Easy Pips
Easy Pips
~ Trader.Ali
Hi, my friends call me Trader Ali and I've spent many years trading and researching how to trade effectively.
I've found it to be quite exhausting because there's so much on offer in the way of courses, resources and
information available. I found a lot of systems make big claims yet offered little if any improvement to my trading.
Over the years I've read countless books and purchased numerous trading systems. I even went to those free
trading seminars promising to be everything that end up being no more than a sales pitch for a very expensive
trading course done by professional public speakers that actually have never traded in their life.
I've gone through all the different trading tools and technical indicators on different trading platform trying to make
sense of them and how to use them effectively.
There's a lot to choose from but in the end it all came down to simplicity and using price action as a leading
indicator to help you see market direction.
All you need is proven strategies that you'll learn here to know exactly where to enter and exit your trades without
over complicating things. After trading this way for the last 3 years it still gives me chills knowing how simple
this is yet made to look complicated by many.
There's actually very little "work" required to decide on a trade. Because the more you get bogged down with
technical analysis the less effective your trading strategy becomes. More data equals = information overload.
My goal is to help you understand and more importantly for you to use and implement these trading strategies.
It has taken me a good few months to put my course together to the finest detail so I hope it serves the purpose.
I have covered everything which new and even experienced traders need to know about before you start trading
global markets with confidence, so please make sure to read what I have taken the time to write in detail for you.
The strategy I will share have proven to work for me, and if you can make use of this with my course then I will
have fulfilled my commitment of turning you into a successful and profitable trader.
The course is designed for both new and experienced traders, I have also covered major foundation for you to
have a good grasp and understanding on how to trade the financial market for an income.
I AM ALSO GOING TO COVER MANY IMPORTANT PRINCIPLES REQUIRED TO ATTAIN PROGRESS AS A
TRADER SINCE I DID NOT FIND THESE ASPECTS DISCUSSED IN OTHER TRADING COURSES.
IT'S IMPORTANT THAT YOU GO THROUGH EVERYTHING AS THESE ARE THE BUILDING BLOCKS THAT
FORM A STRONG FOUNDATION TO PLAN YOUR TRADES AND ACHIEVE YOUR FINANCIAL GOALS.
Trader.Ali
Here's what I'll be covering for you in the course and much more:-
☑ Trading as a business and the all important questions to ask yourself. GETTING STARTED
☑ Understanding why most traders lose and why a small percentage win. GETTING STARTED
☑ Role of a Professional Forex Trader — Capital Preservation & Risk Management. A MUST KNOW!
☑ The K.I.S.S. Principle and importance of having the right mindset. A MUST KNOW!
☑ Price Action Analysis — Correct way to analyse and know what to look for. VERY IMPORTANT!
☑ Finding low risk / high reward entry and exit points on any Forex pair. UNIQUE STRATEGY!
☑ Capital to outlay and how to implement proper risk management strategies. A MUST KNOW!
☑ How to scan and find low risk opportunities on different time-frames. POWERFUL STRATEGY!
☑ How to identify major and minor trends using a top-down approach. UNIQUE STRATEGY!
☑ Setting up your charts with support/resistance, overbought/oversold zones. UNIQUE STRATEGY!
☑ How to identify trading ranges and know your profit potential in advance. A UNIQUE STRATEGY!
☑ How to trade market trend reversals and where to place your orders. A MUST KNOW!
☑ How to build your capital with the power of compounding. A MUST KNOW!
☑ Keeping track of your financial and emotional performance. VERY IMPORTANT!
Why is it important to
start with a clean slate?
When your life starts looking and feels like out-of-control, and you’re running round in circles trying to sort out the
financial mess and make things better for yourself and your loved ones, you might find yourself longing to just
drop everything.
Create a clean slate. And start afresh. Easier said than done…
I shared my experience with you on my website on how I gave up on everything I had going in my life because I
found myself stuck in a rut. Whatever I earned went into expenses and the burden on my shoulders just kept
getting heavier with more demands from my growing family.
It all reminded me of my childhood when dad struggled financially and could not provide the basic necessities. I
promised myself that I would never let that happen to my wife and kids. I still remember growing up how difficult it
was to get to school each morning, to afford a nice meal for lunch and turning off the heater in the cold at home
to save energy.
Wiping out all that’s happened and brought you to where you are today – it's like forgetting about the past,
the present and forgiving everyone including yourself to reach a state of mind like a new born who has much to
learn and no negative feelings to carry forward.
Life is way too complex, confusing and cumbersome at times, but we must find and have a purpose to have high
self-esteem.
What's your overall sense of self-worth and how much do you appreciate and value yourself and loved ones?
If you are asking yourself what has this got to do with trading — EVERYTHING.
The only thing standing between you and your success as a trader is your desire to succeed and your mindset.
Life's purpose that I have found meaningful is dealing with adversity and solving problems.
To give yourself, your family, your relatives, your friends and fellow human beings the opportunity is a purpose
worth striving for, this opens up many doors not just for yourself but others.
Being financially comfortable I found myself in the position to help my friends, relatives and fellow traders online
by creating this course with the purpose to help you achieve your financial goals.
So, Wipe out all of it, no ifs or buts. Just like that and start with a clean slate.
Let things be whatever they were, drawing a line underneath. Forgive yourself for the mistakes you've made.
No more worrying and no more over-thinking. And with that, shedding the weight of the struggle you may have
had in the past with trading or anything else to start on a new journey.
Getting
Knowledge,
Attaining
Wisdom
You will be enlightened with what you will learn in this course. After going through the complete course that I have
put together, you'll be FULLY EQUIPPED to trade the market and SUCCEED. You'll know the rules and strategies
to win, not just win but win big.
You will learn how to make money on markets that are rising, falling and moving sideways.
You'll have the full scope of opportunities to trade no matter what the markets are doing.
Understand this, nearly everyone can make money in a rising market but it's the sideways, falling or unpredictable
price movement that separates the good traders from the rest.
There is lots and lots of good honest know-how which has taken me years to learn that I'll be revealing to you.
Let me take you on a journey of knowledge, wisdom and enlightenment.
The Role of a
Professional
Retail Trader
I often get into dialogue with people on the subject of online trading and how does one make a living out of it.
Being a self-sufficient trader is a job role that you assign to yourself, you create it by making rules, understand it,
modify it when required and evolve with time as you get more experienced.
Particularly when people have moved into a new role, they can find it quite a challenge to really get to grips with
what it is they have to ‘do’ in order to be successful. Often they wait for someone else (i.e. their boss) to tell them
what their role should be so that they can then work according to instructions on what they are expected to do.
When I started trading it suddenly occurred to me, that in this process of trying to work we can easily forget or not
realize that trading is a job like any other, and you have to create our own job role. Chances are, that you don't
actually know what you are supposed to do other than achieving the end goal which is to make money.
Usually when we are trying to do something new, that we haven’t done before, it can seem more difficult to know
where to start. We may lack confidence or even feel daunted with lack of knowledge and skills.
But once we know that we have done it successfully, we naturally feel more confident in our approach because in
a way confidence comes from having done something successfully more times in the past.
y g g y p
If two different people were to trade the same market they would both approach it in very different ways and
create their roles in the market around their own thinking, personality style and preferred way of doing things.
After a while one trader will go bust while the other becomes successful trading the same market.
As a trader we create our own job role every day of the week, every time we take on a new trade.
Most people trade unconsciously, by exploration and experimentation.
Recognizing what is actually required to be a financial trader might make you feel a lot more confident, having to
create the new role around yourself, your preferred style and personality can go a long way in achieving success.
As humans we are all born with different qualities, a marathon winner cannot beat a sprint champion and vice
versa. Therefore, your role as a professional trader depends on the style of trading that suits your personality.
A Trading
Style That
Suits You
Often overlooked by many but your trading style requires to fit with your personality, your preferred style and
personality can go a long way in achieving success.
Trading style often correlates with the personality of the trader. It is important to reflect internally on personality
and lifestyle before choosing a trading style and creating a trading plan that fits you perfectly.
This is because using a trading style contrary to your personality will lead to difficulties down the road in sticking
to the trading plan.When a trader finds a particular trading style that suits them best, the style endures long term.
As humans we are all born different, a marathon runner cannot beat a good sprint runner and vice versa.
A trader who isn’t comfortable with a trading style will often make the most common mistakes.
Scalping / Scalpers
Scalpers are traders who place trade position for a short-time period in an attempt to make profits out of small
market movement. Forex scalpers require high volatility and sufficient market moves in order to make money.
Scalping involves the trader making quick trade executions while sitting in front of his/her computer using the set
of rules and guidelines with strict risk management.
These set of traders buy and sell many times in a day with the mindset of making small percentage of consistent
profits which add up.
As a scalper you will aim to generate profits in the shortest time possible and you will miss out on larger trends.
A scalper will often go for a 1:1 risk reward and aims for a high percentage 70%+ of winning trades in order to
make money.
Day Traders
A day trader looks for trading opportunities and is more selective aiming for higher quality trades rather than
the frequently of trades like scalpers.
A day trader will open and close their trade positions anywhere from a couple hours to the end of the trading
session and will not leave positions open overnight.
Volatility and a good average day's range is an important element that day traders take seriously. For day traders
it is important to see sufficient short-term price movement in their chosen currency pair or instrument.
Generally speaking, as a day trader you don’t want to risk $1 to make $1. A risk-reward ratio of 1:1 means that
you need at least a 51% chance of winning, so instead, you want to risk $1 to make at least $2, or 2:1 risk-reward
ratio in order to make money by being right less than 50% of the time.
Trading is established on the ground of entering and exiting a position to catch an intraday trend. Therefore,
a small daily range and a choppy market is not of any interest to a day trader.
Swing Traders
Swing trading is a more relaxed approached to making profits by holding trade positions overnight. A swing
trader will make use of larger price trends, patterns, and technical analysis to search for financial instruments
with medium to long-term price momentum.
The goal in swing trading is to trade on large price moves using a 4 hour, daily and weekly perspective leaving
your positions to run for multiple days in order to obtain best returns.
Swing traders hold onto their trades when the market moves in an upside or downside swing and close when
price halts, stops or has reached target. You are therefore required to be patient to hold your trades for several
days to a couple weeks aiming for a minimum of 3:1 risk-reward ratio.
Swing traders generally make higher returns with much less effort compared to a scalper or a day trader by
being right just 30% of the time to make money.
This style of trading also doesn't involve watching the market in real time, therefore it is most suited for people
with day jobs and other responsibilities.
Unlike day traders and swing traders, position traders are less concerned with short and medium term price
fluctuation. Position traders are not active traders in fact, they are long term investors.
Such investors initiate few trade positions in an entire year and look for returns making use of weekly and
monthly price action analysis to ascertain longer term trends. They make profits and returns from the price
moves in primary trends. Trades are performed with emphasis on both fundamental and technical analysis.
Position traders have the ability to trade large market cycles to make better investment decisions, by taking part
in a total evaluation of the financial asset.
Importance of
Protecting Your
Trading Capital
Everyone wants to make money in the Forex market, but sadly very few traders can make consistent profit in the
retail trading industry with most out of the game within a few short months with total loss of capital.
Majority of the rookie traders lose money because they don’t know how to manage risk and protect their capital.
Simply taking unnecessary risks will surely guarantee a blow up of the trading account within 1 to 3 months.
Risk Management: To survive as a trader, you must learn to protect your capital
This can be achieved by creating and following rules with a systematic approach that keeps your emotions in
check. As a new trader, you take huge risks to make money and take even bigger risk to recover from losing
trades. Following such aggressive steps will force you to over-trade and the moment you start over-trading you
stand a chance of losing your entire capital.
Regardless of the market condition and your experience level, you should never risk more than 1% of your
account balance. Follow the conservative trading technique and stop taking more than a 1% risk on any trade.
This simple habit will protect your trading capital and is the key to survive as a trader.
After you put your day trading strategy to work during the trading day, it’s easy to let the energy and emotion
overtake you. You get sloppy and stop keeping track of what’s happening.
Day trading is not a video game; it’s a real job with real money on the line. Keeping careful records helps you
identify not only how well you follow your strategy but also ways to refine it. Your records will also show you how
identify not only how well you follow your strategy but also ways to refine it. Your records will also show you how
successful your trading actually is and if you are following the rules.
Using a spreadsheet
Highlight your winning trades in Green or Blue and losses in Red or Orange to keep track.
Finally, calculate your performance based on the number of trades you took in a day's session, your risk to
reward ratio, and average loss and profit return on your trades. Overtime you will find a pattern emerge on days
when you are consistent versus the days you did not do well.
Trading with
a Reputable
Broker
Your timely trade executions, spreads and commission costs can make all the difference to your trading results as
a scalper and day trader It is important to find a broker which allows you to trade on the click of a button
a scalper and day trader. It is important to find a broker which allows you to trade on the click of a button.
Things such as entry and exit orders getting rejected, a frozen platform, stop orders not getting triggered and
data feed disruptions are common issues among Forex Brokers.
It is therefore imperative to find a reputable broker that fits your needs and requirements.
Always do your due diligence and check for online reviews to make sure that the broker provides a good service
and valued by other traders. Get Zero Spreads - New Offer! (Tap Here)
Trading as a
Business vs
Gambling at
a Casino
The main difference between gambling at a casino and trading the global financial markets is that the casino has
a mathematical formula with odds in their favor. You can practice and study the casino games all your life but it
is mathematically impossible to beat the house.
Gamblers cannot win over the long term but a good card player can win against a table full of bad card players.
This is one of those few times a person can win at gambling, because they are not betting against a casino or a
bookmaker but they are competing against each other. This is very similar to financial trading.
Financial speculation is a zero sum game, what that means is that it consists of thousands of contestants around
the world all exchanging hands electronically through a computer system. For every seller, there is a buyer and
for every buyer there needs to be a seller to exchange contracts.
Since Forex does not trade on a centralized exchange your trade orders get executed locally with your broker.
When you execute a buy order, the broker sells and when you sell short the broker takes the opposite trade
charging you a small commission in the form of a spread. The spread is the difference between buy and sell
price or the bid and ask.
What makes trading interesting is that your broker and the thousands of traders around the globe have no control
on market direction Compare this with gambling purely a game of chance that you cannot win over the long haul
on market direction. Compare this with gambling, purely a game of chance that you cannot win over the long haul
because the odds are skewed in favor of the Casino. There is however one exception.
Game of Poker
What makes Poker different is that you do not bet against the house but play the game with other players.
Poker is a game of skill played against other poker players each having the same edge at the start of the game
much the same as trading the Forex.
Do you like to play a game of chance where the house holds an edge to make sure that you could never win?
Or would you rather be in control and beat the house.
Why do most
traders lose
money?
Most people who jump into trading have little to no idea about the importance of trading psychology.
Successful traders know that psychology comes before the trading strategy itself.
Skinner, a Harvard psychologist studied the science of incentives. He did this by giving thousands of animals
different incentives to be rewarded with food.
Part of Skinner’s research was determining what incentives are so powerful that they can’t be ignored causing
animals to become obsessed beyond the need for food pellets. What kind of incentives make a pigeon lose its
mind and how this relates to human behavior.
Fixed incentive - Brain doesn't get excited and slips into routine
Changing incentive - Brain gets excited, tries to solve puzzle
Variable interval and payoff - Brain goes crazy and gets addicted
Successful trading requires you to do the psychologically difficult, it requires you to ignore your instincts that
may be screaming at you to take a different action than what you actually need to take.
Less than 10% traders successfully train their minds to ignore natural instincts by having faith and discipline
to follow a mechanical process and approach that they trust.
At any time in every market traders think a price will rise while
other traders think the price will fall, this is what creates a
contrast environment of imperfect traders forcing you to make
difficult decisions, such as buying when price is falling and
short selling with price rising.
Emotions are the most present, pressing and sometimes painful force in our lives. We are driven day by day by
our emotions. We take chances because we're excited about new opportunities. We get angry when things don't
go according to plan and we cry because we've been hurt beyond what we can emotionally or physically sustain.
Without a doubt, our emotions dictate our thoughts, intentions and actions with superior authority to our rational
minds. But when we act on our emotions too quickly, we often make the wrong decisions that we later lament.
When you have your hard earned money on the line your feelings can alter between dangerous extremes. Veer
too far to the left and you're bordering on rage with the market not doing what you want it to do. Steer too much
to the right and you're in a state of euphoria hoping for that one trade to surpass your expectations.
Thinking
Brain vs the
Emotional
Brain
As with many other aspects of life, emotions are best met with a sense of moderation and logical perspective.
It is the negative emotions that must be handled with extreme care when it comes to trading.
Negative emotions, like anger or rage tend to spiral out of control, especially immediately after they've been
triggered. In time, these sorts of emotions can slowly condition the mind to function on detrimental feelings and
make bad trading decisions.
It is therefore important to re-evaluate the situation every time after a losing trade and not trade aggressively
which is the natural response.
Here are the four steps to control your emotions and regain rationality:
Before refuting the trigger with your emotional state of mind, take a slow deep breath and stabilize the
overwhelming impulse. Take a break for five minutes away from the screen if necessary, and return back only
when you become calmer. As you become calmer, affirm to yourself that this is only temporary.
Always have faith in your ability and see the bigger picture, trust the logic and follow your system with discipline.
Each day, week and month we start with a goal which is to generate a profit while ignoring the excitement and
the thrill of the process. This can only be accomplished with the use of a strict rules and a systematic approach.
Introduction
to trading
with
Price Action
What is Price Action?
Understanding this concept enables a trader to focus on finding opportunities i.e. good entries and great exits.
In other words, Price action is the footprint of the money.
It is a trading technique that allows you to read the market and make trading decisions based on the actual price
movement on the chart, rather than relying on lagging technical indicators.
Indicators are derived from the actual price on the chart, therefore they are secondary. Technical indicators are
designed to give you information on past price movements and not the future.
The most important factor in trading is what prices have done in the past, what they are doing right now, and
what they are most likely to do in the future
what they are most likely to do in the future.
By using certain strategies using price action, we can determine what prices are most likely going to do in the
near term, rather than trying to guess the direction of the market using lagging technical indicators.
Using Price Action we can learn about chart pattern analysis, which attempts to find order in the sometimes
seemingly random price movement.
Having spent thousands of hours learning to trade, I am going to share with you the most effective trading
strategies that the professionals use which will clean up your charts and remove the clutter that normally creates
confusion and indecision for traders. Finally, a trading method that will allow you to trade profitably.
I am guessing the reason you are here, is to reach the end goal which is to sustain a lifestyle you desire by
becoming a successful and profitable retail trader.
Success in trading can only be achieved with a conscious decision, you will require to make an effort to unlearn
everything from the past and study the course with an open mind.
This is one of the few trading courses, if not the only one with clear and concise instructions on how to achieve
success as a trader.
My goal is to share with you the tools and knowledge, so that you are FULLY EQUIPPED to trade the market
and SUCCEED.
Please make sure that you have not only read but also understand everything that I have discussed before
getting to the next part of the course.
Success mindset
Role of a professional retail trader
Trading style that suits you
Importance of protecting your trading capital
Keeping a performance tracking spreadsheet
Trading with a reputable broker
Trading as a business vs gambling
Why traders lose money
Thinking brain vs the emotional brain
Introduction to price action
If you have read straight through, it is recommended that you take a break to retain knowledge before continuing
with a refreshed mind. The best way to remember, is by making notes and writing down a brief summary of what
you have learnt in your own words at the end of each module.
END OF
There is lots of more good content as you go through the course learning about successful
trading, including my trading strategy in what follows. This is the only complete trading
course you'll find on the entire internet that will teach you how to trade profitably.
Please email me to obtain access to Part 2 of your trading course and let me have your
feedback.
How soon can I trade
successfully?
While my method of trading is easy to learn, your success depends on your ability to understand and implement
what I am going to share with you. It is important to have patience, the right mindset and a positive attitude to
make the most out of this trading course.
Definition of success
For me success was attained once I was winning more money than I was losing. When you have doubled your
starting balance the first time you're on the road to success with a 100% profit.
What you'll learn in the course is my proven strategy, a method of trading that no one has ever explained you
before. I must also tell you that my trading strategy was created out of the need, it had to be successful for me.
My aim and my goal is to show you how to trade effectively and profitably.
If you follow the rules and stick to it, you will tip the odds of success in your favor.
The #1 Mistake
Novice Traders
Make That You
Must Avoid
If you have been trying to trade but unprofitable for the past many years, you may have starting doubting yourself
if you will ever come across a sound and profitable trading strategy.
Having gone through the experience myself, I know how easy it is to constantly switch between strategies after a
couple losing trades. Self doubt is a silent thief that creeps up on you and destroys many trading accounts, often
without you actually realizing it.
The root cause is in your ability to believe in yourself and your trading strategy
Without the mastery of the inner game there cannot be lasting trading success. When starting out with what you
will learn in this course, please allow yourself a minimum of 6 months before deciding to put this up on your shelf.
If you can keep your head above water during the first 3 months you're actually doing well and on your way to
achieving success in the next 3 months. Breaking even is not a bad result for a start, so do not doubt yourself
and the trading strategy before you put it to the test for a good year.
You must also understand that market conditions such as trends and volatility will also contribute to your trading
success when starting out.
Achieving a 50% percent success rate in your first year is a great result. If you start with $1000 and manage to
double your account by the end of the year, you achieve a 100% return which is better than most hedge funds in
the industry.
Making $1000 in the first year may not be appealing to you but these small profits quickly add up and can be
compounded for much larger profits.
The K.I.S.S.
Principle,
Simple And
Effective
Keeping Things Simple
When I first started trading I used to think of the market as a complex puzzle which required complicated
indicators and complex theories to solve. As time progressed, I came to understand and realize that everything
you need to trade the market is right in front of you on a price chart.
There are thousands of indicators, trading patterns, theories and formulas when it comes to financial speculation,
but only that what you can actually put to practical application is useful, all the rest becomes just noise hindrance.
I am going to prove to you and teach you what I have found to be useful and effective for financial trading.
When you learn to read and understand the language of price action, there is no need for fancy looking charts.
You will soon learn to trade profitably using nothing more than a single, uncluttered chart.
It may take some time for you to get used to trading this way, be patient to get to your goal
Our aim is to generate a profit, and not make your charts look pretty like the 95% of traders do.
You don't need a fancy custom designed trading computer either with stacks of monitors, nor do you need a
special designed trading software to confuse your decision making process further.
For price action trading, all you need is a candlestick chart, a simple moving average and a few trend lines.
Anything more than this and you will only make trading more difficult.
Using a simple but effective trading method will clean up your charts and remove the clutter that normally creates
confusion and indecision for traders.
Basing your trades on price action aids you in finding reliable trading patterns to enter and exit the market, while
also giving you clear and concise feedback on your trading performance.
The trading strategy I use requires knowledge of support and resistance, breakout points, identifying higher highs
and higher lows, and the study of repeating chart patterns. As price action traders we use all of this data to
analyse and anticipate future price movement.
You may have previously learnt what I am going to share with you, but there is a vast difference between knowing
something and having the right knowledge that you can apply and put to practical use.
Allow me a chance to show you all the different components you need to put a good trading strategy to work.
All of this and more, I am going to discuss at great length with you so that you can have a full and complete
understanding of how to use my trading strategy to generate profits.
Understanding
Price Action
Analysis
Traders analyse charts to find patterns within the movement of price to predict future market movement.
The study of swing highs and swing lows to identify trends, the study of support and resistance levels to find
strength and weakness, and using candlesticks including chart patterns as a trigger to enter and exit the market.
The Trend
Retracement
Consolidation
Continuation
Reversal
All of the above and more, I am going to be discussing with you in great detail to build an excellent foundation
enabling you to trade the market using a powerful strategy using Price Action Analysis.
Using
Candlestick
Charts And
Patterns
For Price Action Analysis we make use of Candlestick charts
Candlesticks are thought to have been developed in the 18th century by a wealthy Japanese rice trader who
developed a method to analyze price trends.
Today, this charting technique is widely used by traders across the world to identify strength and weakness of a
financial market. Candlesticks can be customized in different colors. Generally speaking, when the market is
bullish or price is moving higher the candlesticks will print in green, blue or white(hollow). And, if the market is
bearish or price is dropping lower the candlesticks will print in red, orange or black (filled).
Using candlestick patterns correctly in the right order at the right time, together with other data we can extract
from a price chart, we construct a powerful trading strategy that helps us identify trading opportunities with good
entries and great exits.
Here are a few examples of visually interpreted price action, also knows as candlestick patterns.
In order to implement Price Action into our trading strategy, it is important for you to memorize these candlestick
chart patterns. With time, it will become easier for you to identify these patterns on a chart once you get into the
habit of chart reading.
However, when used together with other information available on a price chart, candlesticks become a powerful
tool that will aid you identify trading opportunities helping you to find good entries and great exits.
Our goal as a trader is put together a trading strategy that is simple to use and effective, more importantly easy
to implement and above all profitable.
Identifying
Swing Highs
And Swing
Lows
What is a swing high and swing low?
A swing high and swing low (HH, HL, LH, LL) is identified as price action with multiple candlesticks grouped
together forming a part of price movement in a certain direction.
The swing high and swing low movement is commonly referred to as a ‘Leg move’ or a price swing which is
followed by a retracement or a ‘Pull back’.
When price makes two consecutive higher highs and higher lows, or two consecutive lower lows and lower highs,
it is considered a swing. Swings come in all different shapes and sizes.
The simple rule of identifying a market swing is to look for consecutive higher highs and higher lows in an uptrend
and lower lows and lower highs in a down trend.
Therefore, “higher highs” and “higher lows” defines an up trend.
“Lower lows” and “lower highs” defines a down trending market.
Trading
Ranges And
Market
Consolidation
What is a price consolidation?
Markets don't move in straight lines.
By looking at a price chart we can identify a trend, a retracement and consolidation.
Consolidation is a sideways movement is generally an area in the market forming a range between an upper and
lower limit on a chart.
When price is moving between a range trading from low to high and high to low, the price is consolidating and this
is known as market consolidation.
The simple way of identify a market consolidation is by drawing a support and resistance line and you will have a
visual range the market is trading within. A consolidation can occur in any time-frame.
Price may consolidate in form of a rectangle, a flag, a wedge/pennant, or a triangle, and all of these in reverse.
You will learn to identify these consolidation patterns in later part of the course.
Support &
Resistance
Levels
Support is any price point which prevents the price from falling further. And depending on whether it renders a
temporary pause or a permanent reversal, a support level defines its strength.
Resistance is a point that makes price action pause or change it's course during a rise. An are where there are
more sellers than buyers.
A key concept of price action is that when a support or resistance level is broken, its role is reversed. If the price
falls below a support level, that level will become resistance. And, if the price rises above a resistance level, it will
often act as a support level.
Here's an example
Highlighted areas are the support and resistance levels identified on the chart below.
A. Price forms a support point, retests, forms a double bottom and moves up.
B. With a choppy market price action overlapping, we get a resistance point B.
C. Price finds support within the choppy price action and moves higher.
D. Buyers get exhausted, price gets rejected and forms a resistance point.
E. Price drops back to the previously identified support level and moves up towards previous resistance.
F. Market gets weak and consolidates trading within a range testing previous support and resistance levels.
G. Market comes down to test the support level and breaks lower.
H. Market finds temporary support at previously identified support level.
I. Price drops further and finds a new support level.
J. Price moves up to test previous support which now becomes resistance.
K. Price drops back down to retest previous support and breaks lower.
L. Price action is now very choppy and consolidating once again.
Important: Using Support & Resistance as a standalone strategy does not work.
Support and resistance is part of price action analysis and is not meant to be used as a stand along strategy.
As you will have noticed, it's not always easy to tell whether a support or resistance level will hold or get rejected.
Technical Analysis is not an exact science, therefore support and resistance data only becomes useful when
y , pp y
used together as part of a trading strategy.
Identifying
Trends in
the Market
What is a Trend?
There is specified duration for a movement to be considered a trend, however the longer price continues moving
higher or lower, the more noteworthy the trend becomes. Trend lines also act as excellent support and resistance
levels and help us identify strength and weakness on chart.
Easiest way to draw a trend line is to find two most recent tops or bottoms and connect them.
You may also come across a chart which happens to have a flat trend line with market trading within a range.
What this means is that market is in a period of price consolidation where price action experiences sideways
movement, also known as a range bound market.
The chart below displays 4 data points highlighted in yellow, marked A and B.
Point B is used again as point A to identify the faster trend line.
Connecting a trend line from point A to point B we can see the general uptrend direction.
Connecting the second data point, A to point B displays a faster trend within an up trending market.
A strong upwards sloping trend line represents a strong currency pair with prices rapidly rising.
The second sloping trend line at a higher angle displays a stronger mini trend within an uptrend.
Gathering all the date, we conclude that USD/CHF is in an uptrend on a 4 hour time frame and likely
to present a buy trade opportunity in the near future. Notice, how price reacted at future points when
testing the trend lines the third time.
A range bound market example
Chart below displays market in a range bound consolidation with no real sense of direction on a daily time frame.
Trading in a range bound market can be extremely profitable provided that the range is wide enough to produce
at least a 3:1 risk reward ratio.
On the chart below, the trading range between support line (bottom) to resistance (top) is 400 pips. If we were to
take a trade on either side of the range with a generous 100 pips stop loss we can aim to make at least 300 pips.
Successful traders know the importance of checking trends on larger time frames, such as daily and weekly. We
then align our trades for higher probability by zooming in and taking trades off lower time frames in the direction
of the larger trend. Makes sense so far? Great stuff.
The worse thing you can do right now is to have a "know it all" attitude which will not only hinder with your
learning process but also make you question whether this will work for you.
Success in trading can only be achieved with a conscious decision. In order to achieve success, you will require
to go through the course and read everything in detail.
This is one of the few trading courses if not the only one with clear and concise instructions on how to achieve
success as a trader. After completing course you'll be FULLY EQUIPPED to trade the market and SUCCEED.
The course has been broken down in parts for ease of learning. Please make sure that you have not only read
but also understand everything that I have discussed before getting to the next part of the course.
If you have read straight through, it is recommended that you take a break to retain knowledge before continuing
with a refreshed mind. The best way to remember, is by making notes and writing down a brief summary of what
you have learnt in your own words at the end of each module.
END OF
There is lots of more good content as you go through the course learning about successful
trading, including my Super Trading Strategy in what follows. This is the only complete
trading course you'll find on the entire internet that will teach you how to trade profitably.
Please email me to obtain access to Part 3 of your trading course and let me have your
feedback.
THINK, PLAN, ACT...
-Trader Ali
Success mindset
Role of a professional retail trader
Trading style that suits you
Importance of protecting your trading capital
Keeping a performance tracking spreadsheet
Trading with a reputable broker
Trading as a business vs gambling
Why traders lose money
Thinking brain vs the emotional brain
Introduction to price action
Every conscious effort you make to learn will produce an impression upon the subconscious mind, and it is only
when you have complete and thorough knowledge and understanding on the subject that your subconscious
takes over and guides you into taking action using the knowledge, tools and the skill set that you acquired
consciously when building a foundation.
Your subconscious makes a huge effort in helping you produce fruitful results in line with your goals.
When I had my first Aha moment (Eureka Effect), I immediately knew that success was not far from reach.
My aim is to evolve you into a profitable and successful trader by having many as such Aha! moments.
By the end of the course, you will find yourself equipped with tools and knowledge, ready to take on the
challenge of financial speculation.
Here's what I cover for you in the course and much more:-
☑ Trading as a business and the all important questions to ask yourself. GETTING STARTED
☑ Understanding why most traders lose and why a small percentage win. GETTING STARTED
☑ Role of a Forex Trader — Capital Preservation & Risk Management. A MUST KNOW!
☑ The K.I.S.S. Principle and importance of having the right mindset. A MUST KNOW!
☑ Price Action Analysis — Correct way to analyse and know what to look for. VERY IMPORTANT!
☑ Capital to outlay and how to implement proper risk management strategies. A MUST KNOW!
☑ How to scan and find low risk opportunities on different time-frames. POWERFUL STRATEGY!
☑ Finding low risk / high reward entry and exit points on any Forex pair. UNIQUE STRATEGY!
☑ How to identify major and minor trends using a top-down approach. UNIQUE STRATEGY!
☑ Setting up your charts with support/resistance, overbought/oversold zones. UNIQUE STRATEGY!
☑ How to identify trading ranges and know your profit potential in advance. A UNIQUE STRATEGY!
☑ How to trade market trend reversals and where to place your orders. A MUST KNOW!
☑ How to build your capital with the power of compounding. A MUST KNOW!
☑ Keeping track of your financial and emotional performance. VERY IMPORTANT!
The Key To
Successful
Trading Is
Discipline
90% TRADING SUCCESS DEPENDS ON YOUR DISCIPLINE
Statistics suggest that 90% of traders lose money in the markets while only a fewer percentage make money.
If I were to hand down my trading strategy to a group of 100 people, what outcome can we expect?
Out of the hundred, 90 will continue trading the way they always have been and still lose money.
The remaining 10 will follow the strategy and rules by the book and start seeing results.
Out of the ten, only 5 will make it to the top generating trading profits consistently.
Although, I would like to challenge the statistics with a complete trading course detailing all the different aspects
to successful trading that I am sharing with you.
At the end of the day your success in trading will come from having discipline. It is the discipline to follow the
rules and your trading strategy with strict money management that will see you outperform.
I have gone through great lengths to make sure that I don't just hand down my trading strategy to you on a plate.
I believe in building blocks to a strong foundation which is why the course is broken down into different parts
revealing the finest detail one step at a time.
I want you to know that I care about you and I am making every effort with this course to help you achieve
success. So, have faith in me and yourself to have the ability to follow the strategy with complete discipline.
Volatility,
Stop Loss
And Average
Daily Range
What is Volatility?
Volatility is the pace at which prices move higher or lower creating price swings.
Volatility is a measure of price-change during a specified amount of time. When markets are volatile, this means
that prices are changing fast in a short period of time. On the other hand, non-volatile markets refer to markets
where prices change very slowly or remain totally unchanged.
Forex market trades in four major sessions with following time windows (Eastern Standard Time)
When more than one exchange is simultaneously open, this increases trading volume and adds volatility with the
extent and rate at which currency prices exchange. Both of these factors can benefit forex traders.
Market Volatility however is considered to be a double edged sword, this is because higher volatility results in
opportunity for traders but also increases your risk.
In order to deal with risk we make use of Stop Loss orders. Every trade you make in the market, is accompanied
with a Stop Loss order, thought of well in advance before a buy or sell order is placed or executed.
The Average Daily Range indicates the average pip range of a currency pair on an average day.
Average daily range provides a guide on the kind of volatility that can be expected from a currency pair during the
day's trading session, in order words the potential of pips (up or down) on any given day. Use of average daily
range is great for setting profit targets and is particularly important to day traders.
Using the range as a guide for profit targets will allow you to hold a position and gauge the market’s reaction
when it gets there looking for any signs of exhaustion for a quick exit.
A stop loss order is an order to close a position at a certain price point/percentage move against your position in
order to limit or minimize one's losses.
Using stop loss is an important part of risk management strategy which comes useful to limit one's losses if a
trade idea is unsuccessful.
A stop loss order too close to your entry will knock you out of your position prematurely, especially when the
market is displaying higher volatility. Therefore, it is important to allow the market enough room to breath.
Placing a mental stop is allowing emotions to come into play like a deer in headlights. Market can move fast and
that small manageable loss can quickly spiral out of control turning into a much bigger loss.
Moving your stop to break even in the hope to accomplish a free trade will cause you to miss out on winning
trades more often and plays negatively on your psychology.
Imagine spending a long time doing your homework and finding a profitable trade opportunity you've been
waiting for, you execute it according to plan but move your stop loss order to break even at the first opportunity.
Market then retraces back to your entry point and later you see price go all the way to your target. You not only
lose on a profitable trade by doing this but you also lose time, energy, effort and motivation with such practice.
Price Action
Components,
Consolidation
Patterns
Why are Trading Patterns important?
In the past when chart patterns were invented, traders had to know the formation rules and have access to data
which was not easily available. Identifying the formations was difficult, costly and time-consuming because it was
done manually by hand.
Today, with the power of technology and personal computers, traders have access to not only data but charting
tools such as candlesticks which help us identify price patterns for high probability trades.
If you are serious about your trading, you need to learn your chart patterns.
I believe in repetitive learning, I am going to be repeating some of things that you have read and learnt in Part 2
of the course because it is important to me that you fully and completely understand as we progress forward.
In Part 2 of the course we looked at candlestick patterns that help us identify trading opportunities.
Candlesticks are especially important to us when we are looking to enter and exit a trade.
The Trend
Retracement
Consolidation
Continuation
Reversal
We know what a trend looks like and how the market continues in direction of the trend forming Higher Highs,
Higher Lows (Retracement) in an uptrend, and Lower Lows, Lower Highs (Retracement) in a downtrend.
Consolidation
When price is moving between a range trading from low to high and high to low, this is known as consolidation.
The simple way of identify a market consolidation is by drawing a support and resistance line and you will have a
visual range the market is trading within.
Consolidation is generally known as a continuation pattern within trending markets. When you look into
a consolidation pattern closely you will find mini trends on lower time-frames, which may be in the form of
continuation of existing trend or a price reversal.
Reversal
As a price action trader, being able to identify a reversal can help you time your exit on an existing trade, and also
help you time your entry as part of your profitable trading strategy.
It is therefore important for us to identify chart patterns which can trigger a reversal of price.
Price will usually consolidate in the form of a rectangle, a flag, a wedge/pennant or a triangle before continuing in
the direction of the larger prevailing trend.
Let's take a look at some consolidation chart patterns and how we can use them in our trading strategy.
Most people will add ascending or descending to these patterns.
For me, these are all just consolidation patterns, because I don't want you to get fixated with the idea that
a market can only rise if the pattern is ascending or it must only drop if the pattern is descending.
These are the important consolidation patterns that you need to remember, anything else such as double tops
and double bottoms, head and shoulders are all variations of the patterns below.
For example, in the Rectangle pattern if the price does not reach the grey highlighted area and market reverses,
it will be called a double top or a double bottom.
If you ignore the grey highlighted area and price fails to form a lower low or a higher high on a Wedge, the
pattern will be called a head and shoulders or an inverted head and shoulders.
Similarly, a Pennant can appear to be another form of double top or a double bottom, and a Triangle can appear
to be what is considered a triple top or a triple bottom.
Instead of getting bogged down with names of these patterns such as bearish and bullish, what's more important
for us is to recognise these patterns and use them to our advantage.
Important: Use of trading patterns as a standalone strategy is not effective
Starting out I tried everything including the use of numerous chart patterns.
In the end, I discovered it all came down to 12 patterns. I will show you the rest in the next part.
Our goal as a trader is put together a trading strategy that is not only simple to use but also effective.
Importance Of
Having A Good
Trading Plan,
A Strategy
Simply put, a trading strategy is a method of planning and action with the objective of generating a profit or ROI.
A trading strategy includes criteria and rules that you must follow in order to achieve targets.
As price action traders, your strategy needs to have mechanical rules based on technical analysis.
The clearer the rules and criteria for entering and exiting a trade, the easier it will be for you to follow and
implement your strategy. Fewer indicators you involve, the less hesitation there will in your trading decision-
making process.
For a medium term market view, use the 4 hour, daily and
weekly charts which are more suitable, these are also the
ideal time-frames for swing traders.
For a more patient trader looking to catch larger market cycles, if you don't mind holding trades overnight
anywhere for a couple days to a couple weeks, you will find the daily, weekly and monthly time frame to fit the
purpose of position trading, which is basically holding a position with a larger market view.
Often, new trades make the mistake of rushing into trading and do not consider the noise factor on shorter time-
frames. The shorter the time frame the more noise there is present in the market and therefore, the more difficult
it becomes to trade with price action.
Your trading strategy requires to have stop loss rules, because use of
a hard stop order limits your risk.
In the said example, you stand to make 2 dollars for every dollar you risk. And with only 40% of all trades being
correct, you still make a profit with a 40% success rate strategy in the long run.
When developing a new trading strategy, it's not as simple to determine your success rate and risk to reward
ratio. It usually takes hundreds of trades to determine success rate and find profit ratio suitable for your strategy.
The higher reward ratio target you aim for, the lower your success rate will be and vice versa.
- Trader Ali
First and foremost, you will need to decide how much money can you afford to lose without putting a dent on your
day to day expenses.
Good news is that most Forex brokers will allow you to trade in micro and mini lots size, which means you can
actually start with just $100 or $1000 bankroll of trading capital.
Did I mention, 90% of your trading success depends on your discipline to follow your risk management strategy?
If you cannot trade with $100 or a thousand with discipline, there is no way you can make money with $10,000 or
a six figure account.
Start with $100 and give yourself a task to double this amount, not like a one hit wonder but a series of trades
following strict money management rules just as you would trading larger capital.
Once you have successfully achieved a 100% return, slowly and gradually increase your trading bank.
But, before you do that there is one more important thing to consider...
Understanding
Drawdowns
And Dealing
With Losses
What is a Drawdown?
Drawdown is the value by which your trading balance can go down during a streak of losses or losing trades.
A drawdown can be calculated as an amount or in a percentage value.
Drawdown is one of the key metrics for traders due to the fact that it affects not only your trading capital but also
your performance.
For Example: If you lose $40 of your $100 starting account balance, you will have experienced a 40% draw-
down. A $40 loss doesn't sound too bad to deal with?
How about a 40% drawdown on $10,000 account which will equate to negative $4,000.
Can you stomach a -$40,000 drawdown on a $100,000 account?
Second, understanding drawdown risk will help you evaluate your trading
strategy and your trading performance. It tells you how risky the strategy can be
and as a result, you can evaluate whether your starting trading capital can
compliment your risk tolerance.
Drawdown risk is inevitable and should be expected as part of your profitable trading plan. A trader who stops
believing in his trading strategy after a drawdown, is following an incorrect practice.
Your ability to find profitable trades and aptitude to execute your trading strategy will also play a big part in the
drawdown you will experience.
If you can trade the same way without getting emotional about losses and continue applying strict money
management rules, then such setbacks are nothing to worry about.
Conquering your emotions is one of the most difficult challenges traders face.
For those who have no idea of what percentage drawdown to expect, I would recommend to play it safe and start
with a small $100 capital to extract some figures.
Once your balance increases to $200, you will have a better idea of the percentage drawdown to expect with
your strategy and trading performance. Slowly add more funds as you get more confident and experienced being
a profitable trader and progress.
An Alternative
Exit Strategy
To Risk
Management
It is said that successful trading is 80% mental and 20% mechanical. As a trader, you are required to master your
inner mental state. Self sabotage is a destructive behavior that not only blocks you from achieving but also takes
away all you have previously achieved.
When I first started trading profitably I was doing ok, but a quarrel in the family changed my mental state of mind.
I became emotional and started trading bigger size after a loss. The end result, I lost all my profits for the entire
month in a couple trades, all in a single day!
Trading is a business with no rules and boundaries, the only rules and boundaries you will have are the ones you
create and follow for yourself. Losing all your capital is not an exit strategy.
If you are feeling emotional, if you are unwell and you find yourself losing money.
Ask your broker to put a temporary block on your account.
Trading is 80% psychology and 20% strategy. This is not to say that a good strategy does not hold importance,
but it is only when you put everything together with all the pieces of the puzzle in the right place, that you have a
picture you can actually work towards.
As I mentioned before, this is one of the few trading courses (if not the only one) with clear instructions on how to
achieve success as a trader. My goal is to transform you into a trader who is FULLY EQUIPPED with knowledge
and tools required to trade the market SUCCESSFULLY.
The course is broken down into parts for ease of learning. Please make sure that you have not only read but
also understand everything in all 3 parts before getting to Module 4 of the course.
If you have read straight through, it is recommended that you take a break to retain knowledge before continuing
with a refreshed mind. The best way to remember, is by making notes and writing down a brief summary of what
you have learnt in your own words at the end of each module.
There is lots of more good content as you go through the course learning about successful
trading, including my Super Trading Strategy in what follows. This is the only complete
trading course you'll find on the entire internet that will teach you how to trade profitably.
Please email me to obtain access to Part 4 of your trading course and let me have your
feedback.
THE TRADING STRATEGY
~ Trader Ali
Congratulations!
You have made it this far...
You have now gone through 3 essential parts that make the 3 pillars to a strong foundation. I have covered many
important topics that contribute to trading psychology which are usually not found in trading courses.
This is not to say that a good strategy does not hold importance, but it is only when you put everything together
with all the pieces of the puzzle in the right place, that you have found the Holy Grail.
Before we begin...
Answer This
Million Dollar
Question
Honestly...
Here's a Million Dollar question for you:-
I may have asked you this before, so let me ask you this again.
Q. Why do you want to trade?
Please think about the answer before you proceed, there are only 2 choices:
I can understand, because I was the same when I first started trading. I have provided you with good education
and a sound foundation that you can use to kick start your exciting journey. You can hit trade after trade multiple
times a day, as many times as you like to your heart's content.
But, when you have had enough, please make sure to return back here and ask yourself this question again.
B. You have had enough of the thrill and excitement, and now seriously want to consider making money
from trading. Please only continue reading the rest of the course if you are 100% committed and serious about
extracting profits out of the market.
I am about to give you something far more valuable than money can buy, it can make you financially free.
I am about the share the last piece of the puzzle, my Holy Grail to trading success.
My Top Down
Approach For
Success!
When I started trading a few years ago, it was very difficult for me to find an edge for consistency.
Being a perfectionist, I was looking for an edge that would work more than 50% of the time. I did not want to be
just a profitable trader, but I wanted to be great. This is when I discovered multiple time frame analysis.
Multi-time frame analysis opened up a whole new world of trading opportunities for me with a staggering success
rate. Any financial trader would trade in an arm or a leg to achieve a 70% or higher success rate.
Warning
My top-down trading approach is seriously profitable, but it is not for the impatient trader.
You have to spend a little time learning and require the patience to find quality trades with an exact plan of action.
My top down trading approach will filter a heck of a lot of bad trades out for you just like removing thorns out of a
My top down trading approach will filter a heck of a lot of bad trades out for you, just like removing thorns out of a
rose bush.
Simple answer, you start your market analysis from higher to lower timeframes.
When you are analysing the market you will generally include everything above the 1-hour time frame, so
starting from the weekly charts, all the way until the daily, 4-hour and 1-hour charts, sometimes the 30 minute.
Why is it good?
In a high time frame, the movements are slower, this gives you time to look at the charts and analyse the larger
trends correctly. You then align your trades with the market by finding low risk trading opportunities.
With this trading strategy you can take trades on different time-frames simultaneously to supersize your profits.
Introduction To
The Easy Pips
Strategy...
Let's Begin!
As chartists, we must remember there are only 5 key components of Price Action:
The Trend
Retracement
Consolidation
Continuation
Reversal
All successful traders use these 5 components to form a profitable trading approach.
Personally, I am interested in catching the "meat of the move" and we do this by using a top-down approach by
scanning the market to find the most suitable trades on different timeframes.
The only way to trade with the trend is by identifying an existing trend and a consolidation range in place.
We can then zoom in on a lower time frame to find a low risk high reward potential trade opportunity.
Our goal is to achieve a minimum of 2:1 and ideally 3:1 risk to reward ratio.
Many of your trades will have a risk to reward ratio much greater, i.e. 5:1 or more.
Th t t I i t h ith i it bl f t d h tt k If l ki f
The strategy I am going to share with you is suitable for traders who want to make money. If you are looking for
thrill and excitement, you can develop your own scalping strategy using the foundation I have provided you with.
For high probability trading, we will be using a top-down approach which is done by visually scanning the market.
For example:-
With the top-down approach, we start scanning the market for trading opportunities
from higher to lower time-frames, such as the weekly, daily, 4 hour, 1 hour and
sometimes 30 minutes.
I do not recommend trading on 15 minute and lower time-frames due to the noise present on the charts.
Anyone scalping in the Forex market is not trading to generate an income, but for the excitement and the thrill.
For Swing Trading I recommend using the weekly, the daily, the 4 hour and 1 hour time frame.
For long term investing, also known as Position Trading you will make use of monthly and weekly charts.
Important to remember
The most you can do as a price action trader is to find an edge that increases probability in your favour.
No trading strategy works every single time, but the super strategy I am going to share with you works often
times that you start trusting it.
With the use of tools, such as candlesticks, trend lines, chart patterns and support/resistance levels, we take out
the guess work and make an informed decision on what price is likely to do next.
Once we have found a potential trade opportunity, we work out the profit potential and wait for further evidence or
a confirmation trigger before executing a buy or sell trade position.
If the trade works out in your favour you make a profit larger than your initial risk.
if the trade does not work out you lose a small amount of capital, usually around 1%.
You move on to the next opportunity. The beauty of the trading strategy is that you can place multiple trades in
different currency pairs simultaneously and increase your bank by risking just 1% of your account each time.
Applying the strategy with discipline and following strict money management rules we stay ahead of the curve, by
winning big and losing small.
Identifying the
trading range
The simplest way to trade is by identifying the trend and
the range and trading off support / resistance levels, which
are also considered as over-sold and over-bought zones.
This trading strategy involves identifying key areas of strength and weakness, buying when the market is at or
near support and selling at or near resistance.
Based on the size of the range, we work out a plan to execute the trade with good risk management in place.
Easiest way to identify a support and resistance level is to draw a horizontal line across the most recent peaks
and troughs. This gives us the buy (oversold market) and sell (overbought market) zones.
A trader could then enter a long position when the price is trading at support or in an oversold zone. Alternatively,
the trader may decide to open a short position when the market is trading into overbought territory at a resistance
level. A stop-loss order should always be placed just outside of the overbought or oversold zone to minimize risk.
On the chart below, we are going to see how a currency pair has been trading in a range for the last few years
and how we find trading opportunities with chart analysis.
We can see by identifying this range, there was a sell short opportunity in August of 2019 with market falling
straight to oversold zone for target.
The chart at present on a weekly time-frame is also displaying a buy trade opportunity for at least a 3:1 risk to
reward ratio if we were to aim for the middle line for first target.
Stop loss order for the sell short trade would be a few pips above the last swing high and for the buy long trade
would be a few pips below the last swing low.
Target Profit
The mid line can be the first take profit area if the range is too wide, however there requires to be a minimum risk
to reward ratio of 2 to 1. Secondary target is the opposite side, the overbought or oversold zone.
The sell short trigger signal in the first instance was the large red candle forming almost a bearish engulfing
pattern, displaying sellers overcoming buyer's strength in the overbought resistance zone.
The buy long trigger signal in the second instance is the large green candle signifying the return of buyers
highighted in yellow. This was confirmed by a double bottom pattern (marked with a black line) which shows the
market holding at support, giving us a low risk entry.
By hovering the pointer on the second opening candle after the drop back into the range on the first short trade,
we can see that the candle opened at 0.91243.
Let's drop down to a daily timeframe and see if we could have had a better entry on the sell short signal knowing
that the market is trading at a resistance level.
By zooming in on a lower timeframe, we can see an Evening Star and the Three Black Crows pattern (squared)
with price falling back into the range, the next candle opened at 0.91866 gave us a better sell short trade entry.
We can also see an exit pattern forming in the shape of a Hammer and a Morning Doji Star pattern to the bottom
right of the chart signifying the important support level with a perfect Exit/Buy trade signal.
The trade example shown above was on a weekly and daily time frame. However, the same principles can be
applied for trading a daily and 4 hour chart, 1 hour and 30 minute charts.
Looking at the chart above, we have identified a range the market has been trading within the last few years.
The weekly time-frame is presenting with a sell short trade opportunity for at least a 2:1 risk to reward ratio.
Target Profit
Since this is not a very large range, we are going to aim for the market to drop to the oversold zone for profit.
The short trigger signal is still forming on the weekly chart with the large red candle with Bearish Harami pattern
displaying sellers overcoming buyer in the overbought resistance zone.
The short trigger signal will be the second candle after a large red candle close signifying the return of sellers on
the weekly timeframe.
Let's drop down to a daily and see if we can find a better entry without having to wait for the weekly candle close.
By zooming in on a lower timeframe, we have a short sell trigger on the close of the second red candle.
When the price fell back into the range below the trend line forming a bearish candlestick pattern.
Important
We only zoom in one timeframe lower to find a better entry, this especially comes useful when trading monthly
and weekly charts.
Target Profit
Since this is not a very large range, we are going to aim for the market to drop to the oversold zone at the
target price 105.20, aiming for 545 Pips profit.
Risk/Reward Ratio
With the stop loss and target profit in place, we have a risk to reward ratio of slightly over 3:1 on this trade.
Note: It is not important to remember the names of the candlestick patterns, what is important is to be able to
identify strength and weakness in the market. We never trade based on candlestick patterns alone but use them
as a confirmation tool before a trade is executed.
Target Profit
The oversold zone is always the first support area that price will re-test. The trade opportunity qualifies only when
the risk to reward ratio is greater than 2:1. For target, we use trend line support for a high probability exit since
the market is in a downtrend.
The short trigger signal formed on the daily chart with a number of Doji patterns displaying indecision in the
overbought zone. You could also wait for a red candle to close down into the range forming an Evening Doji Star
pattern with price below the resistance trend line for a conservative short entry.
Trading Pattern
Trading pattern identified on the daily chart above we analysed matches with a Falling Wedge Pattern.
These Price Action patterns you will find a market often trade within on higher and lower time-frames.
When finding a trading opportunity, the key is to look for one of these consolidation patterns, but not trade in the
way written in the text books.
How often do traders wait for a breakout of a consolidation pattern to enter the market only to find price reversing
the opposite way going past the stop-loss order? All the time!
Most traders continue to trade this way by placing stops on the other side of the channel only to lose money.
My trading strategy is way better, I am going to explain it to you with plenty of chart examples.
The fun part is that when a consolidation pattern actually breaks out, you make far more profits because you are
already in the trade looking for a super profitable exit.
While 95% traders get caught up scalping and day trading using indicators, such as Moving Averages, MACD-
moving average convergence divergence, Stochastic, RSI- relative strength index, Bollinger Bands, Parabolic,
Fractals, Alligator and ZigZag etc, we find low risk trading opportunities and watch the market move from profit
target to profit target with a simple K.I.S.S. approach using evidence following Price Action itself.
You will find my trading approach both refreshing and profitable as I take you through the final part of the course.
END OF
Part 5 includes detailed chart analysis with my top-down market approach, it contains lots
of good content as I take you through chart examples learning about successful trading
with my Easy Pips Trading Strategy.
This is the only complete trading course you'll find on the entire internet that will teach you
how to trade profitably. Please remember to let me have your feedback.
PUTTING IT ALL TOGETHER...
~ Trader Ali
Congratulations! You are now at the Final Part of the trading course.
Know that without a foundation, your success in trading is near impossible to achieve.
Remember, trading is 80% psychology and 20% strategy.
This is not to say that a good strategy does not hold importance, but it is only when you put everything together
with all the pieces of the puzzle in the right place, that you have found the Holy Grail.
Let's begin...
From what I have taught you in the course, here's how you will analyse a market, step by step.
Starting with a plain candlestick chart on a monthly timeframe.
Step #1 Draw trend lines to determine trend and range.
Second trade is a short after a double top pattern formed at resistance trend line with long red candle
displaying weakness. Stop order for this trade would go a few pips above on the last swing high.
Market dropped to support level and the trade was closed after a second bounce was identified for a nice profit.
The 3rd trade is a buy signal taken off the trend line support level again for a profit near as the market
approached resistance and trend line resistance. Stop order for this trade would go a few pips below support.
There is a possibility of a short trade if market approaches resistance trend line and forming a bearish pattern.
By drawing the red and blue zones it becomes easier for us to see how price reacts and when market breaches
these zones, how support becomes resistance and vice versa.
Step #4 Find low risk trade opportunities.
First trade identified is a buy taken after market bounced off support level and support trend line forming a green
hammer candle. Exit for the trade was signaled by red candle as we approached closer to resistance trend line.
We then identified a triple top pattern to go short after the long red candle closed, marked by the red arrow.
Market was still below resistance trend line, however price action displayed weakness. This trade was later
stopped out with the whipsaw and market spiked higher to hunt stop orders.
Looking to go short again, we wait for market to drop below the trend line and back into the trading range.
A short signal was identified when price broke support level, a stop order would have been placed a few pips
above the last lower high swing. The trade closed for a profit when candles with wicks appeared on support.
Our 4th trade is a buy signal at support trend line when price went back into the trading range with a stop order
a few pips below the most recent support.
Finding trades on a lower timeframe, start with a plain 1 hour candlestick chart.
Step #1 Draw trend lines to determine trend and range.
By drawing the red and blue zones it becomes easier for us to see how price reacts and when market breaches
these zones, how support becomes resistance and vice versa.
We identified a new trend line resistance when market formed a new higher high and lower high.
Second trade was a sell short when a double top was identified and market fell below the support line, however
price returned back higher on the next candle and the support held which the market moved sideways. We later
got stopped out on this trade.
A second short trade opportunity was spotted when the market touched the faster resistance line and formed a
reversal candlestick pattern. Exit was at the lower trend line for an extremely rewarding trade. A possible buy
opportunity is now forming on this chart.
From what I have taught you in the course, here's how you will analyse EUR/USD, 4 hour chart.
Starting with a plain candlestick chart.
We continue looking for low risk trades with existing support/resistance levels within the new trend range forming.
Target would be the resistance trend line, however since we are in an uptrend, with a little bit of patience and
waiting to see the reaction of the market we saw a push through resistance much higher with an exit signal on
the first red candle outside the range extended move.
We then notice the market trying to move higher and testing most recent support level. A short entry was
triggered with the formation of the red candle breaking and closing below support level back inside the trading
range. Price fell to most recent resistance which now acted as support and broke lower all the way to support
trend line and previous resistance level which once again acted as support.
We could not find a low risk entry on the support trend line this time due to a long pin bar formation, however
price moved up to the middle of the range and tested the resistance level. After trading here for a fair while we
see an opportunity to go short on the first full red candle with a stop order a few pips above the last swing high.
Market fell straight down breaking below support trend line and onto the previously held support level for target.
Transform
Knowledge
Into Wisdom
Having completed the course, you are now equipped with a strong foundation along with a “Powerful Strategy” to
help you make profitable trades.
I know you are excited, probably the same way as I was when I first discovered this simple but effective method
of trading. Excitement is good, it keeps us motivated but remember to treat trading as a business and protect your
capital at all times. The end goal is to make money and be financially free.
Our aim as traders is to find an edge that we can use and apply to extract profits out of the market consistently.
This trading strategy I have shared with you allows you to aim for large profits while keeping your risk low, a
good win rate along with a good risk to reward ratio on each trade makes a profitable trader.
Remember to follow the 1% rule, do not risk any more than 1% of your capital on any one trade.
To increase your trading capital, use the power of compounding which is the last topic of this course for a reason.
In order to transform your new found knowledge into wisdom, there is only one thing standing in your way and
that is practice. Believe in yourself and your ability to execute trades. Practice to perfection, you can do this.
U i Th P
Using The Power
Of Compounding,
Start Small.
Albert Einstein, called compound interest “the greatest mathematical discovery of all time”, in another statement
he was reported to have called it the “Eight wonder of the world.”
Compounding is a strategy used by traders and investors to grow wealth exponentially simply by reinvesting your
profits along with the principle amount to accelerate the return on investment process.
A trader, for instance, invested $14,000 and made a $100,000 return over the last 2 years using compounding.
First, he held positions for 28 days on average. Second, he would only trade in line with strong trends. While this
formula is not necessarily a sure route to success, it’s still the opposite of what average Forex traders do.
The average trader will trade against the trend, add to losing positions and will trade multiple times a day.
The Easy Pips trading strategy I have shared with you will set you apart from average traders.
For example:
You take the trade with a maximum risk loss of 2% on your account.
The next time you trade you will have more money in your account
since your capital appreciated by 4% to 6% from the last trade.
You apply the 2% max loss rule again on your next trade, this time however your percentage risk will be higher
than the 2% previously calculated on your initial capital.
Repeat the process and let's say you get 10 winning trades. Applying the “2% risk rule” and returning 4% each
time, you will have returned 48% on your account compared to a standard 40% return without compounding.
Let's say, you keep repeating the process and after 50
winning trades you will have returned a staggering 710%
on your capital compared to a standard 300% return.
I really hope you enjoyed the learning process as much as I enjoyed sharing my knowledge, tools and strategies
with you. As I have said before, this is one of the few trading courses if not the only one that provides a strong
foundation and arms you with a powerful strategy that you can use to extract profits with consistency.
It is my hope that you not only learn but also apply the lessons found in this course to turn your new found
knowledge into wisdom enabling you to make better trading decisions and finally achieve success.
Trader.Ali
END OF
Many Congratulations!
You have successfully completed the Easy Pips trading course. This is the only complete course
you'll find on the entire internet that actually teaches you how to trade profitably.
Please let me have your feedback and remember to share your success story by sending
your email to:- support@easypips.co.uk