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Trading Hub 4.0
Trading Hub 4.0
Trading Hub 4.0
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TRADING HUB
4.O UNLOCK YOUR TRADING SECRET WITH US
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2024
MEMBER HANDBOOK
MR.KHAN
Before proceeding to the next chapter, allow me to introduce myself. My
name is Tasleem Khan, and I am commonly referred to as Mr. Khan. I hail
from Uttar Pradesh, India. My trading journey commenced in 2019, initially
focusing on cryptocurrency trading and investment. I dedicated a
significant amount of time to both fundamental and technical analysis.
However, over time, I developed a stronger preference for technical
analysis compared to fundamental analysis.
Initially, I employed support and resistance levels, as well as indicator-
based trading strategies. However, I faced challenges in achieving
consistent profitability due to psychological factors and inadequate risk
management. After several years of experience, I transitioned to price
action trading, which significantly boosted my confidence and yielded
tangible results in my trading endeavors. This approach proved to be
highly effective for me.
Everything was proceeding smoothly until numerous individuals requested
that I teach them. After some time, I made the decision to instruct anyone
who was eager to learn alongside me. I introduced the TRADING HUB
YouTube channel, and people adored my content because it provided free,
high-value content that was actually useful in practice. Everything was
going well until I came across SMC Concept, Algo Trading, LIT, and a slew
of other intriguing names after a year.
I was eager to learn SMC because I noticed that it offered high-risk, high-
reward trade setups, which drew me to the SMC Concept. I then sought
knowledge from various gurus and communities, but their intricate
teaching methods prevented me from trading with confidence because
some ideas were unclear. I spent two years studying the SMC concept and
simplifying it in the SMC concept TRADING HUB 2.0, which was a huge
success and well-received by the Audience. I was also continuing to do an
excellent job.
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I firmly believe that this innovative approach will revolutionize the trading
landscape and empower individuals to achieve consistent profitability.
"I fear not the man who has practiced 10,000 kicks once, but I fear the
man who has practiced one kick 10,000 times.”
Bruce Lee’s
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We extend our sincere wishes for your continued success and prosperity in
Closing Price
Opening Price
The color of the candlestick can indicate the direction of the asset's price movement during a specific time
period. A green candlestick signifies a price increase, while a red candlestick indicates a price decrease.
Essentially, a candlestick comprises five key elements: high, low, close, open, and the body.
Allow me to guide you in identifying high-probability strong candles for buying and selling opportunities,
enabling you to gauge market momentum effectively. While there are numerous candlestick patterns, focusing
on a select few can greatly enhance your trading strategies.
Let's delve into the provided diagrams to gain a deeper understanding.
These are indecisive candles that indicate a weakening trend. When the market breaks out of these candles,
there is a high probability of a fakeout move. Therefore, it is advisable to avoid these candlesticks when
determining entry points.
These are robust bullish candles that are primarily utilized to discern impulsive movements and identify
breakouts at the pattern level. It is essential to concentrate on long-bodied candles with minimal shadows. If
the market generates these types of candles upon entry, we may enter a trade, which will be covered in
subsequent chapters.
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Impulse and correction are two key factors in identifying whether a market is ranging or trending. Large market
participants often accumulate positions during consolidation phases and then drive the market higher or lower
with significant momentum. Retail traders may attempt to trade within the range but often struggle due to
limited capital and volume.
Trendlines are visual representations of support and resistance in any time frame. They indicate the direction
and speed of price and describe patterns during price contraction periods.
Trendlines are easily recognizable lines that traders draw on charts to connect a series of prices or show the best
fit for some data. The resulting line provides traders with valuable insights into the potential direction of an
investment's value.
The bull flag pattern is a bullish continuation pattern, indicating a resumption of the upward trend. This
presents a strong upside potential for traders who enter a long position after the breakout. Similarly, the
bearish flag pattern has the same implications for traders.
A moving average is a technical indicator employed by investors and traders to ascertain the trend direction of
securities. It is computed by aggregating all data points within a specified period and dividing the sum by the
number of time periods. Moving averages empower technical traders to formulate trading strategies for buying
and selling.
The purpose of calculating a stock's moving average is to mitigate the impact of short-term price fluctuations
by establishing a continuously updated average price. This process helps to smooth out price data, making it
easier to identify underlying trends. While moving averages are not used as the sole basis for trading decisions,
they can provide valuable confirmation when combined with other chart patterns, enhancing traders' confidence
when entering the market.
Remember, the first step is to identify the trend direction using trendlines and patterns only. Do not rely solely
on exponential moving averages (EMA) as they can produce deceptive signals. Focus on mapping trendlines and
market structure. Subsequently, wait for the formation of bullish or bearish continuation patterns. Only then
should you incorporate EMA while seeking suitable entry setups.
Price action must exhibit a reaction from the EMA for increased confidence before executing a buy or sell trade.
Once the market reacts from the 50 EMA, anticipate a robust bullish or bearish candle for entry. Place a stop-
loss above the flag pattern.
By adhering to these guidelines, you will significantly improve your ability to trade in any market direction.
Remember, EMA should not be your primary focus. Instead, prioritize patterns and trendlines.
The provided examples will further enhance your understanding of these concepts. Detailed explanations of
trade entries will be covered in subsequent chapters.
Multi-timeframe analysis (MFTA) is a trading technique that entails studying price charts across multiple time
frames. This comprehensive approach provides traders with a holistic view of the market, enabling them to
make more informed trading decisions. MFTA can enhance trading strategies, optimize entry and exit price
levels, and improve risk management.
Let me illustrate how MFTA can be applied in practice. Various time frame combinations can be utilized based
on day trading, swing trading, and positional trading strategies. Among these, swing trading is often
recommended for its effectiveness.
In this chart example, we can observe a bullish market momentum with the creation of highs and adherence to a
bullish trendline. Additionally, the formation of bullish continuation patterns is evident. The key question now is
where to enter and what our next move should be to enter a trade. if everything is fit as per our plan then when
and how we can enter on this chart to continue bullish trend.
When market momentum is bullish and creating higher highs, but is unable to follow the trendline support, we
can still consider buying to follow the trend. We will use the EMA indicator and structure high highs with bullish
continuation patterns for buys as per the plan for 2R targets. The reason for using a 2R target will be covered
in the Trade Management and Psychology chapter.
Let us examine how we can identify opportunities in a bearish market. This is a bearish trend, and we are looking
for sell setups. The market momentum is bearish and creating clear lower lows, indicating potential selling
opportunities. We need to identify impulse and corrective structures before proceeding. As shown in the chart,
the market continued to push downwards in a strong impulsive wave, followed by a corrective structure
formation. After that, a complete flag continuation pattern and impulsive move were plotted. Finally, the 50
EMA influences price movement; if the price trades below the EMA, it indicates a bearish direction.
Subsequently, the market created a flag continuation pattern. When the first flag broke down and closed below
the EMA50, we could sell for a 2R setup. The same principle applies to the second flag pattern: when the price
breaks down and closes below the EMA50, we can sell for a 2R setup. Finally, the last pattern formed the same
flag continuation pattern, allowing us to sell for a 2R by following the same rules.
“It's not whether you're right or wrong, but how much money you make when you're right and how much you
lose when you're wrong.”
― George Soros
I am always thinking about losing money as opposed to making Money . Don't Focus on Making Money , Focus
on Protecting what you Have.
--Paul Tudor Jones
Fear of missing out (FOMO) is a common psychological phenomenon that can impact traders of all experience
levels. It refers to the apprehension of missing out on a potentially profitable trade or market movement. When
traders succumb to FOMO, they may make impulsive decisions without conducting thorough analysis, which can
lead to poor decision-making and unfavorable outcomes.
Ignoring stop-losses. The apprehension of incurring a loss may lead traders to disregard predetermined stop
prices or exit points—price levels at which they had planned to exit a position. However, persisting in such a
situation may expose them to even more substantial losses if the position continues to move against them. The
reluctance to accept a minor loss can result in more significant financial setbacks in the long run. If you enter a
position with a "stop-the-bleeding" level in mind, it is advisable to set a stop-loss order, and if it is triggered,
accept it and move forward.
Engaging in the pursuit of recouping incurred financial losses, traders may occasionally exhibit a tendency to
augment their exposure to high-risk positions or prolong their involvement in underperforming trades beyond
prudent limits. This behavior, commonly referred to as "chasing losses," amplifies the likelihood of sustaining
more significant financial setbacks and frequently leads traders to disregard fundamental risk management
principles. Consequently, it is imperative to grasp the significance of employing stop-loss mechanisms.
Premature profit-taking can be detrimental to trading success. Some traders may prematurely exit profitable
trades due to fear or impatience, hindering potential gains and creating a cycle of missed opportunities.
Successful traders are adept at cutting losses early while allowing winning trades to run.
Excessive contemplation can be detrimental to a trader's success. The inclination to meticulously analyze every
market movement can result in decision paralysis and emotional fatigue. Encourage traders to rely on their
intuition, adhere to their established strategies, and refrain from excessive over-analysis. At times, the most
effective decisions are made with a clear and focused mindset.
Emphasize the significance of formulating a well-defined trading strategy. Highlight the role of rigorous
backtesting and sound risk management practices in fostering confidence in one's approach. Trusting the
strategy does not imply blind faith; rather, it entails the discipline to adhere to a proven plan even in the face
of temporary setbacks.
Instill a sense of hope and optimism in traders by reminding them of the cyclical nature of markets. Trends are
subject to change, as are fortunes. Just as losses are an inherent aspect of the trading journey, so are gains.
Encourage traders to maintain a long-term perspective and remain committed to their objectives, recognizing
that patience and resilience can ultimately turn the tide in their favor.
Premature profit-taking can be detrimental to trading success. Some traders may prematurely exit profitable
trades due to fear or impatience, hindering potential gains and creating a cycle of missed opportunities.
Successful traders are adept at cutting losses early while allowing winning trades to run.
In conclusion, I would like to emphasize the significance of maintaining a positive mindset in trading. A positive
outlook enables traders to approach the market with confidence and resilience, increasing their chances of
achieving consistent profitability. Trading is not solely about technical analysis; it heavily relies on mindset and
psychology. Technical strategies can only be effective when combined with a strong mindset, positive thinking,
and self-belief.
As previously mentioned, targeting a 2R (risk-to-reward) ratio is crucial. By aiming to gain more than the initial
risk taken, traders can boost their trading skills and gain a psychological advantage. It is important to
remember that losses should never exceed profits.
Furthermore, trading on higher time frames is recommended. Frequent switching between time frames can lead
to confusion and hinder the ability to identify clear market structures. Higher time frames provide more
stability, allowing traders to withstand temporary setbacks and reach their target points. Lower time frames,
such as M1-M5, are highly volatile and can be easily manipulated by large players, making them unsuitable for
consistent trading.
Finally, the moment has arrived. Remember to maintain a positive mindset and adhere to your trading plan,
including stop-loss and take-profit levels. Avoid making excuses during trades, as you are solely responsible for
your decisions. Embrace calculated risks and follow a consistent approach to achieve long-term profitability.
Identify suitable trade setups and patiently wait for execution. Once a trade is initiated, exercise discipline and
allow it to reach its predetermined targets or stop-loss levels.
If possible, limit screen time and practice self-control to avoid impulsive decisions.
Ron Rash
Happy Trading
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