RETIRE YOUNG forex

technical and tactical

EBOOK

By : Forex Mantra’s
#MantrasLegend
• CHAPTER 1 : WHAT IS FOREX

• CHAPTER2 : TYPEOFCHART

• CHAPTER 3 : TYPE OF TREND

• CHAPTER 4: SNR

• CHAPTER 5 : KEY OF MULTITIMEFRAME

• CHAPTER 6 : TRENDLINE
 CHAPTER 1: WHAT IS FOREX
• Forex, or foreign exchange, can be
explained as a network of buyers and
sellers, who transfer currency
between each other at an agreed
price. It is the means by which
individuals, companies and central
banks convert one currency into
another
• We can trading using any devices such as
smart phone, Computer, laptop, ipad as long
your devices have connection to the internet
• Market open from Monday to Friday because
its depend on BANK. The forex market is
run by a global network of banks, spread
across four major forex trading centres in
different time zones: London, New York,
Sydney and Tokyo. Because there is no
central location, you can trade forex 24
hours a day.
Major Pair Minor Pair
Currency that pair with USD. Currency that not pair with USD. Known as Cross Pair.

Euro Cross Yen Cross Pound Cross Lain-lain

EUR/USD USD/JPY
EUR/CHF EUR/JPY GBP/CHF AUD/CHF
GBP/USD USD/CHF
EUR/GBP GBP/JPY GBP/AUD AUD/CAD
USD/CAD
EUR/CAD CHF/JPY GBP/CAD AUD/NZD
AUD/USD
EUR/AUD CAD/JPY GBP/NZD CAD/CHF
NZD/USD
EUR/NZD AUD/JPY NZD/CHF

NZD/JPY NZD/CAD
 CHAPTER 2:
TYPE OF CHART

• CANDLESTICK
CHART
 CHAPTER 2:
TYPE OF CHART

• BAR CHART
 CHAPTER 2:
TYPE OF CHART

• LINE CHART
CHAPTER 3: TYPE OF TREND

TYPES OF TREND

There are 3 different types of trend in Forex Markets :

-UpTrend
-DownTrend
-SideWays
All these trends are sequential

This is the trend for reversal:

1. UpTrend-Sideways-DownTrend
2. DownTrend-Sideways-Uptrend

And this one is called continuous Trend:

3. Uptrend-Sideways-Uptrend
4. DownTrend-Sideways-DownTrend

So guys, the most crucial KEY here before each trader entries,
is the Sideways.
REVERSAL TREND (Downtrend-Sideways-Uptrend)
REVERSAL TREND (Uptrend-Sideway-Downtrend)
CONTINUES TREND. (Uptrend sideway Uptrend)
CONTINUES TREND(Downtrend sideways downtrend)
What’s the relation of all these trends with our trading?

-It is to determine whether a currency is a short term entry or long term entry

-It’s important to recognize these trends so that we know when is the time for scalping,
swing and intraday

-Just by looking at a trend won’t ensure if it’s right, so we need analysis by using
trendline and SnR

So the KEY is ‘’Waiting Game’’

wait for breakout
Wait for pullback/retest

All the decision we made when the price in sideways

 CHAPTER 4: SNR

SUPPORT RESISTANCE
• Lowest Price • Highest Price
• Buyer focus area • Seller focus area
• Buy Zone • Sell Zone
Support and Resistance

Before I explain more in detail. I will first introduce what is support and what is resistance or
also known as (SnR):-

SUPPORT is place where we need to look for BUY because support is the level where the
demand is strong enough to buy mature causing the price to stop from falling

RESISTENCE is place where we need to look for SELL because resistance is the level where
the trader sells the currency that cause the price cannot rise higher than the resistance level
Support and Resistance have two types that influence our decision to entry:-

Support:
• Strong support
• Weak support

Resistance:
• Strong resistance
• Weak resistance

Support and resistance might also change if there is a breakout (bo):-

Support breakout = support becomes resistance (SBR)

Resistance breakout = resistance becomes support (RBS)

SUPPORT & RESISTENCE SHOWS:

SNR concept is the basic form of forex technical analysis

Forex traders look to buy in support or nearby areas that have the
potential for an upward price
Forex traders look to sell at resistance or near areas of resistance
levels that have the potential to decline
 Must remember !

- Buy at support level

- Sell at resistance level
How do you determine whether the SnR is strong or weak?
Ok read this:-
• To identify whether the SnR is strong or weak is so simple. There will be many
retests/rejections in our SnR zone which indicates that the SnR is strong because it
marks that the price is difficult to penetrate our SnR zone.

• Secondly, look for SnR that is in the father’s timeframe such as 4 hours, daily,
weekly or monthly. It’s not wrong to look into small TF (timeframe) such as 1 hour,
30 minutes, 15 minutes and so on. Its just that small tf have many small
noise/movement that will give no big impact to the upper tf.

Got it guys ?! I wants to share some example to you guys.

Refer to the picture below

What is the function for we to identify strong and weak SnR?
Why don't we just guess them?
First is to get a sense of security as one of the confluence/reason when we
want to entry. If you want to join racing, you wanted a strong, good car or
you want a weak bad iron car. Definitely the strong one right? So that we
have a sense of security and one of our confluence/reasons to win. Same goes
when we apply to the market.

Strong SnR is a place where is is difficult for the price to penetrate/break.

Price needs several times of momentum before it manages to break it. For
weak SnR, the price is easily penetrated/broken thus it will increase our risk if
we enter there
 CHAPTER 5 : KEY OF
MULTITIMEFRAME

MONTHLY , WEEKLY ( BIGGER TIMEFRAME )

DAILY, H4 ( MIDDLE TIMEFRAME )

H1,M30, M15, M5, M1 ( SMALLER TIMEFRAME )

MULTITIMEFRAME FUNCTION
MIDDLE TIMEFRAME SMALLER TIMEFRAME
-Looking for Entry zone -Sharp Entry
-To determine breakout area
-First confirmation
BIGGER TIMEFRAME
-To find Out Direction
-For Marking SnR zone
 CHAPTER 5 :
ENTRY AND SET
TP

• BREAKOUT
RESISTANCE
• BUY
 CHAPTER 5 :
ENTRY AND SET
TP

• BREAKOUT
TRENDLINE
• BUY
 CHAPTER 5 :
ENTRY AND SET
TP

• BREAKOUT
SUPPORT
• SELL
 CHAPTER 5 :
ENTRY AND SET
TP

• BREAKOUT
TRENDLINE
• SELL
 CHAPTER 6 : TRENDLINE
TRENDLINE

TRENDLINE is a line where we mark the formation of a trend. Either to predict an

upward trend (UPTREND) or a downward trend (DOWNTREND)

How does TRENDLINE work?

📈BUY at TRENDLINE UPTREND

📉SELL IN TRENDLINE DOWNTREND
Example of trendline function for DOWNTREND.

For DOWNTREND we will focus on SELL only, we sell only at the RED line
Example of trendline function for UPTREND.

For UPTREND we only BUY, only BUY at the BLUE line.

Trendlines can act according to the market behavior same as SnR.
What? Trendline can have the same behavior as SnR. The answer is yes.

Its just the way we find and setup it is different. The concept is still the same.
Below are the types of trendlines:-

• Major Trendline (Pulled in large tf for example H4, D1, W1 & MN)
• Minor Trendline (Pulled in small tf for example M1, M5, M15, M30 & H1)
• Trend Trendline (Pull big tf to find the trend of a market, bullish trend/bearish trend)
• Trendline Support (Any tf)
• Resistance Trendline (Any tf)
• Support becomes Resistance Trendline, SBR (Any tf)
• Resistance becomes Support Trendline, RBS (Any tf)
Take note, all of these trendlines type will be used. Not a single one is not used. So you need to understand this introduction first
.
There are two ways for each trader to draw a trendline:-

1. From body to body

2. From shadow to shadow

There is no compromise on using these two methods. You may use both methods
at the same time. All methods are valid for all currency and commodities pairs.
How do you draw a trendline?
For uptrend/support line trends:
- Find two lowest points that goes up, draw from the 2 points until the end.

For downtrend/resistance trendline:

- Find the two highest points that goes down, draw from the 2 points until end.

What timeframe is appropriate to draw the trendline?

• Major trendline: TF W1-D1-H4

• For minor trendlines: TF H4-H1

Lower tf is not suitable to determining current trends.

Look at this

First, we mark the top as trendline resistance,Then we look for support trendline, In order to draw them you need to find two
prices that go up for support’s trendline & two prices that go down for resistance’s trendline

If the price goes to trendline support we need to look for buy, and if the price breaks above the trendline resistance we can
focus on buy
One other example, Firstly, I draw the resistance’s trendline. Secondly, I connect the declining price

Then I draw the support’s trendline .. two prices goes up, I connect it… When the price reaches the resistance’s trendline, we can
sell… when it reaches the support’s trendline

it will be transparent .. then you can focus on selling

This is an example of a resistance’s trendline breakout become support

First, just draw the two highest prices that are declining, when it reaches the 3rd point it will breaks up,

Then wait for it to return to the trendline that is already marked (3) we buy .. because it already break out the
upwards.
SUPPORT TRENDLINE FOCUS ON BUY
RESISTANCE TRENDLINE FOCUS ON SELL
BREAKOUT RESISTANCE TRENDLINE
AND FOLLOW SUPPOER TRENDLINE
3 TOUCH SUPPORT TRENDLINE AND
BREAKOUT BECOME RESISTANCE
Here the result when you know how to use Trendline
RETIRE YOUNG EBOOK

By : Forex Mantra’s

#MantrasLegend