ABOUT US

Making money consistently in the Forex market

takes years of experience which includes losing
a lot of money in the process. We are a team of
more than 15 professional traders who have
spent years compiling, testing, organizing, and
consistently updating trading method to create
our own new version, which is considered to be
the easiest and most profitable trading system.

We scan the markets 24/7 every single day. So

to coach you on Forex Signals based on our
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technical analysis, we have published this
guide. LEARN FOREX WITH PAFX is the guide
that is going to finally take your trading to
where it should be, consistent, profitable, easy
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t.me/priceactionforexltd Page|I
The easy to follow strategies detailed in The
Complete Guide To Forex Trading will provide
you with profit making techniques that can be
quickly learned. All that you have to do is to
spend as much time as you can to master the
method that we are going to share with you and
use it to trade any financial market. We trade
our expertise to save you from the losses and
make you money from the beginning

t.me/priceactionforexltd Page|II
 CONTENTS
Topic 1: What is Forex ................................................ 01
Topic 2: Advantages of Forex Market ............................. 02
Topic 3: What is Traded in Forex ................................... 05
Topic 4: Who Participates in Forex Market.......................06
Topic 5: When to Trade.................................................09
Topic 6: Currency Pair...................................................11
Topic 7: How to Generate Profit in Forex...........................13
Topic 8: How do I Start Trading......................................14
Topic 9: Practicing with Demo Account............................18
Topic 10: Intro to MT4 Platform......................................22

Topic 11: Understanding SL and TP..................................33

Topic 12: Types of Orders...............................................35
Topic 13: How to Take Multiple TP Trade..........................38
Topic 14: How to Place Limit Order..................................40
Topic 15: How to Delete Limit Order................................41
Topic 16: How to Close Half Trade...................................42
Topic 17: How to Move SL to Entry...................................43

t.me/priceactionforexltd Page|III
 CONTENTS
Topic 18: How to Add New Pair ..................................... 44
Topic 19: Understanding Charts .................................. 45
Topic 20: How to Choose Best Broker............................ .48
Topic 21: Types of Forex Market Analysis..........................54

t.me/priceactionforexltd Page|IV
Topic 1: What is Forex?

The foreign exchange market, which is usually known

as “forex” or “FX” Market which is the world’s most
exciting and dynamic market. With $4 trillion traded
every day, it is also the largest financial market in the
world.

In simple words it’s the global market that allows one

to trade two currencies against each other. If you think
one currency will be stronger versus the other, and you
end up correct, then you can make a profit.

Assuming you’re an American visiting Japan, you’ve

sold dollars and bought yen. Before you fly back home,
you stop by the currency exchange booth to exchange
the yen that you miraculously have left over and notice
the exchange rates have changed.

It’s these changes in the exchange rates that allow you

to make money in the foreign exchange market.

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Topic 2: Advantages of Forex market

So, why trade Forex? There are many reasons to trade

in Forex. If we ask four different people, you might get
more than four different answers. Primarily, making
money is the most frequently cited reason for why
trade Forex. Let us now consider the following reasons
why so many people are choosing forex market.

Forex market never sleeps

The Forex market works 24 hours and 5-1/2 days a
week. Because governments, corporates and private
individuals who require currency exchange services
are spread around the world, so trading on the forex
market never stops. Activity on the forex market
follows the sun around the world, so right from the
Monday morning opening in Australia to the afternoon
close in New York. At any point of the day you can find
an active pair to trade.

Endless Profit Opportunity

A trader in forex can trade both ways. It means a forex
trader can play the market and make profits
irrespective of whether the market is going up, down
or is in tight range. So irrespective of the event that has
triggered the movement – forex traders do not care.

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Topic 2: Advantages of Forex market (cont'd)

High Liquidity:

The high volumes traded globally lead to high

liquidity. The big advantage of liquidity is that you can
always find demand to sell or buy the currency pair
you wish. Forex is the most liquid market.

Low Cost
Most forex accounts trade with little or no commission
and there is no exchange or data license fees. 
Generally, the retail transaction fee (the bid/ask
spread) is typically less than 0.1% under normal
market conditions. With larger dealers (where
volumes are huge), the spread could be as low as
0.05%.No additional cost required.

Leverage:

Leverage Leverage is the mechanism by which a trader

can take a position much larger than the initial
investment. Leverage is one more reason why you
should trade in forex. Few currency traders realize the
advantage of financial leverage available to them.

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 Topic 2: Advantages of Forex market (cont'd)

For example, if you are trading in the equity market,

the maximum leverage a stock broker is offered is 1:2
but in case of the forex market, you will get a leverage
up to 1:500 and in many parts of the world even higher
leverage is available. For this reason, it is not hard to
see why forex trading is so popular.

High leverage allows a trader with small investment to

trade higher volumes of currencies and thus provide
the opportunity to make significant profits from the
small movement in the market. However, if the market
is against your assumption you might lose a significant
amount too. Therefore, like any other market, it is a
two-way sword.

Accessibility

Forex is an internet based virtual market which is

active 24*5. You can access it from anywhere in the
world. All you need is a Computer or Smartphone and
internet connection. You can open/close trades from
your phone. Which is super convenient. Also, most of
the brokers allow you to deposit and withdraw funds
from mobile as well.

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 Topic 3: What is Traded in Forex

The simple answer is MONEY.

Because you’re not buying anything physical, forex
trading can be confusing so we’ll use a simple analogy
to help explain.

Think of buying a currency as buying a share in a

particular country, kinda like buying shares in a
company. The price of the currency is usually a direct
reflection of the market’s opinion on the current and
future health of its respective economy.

In forex trading, when you buy, say, the Japanese yen,

you are basically buying a “share” in the Japanese
economy. Once you sell those “shares” back to the
market, hopefully, you will end up with a profit.

In general, the exchange rate of a currency versus

other currencies is a reflection of the condition of that
country’s economy, compared to other countries’
economies.

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Topic 4: Who Participates in Forex market

In the above diagram, we can see that the major banks

are the prominent players and smaller or medium
sized banks make up the interbank market. The
participants of this market trade either directly with
each other or electronically through the Electronic
Brokering Services (EBS) or the Reuters Dealing 3000-
Spot Matching.
The competition between the two companies – The EBS
and the Reuters 3000-Spot Matching in forex market is
similar to Pepsi and Coke in the consumer market.
Some of the largest banks like HSBC, Citigroup,

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Topic 4: Who Participates in
Forex market (cont'd)

RBS, Deutsche Bank, BNP Paribas, Barclays Bank

among others determine the FX rates through their
operations. These large banks are the key players for
global FX transactions. The banks have the true overall
picture of the demand and supply in the overall
market, and have the current scenario of any current.
The size of their operations effectively lay down the
bid-ask spread that trickles down to the lower end of
the pyramid

The next tier of participants are the non-bank

providers such as retail market makers, brokers, ECNs,
hedge funds, pension and mutual funds, corporations,
etc. Hedge funds and technology companies have taken
significant chunk of share in retail FX but very less
foothold in corporate FX business. They access the FX
market through banks, which are also known as
liquidity providers.

The corporations are very important players as they

are constantly buying and selling FX for their cross-
border (market) purchases or sales of raw or finished
products. Mergers and acquisitions (M&A) also create
significant demand and supply of currencies.

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Topic 4: Who Participates in
Forex market (cont'd)

Sometimes, governments and centralized banks also

intervene in the Foreign Exchange market to stop too
much volatility in the currency market. For instance, to
support the pricing of Yen, the government and
centralized banks buy Yen from the market and sell in
different currencies such as dollars; conversely, to
reduce the value of Japanese Yen, they sell Yen and buy
foreign currency (dollars).

The speculators and retail traders that come at the

bottom of the pyramid pay the largest spread, because
their trades effectively get executed through two
layers. The primary purpose of these players are to
make money trading the fluctuations in the currency
prices. With the advancement of technology and the
internet, even a small trader can participate in this
huge forex market.

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Topic 5: When to Trade

Because forex is a truly global market, you can trade 24

hours a day, five days a week. As one region’s market
day ends, the next region’s market day begins. This
means you can trade on any region’s news as
developments take place.

The forex market is open 24 hours a day from the

Monday morning open in Sydney to the close on Friday
evening in New York. Each trading day can be broken
down into three sessions: the Asian, the European (EU)
and the US. Generally these are referred to as the
Tokyo, London and New York sessions. The Asian
session opens around 21:00 GMT (summer hours) and
closes around 08:00 GMT.

This overlaps with the EU session which opens around

06:00 GMT and closes around 16:00 GMT. Then the US
session, which overlaps with the EU session, opens
around 13:30 GMT and closes around 21:00 GMT. Then
the cycle starts over again with the Asian open. This
means you can theoretically trade forex non-stop from
21:00 Sunday GMT (summer hours) until 21:00 GMT
Friday!

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Topic 5: When to Trade (cont'd)

The times when two sessions overlap are the most

exciting as it is then that you will find high volumes
being traded and maximum volatility which presents
opportunities. The European session has the most
volume traded since it is sandwiched between the
Asian and the US sessions. Approximately 50% of the
daily forex volume goes through the EU session.

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Topic 6: Currency Pair

In this section, we will learn about a few commonly

used currency pair. The most traded, dominant and
strongest currency is the US dollar. The primary reason
for this is the size of the US economy, which is the
world’s largest.
The US dollar is the preferred base or reference
currency in most of the currency exchange
transactions worldwide. Below are some of the most
traded (high liquidity) currency pairs in the global
forex market. These currencies are part of most of the
foreign exchange transactions. However, this is not
necessarily the best currency to trade for every trader,
as this (which currency pair to choose) depends on
multiple factors:

There are three categories of currency pairs:

The “majors“
The “crosses“
The “exotics“

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Topic 6: Currency Pair (cont'd)

The major currency pairs always include the U.S.

dollar.

Major Currencies:

EUR/USD (Euro – US Dollar) 

GBP/USD (British Pound – US Dollar)  
USD/JPY (US Dollar – Japanese Yen) 
USD/CHF ( US Dollar – Swiss Franc)  
EUR/JPY ( Euro – Japanese Yen)  
USD/CAD (US Dollar – Canadian Dollar)  
AUD/USD (Australian Dollar – US Dollar)

Cross-currency pairs do NOT include the U.S. dollar.

Crosses that involve any of the major currencies
are also known as ” minors”.

Exotic currency pairs consist of one major currency

and one currency from an emerging market (EM).

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Topic 7: How to Generate Profit in Forex

You can profit from forex trading by correctly

determining whether one currency in a currency pair
will go up (strengthen) or go down (weaken) relative to
the other currency in the pair.

With forex, you can profit whether the market is rising

or falling. This is because currencies are traded in
pairs. The key is to buy when a currency is low and sell
it back once it is high. Traders use different types of
analysis to determine price movements

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Topic 8: How do I start Trading

Forex Brokers:
Forex brokers are firms that provide traders with
access to a platform that allows them to buy and sell
foreign currencies. Transactions in this market are
always between a pair of two different currencies, so
forex traders either buy or sell the particular pair they
want to trade.

Forex brokers may also be known as a retail forex

broker, or currency trading brokers. Most forex broker
firms handle only a very small portion of the volume of
the overall foreign exchange market.

Retail currency traders use these brokers to gain access

to the 24-hour currency market for purposes of
speculation. Forex broker services are also provided
for institutional clients by larger firms such as
investment banks.

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Topic 8: How do I start Trading (cont'd)

Start trading is quite simple. You can start trading by

following few easy steps:

Step 1: Open a trading account with a broker

 
You need to open an account with a broker in order
to start trading. You can easily register to any
broker using their website link.
After creating account you need to submit your
documents
Once the broker has successfully completed the
verification process, they will send you an account
number by email to confirm that your account is
open.

Step 2: Fund your account

Once your account is open, you’ll need to transfer
funds into it to start trading. You can do this in a
variety of ways. Most brokers allow different
deposit options.
Deposit amount varies depending on your broker.
It starts from $1.

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Topic 8: How do I start Trading (cont'd)

You can also practice a demo account without

funding real money. Every trader should trade in a
demo account for 2-3 months to understand how
forex works

Step 3: Start trading

 
Now you have an online trading account and have
deposited funds, you can start trading.
Log in, choose whether to trade Forex through
spread betting, CFDs or spot FX, pick your pairs and
open a position.
Brokers will send you Login credentials. You can
sign in and participate in trading using MT4 trading
platform from your Computer and Smartphone.

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Topic 9: Practicing With Demo Account

A Forex demo account enables a trader to simulate a

live trading environment - without putting any real
money at risk. It enables a trader to start free online
trading relatively quickly, so that they can practice
trading before risking real money.

All Forex traders should use a Forex demo as their first

Forex account to get a feel of what trading the
currency market is like, as well as to get used to the
broker and the trading platform they are using.
Essentially, it enables traders to practice their trading
skills along with quite a few more enticing benefits.

Most Forex brokers offer the well known MetaTrader

platform. By opening a Forex demo account, you can
familiarise yourself with the trading platform by
making trades without putting real money at risk. This
way you get to learn about how to take a trade, how to
close a trade, and how to use different tools to your
advantage, like different order types and trading
indicators.

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Topic 9: Practicing With Demo Account (cont'd)

When it comes to risking money to make money, a lot

of emotions can come into play. Euphoria and
overconfidence can kick in after a few winning trades.
Frustration and doubt can kick in after a few losing
trades. These emotions can often cloud the trader's
judgement on their next trading opportunity.

Trading on a Forex simulator helps you to identify

these emotions so you can build a routine and plan
around dealing with them. Most beginner traders don't
know what kind of emotions they will face when
winning and losing, so it's probably best to find out
without risking any real money.
Practicing with a demo can help you in many ways.

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Topic 9: Practicing With Demo Account (cont'd)

How to Create Demo Account from Phone:

First you need to download the metatrader 4 app from

Google play store/ App store.

1. After installation, MT4 will

appear like this

2. To create a new demo

account you need to click
on (+) icon and select
“OPEN A DEMO ACCOUNT”.

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Page|19
Topic 9: Practicing With Demo Account (cont'd)

How to Create Demo Account from Phone:

3. Search for a broker. Here

we search for
“TickMill Demo Account”

4. In this step submit your information to complete

account registration

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Topic 9: Practicing With Demo Account (cont'd)

5. Click "Create Account". You have successfully

created your demo account.

Name – the full name of the user, no less than eight

characters long.

Phone – contact phone number in an international

format. For example, +74951234567.  
         
E-mail – e-mail address, for example:
"demo@gmail.com".

Account type – select the type of account.

Leverage – the ratio between borrowed and owned

capital for trading.

Deposit – initial deposit in the basic currency.

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Topic 10: Intro to MT4 Platform

Understanding the MT4 platform is really important to

start your trading career. Here we will discuss a few
basic features of MT4 to make your trading journey
smoother.

First you need to download and install MT4 from here:

https://www.metatrader4.com/en/download

Logging on to the Account

When you are logging on to the account, it is crucial

that you select the appropriate server. You will receive
the server and login details in an email when your
account is created.

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Topic 10: Intro to MT4 Platform (Cont'd)

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Topic 10: Intro to MT4 Platform (Cont'd)

Open a position

In order to open a new position Right Click on a chart

and select Trading. Now you can select a New order or
place a Pending Order at a price above or below the
current market price. ALT + T will give you an option
to place a trade with one click only. You will also be
able to select a trade size based on your preferences.

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Topic 10: Intro to MT4 Platform (Cont'd)

The “Order Window”

In MetaTrader 4, there are two ways of making deals:

“Market Execution” and “Pending Order''. Market
execution sends a request to fll your order immediately
at the next available price. Once you have decided to
buy or sell at the current price press the Buy or Sell
buttons to open a long or short position.

A Pending Order will open your trade when the price

triggers predefined levels. You can enter this order by
Right Clicking on a chart as explained in the “Open a
position” part.

Before you enter the market you can change details in

“Order” window:

• Symbol - a currency pair

• Volume - number of lots
• Stop Loss - the level of Stop Loss
• Take Profit - the level of Take Profit
• Comment – Appear in your report

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Topic 10: Intro to MT4 Platform (Cont'd)

The new position will now be listed in the “Trade” tab

of the “Terminal” window. You can access the terminal
also by Ctrl + T.

Close Position
In order to close a position, highlight the trade in the
“Trade” tab of the “Terminal” window and right click
to obtain the context menu then select Close order.
Double clicking on the open position in the “Trade” tab
of the “Terminal” window will have the same result.
The “Order #” window appears and you click the
Yellow Close bar. If you wish to partially close the
trade, you can specify the volume you wish to close
and then press Close.

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Topic 10: Intro to MT4 Platform (Cont'd)

Place/Modify/delete Stop Loss & Take Profit Orders

Stop Loss - a pending order to close a position that is

moving against you should the market price reach a
predefined level.

Take Profit – a pending order to close a position that

is moving in your favor should the market price
reach a predefined level.

If you place these types of orders you do not have to

sit in front of your computer and wait for the
outcome. Take Profit and Stop Loss orders will be
executed automatically as soon as the price reaches
the order level (see below). You can place Stop Loss
and Take Profit at the time of making a deal by filling
in the “Stop Loss” and “Take Profit” fields in the
“Order” window: In order to delete Stop Loss or Take
profit orders specify its level as equal to zero.

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Topic 10: Intro to MT4 Platform (Cont'd)

What is Pips:

One pip is the smallest unit of change in price. It

stands for ‘percentage in point’. Because most
currency pairs are quoted with four decimal points,
one pip usually equals 0.0001.

A pip is usually the last decimal place of a price quote.

Most pairs go out to 4 decimal places, but there are

some exceptions like Japanese yen pairs (they go out
to two decimal places).

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Topic 10: Intro to MT4 Platform (Cont'd)

For example, for EUR/USD, it is 0.0001, and for USD/JPY,

it is 0.01.

Let’s look at a EUR/USD example. If the price moves

from 1.2853 to 1.2873, it has gone up by 20 pips. If it
goes from 1.2853 down to 1.2792, it’s gone down by 61
pips. Pips provide an easy way to calculate the profit or
loss (also known as the P&L) on a trade

Spread:
The spread is the difference between the bid price and
the ask price. The bid price is the rate at which you can
sell a currency pair and the ask price is the rate at
which you can buy a currency pair (EUR/USD).
Whenever you try to trade any currency pair, you will
notice that there are two prices shown, as shown in the
image below:

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Topic 10: Intro to MT4 Platform (Cont'd)

The spread is essentially the cost of your trading. You

may come across brokers advertising low spreads but
be sure to check what other commissions and costs they
may be charging you.

What is Lot:
Forex is commonly traded in specific amounts called
lots, or basically the number of currency units you will
buy or sell.A lot is a unit to measure the amount of the
deal. Your value of your trade always corresponds to an
integer number of lots (lot size * number of lots).

Trading with the proper position or lot size on each

trade is key to successful forex trading. The position
size refers to how many lots (micro, mini or standard)
you take on a particular trade. The standard size for a
lot is 100,000 units of base currency in a forex trade,
and now we have mini, micro and nano lot sizes that
are 10,000, 1,000 and 100 units respectively.

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Topic 10: Intro to MT4 Platform (Cont'd)

What is long in forex trade?

Whenever you purchase (buy) a currency pair, it is

called going long. When a currency pair is long, the first
currency is purchased (indicating, you are bullish)
while the second is sold short (indicating, you are
bearish). For example, if you are purchasing a EUR/USD
currency pair, you expect that the price of Euro will go
high and the price of USD will go down.

What is short in forex trade? 

When you go short on a forex, the first currency is sold

while the second currency is bought. To go short on a
currency means you sell it hoping that its prices will
decline in future.

In forex trade, whether you are making “long” (buying

a currency pair) or “short” (selling a currency pair)
trades, you are always long on one currency and short
on another. Therefore, if you sell, or go short on
USD/JPY, then you are long on JPY and short on USD.  It
means you expect the prices of JPY (Japanese yen) will
rise and the price of the USD (US dollar) will fall.

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Topic 10: Intro to MT4 Platform (Cont'd)

Leverage:
Through the use of leverage, traders are able to invest
a small amount of money and trade much larger deal
sizes. This is useful because the movement in currency
rates can be very small, and larger trades represent
larger profits/losses for every pip change in the rate.
Leverage allows you to trade with more money than
you have in your account, because you effectively
“leverage” your free balance to open a larger trade.
Leverage is shown as a ratio, for example 1:100. Note
that leverage amplifies both potential profits and losses
alike.

Let’s say you decide to buy 100,000 EUR and sell USD at
a rate of 1.4100. Your account leverage is 1:200. Do you
need 100,000 US dollars to open the trade? No! With a
leverage of 1:200 you will need to put down only 1/200
of the deal size as the margin, which works out to $500.
Calculate the margin: Leverage 1:200 Deal size =
100,000 Divide 100,000 by 200= 500 Margin = $500 This
is the amount that will be used to cover your potential
losses. In other words, the margin is the actual amount
that you are risking to lose if the trade goes against you.

t.me/priceactionforexltd Page|32
Topic 11: Understanding Take Profit and
Stop Loss

When you place a trade in your trading platform, you

also specify two values called ‘Stop loss’ and Take
profit’. These values tell your broker to automatically
close the trade when it reaches either the desired profit
or an area beyond which the loss will be too much.

Stop loss:

For example, let us say that you cannot afford a loss of

more than 20 pips. Since there is always a chance of
losing a trade, you would want to set the trade to
automatically exit when it goes 20 pips against the
desired direction. So, you specify a certain price as Stop
loss (SL), reaching which the trade will be closed
automatically. You have to set a stop loss to limit the
losses.

Take Profit
Similarly, you set Take profit (TP) value to close the
trade automatically, when the trade reaches a certain
point in the desired direction. For example, you may
want to specify a Take profit of 20 pips after which
you want the trade to be closed automatically. Since
the price may reverse at any time, You specify a Take
profit value to take the profit automatically before
the price moves in the opposite direction.
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Topic 11: Understanding Take Profit and
Stop Loss

The ratio of the amount of take profit pips to the

amount of Stop loss pips is popularly known as the risk
to reward ratio.

Let us see a detailed example. You predict that the

price of EUR/USD will go up. You decide to take
advantage of it to get some profit.

So, you would want to buy EUR/USD. And you see the
Ask price as 1.1345. You decide to take profit when the
pair goes up by 20 pips. Similarly, you want to exit out
of the trade when it goes down by 20 pips.

So, you will place the order with the following values:

Take profit: 1.1365

Stop Loss: 1.1325

Note that here our risk to reward ratio is 1:1.

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Topic 12: Types of Orders

There are various types of orders depending on how

you enter and exit a trade. Here, we are going to look at
the most important types of orders supported by
leading brokers.

Market Order
Limit Order
Stop Order

Market Order

The example order, we looked to understand the stop

loss and take profit was a market order. If you instantly
enter the market at the best available price, it is called
a market order. It is also known as instant execution
order.

Limit Entry Order

If you buy below the market price or sell above the

market price, it is called as a limit entry order. Here the
system will not execute the order immediately, but
sometime in the near future when the currency pair
reaches a desired price.

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Topic 12: Types of Orders (Cont'd)

Since the order is pending until the desired price is

reached, it is also known as a pending order. (There is
another type of pending order called ‘Stop entry order’
and we will cover that next).

The advantage of a pending order is that you don’t

have to sit in front of your computer and keep
watching the chart until the market reaches the desired
price. You can just place a pending order so that the
system will automatically execute the order when the
price is reached.

There are two types of limit orders:

Buy Limit: Buying below the market price.

Sell Limit: Selling above the market price.

Let us look at an example for buy limit. Assume that

the current price of USD/JPY is 111.25. You don’t want
to buy it right away, but you want to wait until the
price goes down to 111.15. You predict that the price
will rise again after it goes down to 111.15. So, you
place a buy limit order and set the trade to execute
when the price reaches 111.15.
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Topic 12: Types of Orders

Sell limit is similar. Let us say that the current price of

GBP/USD is 1.2811. You don’t want to go short right
away, but you want to wait until the price goes up to
reach 1.2825. According to your analysis, the price may
come down again with a quick bearish trend after it
hits 1.2825. So, you place a sell limit order at 1.2825.

Use stop loss order to enter trades

This is also a pending order, but it is the exact opposite

of the limit entry order. If you buy above the market
price or sell below the market price, it is called as a
stop entry order.

The stop entry order also has two types:

Buy Stop: Buying above the market price.
Sell Stop: Selling below the market price.

In other words, you execute a buy stop order when you

believe that after the price goes up to a certain level, It
will continue in the upward direction. In the same way,
you would place a sell stop order when you believe that
after the price goes down to a certain level, it will
continue in the downward direction.

t.me/priceactionforexltd Page|37
Topic 13: How to Take Multiple TP Trade

Divide your regular lot size into two positions. 

If your regular lot size is 0.10 then divide it into two
positions each 0.05 
Take same trade twice and set TP-1 in first trade
and TP-2 in second trade
When TP-1 hits first position will be closed
automatically
After hitting TP-1 move SL to Entry Price for second
position.

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Topic 13: How to Take Multiple TP Trade (Cont'd)

t.me/priceactionforexltd Page|39
Topic 14: How to Place Limit Order

We will place this limit order.

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Topic 15: How to Delete Limit Order

Press and Hold to delete

the order.

t.me/priceactionforexltd Page|41
Topic 16: How to Close Half

Click the tick icon to close half.

Adjust your lot size by pressing the number.

Press "CLOSE WITH PROFIT" to close half of

your trade.

t.me/priceactionforexltd Page|42
Topic 17: How to Move SL to Entry

Click the "edit" icon

to move SL to Entry.

Adjust your SL to
Entry price and press
"Modify".

t.me/priceactionforexltd Page|43
Topic 18: How to Add New Pair

Click the "Plus" icon .

Search for desired pair to add.
Click on that pair to add in your list.

t.me/priceactionforexltd Page|44
Topic 19: Understanding Charts

In MetaTrader 4, you can see as many real time charts

as you wish, all on one screen. For any currency pair
and for any time period. A useful trick is to use ALT +
R. This will automatically organize all your current
open charts. The following types of charts are available
in MetaTrader 4:

Line Chart
The chart x-axis is for a different time periods
(minutes, hours, days, months etc.), and the y-axis is for
a price. The price on the chart shows the close price for
the period, i.e. the bid of the last quote for this period.
All sequential points are joined by lines:

t.me/priceactionforexltd Page|45
Topic 19: Understanding Charts (Cont'd)

Bar Chart
The chart is created with a use of bars. Each bar has a
high (top), a low (bottom), an opening price (left
horizontal little line) and a closing price (right
horizontal little line) for the specifed period of time (for
example, an hour): It is recommended that you use this
chart type for periods of 5 minutes or more. Press Alt +
1 or select Charts > Bar Chart.

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Topic 19: Understanding Charts (Cont'd)

Candlestick Chart
Candlesticks were developed by Japanese rice trader
Munehisa Homa in 18th century. Candlestick charts
were introduced later in 1800s. Western world knows
candlesticks thanks to Steven Nison and his book:
Japanese Candlesticks Charting Techniques. Press Alt +
2 or select Charts > Candlestick Chart.

t.me/priceactionforexltd Page|47
Topic 20: How to Choose Best Forex Broker

The retail forex market is so competitive that just

thinking about having to sift through all the available
brokers can give you a major headache.

Choosing which forex broker to trade with can be a

very overwhelming task especially if you don’t know
what you should be looking for.In this section, we will
discuss the qualities you should look for when picking a
forex broker.

1. Security

The first and foremost characteristic that a good broker

must have is a high level of security. After all, you’re
not going to hand over thousands of dollars to a person
who simply claims he’s legit, right?
Fortunately, checking the credibility of a forex broker
isn’t very hard. There are regulatory agencies all over
the world that separate the trustworthy from the
fraudulent.

t.me/priceactionforexltd Page|48
Topic 20: How to Choose Best Forex Broker (cont'd)

Below is a list of countries with their corresponding

regulatory bodies:

United States: National Futures Association (NFA) and

Commodity Futures Trading Commission (CFTC)

United Kingdom: Financial Conduct Authority (FCA)

and Prudential Regulation Authority (PRA)

Australia: Australian Securities and Investment

Commission (ASIC)

Switzerland: Swiss Federal Banking Commission (SFBC)

Germany: Bundesanstalt für Finanzdienstleistungsaufsicht

(BaFIN)

France: Autorité des Marchés Financiers (AMF)

Canada: Investment Information Regulatory Organization

of Canada (IIROC)

Before even THINKING of putting your money in a

broker, make sure that the broker is a member of the
regulatory bodies mentioned above.
t.me/priceactionforexltd Page|49
Topic 20: How to Choose Best Forex Broker (cont'd)

2. Transaction Costs

No matter what kind of currency trader you are, like it

or not, you will always be subject to transaction costs.
Every single time you enter a trade, you will have to
pay for either the spread or a commission so it is only
natural to look for the most affordable and cheapest
rates.

Sometimes you may need to sacrifice low transactions

for a more reliable broker.Make sure you know if you
need tight spreads for your type of trading, and then
review your available options. It’s all about finding the
correct balance between security and low transaction
costs.

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Topic 20: How to Choose Best Forex Broker (cont'd)

3. Deposit and Withdrawal

Good forex brokers will allow you to deposit funds and

withdraw your earnings hassle-free.
Brokers really have no reason to make it hard for you
to withdraw your profits because the only reason they
hold your funds is to facilitate trading.

Your broker only holds your money to make trading

easier so there is no reason for you to have a hard time
getting the profits you have earned. Your broker should
make sure that the withdrawal process is speedy and
smooth.

4. Trading Platform

In online forex trading, most trading activity happens

through the brokers’ trading platform. This means that
the trading platform of your broker must be user-
friendly and stable.
When looking for a broker, always check what its
trading platform has to offer.
Does it offer free news feed? How about easy-to-use
technical and charting tools? Does it present you with
all the information you will need to trade properly?

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Topic 20: How to Choose Best Forex Broker (cont'd)

5. Execution

It is mandatory that your broker fills you at the best

possible price for your orders.

Under normal market conditions (e.g. normal liquidity,

no important news releases or surprise events), there
really is no reason for your broker to not fill you at, or
very close to, the market price you see when you click
the “buy” or “sell” button.

For example, assuming you have a stable internet

connection, if you click “buy” EUR/USD for 1.3000, you
should get filled at that price or within micro-pips of it.
The speed at which your orders get filled is very
important, especially if you’re a scalper.A few pips
difference in price can make that much harder on you
to win that trade.

t.me/priceactionforexltd Page|52
Topic 20: How to Choose Best Forex Broker (cont'd)

6. Customer Service

Brokers aren’t perfect, and therefore you must pick a

broker that you could easily contact when problems
arise.The competence of brokers when dealing with
account or technical support issues is just as important
as their performance on executing trades.Forex brokers
may be kind and helpful during the account opening
process but have terrible “after-sales” support.These
are some well known, regulated broker

https://clicks.pipaffiliates.com/c?c=494385&l=en&p=0

https://www.icmarkets.com/?camp=29023

https://my.octafx.com/open-account/?
refid=ib2671446

https://www.hotforex.com/?refid=337875

https://my.roboforex.com/en/?a=vaxk

https://www.forextime.com/?partner_id=4934882

https://www.exness.com/a/vlda0mm9

t.me/priceactionforexltd Page|53
Topic 21: Types of Forex Market Analysis

There are three ways to analyze and develop ideas to

trade the market.

There are three types of market analysis:

Technical Analysis
Fundamental Analysis
Sentiment Analysis

Technical Analysis
Technical analysis is the framework in which traders
study price movement.
The theory is that a person can look at historical price
movements and determine the current trading
conditions and potential price movement.

Someone who uses technical analysis is called a

technical analyst. Traders who use technical analysis
are known as technical traders.
The main evidence for using technical analysis is that,
theoretically, all current market information is
reflected in the price.

t.me/priceactionforexltd Page|54
Topic 21: Types of Forex Market Analysis (cont'd)

Technical traders generally ascribe to the belief that

“It’s all in the charts!”This simply means that all known
fundamental information is priced into the current
market price.

If price reflects all the information that is out there,

then price action is all one would really need to make a
trade.Technical analysis looks at the rhythm, flow, and
trends in price action.

Now, have you ever heard the old adage, “History tends
to repeat itself“?Well, that’s basically what technical
analysis is all about!

If a certain price held as a major support or resistance

level in the past, forex traders will keep an eye out for
it and base their trades around that historical price
level.

Technical analysts look for similar patterns that have

formed in the past and will form trade ideas believing
that price could possibly act the same way that it did
before.

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Topic 21: Types of Forex Market Analysis (cont'd)

Technical analysis is NOT so much about prediction as

it is about PROBABILITY.

Technical analysis is the study of historical price action

in order to identify patterns and determine
probabilities of the future direction of price.

So how the heck does one “study historical price

action“?

In the world of trading, when someone says “technical

analysis”, the first thing that comes to mind is a chart.
Technical analysts use charts because they are the
easiest way to visualize historical data!

Technical analysts live, eat, and breathe charts which

is why they are often called chartists.
You can look at past data to help you spot trends and
patterns which could help you find some great trading
opportunities.

What’s more is that with all the traders who rely on

technical analysis out there, these price patterns and
indicator signals tend to become self-fulfilling.

t.me/priceactionforexltd Page|56
Topic 21: Types of Forex Market Analysis (cont'd)

As more and more forex traders look for certain price

levels and chart patterns, the more likely that these
patterns will manifest themselves in the markets.

You should know though that technical analysis is VERY

subjective.
Just because Donatello and Raphael are looking at the
exact same chart setup or indicators doesn’t mean that
they will come up with the same idea of where price
may be headed.

The important thing is that you understand the

concepts under technical analysis so you won’t get
nosebleeds whenever somebody starts talking about
Fibonacci, Bollinger Bands, or pivot points.

Fundamental Analysis
Whereas technical analysis involves poring over charts
to identify patterns or trends, fundamental analysis
involves poring over economic data reports and news
headlines. (And nowadays….random tweets from a
certain world leader.)
Fundamental analysis is a way of looking at the forex
market by analyzing economic, social, and political
forces that may affect currency prices.
t.me/priceactionforexltd Page|57
Topic 21: Types of Forex Market Analysis (cont'd)

If you think about it, this makes a whole lot of sense!

Just like in your Economics 101 class, it is supply and
demand that determines price, or in our case, the
currency exchange rate.

Using supply and demand as an indicator of where

price could be headed is easy. The hard part is
analyzing all of the factors that affect supply and
demand.
In other words, you have to look at different factors to
determine whose economy is rockin’ like a Taylor Swift
song, and whose economy sucks.

You have to understand the reasons why and how

certain events like an increase in the unemployment
rate affect a country’s economy and monetary policy
which ultimately, affects the level of demand for its
currency.

The idea behind this type of analysis is that if a

country’s current or future economic outlook is good,
its currency should strengthen.

t.me/priceactionforexltd Page|58
Topic 21: Types of Forex Market Analysis (cont'd)

The better shape a country’s economy is, the more

foreign businesses and investors will invest in that
country. This results in the need to purchase that
country’s currency to obtain those assets.

In a nutshell, this is what fundamental analysis is:

For example, let’s say that the U.S. dollar has been
gaining strength because the U.S. economy is
improving.

As the economy gets better, raising interest rates may

be needed to control growth and inflation.

Higher interest rates make dollar-denominated

financial assets more attractive. In order to get their
hands on these lovely assets, traders and investors have
to buy some greenbacks first. This increases demand
for the currency.

As a result, the value of the U.S. dollar will likely

increase against other currencies with lesser demand.

t.me/priceactionforexltd Page|59
Topic 21: Types of Forex Market Analysis (cont'd)

Sentiment Analysis

Sentiment analysis is used to gauge how other traders

feel about a particular currency pair. Earlier, we said
that price action should theoretically reflect all
available market information. Unfortunately for us
forex traders, it isn’t that simple.

The forex markets do not simply reflect all of the

information out there because traders will all just act
the same way. Of course, that isn’t how things work.
This is why sentiment analysis is important. Each
trader has his or her own opinion of why the market is
acting the way it does and whether to trade in the same
direction of the market or against it.

The market is just like Facebook – it’s a complex

network made up of individuals who want to spam our
news feeds. Kidding aside, the market basically
represents what all traders – you, Warren Buffet, or
Celine from the donut shop – feel about the market.
Each trader’s thoughts and opinions, which are
expressed through whatever position they take, helps
form the overall sentiment of the market regardless of
what information is out there.
t.me/priceactionforexltd Page|60
Topic 21: Types of Forex Market Analysis (cont'd)

The problem is that as retail traders, no matter how

strongly you feel about a certain trade, you can’t move
the forex markets in your favor.

Even if you truly believe that the dollar is going to go

up, but everyone else is bearish on it, there’s nothing
much you can do about it (unless you’re one of the GSs
– George Soros or Goldman Sachs!).As a trader, you
have to take all this into consideration. You need to
perform sentiment analysis.

It’s up to you to gauge how the market is feeling,

whether it is bullish or bearish. Then you have to
decide how you want to incorporate your perception of
market sentiment into your trading strategy.If you
choose to simply ignore market sentiment, that’s your
choice.

But hey, we’re telling you now, it’s your loss!Sentiment

analysis is often used as a contrarian indicator.There
are a couple ideas why this is.
One idea behind this is if EVERYONE (or almost
everyone) shares the SAME sentiment, then it’s time to
go hipster and trade against the popular sentiment.

t.me/priceactionforexltd Page|61
Topic 21: Types of Forex Market Analysis (cont'd)

For example, if everyone and their mamas are bullish

EUR/USD, then it might be time to go short.

Why? Unfortunately, you’ll have to go further down the

School to find out! Ha! Another idea is that most retail
forex traders (unfortunately) suck. Depending on
where you find statistics, between 70-80% of retail
traders lose money.

So if you know that all these unprofitable traders who

are usually wrong are all currently long
EUR/USD….well, theeeeeen. It might be a good idea to
do the opposite of what they do!

Being able to gauge market sentiment aka sentiment

analysis can be an important tool in your toolbox.

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