Forex A-Z Study GUIDE 
By Jessica G 

 
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TABLE OF CONTENTS 
Setting Yourself Up 

The Basics 

Candlesticks 

Chart Patterns 

Price Action & Market Structure  

Support & Resistance & Zones 

Moving Averages 

Oscillators & Momentum Indicators 

Elliot Wave 

Harmonics 

Using Indicators 

Trading NEWS 

Psychology 

Risk Management 

Time Frames 

Confirmations 

Strategy 

Stacking Trades 

Stoploss and Take Profit 

Scaling In 

Measuring Pips 

 
 
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Set Yourself Up For Success 

● There are 3 very important apps you will need when you begin trading 
currency. Those are as follows:  
○ A trading platform (MT4 is recommended) 
○ Charting software (Tradingview recommended) 
○ A good broker (Will discuss in more detail) 

● When choosing a broker we need to keep a few things in mind: 

○ Choose a broker that is regulated 
○ Search up reviews of the broker before investing with them. Forex 
Peace Army is an excellent resource for this.  
 
● Finding a broker is fairly simple. Just search for brokers in your country 
into Google and from there do your research. For example, I would 
search “broker in Canada” and then filter those options based on the 
reviews 
 
● Brokers will tell you if they are regulated by a government institution on 
their website. Scroll to the bottom of the home page or pop this into a 
search engine 
 
● How to sign up with a broker?  
○ Go to website. Click “sign up for demo account” 
○ Follow directions and enter details 
○ You will be prompted throughout process. There are many Youtube 
videos that will guide you through this if you need visual aids.  
○ You now have an account with said broker. At a later time you can 
fund a real account where you can trade real money. You will need 
to provide the broker with certain details and photos of ID, so be 
prepared for this ahead of time :) 
 
● A breakdown of tradingview can be found h
​ ere 
 

 
 
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The Basics 
● In this section I will give a very brief overview of the basics. If you have 
any experience trading, this section may be repetitive for you so feel free 
to skip :) 
 
● A “real account” 
○ This is an account funded with your own capital  
○ Funding a real account is done through your broker 
○ Most brokers will require you to submit documentation before 
funding with real money. This consists of showing identification 
and proof of address  
○ Please refer to your broker on the funding process  
 
● A “demo account” 
○ This is a simulation account 
○ The money used is not real, however it mimics a real account 
○ When your begin your trading career, you should use a demo 
account until you feel comfortable with the platform and your 
strategy (this time period is different for each trader) 
○ You do not need to submit identification to trade on demo 
  
● How do we enter a trade? 
○ First things first you’ll need to set up your MT4. This is an app 
available on itunes and the google play store  
○ Using the login details your broker will supply, login to your MT4 
account 
○ I recommend you take some time to explore you MT4 account. 
Again, there are many detailed videos on Youtube that will give you 
a tour of MT4 (I won’t waste time discussing every detail here) 
○ There are four types of “order” entries..  
○ A ​Buy limit ​order is an order placed in anticipation of a bullish 
(upwards) move, that will activate at a certain point ​below​ current 
price b
​ efore reversing/moving up 

 
 
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○ A ​buy stop​ order is an order placed in anticipation of a bullish 
move, that will activate at a certain point a
​ bove​ current price 
before c​ ontinuing upward 
○ A ​sell stop o
​ rder is an order placed in anticipation of a bearish 
(downward) move, that will activate at a certain point ​above 
current price before ​reversing/moving down 
○ A ​sell limit o
​ rder is an order placed in anticipation of a bearing 
(downward) move, that will activate at a certain point below 
current price before ​continuing down  
 
● What is a “spread”? 
○ When you begin trading with a broker, most will not charge you 
any fees 
○ How does the broker make money? They profit by charging you a 
small amount every time you enter a trade. This is referred to as 
“spread” 
○ This amount is usually extremely small (some as low as .1 pips) 
○ You can find a brokers spread by searching for reviews online or 
reaching out to their support team 
 
● What are the main components that make up a successful trading 
strategy? 
○ A solid understanding of price action 
○ The ability to spot trends and reversals 
○ It utilizes proper risk management 
○ It works! 
 
● Make sure you choose a trading strategy that suits your personality. For 
example, if you are someone who is generally impatient… you won’t 
want to trade long term. On the other hand, if you are someone who 
hates spending hours in front of a screen you likely won’t enjoy scalping. 
Do some self introspection before deciding on a strategy 
 
 

 
 
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● How do you find a trading strategy in the first place? 
 
○ Start here. First, you are going to want to determine the time 
frame in which you want to trade. Short term? Scalp or swing. Long 
term? You might like position trading. Here are the different types 
 
○ SCALPERS​- Hold trades for minutes at a time. Look at the 1M, 5M 
and 15M time frames 
○ DAY TRADERS​- Hold trades for hours at a time. Look at the 15M, 
1H and 4H time frames 
○ SWING TRADERS​- Hold trades for days or weeks at a time. Look at 
the 1H, 4H and daily time frames 
○ POSITION TRADERS​- Hold trades for months or years at a time. 
Look at the D, W and monthly time frames 
 
● NEXT… You’ll need to figure out the different types of trading strategies 
○ Because this is a beginners section we will not get into too many 
technicals here. However… I am going to list a brief summary of 
strategies below. You can then decide for yourself which one you 
will like to trade with going forward 
○ I will attach a short video explaining each style briefly below 
 
● I am including this in the beginning so that you can apply all other 
concepts to this particular strategy. 
 
○ The Breakout Trading Strategy​: This strategy usually involves 
waiting for price to break out of a particular area and riding the 
trade in that direction. This is a great strategy for those who don’t 
mind volatility (lots of movement and higher risk). ​See video​. 
○ The Break and Retest​: This strategy involves waiting for price to 
break out of one particular area and then r​ etesting it.​ You would 
look to enter at the retest of the broken area. S
​ ee video​. 
○ Fundamental Strategy​: this type of strategy involves a vast 
understanding of news and economical influences. Please note 

 
 
 7 
 
that this guide is going to be focused on technical analysis and not 
fundamental. ​See video​.  
○ Major Reversal Strategy: t​ his strategy is best used on the daily 
time frame or higher. It involves waiting for price to test a key 
level and then reversing. S
​ ee video​. 
○ Scalping Strategies​: scalping involves a very short term trade, 
usually just aiming to take a few pips from the market. ​See video​. 
○ Trend Strategies: ​involve the use of trend lines, and entering 
trades based on when these areas are broken or tested. ​See video​. 
○ Buy & Hold Strategies: ​are pretty self explanatory. These strategies 
involve entering a currency pair you believe will remain bullish 
long term and holding for an extended period of time. ​See video​. 

● What time of day should we trade? 

○ There are specific times of day where the market will be more 
active. This is because big institutions are open during these 
“sessions” and thus it makes it easier to spot trends, breakouts, 
etc. 
○ They are broken down into four main sessions 
○ LONDON SESSION​: 8 AM - 4PM GMT 
○ TOKYO​ : 12AM - 9AM GMT 
○ SYDNEY:​ 8PM - 5AM 
○ NEW YORK​: 1Pm - 10PM GMT 
 
● What are indicators? 
○ Indicators are tools used to help us forecast price changes 
○ There are hundreds if not thousands of indicators available, and 
obviously this guide will not be going over each and every one 
○ We will discuss the indicators I find most important throughout 
this guide 
 
 
 
● Important tradingview tools 

 
 
 8 
 
○ I am going to create and attach a quick video on the most 
important tradingview tools that you should know. You can find it 
here​ :) 
 
● I am going to keep this guide technically based. Meaning I won’t be 
getting into the specifics on the background of forex trading, w
​ hy​ we 
trade, etc etc. Those just aren’t things you need to know to get started 
and I’m not into wasting your time or mine. I w
​ ill​ however recommend a 
few books and articles for those who do want to know those particulars 
○ History of trading 
○ History & Economics 
 
● Types of charts. There are different types of charts you can use to 
analyze currency pairs. For the purpose of this study guide we will be 
looking at the candlesticks using tradingview. You can also use MT4 if 
you prefer 
 
● BUYERS AND SELLERS 
○ When we are on an uptrend, we say BUYERS are in control. This is 
because traders who are BUYING are causing price to move UP by 
increasing the value of the pair 
○ When price is moving up it is considered to be​ bullish 
○ The opposite is true for SELLERS being in control 
○ When sellers are in control and price is moving down, it is 
considered ​bearish 

Candlesticks 
● FIRST! What is technical analysis?? 
○ Technical analysis is the way in which we study price movement  
○ It involves understanding the movements and patterns made by a 
currency pair, and utilizing that to anticipate future movement 

 
 
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● In order to become a professional trader, you will need to become fluent 

in price action (the movement price makes on a chart). An important 
component of price action is understanding the many different 
candlesticks that appear as price moves 
○ Candlesticks are a type of chart that display the open, close and 
movement of price during a specific period of time 
 
 

 
 
 

○ You can change your candlestick to display different time periods. 

For example the 15 minute, hourly, daily or weekly time periods 
 
● Remember! This is a GUIDE. So you’re about to do some work. I am going 
to list each candle I want you to study. As I list the candles and 
candlestick patterns, you should punch them into Google and look at 
additional visual examples. Make cue cards up if you need to!  
 
 

 
 
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○ DOJI CANDLE (long legged, dragonfly, gravestone) 
○ PIN  
○ HAMMER 
○ STAR (morning, evening, shooting) 
○ ENGULFING 
○ TWEEZERS 
○ SPINNING TOPS 
○ BLACK CROWS 
○ 3 INSIDE 
○ 3 WHITE SOLDIERS 

  

● Now that you know the patterns you would be wise to go back on 
tradingview and find examples of each type of pattern. Look at them on 
each time frame. Circle and label them 
 
● A general rule of thumb when it comes to candlestick analysis? 
○ The longer the wick, the more indecision 

 
 
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○ When you see indecision forming it is a sign of a ​reversal 
○ Reversals must be C
​ ONFIRMED​ (will touch more on this later) 
○ The higher the time frame the more accurate this statement. A 
long wick on the daily is much more telling than a long wick on the 
15M time frame 
 
● Armed with this new information- go through your charts and circle all 
of the long wicks you see on the four hour time frame. What do you 
notice? Write notes in your tradingview 
  
● NEVER RELY ON CANDLES ALONE!  
○ Although important, there are many other factors we must 
consider before entering a trade 

Chart Patterns 
● Chart patterns are another crucial piece of technical analysis. Chart 
patterns show us the journey of price over time. They also give us 
indications on what price may do next 
 
● IMPORTANT!! As with candlesticks, we never rely on chart patterns to 
trade. We simply take the information they give us and use it to eye 
setups 
 
● Please also note that chart patterns are subjective. You may see a pattern 
that another trader does not see. This is okay, because we never trade 
based on these patterns alone. Do not overthink your analysis. Go with 
what YOU see 
  
● Here are the chart patterns you need to know 
○ Double Top. Live example from me h
​ ere​. 
○ Head and Shoulders.  
○ Rising Wedge 
○ Double Bottom 
○ Inverse Head and Shoulders 

 
 
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○ Falling Wedge 
○ Bullish Rectangle 
○ Bullish Pennant 
○ Rising Wedge 
○ Bearish Rectangle 
○ Bearish Pennant 
○ Ascending/Descending Triangle 
○ Symmetrical Triangle 
 

 
 
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● Again, you should now look up these different patterns on your chart. 
Find them, circle them, analyze them 
 
● TIP: If you are having difficulty with any particular pattern or patterns… 
try searching for them on Youtube. You will often find live examples and 
it will give you a better idea. Pinterest is another excellent resource for 
finding chart patterns. If you don’t have Pinterest and you’re a technical 
trader, you aren’t doing it right. Go download now and thank me later 

PRICE ACTION & Market Structure 

● So what is this price action business anyways? 
○ At any given time, price can move up down or sideways. There is 
really no telling which direction price will move. We can however 
use these movements and our knowledge of the market to our 
advantage 
 
● Support and Resistance 
○ We will get into specifics in the next section. What you need to 
know about support and resistance for now is that these are areas 
on the chart where price stops and turns around 
○ Please watch t​ his video​ for a quick breakdown 
 
● Consolidation 
○ These are areas where price shows indecision. Neither buyers or 
sellers are in control 
○ Basically, these are areas where price is “trapped” for a period of 
time 
○ Consolidation periods can last hours, days, or even weeks 
○ We should not trade within these areas, unless you are a scalper 
○ Consolidation looks like this on a chart 

 
 
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○ Credit for above image: forextips4u 

○ Here​ is a short video identifying consolidating periods 
○ Exercise: Go to tradingview and identify several areas of 
consolidation  
 
● Trends and Trend Lines 
○ When price is moving up, it creates what we call higher highs and 
higher lows. We call this an uptrend. It’s the opposite for a 
downtrend, except it forms lower high and lower lows 
○ Trends can be short term or long term. A trend forming on the 4H 
or less would be considered a short term trend. 4H or longer time 
frames show us longer term trends 
○ A trend can either be really strong (steep), healthy (medium) or 
weak. Generally speaking, it is best to trade a healthy trend  
○ It’s important you understand how to properly draw a trend line. 
This is something you will need to w
​ atch here  
○ Now, go to your tradingview and start practicing those trend lines 
 
● Trend Channels 
○ Channels are basically a zone for your trend line. Because price is 
so volatile, we want to encompass an area that your trend moves 
within 
○ They help us identify areas to buy or sell 

 
 
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○ The top of your channel often acts as a level of resistance, while 
the bottom can act as an area if support 
○ You could use these support and resistance lines as areas to enter a 
trade  

○  
○ Credit to: forexfunction.com for above image :) 
 
● Trend Reversals 
○ Eventually, price will stop moving in one particular direction and 
we will get what’s called a trend reversal. We can use our 
candlesticks, chart patterns and knowledge of market movement 
to help us predict a trend reversal. 
○ No one ever really knows when a trend reversal is coming! This is 
why waiting for continuation after a reversal is so important. This 
will make more sense to you later when we discuss in more detail.  
○ TIP: the trend will usually slow down before a reversal occurs. So a 
really strong trend that abruptly starts slowing could indicate an 
upcoming reversal. See photo below 

 
 
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● Impulse/Corrections 
○ Alright so, we won’t get into any elliott wave stuff just yet. BUT I 
would like to point out the importance of impulses and 
corrections. BASICALLY, impulses are just large price movements 
(trends). Corrective waves are smaller waves that occur within a 
trend (pullbacks) 

 
 
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○ If you search “impulse and correction waves” into google images 

you will find HUNDREDS of other examples 
○ The big thing you need to understand here is that if you have a big 
impulse… you’ll likely see a CORRECTION thereafter. This is just 
basic price action 
○ Look up the following terms and ensure you understand them. 
IMPULSE​, T
​ REND​, ​CORRECTIVE WAVE 
 
● Waves (Length and Steepness) 
○ The length of your trend wave is extremely important 
○ LONG trend waves (impulses) that have zero or little corrective 
movements are considered very strong trends. SHORT trend waves 
show that the trend is LOSING ITS STRENGTH 
○ Here is an example of a LONG trend wave vs a SHORT trend wave 

 
 
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○ At this point… y
​ ou should go find 3 examples like the ones above 
and save them. ​You can post them to our group if you have any 
questions about them 
○ The ​speed a
​ t which a trend forms is also something to note. A 
trend that forms extremely fast (over several minutes) is usually 
not sustainable. This type of trend is usually caused by news 
release. We also don’t want to trade a trend that is ​losing 
momentum (super slow).​ Slowing trends indicate that a reversal 
may be looming around the corner. We really need to find a happy 
medium and look at healthy trend 
 
● So what makes up a healthy trend? 
○ UPTREND​: Creates higher highs and higher lows 
○ DOWNTREND​: Creates lower highs and lower lows 
○ Forms over s​ everal days to weeks 
○ Creates an angle of around 2
​ 0-50 degrees​. Any less would be 
considered weak, any higher we would start to consider it to be 
moving too fast. You do not need to measure this. We can eyeball 
this 
○ Has areas of consolidation 
 
 
 

 
 
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● ORDER ABSORPTION 
○ Remember: we will go over more support and resistance in the 
next section 
○ Support and resistance levels do not get stronger over time! It’s 
actually the opposite 
○ Every time price reaches a support or resistance level, the number 
of buys and sellers in the market changes  
○ EXAMPLE: We are on an ​uptrend​ heading towards an area of 
resistance​. When we reach the area, price turns and quickly heads 
back down because t​ here are a bunch of sellers waiting at that area 
○ At the second touch, there are LESS sellers waiting. What do we see 
at the second touch? A less strong reversal 
○ Third touch, even less. And so on. Finally, there becomes a point 
where there are ​less sellers​ waiting than the amount of ​BUYERS 
and price pushes on through that area giving us a breakout 
○ EXERCISE: Go find an example of this happening on any chart. It 
will work on any time frame. 
○ We call this ​ORDER ABSORPTION​. ​Here​ is a video on that 
 
 
● Story telling  
○ Pay attention to the story the market is ​telling​ you 
○ What does it mean when we see a sudden spike up? We see it and 
we know it’s there. But do you think about why it occurred? 
○ There are some important points I would like to make in terms of 
storytelling in the market. They are as follows: 
○ Bearish​ candles tell us that sellers are in control  
○ Bullish​ candles indicate that buyers are in control 
○ Areas of c
​ onsolidation​ relay that neither buyers or sellers are 
actively taking control 
○ Rejection displayed at an area of support​: sellers are unable to 
remain in control or are having difficulty  
○ Rejection displayed at an area of resistance​: buyers are unable to 
remain in control or are having difficulty 

 
 
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○ Try and shift your mindset to making sense of the market in the 
simplest of terms 
 
 
● What time frame should I use to analyze market structure? 
○ I always like to begin my analysis on the higher time frames (for 
me, that is daily) 
○ You can analyze on whatever time frame you want as long as it is 
relevant to your trading style. A scalper doesn’t necessarily need to 
look at the weekly time frame as it wouldn’t be relevant 
○ I am a swing/day trader and I use the DAILY, 4HOUR and 15M 

Support, Resistance, & ZONES 

● Again, support and resistance areas are basically just areas that price 
stops and then reverses 
 
● Zones, areas, support/resistance all mean the same thing 
○ Zones are just rectangles (so they encompass a larger space) 
○ Support and resistance are generally lines, but the term is broad 
○ Some people refer to zones as levels or areas 

 
 

 
 
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● The reason? These areas have over time been areas that price reversed. 
Traders (both retail and large corps) are aware of this and thus set up 
trades at these levels. In essence, It’s a self fulfilling prophecy 
 
● Just because an area was respected as support or resistance in the past 
does not mean it will be respected again 
○ What does “respecting” a zone/area mean? It means that price has 
attempted to break that area and failed in the past 
 
● We simply monitor these areas, we do not trade based solely on them  
 
● How do we draw support and resistance on a chart? 
○ We start by drawing lines through the areas price turned around 
○ Your lines should include as many wicks as possible 
○ If you are not comfortable with this skill, there are numerous 
Youtube videos on drawing S&R lines 
○ You can find my method h
​ ere 
 
● So what are ZONES? 
○ Zones are areas of support and resistance 
○ These areas allow us more wiggle room, which in the currency 
markets is needed due to the high volatility 
○ Zones are generally more accurate than simple line placement in 
terms of entry 
○ I have a free course on zones, that you can find ​here 
 
● How do we draw zones? 
○ There are a few different methods for drawing zones 
○ You can find my whole course on zones here 
○ The simplest method on drawing zones​: draw a 
support/resistance line and then use the rectangle tool to 
encompass the line 
○ Click ​here​ for a quick tutorial on that 

 
 
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● What is a “key level” and how is it different from a support/resistance 
area? 
○ A key level is basically a support/resistance area that has been 
tested NUMEROUS times in the past  
○ A tip on finding key levels: if the level is respected on the four hour 
chart and the daily chart (and or in addition to other time frames), 
it is considered to be an important area 
○ Remember, many traders are looking to enter at these areas which 
is what makes them so significant  

MOVING AVERAGES 
 

● What is a simple moving average? 

○ A technical indicator that helps us determine if price will carry on 
or reverse 
○ It’s calculated as an average of the closing price of a 
currency/commodity over a period of time 
○ It allows us to see a trend more clearly, without all of the volatility 
that a standard chart displays 
○ The longer a moving average, the less volatile the trend 
○ It looks like this

 
 

 
 
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● What is an exponential moving average? 
○ It considers price action more closely than the simple moving 
average 
○ It is g
​ enerally more accurate ​because it uses more current price to 
calculate the average 
○ It looks exactly like a moving average when placed on the chart 
 
● Find and setup the moving average on tradingview: 
○ You can find both moving average indicators by searching them up 
in the tradingview “indicator” section 
○ Once plotted on the chart, click the settings button to change the 
colour and length (measured in days) 
○ Here​ is my video on moving averages 
 
● How do we use the simple moving average (SMA)? 
○ Use the SMA to help you analyze trends 
○ The closer the lines are together, the weaker the trend 
○ When the lines cross completely, it indicates a reversal (likely)  
○ I like to use the 9 and 21 or 50 and 200 day SMA. These SMA’s are 
closely followed by other traders which again… self fulfilling 
prophecy. You can use whatever day you want to use, but 
technically speaking these tend to be the most accurate 
○ When price is above the line, we are in an U
​ PTREND 
○ When price is below the line, we are in a ​DOWNTREND 
 
 
● Plotting two lines 
○ Moving averages lag behind current price action because they are 
based on past data 
○ The longer the time period, the greater the lag  

 
 
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○ We should be placing a smaller and larger moving average 

○ The shorter the time span of your moving average the more 
sensitive it is (ie a 9 day would be more sensitive than a 200 day) 
 
● How do we use the EMA? 
○ EMA’s pick up short term volatility and quicker moves. If you trade 
short term (scalp/day trade) you’ll want to use the EMA vs SMA  
○ The two best EMA’s to use in your technical analysis are the 9 and 
21 day moving averages 
○ You can find them by searching through the indicators. I will link a 
video h
​ ere​ on where to find them 
○ Once plotted, click the settings and where it says “length” you can 
put the 9 and 21 
○ The 21 day EMA should always be on the outside. If it isn’t, your 
trend may be losing strength or not valid 
○ When the two lines cross, we can consider this an area for entry 
 
 
 
 

 
 
 25 
 

● Practice plotting your EMA’s before moving on to the next section. 

Analyze how price reacts at these areas 
● Here​ is a great article on moving averages. I would print this out or save 
it to read later 

Momentum Indicators 
● A type of oscillator  
○ What the heck is an oscillator? 
○ It’s basically just an instrument used for measurement 
 
● Momentum indicators h
​ ow rapidly​ price is moving in a particular 
direction 
○ In other words, it tells us if momentum is increasing or decreasing 
Remember, momentum indicates trend strength. When a trend 
begins “slowing down” it is a good sign that a reversal could occur 
soon 
○ Always use momentum indicators along with other confirmation 
 
 
● What is divergence? 
○ Momentum indicators (MI) will move in one direction or another. 
IE they are either informing us that price is going up or down 
overall 
○ When we plot our indicator and price action (what price is 
currently doing on the chart) does not line up with the MI’s 
movements, we consider this to be ​divergence 
○ EXAMPLE BECAUSE I KNOW YOU’RE CONFUSED ... 
○ The MACD is a momentum indicator. We will get into specifics 
later on. For now, just know that it uses a histogram on the bottom 
to indicate a currencies momentum 

 
 
 26 
 
○ Let’s say we plot our MACD on tradingview. Our little histogram on 
the bottom (see below) is t​ rending down.​ P
​ RICE​ however is 
actually going u
​ p​. THIS IS D
​ IVERGENCE 

● Types of divergence 
○ Regular divergence. If price is going down (ie making lower lows) 
and your oscillator begins making higher lows (ie it shows 
UPWARD momentum)… this would be considered​ regular bullish 
divergence. They signify a trend reversal 
○ Don’t make this more complicated than it is. Think of it this way. 
Price is going down. Your momentum indicator is showing an 
UPTREND. We have REGULAR DIVERGENCE 
○ Bearish regular divergence is just the opposite of bullish 

 
 
 27 
 
○ Note that with regular divergence, it is the indicator that begins 
moving in the opposite direction 
 
○ What is hidden divergence? 
○ Hidden divergence ​is very similar to regular divergence. The 
difference is that instead of the oscillator beginning to move in the 
opposite direction, it is price action that does so! 
○ Example. Your oscillator and price are moving in the same 
direction DOWN indicating a downtrend. All of a sudden PRICE 
shoots up! This does NOT indicate a reversal like regular 
divergence 
○ HIDDEN DIVERGENCE indicates a continuation of trend. 
○ Here​ is an awesome video on divergence to help you understand :) 
 
● Stochastic oscillator 
○ Used to determine momentum 
○ It does not always track price movement. Ie if the price goes up or 
down, the indicator might not display this right away 
○ It compares the currencies price, to the ​RANGE​ of the price over a 
period of time. (You don’t need to know this - just adding this 
detail for those curious on HOW it works) 
○ For more of the dry stuff I will attach an article ​here​ you can read 
on when the indicator was developed, the math behind it, etc. 
Those things aren’t important for our purposes here. 
○ Here is what the stochastic looks like when plotted on your chart 

 
 
 28 
 

○ At this time, you should go to your indicators and plot this yourself 
to get a feel for it 
○ Do you see the two moving averages on the bottom? Well when 
those are above 80, it is commonly assumed to be​ overbought 
Meaning a reversal is possibly coming. When it is under 20, some 
traders believe this means it is o
​ versold​ and a spike up is coming. 
○ You do not need to change the settings. Leave as is  
○ My two cents? Don’t rely on this. There are many times when the 
EMA’s are above 80 and do NOT reverse. Think about it… the 
momentum is HIGH when above 80. Meaning the pair is trending 
STRONGLY. ​THE TREND IS YOUR FRIEND 
○ So how the heck do I use it? Well young grasshopper, this is where 
price action will be your saviour 
○ ALWAYS​ use stochastics in conjunction with your main trading 
strategy 
 
● Example: I trade zone to zone. Let’s say using my method (to be 
discussed later) I see a SELL setup. I check off all of the things I need to 
see to take the trade. But, I want more confirmation. I plot the stochastic. 
When I see that the EMA’s on the indicator are above 80, I’m aware this 
could mean price is overbought 
 

 
 
 29 
 
  
 
○ This ​CONFIRMS t​ hat I have a good sell opportunity. NOTE: I 
ALREADY HAD THIS SETUP DETERMINED USING MY STRATEGY 
WHICH REVOLVES AROUND PRICE ACTION!  
 
● MACD 
○ The MACD indicator is an excellent way to measure momentum on 
the charts 
○ Here ​is where you find the MACD indicator and what it looks like 
○ As you can see, we have three lines and a histogram on the bottom 
of our chart. The histogram is just a fancy graph that measures 
momentum 
 
○ The LINES are basically just EMA’s. The following three lines are 
for your information only. You do not need to study this.  
○ The signal line is a 9 day EMA (A) 
○ The MACD line is a 12 day EMA (B)- a 26 day EMA 
○ The histogram is calculated by subtracting the signal line (A) from 
the MACD line (B). 
○ There is no need to change your settings on this indicator 
○ On the histogram you will notice two different tones of red and 
green. The lighter tone means descending the darker tone means 
ascending 

 
 
 30 
 

 
 
 

○ So how do I use it?  👀

○ Well, first things first, let's talk about those EMA’s. Nothing new 
here. When those moving average lines start moving further apart, 
it’s telling us that we have a S
​ TRONG​ trend with ​HIGH 
momentum. When they move together or ​CROSS​, it indicates a 
likely R
​ EVERSAL​ - or at the very least indecision. 
○ Now the histogram is where the real party is at. That bad boy is 
going to tell you what areas you need to watch close. It’s really the 
only part of the MACD I care about to be honest. So listen up 
 
 
○ First thing you need to do is have your support and resistance lines 
plotted. Now, when price moves towards the resistance area​ AND 
the histogram is indicating​ HIGH MOMENTUM ​(it’s above the zero 
line).. This is confirmation to take the trade. 

 
 
 31 
 
○ EXAMPLE: I draw my support and resistance lines as I normally 
would. Price is heading U
​ P towards my RESISTANCE​ line. When it 
gets to that resistance area, the histogram is showing L
​ ONG​ bars 
(see photo below for visual). This is confirmation to SELL. Why? 
Because the more momentum we get up to that point, the bigger 
the possibility of a reversal. Price will always need a break as 
buyers cannot hold control forever.  
○ Notice I said use as ​CONFIRMATION​. Would I enter a sell just 
because the histogram showed high momentum? HELL NO. Wait 
for your rejection candle and follow your strategy. Remember: we 
will get into specific strategies later so if you don’t have one don’t 
fret 
○ See video h
​ ere 
 
● RSI 
○ The relative strength indicator looks very similar to the stochastic 
previously discussed  
○ The difference here is that the stochastic indicator is concerned 
more with the ​TREND​ and closing prices  
○ Remember, we are still looking at momentum 
○ This indicator is really calculated based on price movements. It’s 
an average of the markets recent GAINS and LOSSES over a period 
of 14 days. You don’t need to know this, I’m just including it for 
your information 
○ When we plot the RSI, we want to look at areas ABOVE the 70 line 
and BELOW the 30 
○ Above the 70 indicates a ​reversal​ down COULD happen 
○ Below the 30 means​ reversal​ up COULD happen 
○ What do we do? Simply watch these areas and use this indicator as 
confirmation 
○ See video h
​ ere  
 
 
 

 
 
 32 
 
 
 
● Stochastic RSI  
○ I won’t make this any longer than it needs to be. This indicator is 
really just a combination of the stochastic and the RSI, 
○ In essence, the stochastic formula is applied to a set of RSI values 
to create a new indicator 
○ It really comes down to this: instead of using BASIC data to 
measure the momentum of price… the RSI data is used to include 
more specific information and thus (here's what you really need to 
know) it is more accurate 
○ If you’re going to use oscillators to confirm and you’re wondering 
which one to choose... use this one 
○ You might see the scale for this indicator numbered from 0-1 or 
0-100 (you’ll normally see 0-100 on tradingview).  
○ Just like the stochastic, a reading above 80 is overbought and 
under 20 is undersold (above .8 and below .2 for the 0-1 scale). 
○ A reading of zero on either scale would mean that the RSI is at its 
lowest level in 14 periods. In english you ask? It just means that 
price has not been this low in a while and thus the likelihood of 
reversal is strong 

The Elliott Wave 

 

● First, don’t let this section overwhelm you. I’m going to try my best and 
simplify the Elliott Wave for you as much as possible. We will use many 
graphics in this section to help guide us 
 
● Disclaimer: I am going to explain and break down everything you need to 
know about this theory to apply it to your charts and make money. Some 
analysts have over complicated and extended this theory way beyond 
what is needed. I will not be including sub rules, background, or any 
extensions on this theory. It is my belief that in order to trade 
successfully we need to pay attention to ONE thing: P
​ RICE ACTION​. I will 

 
 
 33 
 
show you how to do that using this theory and a variety of others, but I 
won’t be adding information that will confuse you and that is not 
relevant 
 
● What is the Elliott Wave anyway? 
○ It’s a theory based on market movement 
○ It implies that the market moves in specific WAVES. These waves 
are really just small movements up and down 
○ It applied to all time frames. You can find an elliot wave on the 
daily, 4 hour or 15 minute. These will obviously all be very different 
and you might even find waves W
​ ITHIN​ waves. You’ll see what I 
mean soon 
○ Basically the purpose of the theory is to help us predict when 
reversals are going to happen. Because price commonly moves in 
these wave patterns, it can be a bit easier to spot when a trend is 
completing 
○ Keep in mind this theory takes a lot of practice to get good at 
applying. Use it for confirmation to your other trading methods 
and practice practice practice! 
○ Post your Elliot waves in our group chat :) 
 
● The Elliot Wave is made up of two main waves. A ​corrective wave​ and a 
motive wave  

 
 
 34 
 

○  
 
 
● SEQUENCE ONE 
○ We call this sequence the ​MOTIVE WAVE 
○ The MOTIVE WAVE always moves in the direction of the overall 
trend 
○ Within this motive wave, there are 3 smaller motive waves and 2 
small CORRECTIONAL waves. Correctional waves go in the 
opposite direction of the overall trend 
○ We label the 3 small motive waves 1, 3, and 5. We label the 
correctional wave 2 and 4 
○ See video explanation here 
 
● SEQUENCE TWO 
○ CORRECTIVE WAVE 
○ Consists of three waves 
○ Remember, within the CORRECTIVE WAVE you can have smaller 
corrective waves. A corrective wave simply means that the wave is 
going in the opposite direction of the trend! 
○ As you can see here we have a small corrective wave, followed by a 
motive wave, and then another small corrective wave. 
 

 
 
 35 
 
● Now I really want to further simplify this, for those who might be getting 
caught up with the terminology. If the above terms confuse you… just 
look at it this way. You have W
​ AVE A​ and W
​ AVE B​. W
​ AVE A ​moves W
​ ITH 
the trend. W
​ AVE B​ moves a
​ gainst t​ he trend. WAVE A = contains five 
waves. WAVE B = contains three waves. Easy as PIE 

○
● Before we move on at all, I would like you to go to your chart and practice 
spotting these movements. ON ANY TIME FRAME! It doesn’t matter. 
Print off a chart and draw them in if you need to 
 
● Your Elliot Wave will NEVER be perfect. Don’t get hung up on where to 
place your waves. We will never enter a trade based solely off of this, so 
precision is not needed here. The more you practice the better your 
placement will become 
  
● You can post your Elliot Waves in the group and a team member will 
correct your waves if needed 
 

 
 
 36 
 
● ELLIOT WAVE RULES 
○ Rule number 1: Wave number 3 can never be the shortest impulse 
wave 
○ Rule number 2: Wave number 2 can NEVER go beyond the start of 
wave 1 
○ Rule number 3: Wave number 4 can NEVER cross in the same area 
as wave one 
○ See t​ his quick video​ explaining the rules 
 
● How to use the Elliott Wave 
○ I use the Elliott Wave to simply look for trends in the market 
○ As I trade using zones and key levels, I do not depict entry points 
using the Elliot Theory 

FIBONACCI 
● The Fibonacci retracement tool is my absolute favorite trading 
instrument of all time 
 
● It is considered a predictive indicator 
○ Please note that I do not use fibs to predict a trade, only to confirm 
an entry I could find using price action 
 
● It is basically an indicator that shows us key levels in a trending market 
○ In order to use the fib retracement tool, you will want to first 
ensure price is in fact t​ rending 
 
● How to use it 
○ You can find the Fibonacci retracement tool on your side bar in 
tradingview (in the section that looks like a pitchfork) 

 
 
 37 
 

○  

● Plot the tool using the swing high and swing lows of your trend 
○ During an uptrend: you want to plot your fib retracement starting 
with the bottom of the swing up and ending at the top 
○ During a downtrend: plot it by starting with the top of the swing 
down and ending at the bottom 
○ It is easiest to watch this quick video below to understand how to 
plot your fib 
○ Here ​is a video on how I use the Fibonacci tool 
 
● Once you’ve plotted your fib retracement tool, you’ll want to change the 
settings to look like this: 

 
 
 38 
 

○  
○ When price retraces to the 50 or 61.8 fib level, you can begin 
looking for rejection (long wick) and entry (use multiple 
confirmations) 

ABCD 
● I will not be including all harmonic patterns in this study guide as they 
are not something I use, or condone using 
 
● I have included the most common harmonic pattern (the ABCD) as it 
applies to other areas of the guide. This is the only harmonic I have ever 
utilized in my trading career 
 
 

 
 
 39 
 
 
 
● Below I have made a bullet, including the types of harmonic patterns. 
Should this be something you wish to seek out, you can look them up on 
your own terms and incorporate them 
 
● Harmonic patterns are Based off of f​ ib levels​. They are patterns that help 
us find continuation or reversals 
 
● Wait for the e
​ ntire pattern to complete​ before looking for entry 
 
● Types: ABCD, Three Drive, Gartley, CRAB, BAT, BUTTERFLY 
 
● ABCD Pattern 
○ Looks like this. See photo below. 

○
○ Essentially what the ABCD pattern entails is a move upward or 
downward in four waves. We label them ABCD 
○ Example of how to use: on an ​uptrend​... We plot our fib tool on AB 
(the first move up), from the lowest point to the highest 
○ Remember, a fib tool tells us where our R
​ ETRACEMENT ​is going to 
happen 

 
 
 40 
 
○ LINE BC should reach at MINIMUM the .50 on the fib. .68 is best. If 
it does you can move on with the next part 
○ Once the BC move down is f​ inished,​ use your fib again to mark the 
BC move (plot your dots on the highest then the lowest point) 
○ Your next move should reach the 1.272 on the fib created from BC. 
○ If it does, (and the move if finished) you can look for a sell 
○ Rules: The length of line AB should be equal to the length of the 
line CD 
○ The time it takes for the price to go from A to B should be equal to 
the time it takes for the price to move from C to D 
○ Here ​is a great video on the ABCD pattern and how you can 
incorporate it  

USING INDICATORS 
● The main indicators I use day to day are the fib retracement, MACD, and 
EMA’s 
 
● We have already gone over most specific indicators that I use. In this 
section I want to discuss the best way to use any indicator 
 
● Indicators DO have a purpose in trading. That purpose is never to plot 
trades FOR you though. Indicators should only ever be used to help you 
find trends, spot reversals, and mainly to CONFIRM what price action is 
already telling you 
 
● How to use indicators day to day 
○ First, use price action and determine your overall trend 
○ Next, you can plot your indicators to help you determine 
momentum, trend and or entry points 
○ IF your indicator and price action are both confirming the same 
entry point, you can take the trade 
○ IF your indicator alone confirms entry but price action does not… 
NO TRADE 
 

 
 
 41 
 

How to Trade News 

● Every morning, as part of your trading plan you should be looking at 
upcoming news 
 
● Another idea is to have the news already plotted out on a calendar in 
advance  
 
● Here are the best websites to follow news. You will want to find the 
“news calendar” section on each 
 
● When you open a news calendar it will generally tell you if the news will 
be high impact or not 
 
● Generally speaking, if you want to trade high impact news… you will 
want to enter short term trades. The moves that happen in the market 
after high impact news are quick and often followed by steep 
retracements 
 
● How to actually find ENTRIES with news 
○ Look for an area of consolidation leading up to news. If the pair is 
already actively TRENDING, do not enter 
○ Mark the area of consolidation with a rectangle (zone) 
○ Watch the pair CLOSELY during news release. When price breaks 
out of the zone, scalp on the 1 min time frame​ in the direction of 
the breakout 
○ Trail your stop loss after each candle close 
○ Eventually you should get stopped out into profit 
○ You will not usually make HUGE profits this way, but it is an 
excellent scalping method when used effectively 
 
 
 

 
 
 42 
 
 
 
○ Please note. This CAN work on the higher time frames with MAJOR 
news release if used alongside other methods. IE. Let’s say you are 
trending up on the higher time frame and NFP news is being 
released soon. IF you have a consolidation period before NFP 
release, you can use that news release to give you a good start on 
your entry 
○ USD news release tends to have the biggest impact on pairs 

● What time are news release made (usually) all are in EST? 
○ The USD: 0830 to 10 am  
○ JPY: 6:50 to 1130 pm 
○ CAD: 7-0830 am 
○ GBP 2-430 pm 
○ EUR 2-6 am 
○ CHF 1:35 tp 530 am 
○ NZD 445 to 9 pm 
○ AUD 530 to 730 pm 

● Key News Releases 

○ Interest rate decision 
○ Retail sales 
○ Inflation 
○ Unemployment  
○ Industrial production 
○ Business sentiment surveys 
○ Consumer confidence surveys 
○ Trade balance 
○ Manufacturing sector surveys 
○ NFP 
○ You should all at this point find the  
 

 
 
 43 
 
● Pairs to trade during news 
○ You want to trade pairs that are liquid 
○ Because spreads widen during news release, we want to trade the 
pairs with the lowest spreads 
○ Most USD pairs are great to trade during news release 
 
● How long do news effects last? 
○ Generally speaking, I advise waiting an hour after news release to 
begin looking at new opportunities 
 
● How to understand fundamentals: 
○ Again, I am not a fundamental trader. However, I will give you a 
general rundown on fundamentals that you can use going forward 
○ Basically we are looking at each country’s economic situation 
○ To trade using fundamentals, you will need to understand why 
each event affects a country’s economy and currency 
○ The idea here being that if the economy is good the currency 
should then go up and vice versa 
○ Here​ is a great video on fundamental trading  
 
● Things to note about trading news 
○ Spreads widen. This is due to the high volatility that occurs during 
news release 
○ Slippage. Slippage is more prevalent during news release, again 
due to high volatility. Slippage is when your order is filled at a 
different place than you actually entered 
○ The markets often don’t move steadily in one direction for long. 
We’ll usually see a strong push followed by a significant pullback 

 
 
 

 
 
 44 
 

Psychology  
● Did you know that over 80% of traders are not profitable? 
○ The reason isn’t because trading is unachievable. Retail traders 
make money consistently all the time. The issue is that many 
traders fail to master the emotional aspect of trading 
 
● LEARN TO LOSE 
○ This is the ​absolute​ most important concept you will master. You 
need to learn to view your losing trades as absolutely normal. You 
are G
​ OING​ to lose trades. There is not one professional trader in 
this entire world who does not lose 
○ How can you reroute your brain to begin viewing losses as normal? 
○ First of all, stop “aiming” for pips. There is no way for you to know 
which way the market will move from day to day, so how would 
you then be able to predict how many pips you will make? It’s 
impossible. Stop doing this. 
○ Start looking at m
​ onthly​ returns 
○ Stop looking at your losses as “money lost”. This is not the case. 
You will not know whether or not you are at a loss or gain until the 
end of each month. This is just the nature of currency trading. 
Some weeks will be profitable and others will not. Over time (if you 
follow you training plan) this will even out and you will be 
profitable 
○ You only need to be accurate ​50% of the time​ to be profitable 
 
● Revenge Trading 
○ Many of us have at some point been guilty of revenge trading  
○ This is when we lose a trade and then immediately enter another to 
“make profits back” 
○ It is imperative that you avoid doing this. Make it a rule to never 
trade if you are feeling any emotion towards that trade or any 
previous trades 

 
 
 45 
 
○ It will help to ask yourself a list of questions (see below) before 
entering any position. At least as a beginner 
 
● Questions to Ask Yourself Before Trading 
○ Does this trade fit my trading plan? 
○ Am I feeling emotional today towards the markets? 
○ Am I entering this trade because I want to make “fast money”? 
○ Am I using risk management? 
 
● When NOT to Trade 
○ When you’re emotional (in relation to anything) 
○ When you’re tired 
○ When you aren’t able to effectively analyze the markets 
 
● How to Overcome FEAR 
○ Fear of losing: This is a common and understandable fear. Once 
you realize that it’s okay to lose (see section 1), you will no longer 
need to linger over each trade monitoring the markets 
○ Start small. ALWAYS trade with money you can afford to lose. This 
way, your fear is naturally diminished 
○ Start using real money as soon as possible. In order for you to stop 
fearing real loss, you’ll need to experience it. Once you’ve studied 
and practiced on a demo account, start trading with real money as 
soon as possible. Many traders will get stuck on demo and get 
comfortable. The issue here is that when you know the money is 
not real, you have no attachment to it. It’s important to practice 
mastering emotions early on 

Risk Management 
 

● Creating a trading plan 

○ A trading plan is basically a set list of rules you will follow day to 
day as a trader 
○ It should include your trading pairs, your total risk, and your goals 

 
 
 46 
 
○ Your trading plan can be a PDF doc, handwritten, whatever! 
Doesn’t matter 
○ Some people just keep it on the “notes” section of their phone 
○ Here is a template below that you can use going forward :) 
 
● Risk % 
○ Before taking one single trade… you should have a defined risk that 
you are willing to take  
○ This risk will be different for every trader, but it’s essential that 
you have one 
○ Most traders use a 3-5% rule. This means they are willing to risk 
3-5% of their account balance 
○ Some traders risk % per trade, some will risk a % overall. Example: 
I am only willing to risk 3% of my account at any one time. If I 
enter 3 trades, I will only risk 1% per trade 
○ Note: If you risk more than 5% at any one time this is considered 
high risk. The higher the risk, the less likely you are to remain 
profitable. I do not recommend risking more than 5% 
○  
 
● How to calculate risk: 
○ You’ll need to first determine the risk you want to take. Let’s say 
you choose 3% 
○ Next, determine what 3% of your account balance is. Reminder: we 
want to look at what is in your account ​RIGHT​ now, not what you 
initially invested. If you invested $100 but have grown the account 
to $130, use the 130 
○ Let’s use the $100 example. 3% of $100 is $3. You are thus willing 
to risk $3 
○ Now, are you willing to risk $3 per trade or overall? Figure out 
what you are willing to potentially lose (because that’s the name of 
the game) and then move on to the next step...  
 
 

 
 
 47 
 
 
 
● How to choose a lot size 
○ Once you have the dollar amount you are willing to lose we can 
determine your lot size 
○ First, you’ll want to determine how many pips your stop loss is 
from your entry point. If you don’t know how to do this, ​please see 
the section on counting pips 
○ Here’s the easy part. Enter the pip amount into a calculator like the 
one below. You can find it on forextime.com OR the app STINU (put 
picture below) which can be downloaded via the app store 
 
● Risk/Reward Ratio 
○ What is a risk reward? A risk reward ratio is essentially the amount 
you are willing to lose relative to what you could gain from any one 
trade. See photo 
○ What risk/reward ratio should you use? 
○ You should never under any circumstances use a risk reward ratio 
lower than 1:1 
○ I aim to always have a 1:5 RR ratio, as a rule of thumb 
○ If you are a scalper, you may use a lower ratio as you want to be in 
and out of the markets quickly  
 
● Risk Management While Scalping 
○ When scalping, you will not always be able to set a stop loss 
○ This is because many brokers will not allow a stop loss to be 
extremely close to the entry point 
○ You will need to monitor you trade actively while scalping if this is 
the case 
○ Know where your stop loss will be and do not under any 
circumstances fail to exit at your determined stop 
○ You will need to be extremely well disciplined to do this 

 
 
 48 
 

Time Frames 
● When analyzing any currency, you will need to monitor multiple time 
frames 
 
● The specific time frames you work with daily will largely depend on the 
type of trader you are 
 
● In general, the higher the time frame the more accurate your analysis 
will be 
○ The higher time frames have less price action displayed (less 
candles) and thus we do not see as much “noise”. Big corporations 
also monitor the higher time frames actively, making the support 
and resistance levels very important 
 
● Day trading 
○ Most day traders will use the daily and four hour time frames to 
analyze overall trend. For marking up and spotting entries, the 
four hour and fifteen minute charts will work well 
○ Before entering a trade it is always a smart idea to switch to a 
lower time frame (ie the 15m) to analyze current price action and 
momentum 
 
● Swing trading 
○ Similar to the above, we will usually use the daily and four hour 
charts Sometimes it may be necessary to view the higher time 
frames (monthly, weekly) to spot key levels 
○ Again, we’ll want to switch to the lower time frame to analyze our 
entry 
 
 
 
 

 
 
 49 
 
 
 
● Long Term 
○ Long term traders do not normally analyze the lower time frames 
(anything smaller than the daily) 
○ They may switch to the hourly time frames when spotting entry 
○ Generally, they will look at the daily, weekly and monthly time 
frames 
● Scalping 
○ Scalpers are concerned with the most up to date price action. They 
want to look at the minute, 3 min, and 5 minute charts 
○ Scalpers might view the 15minute or 4 hour charts to determine 
direction 

Confirmations 
● So what the heck is a confirmation anyway? We hear the term all the 
time but what the heck are we looking for? 
 
● Confirmation is actually viewed differently by different traders 
 
● I define confirmation as any indicator, movement or source that 
confirms the entry determined by your strategy 
 
● I need at least 3 confirmations in order to take a trade 
 
 
 
 
 
 
 
 
 

 
 
 50 
 
 
 
● Here are some possible confirmations 
○ Price action: This is the most important confirmation and one that 
I need to see before taking a trade. All this entails for me 
personally is my rejection candle and to see price moving (with 
strong momentum) in the direction you want it to go after hitting 
your reversal or breakout area 
○ Indicators: If you plot any of the indicators we have discussed and 
they align with your entry, you can use this as a confirmation.  
○ Fundamentals: Yes, I will use NEWS to confirm my entries! If news 
release sways price in the direction I anticipated I will use this as 
confirmation 
○ Divergence: You can also use divergence to confirm entry 
○ Remember to see the above section for examples on divergence 
 
● The more confirmation you have before taking a trade, the higher the 
probability 
 
● Remember we want to be taking high probability trades, but we also 
don’t want to wait for EVERY confirmation as you can miss some great 
opportunities doing this 
 
● Stick to a three confirmation rule and you’ll be all set! 

My Strategy (Zone to Zone) 

● We’ve briefly discussed trading strategies that you can implement to 
become profitable. Using the information in this guide, you can choose 
to utilize any strategy you’d like 
 
● In this section I will be discussing my strategy in detail, as obviously this 
is what’s worked for me :) 
 

 
 
 51 
 
 
 
● You can apply this strategy to any time frame, meaning you can scalp or 
trade long term with the same methods. I generally swing trade 
 
● The first thing I do when looking for an entry is to analyze the o
​ verall 
trend 
○ I start by using the daily time frame. I will then move to the 4 hour 
time frame to ensure we are still trending in the same direction, or 
if a recent reversal has occurred 
○ At this point in time I am also taking note of overall market 
structure and momentum 
 
● Next, I will mark my zones. Remember how to draw zones from above? If 
not you will need to brush up on those sections. 
○ I mark my zones on the 4 hour chart. I will then switch to the daily 
and look at the closest daily zone (I make sure these are coloured 
differently so I can spot them). 
○ Once we’ve plotted our zones, we have to wait for price to either 
break a zone or ​RETEST​ a zone. Here is the difference: 
○ On some currency pairs we want to take a trade once price breaks 
above or below a zone (in the direction of our trend). The best pairs 
to trade using this method are pairs like UJ, GJ, US30  
○ Other currency pairs will break and then R
​ ETEST​ a zone more 
often. These are my favorite pairs to trade. These include EURUSD, 
USDCAD, GOLD, EURJPY, NZDJPY, AUDJPY, USDCHF and more 
○ Make sure you look at your pairs and see how they have reacted to 
zones in the past to determine if the breakout or retest will work 
best 
 
 
 
 
 

 
 
 52 
 
 
 
● If price B
​ REAKS ​above a zone 
○ Using the lower time frame (15m or lower)... 
○ If price has a s​ trong momentum​ and is moving​ FAST​, I ensure that I 
use the 5m or 3m time frame as we will miss our move if we use the 
15m 
○ I will watch for a complete breakout. I need the candle to C
​ LOSE 
ABOVE​ the zone. The BODY needs to close above NOT the wick 
○ I want to enter the trade at the NEXT candles OPEN 
○ I will then ride to next zone 
○ Remember this has to be in the same direction we determined 
from step 1 
 
● If price R
​ ETESTS​ my zone 
○ What we are looking for here is a ​PULLBACK 
○ When price pulls B
​ ACK​ and retests our zone, we need to wait and 
see ​REJECTION 
○ Remember those rejection candles? We are essentially looking for 
aL
​ ONG​ wick 
○ We will ENTER when we see price start to move in our intended 
direction (confirmation) 
 
● Momentum 
○ When utilizing my strategy, I usually use the stochastic RSI to look 
at momentum 
○ I plot this indicator while looking at my overall trend 
○ Once I see if it is looking overbought or oversold I can use this to 
confirm entry later on 
 
 
 
 

 
 
 53 
 

Stacking Trades 
● What does it mean to stack trades? 
○ Stacking trades mean we are entering multiple SMALL positions vs 
one large position 
○ Remember to A
​ LWAYS​ use risk management. Your lot size will be 
predetermined by that 
○ For example, if we have determined we can use a 1.0 lot size… we 
can use 2 .5 lot sizes instead of just the one large position. We do 
not take any more risk, yet we have more entries  
○ You can split your lot size whichever way you prefer 
○ Example: Let’s say I have determined I can use a lot size of 2.0. I 
can choose to enter one 2.0 position, two 1.0 positions, or four 0.5 
positions 
 
● Why do we stack trades? 
○ The main reason is so we can c
​ ontrol our risk  
○ Instead of leaving your one position running until your target is 
reached, you can exit one or more of your positions once your risk 
reward is at 1:1 
○ This way, if the trade should turn around due to news or other 
random events… you will have secured ​PARTIAL​ profits and will 
not walk away empty handed 
 
 
 
 
 
 
 
 
 

 
 
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Stop Loss & Take Profit 

● The best way to determine a stop loss  
○ I always recommend placing a stop loss​ above or below the rejection 
candle​ (long wick) or ​breakout candle (​ long body) 
○ Obviously if you are entering a trade using the break and retest you 
would enter a few pips above/below the REJECTION candle 
○ If you’re entering a breakout trade you would place it above or 
below the breakout candle  
○ Remember to always use proper risk management 
○ NEVER​ trade without a stop loss  
○ Here​ is a quick video on how to determine stop loss 
 
● The best way to determine a target 
○ I recommend placing your target at the next zone  
○ If you do not use zones, simply place at the next support or 
resistance area 
○ If you look at the overall structure and it looks as though price will 
be going up or down for a ​significant amount of time (you have a key 
level at a far zone)​, you can place multiple targets. This means you 
can ride your trade to key levels further from your target 
○ A good way to determine if you should keep riding a trade is to 
monitor price action at each zone. If price rejects your zone and 
you see it automatically push away, you can take all profits. If price 
shows indecision or pushes through your zone, you can ride out 
○ Here​ is a quick video on determining take profits 
 
● Using fib levels to determine take profit 
○ If you are using the fib retracement tool to confirm and spot 
entries, it can also double as a tool to help you determine a target 
○ I like to take profit around the 0.00% level. I will attach a photo of 
what I mean below 
○ Remember to read the section on placing your fib tool :)  

 
 
 55 
 

○  
 
 
● Trailing your stop loss 
○ To reduce risk and secure profits, it can often be wise decision to 
“trail” your stop loss 
○ This means that once your trade has become profitable, you move 
your stop loss in the direction of your trade 
○ There are some guidelines to doing this. You don’t want to trail 
your stop loss too early (your trade does need room to breathe) 
○ I generally wait until I have moved to a new zone on the lower time 
frame (even fifteen minute) and am showing considerable 
momentum (I see long bodied candles forming) 
○ If you don’t like zones, wait until price has reached a new support 
or resistance level before moving your stop loss  
○ As the trade continues to move into profit, you can keep moving 
your stop loss up. I start by moving my stop loss to break even (my 
entry) and then securing profits along the way 
○ Keep moving your stop loss to a zone (or support/resistance) 
below price. Always give price some room to breathe 
○ Here​ is a quick video on trailing stop loss 

 
 
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Scaling In 
● To “scale” into a trade simply means you have a broad overview of the 
market and you wish to enter multiple positions 
 
● I believe this process is overcomplicated, so I am going to break it down 
in the simplest form for you guys 
 
● Scaling in really is best performed by starting on the HIGH time frames. 
I’m talking weekly and daily, if not higher 
 
● You want to have an extremely clear picture of the market, it’s key levels, 
trends, etc 
 
● Here is the process I use to “scale into” a trade 
○ I first determine my overall structure on the daily/weekly 
timeframe. Let’s say for example on the chart below I see an 
overall downtrend and several support and resistance levels 

 
 
 57 
 

● Now, in the example above, let’s say I enter a sell early on in the 
downtrend 
○ Using an overview of the market structure and previous levels, I’ve 
determined that I believe it will be trending down for a significant 
amount of time 
○ I can ride out one really BIG long trade, OR I can hold a small trade 
and enter separate trades at different levels 
○ Here’s an example of what I mean 

● This is actually a very difficult skill to acquire. It takes a LOT of practice 

and a vast understanding of market structure 
○ I recommend doing this once you are at a level that you’re already 
profitable  
○ This is a very simplified version of scaling in 
○ My style of trading is VERY simple and to the point 
● Here​ is a video on scaling in 
 

 
 
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Measuring Pips 
● There are two easy methods I use to measure pips!  
 
● The first is by using the crosshair tool on MT4 
○ You can drag the crosshair tool on MT4 (sorry, it’s only in web) 
from your entry to your stop or target and it will display a set of 
values 
○ The middle number is your pip count 

 
 
 
 
 
 
 

 
 
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● You can also use the date price and range tool on tradingview 
○ Simply draw a rectangle to encompass the area you want to count 
○ the number displayed at the end is your pip count 

● Here​ is a great article on pips and manually counting pips 

THE END! 
Thank you for reading my study guide! I hope you take what I’ve given you and flourish 
on your trading journey. 

I would LOVE to hear what you think of this guide, so please let me know how you found 
it :)