A GUIDE TO CAVEMAN TRADING

BY TED
UNCLE TED YOU ARE A WIZARD BUT UNFORTUNATELY YOU TALK TO ME
AND TELL ME TO WATCH WEBINARS AND READ DOCUMENTS LIKE THIS
ONE BUT I DON’T FEEL I NEED TO. CAN YOU WRITE ONE SIMPLISTIC
DOCUMENT TO HELP ME WITH MY ENTRIES AND EXITS AND EXACTLY
HOW YOU TRADE. I WANT TO BE EXACTLY LIKE YOU.

So, the answer to the above question will likely be no. But I can provide enough insight to give you a
chance.

Let’s get some simple things down first.

1. You are trading the exact same session everyday

2. You are trading the exact same pair everyday
3. You have built out your trading plan and risk management strategy
4. You realize you will not see trades right away but as you spend more time in front of the charts
you will start to see more opportunities. So be patient
5. You will not deviate from your plan
6. You will not be upset if you lose a trade, you will look at the trade and examine what happened
and how you can fix that
7. All your trades are journaled
8. You back test information to find out better ideas on how to trade during that session

So if you have all of that down. Let’s talk about what we are doing everyday as a trader……AGAIN
CHECK THE FUCKING NEWS

I don’t care if you use Dailyfx, forexfactory, myfxbook, fxstreet, some magician on the corner, some carrier
pigeon, but check the news before you even look at charts.

1. This allows you to prep your mind for what is coming up, essentially creating a road map for the
day. If you have planned from the night before, even better.
2. You may find that some news is planned for later in the day so that means your currency pair may
not move the way you think it will be moving because that news is of importance to the pair.

EITHER WAY CHECK THE NEWS. NO ONE SHOULD EVER SAY “DAMN I DIDN’T KNOW THERE WAS NEWS”

OK UNCLE TED I CHECKED THE NEWS, TIME TO CLICK BUTTONS TO MAKE

MONEY AND THE MORE I CLICK THE MORE I AM GOING TO MAKE, RIGHT?

If you believe that statement, please don’t read any further. Trading is about quality not quantity. Trading
is like going to the financial casino. Probability dictates the more times you trade the more chance there
is that you can lose a trade. Now don’t freak out and think you can never trade or just because you traded
yesterday you can’t trade today. Sometimes the market gives out pips like it is going out of style. This is
where one part of trade management comes in to play.

1. Some days you will make 10-30% on your account. You are the best trader on Earth, go buy
yourself those Yeezy’s or Lambo because nothing can stop you. GFY. Trading is like a sales job.
You have to pace and plan accordingly. Now a lot of you never actually had a real job (and what
I mean by real job is that you had shit you needed to pay for like – mortgage, car, debt etc) so
that meant if you lost that job you were fucked. So, you kissed your boss’s ass everyday made
sure you blew on his soup when it was hot etc.

You have to treat trading that way too. Some days you will have banner days and other days you
will feel like you are losing your job. But having that rainy-day fund in both your bank account
and your trading account removes that stress. So, when you lose that 5% in a day or whatever
your risk management dictates, go back to the days where you cleared 10-20% and remember it
can and will likely happen again.

And if you are brand new to trading, break the system. What do I mean by that? Try out as many
things as you can. Be a fat kid at a buffet. No one says you need to start perfecting your trading
a week into studying. Take your time, try different sessions, different pairs, figure out what works
for you. Trading is all about self-realization and self-awareness. The more you trade the more
you figure out about yourself. What your risk tolerance is, why you keep making the same
mistakes, why you are suddenly successful etc.

2. Go to the casino 1x if you can (or if your religion allows). Take 50bucks or whatever and play
blackjack. Or if you want to, sit and play online for free etc. But I always say use real money
because it will give you a sense of urgency. I don’t want you taking out a loan but I want you to
feel the rush of winning and losing money. The reason why I say blackjack is because the house
edge is like 51/49. In other words, it has one of the best odds of winning in the casino. Trading is
similar. You either win or lose, there is no tie, and your edge increases as you become more
educated and confident and add experience.

Anyways, sit at the blackjack table where you can play with money that will give you 20 bets.
What do I mean here? If you have $100, play at a 5.00 table (Sometimes you will need to play at
a machine and not a live dealer for that).

3. What I want you to do is manage your money. I want you to go try to make 20% return so if you
have $100 you should be able to get to $120.00. Test it out. Do you bet 5.00 a hand, do you bet
10.00 a hand do you double down, etc. Stop if you lose 20%. So, if you have $100 again if you get
to $80.00 then you are done.
4. What this will allow you to do is to provide you with a different perspective on risk management.
Maybe you win 4 hands and make 20% or maybe you lose 4 hands in a row and you now lost your
20%.

A lot of you will shake off the $20.00 win/loss and say “that was fun” or “that was shit”. That is
what I want you to say. More importantly no one lost their house, lost their job, or lost all the
money they came in with. This is the same thing with trading. Managing risk is just as important
in gambling as it is with trading. More importantly your attitude to winning or losing should be
the same. Trading is gambling. You will never be 100% right 100% of the time. You can put
yourself in that position to do that, of course, but more importantly when you win or lose you
have to understand what you did to achieve those outcomes.

In addition, you have to be able to say “hey I got 20% today in the market in 5 mins I am done for
the day”, similar to blackjack money can come fast. Just because it took you 1.5hrs to drive to a
casino and you made money in 5 minutes doesn’t mean you need to stay there. The longer you
stay the greater the chance you have of giving the money back. Treat any type of gambling or
money management like a job. Be aware of what you have and what your goals are and stick to
them.

Of course, this is easier said than done because the common things I hear when it comes to trading
are the following:

1. I need the money because I made trading my full-time career

2. X person is making 100000000000 a day how come I am not.
3. I figured because my analysis has been right all week I could open my risk management up
more and up my lot sizes
4. I thought for sure it was going up so I added positions.

If you are falling into any of the above sentences please take a step back from trading for a week.
You need to understand that trading is an individual thing. Yes, we have groups and many
different people to help and support you, but in the end, you have to find your own path and do
what works for you.

Maybe you are destined just to be a part time trader. Make 2-3% per week and a call it a day.
You didn’t fail at trading some people just mentally can’t handle having to chase money (not in
the sense of trading but in the sense of wondering will they make money today, or this week or
this month. Some people need a steady source of income and that is fine). Trading is very tough
on you mentally and it wears away at you. So, put yourself in the best position to be profitable,
whatever that may be. You haven’t failed as a trader if you still work at a job. The President of
the United States still collects a salary of $450K a year even though he has everything given to
him. Think about that for a second? The most powerful person in the world still collects a
paycheque mean while flies around the world on the taxpayer dime.
OK UNCLE TED I WENT TO THE CASINO AND LOST MONEY. THANKS, YOU
FUCK FACE NOW I AM EVEN MORE UPSET WITH MYSELF, I CAN’T TRADE
AND NOW I CAN’T EVEN WIN AT A CASINO.

Good you have learned a lesson. Don’t do what others do unless you are comfortable. HAHAHA, no but
in all honesty if you lost and applied risk management there should be no complaints. If you wrote down
the hands you lost in blackjack maybe you got unlucky. You had a 19 or 20 and dealer gets blackjack, can’t
do anything about that. Maybe you had 17 and dealer never busted when he should have based on
statistics. But the lesson here is that even though you can do everything the correct way, you can still
lose.

Which brings us up to:

UNCLE TED GO THROUGH THE CHARTS WITH ME. AND I MEAN GO
THROUGH THE CHARTS. LIKE GIVE ME CHARTS SO I CAN SEE EVERYTHING
YOU DO, I JUST DON’T WANT THOSE SHITTY WEBINAR CHARTS. I WANT
YOUR CHARTS.

Well you assholes, first off I give you everything I do every day. But you as a trader probably just glance
over it and say “meh yeah Ted makes sense, thanks I’ll go take a shit now”. Not even taking a closer look
at what I have done. So, let’s start off with our charts again. From the beginning.

FIND A CHART WITH THE HIGHER BIAS FIRST.

DAILY

4HR

You can use the weekly or monthly if you are swing trader but I prefer these two charts for my review as
they help form opinions for me.
The next thing we are going to do is dissect the chart. And what do I mean by that? It means plotting out
points of interest. Like when you go on a road trip you probably just don’t get in the car and drive, you
set up the map (GPS) to figure out how to get where you are going. How much gas will you need? Do you
need to stop to sleep? You plan. Everything in your life is planning. Trading should not be any different.
So here we are planning.

So, what I have done here is plotted an upper resistance line, a lower support line, and then what I
consider a channel. So yes, there are 4 lines on my chart in the daily, maybe you have 5, maybe you have
1 but this gives me the information I want.

I can then see now there seems to be some channel that has been respected for a few months now and a
slight trend to the bearish side. Does this give me enough info to trade? No, but it provides me with a
start. I will be looking for daily setups probably leaning higher to a bearish trend when it lends itself to
me but if I do take buys I am aware of my resistance lines I have drawn.

WELL TED FUCK, THAT IS SO OBVIOUS. THAT REALLY DOESN’T HELP ME

BECAUSE STARING AT CHARTS DOESN’T MAKE ME MONEY CLICKING
BUTTONS DOES.
Alright, so we have the initial basis for our trades. We don’t really need to deviate from this information,
we just have to dig deeper. Now by following your trading plan this is where you begin your process of
finding a trade that works for you.

First let’s look at the 1hr time frame. Now this is assuming we have used our 4hr or daily as an overall
bias.

So things I notice right away on the 1hr frame

1. We are in an uptrend. – But Ted didn’t you say USDJPY was an in an overall down trend on the
higher time frames? Yes! But this is where your trading plan comes into play. So, I am looking for
100 pips. Here I am looking at the potential in this 1hr frame of the wicks being filled the upper
 resistance that is highlighted as well as the first highlight at like 111.460. So with all things being
equal if I see a range that fits my trading plan I would execute.

So let’s talk about this thing called range. Once again it is the distance between two areas (they could be
zones or lines or whatever you want) to allow you to get your pip count. Don’t be confused with ranging
markets or price ranges. THIS IS MY OWN TERM I MADE IT UP.

Well where does the term RANGE come from. It comes from when I used to play poker. So if you know
anyone that plays or if you play yourself, there is always someone that you play with that tries to guess
the cards you are holding “you must have Ace and a king”, “you have the flush don’t you”. Well some of
the top players in the world can figure out what cards you have in your hand quite accurately. Now it isn’t
some witch craft but it’s a deduction of information. Looking at previous hands played, type of player,
the way the hand was played (betting vs calling vs checking) people can deduce the hand the player could
have. Now you aren’t looking to pick an exact hand but a range of hands that make sense.

Similar to poker, in trading you are doing the same thing. You aren’t trying to be 100% accurate as that is
impossible but if you can find a range that brings a high probability for success you will be very profitable.

SO HOW DO YOU DEFINE A RANGE?

If you have read the document “Let There Be Range” it will provide insight but I think people want more
information on that. So here goes:

So you can see here I have provided what I consider 3 different possible ranges. Now based on your
trading plan it is up to you to determine what makes sense.

When evaluating a range:

1. Look for ranges that fit your trading plan.

What do I mean. If you are looking for 50 pips don’t find a range that is exactly 50 pips but find a
range that is larger. So,

In this example, I see price is at 111.229 and it seems to be dropping. So, if I think support is at
110.900 that gives me 300ish pips to attain 50 pips. So, I can place a pending order in that range
to extract 50 pips.

Now my SL will be 50 pips and my TP will be 50 pips.

So now I look at my 15 trigger point. I can see my resistance level but I can’t see my support line
(110.900) which is ok. But more importantly I can see the trend still dropping a bit (if you look to
the left you see we tapped that resistance level and now dropped creating lower highs)

I would now be looking to set a pending order. How do I go about that?

I am mapping out my zones. Now I have to determine how I can get my 50 pips. So, I have
provided 2 directions. But more importantly what I have done is identified a potential support
and resistance level (mini) to give me a map. I am only looking for 50 pips so I expect if we are
moving upwards we should break into that zone. If we are moving down we will break the bottom
zone.

This is how you identify trade setups. You are thinking to yourself? If the market gains
momentum where do we think we would likely break. These are your keys. You have to make a
judgement call. Now because we are using 50 pips as a range you may find that the 15min frame
may move too hard in one direction. So what do we do?

We drop into the shorter time frames again.

Now looking at the 5min frames we can see an even more defined drop. But more importantly
we see where we could be touching a major zone as we drop. Now suddenly your trade becomes
even more apparent. But more importantly we know that if we tap that 5min zone more than
likely there could be a push up. So be aware!
GREAT UNCLE TED NOW I HAVE AN IDEA OF WHAT IS HAPPENING, HOW
DO I PROTECT MY TRADES AND HOW DO I IDENTIFY MY SL AND TP POINTS

This is probably one of the skills of trading that comes with experience. But here are some important tips.

Looking at this chart once again you can see there are various wicks (price taps and rejects). So we don’t
want our stop in those wicks. We may want them above those wicks. More importantly we may want
the SL set in the higher time frame.

So you can see I have placed a dotted line right in a region that if we tap more than likely the trend will
push up. Now it’s not an exact science but this is an example of my thought process. Now sometimes
you catch a spike and it taps you out. That is fine. It happens. The idea once again with a SL is to protect
your account and your equity. As the trade develops you can then move your stop to the next set of wicks
So now I have anticipated a trade going to that highlighted region. Once in that region I can then move
my SL into the prior zone more than likely it will come close to tapping but if the momentum is there we
will have a continued drop.

FIGURE OUT YOUR TP POINTS

Similar to your stop losses you want to place your TP points now just before a major zone or
support/resistance level. It makes no sense to try to time your TP points to get maximum pips. Trading
is long term and a marathon. Take your small base hits instead of going for home runs each time and
secure the bag.

So from the example above depending on direction I choose I am looking for TP points just below or above
the specific zones I have highlighted.

By looking left I see a lot of wicks which means price rejection so I don’t want to take a chance and miss
my TP because now the next portion of the zone that is tapped is with a smaller wick. So I place my TP
outside those zones to ensure momentum will carry me through in most instances.
OK UNCLE TED I AM STARTING TO UNDERSTAND IT BUT HOW TO DO FIND
MOMENTUM?

Another question that people ask constantly about. Momentum is with trend and market timing. As you
back test you will find momentum happens daily around the same time.

1. When the markets open (if you don’t know this, I suggest you google or read a document in the
drive).
2. When there is a tap of major support or resistance. Usually on the daily or 4hr frame. The harder
the tap the bigger the momentum. What I mean by this is when we come to a major level that
hasn’t been hit before or touched in a long time it will more likely reject very hard, so take that
opportunity to scout out a trade or set pending orders. Keep in mind it may take a bit of time
(maybe 1-2hrs to get moving but when it does you will have a nice trade.

LET’S LOOK AT EXAMPLES

From this GOLD chart on the daily you can clearly see the structure of the market. So, if you are able to
draw out various support and resistance levels you will see where price is respected. Now with that in
mind you just drop to the smaller time frames and plan your trades accordingly.

In this case 1294 was a huge resistance level and if you had taken a sell there you could have dropped all
the way to 1243. That is a 50.00 move over 10 trading days. Now if you were a swing trader you would
identified this. As a scalper you can find multiple opportunities for either trend trading or counter trend
trading.

It is important that you frame your charts and really get an overall bias for the pair that you are trading.
As you get stronger with that single pair you will start to see things like this as clear as day. You will also
start to understand the nuances of that pair.
THINGS THAT WILL HELP YOU WHEN LOOKING AT A SPECIFIC PAIR

1. Figuring out when that pair moves the most. Simply look at the charts and look for large candles,
which mean usually it is moving well in that time frame. Go back a few weeks or few months,
whatever you feel that will satisfy your knowledge of that pair. There is no specific rule around
this.
2. Seeing if there are any correlations with any other pairs. As an example USDJPY usually correlates
well with Gold. So even if you don’t trade both pairs by looking at GOLD going up you know more
than likely USDJPY will be dropping.

(SINCE GOOGLE HASN’T BEEN INVENTED YET AND I AM USING A TIME MACHINE TO TRAVEL TO TEACH
YOU)

3. Sometimes economic data for one pair may affect another pair slightly. So as an example, the
YEN is a safe haven currency so when Brexit happened the YEN gained strength in all values
(USDJPY/CADJPY/EURJPY/GBPJPY) so sometimes when you see something major happen with
once currency look to see what could happen with any of the safe haven currencies. People are
always in protection mode so you have to be aware when there is fire people are definitely
running for safety.

IN THE END NOTHING WILL GIVE YOU MORE KNOWLEDGE THAN JUST
TIME IN FRONT OF THE CHARTS. REMEMBER THIS IS A MARATHON NOT
A SPRINT.
UNCLE TED GIVE US MORE…….

Sure, I will give you more information. Let’s talk about YET AGAIN…how I take trades and what I am
looking for. I will give you a crash course in taking trades in smaller time frames which can be used for
anytime frames.

1. Be aware of the overall market movement

2. Be aware of zones
3. Be aware of wicks
4. Be aware of the session you are in and any nuances coming up (NEWS/SPEECHES/TIME OF
DAY/DAY ITSELF)

HOLISTIC VIEW OF THE MARKETS

Every week the market opens on Sunday at 5pm eastern or whenever it opens for you. That is the Asian
Monday morning in case you haven’t figured out yet that some countries time zones are ahead of others.
So, understanding these small concepts will help you. What you also have to understand is that just
because you see something from your analysis on the Saturday/Sunday mapping your trades doesn’t
mean it is going to happen right as the market opens.

The reason being is because the market needs to set up. What do I mean by this? Essentially, think of the
market like a race car. You throw the car on the track without warming up the tires it’s not going to have
the greatest traction. Similar to trading, the market hasn’t gotten traction in the 1st hour of trading in the
new week.

How do we know this? Look at the fucking spreads and the volumes. Spreads are high, volumes suck. So
as a retail trader does this make the most sense to take trades. Sure, once in a while you hammer those
Sunday night trades out really well, but other days you are taken for a ride.

So, what do I suggest here? Run your trades like the market runs itself. When the market is in peak form
you should be in peak trading form. So, Sunday/Monday keep the foot off the pedal just like the market
does for the most part. Then the middle of the week hammer the gas like the market does. If you follow
the trends of the market in both the charts and the dynamics your trading will improve drastically.

I noticed as an example that I was making the bulk of my gains mid-week after looking at my journal. So
why not take the extra freedom and just look to trade the days you are most profitable? The whole idea
of trading is profitability and freedom. So, treat it as such.

At the same time, it doesn’t mean you can try out demo trades or work on your analysis. It just means be
cautious when you are not in the prime of the market.
THE SAME SHIT HAPPENS EVERYDAY IN THE FUCKING MARKET. THE MARKET IS A JOB.
PEOPLE HAVE JOBS. THEY MOVE THE MARKET. YOUR GOAL IS TO FIGURE OUT WHEN
THEY ARE TAKING A SHIT, LUNCH, COFFEE, AND PREP YOURSELF ACCORDINGLY.

There is a reason why I only trade during 7am and 11am in the morning (eastern). Take a fucking close
look at this shit:

See that big FUCKIN set of bars??? Holy shit, lots of volume there, compared to everywhere else. I learned
this a similar concept a long time ago playing poker.

Goto a casino on a Wednesday night at 830pm then goto a casino on a Saturday at 2pm – 8:30pm. You
will see a big difference in traffic and also the types of people. I was most profitable playing poker on the
weekends because that was when all the people who worked all week had time to go blow money.

Why would I want to sit and play poker during the week with the regulars who are grinding out a
paycheque.

So, when I see the market has the most volume during one time, if I can trade that session why wouldn’t
I?

Now that doesn’t mean that you can’t trade the other sessions but you have to be aware that you will not
have the volume so you will have to adjust your plan accordingly.
TELL ME UNCLE TED WHAT MAKES YOU A SUCCESSFUL TRADER

A lot of people ask this question and to tell you the truth it’s just really stupid and boring. I was never
really the smartest person, and I never worked the hardest, but others think I have worked extremely
hard. Maybe the best quality I have in terms of work ethic is cutting out the bullshit. I always looked for
the most simplistic way to do something. I didn’t want fancy shit etc. Similar to when I goto the gym, I
see all these people doing all these weird exercises and shit and I think to myself, what did people do
before we had all these machines and stupid moves. They did the basics.

When you dive into anything you think of the basics. For the most part, there are things that stand the
test of time and in trading it really isn’t any different.

So, when I evaluate my trading it was an evolution of breaking things and then figuring out what worked
the best for me and doing the same thing over and over.

I can honestly sit all day and watch the same show over and over again and not be bored. I like repetition,
it’s fun for me. So maybe that is what I found fun about trading. The challenge of seeing the same thing
over and over again and trying to catch it.

There was a good Simpsons episode many years back. Basically, Principal Skinner was trapped in the back
closet of his house when he was trying to clean shit up and it went like this:

To get my mind off that ugly confrontation... I went home and began bundling my old newspapers.
Suddenly the pile fell. I was trapped. Let this be a lesson to recycle frequently. I stayed alive by eating my
mother's preserves... and maintained my sanity... by dribbling a nearby basketball. I made a game of
seeing how many times... I could bounce the ball, and breaking that record.

“By dribbling a nearby basketball. I made a game of seeing how many

times... I could bounce the ball, and breaking that record.”

If you haven’t watched The Simpsons you will find there are a lot of interesting life lessons and relatable
episodes. I suggest you watch at least 1 episode.

But that little portion of 1 episode is really what trading is all about for me. How many times could I be
successful and then let’s see if I can break it.

Trading in itself is an individual sport. Some of the best traders are loners, I am a loner. I can’t really stand
being around people. Do I enjoy interaction, sure, but on my own time. Some people need to be out all
the time. I am happy at home. Sometimes I like to sit and look at the charts, it’s a mystery, it’s intriguing.

So having that kind of weird love affair with trading allows me to excel. It also helps that people ask me
the same question 1000s of times a day and I don’t get upset answering them. I just hope people are
asking the question because they genuinely can’t figure it out for themselves, via google, the chats, or
even the drive.
As a trader, you must be resourceful. You are constantly asking why….so you need to figure out how you
are going to get those answers. Sometimes it’s up to you and you alone.

TRADING A PARTICULAR SESSION

So now I am going to talk about the nitty gritty of trading. Pretty much what I do on a daily basis and what
I am watching. I will work with GOLD and provide insight.

THE BASICS

I know I am trading the NY Session. Once again, the NY session opens up at 8am which is 15gmt on my
charts based on my broker. No, you can’t change your charts on MT4 to mirror your life. Fuck do some
math and deal with it.

For the most part I have spent the night before observing the charts for maybe half hour or maybe 1 hour
or maybe 10 minutes. I am just looking to see overall direction. Get a feel for what could be happening
the next day. So, when I wake up in the morning I can be surprised and say “WTF” or I can say “meh
figured that was going to happen.”

It’s a good way to train your mind and also not allow yourself to get trigger happy. I look at the charts but
I am not trading but practicing analysis so it allows my mind to stay sharp. It’s inevitable you are going to
see the same things re-occur but at different spaces or times so it helps your confidence to know that you
were right again.

SO, LET’S PULL UP A GOLD CHART

4HR
1HR

15M

So right away what do we see?

 1. I have tried to map out the same support and resistance for each frame. The 15min chat is a little
different because that is what I see in my screen. So now not only do you have a large bias but a
smaller bias.

Sure, you can argue that I should have the same support and resistance levels on each chart but
then at the end of the day I am using my larger charts to provide me a bias and I am executing on
my shorter time frames. So, this works for me. So, FUCK YOU. When you figure out what works
for you just do it. Remember trading is subjective.

2. Based on the higher time frame bias we can see we are in an uptrend. This is right just as the
market has opened for the US Session (8am) so we can see many opportunities where we could
have set ourselves up at 7am for these pushes up.

LET’S TAKE A LOOK!

When I drop into smaller time frames I am always looking for specific items to help my trades.

1. I know the long-term bias so if we are bullish I am looking for pull backs. Normally pull backs
happen at the beginning of new candles right after their initial push. This is something you have
to study and that will come with experience. So in the 5min example you can see as we dive
deeper into the chat what I mean.
I have highlighted the first 25 mins of movement after 8am. You can clearly see the first 2 candles had a
nice push then we started a pull back. But judging from the higher frames we know more than likely we
should be breaking that resistance level.

BUT TED HOW DO WE KNOW?

But more importantly we know every day at 8am or for any beginning of a session for that matter there
is going to be hard movement in a direction:

So if you ever watch those idiots line up for 6 hours just to save 5 bucks….then there is that stampede,
well that is what the market does as soon as the session starts. The great thing because FOREX is 24hrs a
day the market is always moving so you can catch those spikes and call it a day 😊😊
Maybe that is your plan now, to just catch the initial crush of pips pushing through the session open then
leaving for the rest of the day…. similar to what I do at 7am to 9am every morning.

Now keep in mind, this doesn’t happen all the time and it may even happen before the session opens but
key points are to watch your main time frames (15/1hr/4hr) because they will provide you insight as to
what is happening and that is when you can make your judgement call.

WHAT DO I MEAN BY THAT?

Quite simply taking your profits and running before we have the drop to reload and fire again. Let’s take
a look at an example

I have gone ahead and opened the 5min frame on GOLD. You can see I have highlighted 2 candles. One
candle being the 7:55am candle and the next candle being the 815am candle. So you can see that if I
entered around 7:15am with the anticipation of hitting the market open I would be looking for that first
zone wick (which is the 1st highlighted candle), ultimately looking for the upper resistance but if was
already in for 10 pips and I made my quota why do I need the 815am candle which only gives me another
3-4 pips but not until we dip a bit between 8am and 810am.

So, little tricks like this can help you understand the market. Once again this doesn’t happen all the time
but in most instances, you may find you get a nice push at the last few minutes of a candle that doesn’t
come back for a bit and you can exit and have a good time.

Now once again this is all to do with your trading plan and how you want to execute so maybe you want
to hold for a longer or bigger gain with a bigger risk to reward (maybe 2:2 or 3:3).
BUT WAIT IT GETS BETTER

Ted look at those candles how do I avoid that stop out when I entered in at 7am. You are a fucking moron
I have no idea why I read this far just to prove you are an idiot.

Well first off if you have gotten this far congrats, I appreciate it. Second, this is why I say be weary of the
shorter time frames because:
If you had looked at your higher time frame you were not even close to hitting a support level, it was a
tap into a zone so your stops would have been below those taps probably here:

In addition, if you had looked left you would have seen a huge wick that was formed with another zone
previously and we were just re-tapping that level. So, what have we learned here. LOOK AT YOUR
FUCKING CHARTS AND OBSERVE WHAT IS HAPPENING AT MULTIPLE FRAMES AS WELL AS LOOKING LEFT.

I AM SORRY UNCLE TED FOR BEING AN ASSOHOLE. ALTHOUGH IT’S

TOUGH WHEN YOU ARE CONSTANTLY AN ASSHOLE TO ME.

It’s quite ok. Just remember by asking questions, this is how we learn. So now you have learned
something new. Onto the rest of the story.

So you have seen a little bit of trickery that is used to complete trades but more than likely you weren’t
paying attention to session open and now you still want to catch some trades. What should you be aware
of?

1. Be aware of the major candle closings (like 1hr and more importantly 4hr), the markets will start
to consolidate and pull back before blasting off again in the following hour so if you take entries
you could be in a slightly large draw down so plan accordingly. Most instances you could probably
sneak into a trade just before the hour close (or 4hr close) where the pull back is just about
finished and you may see a push right at the new hour (new 4hr as well) to move again in the
direction of the trend.
 2. Now keep in mind if we are at a major support/resistance level (on the daily or 4hr) it may not be
as smooth as you think putting an entry right before the new candle and then we hit a major
support or resistance level and we fire the opposite way and you are fucked.

So, you can see now as we progress through the morning the upper edge of the 15min resistance has
been hit. This happens at just about 20mins before the 9am candle which is a major 4hr candle for
currency but the 3rd hour in the major 4hr candle for gold (if you recall gold closes 1hr a day between 5pm
and 6pm eastern)

More importantly if you had held your buys you would have hit the target which would have been the
higher end of that resistance level. It even gave you the 8:30 candle as well to get out. So congrats you
navigated to almost 9am just buy following the trend and being aware of the market pull back and various
zones.
Now you can see from 9am to about 9:45 we have a pull back. The NYSE opens at 9:30am so there is a
potential for a drop depending on the equity markets but more importantly we never really break that
support level on the 15min charts so it’s safe to say we should continue up to fill the top level wick on our
charts.

At 10am the new 4hr candle starts with gold and you can see from about 9:45-9:55 we have that surge
starting again, so once again be aware that as the markets are starting to form some things are starting.

BUT UNCLE TED HOW DO I KNOW THAT IS GOING TO HAPPEN, WE ARE IN

THE 15MIN FRAMES AND NOW THE MOVE HAS HAPPENED AND IT’S TOO
LATE.

Well once again have no fear, I have some quick tips for you. They are called the 1min and 5min time
frames. They give you the hints. These time frames are to be used with great caution as they fake you
out a lot but also give you insight.
What a load of shit this is. The 1min frames seem like they are all over the place. But not necessarily.
Remember you have multiple time frames providing you confluence to say the market is moving up so
what is happening here.

THE MONEY SHOT

Yup the money shot. Why do I call it that, well because you all watch porn (yes ladies too…don’t worry
nothing wrong with that) but more importantly this is what is going to grab you those pips.
How do we determine this money shot. Well it’s quite simple really, we are looking for multiple touches
at a resistance level but more importantly strong momentum, which we normally have as a new major
candle forms. So, let’s dissect this.

That set of candles is a key. Once again not all the time but most of the times if we are moving in trend
you will find the last 10-20minutes of a candle starts to pull back just to start to move further up again.

So, lets now see the 1min candle in action:

So, some observations there from 9:55am to about 10:18am. We had an initial push then a pull back
which turned into a consolidation only to move up higher and eventually break resistance and fill that
1min wick because once again we had momentum.

Now let’s take a look at the higher frames to see the same thing:

5 MINUTE

You can see the 5min frame for the most part had just a minor drop then the push up but more importantly
over the morning we never returned to that lowest point which were those two taps early around the
7am hour.

These are little bits of info that can help you as well to determine direction is stable. Looking at those
major zones and seeing if we ever come back to tapping them again.
15 MINUTE

1 HOUR
Now most importantly, the 4hr frame:

Not only did we continue trend but:

1. We filled the wick pretty much because we were in momentum

2. We broke the resistance level (we had multiple touches but but momentum stayed on our side
because you can see this little piece of info: