SUPREME

TRADER'S
PRICE ACTION
GUIDE

VOLUME 1
2ND EDITION

WRITTEN & EDITED BY

VUSANI MAGATSHAVHA
 1 ABOUT FOREX

2 FOREX QUOTE

3-4 FOREX EXPLAINED

5 PRICE ACTION

6 SWINGS

7 UPTREND

8 DOWNTREND

9 MANAGEMENT

10 GUIDELINES
 SUPREME TRADER'S

WHAT IS FOREX TRADING?

The forex (meaning foreign exchange) market is a market for

trading currency pairs. The financial market operates for 24
hours a day and is closed on weekends. When investors trade
Fx they’re buying and selling currencies over the foreign
exchange market. Fx is highly speculative and complex.

⦁ The Fx is open 24hrs a day, five days a week.

⦁ Currencies are always traded in pairs, and prices are quoted

in pairs.

⦁ Currency prices fluctuate rapidly, but in small increments,

which makes it hard for investors to make money on small
trades. That’s why currencies almost always are traded with
leverage, or money borrowed from the broker.

⦁ So because forex is traded in pairs, you’re always exchanging

one currency for another in this case buying one, selling the
other.

⦁ There are seven currencies that are known as “ majors ” ( or

the most often traded): EUR, USD, CAD, GBP, AUD, JPY, and
CHF( swiss franc). The “major pairs” are these currencies
paired with the USD.
 SUPREME TRADER'S

HOW TO READ A FOREX QUOTE

Understanding or being able to read forex quotes is important.

Heres an example of an exchange rate: EUR/USD 1.12044

So basically you’re always buying or selling the base currency.

Within a pair, one currency will always be the base and one
will always be the quote currency- so, when traded with the
USD, the EUR is always the base currency. When you want to
buy EUR and sell USD, you would buy the EUR/USD pair. When
you want to buy USD and sell EUR you would sell the EUR/USD
pair

⦁ The currency on the left (EUR) is the base currency and is

always equal to one unit 1€ in this example.

⦁ The currency on the right (USD) is called the quote currency.

⦁ The number is what the quote currency is worth relative to

one unit of the base currency.
 SUPREME TRADER'S

WHAT IS A PIP?
A pip is a very small measure of change in a currency pair in
the Fx market. It can be measured in terms of the quote or in
terms of the underlying currency. A pip is a standard unit and
is the smallest amount by which a currency quote can change,
which is usually $0.0001 for USD related currency pairs, which
is more commonly referred to as one basis point.
 SUPREME TRADER'S

THE MOST IMPORTANT TERMS

IN FOREX EXPLAINED:

⦁ Buy (Going long) – You buy when you are predicting that the
price of any given currency pair is going to rise, base on your
analysis.

⦁ Sell (Going short) - You sell when price is high and you are
predicting that on a given currency pair, the price is going to
fall, based on your analysis.

⦁ Spread - it is the variable that tells us the cost of trading

between currencies. Buy price - sell price = spread

⦁ Pip (simplified) – they express the change in value between

currency pairs. If USD/JPY moves from 107.500 to 107.600,
then it means it moved 100 pips.

⦁ Take profit Order (TP) - is an automatic order that closes

your trade   for profit when the price reaches a specific level.

⦁ Stop Loss Order(SL) - A stop loss order closes your trade at a

loss if price reaches a certain level against your position
 SUPREME TRADER'S

PRICE ACTION TRADING

Price action is simply how the price will react at certain levels
of resistance or support.

This technical analysis approach will help you

identify highs/ lows, support and resistance areas. Price
action requires no lagging indicator to distract you from what
is actually going on with your chart.

Price Action explained:

SUPPORT
Support is the level where price finds it difficult to fall below
until it eventually fails to do so and so it bounces back up.
It's the level at which buyers enter the market and drive the
price higher.
 SUPREME TRADER'S

RESISTANCE
Resistance is the level where price finds it hard to rise above.
It is the ceiling that price fails to break through and so it
bounces back down.
It's the level at which sellers enter the market and drive price
lower.
 SUPREME TRADER'S

TRENDS

UPTREND
An uptrend is how we refer to a currency pair when the
overall direction of price is upward. In an uptrend, each
peak is higher than the previous peak and each low is higher
than the previous low. To further simplify this, we can tell a
currency pair is in uptrend if its showing us a series of
higher swing highs and higher swing lows.

7
 DOWNTREND

A downtrend describes the overall price movement of a

currency pair to be downward. In a downtrend, each peak is
lower than the previous peak and each low is even lower
than the previous low. We can easily tell a currency pair is
in a downtrend if its showing us a series of lower swing
highs and lower swing lows

8
 SUPREME TRADER'S

MONEY MANAGEMENT
⦁ Always include a Stop Loss on all positions.

⦁ Ideally you should risk way less than what you're willing to
gain, so if your trade will risk losing R500.00 from your
account, then you should only take
trades that will profit you R1000.00 or more.

⦁ After your trade has executed, with both your Stop loss and
Take profit, LEAVE IT ALONE.

⦁ Always imclude a Take Profit on all positions.

⦁ Apply the principles of money management on every trade:

Avoid temptations to risk a larger amount of your equity in
hopes of bigger profits.

⦁ Do not add to a loosing position.

 SUPREME TRADER'S

RULES
1. Cut losses quickly

2. Don't hold and hope

3. Have a plan on every trade (entry and exit)

4. Don't gamble and chase markets

5. Be patient (as you wait for trading opportunities)

6. Always apply the principles of risk management

7. Update your watchlist every weekend

SUPREME TRADER'S

High Risk Warning: Forex, Futures, and Options trading has large potential rewards, but
also large potential risks. The high degree of leverage can work against you as well as for
you. You must be aware of the risks of investing in forex, futures, and options and be
willing to accept them in order to trade in these markets. Forex trading involves substantial
risk of loss and is not suitable for all investors. Please do not trade with borrowed money or
money you cannot afford to lose. Any opinions, news, research, analysis, prices, or other
information contained on this book is provided as general market commentary and does not
constitute investment advice. We will not accept liability for any loss or damage, including
without limitation to, any loss of profit, which may arise directly or indirectly from the use
of or reliance on such information. Please remember that the past performance of any
trading system or methodology is not necessarily indicative of future results.

Currency 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 futures and
options markets. Don't trade with money you can't afford to lose.The past performance of
any trading system or methodology is not necessarily indicative of future results.

Contact : 067 170 9252

Mail : supremetraders21@yahoo.com
Insta : @vussymagz_