Lesson 1

Impulse Pullback
Swing Trading Strategy

By Adam Khoo
adam@akltg.com

Copyright ©
Adam Khoo Learning Technologies Group Pte Ltd 2017
 Impulse Pullback
The Impulse Pullback (IP) is a swing trading strategy that seeks to buy stocks
that have pulled back after just starting a new uptrend and shorting stocks that
have just pulled back after starting a new downtrend.

The idea is to identify the beginning of a new short term impulsive trend, wait
for a pullback and place a buy (sell) order to catch the continuation of the
trend.

SELL

BUY
 Identifying the New Trend
The new trend is signalled by a 6/18EMA crossover or a MACD(12,26,9) histogram
For long entries
• A new uptrend is signalled by the 6EMA crossing above the 18EMA or the MACD
(12,26,9) showing a bullish histogram
• We want to see an immediate corrective pullback after the uptrend
• The candle immediately after the indicator signal is known as the Swing High (SH)
candle
• The next candle after the SH candle must make a lower high for it to be a valid
pullback

Swing high Swing high

Buy entry Buy entry

Pull back
Pull back
Bullish signal bullish signal, MACD
6 cross 18ema
 Entry Strategy
For short entries
• A new downtrend is signalled by the 6EMA crossing below the 18EMA or the MACD
(12,26,9) turning bearish
• We want to see an immediate corrective pullback after the downtrend
• The candle immediately after the indicator signal is known as the Swing Low (SL)
candle
• The next candle after the SL candle must make a higher low for it to be a valid
pullback

Bearish signal
Pull back 6cross18ema

SL Sell entry
Sell entry

Swing Low
Bearish signal
Swing Low
MACD
 Price Action Patterns
Rule for Pullbacks
No more than 2 lower lows for a long position
No more than 2 higher highs for a short position

maximum two pullbacks

SH
PB
PB

PB
PB
SL
maximum two pullbacks
 Price Action Patterns

Inside Bar (IB) 2 Inside Bar (2IB)

SH
SH
IB
IB IB IB

SL

An inside bar (candle) is one where the high of the candle is below
the previous candle’s high and the low of the candle is above the
previous candle’s low
 Price Action Patterns

1 Bar Pullback (PB) 2 Bar Pullback (2PB)

SH SH
PB

PB
PB PB
SL
 Price Action Patterns
1 Bar Pullback (PB) 2 Bar Pullback (2PB)

SH
SH Buy entry
Buy entry

PB
PB PB
6cross18ema
Bullish 6cross18ema
Bullish
Price Action Patterns
1 Bar Pullback (PB)

PB

sell entry

SL

Bearish signal
MACD
 Price Action Patterns

Inside bar+ 2 Pullback Inside Bar +1 Pullback

1B + 2 PB 1 IB + 1 PB

SH
PB
IB

IB PB
PB
Price Action Patterns
Inside Bar,Pullback, Inside Bar
1 IB, 1 PB, 1B
PBIB
IB
sell entry

SL

Bearish signal
MACD
 Price Action Patterns

2 Pullback + Inside bar 1 Pullback + Inside Bar

2 PB + 1B 1 PB + 1 IB

SH
PB
IB

PB IB
PB

a
 Chart Setup

Bollinger bands

6,18 EMA
50, 100, 200 EMA

MACD (12, 26,9)

Stochastics (5, 3,3)

 IP Long Setup Entry Rules
1) Bullish signal from 6/18 EMA crossover or MACD (12, 26, 9)
2) Swing High (SH) after bullish signal is followed by pullback (PB) or an inside
bar (IB) + a pullback (PB)- maximum 2 pullbacks. One IB alone is not reliable.
3) Entry: Place Buy Stop Limit Order 3-5 cents above last valid IB or PB
(Trigger Bar).
4) Stop Loss: Place a Sell Stop Order just below the Trigger bar.
5) The stop loss distance (top to bottom of trigger bar) will be the 1R distance
6) Target Price: Place a Sell Limit Order 2.5R above the entry price

Low Risk Filters

• Ideally, when taking a long entry, the medium term trend should also be up. 18> 50>
150 > 200EMA)
• No earnings release within the next 7 trading days
• No significant resistance levels within 2.5R of the entry price
• MACD line above signal line (bullish momentum)
• Full Stochastics (5,3,3) is not above 80 and Price not hitting upper Bollinger bands
 IP Long Setup Entry Rules

Buy entry is invalidated if…

1) Bullish signal reverses (i.e. 6cross
below18 EMA or MACD turns bearish)
2) More than 2 pullbacks from SH
Sell limit (TP)
2R
SH
Buy stop Limit (Entry)
1R Sell stop (SL)
PB

6cross18 ema Bullish Signal

 IP Short Setup Entry Rules
1) Bearish signal from 6/18 EMA crossover or MACD (12, 26, 9)
2) Swing low (SL) after bearish signal is followed by a Pullback (PB) or an
inside bar (IB) and a pullback (PB)- maximum 2 pullbacks. One IB alone is
not reliable.
3) Entry: Place Sell Stop limit Order 3-5 cents below last valid IB or PB
(Trigger Bar).
4) Stop Loss: Place a Buy Stop Order 3-5 cents above the Trigger bar.
5) The stop loss distance (top to bottom of trigger bar) will be the 1R
distance
6) Target Price: Place a Buy Limit Order (Profit target) 2.5R below the
entry price

Low Risk Filters

• Ideally, when taking a short entry, the medium term trend should also be
down. (18 < 50 < 150 < 200EMA)
• No earnings release within the next 7 trading days
• No significant support levels within 2.5R of the entry price
• MACD line below signal line (MACD Bearish)
• Stochastics is not below 20 and Price not near lower Bollinger Bands
IP Short Setup Entry Rules
Buy entry is invalidated if…
1) Bearish signal reverses (i.e. 6cross
Bearish Signal above 18 EMA or MACD bullish)
2) More than 2 pullbacks from SL

Buy stop (SL)

1R
Sell Stop Limit
(Entry)
SL 2R
Trigger

Buy limit (TP)

`
 Medium term Uptrend for long entries
Ideally, when taking a long entry on a short-term uptrend, the medium term trend
should also be an uptrend (18 > 50 > 150 > 200EMA). This gives us the highest
probability of an upward move and no moving averages that act as resistance.

Swing high

18 EMA
Buy entry

Pull back
50ema
Bullish signal
6 cross 18ema
150ema
200ema
 Medium term Downtrend for short entries
Ideally, when taking a short entry on a short-term downtrend, the medium term trend should also be a
downtrend (18 < 50 < 150 < 200EMA). This gives us the highest probability of a downward move and
no moving averages that act as support

200ema
150ema
50ema
Bearish signal
6cross18 ema
PB
Sell entry

Swing Low
 IP High Probability Setups
A lP Long trade has the highest probability of success when
1. 6cross above 18EMA AND
2. MACD crosses above signal line AND
3. Price crosses above 50EMA

any 2 out of 3 conditions occurring at the same time has a high probability
In addition, the price should not be overbought
(Stochastics (5,3,3) not above 80 and Entry not hitting upper Bollinger bands)

An IP short trade has the highest probability of success when

1. 6cross below18EMA AND
2. MACD crosses below signal line AND
3. Price crosses below 50EMA

any 2 out of 3 conditions occurring at the same time has a high probability
In addition, the Price should not be oversold
(Stochastics (5,3,3) not below 20 and Entry not hitting lower Bollinger bands)
 High Probability Setups

SH
1)6x18 buy
2) MACD cross
3) Price cross 50ema
Not hitting
Bollinger bands

candle cross above 50EMA

6x18

MACD cross bullish

Stochastics below 80
 High Probability Setups

1)6x18
2) MACD cross SH
3) Price cross 50ema
buy Not near
Bollinger bands

candle cross
6x18 above 50EMA

MACD cross bullish

Stochastics below 80
 High Probability Setups

SL
1)6x18
2) MACD cross 6x18 sell
Price far from lower
Bollinger Bands

MACD cross bearish

 High Probability Setups

1)6x18
2) MACD cross
3) Price cross 50ema
buy
SH

candle cross above 50EMA

6x18

MACD cross bullish

 High Probability Setups

1)6x18
2) Price cross 50ema buy
SH

candle cross above 50EMA

6x18
 High Probability Setups

1)6x18
2) Price cross 50ema buy
SH

6x18 candle cross above 50EMA

 High Probability Setups

1)6x18 buy
2) MACD crossover SH

6x18

MACD cross
 Summary of IP Low Risk Filters
1) 2 Out 3 Conditions happening at the same time
1) 6 crosses 18EMA
2) MACD crosses signal line
3) Price crosses 50EMA
2) Ensure there is no downtrend resistance for long setups and uptrend
support for short setups
3) MACD has bullish momentum for longs and bearish momentum for
shorts
4) Entry price not overbought for longs and not oversold for shorts
 Impulse Pullback
Risk & Trade Management
 Risk & Trade Management

1. Set a Target profit (TP) of 2.5R or where there is a strong resistance (at
least near 2R)
2. Move Stop Loss to Entry Price once Price moves 1R in your favour
3. Wait for the price to either hit the target price (2.5R) or stop loss price
(-1R or 0R)

Optional
4. Keep Raising stop losses to 3-5 cents below bearish candles/bearish
reversal candles for long trades. Conversely, lower stop losses to 3-5 cents
above bullish candles/bullish reversal candles for short trades

Strategy 4 can be used in combination with strategy 1 (setting a fixed TP) or

used to replace it. In the second case, there is no fixed TP. Stop losses are
raised until they are hit.
 Trade Management

TP
Buy SH
SL 2
Buy entry
SL 1
Trade Management

TP 2.5R
SH SL 2 1.63R

Buy entry

SL 1
Trade Management

SL 2
SH 5R
TP
2.5R
Buy entry
SL 1
Trade Management

SL 1 SL 2
SL 2
Sell entry
SL 3
TP 2.5R 1.3R

SL
Screening for Impulse
Pullback Trades
Identifying Momentum in Stocks
 Go Long on High Momentum Stocks
Ideally, we want to go long on stocks with the strongest bullish momentum.

High Momentum Criteria

1) Market Trend is bullish (S&P 500 above 20EMA & sloping up)
2) Strong Relative strength (RS)
1) the Relative Strength Indicator is rising (thinkorswim.com or TC2000)
3) Strong Sector or Industry
1) Sector among top 3 performing sectors (www.finviz.com)
2) Bullish sector and Industry Chart patterns (TC 2000)
4) Average volume (last 60 days) 150,000-200,000 or more (ideally above
200,000)
 Go Short on Low Momentum Stocks
Ideally, we want to go short on stocks with the lowest momentum.

Low Momentum Criteria

1) Market Trend is bearish (S&P 500 below 20EMA & sloping down)
2) Low Relative strength
1) Relative Strength Indicator is falling (www.thinorswim.com or TC2000)
3) Weak Sector or industry
1) Sector among bottom 5 performing sectors (www.finviz.com)
2) Bearish sector and Industry Chart patterns (TC 2000)
4) Average volume (last 60 days) 150,00-200,000 or more (ideally above
100,000)

5) Avoid shorting stocks with Price less than $10, Market Cap less than $1
billion and Short Interest Ratio greater than ‘8’
 Lesson 1
Impulse Pullback Strategy

By Adam Khoo
adam@akltg.com

Copyright ©
Adam Khoo Learning Technologies Group Pte Ltd 2017
 Lesson 1
Introduction
Advanced Forex
Trading Strategies

By Adam Khoo
adam@akltg.com

Copyright ©
Adam Khoo Learning Technologies Group Pte Ltd 2017
 Advanced Forex Trading Strategies

• Advanced Forex Trading Strategies

• Lesson 2: The MA Bounce Strategy
• Lesson 3: News Scalping Strategy
• Lesson 4: Trade The Range Strategy

• Review of Technical Analysis

• Support and Resistance
• Moving Averages
• Higher Time Frame Alignment
• Understanding the Impact of News
• Fibonacci Retracements
 Lesson 1
Introduction
Support & Resistance

By Adam Khoo
adam@akltg.com

Copyright ©
Adam Khoo Learning Technologies Group Pte Ltd 2017
 Lesson 1
Introduction
Moving Averages
18EMA, 50EMA, 200SMA

By Adam Khoo
adam@akltg.com

Copyright ©
Adam Khoo Learning Technologies Group Pte Ltd 2017
 Lesson 1
Introduction
Multiple Timeframe Alignment

By Adam Khoo
adam@akltg.com

Copyright ©
Adam Khoo Learning Technologies Group Pte Ltd 2017
 Lesson 1
Introduction
Forex News Calendar
www.forexfactory.com

By Adam Khoo
adam@akltg.com

Copyright ©
Adam Khoo Learning Technologies Group Pte Ltd 2017
 Lesson 1
Introduction
Fibonacci Retracements

By Adam Khoo
adam@akltg.com

Copyright ©
Adam Khoo Learning Technologies Group Pte Ltd 2017
Fibonacci Numbers

• Fibonacci numbers: 0,1,1,2,3,5,8,13,21,34,55,89,144,233…

• Each number is 1.618 times greater than the preceding number
• Golden Ratio
• 1.618 is called Phi (Golden Ratio). Inverse is 0.618
• The 38.32% ratio is derived from dividing a number in the fibonacci series
by the number 2 places to the right 89/233 = 0.382
• The Golden Ratio mysteriously appears in nature, architecture & biology
Fibonacci in Nature

DNA molecule
34/21 = 0.618
angstroms
 Fibonacci Retracement & Projection Levels

Uptrend
Target 1: 100%
B

Co
rre
ave

cti
W

ve
W
lse

ave
pu
Im

50%, 61.8% Retrace-ment

C
A
When a the corrective wave of an uptrend retraces to the 50% or 61.8% level, it
has a higher probability of continuing the trend.
Next target projection is 100% level.
 Fibonacci Retracement Levels

Is it a 50% or 61.8% retracememt?

B

A
 Fibonacci Retracement Levels

Drag to B

fibonacci tool

C is at 50%
Click on A
 Fibonacci Retracement & Projection Levels

Downtrend
A
C
50%, 61.8% Retrace-ment

ave
Im

eW
pu

tiv
lse

c
rre
Co
W
ave

B Target 1: 100%

When a the corrective wave of an downtrend retraces to the 50% or 61.8% level,
it has a higher probability of continuing the trend.
Next target projection is 100% level.
Fibonacci Retracement & Projection Levels
A
Is it a 50% or 61.8% retracememt?

B
Fibonacci Retracement & Projection Levels

Click on A

C is at 61.8%

fibonacci tool

Drag to B
Confluence of Fibonacci level + Support/
Resistance
Confluence of Fibonacci level + Support/
Resistance + Moving Average
 Lesson 1
Introduction
Advanced Forex
Trading Strategies

By Adam Khoo
adam@akltg.com

Copyright ©
Adam Khoo Learning Technologies Group Pte Ltd 2017
 Lesson 2
EMA Bounce Strategy
FX M15

By Adam Khoo
adam@akltg.com

Copyright ©
Adam Khoo Learning Technologies Group Pte Ltd 2017
 EMA Bounce Strategy
The EMA Bounce Strategy is a strategy that seeks to long FX pairs on a strong uptrend
as they bounce off their 50EMA support and shorting FX pairs on a strong downtrend as
they bounce off their 50EMA resistance.

Time frames: M15 optimal

Frequency: 10-15 trades a month
Average Win rate: 50%-60%
Risk to return Ratio: 1: 2
All FX Pairs : GBPUSD, EURUSD, USDJPY, USDCHF, USDCAD
Must use brokers with tight spreads of 1 to 2 pips maximum
 Long Setup Entry Rules
1) FX Pair on an uptrend (Price> 18EMA > 50EMA > 200SMA)
2) 50EMA has been tested at least once to be strong support
3) Higher time frame H1candles on Uptrend (Price>18EMA>50EMA>200SMA)
4) Uptrend wave pattern (Recent swing high is higher than previous swing high,
Recent swing low is higher/equal to previous swing low)
5) Ideally, 50EMA support coincides with a horizontal support level and/or fibonacci
level of 50% or 61.8%

Recent Swing high

50EMA
Previous Swing high

Recent Swing Low

Previous Swing Low

 Long Setup Entry Rules
6) Entry: Buy Limit Order at 50EMA support
7) Stop Loss: Place a Sell Stop Order at least 8 pips below the Entry Price (at least 12 pips for GBP
pairs)
8) The stop loss distance (Entry to Stop Loss) will be the 1R distance. This should be at least 8-12 pips
9) Target Price: Sell Limit Order 2R above the entry price. The Target price should be below the
recent swing high.

Low Risk Filters

• No major news release within the next 10 candles (i..e 150 mins for M15)

Recent Swing high

Target Price

Previous Swing high 2R

Entry @Recent Swing Low
1R
Stop loss
Previous Swing Low

50EMA
 Long Setup Entry Rules
Uptrend wave pattern (Recent swing high is higher than previous swing
high, recent swing low is higher/equal to previous swing low)?
 Long Setup Entry Rules
Uptrend wave pattern (Recent swing high is higher than previous swing
high, recent swing low is higher/equal to previous swing low)?

Is this a Valid Wave Pattern?

 M15 MA Bounce Long Setup -GBPCHF

Recent swing high

Target Price
GBPCHF 29 Nov Previous swing high
Sell Limit Order 1.3300

18EMA>50EMA>200SMA
1R =38 pips
Entry
Buy Limit Order 1.3262
50EMA recently tested 1R =19 pips
Sell Stop Order 1.3243
Stop Loss

Recent swing low

Previous swing low

50EMA recently tested

 MA Bounce Long Setup- GBPCHF
H1 H1 Must Be Aligned

Sell Limit Order 1.3300 Target Price

GBPCHF 29 Nov
18EMA>50EMA>200SMA Buy Limit Order 1.3262 Entry
Sell Stop Order 1.3243 Stop Loss
 M15 MA Bounce Long Setup- GBP CHF
Target price Reached

Target Price
GBPCHF 29 Nov Sell Limit Order 1.3300

2R =38 pips
Entry
Buy Limit Order 1.3262
1R =19 pips
Sell Stop Order 1.3243
Stop Loss
 M15 MA Bounce Long Setup -EURUSD
Recent swing high

EURUSD 27 Nov
18EMA>50EMA>200MA

Target Price
Sell Limit Order 1.1941
Previous swing high
2R =16 pips

Entry
Buy Limit Order 1.1925

1R =8 pips
Stop Loss
Sell Stop Order 1.1917

50EMA recently tested

Recent swing low
Previous swing low
 MA Bounce Long Setup- EURUSD
H1 H1 Must Be Aligned

EURUSD 27 Nov Target Price

18EMA>50EMA>200MA
Sell Limit Order 1.1941

Entry
Buy Limit Order 1.1925
Stop Loss
Sell Stop Order 1.1917
 M15 MA Bounce Long Setup- EURUSD
Target price Reached

EURUSD 27 Nov

Target Price
Sell Limit Order 1.1941

Entry
Buy Limit Order 1.1925

Stop Loss
Sell Stop Order 1.1917
 MA Bounce Long Setup -USDCHF
M15

Recent swing high

USDCHF 7 Dec Target Price

Sell Limit Order 0.9932

Previous swing high 2R =20 pips

18EMA>50EMA>200MA Entry
Buy Limit Order 0.9912
1R =10 pips
Stop Loss
Sell Stop Order 0.9902

Previous swing low

50EMA recently tested
Recent swing low
 MA Bounce Long Setup- USDCHF
H1 H1 Must Be Aligned

Target Price
18EMA>50EMA>200MA Sell Limit Order 0.9932

Entry
Buy Limit Order 0.9912

Stop Loss
Sell Stop Order 0.9902
 M15 MA Bounce Long Setup- USDCHF
Target price Reached

Target Price
NZDCHF 5 Dec
Sell Limit Order 0.9932
18EMA>50EMA>200MA
Entry
Buy Limit Order 0.9912

Stop Loss
Sell Stop Order 0.9902
 Is This a Valid MA Bounce Long Setup?

Is this a Valid Wave Pattern?

 USD CHF Bounce
Long Setup Live Trade

By Adam Khoo
adam@akltg.com

Copyright ©
Adam Khoo Learning Technologies Group Pte Ltd 2017
 EUR JPY Bounce
Long Setup Live Trade

By Adam Khoo
adam@akltg.com

Copyright ©
Adam Khoo Learning Technologies Group Pte Ltd 2017
 Short Setup Entry Rules
1) FX Pair on an downtrend (Price< 18EMA < 50EMA < 200SMA)
2) 50EMA has been tested at least once to be strong resistance
3) Higher time frame H1candles on Downtrend (Price<18EMA<50EMA<200MA)
4) Downtrend wave pattern (Recent swing low is lower than previous swing low,
Recent swing high is lower/equal than previous swing high )
5) Ideally, 50EMA resistance coincides with a horizontal support level and/or fibonacci
level of 50% or 61.8%

Previous
Swing high Recent
Swing high

Previous
Swing Low
Recent
Swing low
 Short Setup Entry Rules
6) Entry: Sell Limit Order at 50EMA resistance
7) Stop Loss: Place a Buy Stop Order at least 8 pips above the Entry Price (at least 12 pips for GBP
pairs)
8) The stop loss distance (Entry to Stop Loss) will be the 1R distance. This should be at least 8-12 pips
9) Target Price: Buy Limit Order 2R below the entry price. The Target price must be above the
recent swing low.

Low Risk Filters

• No major news release within the next 10 candles (i..e 150 mins for M15)

Previous
Swing high
Stop loss
1R
Entry Recent
Swing high
2R
Previous
Swing Low Target Price
Recent
Swing low
 Short Setup Entry Rules
Downtrend wave pattern (Recent swing high is lower than previous
swing high, recent swing low is lower/equal to previous swing low)
 Short Setup Entry Rules
Downtrend wave pattern (Recent swing high is lower than previous
swing high, recent swing low is lower/equal to previous swing low)

Is this a Valid Wave Pattern?

 M15
MA Bounce Short Setup- NZDJPY

NZDJPY 16 Nov 18EMA<50EMA<200MA

50EMA recently tested
Recent
swing high
Previous
swing high Stop Loss
Buy Stop Order 77.65

Entry 1R =8 pips
Sell Limit Order 77.57

2R =16 pips

Previous
Target Price
swing low Buy Limit Order 77.41

Recent
swing low
 H1 MA Bounce Short Setup-NZDJPY
Ensure H1 is Aligned!

18EMA<50EMA<200MA
NZDJPY 16 Nov

Stop Loss
Buy Stop Order 77.65
Entry
Sell Limit Order 77.57

Target Price
Buy Limit Order 77.41
M15
MA Bounce Short Setup-NZDJPY

NZDJPY 16 Nov 18EMA<50EMA<200MA

Stop Loss
Buy Stop Order 77.65

1R =8 pips
Entry
Sell Limit Order 77.57

2R =16 pips

Target Price
Buy Limit Order 77.41
 M15 MA Bounce Short Setup- NZDUSD

50EMA recently tested 18EMA<50EMA<200MA

NZDUSD 15 Nov
Previous Recent
swing high swing high
Stop Loss
Buy Stop Order 0.6874

1R =8 pips
Entry
Fibo 61.8% Sell Limit Order 0.6866

2R =16 pips

Target Price
Buy Limit Order 0.6850

Previous Recent
swing low swing low
 MA Bounce Short Setup-NZDUSD
Ensure H1 is Aligned!
H1

18EMA<50EMA<200MA

NZDUSD 14 Nov

Stop Loss
Buy Stop Order 0.6874

Entry
Sell Limit Order 0.6866

Target Price
Buy Limit Order 0.6850
M15 MA Bounce Short Setup- NZDUSD
Target price Reached

NZDUSD 15 Nov

Stop Loss
Buy Stop Order 0.6874

1R =8 pips
Entry
Sell Limit Order 0.6866

2R =16 pips

Target Price
Buy Limit Order 0.6850
Is This a Valid MA Bounce Short Setup?
Is This a Valid MA Bounce Short Setup?
 EUR NZD Bounce
Short Setup Live Trade

By Adam Khoo
adam@akltg.com

Copyright ©
Adam Khoo Learning Technologies Group Pte Ltd 2017
 Lesson 2
MA Bounce Strategy
FX M15

By Adam Khoo
adam@akltg.com

Copyright ©
Adam Khoo Learning Technologies Group Pte Ltd 2017
 Lesson 3
News Scalping Strategy
FX M1

By Adam Khoo
adam@akltg.com

Copyright ©
Adam Khoo Learning Technologies Group Pte Ltd 2017
 FX: News Scalping Strategy
• The FX News Scalp strategy is a Scalping strategy that takes advantage of rapid
and large price movements driven by major market moving news in a currency
pair
• M1 (One minute candles) are used.
• The strategy is to concurrently place a long and a short order exactly 3 minutes
before the impending news release
• We expect the news to move the currency pair in one direction, trigger the long
order if it goes up or trigger the short order if it goes down
• The winning position is exited precisely 60 seconds after the news release.
• Average R Win : 1.5R-5R
• Average R Loss 0.5R-2R
• Win Rate: 50%-60%
 FX: Scalping the News
Important Points
• Only trade this strategy with stable internet connection
• We only trade 5 major news announcements (RED flag) with specific data
• Non Farm Payrolls (NFP)
• CPI (Consumer Price Index)
• GDP Data
• Unemployment Claims
• Interest Rates www.forexfactory.com Time synced to
traders local time

GDP+ unemployment rate on CAD

 FX: Scalping the News
Important Points
• We only trade major news announcements (RED flag) on major currencies
• USD News -> Trade EUR/JPY/CAD USD, GBP News -> Trade GBP USD,
• CAD News -> Trade USD CAD, JPY News -> Trade USD JPY
• EUR News -> Trade EUR USD, CHF News -> Trade USD CHF
• NZD News -> Trade NZD USD, AUD News -> Trade AUDUSD

Time synced to
www.forexfactory.com
traders local time

GDP+ unemployment rate on CAD, we trade USD CAD

 FX: Scalping the News
Important Points
• Only use Forex Brokers with very tight spreads 1-2 pips that use an MT4
platform that allows placing 2 opposing orders on the same currency pair
• Reliable Internet connection
• I use www.halifax.com.au MT4 Platform (Non US Citizens)
• US clients have to use a US regulated broker that have these features:
forex.com, oanda.com
www.forexfactory.com Time synced to
traders local time

GDP+ unemployment rate on CAD, we trade USD CAD

 FX: Scalping the News
Entry and Exit Rules
• Entry orders and stop losses are placed exactly 3 minutes before news is
announced
• Long Position
• Long Entry 1: Buy Stop Order 12 pips above current market price
• Stop loss 1: Sell Stop Order at current market price
• Short Position
• Sell Entry 2: Sell Stop Order 12 pips below current market price
• Stop loss 2: Buy Stop Order at current market price
• Note: For GBPUSD, the distance used is 16 pips

Long Entry: Buy Stop Order 1.2862

1R =12 pips market
Long Stop Loss: Sell Stop Order 1.2850 price
1.2850 at 3
Short Stop Loss: Buy Stop Order 1.2850
mins before
1R =12 pips news
Short Entry: Sell Stop Order 1.2838
 FX: Scalping the News
Entry and Exit Rules

• Scenario 1 (Long Entry Triggered)

• Price moves up and triggers long entry order once news is released (within 10
seconds)
• Cancel short entry order immediately
• Exit Long Trade after 60 seconds (news 1 minute candle closes). Exit by shifting
stop loss order to latest market price.
• Outcome can be -1.5R loss to unlimited R gains (usually 2R to 10R is possible)

Long Entry: Buy Stop Order 1.2862

1R =12 pips market
Long Stop Loss: Sell Stop Order 1.2850 price
1.2850 at 3
Short Stop Loss: Buy Stop Order 1.2850
mins before
1R =12 pips news
Short Entry: Sell Stop Order 1.2838
 FX: Scalping the News
Entry and Exit Rules
• Scenario 2 (Short Entry Triggered)
• Price moves down and triggers short entry order once news is released
(within 10 seconds)
• Cancel long entry order immediately
• Exit short Trade after 60 seconds (news 1 minute candle closes). Exit by
shifting stop loss order to latest market price.
• Outcome can be -1.5R loss to unlimited R gains (usually 2R to 10R is
possible)

Long Entry: Buy Stop Order 1.2862

1R =12 pips market
Long Stop Loss: Sell Stop Order 1.2850 price
1.2850 at 3
Short Stop Loss: Buy Stop Order 1.2850
mins before
1R =12 pips news
Short Entry: Sell Stop Order 1.2838
 FX: Scalping the News
Entry and Exit Rules

• Scenario 3 (Neither Orders Triggered within 10 seconds)

• Upon release of the news, the price does not move enough to trigger the long
order or the short order within 10 seconds
• In this case, we cancel both long and short orders immediately.

• Scenario 4 (unlikely but possible)

• It is possible that currency pairs moves rapidly in one direction and then the
opposite, triggering both long and short positions and hitting both stop
losses, resulting in a -2R or -3R outcome

Long Entry: Buy Stop Order 1.2862

1R =12 pips market
Long Stop Loss: Sell Stop Order 1.2850 price
1.2850 at 3
Short Stop Loss: Buy Stop Order 1.2850
mins before
1R =12 pips news
Short Entry: Sell Stop Order 1.2838
 FX: Scalping the News
Important Notes

• When price moves quickly during news announcements, your long or short
entry order may not get filled at the intended stop price
• Example: Your buy stop order may get filled 1-12 pips above the intended stop
price, resulting in a 1.5R-2R risk or more.
• If your order is filled far away from your intended entry price, you can
immediately shift your stop loss to within 12-16 pips of the entry price to keep
your risk at 1R!
 9.29
Minute candle USD CAD Scalp 1 Dec 9.28
9.30 news
Long Entry 1: Buy stop 1.2892

1R=12 pips
SL 1: Sell stop 1.2880
Price at 9.27pm 1.2880 SL 2: Buy stop 1.2880
1R= 12 pips
Short Entry 2: Sell stop 1.2868
Short trade
triggered

9.27
Orders placed Profit
= 58 pips (4.8R)

Short trade
Exit after
Major news at 9.30pm 1min candle
closes
 USD CAD Scalp 21 Dec
Minute candle

8.27 (Order placed)

1R=12 pips 8.30 news
Long Entry 1: Buy stop 1.2812
1R= 12 pips
SL 1: Sell stop 1.28000
Price at 8.27pm 1.2800
SL 2: Buy stop 1.2800
Short Entry 2: Sell stop 1.2788
Short trade triggered
@1.2786

Profit
= 48 pips (3.42R)

Short trade Exit

1.2738 after 1min
Major news at 8.30pm candle closes
Minute candle USD CAD Scalp 22 Dec

Long trade
Exit after 1min
candle closes
@1.2775

Profit
= 46 pips (1.9R)
Major news at 8.30pm
long trade
triggered &
filled 1.2729
8.27
Orders placed
Long Entry 1: Buy stop 1.2717
1R=12 pips
SL 1: Sell stop 1.2705
SL 2: Buy stop 1.2705
Price at 8.27pm 1.2705
1R= 12 pips
Short Entry 2: Sell stop 1.2695
8.30 news
 6 Dec
USD CAD Example
4.8R+

Copyright ©
Adam Khoo Learning Technologies Group Pte Ltd 2017
 7 Dec
EUR USD Example
0R

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Adam Khoo Learning Technologies Group Pte Ltd 2017
 8 Dec
EUR USD Example
0R

Copyright ©
Adam Khoo Learning Technologies Group Pte Ltd 2017
 22 Dec
USD CAD Example
3.75R+

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Adam Khoo Learning Technologies Group Pte Ltd 2017
 17 Jan
USD CAD Example
0R+

Copyright ©
Adam Khoo Learning Technologies Group Pte Ltd 2017
 Lesson 3
News Scalping Strategy
FX M1

By Adam Khoo
adam@akltg.com

Copyright ©
Adam Khoo Learning Technologies Group Pte Ltd 2017
 Lesson 4
Trade The Range Strategy
FX M15

By Adam Khoo
adam@akltg.com

Copyright ©
Adam Khoo Learning Technologies Group Pte Ltd 2017
 Trade The Range
The FX Trade the Range is a strategy that seeks to long FX pairs that are at the bottom
of a consolidation pattern within a bigger uptrend and shorting FX pairs at the top of a
consolidation pattern within a bigger downtrend

Time frames: M15 optimal

Frequency: 10-15 trades a month
Average Win rate: 50%-60%
Risk to return Ratio: 1: 1.5
All FX Pairs : GBPUSD, EURUSD, USDJPY, USDCHF, USDCAD
Must use brokers with tight spreads of 1 to 2 pips maximum
 Long Setup Entry Rules
1) FX pair in a consolidation (Range) making same highs and same lows
• Resistance level tested 3 times
• Support level tested 3 times
2) 50 EMA is above 200SMA (Uptrend Bias)
3) The support level is above the 200SMA. Highest probability trade is when stop loss
is below the 200SMA.
4) Higher time frame H1candles on Uptrend (Price > 50EMA>200SMA)
 Long Setup Entry Rules

5) Entry: Buy Limit Order at support level of consolidation

6) Stop Loss: Place a Sell Stop Order 8-10 pips below the Entry Price
7) The stop loss distance (Entry to Stop Loss) will be the 1R distance. This should be
at least 8 pips
8) Target Price: Place a Sell Limit Order at the Resistance level of the
consolidation
• The Distance from Entry price to Target price must be at least 1.5R

Low Risk Filters

• No Major News release within the next 10 candles (i.e. 150 minutes for M15)
• No significant resistance levels within 1.5R of the entry price
 ‘Trade the Range’ Long Setup

Resistance tested 3x TP: Sell limit 7792

1.5R = 13 pips

Entry: Buy limit 7779

Support tested 3x 1R = 8 pips
50EMA above 200MA SL: Sell Stop 7771

Stop loss below the 200SMA

 ‘Trade the Range’ Long Setup

USD JPY 4 Oct

Resistance tested 3x Sell limit 9758
1.5R = 12 pips

Support tested 3x Buy limit 9746

1R = 8 pips
Sell Stop 9738
50EMA above 200MA
 Short Setup Entry Rules
1) FX pair in a consolidation (Range) making same highs and same lows
• Resistance level tested 3 times
• Support level tested 3 times
2) 50 EMA is below 200SMA (Downtrend Bias)
3) Resistance level is below the 200SMA. Highest probability trade is when Stop loss is
above the 200SMA
4) Higher time frame H1candles on Downtrend (Price < 50EMA <200SMA)
 Short Setup Entry Rules
5) Entry: Sell Limit Order at Resistance level of consolidation
6) Stop Loss: Place a Buy Stop Order 8-10 pips Above the Entry Price
7) The stop loss distance (Entry to Stop Loss) will be the 1R distance. This should be
at least 8 pips
8) Target Price: Place a Buy Limit Order at the Support level of the consolidation
• The Distance from Entry price to Target price must be at least 1.5R

Low Risk Filters

• No Major News release within the next 10 candles (i.e. 150 minutes for M15)
• No significant support levels within 1.5R of the entry price
 ‘Trade the Range’ Short Setup

Stop loss above the 200SMA

NZD JPY 13 Nov
SL: Buy Stop 78.84
50EMA below 200MA
1R = 8 pips
Resistance tested 3x Entry: Sell limit 78.76

1.5R = 12 pips
Support tested 3x TP: Buy Limit 78.62
 ‘Trade the Range’ Short Setup

AUD CAD 10 Nov

Stop loss above the 200SMA

50EMA below 200MA

SL: Buy Stop 0.9728
1R = 8 pips
Resistance tested 3x Entry: Sell limit 0.9720

1.5R = 12 pips

TP: Buy Limit 0.9708

 ‘Trade the Range’ Short Setup

CHF JPY 26 Oct

50EMA below 200MA

Buy Stop 11445

Resistance tested 3x 1R = 8 pips Sell limit 11437
1.5R = 12 pips

Support tested 3x Buy Stop 11425

 GBP JPY
18 January
Trade The Range

By Adam Khoo
adam@akltg.com

Copyright ©
Adam Khoo Learning Technologies Group Pte Ltd 2017
 CHF JPY
28 December
Trade The Range

By Adam Khoo
adam@akltg.com

Copyright ©
Adam Khoo Learning Technologies Group Pte Ltd 2017
 Lesson 4
Trade The Range Strategy
FX M15

By Adam Khoo
adam@akltg.com

Copyright ©
Adam Khoo Learning Technologies Group Pte Ltd 2017
 Lesson 2
Trend Continuation Entry
(Bounce Version 2)
FX M15

By Adam Khoo
adam@akltg.com

Copyright ©
Adam Khoo Learning Technologies Group Pte Ltd 2018
 Trend Continuation Entry
The Trend Continuation Entry (TCE) is a strategy that seeks to long FX pairs as it makes
a dip on a strong uptrend and shorting FX pairs as it makes a rally on a strong
downtrend

Time frames: M15 optimal

Frequency: 10-15 trades a month
Average Win rate: 50%-60%
Risk to return Ratio: 1: 2
All FX Pairs : GBPUSD, EURUSD, USDJPY, USDCHF, USDCAD
Must use brokers with tight spreads of 1 to 2 pips maximum

Short the Rally

Long The Dip

d Do Stro
re n wn ng
p t tre
g U nd
n
Stro Copyright ©
Adam Khoo Learning Technologies Group Pte Ltd 2018
 Defining an Uptrend
An FX Pair Is Defined to Be On An Uptrend When…

1) 18EMA is above the 50EMA. And, the 50EMA is above the 200SMA

2) Current Swing High is Higher than Previous Swing High… And Current Swing Low is
Higher than Previous Swing Low Current
high

Previous
Current high
high
Previous 18 ema
high
Current
Entry 50 ema Low
Previous
Current Low
Low
Previous
200SMA
Low
rend
p t
g U Copyright ©
n
t ro Adam Khoo Learning Technologies Group Pte Ltd 2018
S
 Defining a Downtrend
An FX Pair Is Defined to Be On An Downtrend When…

1) 18EMA is below the 50EMA. And, the 50EMA is below the 200SMA

2) Current Swing High is Lower than Previous Swing High… And Current Swing Low is
Lower than Previous Swing Low

Previous
Previous high 200SMA
high Current
Current 50 ema high
high
18 ema
Entry
Previous Previous
Low Low

Current
Do Stro Low
wn ng
tre Current
nd Copyright ©
Low
Adam Khoo Learning Technologies Group Pte Ltd 2018
 Identifying A Support Level for Uptrends
• For Going Long On Uptrends, we want to see that the 'Current Swing Low’ is a
reliable support level
• A reliable support level is identified by….
• Price supported by moving average (18 EMA or 50EMA)
• OR at a Fibonacci Level (38.2%, 50% or 61.8%)

Current Swing high

Moving Average 18EMA or

Previous Swing high 50EMA

Fibonacci 38.2%, 61.8%, 50%

Current Swing Low

Previous Swing Low

Copyright ©
Adam Khoo Learning Technologies Group Pte Ltd 2018
 Identifying A Resistance Level for Downtrends

• For Going Short On Downtrends, we want to see that the 'Current Swing High’
is a reliable resistance level
• A reliable resistance level is identified by….
• Price resisted by moving average (18 EMA or 50EMA)
• OR at a Fibonacci Level (38.2%, 50% or 61.8%)

Previous
Swing high Current
Swing high

Fibonacci 38.2%, 61.8%, 50%

Previous
Swing Low
Current
Swing low

Copyright ©
Adam Khoo Learning Technologies Group Pte Ltd 2018
 Trigger for a Long Trade

• When Price is at a reliable support level on an uptrend dip, we initiate a

long entry when we have a ‘Trigger’ from the Price action
• The ‘Trigger’ will be a Bullish Engulfing Candle or a Breakout from a
Consolidation of Candles

Bullish Engulfing Candle

• A Bearish candle followed by a Bullish Candle
• Body of the Bullish Candle fully Engulfs Body of the Bearish Candle

Entry: Buy Stop

Support
Stop Loss

Copyright ©
Adam Khoo Learning Technologies Group Pte Ltd 2018
 Trigger for a Long Trade

• When Price is at a reliable support level on an uptrend dip, we initiate a

long entry when we have a ‘Trigger’ from the Price action
• The ‘Trigger’ will be a Bullish Engulfing Candle or a Breakout from a
Consolidation of Candles

Breakout from a Consolidation of Candles (at least 4)

• Four or more relatively small candles consolidate at the support level
• Enter upon price breaking above the high of the consolidation

Entry: Buy Stop

Support Stop Loss

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Adam Khoo Learning Technologies Group Pte Ltd 2018
 Trigger for a Short Trade

• When Price is at a reliable resistance level on an downtrend rally, we

initiate a short entry when we have a ‘Trigger’ from the Price action
• The ‘Trigger’ will be a Bearish Engulfing Candle or a Breakout from a
Consolidation of Candles

Bearish Engulfing Candle

• A Bullish candle followed by a Bearish Candle
• Body of the Bearish Candle fully Engulfs Body of the Bullish Candle
Stop Loss
Support

Entry: Sell Stop

Copyright ©
Adam Khoo Learning Technologies Group Pte Ltd 2018
 Trigger for a Short Trade

• When Price is at a reliable resistance level on an downtrend rally, we

initiate a short entry when we have a ‘Trigger’ from the Price action
• The ‘Trigger’ will be a Bearish Engulfing Candle or a Breakout from a
Consolidation of Candles

Breakout from a Consolidation of Candles (at least 4)

• Four or more relatively small candles consolidate at the resistance level
• Enter upon price breaking below the low of the consolidation

Resistance Stop Loss

Entry Sell Stop

Copyright ©
Adam Khoo Learning Technologies Group Pte Ltd 2018
 TCE Long Setup Entry Rules
1) FX Pair on an uptrend (M15 Candles)
1) Price> 18EMA > 50EMA > 200SMA
2) Current Swing High higher than Previous Swing High, Current Swing low higher than Previous
Swing Low
2) Higher time frame H1candles on Uptrend (Price>18EMA>50EMA>200SMA)
3) Current swing low is at a Reliable Support
1) Moving average support (18EMA, 50EMA) AND/OR
2) Fibonacci level 38.2%, 50% or 61.8% Bullish Engulfing
4) Trigger For a Long Trade
1) Bullish Engulfing Pattern
2) Consolidation of 4 or more Small Candles

Current Swing high Consolidation (>=4 candles)

Previous Swing high

Fibo level
Current Swing Low
= Fibonacci level and/Or EMA support

Previous Swing Low

Copyright ©
EMA Adam Khoo Learning Technologies Group Pte Ltd 2018
 TCE Long Setup Entry Rules
5) Entry: Buy Stop Order above Engulfing Pattern OR Consolidation (round to nearest pip+ spread)
6) Stop Loss: Place a Sell Stop Order just below the Current Swing Low
7) The stop loss distance (Entry to Stop Loss) will be the 1R distance. This should be at least 8 pips
8) Target Price: Sell Limit Order 2R above the entry price.

Low Risk Filters

• No major news release within the next 10 candles (i..e 150 mins for M15)
• Exit before major red news if stop loss or Target profit not reached

Target Price
Current Swing high

2R
Previous Swing high
Entry
Fibo level 1R Current Swing Low
Stop loss

Previous Swing Low

EMA Copyright ©
Adam Khoo Learning Technologies Group Pte Ltd 2018
M15 TCE Long Setup -GBPUSD
Previous swing high
Target Price Sell Limit Order 1.3534

GBP USD 2 Jan Current swing high

18EMA>50EMA>200SMA 2R =18 pips

Entry Buy Stop Order 1.3516

Bullish Engulfing 1R =9 pips

Stop Loss
Sell Stop Order 1.3507

Previous swing low

Current swing low @

50EMA support

Copyright ©
Adam Khoo Learning Technologies Group Pte Ltd 2018
 TCE Long Setup- GBPUSD
H1 H1 Must Be Aligned

ENTRY
GBPUSD 2 Jan

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Adam Khoo Learning Technologies Group Pte Ltd 2018
 TCE Long Setup- GBPUSD
Target price Reached

Target Price
Sell Limit Order 1.3534

Entry upon price break

above high of Engulfing
Pattern

Entry Buy Stop Order 1.3516

Stop Loss
Sell Stop Order 1.3507

Bullish Engulfing
M15
TCE Long Setup -CHFJPY
Sell Limit Order 1.3534

Target Price
CHFJPY 16 May
Current swing high
18EMA>50EMA>200SMA 2R =16 pips

Previous swing high

Buy Stop Order 1.3516
Entry

1R =8 pips

Consolidation Stop Loss

Sell Stop Order 1.3507

Previous swing low Current swing low @

50EMA support

Copyright ©
Adam Khoo Learning Technologies Group Pte Ltd 2018
 TCE Long Setup- CHFJPY
H1 H1 Must Be Aligned
ENTRY

CHFJPY 16 May

Copyright ©
Adam Khoo Learning Technologies Group Pte Ltd 2018
 TCE Long Setup- CHFJPY
Target price Reached

Sell Limit Order 1.3534 Target Price

Entry upon price break

above high of
Consolidation Pattern

Entry Buy Stop Order 1.3516

1R =8 pips

Stop Loss Sell Stop Order 1.3507

Consolidation
 M15 TCE Long Setup -USD JPY

Previous swing high Current swing high

Target Price
USD JPY 18 Oct Sell Limit Order 113.05
18EMA>50EMA>200SMA
2R =18 pips

Buy Stop Order 112.96

Entry

4 candle consolidation 1R =9 pips

Stop Loss
Sell Stop Order 112.87

Previous swing low

Current swing low
at 50MA support
 TCE Long Setup- USD JPY
H1 Must Be Aligned
H1
ENTRY

USD JPY 18 Oct

 TCE Long Setup- USD JPY
Target price Reached
Sell Limit Order 113.05

Target Price

Entry upon price

breakout of
consolidation
Entry Buy Stop Order 112.96

Stop Loss Sell Stop Order 112.87

 M15 TCE Long Setup -NZDUSD

Current swing high

NZD USD 28 Dec Previous swing high

Buy Stop Order 0.7104 Entry
18EMA>50EMA>200SMA
Bullish
1R =8 pips Engulfing

Sell Stop Order 0.7096 Stop Loss

Current swing low @

18EMA support
Previous swing low
 TCE Long Setup- NZDUSD
Current Swing Low is also a Fibo 38.2% Level

NZDUSD 28 Dec

38.2%
 TCE Long Setup- NZDUSD
Target price Reached

Target Price Sell Limit Order 0.7120

Entry upon price break

above high of Engulfing 2R =16 pips
Pattern
Entry Buy Stop Order 0.7104

1R =8 pips
Stop Loss Sell Stop Order 0.7096

Bullish Engulfing
 TCE Short Setup Entry Rules
1) FX Pair on an downtrend (M15 Candles)
1) Price< 18EMA < 50EMA < 200SMA
2) Current Swing High Lower than Previous Swing High, Current Swing low lower than Previous
Swing Low
2) Higher time frame H1 candles on downtrend (Price<18EMA<50EMA<200SMA)
3) Current swing high is at a Reliable Resistance
1) Moving average resistance (18EMA, 50EMA) AND?OR
2) Fibonacci level 38.2%, 50% or 61.8%
4) Trigger For a Short Trade
1) Bearish Engulfing Pattern
2) Consolidation of 4 or more Small Candles
Bearish Engulfing

Consolidation (>=4 candles)

Previous
EMA Swing high Current
Swing high
Fibo level
Current Swing High
Previous = Fibonacci level and/Or EMA Resistance
Swing Low
Current Swing low
 Short Setup Entry Rules
5) Entry: Sell Stop Order below Bearish Engulfing OR Consolidation (round to nearest pip+ spread)
6) Stop Loss: Place a Buy Stop Order just above the Current Swing High
7) The stop loss distance (Entry to Stop Loss) will be the 1R distance. This should be at least 8 pips
8) Target Price: Buy Limit Order 2R below the entry price.

Low Risk Filters

• No major news release within the next 10 candles (i..e 150 mins for M15)
• Exit before major red news if stop loss or Target profit not reached

Previous
Swing high Current
EMA Swing high
Stop loss
1R
Fibo level Entry
2R
Previous
Swing Low Target Price
Current
Swing low
Copyright ©
Adam Khoo Learning Technologies Group Pte Ltd 2018
M15 TCE Short Setup- GBPUSD

GBPUSD 11 Jan Apr

18EMA<50EMA<200MA
Current
Previous swing high
swing high at 50EMA

Stop Loss Buy Stop

Order 1.3498

Bearish 1R =13 pips

Engulfing

Sell Stop
Previous Entry Order 1.3485

swing low
Target Price 2R =26 pips
Buy Limit Order 1.3459
Current
Copyright © swing low
Adam Khoo Learning Technologies Group Pte Ltd 2018
 TCE Short Setup-GBPUSD
GBPUSD 11 Jan H1 is Aligned
18EMA<50EMA<200MA

ENTRY
M15 TCE Short Setup- GBPUSD
Target price Reached

GBP USD 11 Jan

Stop Loss
Buy Stop
Order 1.3498
1R =13 pips
Entry
Sell Stop
Order 1.3485

2R =26 pips
Target Price
Buy Limit Order 1.3459
M15 TCE Short Setup- EURUSD

EURUSD 25 Apr
18EMA<50EMA<200MA Previous Current
swing high swing high
at 50EMA & 61.8%

Buy Stop
Order 1.2216

Stop Loss
Bearish 1R =11 pips
Engulfing
Entry
Sell Stop
Order 1.2205
Previous
swing low
Target Price 2R =22 pips
Buy Limit Order 1.2183

Current
swing low
 TCE Short Setup-EURUSD
Resistance is a Fibo 61.8% Level

EURUSD 26 Apr
18EMA<50EMA<200MA
M15 TCE Short Setup- EURUSD
Target price Reached

EURUSD 26 Apr

Stop Loss
Buy Stop
1R =11 pips Order 1.2216

Entry
Sell Stop
Order 1.2205

2R =22 pips
Target Price
Buy Limit Order 1.2183
 TCE Short Setup- USDCAD

USDCAD 4 Apr 18EMA<50EMA<200MA

Previous Current
swing high swing high
at 50% Fibo Level

Previous Buy Stop Stop Loss

Order 1.2279
swing low Bearish
1R =8 pips
Sell Stop Engulfing
Order 1.2271 Entry

2R =16 pips

Buy Limit Order 1.2755 Target Price

Current
swing low
 TCE Short Setup-USDCAD
Resistance is a Fibo 50% Level

USDCAD 4 Apr 18EMA<50EMA<200MA

 TCE Short Setup- USDCAD
Target price Reached

USDCAD 6 Apr

Buy Stop
Stop Loss Order 1.2279

1R =8 pips
Sell Stop
Entry Order 1.2271

2R =16 pips

Target Price
Buy Limit Order 1.2755

Copyright ©
Adam Khoo Learning Technologies Group Pte Ltd 2018
 High Probability TCE Setups
For the TCE setups with the highest probability of success, I look for …

1) Price retrace to a Moving Average Support/Resistance AND

2) Moving Average Support/Resistance has been recently tested to be reliable
3) Price retracement to a Fibonacci level (50%, 61.8%) is an Added Bonus
4) Price has not moved too far from the current swing low (for longs) and current
swing high (for shorts)
5) Price is not too near the current swing high (for longs) and current swing low (for
shorts)
6) Stop loss is also below a tested support on H1 (long setups) and above tested
resistance (for short setups)

Copyright ©
Adam Khoo Learning Technologies Group Pte Ltd 2018
 High Probability TCE Setups
For the TCE setups with the highest probability of success, I look for …

1) Price retrace to a Moving Average Support/Resistance AND

2) Moving Average Support/Resistance has been recently tested to be reliable
3) Price retracement to a Fibonacci level (50%, 61.8%) is an Added Bonus
4) Price has not moved too far from the current swing low (for longs) and current
swing high (for shorts)
5) Price is not too near the current swing high (for longs) and current swing low (for
shorts)
6) Stop loss is also below a tested support on H1 (long setups) and above tested
resistance on H1 (for short setups)

Copyright ©
Adam Khoo Learning Technologies Group Pte Ltd 2018
USDJPY M15 Support at 18EMA
TP

Entry
SL
 USDJPY H1 Support at 6EMA
TP
Entry
SL

On H1 timeframe, our SL is below

the 6EMA support
NZDUSD M15 Support at 18EMA
TP

Entry

SL
NZDUSD H1 Support at 6EMA
TP

Entry
SL
On H1 timeframe, our SL is below
the 6EMA support
AUDCHF M15 Support at 50EMA

TP

Entry

SL
 AUDCHF H1 Support at 18EMA/50EMA

TP

Entry
SL

At H1 time frame, our SL is above

the 18EMA/50EMA support
 Lesson 2
Trend Continuation Entry
FX M15

By Adam Khoo
adam@akltg.com

Copyright ©
Adam Khoo Learning Technologies Group Pte Ltd 2018
FX Momentum Breakout
M15/ H1

By Adam Khoo
support@piranhaprofits.com

Copyright ©
Adam Khoo Learning Technologies Group Pte Ltd 2019
 FX Momentum Breakout
The Momentum Breakout (MB) is a strategy that seeks to long the strongest FX pair as
it Breakouts from Resistance Levels and shorting the Weakest FX pair as it Breakdowns
from Support Levels

Time frames: M15 or H1 optimal

Frequency: 10-15 trades a month
Average Win rate: 50%-60%
Risk to return Ratio: 1: 1.5 or More
All FX Pairs : GBPUSD, EURUSD, USDJPY, USDCHF, USDCAD

Copyright ©
Adam Khoo Learning Technologies Group Pte Ltd 2019
 Identify the Pair to Trade
• Use the “Currency Strength Meter” to identify the strongest currency and the
weakest currency over the Higher Timeframe
• (If you are trading on the H1 timeframe, look at the H4 Timeframe on the Currency
Strength Meter)
• (If you are trading on the M15 timeframe, look at the H1 Timeframe on the
Currency Strength Meter)

• Generally Currencies 60+ and above are strong and currencies 40 and below are weak
• Buy the strongest currencies and sell the weakest currencies
• E.g. USD Strong, NZD Weak. We Look to Short NZDUSD on the lower time frame
• E.g. EUR strong, JPY weak, We Long EURJPY on the lower time frame

Copyright ©
Adam Khoo Learning Technologies Group Pte Ltd 2019
 Chart Setup (Long)
H1 Lower TF, H4 Higher TF
H1 H4
6EMA, 18EMA, 50EMA 6EMA, 18EMA, 50EMA
Average True Range (14 Period)

At Breakout…
6EMA > 18EMA > 50EMA
Price > 18EMA

6EMA > 18EMA > 50EMA

Price > 18EMA

Copyright ©
Adam Khoo Learning Technologies Group Pte Ltd 2019
 FX Momentum Breakout Entry & Exit
(Long Setup)
Fibonacci Level 161.8 Take Profit:
Sell Limit

B: Swing High 1.3R or More

Retrace at
least 1-2 ATR
50%
retracement Entry: Buy Limit

1R => 2ATR
Resistance A = Resistance
Support 5-10 pips
Stop Loss

6EMA
18EMA
50EMA Copyright ©
Adam Khoo Learning Technologies Group Pte Ltd 2019
 FX Momentum Breakout Entry & Exit
(Long Setup)
• Find currency pair to trade
• Check the Currency Strength Meter on Higher Timeframe (e.g. H4)
• Buy Strong (60+) and Sell Weak Currency (40-)
• Check Higher timeframe Uptrend (i.e. H4: 6EMA> 18EMA>50EMA, Price > 18EMA)
• Check Lower timeframe Uptrend (i.e. H1: 6EMA> 18EMA>50EMA, Price > 18EMA)
• H1 Price Consolidating (Draw Resistance Line), Wait for Breakout and a Swing High
• Identify 50% Retracement Level and 161.8 Extension Using Fibonacci Tool
• Connect B (Swing high) and Drag to A (Resistance Level)

Placing Orders
• Place a Buy Limit Order at 50% Retracement Level
• Ensure retracement is at least 2 ATR or….
• Retracement at least 1 ATR with a support line level
• Place a Stop Loss 5-10 pips below Resistance level
• Distance from Entry to Stop loss is 1R
• Ensure 1R is at least 2 ATR
• Place a Take Profit Order at 161.8 Level
• Ensure at least 1.3R to 1.5R profit
 FX Momentum Breakout
B

Various Breakout Patterns

C =50%
Resistance

C =50%

Resistance
A
 FX Momentum Breakout

Various Breakout Patterns

B

C =50%

Resistance A

GAP
23 April CADCHF H1 Long Momentum Breakout

H4 On H4: CAD Strong and CHF Weak

 23 April CADCHF H1 Long Momentum Breakout

Take Profit 0.7627 161.8

H1
22 pips
B
= 1.46R

Buy Limit 0.7605 0.50

1R = 15 pips
Resistance 0.7595 (> 2 ATR) A
Stop Loss 0.7590
10 April AUDCHF H1 Long Momentum Breakout

H4 On H4: AUD Strong and CHF Weak

10 April AUDCHF H1 Long Momentum Breakout

Take Profit 0.7175

161.8
H1
32 pips
B
= 1.6R

Buy Limit 0.7143 0.50

1R = 20 pips
Resistance 0.7128 (> 2 ATR) A
Stop Loss 0.7123
 Chart Setup (Short)
H1 Lower TF, H4 Higher TF

H1 H4
6EMA, 18EMA, 50EMA 6EMA, 18EMA, 50EMA
Average True Range (14 Period)

At Breakout…
6EMA < 18EMA < 50EMA
Price < 18EMA
6EMA < 18EMA < 50EMA
Price < 18EMA

Copyright ©
Adam Khoo Learning Technologies Group Pte Ltd 2019
 FX Momentum Breakout Entry & Exit
(Short Setup)
50EMA
18EMA
6EMA
Stop Loss
Resistance A = Resistance 5-10 pips

Support 1R => 2ATR

50%
retracement Entry: Sell Limit
Retrace at
least 1-2 ATR

B: Swing low
1.3R or More

Take Profit:
Fibonacci Level 161.8 Buy Limit

Copyright ©
Adam Khoo Learning Technologies Group Pte Ltd 2019
 FX Momentum Breakout Entry & Exit
(Short Setup)
• Find currency pair to trade
• Check the Currency Strength Meter on Higher Timeframe (e.g. H4)
• Buy Strong (60+) and Sell Weak Currency (40-)
• Check Higher timeframe Downtrend (i.e. H4: 6EMA< 18EMA< 50EMA, Price < 18EMA)
• Check Lower timeframe Downtrend (i.e. H1: 6EMA < 18EMA <50EMA, Price < 18EMA)
• H1 Price Consolidating (Draw Support Line), Wait for Breakout and a Swing Low
• Identify 50% Retracement Level and 161.8 Extension Using Fibonacci Tool
• Connect B (Swing Low) and Drag to A (Support Level)

Placing Orders
• Place a Sell Limit Order at 50% Retracement Level
• Ensure retracement is at least 2 ATR or….
• Retracement at least 1 ATR with a support/resistance level
• Place a Stop Loss 5-10 pips above Support level
• Distance from Entry to Stop loss is 1R
• Ensure 1R is at least 2 ATR
• Place a Take Profit Order at 161.8 Level
• Ensure at least 1.3R profit
23 April CHFJPY H1 Short Momentum Breakout

H4 On H4: JPY Strong and CHF Weak

23 April CHFJPY H1 Short Momentum Breakout

H1

Stop Loss 110.22 A

Support 110.17 1R = 19 pips
0.50
(> 2 ATR) Sell Limit 110.03

33 pips
B
= 1.7R
Take Profit 109.70 161.8
3 May EURUSD M15 Short Momentum Breakout

H1

On H1: EUR weak and USD Strong

 3 May EURUSD M15 Short Momentum Breakout

M15

Stop Loss 1.1175

5 pips

Support 1.1171 A
1R = 11 pips
(> 2 ATR)

Sell Limit 1.1164 0.50

14 pips B
= 1.3R

Take Profit 1.1150 161.8

FX Momentum Breakout
FX H1/H4

By Adam Khoo
support@piranhaprofits.com

Copyright ©
Adam Khoo Learning Technologies Group Pte Ltd 2019