BY TRADINGHUB

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PREFACE
We are tradinghub_za. We provide free price action material, tools as well as our own materials,
such as this one that you are currently reading. Our interest is in your growth, success and
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our values, core principles, what we do, and why we love to help others. We are all in this game to
succeed, so why not lend each other a helping hand along the way.

Trading is not easy, but it will get simple. You need to work hard and put in the hours. Read self-
help books, do whatever that pushes you, but do not forget to put in the work.

I hope you will enjoy this guide!!! Let’s get right into it!

BELLY SYSTEM INTRODUCTION

This guide will be based on belly system mt5. It will work on all mt5 assets, but in this guide, we will
mainly be using synthetic indices.

Belly System uses Supply and Demand as well as candlestick patterns. Therefore it is a solid basis
for a price action system.

CANDLESTICK PATTERNS

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The above image displays a plethora of candlestick patterns. The most important are bullish
engulfing, bearish engulfing, doji, Dark Cloud Cover, Piercing Candle, Morning Star, Evening Star,
Tweezer top and Tweezer bottom.

Belly System does although plot candlestick patterns for you, but not all of them, mainly the critical
ones like bullish and bearish engulfing candle, Dark Cloud cover, etc. It is important for you to know
these candle stick patterns though, on your journey to becoming a well equipped trader.

SUPPLY AND DEMAND TRADING

Supply and Demand trading is a trading method where the idea is to find points in the
market where the price has made a strong advance or decline and mark these areas as
supply and demand zones using rectangles. The zone from which the price made a strong
advance is marked by the trader as a demand zone. The zone from which the price made a
strong decline from is declined as supply.

Lucky for you, Belly system has these zones plotted out already!!!

FIBONACCI RETRACEMENT TOOL

Fibonacci won’t be an alien name to you. I could go into the history of Fibonacci but that
would be irrelevant. If you would like to learn more about Fibonacci, please click here,
https://en.wikipedia.org/wiki/Fibonacci.

Fibonacci in trading, are basically certain price points where price is likely to reverse. They
are great to use for entries.

To plot Fibonacci, follow the following steps:

In an uptrend

1. Identify the direction of the market (uptrend).

2. Attach the Fibonacci retracement tool to the bottom and drag it all the way to the
top.
3. Monitor the reversal points below 0.5, such as 0.618.

In a downtrend
1. Identify the direction of the market (bullish).
2. Attach the Fibonacci retracement tool from the top, all the way to the bottom.
3. Monitor the reversal points above 0.5, such as 0.618.

Another good thing about this, is that Belly System already has Fibonacci plotted out for
you!!!

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HOW TO TRADE USING BELLY SYSTEM
Now we get into the knitty, gritty of this document, how to trade using belly system. We
will need to incorporate new techniques not provided by belly system, such as trend lines.
Trend lines help predict changes in trends, identify a break of structure, etc. We will also
incorporate patterns such as inverse head and shoulders.

SETTING UP YOUR CHART

Before going into anything else, we will first explain on how to set your chart so that you
can have a clear, clean chart.

Set you chart, according to the details above.

UPTREND
In an uptrend, the market creates higher highs and high lows. Trend lines are lines drawn
at an angle above or below the price. They are used to give indications as to the immediate
trend and indicate when a trend has changed. They can also be used as diagonal support
and resistance and provide opportunities to open and close positions. The market structure
should be creating higher highs and higher lows.

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DOWNTREND
A downtrend line has a negative slope and is formed by connecting two or more high points.
The second high must be lower than the first for the line to have a negative slope. The
market structure should be creating lower highs and lower lows.

RANGING MARKET
In a ranging market, the market has no trend. It is just in consolidation. The market just
moves sideways, with no underlying trend. We do not recommend beginners to trade
ranging markets.

DOUBLE TOPS AND DOUBLE BOTTOMS

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Double tops and Double bottoms are both reversal chart patterns.

They can also occur as continuation patterns

sometimes, where you may see a downtrend, double top, followed by a further move down.

Inverted head and shoulders

Inverted head and shoulders and head and shoulders are also reversal chart patterns.

As you can see, they can also form as continuation patterns; we can see a downtrend,
head and shoulders, followed by a further move down. They are most powerful when seen at
the top or bottom of a trend. Here, they may cause a trend reversal to occur.

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 What are the green and red lines on the System?
Many people do not know their use, but they can be used as key levels for entry. They also

Function as support and resistance.

TREND REVERSALS
A trend reversal is when a trend changes from uptrend to downtrend or downtrend to
uptrend. Let’s see how we can identify trend changes.

UPTREND TO DOWNTREND
As we know, an uptrend consists of higher highs and higher lows. An uptrend can change to
a downtrend when price breaks below the upward trend line and retraces to a resistance
close to the trend line. Belly system will also sometime show a candlestick pattern at the
entry price, but not always, so it’s important for you to know them please!!! The market will
be creating a HH and Hl, to LH and LL.

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DOWNTREND TO UPTREND
As you know, a downtrend consists of lower lows and lower highs. The market changes from
downtrend to uptrend, when it creates higher highs and higher lows.

ENTRY TRIGGERS
This is one of the most important aspects, if not the most important. This section will
explain your reasons for entry. Your stop loss and take profit should be adhering to risk
management. If you have a small account, use minimum lot size to grow the account. Do
not be tempted by greed. Trading is not a get rich quick scheme.

ENTRY IN AN UPTREND
In an uptrend, when the market is creating higher highs and higher lows, look to buy lows
and not to sell highs. Do not trade against the trend. Therefore, entry confirmation for
entry in an uptrend should be the Green support line, Candlestick patterns at the trend
line such as the bullish engulfing, bullish harami, piercing candle, etc. and price at a
Fibonacci retracement level. If the market has all these confirmations, buy without fear.

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ENTRY IN A DOWNTREND
Ina downtrend, when the market is creating lower lows and lower highs, look to sell highs
and not to buy lows. Do not trade against the trend, it ends in tears. Entry confirmation
includes entry at the trend line, entry at our red Resistance line, candlestick patterns such
as bearish harami, bearish engulfing and dark cloud cover, as well as Fibonacci
retracement levels.

TREND REVERSAL
ENTRY, DOWNTREND TO UPTREND
A downtrend consists of lower lows and lower highs. A downtrend changes to an uptrend
when the market creates higher highs and higher lows.

Your entry will be when the market either respects the trend line, or entry at a support
level. Entry could also be taken at the belly system support line combined with a
candlestick pattern.

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As you can see, the market broke above the trend line to the upside and retraced back to
the trend line. We had support/demand zone confirmation, Fib level confirmation as well as
candlestick confirmation. This was our golden setup

As you can see, price created a head and shoulders chart pattern then reversed price. The
market sold at our trend line, because we had candlestick confirmation, Fibonacci
retracement level confirmation and descending trend line confirmation, a proper setup
indeed.

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TREND REVERSALS, UPTREND TO DOWNTREND
In an uptrend, the market is creating higher highs and higher lows.

Here the market was in an uptrend. The market was creating higher highs and higher
lows. The market then broke below the trend line creating a LL followed by a LH. We took
our entry at the Resistance Line of belly system, as well as resistance zone confirmation
and candlestick reversal pattern confirmation.

Here the market was in an uptrend. The market was creating higher highs and higher
lows. The market then broke below the trend line creating a LL followed by a LH. We took
our entry at the trend line retest, as well as resistance zone confirmation and candlestick
reversal pattern (dark cloud cover) confirmation.

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ENTRY ON INVERTED HEAD AND SHOULDERS
Our entry for inverted head and shoulder is simple. We wait for price to create the left
shoulder, head and entry on the right shoulder at around the same level.

The above shows an inverted head and shoulders setup. Our entry was on the bullish
engulfing candle stick confirmation. We also had support zone confirmation.

ENTRY ON HEAD AND SHOULDERS

Our entry for head and shoulders is simple. We wait for price to create a left shoulder, head
and right shoulder. Entry will be on the right shoulder.

The above shows a head and shoulders setup. Always trade this setup in line with market
structure. This setup can be a reversal and continuation setup. If a trend is nearing an end
and creates a head and shoulders, sell without fear. If a trend is in a downtrend and creates
this pattern, sell without fear.

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ENTRY ON DOUBLE TOP
For entry on the double top there are 3 types of entries, high risk, medium risk, and low
risk. Let’s take a look.

Whatever entry you take, be assured to trade this pattern as a reversal pattern> This
pattern serves as a powerful reversal pattern.

A high risk entry is when you enter at the top

of the double top in line with the previous
high. This does offer better risk reward, but is
more risky.

Medium risk is when you enter after getting

candlestick pattern confirmation, either from
belly system or using your own knowledge of
candles.

Low risk entry, is an entry on the retest of the

neckline. This entry has a good chance of being respected, but the neckline is not always
respected.

When trading this reversal pattern, it is most powerful to trade it when there is a change in
trend.

ENTRY ON DOUBLE BOTTOM

When you trade this reversal chart pattern, it is most powerful when trading when there is
a change in trend.

Again, there are 3 types of entries

here, high risk medium risk and low
risk.

High risk entry is taken in line with

the previous low.

Medium risk entry is taken using

candlestick confirmation after price
tests the low.

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Low risk entry is taken when price retests the neckline, but this does not happen often.
Entry confirmation includes candlestick pattern confirmation, pattern in line with a change
in trend, support zone confirmation, Fibonacci level confirmation, etc.

TRIPLE TOP ENTRY

Entry is at 3rd test of triple top.

TRIPLE BOTTOM ENTRY

Entry is at 3rd test of triple bottom.

PSYCHOLOGY AND MONEY MANAGEMNT

If you have a small account, use the smallest lot sizes until you can grow your account to a
reasonable amount. Then, you may up your lot sizes. Focus on skill and growing your
account first, don’t be lead by greed.

To help you with risk management, the chart below shows the lowest lot sizes on Deriv.

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ASSET MINIMUM LOT SIZE
Step Index 0.01
Volatility 10 Index 0.30
Volatility 100 Index 0.20
Volatility 25 Index 0.50
Volatility 50 Index 3.00
Volatility 50 Index 0.001
Boom 1000 Index 0.2
Crash 1000 Index 0.2
Boom 500 Index 0.2
Crash 500 Index 0.2
Volatility 10 (1s) Index 0.2
Volatility 100 (1s) Index 0.1
Volatility 25 (1s) Index 0.005
Volatility 50 (1s) Index 0.005
Volatility 75 (1s) Index 0.005

Psychology is difficult to teach over this document. If you need help with psychology, feel
free to message our CEO. For now, speak these affirmations to yourself.

I am the best trader

I am the best trader

I am the best trader

I am the best trader

I am the best trader

I am the best trader

I am the best trader

I am the best trader

I am the best trader

I am the best trader

CONCLUSION
To all the readers, thank you so much for reading this document. Tradinghub loves you so
much and we want you to succeed. This document is free and all we ask of you is that you
follow our telegram channel.

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If you need any assistance with anything, and we mean ANYTHING, whether you need
questions answered about the strategy or need the system, please do not hesitate to contact
us.

God bless and happy trading!!!

Contact Details:

CEO

Whatsapp: 061 529 5566 –You can contact for any queries whatsoever

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