Beginners STRATEGY NOTES.

-Only focus on. The current market when doing analysis.

-Identify support and resistance zone first.

-Take profit is by support or resistance depending wether you are buying or selling.

-Trend analysis shorts from recent highest high point.

-Second trend line starts from recent higher low.

-Different take profit for different zones.

-Stop loss is a different zone.

-Analysis trendiness must always be parallel to each other.

-Zoom out on your charts to identify your support and resistant zones.

-Don’t enter with breakout candlestick.

-Enter with second candlestick called your confirmation candle

-Strategy applicable 30 minutes to an hour time frame.

-Always start analysis on 30 minutes charts and if there is no setup you go to 1 hour
charts.

-Not all support and resistance levels are created equal, if you really want to take trades
that have high potential for success, you should focus on identifying significant support
and resistance levels on your charts.

-If price has been going down for some time and hits a price level and bounces up from
there, that’s called a support level.

-When a support level has been broken to the downside, it often tends to act as a
resistance level.

-Similarly in an uptrend you will also see such happening where resistance levels get
broken and price heads back down to these, they now will act as support level.

-One brilliant method for finding zone on the charting this work particularly well for those
traders who are new to finding zones on the chart is to move to line chart.

-A line chart is a chart that offers a continuous line connecting to the closing prices.

-If you are having difficulty identifying the zones on your charts, the easiest solution is to
simplify load a line chart( horizontal lines).

READ!!!!!!


Need to build a good foundation of understanding how this strategy works

⁃ How to draw valid trendines

⁃ when is a trendline still valid trendline and when does it become invalid

⁃ Understanding some common mistakes in drawing trendliness

⁃ How to know which trendiness are most likely to hold and which ones will not hold

⁃ Support and resistance and how to use them to your advantage

⁃ Understanding trends and know when they may be starting or ending

⁃ Technical analysis the best way to analyse your charts without too many indicators
(matter of fact ,you don’t need any indicator at all but just price.

Having a good understanding of the points listed above is very essential for the
successful application of the strategy

STEP#1 : Identify OBVIOUS peaks and troughs

STEP#2 : Connect a minimum of 2 peaks (or highs) with a line from left to right and you
have a downward trendline

STEP#3 : Connect a minimum of 2 peaks (or lows) with a line and you have an upward
trendline

STEP#4: Analysis always has to be parallel to one another

KEY points you need to know

⁃ When you draw trendiness, they would usually fall into the outer trendline and the
inner trendline.

⁃ Outer trendline are the usually the main trendlines drawn from much significant
peaks and they are quit obvious in the larger timeframe like 1hour

⁃ Inner trendline are trendlines drawn on the outer or inside trendlines and generally
you when you switch to smaller timeframes, you tend to get a lot of inner trendlines.

⁃ These peaks that are used to draw inner trendlines are sometimes quit difficult to
spot if you are in a larger timeframe like the 4hour or daily but when you switch to
the 1hour or 30min the peaks become obvious to draw these inner trendline

SUPPORT AND RESISTANCE

- In a bearish market the downward trend line provides the resistance ( price go up and
reverses back from the trendline)

_ This is one of the most powerful techniques to get into high probability trades and it is
to your greatest advantage to be able to spot this setup when this happens and take
trade based on that.

THE TREND IS YOUR FRIEND

⁃ Follow the trend and get paid big time ( If the market is moving downward. It will
continue to move in that direction until an opposite force comes into play)

⁃ What are opposite force ? Support levels, upward trendlines, news. These are the
things that can change the direction of the market.

⁃ The first thing when you open your chart within less then 5 seconds you should
know what the present trend is and you should also know if a trend might be ending
and a new one starting.

⁃ An uptrend is where there is a consistent move higher where the market is making
successive Higher Highs (HH) and also Higher Lows(HL)

⁃ A downtrend is where there is a consistent move lower where the market is making
successive Lower Highs (LH) and Lower Lows(LL)