers and demand represents willing buyers.
Every time price direction changes, the relationship between supply and demand changed. We
this a Market Turn

. When markets are trending upward, demand is greater than supply, and the opposite is true for
markets trending down. Areas where the stock trades sideways in a tight range (Talitha Areas)
are areas where supply and demand are in balance. We can gain a competitive edge as traders if
we know where these areas of supply and demand are. We plot them on our charts as supply
zones and as demand zones.

1. Complicated 365 candles – there isn’t much of a difference between the characteristics
of a 365 candles and complicated 365 candles except for the fact that there is more than
one 365 candle in a series of complicated 365 candles, this number of candles is never
fixed, it could be 2 or 5, etc. The description of what a 365 candle doesn't change.
Complicated 365 candles are candles that defy the trend but equally create an area of
value that represents where price is coming from. So complicated 365 candles in an
uptrend create areas of demands once an imbalance is given, and complicated 365
candles create supplies in a downtrend.

3
365 Trading Academy by Leroy Maisiri 365tradingacademy@mail.com

2. Talitha Areas - This is when price trades sideways, commonly known as a range. Here
price takes the time to consolidate, before continuing to its main direction. Talitha areas
also start off as Potential Continuation Patterns (PCP) until imbalances occur. When
Talitha Areas are created on uptrends they form demands and when created on
downtrends the create supplies.

We never take trades on any PCP’s until they give us confirmation, and this is done through
imbalances., that is during the range period of a Talitha area or the creation of 365 or
complicated 365 candles these all remain PCP's until they actually become CP's. So to trade a
CP, in reality, means waiting for it to form, plus the imbalance to only catch price at the fresh
touch. Like the whiteboard example below with regards to a Talitha, area a buy trade.

4
365 Trading Academy by Leroy Maisiri 365tradingacademy@mail.com

5
365 Trading Academy by Leroy Maisiri 365tradingacademy@mail.com

Drawing Areas of Value

The base of any imbalance can be defined by a proximal and distal line. The distal line will
be the price furthest away from the current price, the proximal line will be the closet to
current, and the proximal line will be the closet to current price action. Proximal lines are
always at the top of demand and at the bottom on a supply, the opposite for the distal lines
(this will be made clearer in the diagram).

When drawing a demand, you must always cover the lowest lows in that area of value.
When drawing a supply we always cover the highest highs in the area of value.

6
365 Trading Academy by Leroy Maisiri 365tradingacademy@mail.com

Multiple Time Frame Analysis:

I am sure it is clear by now we always start off any trade idea by consulting with the monthly
time frame, specifically focusing on the immediate supplies and immediate demands. We
start our Multiple Time Frame Analysis (MTFA) this way always. Acknowledging all of
our rules, understanding all the areas of value that can be created in a chart.

On the monthly time frame find the supply or demand in charge. That is a supply or demand
controlling price direction. Then mark on your monthly time frame where the price will turn.
Once this has been clearly marked on your chart, drop to the weekly time frame, looking for
opportunities there to see a possible entry point from where price will turn according to your
rectangle from the monthly. On the weekly, you can draw a new area of value within the
monthly area or simply re-adjust the zone drawn from the monthly to suite a weekly area of
value. The same finally is done on the daily time frame.

Entry Point

While mastering trading it is highly recommended that all trades be entered using the daily
time frame after a clinical take on your multiple time frame analysis. Ensuring that your entry
on daily is confluent with higher time frames. This must be applied both buy or sell trades,
below is just an example of a potential sell area on the daily time.

7
365 Trading Academy by Leroy Maisiri 365tradingacademy@mail.com

Your Broker and this idea of leverage

A broker can make or break your Trading career and in this business, a broker is your
business partner as he is responsible for linking you to the markets.

Brokers job is to be the client’s-brokerage-liquidity provider-the markets:

You as a client/trader after you open an account your broker connects your trades to their
liquidity provider and the liquidity provider connects those trades in the market. The liquidity
provider also gives the Broker quotations of price on assets and more reason why you get
charged broker spreads as they pass some of those expenses to you the client. liquidity
providers are those big banks.

TYPES OF BROKERS

1. DEALING BROKER-their principle is in market making

2. NON-DEALING BROKER-Acts as a link between the market and the client in return
for commissions and spreads and does not deal in market making

HOW DO BROKERAGES DIVIDE THEIR TRADERS?

Brokers divide their traders into 3 Groups to help them understand and better manage their
clients. They are Divided into BOOK A, BOOK B, and a HYBRID BOOK

8
BOOK A -This category consists of Traders who can be considered to be very good
consistent traders who make very good profits and know what they are doing in the market as
shown by results.

BOOK B -These are the Traders who generally are not doing well in the market blowing
accounts – everyone starts here. The main characteristic of these traders is that they make
consistent losses and having no ideas about Markets, naturally, brokers love these types of
Traders.

HYBRID BOOK -These are Traders who we can call 50/50 types of traders, they are
making profits, sometimes making losses, they cannot be considered to make be making
consistent profits.

The point of the business from a brokers perspective:

whenever you join a brokerage or blow your account and fund it again, the first placement is
always in the B book until they can accurately see what kind of trader you are. So for
example if they see you are just making consistent losses or blowing your accounts then B
book is your home, if they see you make profits and sometimes losses and there is no even
balance then they can switch you to the Hybrid Book, in the Hybrid Book they are also
watching you, if you make losses then you get downgraded to book B, if you continue with
50/50 approach then this becomes your home. The day you become more consistently
profitable they will switch you to BOOK A.

Leverage:

With 1:1 Leverage

If it’s a standard Account then 1 lot size (1,00) equals 100 000units and the minimum in a
standard account would be 0,01 lot size.

Now if you are trading and you go for 1 standard lot size (1,00) the minimum you should
have in your account is $ 1000.00

So on 1 standard lot size, 1 pip is worth $10.

0,01 lot – 1 pip change will be worth 10cents
0,10 lot - 1 pip change will be worth 1 dollar
0,50 lot – 1 pip change will be worth 5 dollars

Now if your Trading starting Capital is $ 100.00 on a standard account then leverage of 1:1
won’t be worth it at all.

With leverage of 1:1

→
0,01 100 000x 0,01 = $ 1000.00 with 1 lot, 1 pip change = $10
Now let’s say we increase the leverage to 1:10. This means your leverage is now worth
$1000.00, the broker is lending you $ 900.00 Your original investment has been multiplied by
10.

Your $100.00 = 100 x 10 = $ 1000.00 now you can trade it via a Standard Account, opening
a maximum of 0.01 lots on a standard account.

9
365 Trading Academy by Leroy Maisiri 365tradingacademy@mail.com

With 1:100 Leverage

1: 100 will increase your $ 100 to $ 10 000 – you now open a maximum of 0,10 lots now. On
a standard account 0,10 lots for 1 pip = $ 1. That 0,01 x 10postions

With 1:500 Leverage

100 x 500 = 50 000

You can open a trade with 0.5/0.50 lots 1 pip change = 5 dollars (massive risk appetite).

So real trade scenario:

You have $100 you open a sell position at 1.3450 and the trade moves to 1.3452 up! that means
price has moved against you by 2pips meaning $ 10.00 goes to the exchange company/broker
– you only have $ 80 left if the market in just a few pips keeps going against you then your
whole account is gone. So even if you decided to go with this much leverage do not open
trades with that type of lot size on a $100.00 account.

10
365 Trading Academy by Leroy Maisiri 365tradingacademy@mail.com

Recommended Leverage 1:100 – here you have 100pips margin, avoid opening the
maximum lots which is 0,10.

A small account big positions equals losing that account.

So we recommend that for every $100.00 in your account you stick to 0,01 lot size.

White Board Pictures

11
12
13
14