KRUGERFX

CONTENT PAGE

BEGINNERS GUIDE
DEFINITIONS
WHAT TO USE , HOW TO USE IT AND WHEN TO USE IT

RISK MANAGEMENT
LOT SIZE CALCULATION
HOW MUCH TO RISK PER TRADE
SETTING UP TRADES
MAXIMUM DAILY LOSS
RISK TO REWARD RATIO

CANDLE STICKS
WHAT ARE CANDLE STICKS
HOW ARE CANDLE STICKS STRUCTURED
WHEN ARE CANDLE STICK PATTERNS USEFUL
BULLISH CANDLE STICK PATTERNS
BEARISH CANDLE STICKS PATTERNS
CONSOLIDATION CANDLE STICKS PATTERNS

INDICATORS
DIFFERENT TYPES OF INDICATORS
HOW TO USE THESE INDICATORS
WHERE ARE THESE INDICATORS USEFUL

NEWS EVENTS
HOW TO GET NEWS EVENTS FOR YOUR SPECIFIC CHART
HOW TO USE THEM WHEN TRADING

CHART PATTERNS
DIFFERENT TYPES OF CHART PATTERNS
HOW THESE PATTERNS ARE STRUCTURED
STRATEGIES
RESISTANCE AND SUPPORT
TREND LINES AND TREND LINE BREAKOUTS
BASIC AND ADVANCED CHART PATTERNS

TRADING ROUTINE
DAILY ROUTINE YOU CAN FOLLOW
WEEKEND ROUTINE YOU CAN FOLLOW

JOURNALLING
HOW TO SET UP YOUR TRADING JOURNAL
HOW TO SET UP YOUR STRATEGY JOURNAL
 BEGINNERS GUIDE

WHAT IS FOREX? FOREX IS TRADING CURRENCY PAIRS. TRADERS LIKE

YOU AND I MAKE MONEY WHEN THE EXCHANGE RATE OF THE
CURRENCIES PRICE EITHER INCREASES OR DECREASES.

WHAT PLATFORMS I RECOMMEND YOU USE.

CHART ANALYSIS : TRADING VIEW OR METATRADER
NEWS AND ECONOMIC CALENDER : INVESTING.COM
BROKER I USE : HFM MARKETS ( MIGHT NOT BE AVAILABLE IN CERTAIN
COUNTRIES )
JOURNALLING : ANY SPREAD SHEET CAN BE USED FOR JOURNALLING

WHAT IS A FOREX PAIR? A CURRENCY PAIR IS THE BUYING AND SELLING

OF TWO CURRENCIES. FOR EXAMPLE USDJPY ( US DOLLAR – JAPANESE
YEN ) WHEN WE BUY USDJPY WE ARE BUYING THE US DOLLAR WHICH IS
THE BASE CURRENCY. WHEN WE SELL USDJPY WE BUY THE JAPANESE YEN
WHICH IS THE QUOTED CURRENCY.

WHAT IS A LOT SIZE? A LOT SIZE WILL BE YOUR VOLUME IN WHICH YOU
PURCHASE OR SELL IN A MARKET. WE HAVE 3 MAIN TYPES WHICH INCLUDE
THE STANDARD LOT ( 100 000 OF A CURRENCY ), MINI LOT ( 10 000 UNITS
OF A CURRENCY ) AND MICRO LOT ( 1000 UNITS OF A CURRENCY ). YOUR
LOT SIZE WILL HAVE A GREAT IMPACT ON YOUR LOSSES AND PROFIT. THINK
OF IT THIS WAY. YOUR LOT SIZE IS A MULTIPLIER OF EITHER LOSS OR
PROFIT.

WHAT IS A PIP AND A MICRO PIP? A PIP IS WHAT US TRADERS USE AS

A MEASUREMENT. A PIP IS THE SECOND SMALLEST NUMBER A PRICE CAN
MOVE HOWEVER IF WE GO MORE IN DEPTH. THERE IS WHAT WE CALL A
MICRO PIP WHICH IS THE LOWEST PRICE CAN MOVE. WE USE PIPS TO
MEASURE PRICE AND CALCULATE PROFITS. EVERY PIP WOULD HAVE A 10X
EFFECT ON THE LOT SIZE AND A MICRO PIP WOULD BE A 1X MOVEMENT.
WHAT DOES IT MEAN TO GO LONG AND TO GO SHORT? WHEN
SOMEONE SAYS THEIR GOING LONG IN A TRADE THEIR BUYING INTO THE
MARKET. IF THEIR GOING SHORT THEIR SELLING, SIMPLE AS THAT. WHEN
YOUR BUYING YOUR EXPECTING MARKET TO RISE AND WHEN YOUR
SELLING YOUR EXPECTING THE MARKET TO FALL.

WHAT IS A STOP LOSS AND WHY YOU NEED IT? A STOP LOSS KEEPS
YOU IN BETWEEN BLOWING YOUR ACCOUNT AND NOT. MARKETS GO BAD
REALLY QUICK AND YOU WANT TO BE PROTECTED. A STOP LOSS IS AN
AUTOMATED PROCESS WHEREBY YOUR TRADE WILL AUTOMATICALLY
CLOSE IF IT GOES IN THE DIRECTION OPPOSITE TO THE TRADE YOUR
HOLDING. IT IS SET USING PRICE AND FURTHER ON YOU’LL SEE HOW I
CALCULATE IT.

WHAT IS TAKE PROFIT AND WHY WE NEED IT? A TAKE PROFIT IS

VERY SIMILAR TO A STOP LOSS HOWEVER IT DOES AS IT SAYS TAKE PROFIT.
IT KEEPS YOU AWAY FROM THE GREEDY MISTAKES SOME MAKE WHEN
PRICE GOES IN THEIR DIRECTION AND REVERSES. YOU CAN USE THIS TO
KEEP A SET PROFIT AMOUNT YOU WANT TO RECEIVE. LATER ON WE WILL
LEARN HOW TO CALCULATE IT.

RECOMMENDED STARTING CAPITAL. ITS SIMPLE THE MORE CAPITAL

EQUALS THE MORE RETURN. TRADING WITH A LOW AMOUNT OF CAPITAL
CAN BE RISKY AND DOESN’T ALLOW MUCH PROFIT. I UNDERSTAND YOUR
GETTING INTO TRADING TO MAKE MONEY AND MIGHT NOT HAVE ALOT OF
CAPITAL. WHILE IDEALLY I RECOMMEND STARTING WITH 2000$. YOU
MIGHT GET AWAY WITH 300$. IF YOUR NOT ABLE TO GAIN ENOUGH
CAPITAL AND DON’T WANT TO RISK WHAT YOU HAVE YOU CAN TRY GET A
FUNDED ACCOUNT FROM PROP FIRMS LIKE FTMO.

WHAT IS SUPPORT, RESISTANCE AND TREND. SUPPORT IS AN AREA

WHERE BUYERS ARE IN CONTROL THESE ARE LEVELS WHERE PRICE
CREATES AN AFFECT AS IF ITS BOUNCED OFF THIS AREA AND GONE
UPWARDS. SUPPORT LEVELS TEND TO PUSH PRICE UP. RESISTANCE IS AN
AREA WHERE SELLERS ARE IN CONTROL. THESE ARE LEVELS WHERE PRICE
CREATES THE REVERSE BOUNCE AFFECT AND GOES DOWNWARDS. TRENDS
ARE WHEN PRICE MOVES DIAGNAL IN TWO WAYS. EITHER TOP LEFT TO
BOTTOM RIGHT (DOWNTREND)
OR FROM BOTTTOM LEFT TO TOP RIGHT (UPTREND).

DRAWING A SUPPORT LEVEL : YOUR GOING TO USE 2 VERTICLE LINES

FROM THE LOWER WICK AND ONE AT THE LOWER BODY. YOU ARE THEN
GOING TO USE THE RECTANGLE BOX AND EXTEND IT BETWEEN THESE 2
LINES AND MOVE IT TOWARDS THE RIGHT.

DRAWING A RESISTANCE LEVEL : YOUR GOING TO FOLLOW THE SAME

PROCEDURE AS DRAWING SUPPORT HOWEVER YOUR GOING TO USE THE
UPPER WICK AND UPPER BODY

WHAT IS REVERSE TREND? REVERSE TREND IS A REVERSAL OF THE

CURRENT TREND AND THE CREATION OF A NEW TREND. SIMPLY , IF PRICE
IS IN A DOWNTREND A REVERSE TREND WOULD BE PRICE MOVING IN A
UPWARDS MOMENTUM. THE SAME CAN HAPPEN WITH A UPTREND
TURNING INTO A DOWNTREND.

WHAT IS CONSOLIDATION? WHEN PRICE IS IN CONSOLIDATION IT

MEANS THAT PRICE IS NOT MOVING EITHER UP TREND OR DOWN TREND
BUT SEEMS TO BE MOVING IN A STRAIGHT LINE. THIS IS USAULLY A BAD
ENVIRONMMENT FOR TRADERS BUT THERE ARE WAYS TO TRADE DURINNG
THIS TIME.

WHAT IS RETRACEMENT ? RETRACEMENT ARE PRICE CORRECTIONS

AND TAKE PLACE DURING TRENDS. SIMPLY, IF PRICE IS IN A DOWNTREND.
IT WILL MOVE UP A LITTLE BEFORE CONTINUEING ITS DOWNTREND
CREATING A “v” SHAPE. RETRACEMENT ALSO HAPPENS IN UPTREND AND
CAN MOVE DOWN BEFORE CONTINUING ITS UP TREND.

WHAT IS SPREAD ? SPREAD IS THE GAP BETWEEN THE BID PRICE AND
THE ASK PRICE. THE FURTHER THE SPREAD THE MORE LOSS YOU WILL
HAVE ONCE TRADE IS OPENED. WHEN LOOKING TO BUY OR SELL YOU
WANT TO WAIT FOR THE SPREAD OR GAP TO BECOME SMALLER. SPREAD
IS USAULLY HIGH DURING THE OPEN TIME ON MONDAY.

DIFFERENT TRADING HOURS . THERE ARE THREE MAIN SESSIONS

THAT TAKE PLACE WITHIN A DAY. THERE IS THE ASIAN SESSION ( 11PM TO
8AM @GMT +0 ) , EUROPEAN SESSION AND THE NORTH AMERICAN
SESSION ( 12AM TO 8PM @GMT+0 ). I PERSONALLY TRADE THE
EUROPEAN SESSION WHICH TAKES PLACE FROM 7:00 TO 16:00 @ GMT
+0. EUROPEAN SESSION IS WHERE MOST OF THE VOLUME COMES IN
AND IS WHERE PRICE MOVES THE MOST.

DIFFERENT TIME FRAMES . YOU WILL NOTICE THAT ON METATRADER

AND TRADING VIEW WE HAVE THE FOLLOWING SYMBOLS ,
1M,5M,15M,30M,1H,4H,1D,1W,1M. THESE ARE OUR TIME FRAMES
WHILE OTHER PLATFORMS MAY SHOW MORE I RECOMMEND JUST USING
THESE. TIME FRAMES ARE LIKE ZOOMING INTO THE GRAPH THE SHORTER
THE TIME FRAME THE MORE QUICKLY THE CANDLES WILL MOVE. FOR
EXAMPLE 5M WOUD MEAN 5 MINUTE CHART AND EACH CANDLE WILL
REPRESENT 5 MINUTES EACH.

WHAT ARE FUNDUMENTALS? FUNDUMENTALS WILL BE ANYTHING

RELATED TO NEWS , POLITICS AND ANYHTING THAT AFFECTS MARKET
MOVEMENT OTHER THAN TECHNICAL ANALYSIS.

WHAT IS SCALPING? SCALPING IS TRADING VERY SHORT TERM TRADES

SOMETIMES BEING OPENED AND CLOSED WITHIN A FEW HOURS OR
MINUTES. TRADERS WHO SCALP WILL MOSTLY USE SMALLER TIME
FRAMES AND TRADE SMALL MOVEMENT IN THE MARKET WHILE
OPENING AND CLOSING A LARGE AMOUNT OF TRADES.

WHAT IS SWING TRADING? SWING TRADING IS TRADING MAJOR

HIGHS AND LOWS IN A CURRENCY PAIR. THESE CAN HAPPEN OVER THE
COURSE OF MANY DAYS. TRADERS WHO SWING TRADE WILL MOSTLY
TRADE DAILY TIME FRAMES AND WILL TRADE LARGE LONG TERM
MOVEMENTS.

WHAT IS LONG TERM INVESTING? LONG TERM INVESTING CAN

OCCUR OVER A LONG PERIOD OF TIME AND TRADERS WILL MOST LIKELY
LOOK FOR SHORT TERM LOWS TO BUY AND HOLD. THESE TRADES CAN
OCCUR OVER THE COURSE OF MANY MONTHS OR EVEN YEARS
DEPENDING ON THE TRADER.

WHAT IS EQUITY? EQUITY WILL BE YOUR CAPITAL BALANCE WHILE

TAKING INTO ACCOUNT YOUR OPEN TRADES. YOUR EQUITY WILL ONLY
BECOME YOUR CAPITAL BALANCE ONCE YOUR TRADES ARE CLOSED AND
CAN BE EITHER LOWER OR HIGHER THAN YOUR CAPITAL BALANCE
DEPENDING ON YOUR TRADES.

WHAT IS A RISK TO REWARD RATIO? A RISK TO REWARD RATIO IS

RATIO BETWEEN YOUR LOSS AND PROFIT. AN EXAMPLE WILL BE 1:2
WHICH IS FOR EVERY PROFIT YOU MAKE IT WILL COVER 2 LOSSES.
ESSENTIALLY YOU WANT TO WIN MORE THAN YOU CAN LOSE TO BE LONG
TERM PROFITABLE AND KEEPING A HIGHER RISK TO REWARD RATIO THAN
1:1 IS RECOMMENDED.

WHY IT IS IMPORTANT TO HAVE A RISK MANAGEMENT? HAVING

A RISK MANAGEMENT ALLOWS YOU TO LIMIT YOUR LOSS AND LIMIT THE
AMOUNT YOU ARE ALLOWED TO LOSE WITHIN THE TIME FRAME GIVEN.

AGGRESSIVE TRADING VS SAFE TRADING. AGGRESSIVE TRADERS

WILL RISK MORE ON THEIR TRADES WHILE HAVING A TIGHT STOP LOSS
AND A HIGH RISK TO REWARD THEY ALLOW THEIR TRADES TO RUN
UNINTERUPTED UNTIL REACHING THEIR STOP LOSS OR TAKE PROFIT
WHILE A SAFE TRADER WILL RISK LESS ON A TRADE AND HAVE MORE
ROOM ON THEIR STOP LOSS. THEY HAVE A IDEAL RISK TO REWARD AND
CAN CLOSE EARLY ON THEIR TRADE IF THEY EXPECT A REVERSAL TO THEIR
STOP LOSS OR DONT SEE PRICE GOING IN THEIR DIRECTION AND LIMIT
THEIR LOSS.
WHAT DOES IT MEAN WHEN PRICE RESPECTS STRUCTURE AND
BREAKS STRUCTURE? WHEN PRICE RESPECTS A STRUCTURE IT MEANS
THAT PRICE WILL FOR EXAMPLE MOVE INTO YOUR RESISTANCE ZONE AND
START TO REVERSE. A WICK FORMING OUTSIDE THE STRUCTURE IS STILL
VALID AS LONG AS IT DOES NOT CLOSE OUTSIDE TYOUR STRUCTURE. A
BREAK OF STRUCTURE IS WHEN PRICE FOR EXAMPLE GOES THROUGH
YOUR SUPPORT LEVEL AND THE CANDLE CLOSES OUTSIDE YOUR
STRUCTURE THIS IS CONSIDERED A BREAK OF STRUCTURE.

WHAT IS BULLISH AND BEARISH MOMENTUM? BULLISH

MOMENTUM MEANS THAT PRICE IS MOVING IN A UPWARDS DIRECTION
AT A FAST PACE WITHOUT RETRACEMENTS. BEARISH MOMENTUM WILL
BE THE SAME HOWEVER IT WILL BE MOVING DOWNWARDS WITH LITTLE
TO NO RETRACEMENTS.

WHAT IS BULLISH AND BEARISH PRESSURE? BULLISH PRESSURE

HAPPENS WHEN PRICE IS MOVING IN A DOWNTREND HOWEVER IT
BEGINS TO CONSOLIDATE FOR A SMALL TIME PERIOD WITH A WELL
RESPECTED SUPPORT LEVEL. THIS CAN SOMETIMES BE SEEN WHEN
CANDLES FORM A LARGE WICK UNDER THEM. THE SAME WILL HAPPEN
WITH BEARISH PRESSURE HOWEVER PRICE WILL CREATE A STRONG
RESISTANCE LEVEL AND CANDLES CAN BE SEEN WITH LARGE WICKS
ABOVE THEM.

WHAT DOES IT MEAN WHEN PRICE SPIKES. WHEN PRICE SPIKES IT

MEANS THAT PRICE HAS MOVED EITHER UP OR DOWN IN A VERY FAST
PACE THIS CAN BE SEEN AS A LARGE CANDLE FORMING IN A SHORT
PERIOD OF TIME. THESE CAN USAULLY BE CAUSED BY IMPORTANT NEWS
RELEASES.

WHAT IS FIBONACCI AND HOW DO WE USE IT. THE FIBONACCI IS A

MEASUREMENT TOOL THAT CALCULATES A MOVEMENT OF PRICE IN
PERCENTAGES AND CAN BE SHOWN WITH LINES SPREADING OUT FROM
LEFT TO RIGHT. WE USE THE FIBONACCI TOOL WHEN WE WANT TO
IDENTIFY POSSIBLE SUPPORT AND RESISTANCE LEVELS AND WE CAN TAKE
ENTRYS AT THESE PERCANTAGE LEVELS . LATER ON I WILL SHOW YOU
HOW WE USE THE FIBONACCI TO IDENTIFY IMPORTANT ADVANCED
PATTERNS AND HOW WE WILL TRADE USING THE TOOL.

WHAT IS A RETEST. WHEN PRICE RETEST A STRUCTURE IT MEANS THAT

PRICE HAS BROKEN THE STUCTURE AND HAS COME TO RETEST IT. FOR
EXAMPLE WHEN PRICE BREAKS A SUPPORT AND RETEST IT. THE SUPPORT
WILL NOW BECOME RESISTANCE AND TRADERS WILL ENTER A TRADE
WHEN PRICE RETEST.
 RISK MANAGEMENT

LOT SIZE CALCULATION :

FORMULA : CAPITAL X % ( AMOUNT OF CAPITAL YOUR RISKING PER

TRADE ) = ANSWER {DIVIDE} ( AMOUNT OF MICRO PIPS FROM ENTRY TO
STOP LOSS ) = LOT SIZE

IF YOU ARE USING TRADING VIEW YOU CAN USE THE LONG AND SHORT
TOOL WHICH WILL AUTOMATICALLY CALCULATE YOUR LOT SIZE ONCE YOU
SET A LIMIT ORDER.

EXAMPLE : CAPITAL = 1000 USD

SCALPING = 2% per trade
ENTRY = 122.033
STOP LOSS = 121.033

1000×2% = 20 {DIVIDE} ( 122033 - 121033 = 1000 MICRO PIPS ) = 0.02

LOTS

EXAMPLE : CAPITAL = 150 USD

SWING TRADING = 5% per trade
ENTRY = 0.02799
STOP LOSS = 0.2820

150×5% = 7.5 {DIVIDE} ( 02799 - 02820 = 21 MICRO PIPS ) = 0.357/0.36 LOTS

EXAMPLE : CAPITAL = 576.10/576

LONG TERM TRADING = 15% per trade
ENTRY = 1877.00
STOP LOSS = 1875.00

576 x 15% = 86.4 {DIVIDE} ( 187700 - 187500 = 200 MICROPIPS ) =

0.432/0.43 LOTS
HOW MUCH TO RISK PER TRADE :

AGGRESSIVE TRADING

SCALPING :
RISK PER TRADE : 2% OF CURRENT CAPITAL
MAXIMUM LOSS PER DAY : 10%

SWING TRADING :
RISK PER TRADE : 5% OF CURRENT CAPITAL
MAXIMUM LOSS PER DAY : 25%

LONG TERM TRADING :

RISK PER TRADE : 15% OF CURRENT CAPITAL
MAXIMUM LOSS PER MONTH : 45%

SAFE TRADING

SCALPING :
RISK PER TRADE : 0.1% OF CURRENT CAPITAL
MAXIMUM LOSS PER DAY : 1%

SWING TRADING :
RISK PER TRADE : 1% OF CURRENT CAPITAL
MAXIMUM LOSS PER DAY : 10%

LONG TERM TRADING :

RISK PER TRADE : 10% OF CURRENT CAPITAL
MAXIMUM LOSS PER MONTH : 30%

SETTING UP A TRADE :
• STEP 1 : FIND YOUR ENTRY POINT USING THE RULES ON THE
STRATEGY YOUR TRADING.

• STEP 2 : SET YOUR STOP LOSS USING THE CORRECT METHOD GIVEN
FOR THAT STRATEGY.

• STEP 3 : SET YOUR TAKE PROFIT USING THE GIVEN RISK TO REWARD
RATIO OR WHERE THE RULES ALLOCATE YOU TO INSERT IT.

MULTIPLE TAKE PROFITS :

> FIRST DECIDE ON HOW MANY TAKE PROFITS YOU WANT TO HAVE.

> NEXT YOU NEED TO DIVIDE THE AMOUNT OF TAKE PROFITS YOU WANT TO
SET BY THE PERCENTAGE OF CAPITAL YOUR RISKING PER TRADE WHICH IS
SHOWN ABOVE.

> YOUR THEN GOING TO PLACE THE SAME AMOUNT OF TRADES AS YOUR
TAKE PROFITS BASED ON THE RISK PERCENTAGE CALCULATED IN THE
PREVIOUS STEP.

> ONCE YOUR FIRST TAKE PROFIT IS REACHED AND THE FIRST TRADE HAS
CLOSED YOUR GOING TO MOVE THE STOP LOSS OF THE OTHER TRADES TO
THE ENTRY PRICE. IF YOU HAVE 3 TAKE PROFITS ONCE THE SECOND TAKE
PROFIT HAS BEEN REACHED YOU WILL MOVE THE LAST TAKE PROFIT TO THE
PRICE OF YOUR FIRST TAKE PROFIT.

> HERE IS AN EXAMPLE :

> YOU BOUGHT USDJPY AND HAVE 2 TAKE PROFITS SET AT YOUR PREVIOUS
RESISTANCE.

> YOU WANT TO RISK 1% OF YOUR CAPITAL SO YOU WILL DIVIDE 1% BY 2

WHICH GIVES YOU AN ANSWER OF 0.5% PER TRADE.

>YOU TAKE THE TRADE AT 127.065 AND YOUR FIRST TAKE PROFIT IS HIT AT
133.09.
 >YOU WILL THEN MOVE YOUR CURRENT OPEN TRADE TO 127.065 AND WAIT
FOR IT TO EITHER HIT SECOND TAKE PROFIT OR BREAKEVEN.

RISK TO REWARD RATIO :

• HAVING A HIGH RISK TO REWARD GIVES YOU AN EDGE OVER THE

MARKET AND ALLOWS YOU TO MAKE MONEY EVEN WITH A WIN
RATE OF 50%.

• IN EACH STRATEGY THERE WILL BE A DIFFERENT RISK TO REWARD

SET.

• HERE ARE THE MINIMUM RISK TO REWARD RATIOS TO USE BUT

KEEP IN MIND YOUR SUPPORT AND RESISTANCE LEVELS.
> SCALPING : 1:1.5 RISK TO REWARD
> SWING TRADING : 1:2 RISK TO REWARD
> LONG TERM INVESTING : 1:10 RISK TO REWARD
 CANDLE STICK

WHAT ARE CANDLE STICKS ?

CANDLE STICKS ARE A WAY OF DISPLAYING CHART INFORMATION. THERE

ARE MANY DIFFERENT TYPES SUCH AS BAR CHARTS AND LINE GRAPHS
BUT I FIND THAT THIS IS THE BEST WAY TO PREDICT MARKET MOVEMENT.

HOW ARE CANDLE STICKS STRUCTURED ?

CANDLE STICK PATTERNS ARE DISPLAYED WITH TWO SEPARATE COLOURS.

SOME ARE DISPLAYED IN RED AND GREEN. BUT BOTH FOLLOW THE SAME
STRUCTURE :

• OPEN PRICE : OPENING PRICE INDICATES THE FIRST TRADED PRICE

OF A SPECIFIC PAIR DURING THE TIME FRAME OF THE CANDLE
STICK.
 • CLOSE PRICE : CLOSING PRICE INDICATES THE LAST TRADED PRICE
OF A SPECIFIC PAIR DURING THE TIME FRAME OF THE CANDLE
STICK.

• WICK : WICK INDICATES THE VARIATION IN PRICE RELATIVE TO A

SPECIFIC PAIRS OPENING AND CLOSING PRICE.

WHEN ARE CANDLE STICK PATTERNS USEFUL ?

CANDLE STICK PATTERNS BECOME USEFUL WHEN THEY ARE NEAR A

SUPPORT OR RESISTANCE LEVEL. THEY HELP US SEE IF PRICE WILL
RESPECT THE SUPPORT/RESISTANCE AREA OR IF IT WILL BREAK THROUGH.
IT ALSO HELPS US FIND A GOOD AREA FOR ENTRY.
 BEARISH CANDLE STICK PATTERNS.

BEARISH PIN BAR : THE CANDLE HAS A LONG WICK ABOVE IT AND
COLOUR DOES NOT MATTER WITH THIS PATTERN. THIS CANDLE
STICK SHOWS US THAT WHEN THE CANDLE OPENED IT PUSHED UP
BUT HAD VERY WEAK BULLISH MOMENTUM AND SHOWS THAT
THE BEARS PUSHED PRICE TO CLOSE NEAR WHERE IT OPENED
HENCE THE NAME PIN BAR
BEARISH ENGULFING CANDLE : ENGULFING CANDLE REFERS TO A
CANDLESTICK THAT FULLY ENGULFS THE PREVIOUS CANDLE. THIS
SHOWS THAT BEARS HAVE TAKEN FULL CONTROL AND COULD
POTENTIALLY START A DOWN TREND.
 TWEEZER TOP : THE TWEEZER TOP IS A CANDLE STICK PATTERN
THAT SHOWS SIGNS OF REVERSAL AND LACK OF BULLISH POWER ,
THIS PATTERN CONSIST OF ONE BULLISH CANDLE AND ONE
BEARISH CANDLE. THE CLOSING PRICE OF THE FIRST CANDLE AND
OPENING OF THE SECOND WILL REMAIN EQUAL WITHOUT A
BULLISH WICK ABOVE THE SECOND OR FIRST

EVENING DOJI STAR : THIS PATTERN IS MADE UP OF 3 CONSECUTIVE

CANDLE STICKS , A BULLISH CANDLE STICK , A DOJI CANDLE AND A
BEARISH CANDLE. IT INDICATES THAT BEARS ARE CURRENTLY TAKING
CONTROL OF THE MARKET.
HINTS THAT PRICE WILL RESPECT A RESISTANCE LEVEL , HAS
BEARISH PRESSURE AND IS HEADED DOWN TREND.

* LONG WICKS ABOVE THE CANDLE : CANDLE STICKS THAT

HAVE LONG WICKS ABOVE THEM INDICATE THAT BULLS HAVE
LOST THEIR MOMENTUM AND THAT BEARISH PRESSURE IS
PUSHING PRICE DOWN

* SHORTER CANDLE STICKS : WHEN THERE ARE SHORTER

CANDLE STICKS THIS MEANS THERE IS A DECREASE IN
VOLUME AND IF THERE WAS AN UP TREND BEFORE IT MEANS
THERE IS LOSS IN MOMENTUM.

* LARGER BEARISH CANDLES : LARGE BEARISH CANDLES

ALSO KNOWN AS ENGULFING CANDLES INDICATE THAT
BEARISH MOMENTUM HAS TAKEN CONTROL AND A DOWN
TREND CAN BE EXPECTED.

* MORE BEARISH CANDLES : THE MOST OBVIOUS INDICATION

WOULD BE MORE BEARISH CANDLES AS PRICE MOVES.
 BULLISH CANDLE STICK PATTERNS

BULLISH PIN BAR : THE CANDLE HAS A LONG WICK BELOW IT AND
COLOUR DOES NOT MATTER WITH THIS PATTERN. THIS CANDLE STICK
SHOWS US THAT WHEN THE CANDLE OPENED IT PUSHED DOWN BUT HAD
VERY WEAK BEARISH MOMENTUM AND SHOWS THAT THE BULLS
PUSHED PRICE TO CLOSE NEAR WHERE IT OPENED.
BULLISH ENGULFING CANDLE : ENGULFING CANDLE REFERS TO A
CANDLESTICK THAT FULLY ENGULFS THE PREVIOUS CANDLE. THIS
SHOWS THAT BULLS HAVE TAKEN FULL CONTROL AND COULD
POTENTIALLY START A UP TREND.

TWEEZER BOTTOM : THE TWEEZER BOTTOM IS A CANDLE STICK

PATTERN THAT SHOWS SIGNS OF REVERSAL AND LACK OF BEARISH
POWER , THIS PATTERN CONSIST OF ONE BEARISH CANDLE AND
ONE BULLISH CANDLE. THE CLOSING PRICE OF THE FIRST CANDLE
AND OPENING OF THE SECOND WILL REMAIN EQUAL WITHOUT A
BEARISH WICK BELOW THE SECOND OR FIRST CANDLE STICK.
HINTS THAT PRICE WILL RESPECT A SUPPORT LEVEL , HAS
BULLISH PRESSURE AND IS HEADED UP TREND.

* LONG WICKS BELOW THE CANDLE : CANDLE STICKS THAT HAVE LONG
WICKS BELOW THEM INDICATE THAT BEARS HAVE LOST THEIR
MOMENTUM AND THAT BULLISH PRESSURE IS PUSHING PRICE UP.

* SHORTER CANDLE STICKS : WHEN THERE ARE SHORTER CANDLE STICKS

THIS MEANS THERE IS A DECREASE IN VOLUME AND IF THERE WAS A
DOWN TREND BEFORE IT MEANS THERE IS LOSE IN MOMENTUM.

* LARGER BULLISH CANDLES : LARGE BULLISH CANDLES ALSO KNOWN AS

ENGULFING CANDLES INDICATE THAT BULLISH MOMENTUM HAS TAKEN
CONTROL AND A UP TREND CAN BE EXPECTED.
* MORE BULLISH CANDLES : THE MOST OBVIOUS INDICATION WOULD
BE MORE BULLISH CANDLES AS PRICE MOVES.

CONSOLIDATION CANDLE STICK PATTERNS

INSIDE BAR : CONSIST OF TWO CANDLE STICKS IN WHICH THE

SECOND CANDLESTICK IS ENGULFED BY THE FIRST. THIS INDICATES A
DECREASES IN VOLUME WHICH LEADS TO CONSOLIDATION.
 DOJI CANDLE : THIS PATTERN CONSIST OF ONE CANDLE THAT HAS A
SMALL BODY WITH A LARGE WICK ON EITHER SIDE INDICATING LACK
OF VOLUME AND INDECISION IN PRICE.

HINTS ON HOW TO SPOT CONSOLIDATION USING

CANDLESTICKS,

* LACK OF VOLUME : A LACK OF VOLUME MEANS THAT THERE IS LESS

PRICE MOVEMENT WHICH LEADS TO CONSOLIDATION

* LARGE WICKS ON BOTH SIDES OF THE CANDLE STICK : ALSO KNOWN AS

A DOJI CANDLE HAVING LARGE WICKS ON BOTH SIDES OF THE CANDLE
MEANS THAT BEARS AND BULLS ARE IN A BATTLE FOR THE NEXT
DIRECTIONAL MOVE.
 INDICATORS

TREND FOLLOWING INDICATORS :

TREND FOLLOWING INDICATORS WERE CREATED TO HELP TRADERS.

PREDICT WHAT TYPE OF TREND MARKETS ARE IN. THEY CAN WORK WELL
IN TRENDING MARKETS WHEN MAKING ENTRY DECISIONS AND WHERE
TO SET TAKE PROFIT AND STOP LOSS.

MOVING AVERAGE : MOVING AVERAGE IS AN INDICATOR THAT AVERAGES

A CURRENCY PAIRS PRICE OVER THE SPECIFIC TIME YOU CHOOSE FOR IT.
THE MOVING AVERAGE WILL DISPLAY A LINE ON THE GRAPH. THIS WILL
HELP PREDICT WHERE THE MARKET IS TRENDING WHETHER IT BE UNDER
THE CHART ( BULLISH ) OR ABOVE IT ( BEARISH ) THIS INDICATOR WILL BE
VERY USEFUL IN YOUR TRADING CAREER.
AVERAGE DIRECTIONAL MOVEMENT INDEX : THE ADX INDICATOR
HELPS TO PREDICT THE STREGTH OF A TREND AS WELL AS IF IT
BULLISH OR BEARISH. LIKE OTHER TREND FOLLOWING INDICATORS
IT STRUGGLES TO PRODUCE GOOD RESULTS IN CONSOLIDATING
MARKETS BUT DOES HELP TRADERS KNOW IF THERE IS BULLISH
MOMENTUM OR BEARISH MOMENTUM.
ICHIMOKU INDICATOR : THIS JAPANESE INDICATOR WAS DESIGNED
TO BE A ALL IN ONE INDICATOR DISPLAYING SUPPORT AND
RESISTANCE LEVELS AS WELL AS INDICATING WHEN TREND IS LIKELY
TO REVERSE.
PARABOLIC SAR : THIS INDICATOR WAS DESIGNED AS A STOP AND
REVERSE TREND FOLLOWING INDICATOR. IT ALLOWS TRADERS TO
IDENTIFY POSSIBLE TREND REVERSALS AND CAN ALSO HELP
TRADERS TRADE WITH THE CURRENT TREND.

MOVING AVERAGE CONVERGENCE/DIVERGENCE : THE MACD

INDICATOR USES 2 MOVING AVERAGES WITH A LOWER PERIOD
MOVING AVERAGE USED AS A SIGNAL LINE. THE MOST COMMON
WAY TO TRADE THE MACD IS TO BUY WHEN THE SIGNAL LINE IS
ABOVE THE MACD LINE AND TO SELL WHEN IT IS BELOW IT.
TRADING OSCILLATORS :

WHILE TREND FOLLOWING INDICATORS MAY HELP IDENTIFY TREND ,

TRADING OSCILLATORS HELP A TRADER IDENTIFY OVER BOUGHT AND
OVER SOLD MARKETS AND CAN WORK WELL IN CONSOLIDATING
MARKETS THAT DO NOT HAVE A CLEAR TREND.

RELATIVE STRENGTH INDEX : THE RSI INDICATOR USES A FORMULA THAT

HAS A RATIO OF THE AVERAGE GAIN AND AVERAGE LOSS OVER THE LAST
AMOUNT OF PERIODS YOU INPUT WHICH WILL BE 14 IF YOU USE THE
SUGGESTED AMOUNT. THIS ALLOWS TRADERS TO SEE IF MARKET IS OVER
SOLD OR OVER BOUGHT WHICH BOUND BETWEEN 0 AND 100. MOST
TRADERS FOCUS ON THE 30 LEVEL FOR OVER SOLD AND THE 70 LEVEL
FOR OVER BOUGHT. LATER ON YOU WILL SEE HOW THIS PLAYS A BIG ROLE
IN SOME STRATEGIES.
VOLATILITY INDICATORS :

VOLATILITY INDICATORS MEASURE THE AMOUNT OF VOLUME OR

MOVEMENT THERE IS IN A SPECIFIC CURRENCY AT A SPECIFIC TIME.
THESE PLAY A BIG ROLE IN WHERE TO PLACE YOUR STOP LOSS AND
IDENTIFYING MARKET CONSOLIDATION

AVERAGE TRUE RANGE : THE ATR INDICATOR HELPS TO IDENTIFY MARKET

VOLATILITY AND IS MOSTLY USED TO SET STOP LOSS. THIS INDICATOR IS
REPRESENTED IN PIPS AND CAN WORK WELL IN IDENTIFYING VOLATILE
MARKETS.
 FUNDAMENTALS

USING FUNDAMENTALS IN YOUR TRADING PROGRAM CAN HELP YOU

AVOID THINGS LIKE PRICE SPIKES AND PRICE GOING IN THE OPPOSITE
DIRECTION OF WHERE YOU PREDICTED IT WOULD GO. IT ALSO ALLOWS
YOU TO SEE WHAT CURRENCY IS CURRENTLY TRENDING AND THE REASON
FOR A CURRENCY RISING OR FALLING.

HERE ARE SOME COMPONENT TO LOOK AT ON NEWS EVENTS :

> ECONOMIC DATA: LOOKING AT THINGS LIKE THE UNEMPLOYMENT

RATE, GDP, INTEREST RATES AND INFLATION RATES.

> BANK DECISIONS : LOOKING AT THINGS LIKE RATES, HIKES AND

RATE CUTS.

> POLITICAL EVENTS : LOOKING AT THINGS LIKE ELECTIONS AND

STATE OF EMERGENCY EVENTS.

SETTING NEWS ALERTS :

AS YOU HAVE SEEN FROM THE BEGINNERS GUIDE. I USE

INVESTING.COM FOR A NEWS CALENDER TO SET ALERTS AND KEEP
UP TO DATE WITH THE CURRENT MARKETS.

SETTING UP INVESTING.COM

AFTER INSTALLING THE APPLICATION WE ARE GOING TO SET UP OUR

WATCH LIST. TO DO THIS YOUR GOING TO CLICK THE STAR WHICH
REPRESENTS WATCH LIST ON THE BOTTOM RIGHT CORNER.
WE ARE THEN GOING TO ADD THE CURRENCY PAIRS WE TRADE BY
CLICKING THE + ON THE TOP RIGHT CORNER.

ONCE WE HAVE ADDED THE CURRENCY PAIRS WE TRADE WE ARE

ABLE TO ACCESS THEM TO RECEIVE ANY NEWS RELATED TO THEM
AS WELL AS FUTURE PREDICTIONS.

WE ARE THEN GOING TO CLICK ON THE “MORE’’ BUTTON ON THE

BOTTOM RIGHT CORNER DISPLAYED WITH THREE VERTICAL LINES.

ONCE WE HAVE DONE THIS WE WILL HAVE A LIST OF ITEMS. WE ARE

GOING TO CLICK ON THE ONE THAT SAYS “CALENDER”

AFTER CLICKING ON THE CALENDER IT WILL DISPLAY A LIST OF NEWS

EVENTS. WE ARE NOW GOING TO FILTER THESE NEWS EVENTS. TO
DO THIS YOU WILL CLICK THE 3 VERTICAL LINES DISPLAYED IN THE
TOP RIGHT CORNER NEXT TO THE SEARCH TAB.

ONE YOU HAVE CLICKED THIS YOUR GOING TO TURN ON FILTERS

AND SELECT THE COUNTRIES YOU WANT TO RECEIVE NEWS FOR.
FOR EXAMPLE IF YOU TRADE USDJPY. YOU WILL CLICK JAPAN AND
UNITED STATES.

ONCE YOU HAVE FILTERED THE COUNTRIES YOU WANT TO RECEIVE

NEWS FOR YOU WILL THEN TICK ONLY THE HIGH IMPORTANCE
NEWS DISPLAYED AS “HIGH” AND SHOWN AS 3 BULLS. THIS ALLOWS
YOU TO RECEIVE ONLY THE MOST IMPORTANT NEWS.

SETTING NEWS ALERTS CAN BE DONE BY CLICKING ON THE EVENT

THAT WILL BE TAKING PLACE AND CLICKING THE BELL ICON WHERE
YOUR ABLE TO SET AN ALERT FOR A CONVENIENT TIME.

INVESTING.COM WILL TELL YOU HOW IT WILL AFFECT THE

CURRENCY IF YOU ARE UNSURE WHICH ALLOWS YOU TO BE ABLE TO
TRADE WITH THE FUNDAMENTALS OR TO AVOID THE PRICE SPIKES.
 BASIC CHART PATTERNS

HEAD AND SHOULDERS PATTERN :

THE HEAD AND SHOULDERS IS A BEARISH REVERSAL PATTERN THAT

INDICATES THE END OF A UP TREND AND THE FORMATION OF A DOWN
TREND. AS THE NAME INDICATES THE HEAD AND SHOULDERS PATTERN
FORMS 3 PEAKS WITH THE MIDDLE BEING THE HIGHEST AND THE 2
OUTER BEING SIMILAR IN LENGTH.

INVERSE HEAD AND SHOULDERS PATTERN :

THE INVERSE HEAD AND SHOULDERS PATTERN IS A BULLISH REVERSAL

PATTERN THAT FORMS THE SAME STRUCTURE AS A HEAD AND
SHOULDERS PATTERN FLIPPED AROUND. THE INVERSE HEAD AND
SHOULDERS PATTERN WILL FOLLOW THE SAME PROCEDURE AS THE HEAD
AND SHOULDERS PATTERN WHICH REQUIRES NO EXPLANATION.
DOUBLE TOP :

THE BEARISH DOUBLE TOP LIKE THE HEAD AND SHOULDERS PATTERN IS A
REVERSAL BEARISH PATTERN THAT INDICATES THE END OF AN UP TREND
AND THE START OF A DOWN TREND THIS PATTERN HAS SIMILAR PEAKS
THAT RESPECT THE SAME SUPPORT LEVEL. ONCE THIS LEVEL IS BROKEN
WHICH SHOULD BE ON THE SECOND PEAK YOU CAN START LOOKING AT
PLACING SHORT POSITIONS.
 DOUBLE BOTTOM :

THE DOUBLE BOTTOM CARRIES THE SAME ROLES AS THE DOUBLE TOP
BUT IS A BULLISH REVERSAL PATTERN AND INDICATES THE END OF THE
DOWN TREND. THIS PATTERN WILL HAVE THE SAME STRUCTURE AS THE
DOUBLE TOP AND REQUIRES NO EXPLANATION.

BEARISH RISING WEDGE :

THE BEARISH RISING WEDGE SHOWS THE DECREASE IN BULLISH

MOMENTUM WHICH IS THE REASON WHY THE UP TREND BECOMES
SMALLER FORMING A WEDGE. ONCE PRICE BREAKS THROUGH THE
WEDGE PRICE WILL MOVE DOWN FORMING THE BEARISH WEDGE.
BULLISH FALLING WEDGE :

THE BULLISH FALLING WEDGE SHOWS THE DECREASE OF BEARISH

MOMENTUM AND THE REVERSAL OF THE CURRENT DOWN TREND. THE
BULLISH FALLING WEDGE USES THE SAME STRUCTURE AS THE BEARISH
RISING WEDGE.
BULLISH PENNANT :

THE BULLISH PENNANT PATTERN IS A CONTINUATION PATTERN WHICH

INDICATES A RETRACEMENT IN THE UP TREND WITH STRONG BEARISH
MOMENTUM BUT COULD NOT BREAK THE UP TREND. IT FOLLOWS TWO
TREND LINES THAT SLOWLY CLOSE TOGETHER BEFORE PRICE FINALLY
BREAKS TO THE UP SIDE AND CONTINUES UP TREND.

BEARISH PENNANT :

THE BEARISH PENNANT PATTERN IS A CONTINUATION PATTERN OF THE

DOWN TREND. IT INDICATES THE BREAK OF BULLISH RETRACEMENT. THE
BEARISH PENNANT FOLLOWS THE SAME RULES AS THE BULLISH
PENNANT.
SYMMETRICAL TRIANGLE :

THE SYMMETRICAL TRIANGLE DESCRIBES INDECISION IN PRICE AND CAN

BE BULLISH OR BEARISH DEPENDING ON WHICH TREND LINE PRICE HAS
BROKEN. THE STRUCTURE IS REPRESENTED BY TWO TREND LINES THAT
APPEAR AS MOVING TOWARDS EACH OTHER. WE ENTER ON THE BREAK
AND CLOSE.
ASCENDING TRIANGLE :

THE ASCENDING TRIANGLE IS CREATED WHEN THERE IS AN UP TREND

THAT MEETS A RESISTANCE AREA. PRICE WILL CONTINUE TO TEST THE
RESISTANCE LEVEL UNTIL EVENTUALLY IT HAS BROKEN THAT LEVEL WHICH
CAN BE SEEN AS AN ASCENDING TRIANGLE.

DESCENDING TRIANGLE :

THE DESCENDING TRIANGLE HAS THE SAME STRUCTURE BUT IS A

BEARISH CONTINUATION PATTERN. PRICE CONTINUES TO TEST SUPPORT
BEFORE FINALLY BREAKING THROUGH THE DESCENDING TRIANGLE.
 ADVANCED PATTERNS

ADVANCED PATTERNS USE FIBONACCI RATIO ALIGNMENTS THAT

QUANTIFY AND VALIDATE ADVANCED PATTERNS. ADVANCED PATTERNS
LIKE BAT FORMATIONS CALCULATE HIGH PROBABLE REVERSAL POINTS IN
PRICE.

BAT PATTERN :

THE BAT PATTERN IS A FIVE POINT CHART PATTERN THAT PREDICT

MARKET REVERSAL. THIS PATTERN LIKE OTHER ADVANCED PATTERNS RELY
ON FIBONACCI LEVELS.

STRUCTURE

X TO A : ALSO KNOWN AS THE IMPULSIVE LEG. THIS POINT USUALLY

SHOWS A HIGH AMOUNT OF VOLUME WITH LARGE MOVEMENT. IT
SHOULD PRODUCE LONG CONSECUTIVE BULLISH CANDLES FOR A BULLISH
BAT PATTERN AND LONG CONSECUTIVE BEARISH CANDLES FOR A BEARISH
BAT PATTERN.

A TO B : THE A TO B LINE CAN BE SEEN AS A RETRACEMENT OF PRICE. THE

RETRACEMENT LEVEL SHOULD REACH BETWEEN 50% TO 61.8%
FIBONACCI RETRACEMENT LEVEL OF THE LINE XA. HAVING WICKS
SURPASS THE 61.8% LEVEL MAKE THE BAT PATTERN NO LONGER VALID
BUT IF THE WICKS EXTEND OUTSIDE THE 61.8% LEVEL WILL NOT BE
CLASSIFIED AS A BAT PATTERN.

B TO C : THE B TO C LINE SHOULD CONTINUE TO PUSH PRICE UP TO POINT

A BUT NOT SURPASS IT. THE LINE BC SHOULD INCLINE PAST 0.382 BUT
SHOULD NOT SURPASS 0 OF THE FIBONACCI RETRACEMENT LEVEL OF
LINE XA.
C TO D : THE LINE C TO D SHOULD RETRACE 88% OF LINE AX ON THE
FIBONACCI RETRACEMENT LEVEL.
BUTTERFLY PATTERN :

THE BUTTERFLY PATTERN IS A ADVANCED REVERSAL PATTERN SIMILAR TO

THE BAT PATTERN IN TERMS OF STRUCTURE AND IDENTIFIES EXTREME
HIGHS AND LOWS IN PRICE. THIS PATTERN HAS BEEN KNOWN TO BE
HIGHLY ACCURATE HOWEVER ITS ONE OF THE HARDEST OF THESE
PATTERNS TO SPOT.

STRUCTURE

X TO A : JUST LIKE THE BAT PATTERN THE BUTTERFLY PATTERN HAS A

STRONG IMPULSIVE LEG THAT SHOWS LARGE AMOUNT OF VOLUME.

A TO B : THE AB LINE WILL BE THE RETRACEMENT OF THE XA LINE AND

SHOULD REACH THE 0.786 LEVEL

B TO C : THE BC LINE SHOULD CONTINUE BETWEEN THE 0.5 LEVEL AND

THE 0.1 LEVEL OF XA FIBONACCI RETRACEMENT. IF PRICE CREATES A WICK
ABOVE THE 0.1 LEVEL THE BUTTERFLY PATTERN IS NO LONGER VALID.

C TO D : THE CD LINE SHOULD RETRACE TO THE X POINT OR 1 ON THE

FIBONACCI RETRACEMENT OF XA.
CRAB PATTERN :

THE CRAB PATTERN LIKE OTHER ADVANCED PATTERNS

IDENTIFIES EXTREME LOWS AND EXTREME HIGHS. THE CRAB
PATTERN SHARES SIMILAR FIBONACCI LEVELS TO THE
BUTTERFLY PATTERN BUT HAS A DEEPER CD LINE.
STRUCTURE

X TO A : THE XA IS THE IMPULSIVE LEG LIKE OTHER ADVANCED PATTERNS

IT REQUIRES A LARGE AMOUNT OF BULLISH/BEARISH MOMENTUM.

A TO B : THE AB LINE SHOULD RETRACE DOWN BETWEEN 0.382 AND

0.618 OF THE FIBONACCI RETRACEMENT OF LINE XA

B TO C : THE BC LINE MOVES BACK IN THE DIRECTION OF XA BUT MOVES

BETWEEN THE 0.382 AND 0.1 OF THE FIBONACCI RETRACEMENT OF LINE
XA.

C TO D : THE CD LINE SHOULD THEN RETRACE TO 1.618 FIBONACCI

EXTENSION OF LINE XA. WHERE YOU WOULD PLACE AN ENTRY.
 STRATEGIES

TRADING TREND LINES :

RULES FOR DRAWING A TREND LINE :

> LOOK FOR A DOWN TREND OR UP TREND WITH A FEW RETRACEMENTS.

YOU CAN USE ANY OF THE TREND FOLLOWING INDICATORS TO HELP YOU
IDENTIFY THE TREND YOUR IN.

> ONCE YOU HAVE FOUND A UP TREND OR DOWN TREND YOU CAN NOW
DRAW UP YOUR TREND LINE. IT SHOULD BE RESPECTED ATLEAST 3 TIMES.
TO CONFIRM THAT IT HAS RESPECTED YOUR TREND THERE SHOULD BE A
PULL BACK OR PUSH FORWARD ONCE PRICE REACHES THE TREND LINE. IT
IS ALLOWED TO WICK OUTSIDE THE TREND LINE.

> ONCE YOU HAVE DRAWN YOUR TREND LINE/S YOUR GOING TO BE
LOOKING FOR A RESPECT IN THE TREND LINE OR A BREAK AND CLOSE OF
THE TREND LINE.

> YOU CAN USE THE CANDLE STICK PATTERNS TO IDENTIFY IF IT WILL
RESPECT YOUR TREND LINE OR NOT.

> IF PRICE DOES BREAK AND CLOSE OUTSIDE YOUR TREND LINE THERE
ARE TWO WAYS IN WHICH YOU CAN PLACE A TRADE.

> AGGRESSIVE TRADERS :

PLACE YOUR ENTRY AT THE CLOSE OF THE CANDLE THAT BROKE OUTSIDE
YOUR TREND LINE.
YOUR STOP LOSS CAN BE SET AT THE UPPER WICK OF THE CANDLE IF
IT A BREAK IN A UP TREND LINE OR SET AT THE LOWER WICK IF IT
WAS A BREAK IN A DOWN TREND LINE.
YOUR STOP LOSS CAN ALSO BE SET USING THE ATR INDICATOR.

YOUR TAKE PROFIT CAN BE SET AT A 1:2 RISK TO REWARD RATIO

YOUR SECOND TAKE PROFIT CAN BE SET AT A 1:3 RISK TO REWARD
RATIO.
THE LAST TAKE PROFIT IS OPTIONAL AND CAN BE SET ANYWHERE
BETWEEN 1:5 AND 1:10 RISK TO REWARD RATIO. REMEMBER TO
FOLLOW THE RULES OF USING MULTIPLE TAKE PROFITS.

> SAFE TRADERS :

YOUR ENTRY CAN BE PLACED AT THE NEXT RETRACEMENT OUTSIDE

YOUR TREND LINE. IN ORDER TO FIND THE HIGHEST POINT OF THE
RETRACEMENT. YOU CAN USE THE FIBONACCI LEVELS OR SUPPORT
AND RESISTANCE.

YOUR STOP LOSS CAN BE SET USING THE ATR INDICATOR.

YOUR TAKE PROFIT CAN BE SET AT A 1:2 RISK TO REWARD RATIO.

YOUR SECOND TAKE PROFIT CAN BE SET AT A 1:3 RISK TO REWARD.
 TRADING SUPPORT AND RESISTANCE

RULES FOR TRADING SUPPORT AND RESISTANCE :

> FIND YOUR SUPPORT AND RESISTANCE USING THE DAILY TIME
FRAME. OR USING THE 30 MINUTE TIME FRAME IF YOU WANT TO
SCALP ON THE 5 MINUTE TIME FRAME.

> YOUR SUPPORT/ RESISTANCE SHOULD BE RESPECTED ATLEAST 2

TIMES. WICKS ARE ALLOWED TO FORM OUTSIDE YOUR SUPPORT OR
RESISTANCE BUT CANNOT CLOSE OUTSIDE YOUR SUPPORT OR
RESISTANCE.

> YOUR SUPPORT OR RESISTANCE SHOULD BE SHOWN IN A

RECTANGLE AS SUPPORT AND RESISTANCE ARE SUPPLY/ DEMAND
ZONES.

> ONCE YOU HAVE DRAWN UP YOUR SUPPORT OR RESISTANCE ON

THE DAILY TIME FRAME. YOUR GOING TO MOVE TO THE 30 MINUTE
TIME FRAME.

> YOUR NOW GOING TO BE LOOKING FOR A BREAK OR RESPECT OF

YOUR SUPPORT/ RESISTANCE ZONE. HERE ARE MY STRATEGIES TO
DETERMINE IF IT WILL RESPECT OR BREAK YOUR STRUCTURE.

> RESISTANCE

1. USING THE CANDLE STICK PATTERN METHOD.

FOR THIS METHOD YOUR GOING TO USE A CHECK LIST.

{} AT LEAST 3 BULLISH CANDLES WITH LARGE BODIES MOVING

TOWARDS YOUR RESISTANCE ZONE.
 {} BULLISH AND BEARISH CANDLES WITH SMALL BODIES
MOSTLY SPOTTED AFTER PRICE MOVES INTO YOUR
RESISTANCE ZONE.

{} THERE SHOULD THEN BE BEARISH OR BULLISH CANDLES

WITH LARGE WICKS ABOVE THEM WITH SMALL OR NO WICKS
BELOW IT. THESE WILL MOSTLY BE SPOTTED INSIDE YOUR
RESISTANCE AREA. THESE DO NOT MEAN THAT PRICE HAS
REACHED ITS MAXIMUM HIGH POINT HOWEVER THEY INDICATE
A STRONG BEARISH MOMENTUM.

{} THE LAST CHECKLIST WILL BE A LARGE BEARISH CANDLE.

THE BEARISH CANDLE SHOULD HAVE ATLEAST 20 PIPS
WITHIN THE BODY OF THE CANDLE. THIS IS THE BEARISH
BREAKOUT AND WILL MOSTLY CONSIST OUT SIDE YOUR
RESISTANCE ZONE.

ENTRY : YOUR ENTRY WILL BE SET AT THE CLOSE OF THE LARGE BEARISH
CANDLE.

STOP LOSS : YOUR STOP LOSS SHOULD BE SET AT THE UPPER WICK OF THE
LARGE BEARISH CANDLE

TAKE PROFIT : YOUR TAKE PROFIT CAN BE SET AT A RISK TO REWARD OF

1:2. YOUR SECOND TAKE PROFIT CAN BE SET AT A 1:3 RISK TO REWARD.
YOUR LAST TAKE PROFIT CAN BE SET AT A 1:10 RISK TO REWARD. YOU
CAN ALSO ADD A FOURTH TAKE PROFIT AT THE RESISTANCE LEVEL ON THE
DAILY TIME FRAME WHICH IS OPTIONAL.

2. TRADING STRATEGIES AS CONFIRMATION FOR SUPPORT AND

RESISTANCE.

ALL STRATEGIES INCLUDING TREND LINES AND VARIOUS CHART PATTERNS

CAN BE USED IN ORDER TO IDENTIFY WHETHER PRICE WILL RESPECT THE
SUPPORT OR RESISTANCE ZONE. EACH STRATEGY WILL BE TRADED WITH
THE SAME RULES HOWEVER STOP LOSS AND TAKE PROFIT WILL BE SET
DIFFERENTLY.

STOP LOSS : YOUR STOP LOSS CAN BE SET AT THE HIGHEST POINT OF
YOUR RESISTANCE OR LOWEST POINT OF YOUR SUPPORT.

TAKE PROFIT : YOUR TAKE PROFIT CAN BE SET AT THE LOWER SUPPORT
LEVEL IF YOUR TRADING A RESPECTED RESISTANCE AREA OR YOUR TAKE
PROFIT CAN BE SET AT THE HIGHER RESISTANCE IF YOUR TRADING A
RESPECTED SUPPORT AREA.

3. USING INDICATORS TO DETERMINE IF PRICE WILL RESPECT A

RESISTANCE LEVEL

WHEN PRICE REACHES THE RESISTANCE LEVEL WE CAN USE INDICATORS

LIKE :

PARABOLIC SAR : DOTS SHOULD FORM ABOVE PRICE WHEN PRICE

REACHES RESISTANCE LEVEL

MOVING AVERAGE : THE 200 MOVING AVERAGE CAN BE USED BUT MAY
NOT ALWAYS SHOW REVERSAL UNTIL AFTER PRICE HAS REVERSED

AVERAGE DIRECTIONAL MOVEMENT INDEX : BEARISH LINE SHOULD

BEGIN TO MOVE UP WHILE THE BULLISH LINE RAPIDLY FALLS

MOVING AVERAGE CONVERGENCE DIVERGENCE : SIGNAL LINE SHOULD

BEGIN TO FALL BELOW THE MACD LINE

RELATIVE STRENGTH INDEX : THE RSI LINE SHOULD BE ABOVE 70 WHILE

PRICE IS IN YOUR RESISTANCE LEVEL
 > SUPPORT

1. USING THE CANDLE STICK PATTERN METHOD.

FOR THIS METHOD YOUR GOING TO USE A CHECK LIST.

{} AT LEAST 3 BEARISH CANDLES WITH LARGE BODIES MOVING

TOWARDS YOUR SUPPORT ZONE.

{} BULLISH AND BEARISH CANDLES WITH SMALL BODIES

MOSTLY SPOTTED AFTER PRICE MOVES INTO YOUR
SUPPORT ZONE.

{} THERE SHOULD THEN BE BEARISH OR BULLISH CANDLES

WITH LARGE WICKS BELOW THEM WITH SMALL OR NO WICKS
ABOVE IT. THESE WILL MOSTLY BE SPOTTED INSIDE YOUR
SUPPORT AREA. THESE DO NOT MEAN THAT PRICE HAS
REACHED ITS MAXIMUM LOW POINT HOWEVER THEY INDICATE
A STRONG BULLISH MOMENTUM.

{} THE LAST CHECKLIST WILL BE A LARGE BULLISH CANDLE.

THE BULLISH CANDLE SHOULD HAVE ATLEAST 20 PIPS
WITHIN THE BODY OF THE CANDLE. THIS IS THE BULLISH
BREAKOUT AND WILL MOSTLY CONSIST OUT SIDE YOUR
SUPPORT ZONE.

ENTRY : YOUR ENTRY WILL BE SET AT THE CLOSE OF THE LARGE BULLISH
CANDLE.

STOP LOSS : YOUR STOP LOSS SHOULD BE SET AT THE LOWER WICK OF
THE LARGE BULLISH CANDLE
TAKE PROFIT : YOUR TAKE PROFIT CAN BE SET AT A RISK TO REWARD OF
1:2. YOUR SECOND TAKE PROFIT CAN BE SET AT A 1:3 RISK TO REWARD.
YOUR LAST TAKE PROFIT CAN BE SET AT A 1:10 RISK TO REWARD. YOU
CAN ALSO ADD A FOURTH TAKE PROFIT AT THE RESISTANCE LEVEL ON THE
DAILY TIME FRAME WHICH IS OPTIONAL.

2. TRADING STRATEGIES AS CONFIRMATION FOR SUPPORT AND

RESISTANCE.

ALL STRATEGIES INCLUDING TREND LINES AND VARIOUS CHART PATTERNS

CAN BE USED IN ORDER TO IDENTIFY WHETHER PRICE WILL RESPECT THE
SUPPORT OR RESISTANCE ZONE. EACH STRATEGY WILL BE TRADED WITH
THE SAME RULES HOWEVER STOP LOSS AND TAKE PROFIT WILL BE SET
DIFFERENTLY.

STOP LOSS : YOUR STOP LOSS CAN BE SET AT THE LOWEST POINT OF YOUR
SUPPORT

TAKE PROFIT : YOUR TAKE PROFIT CAN BE SET AT THE HIGHER RESISTANCE
WHEN YOUR TRADING A RESPECTED SUPPORT AREA.

3. USING INDICATORS TO DETERMINE IF PRICE WILL RESPECT A

SUPPORT LEVEL

WHEN PRICE REACHES THE RESISTANCE LEVEL WE CAN USE INDICATORS

LIKE :

PARABOLIC SAR : DOTS SHOULD FORM BELOW PRICE WHEN PRICE

REACHES SUPPORT LEVEL

MOVING AVERAGE : THE 200 MOVING AVERAGE CAN BE USED BUT MAY
NOT ALWAYS SHOW REVERSAL UNTIL AFTER PRICE HAS REVERSED

AVERAGE DIRECTIONAL MOVEMENT INDEX : BULLISH LINE SHOULD

BEGIN TO MOVE UP WHILE THE BEARISH LINE RAPIDLY FALLS
MOVING AVERAGE CONVERGENCE DIVERGENCE : SIGNAL LINE SHOULD
BEGIN TO MOVE ABOVE THE MACD LINE

RELATIVE STRENGTH INDEX : THE RSI LINE SHOULD BE BELOW 30 WHILE

PRICE IS IN YOUR SUPPORT LEVEL
 TRADING HEAD AND SHOULDERS

RULES FOR TRADING HEAD AND SHOULDERS PATTERN :

> HEAD AND SHOULDER PATTERNS ARE USUALLY SPOTTED AT

BULLISH REVERSAL AREAS. THE EASIEST WAY TO SPOT THEM IS BY
DRAWING TREND LINES BETWEEN THE HIGHS AND LOWS OF PRICE.

> AFTER IDENTIFYING THE HEAD AND SHOULDERS PATTERN YOUR

GOING TO DRAW A SUPPORT AREA USING THE RECTANGLE AT THE
NECKLINE.

> YOUR ALSO GOING TO DRAW UP A RESISTANCE USING A

RECTANGLE AT THE TOP OF THE LEFT SHOULDER AND EXTEND IT
THROUGH THE HEAD OF THE HEAD AND SHOULDERS PATTERN.

> TO CONFIRM THE HEAD AND SHOULDERS PATTERN THE RIGHT

SHOULDER SHOULD REACH THE SUPPORT LEVEL BY ATLEAST
CREATING A WICK INSIDE THE RECTANGLE. IF PRICE BREAKS AND
CLOSES BELOW THE RECTANGLE THE HEAD AND SHOULDERS
PATTERN BECOMES INVALID.

> THE RIGHT SHOULDER SHOULD NOT BREAK THE RESISTANCE LEVEL
ABOVE IT. IT IS ALLOWED TO CREATE A WICK INSIDE OR ABOVE BUT
CANNOT BREAK AND CLOSE ABOVE THE RESISTANCE.

> IF PRICE CONFIRMS ALL THE PREVIOUS STEPS THERE ARE TWO
WAYS TO PLACE A ENTRY :

> AGGRESSIVE TRADERS :

PLACE YOUR ENTRY AT THE BREAK AND CLOSE BELOW THE
NECKLINE
YOUR STOP LOSS CAN BE SET USING THE ATR INDICATOR OR CAN BE
PLACED AT THE UPPER WICK OF THE LARGE BEARISH CANDLE THAT
BROKE THE NECK LINE OF THE HEAD AND SHOULDERS PATTERN.

YOUR TAKE PROFIT CAN BE SET AT A RISK TO REWARD RATIO OF 1:2.

YOUR SECOND TAKE PROFIT CAN BE SET AT A 1:3 RISK TO REWARD
RATIO.

> SAFE TRADERS :

PLACE YOUR ENTRY AT THE NECKLINE AFTER PRICE BREAKS AND
RETEST THE PREVIOUS SUPPORT LEVEL OR IN THIS CASE THE
NECKLINE.

YOUR STOP LOSS CAN BE PLACED USING THE ATR INDICATOR.

YOUR TAKE PROFIT CAN BE PLACED USING A 1:2 RISK TO REWARD

RATIO.
YOUR SECOND TAKE PROFIT CAN BE SET AT 1:3 RISK TO REWARD
RATIO.
 TRADING INVERSE HEAD AND SHOULDERS PATTERN

RULES FOR TRADING THE INVERSE HEAD AND SHOULDERS PATTERN :

> THE INVERSE HEAD AND SHOULDER PATTERNS ARE USUALLY

SPOTTED AT BEARISH REVERSAL AREAS.THE EASIEST WAY TO SPOT
THEM IS BY DRAWING TREND LINES BETWEEN THE HIGHS AND
LOWS OF PRICE.

> AFTER IDENTIFYING THE INVERSE HEAD AND SHOULDERS PATTERN

YOUR GOING TO DRAW A RESISTANCE AREA USING THE RECTANGLE
AT THE NECKLINE OF THE PATTERN.

> JUST LIKE THE HEAD AND SHOULDERS PATTERN. YOUR ALSO
GOING TO DRAW UP A RESISTANCE USING A RECTANGLE AT THE
BOTTOM OF THE LEFT SHOULDER AND EXTEND IT THROUGH THE
HEAD OF THE INVERSE HEAD AND SHOULDERS PATTERN.

> TO CONFIRM THE INVERSE HEAD AND SHOULDERS PATTERN THE

RIGHT SHOULDER SHOULD REACH THE SUPPORT LEVEL BY ATLEAST
CREATING A WICK INSIDE THE RECTANGLE. IF PRICE BREAKS AND
CLOSES ABOVE THE RECTANGLE THE INVERSE HEAD AND
SHOULDERS PATTERN WILL BE INVALID.

> THE RIGHT SHOULDER SHOULD NOT BREAK THE SUPPORT LEVEL
BELOW IT. IT IS ALLOWED TO CREATE A WICK INSIDE OR BELOW BUT
CANNOT BREAK AND CLOSE BELOW THE SUPPORT

>.IF PRICE CONFIRMS ALL THE PREVIOUS STEPS THERE ARE TWO
WAYS TO PLACE A ENTRY :

> AGGRESSIVE TRADERS :

PLACE YOUR ENTRY AT THE BREAK AND CLOSE ABOVE THE NECKLINE
YOUR STOP LOSS CAN BE SET USING THE ATR INDICATOR OR CAN BE
PLACED AT THE LOWER WICK OF THE LARGE BULLISH CANDLE THAT
BROKE THE NECK LINE OF THE HEAD AND SHOULDERS PATTERN.

YOUR TAKE PROFIT CAN BE SET AT A RISK TO REWARD RATIO OF 1:2.

YOUR SECOND TAKE PROFIT CAN BE SET AT A 1:3 RISK TO REWARD
RATIO.

> SAFE TRADERS :

PLACE YOUR ENTRY AT THE NECKLINE AFTER PRICE BREAKS AND
RETEST THE PREVIOUS RESISTANCE LEVEL OR IN THIS CASE THE
NECKLINE.

YOUR STOP LOSS CAN BE PLACED USING THE ATR INDICATOR.

YOUR TAKE PROFIT CAN BE PLACED USING A 1:2 RISK TO REWARD

RATIO.
YOUR SECOND TAKE PROFIT CAN BE SET AT 1:3 RISK TO REWARD
RATIO.
 TRADING THE DOUBLE TOP PATTERN

RULES FOR TRADING THE DOUBLE TOP PATTERN :

> THE DOUBLE TOP IS IDENTIFIED AS A ‘M’ LIKE STRUCTURE

USUALLY FOUND AT THE END OF AN UP TREND.

> AFTER IDENTIFYING THE FIRST PEAK YOU WILL DRAW UP A

RESISTANCE ABOVE IT AND A SUPPORT/ NECK LINE AT THE BOTTOM
OF THE PEAK.

> THE SECOND PEAK SHOULD NOT BREAK AND CLOSE ABOVE
RESISTANCE HOWEVER IT IS ALLOWED TO CREATE A WICK ABOVE
THE RESISTANCE.

> PRICE SHOULD THEN COME BACK TO THE NECKLINE WITH LARGE
BEARISH MOMENTUM.

> THERE ARE 2 WAYS TO PLACE A ENTRY :

> AGGRESSIVE TRADERS :

YOUR ENTRY CAN BE PLACED AFTER PRICE BREAKS AND CLOSES
BELOW THE NECK LINE.

YOUR STOP LOSS CAN BE SET USING THE ATR OR CAN BE SET AT THE
UPPER WICK OF THE LARGE BEARISH CANDLE THAT BROKE THE
NECK LINE

YOUR TAKE PROFIT CAN BE SET AT A RISK TO REWARD OF 1:2

YOUR SECOND TAKE PROFIT CAN BE SET AT A RISK TO REWARD OF
1:3.

> SAFE TRADERS :

YOUR ENTRY CAN BE SET AT THE NECK LINE AFTER PRICE RETEST
THE NECK LINE AS RESISTANCE

YOUR STOP LOSS CAN BE SET USING THE ATR INDICATOR

YOUR TAKE PROFIT CAN BE SET USING A 1:2 RISK TO REWARD RATIO
YOUR SECOND TAKE PROFIT CAN BE SET USING A 1:3 RISK TO
REWARD RATIO
 TRADING THE DOUBLE BOTTOM PATTERN

RULES FOR TRADING THE DOUBLE BOTTOM PATTERN :

> THE DOUBLE BOTTOM PATTERN IS IDENTIFIED AS A ‘W’ LIKE

STRUCTURE USUALLY FOUND AT THE END OF AN DOWN TREND.

> AFTER IDENTIFYING THE FIRST LOW YOU WILL DRAW UP A

SUPPORT BELOW IT AND A RESISTANCE/ NECK LINE AT THE TOP OF
THE LOW.

> THE SECOND LOW SHOULD NOT BREAK AND CLOSE BELOW THE
SUPPORT BUT IT IS ALLOWED TO CREATE A WICK BELOW THE
SUPPORT.

> PRICE SHOULD THEN COME BACK TO THE NECKLINE WITH LARGE
BULLISH MOMENTUM.

> THERE ARE 2 WAYS TO PLACE A ENTRY :

> AGGRESSIVE TRADERS :

YOUR ENTRY CAN BE PLACED AFTER PRICE BREAKS AND CLOSES
ABOVE THE NECK LINE.

YOUR STOP LOSS CAN BE SET USING THE ATR OR CAN BE SET AT THE
LOWER WICK OF THE LARGE BULLISH CANDLE THAT BROKE THE
NECK LINE

YOUR TAKE PROFIT CAN BE SET AT A RISK TO REWARD OF 1:2

YOUR SECOND TAKE PROFIT CAN BE SET AT A RISK TO REWARD OF
1:3.

> SAFE TRADERS :

YOUR ENTRY CAN BE SET AT THE NECK LINE AFTER PRICE RETEST
THE NECK LINE AS SUPPORT

YOUR STOP LOSS CAN BE SET USING THE ATR INDICATOR

YOUR TAKE PROFIT CAN BE SET USING A 1:2 RISK TO REWARD RATIO
YOUR SECOND TAKE PROFIT CAN BE SET USING A 1:3 RISK TO
REWARD RATIO
 TRADING THE BEARISH RISING WEDGE

RULES FOR TRADING THE BEARISH RISING WEDGE :

> AS THE NAME INDICATES THE BEARISH RISING WEDGE TAKES THE
SHAPE OF A WEDGE. IT FOLLOWS THE SAME RULES AS THE TREND
LINE STRATEGY HOWEVER PRICE RESPECTS TWO TREND LINES THAT
SLOWLY MEET AT ONE POINT.

> WHEN TRADING THE BEARISH RISING WEDGE PRICE SHOULD

RESPECT BOTH TREND LINES ATLEAST 2 TIMES BEFORE THERE IS A
BREAK THROUGH TO THE DOWNSIDE.

> WHEN TRADING THE BEARISH RISING WEDGE PATTERN YOUR

ENTRY SHOULD BE ON THE BREAK AND CLOSE OF THE FIRST
BEARISH CANDLE.

> YOUR STOP LOSS CAN BE SET AT THE UPPER WICK ON THE
BEARISH CANDLE THAT BROKE AND CLOSE OUTSIDE THE BEARISH
RISING WEDGE PATTERN OR CAN BE SET USING THE ATR INDICATOR.

> YOUR TAKE PROFIT SHOULD BE SET USING A 1:2 RISK TO REWARD
RATIO

> YOUR SECOND TAKE PROFIT CAN BE SET USING A 1:3 RISK TO
REWARD RATIO.
 TRADING THE BULLISH FALLING WEDGE

RULES FOR TRADING THE BULLISH FALLING WEDGE :

> JUST LIKE THE BEARISH RISING WEDGE THE BULLISH FALLING
WEDGE FOLLOWS THE SAME RULES AS IT RESPECTS TWO TREND
LINES THAT SLOWLY MEET WITH BULLISH BREAK OUT.

> WHEN TRADING THE BULLISH FALLING WEDGE PRICE SHOULD

RESPECT BOTH TREND LINES MORE THAN 2 TIMES BEFORE THERE IS
A BREAK THROUGH TO THE UPSIDE.

> WHEN TRADING THE BULLISH FALLING WEDGE PATTERN YOUR

ENTRY SHOULD BE ON THE BREAK AND CLOSE OF THE FIRST BULLISH
CANDLE.

> YOUR STOP LOSS CAN BE SET AT THE LOWER WICK ON THE
BULLISH CANDLE THAT BROKE AND CLOSE OUTSIDE THE BULLISH
FALLING WEDGE PATTERN OR CAN BE SET USING THE ATR
INDICATOR.

> YOUR TAKE PROFIT SHOULD BE SET USING A 1:2 RISK TO REWARD
RATIO

> YOUR SECOND TAKE PROFIT CAN BE SET USING A 1:3 RISK TO
REWARD RATIO.
 TRADING THE BULLISH PENNANT

RULES FOR TRADING THE BULLISH PENNANT :

> THE BULLISH PENNANT WORKS THE EXACT SAME AS THE BEARISH
RISING WEDGE HOWEVER INSTEAD OF HAVING A BEARISH
BREAKOUT IT IS A TREND CONTINUATION PATTERN WITH THE
TREND LINES MOVING MORE AGGRESSIVELY TOWARDS EACH OTHER
AND WILL HAVE A BULLISH BREAK OUT.

> THE BULLISH PENNANT SHOULD CONTAIN TWO TREND LINES THAT
ARE BOTH EQUALLY RESPECTED UNTIL THERE IS A BULLISH BREAK
OUT.

> YOUR ENTRY SHOULD BE ON THE BREAK AND CLOSE OF THE FIRST
BULLISH CANDLE.

> YOUR STOP LOSS CAN BE SET AT THE LOWER WICK ON THE
BULLISH CANDLE THAT BROKE AND CLOSE OUTSIDE THE BULLISH
PENNANT PATTERN OR CAN BE SET USING THE ATR INDICATOR.

> YOUR TAKE PROFIT CAN BE SET WITH A RISK TO REWARD RATIO OF
1:2

> YOUR SECOND TAKE PROFIT CAN BE SET WITH A RISK TO REWARD
RATIO OF 1:3
 TRADING THE BEARISH PENNANT

RULES FOR TRADING THE BEARISH PENNANT :

> THE BEARISH PENNANT WORKS THE EXACT SAME AS THE BULLISH
FALLING WEDGE HOWEVER INSTEAD OF HAVING A BULLISH
BREAKOUT IT IS A TREND CONTINUATION PATTERN AND WILL HAVE
A BEARISH BREAK OUT.

> THE BEARISH PENNANT SHOULD CONTAIN TWO TREND LINES

THAT ARE BOTH EQUALLY RESPECTED UNTIL THERE IS A BEARISH
BREAK OUT.

> YOUR ENTRY SHOULD BE ON THE BREAK AND CLOSE OF THE FIRST
BEARISH CANDLE.

> YOUR STOP LOSS CAN BE SET AT THE LOWER WICK ON THE
BEARISH CANDLE THAT BROKE AND CLOSE OUTSIDE THE BEARISH
PENNANT PATTERN OR CAN BE SET USING THE ATR INDICATOR.

> YOUR TAKE PROFIT CAN BE SET WITH A RISK TO REWARD RATIO OF
1:2

> YOUR SECOND TAKE PROFIT CAN BE SET WITH A RISK TO REWARD
RATIO OF 1:3
 TRADING THE SYMMETRICAL TRIANGLE

RULES FOR TRADING THE SYMMETRICAL TRIANGLE :

> THE SYMMETRICAL TRIANGLE IS IDENTIFIED BY TWO TREND LINES

THAT MOVE IN THE OPPOSITE DIRECTION TOWARDS EACH OTHER
CREATING A TRIANGLE WITH TWO EQUAL ANGLES.

> THE SYMMETRICAL TRIANGLE SHOULD HAVE TWO EQUALLY

RESPECTED ATLEAST 2 TIMES.

> ONCE YOU HAVE DRAWN UP YOUR TREND LINES YOUR GOING TO
WAIT FOR A BREAK EITHER BEARISH OR BULLISH.

> AFTER A BREAK AND CLOSE OUTSIDE THE TRENDLINE THERE ARE
2 WAYS TO PLACE A ENTRY :

> BULLISH BREAKOUT :

YOUR ENTRY SHOULD BE SET AT THE CLOSING BULLISH CANDLE
OUTSIDE THE SYMMETRICAL TRIANGLE

YOUR STOP LOSS SHOULD BE SET AT THE LOWER WICK OF THE

BULLISH CANDLE

YOUR TAKE PROFIT SHOULD BE SET AT A RISK TO REWARD RATIO OF

1:2

YOUR SECOND TAKE PROFIT SHOULD BE SET AT A RISK TO REWARD

OF 1:3

> BEARISH BREAKOUT :

YOUR ENTRY SHOULD BE SET AT THE CLOSING BEARISH CANDLE
OUTSIDE THE SYMMETRICAL TRIANGLE
YOUR STOP LOSS CAN BE SET AT THE UPPER WICK OF THE BEARISH
CANDLE
YOUR TAKE PROFIT CAN BE SET AT A RISK TO REWARD OF 1:2

YOUR SECOND TAKE PROFIT CAN BE SET AT A RISK TO REWARD OF

1:3
 TRADING THE ASCENDING TRIANGLE

RULES FOR TRADING THE ASCENDING TRIANGLE :

> THE ASCENDING TRIANGLE IS FOUND WHEN A UP TREND LINE

MEETS A RESISTANCE AREA.

> RESISTANCE AND TREND LINE SHOULD BOTH BE RESPECTED

ATLEAST 2 TIMES BEFORE BREAKING RESISTANCE AREA.

> THERE ARE TWO WAYS TO ENTER TRADE :

> AGGRESSIVE TRADERS :

YOUR ENTRY SHOULD BE PLACED ON THE BREAK AND CLOSE ABOVE
RESISTANCE

YOUR STOP LOSS CAN BE SET AT THE LOWER WICK OF THE CANDLE
THAT BROKE AND CLOSE ABOVE RESISTANCE OR CAN BE PLACE
USING THE ATR INDICATOR

YOUR TAKE PROFIT CAN BE SET AT A RISK TO REWARD OF 1:2

YOUR SECOND TAKE PROFIT CAN BE SET AT A RISK TO REWARD OF

1:3

> SAFE TRADERS :

YOUR ENTRY CAN BE SET ONCE PRICE RETEST YOUR TREND LINE
ABOVE RESISTANCE.

YOUR STOP LOSS CAN BE SET USING THE ATR INDICATOR

YOUR TAKE PROFIT CAN BE SET USING A RISK TO REWARD OF 1:2

YOUR SECOND TAKE PROFIT CAN BE SET USING A RISK TO REWARD
OF 1:3
 TRADING THE DESCENDING TRIANGLE

RULES FOR TRADING THE DESCENDING TRIANGLE :

> THE DESCENDING TRIANGLE IS FOUND WHEN A DOWN TREND

LINE MEETS A SUPPORT AREA.

> SUPPORT AND TREND LINE SHOULD BOTH BE RESPECTED ATLEAST

2 TIMES BEFORE BREAKING SUPPORT AREA.

> THERE ARE TWO WAYS TO ENTER TRADE :

> AGGRESSIVE TRADERS :

YOUR ENTRY SHOULD BE PLACED ON THE BREAK AND CLOSE BELOW
SUPPORT

YOUR STOP LOSS CAN BE SET AT THE UPPER WICK OF THE CANDLE
THAT BROKE AND CLOSE BELOW SUPPORT OR CAN BE PLACE USING
THE ATR INDICATOR

YOUR TAKE PROFIT CAN BE SET AT A RISK TO REWARD OF 1:2

YOUR SECOND TAKE PROFIT CAN BE SET AT A RISK TO REWARD OF

1:3

> SAFE TRADERS :

YOUR ENTRY CAN BE SET ONCE PRICE RETEST YOUR TRENDLINE
BELOW SUPPORT

YOUR STOP LOSS CAN BE SET USING THE ATR INDICATOR

YOUR TAKE PROFIT CAN BE SET USING A RISK TO REWARD OF 1:2

YOUR SECOND TAKE PROFIT CAN BE SET USING A RISK TO REWARD
OF 1:3
 BAT PATTERN

RULES FOR TRADING THE BAT PATTERN :

> SET YOUR FIBONNACI RETRACEMENT TOOL AS FOLLOWS :

0 : PURPLE
0.382 : YELLOW
0.5 : BLACK
0.618 : BLACK
0.786 : YELLOW
0.88 : RED
1 : PURPLE
ALL OTHER NUMBERS ON THE FIBONACCI LEVEL SHOULD BE
REMOVED.

> AFTER DISCOVERING A LARGE BULLISH OR BEARISH MOMENTUM.

YOU WANT TO DRAW A FIBONACCI LEVEL FROM THE TOP IF IT WAS
BEARISH MOMENTUM OR THE BOTTOM IF IT WAS BULLISH
MOMENTUM.

> ONCE YOU HAVE DRAWN YOUR FIBONACCI RETRACEMENT YOUR

GOING TO DRAW UP A RECTANGLE BETWEEN THE 0.5 LEVEL AND
THE 0.618 LEVEL.

> PRICE SHOULD REACH THIS SQUARE. IF PRICE GOES OUT THE
SQUARE OR CANDLE CREATES A WICK OUTSIDE THE RECTANGLE THE
BAT PATTERN WILL NO LONGER BE VALID. WE WANT TO ATLEAST SEE
A WICK COME INTO THE RECTANGLE. THIS CREATES THE B POINT IN
THIS PATTERN.

> IF PRICE CONFIRMS OUR PREVIOUS STEP WE ARE THEN GOING TO

DRAW UP ANOTHER SQUARE FROM 0.382 TO 0. WE WANT PRICE TO
COME BACK DOWN INTO THIS SQUARE BUT NOT PASS THE 0 MARK.
IF PRICE DOES PASS THE 0 LEVEL IT IS NO LONGER VALID. THIS WILL
CREATE OUR C POINT.
> IF ALL CONDITIONS ARE MET FROM THE PREVIOUS STEP WE CAN
SET OUR ENTRY AT THE 0.88 FIBONACCI LEVEL THAT IS SHOWN AS A
RED LINE. THIS IS THE D POINT OF THE BAT PATTERN.

> STOP LOSS SHOULD BE SET USING THE ATR OR CAN BE SET AT X/0
ON THE FIBONACCI LEVEL.

> TAKE PROFIT CAN BE SET AT THE 0.5 FIBONACCI LEVEL. THE
SECOND TAKE PROFIT CAN BE SET AT 0 ON THE FIBONACCI LEVEL.
 BUTTERFLY PATTERN

RULE FOR TRADING THE BUTTERFLY PATTERN :

> SET YOUR FIBONACCI RETRACEMENT TOOL AS FOLLOWS :

0 : YELLOW
0.1 : BLACK
0.5 : BLACK
0.786 : PURPLE
1 : GREEN
1.27 : RED
ALL OTHER NUMBERS ON THE FIBONACCI LEVEL SHOULD BE
REMOVED.

> JUST LIKE THE BAT PATTERN YOU WANT TO LOOK FOR STRONG
BULLISH OR BEARISH MOMENTUM. YOU WILL DRAW YOUR
FIBONACCI THE SAME WAY AS YOU WOULD WITH THE BAT PATTERN.
WITH A FIBONACCI LEVEL FROM THE TOP IF IT WAS BEARISH
MOMENTUM OR THE BOTTOM IF IT WAS BULLISH MOMENTUM.

> ONCE YOU HAVE DRAWN YOUR FIBONACCI LEVEL. PRICE SHOULD
RETRACE AT THE 0.786 LEVEL. IN ORDER TO CONFIRM IT IS A
BUTTERFLY PATTERN. IT CAN NOT PASS THIS LEVEL BUT SHOULD
ATLEAST HAVE WICK AT THE 0.786 LEVEL. THIS IS THE B POINT OF
THE PATTERN.

> IF PRICE CONFIRMS OUR PREVIOUS STEP WE ARE THEN GOING TO

DRAW UP ANOTHER SQUARE FROM 0.1 TO 0.5. WE WANT PRICE TO
COME BACK DOWN INTO THIS SQUARE BUT NOT PASS THE 0.1
MARK. IF PRICE DOES PASS THE 0.1 LEVEL IT IS NO LONGER VALID.
THIS IS THE C POINT.

> IF ALL CONDITIONS ARE MET FROM THE PREVIOUS STEPS WE CAN
SET OUR ENTRY AT THE 1 ON THE FIBONACCI LEVEL THAT IS SHOWN
AS A GREEN LINE. THIS IS THE D POINT OR ENTRY POINT OF THE
BUTTERFLY PATTERN.

> STOP LOSS SHOULD BE SET USING THE ATR OR CAN BE SET AT THE
RED LINE OR THE 1.27 OF THE FIBONACCI EXTENSION.

> TAKE PROFIT CAN BE SET AT THE 0.786 LEVEL OF THE FIBONACCI
RETRACEMENT. THE SECOND TAKE PROFIT CAN BE SET AT 0 OF THE
FIBONACCI RETRACEMENT.
 CRAB PATTERN

RULES FOR TRADING THE CRAB PATTERN :

> SET YOUR FIBONNACI RETRACEMENT TOOL AS FOLLOWS :

0 : YELLOW
0.1 : BLACK
0.382 : BLACK
0.618 : PURPLE
1 : GREEN
1.618 : RED
ALL OTHER NUMBERS ON THE FIBONACCI LEVEL SHOULD BE
REMOVED.

> YOU WANT TO LOOK FOR STRONG BULLISH OR BEARISH

MOMENTUM. YOU WILL DRAW YOUR FIBONACCI THE SAME WAY AS
YOU WOULD WITH THE BAT PATTERN. WITH A FIBONACCI LEVEL
FROM THE TOP IF IT WAS BEARISH MOMENTUM OR THE BOTTOM IF
IT WAS BULLISH MOMENTUM.

> ONCE YOU HAVE DRAWN YOUR FIBONACCI RETRACEMENT YOUR

GOING TO DRAW UP A RECTANGLE BETWEEN THE 0.382 LEVEL AND
THE 0.618 LEVEL.

> PRICE SHOULD REACH THIS SQUARE. IF PRICE GOES OUT THE
SQUARE OR CANDLE CREATES A WICK OUTSIDE THE RECTANGLE THE
CRAB PATTERN WILL NO LONGER BE VALID. WE WANT TO ATLEAST
SEE A WICK COME INTO THE RECTANGLE. THIS CREATES THE B POINT
IN THIS PATTERN.

> IF PRICE CONFIRMS OUR PREVIOUS STEP WE ARE THEN GOING TO

DRAW UP ANOTHER SQUARE FROM 0.382 TO 01. WE WANT PRICE
TO COME BACK DOWN INTO THIS SQUARE BUT NOT PASS THE 0.1
LEVEL. IF PRICE DOES PASS THE 0.1 LEVEL IT IS NO LONGER VALID.
THIS WILL CREATE OUR C POINT IN THE CRAB PATTERN.

> IF ALL CONDITIONS ARE MET FROM THE PREVIOUS STEP WE CAN
SET OUR ENTRY AT THE 1.618 FIBONACCI EXTENSION LEVEL THAT IS
SHOWN AS A RED LINE. THIS IS THE D POINT OF THE CRAB PATTERN.

> STOP LOSS SHOULD BE SET USING THE ATR INDICATOR.

> TAKE PROFIT CAN BE SET AT THE 0.618 FIBONACCI LEVEL. THE
SECOND TAKE PROFIT CAN BE SET AT 0 ON THE FIBONACCI LEVEL.
 TRADING ROUTINE

• DAILY TRADING ROUTINE : HAVING A DAILY TRADING ROUTINE

ALLOWS YOU TO BE MORE ORGANIZED AS A TRADER. IT ALSO
ALLOWS YOU TO BE MORE CONSISTENT IN YOUR TRADING
PROGRAM. HERE IS A WAY TO SET UP YOUR TRADING ROUTINE :

> TRADING HOURS : CHOOSE HOW MANY HOURS YOU WILL BE

TRADING AND WHAT SESSION YOU WILL BE TRADING. FOR EXAMPLE
TRADING IN THE EUROPEAN SESSION FROM 7AM TO 4PM.
> MARKET ANALYSIS : MARKET ANALYSIS REQUIRES YOU TO DO AN
ANALYSIS ON THE CURRENCY PAIRS YOU TRADE. THIS WILL REQUIRE
YOU TO DRAW UP YOUR SUPPORT AND RESISTANCE. DECIDE ON THE
STRATEGY YOU WILL BE USING AND DRAWING UP POSSIBLE ENTRY
POINTS. YOU CAN SPEND 1 TO 2 HOURS BEFORE THE SESSION YOU
TRADE STARTS.
> TRADE OVERVIEW : TRADE OVERVIEW REQUIRES YOU TO GO
OVER YOUR TRADES FILL IT IN YOUR JOURNAL AND FILL IN REASONS
WHY THE TRADE MADE A LOSS IF IT DID.
 JOURNALLING

HOW TO SET UP YOUR TRADING JOURNAL.

• TRADING GOALS : HAVING FINANCIAL AND KNOWLEDGE BUILDING

GOALS CAN HELP BUILD A CLEAR MINDSET OF WHAT YOU WANT TO
ACHIEVE AND HOW TO ACHIEVE IT.

• FINANCIAL GOALS : SETTING FINANCIAL GOALS BASED ON DAILY ,

WEEKLY , MONTHLY AND YEARLY TIME FRAMES SETS A CLEAR
BENCH MARK OF WHAT YOU SHOULD BE WORKING TOWARDS. IT
ALSO ACTS AS A MOTIVATIONAL BOOST. HAVING SOMETHING TO
WORK TOWARDS STRUCTURES YOUR LIFE IN A POSITIVE MANNER
AND CAN BENEFIT YOUR TRADING.

• KNOWLEDGE BUILDING GOALS : SETTING GOALS TO DEVELOP THE

STRATEGIES YOU USE AS WELL AS BUILDING NEW STRATEGIES IS A
GREAT WAY TO GROW INTO A SUCCESSFUL TRADER. THE BEST WAY
TO DO THIS IS TO USE PAST DATA IN WHICH YOU WILL RECORD IN
YOUR TRADING JOURNAL LIKE WIN PERCENTAGES CAN HELP YOU
DEVELOP ON YOUR STRATEGIES WEAKNESSES AND PERHAPS
INCREASE YOUR WIN PERCENTAGE AND MAKE YOUR STRATEGY
EASIER TO TRADE. THESE GOALS SHOULD BE WRITTEN OUT
MONTHLY OR EVEN WEEKLY.

• BACK TESTING : WHILE ALL STRATEGIES GIVEN OUT IN THIS

PROGRAM HAVE BEEN TESTED. ALWAYS DO YOUR OWN TEST TO
IDENTIFY IF A CERTAIN STRATEGY WORKS FOR YOU AND IF SO YOUR
ABLE TO SEE THE PROBABILITY OF THE STRATEGY. HERE ARE A FEW
THINGS TO ADD TO YOUR BACK TESTING JOURNAL :

> ENTRIES , STOPS AND TARGETS : WHEN BACK TESTING ITS

IMPORTANT TO PROVIDE EVERY DETAIL YOU CAN. FOR EVERY ENTRY
 INCLUDING YOUR CURRENT ONES ITS BEST TO RECORD THE ENTRY ,
STOP LOSS AND TAKE PROFIT.

> TIME OF ENTRY : ITS IMPORTANT TO KNOW THE TIME OF ENTRY

FOR REFERENCE IN FUTURE.

> RISK TO REWARD RATIO : ALWAYS KEEP YOUR RISK TO REWARD

FOR EVERY ENTRY AS IT CAN HELP YOU IMPROVE YOUR TRADES.

> PROFIT OR LOSS : KEEP TRACK OF YOUR PROFIT AND LOSS ON

EACH TRADE , THIS INCLUDES ADDING HOW MANY TAKE PROFITS
WHERE REACHED IF THERE WHERE MULTIPLE TAKE PROFITS. THERE
SHOULD ALSO BE AN AMOUNT OF LOSS OR PROFIT.

> REASON FOR LOSS : IF YOUR TRADE ENDS IN LOSS TRY TO

IDENTIFY WHERE YOU WENT WRONG, FOR EXAMPLE HAVING A
TIGHT STOP LOSS OR NOT WAITING FOR A GOOD ENTRY.

> OVERALL WIN PERCENTAGE AND PROFIT MADE : ALWAYS UPDATE

YOUR WIN PERCENTAGE AND PROFIT OR LOSS MADE. THIS ALLOWS
YOU TO SEE IF THERES BEEN A IMPROVEMENT IN YOUR STRATEGY.

• STRATEGIES : KEEP ALL YOUR STRATEGIES IN YOUR TRADING

JOURNAL. TRY TO KEEP IT RULE BASED OR IF YOUR USING THE
STRATEGIES ON THIS LEARNING PROGRAMME COPY THEM
STRAIGHT IN YOUR JOURNAL THIS ALLOWS YOU TO SEE WHERE YOU
CAN IMPROVE YOUR STRATEGY AND FIND OTHER WAYS TO IMPROVE
IT. YOUR STRATEGIES SHOULD BE CLEAR FOR YOU TO IDENTIFY. THEY
SHOULD ALSO HAVE A CLEAR ENTRY , STOP LOSS AND TAKE PROFIT
POINTS.
• IMPROVEMENTS AND NEW STRATEGIES : ALL IMPROVEMENTS
MADE ON YOUR STRATEGY SHOULD BE BACK TESTED AND ALL
STRATEGIES THAT YOU WOULD LIKE TO TEST SHOULD ALSO FOLLOW
THE SAME PROCEDURE. THE KEY IS TO IMPROVE ON YOUR
STRATEGY INSTEAD OF DIVERSIFYING INTO OTHERS UNLESS YOUR
LIMITED TO ONLY A SMALL NUMBER OF STRATEGIES.

• PSYCHOLOGY: DISCOVER MORE ABOUT YOURSELF SO THAT YOUR

ABLE TO IMPROVE OVERTIME. YOU WILL FIND THAT SOME LOSSES
ARE CAUSED BY IMPATIENCE OR YOUR TAKE PROFITS ARE LIMITED
DUE TO FEAR OF MARKET REVERSAL LEARNING YOUR WEAKNESSES
CAN IMPROVE YOUR TRADING.