FOREX INSIGHTS

TABLE OF CONTENTS
The FPI lessons will have three major classes, which are;
1. Basic course
2. Enthusiast
3. Advanced

Each course has branches leading to the next.

1. Basic course
(i) Introduction to Forex
(ii) Currency pairs
(iii) Time Zones
(iv) Trade terminologies
• Market Structures
• Trending markets
• Ranging markets
• Consolidating / Choppy markets
(v) Forex brokers and types
(vi) Charts
• Pips
• Time frames
• Lot
• Entry
• Target
• Liquid
• Stop or Protective Stop
•Margin
Types of margin
• Used Margin
• Free Margin
• Margin Call
• Margin Level
• Equity
• Leverage
• Account types
(vii) Forms of trading
(viii) Trade psychology

2. Enthusiasts
(i) Introduction to meta trader 4/5 interface
(ii) Introduction to support and resistance
(iii) Chart patterns
• W Formation
• Double/Triple top
• Double/Triple bottom
• Head and Shoulders
• Inverse Head and Shoulders
(iv) Indicators
• Stochastic
• MACD
• Relative strength index (RSI)
• Moving averages
(v) Candlestick analysis
(vi) Trade execution
• Limit orders
• Placing SL & TP
• Entry
(vii) How to open a real account

3. Advanced
(i) Kill zones
• Asian range
• London Open/ London kill zone
• New York Open/ New York kill zone
(ii) Application of support and resistance
(iii) Introduction to Fibonacci
• Fibonacci levels
• How to set the Fibo levels
• Application of the Fibonacci
(iv) understanding the market & what makes it move
(v) Triple screen trading
(vi) Understanding the macro
• Order Block (OB)
• Mitigation Block (MB)
• Liquidity Pools (LQP)
(vii) ICT power of three
• Accumulation
• Manipulation
• Distribution
(viii) Market Psychology
BASIC INSIGHTS/INTRODUCTION TO FOREX
1. What is Forex;
Forex is just a Short form for *FOREIGN EXCHANGE*
Forex is one of the Largest market in the world
With a Total Daily Liquidity of $7.3 Trillion dollars
The New York Stock Exchange which is the Second Largest
Market is having a Daily Trading Volume of $169 Billion
Dollars as we can see in the Statistics above
While the Cryptomarket, for those of us who know about
Bitcoins has a Total Market cap of just $197 Billion as of today,
this is not even the Daily Volume.
Example
If you've ever traveled to another country, you usually had to
find a currency exchange booth
at the airport, and then exchange the money you have in your
wallet (if you're a dude) or
purse (if you're a lady) or man purse (if you're a metrosexual)
into the currency of the country
you are visiting.
You go up to the counter and notice a screen displaying different
exchange rates for different
currencies. You find "Japanese yen" and think to yourself,
"WOW! My one dollar is worth
100 yen?! And I have ten dollars! I'm going to be rich!!!" (This
excitement is quickly killed
when you stop by a shop in the airport afterwards to buy a can of
soda and, all of a sudden,
half your money is gone.)
When you do this, you've essentially participated in the forex
market! You've exchanged one
currency for another. Or in forex trading terms, assuming you're
an American visiting Japan,
you've sold dollars and bought yen.
Before you fly back home, you stop by the currency exchange
booth to exchange the yen that
you miraculously have left over (Tokyo is expensive!) and
notice the exchange rates have
changed. It's these changes in the exchanges rates that allow you
to make money in the
foreign exchange market.

2. What is traded on Forex;

The simple answer is MONEY.
Because you're not buying anything physical, this kind of
trading can be confusing.
Think of buying a currency as buying a share in a particular
country, kinda like buying stocks
of a company. The price of the currency is a direct reflection of
what the market thinks about
the current and future health of the Japanese economy.
When you buy, say, the Japanese yen, you are basically buying a
"share" in the Japanese
economy. You are betting that the Japanese economy is doing
well, and will even get better as
time goes. Once you sell those "shares" back to the market,
hopefully, you will end up with a
profit.
In general, the exchange rate of a currency versus other
currencies is a reflection of the
condition of that country's economy, compared to other
countries' economies.

There’s a major prosperctive to what is trade on forex, and its

simply CURRENCIES.
The following can be traded on the forex market;
• Currencies
• Indices
• Fundamentals
• Indexes
• Cryptos
• Metals etc..
Let’s move over to he next topic….
 3. Currency Pairs;
The Major Currencies
Here is a list of some of the most actively traded currencies and
their currency
codes. Please note that this is a partial list, as there are many
currencies
traded in the world today:
EUR = euro
GBP = Great Britain pound
USD = U.S. dollar
JPY = Japanese yen
CHF = Swiss franc
CAD = Canadian dollar
AUD = Australian dollar
NZD = New Zealand dollar
Nicknames
Many of these currencies possess colorful nicknames. Traders
love to use
slang, so you need to know these nicknames in order to
understand what
they are saying. Here are some examples:
U.S. dollar “greenback” or “buck”
British pound “cable” or “sterling”
Euro “single currency”
Swiss franc “Swissy”
Canadian dollar “loonie”
Australian dollar “Aussie”
New Zealand dollar “kiwi”
The origins of these nicknames are an interesting topic of
discussion.
For example, the euro is called the single currency because it is
one currency
that is used by many countries. A “kiwi” is a flightless,
nocturnal bird,
and is also a national symbol of New Zealand.
Long ago, the Great Britain pound was considered the world’s
dominant
currency, and British pounds were frequently wired back and
forth
between North America and Europe via the transatlantic cable.
Many years
later, the nickname “cable” persists. The pound was originally
equal in value to one pound in weight of sterling silver, hence
the term “pound sterling”
or simply “sterling.”
“Loonie” is the unofficial but commonly used name for
Canada’s goldcolored,
bronze-plated, one-dollar coin. The nickname is derived from
the
picture of a loon, a distinctive bird, on one side of the coin.
Central Banks
Every country (or in the case of Europe, a group of countries)
has a corresponding
interest rate, and that rate is determined by a central bank. Forex
traders monitor interest rates carefully, because they have a
dramatic impact
on currency exchange rates.
European Union: European Central Bank (ECB)
United Kingdom: Bank of England (BoE)
United States: Federal Reserve (Fed)
Japan: Bank of Japan (BoJ)
Switzerland: Swiss National Bank (SNB)
Canada: Bank of Canada (BoC)
Australia: Reserve Bank of Australia (RBA)
New Zealand: Reserve Bank of New Zealand (RBNZ)
These central banks raise interest rates to fight inflation, and
lower
interest rates to stimulate growth. Their actions create
movements in exchange
rates that are instrumental in many forex trading strategies
Popular Currency Pairs
Here are some of the most popular currency pairs:
EUR/USD Euro–U.S. dollar
USD/JPY U.S. dollar–Japanese yen
GBP/USD Great Britain pound–U.S. dollar
USD/CHF U.S. dollar–Swiss franc
AUD/USD Australian dollar–U.S. dollar
USD/CAD U.S. dollar–Canadian dollar
NZD/USD New Zealand dollar–U.S. dollar
EUR/JPY Euro–Japanese yen
EUR/GBP Euro–Great Britain pound
GBP/CHF Great Britain pound–Swiss Franc
EUR/AUD Euro–Australian dollar
 Base currency strengthens in relation to the
counter currency
The first member of every currency pair is called the “base”
currency,
and the second member of each pair is known as the “quote” or
“counter”
currency. For example, in the case of the euro/U.S. dollar
currency pair
(EUR/USD), the euro is the base member of the pair, and the
U.S. dollar is
the counter member of the pair.
In order to prevent confusion, the currencies in the EUR/USD
pair
should always be presented in their correct order. You won’t see
this pair
represented as USD/EUR, unless you are trading currency
futures.
Who decides which currency is the base currency, and which is
the
counter or quote currency? That task falls to the International
Organization
for Standardization, or ISO. The ISO determines the currency
codes and the
order of the currencies within each pair.
Whenever a currency pair is rising on a chart, this means that the
base currency is strengthening versus the counter currency. This
is true for
every currency pair (see Figure above).
The opposite is also true—if the base currency is growing
weaker versus
the counter currency, the chart will show the exchange rate of
that
currency pair falling (see Figure below)
 Base currency weakens in relation to the counter
currency

We move over to the next topic on the Basic course

4. Time Zones;
We are entering into the most part of this Forex Training... If
you were distracted before, let's focus because your proper
understanding of the Forex market would be determined if you
actually know the Forex cycle.
There are Various Trading Times and Trading Sessions in Forex,
The Sessions names are derived from the major cities in which
most of the Transactions are done. For example
Sydney Session is represents Australia and other countries
around that Time zone
Tokyo session , sometimes called *ASIAN Session* represents
Japan and some of the Asian countries.London Session
represents The United Kingdom and the countries within it.
FRANKFURT session which is in Germany represents Europe.
While
NewYork Session represents The Americas
Forex is actually a 24 hours market.
It is most times regarded as the Market that never Sleeps
because it's open for 24 hours of the day except on Weekends
So no matter where you are around the World, no matter your
Time zone.... U can actually Trade this Large, Highly Liquid
market
Let's note these Times down in our Exercise as U all would be
needing them for your Trading.
Also Note that these Times are listed in *GMT*
Greenwich Meridian Time
So you should do the appropriate Calculation depending on your
countries Time zone, so as to know which session, U are
currently on
All Sessions lasts for 9 hours.
So having known their Opening Times, To get their appropriate
Closing Times.
Just Add 9 hours to the Opening Time to get when they would
Close
Example
Sydney Session that Opens by *9 PM GMT*
WOULD close by *6AM GMT*
also TOKYO Session that Opened by *11PM GMT*
WOULD close by *8AM GMT*
NEWYORK SESSION that Opened by *1 PM GMT*

WOULD CLOSE BY *10PM GMT*

AND SO ON FOR OTHERS..

just Add 9 hours to their Opening Times
Example by
*12 AM GMT*
Sydney Session and Tokyo Session would be open together and
it would have more Volatility than someone that is Trading at
*9PM GMT* because the market would be Quiet.
Another Example is by *8AM GMT*
London Session and Frankfurt Session would be open, infact
even Tokyo would be with them briefly, so you would notice
that Volatility would increase during such times.
So as a Forex Trader , Always time your Trading to fall in
periods where 2 or more Markets are open at the same time.
By doing that U would always have an edge in the market .

We would be learning more about Time Zones later in the

advanced class this is just a basic understanding of it
Let's fire on to the next topic

5. Trade Terms and Terminologies

Just Like every Field you try to learn, U would have to get
accustomed to its Terms and Terminologies
So also is the Field of Forex, U would need to learn about the
Terminologies so as to be able to communicate with the Market,
Analysts and also with your fellow Traders.
U may be among the gathering of Forex Traders but U won't
understand a dime of what they are saying, this is because U
don't know the terms.
So that is what we would be learning in this section
So as I was saying
For every New field you embark upon in Life, U would
encounter New Terminologies and terms which is peculiar to
such field. Be it Law, Medicine, Journalism , Engineering etc
And you would have to get yourself acquainted with their
Terminologies so as to be able to communicate properly

So also is Forex, for you to be able to Learn and Trade, U

should get to know some of the terms that is used in FOREX
Trading.
So that u can understand the News, Flow with your Fellow
Forex traders and understand Analysts
So let's get to it

TO GO *LONG*....means to BUY

TO GO *SHORT*...... means to SELL

If a Trader tells you that he went Long on a Currency pair. He

meant that, He Bought the pair.
While if they tell you that they Short a Currency pair, it means
that they Sold the pair

Soon you would get to see that All what we are doing in Forex is
Buying and Selling
The next terms we would see are

*BULLISH MARKET*.......
A market that is going Upwards

*BEARISH MARKET*...... A Market that is going

downwards.

When someone tells u that a currency pair or a commodity is

Bullish
It's telling you that its going Up While One that is Bearish is
going down

Let's be noting all these terms down in our Exercise books or

Jotters,
U all would be needing them as U we progress with the Training

*BULLS*..... The Buyers are referred to as Bulls

*BEARS*..... The Sellers are referred to as Bears

Let’s digress a little shall we;

MARKET STRUCTURES
This is the study of market behaviour, it is a critical skill that
will allow you to use the right price action strategies in the right
market condition.

There are three types of market structure;

• Trending
• Ranging
• Consolidating/choppy markets
*TRENDING*......
A Market that is has a direction.
In a lame man terms, It's either moving Upwards or downwards,
simple right?
In a traders term a Trending market is a market that has higher
highs and higher lows in an uptrend, and also has lower highs
and lower lows in a down trend.

We move to the next Type;…

RANGING…. In a lame man terms a Ranging market is a

market with no direction, makes any sense??
Now here’s a traders perspective on a Ranging market;
A Ranging market is a market that moves from Horizontal
support to horizontal resistance; i.e
It bounces from support to resistance and in some cases its
tradable
Example

The U.S. dollar/Japanese yen pair bounces between support

and resistance.

Resistance
Resistance is a point on the chart where the exchange rate has
shown a
tendency to stop rising. Like support, resistance is an area, not
an exact
price level. Think of resistance as the ceiling above you
Example

Support
Support is a point on the chart where the exchange rate has
shown a tendency
to stop falling. Support is not an exact price point, but an area.
Think
of support as the floor beneath you
Example

Consolidating/Choppy market…
A consolidation occurs when the exchange rate is trapped in an
ever narrowing area in this case it actually has no direction.
Consolidations often lead to breakouts
Breakout
A breakout occurs when the exchange rate breaks beneath
support or
above resistance
These are all under trade terms and terminologies, they seem
pretty interesting right don’t get carried away yet were still
on the basic course..
Lets move to the next topic on the basic course;
6. Forex Brokers and Types
To understand the importance of forex brokers, let me take
you back to a little history of Forex.
This was mainly for the “BIG BOYS” the financial institutions
and not even local banks, I mean Financial Institutions line; The
Central Bank of Ghana, Central Bank of Singapore, etc. these
are all central banks of countries and not just local banks, and
you will need large capitals to trade(millions of dollars). As time
moved on rich men and local banks also started to trading
though the capital requirement was still too much.
Only for the big boys (Men Of Wall Street). Then came
the invent of forex brokers, they revolutionized the forex world.
They made it possible for everyone no matter your country of
origin, background or financial status to trade this highly liquid
market.
So therefore, we define forex brokers as; Firms that
gives us access to the forex market.
They provide us with what they call leverage (simply means
with your little capital you can trade forex), because of retail
brokers you now not be extremely rich to trade forex, also
before the invent of retail brokers for you to place a forex order
the central bank has to place a call to the regulatory bodies
before you can transact. But with forex, you basically be on
your bad and place a forex order with your m4 or mt5. Internet
and technology has also made things a lot easier and people like
me and you can participate in forex because of brokers.
Currently as im talking today, before you can trade on the floor
of New York Stock Exchange, you must have fulfilled some
numerous criteria eg ;above the age of 21, annual salary of more
than $10,000, they capped their minimum investment to around
$25,000. Fedral records have some collaterals to surety etc. all
these are just to partake in trading on NYSE. That is why is it
only opened to some few elites.
We have different kinds of brokers; Examples are;
Deriv.com
Hugosway broker
Xm broker
Octa fx
Kot4x broker
Etc
There are so many brokers round the world for trading, we can
go on and on listing them all but its going to get boring at some
point. Were still going to talk about them in detail.
Now we move to our next topic;..
7. Charts;
What is a chart?
A Chart is like a map, the more each one provides the better the
chance of reaching to your destination safely. Candle charts
display a more accurate and detailed map of the market.
Example

This is a candlestick chart and it is the most widely used chart in

all financial markets.

• Lots
In the stock market, traders buy and sell shares. In the futures
market, traders buy and sell contracts. In the forex market,
traders buy and sell “lots.”
The smallest position that a trader can take in the forex market is
“one lot.” Each lot consists of 100,000 units of currency. So if
you are long one lot of the EUR/USD currency pair, in reality
you are long 100,000 units of the base currency and short
100,000 units of the counter or quote currency.
Therefore, a trader who is long one lot of the EUR/USD
currency pair is
actually long 100,000 euros, and simultaneously short an
equivalent amount
of U.S. dollars.
• Entry
The entry or entry point is the point at which a long or short
position is opened. This is where the trade begins.
• Target
A target is placed to exit a position if the exchange rate makes a
favorable move. It is also referred to as a “take-profit” order.
• Stop Or Protective Stop
A stop order is an order that is placed to exit a trade if the
exchange rate makes an unfavorable move. This is done to keep
losses minimal and under control.
• What is a Pip?
A pip is the smallest increment of price in the forex market. It is
an acronym for the phrase “percentage in point.” You might
recall that in an earlier example, the exchange rate for the U.S.
dollar/Canadian dollar currency pair was 1.10, and we expanded
that to 1.1000 for the sake of precise measurement.
The reason why this is a more precise representation is that it
allows us to show the smallest possible increment of change in
the exchange rate. For example, suppose the exchange rate rises
from 1.1000 to 1.1001. We could say that the exchange rate rose
by one pip—the smallest increment of change possible.
• Liquid
A liquid or “thick” market is a market in which selling and
buying can be accomplished with ease. This is because there are
more buyers and sellers in a liquid market like forex. A market
with few buyers and sellers is referred to as “illiquid.”
• Leverage
Leverage like I said earlier, is the ability to control a large
amount of capital with a comparatively small amount of capital.
For example, one lot of a currency pair has a value of 100,000
units of currency—100,000 euros or 100,000 U.S. dollars, and
so on. Do we actually need to possess 100,000 euros or 100,000
U.S. dollars in order to trade one lot of the EUR/USD currency
pair? No, we can control one lot with as little as 1/200th of that
amount. We could say that a person who controls one lot in this
fashion is using 200-to-1 leverage. The amount of leverage used
by traders varies based on their individual needs and their
“comfort zone”.
Things are really getting pretty interesting Huh lets move on
to our next topic
8. Margin
What is a margin;
A Margin is a small amount of capital required to open and
maintain a new position. It is a good faith deposit or collateral
that’s needed to open a position and keep it open until its closed.
Margin is not a fee or a transaction cost, it is simply a portion of
your funds that your broker sets aside from account balance to
keep your trade open and to ensure that you can cover the
potential loss of the trade.
The portion is locked up for the deviation of the specific
trade. Once the trade is closed the margin is released back into
your account.
Types of Margin
• used margin; this is the total amount of margin currently in
use to maintain all open positions. It is the sum of all
required margin being used.
• Free margin; this is the difference between equity and used
margin, it is the usable margin. Free margin can be thought
of as the amount available to open a new position. The
amount that existing positions can move against you before
you receive a margin call or stop out.
• Margin level; this is the ratio between equity and used
margin, it is expressed as a percentage.
• Margin call; this happens when the margin level has
reached a specific level or threshold. When the threshold is
reached, you are in danger of possibly having some or all
your positions forcibly closed or liquidated.
• Stop out level; this is when your margin level falls to a
specific percentage level in which one or all your positions
are closed automatically (LIQUIDATED) by your broker.
This happens because the trading account can no longer
support the open positions due to lack of margin.
How to avoid a margin call
• Know what a margin call is; understanding what margin
call is and how it works is the first step in knowing how to
avoid one.
• Know what margin requirements are even before placing an
order.
• Use a stop loss orders or trailing stops to avoid margin calls,
a stop loss order or a trailing stop order prevents you from
taking on farther losses, which helps prevent getting a
margin call.
• Scale in positions rather than entering all at once. To avoid a
margin call, one approach is to build up a trade position,
also known as “SCALING” instead if trading with four
mini lots right off the bot, start off with one mini lot, then
 add or scale the position as price moves in your favour,
while you continue to add new positions you can also start
moving the stop losses on the previous positions to reduce
potential losses or even lock in profits while trading risk
free when you continue all the positions.
• Know what you are doing as a trader; risk management
should be your main priority, not profits. Know when to cut
your losses so you can trade another day, pay attention to
currency pairs you are trading and their margin
requirements. Understand volatility and stay vigilant of
news events that could trigger price volatility spikes, that
could put your account at risk of a margin call.
Account Types
There are types of accounts on the forex market that helps
mitigates our risk according to or accont size and equity. They
are as follows;
• Micro = 0.01 lot per pip ( $50 - $100)
• Mini = 0.1 lot per pip ($1000 – $9000)
• Standard = 1.00 lot per pip ($10,000 - …)
As you all can see each lot sizes depends on account size,
anything traded above your account size is “OVER
LEVERAGING” in a lame mans term “GAMBLING” and this
is a bad trading pattern, never break your risk management rule
just to get more money on the forex market, there are so many
opportunities on the forex market so always be patient and
follow your risk management.

Were almost coming to an end to the basic course, I believe

everyone’s having fun and all excited, well, the excitement is
still up in front so hold your horses and prepare yourself for our
final topic on the basic course.
9. Forms of Trading
Note you need these terminologies for you to be able to
understand how analysis are made in the forex market, you
would tend to follow with the discussion and events even when
you see them on your TV or online. Before I started forex,
business or economic news on CNN were one of the most
boring things for me to watch. Because most times I won't even
understand the jargons that they are saying. But now, I don't
miss any of the major economics news because as you would
soon get to know. They are the factors that move the financial
market. So as you start interacting with traders, who previously
you may not understand what they are saying. Start listening
closely from today even on news The two basic forms of
analysis are the fundamental and technical analysis, As we go
higher, you may like to add what we call sentimental analysis.
But let's stick to the basic first. We will be going into the crust of
the matter from here. Like I said these foundation is the bed rock
of most things we do in forex.
We’ll be dealing with the most important forms of trading
which are;
Fundamental and Technical analysis.
• Fundamental Analysis

This refers to as trading with the news. It involves analyzing the

forex market using the important factors
stability of a country strength of the country's economy and
trade wars between countries, local violence within the country
and so on.
All these affect the economy value of the currency of a
particular country. Let's take for example, you hear that there is
cries in Libya, you would know definitely the value of Libya's
currency will decrease. Or like you saw the export value of
goods from china to other countries has increased, that means
Chinese yuan is doing well. So all these factors are all put into
consideration to help you analyze the forex market.
As a general basic rule in forex, you buy curreney that is
doing well and you sell the one that is weakening (not doing
well)
*This is just a basic rule.*
It is not just a straight buy or sell like you do in your local
market when you buy
groceries or stuffs like that. You will soon see what we mean by
buy and sell. But it is better you have this basic knowledge at the
back of your mind. That we buy a currency whose countries
economy is getting stronger and sell one that is weakening. So
you make this analysis of whether the economy of a country is
getting weaker or stronger using the fundamental analysis. You
put into consideration
things like, interest rate, export and import indices, retail sales,
consumer confidence in the countries market, is there political
cries or not any ongoing election in the country etc.
Please read closely we are trying not to rush it.
Now whether the News is Positive or Negative As a Forex
trader, that is none of your business because u make money both
ways. Those into Crypto Trading in the early days between 2017
to 2016 backwards would tell you that u only make money when
a Coin is appreciating. Though recently some crypto exchanges
are now improving But in Forex, we make Money Both ways. If
a Currency pair is appreciating, We go long on the pair When a
Currency is also depreciating based on the News, We go short
on the pair. Like many traders do everyday, They buy some and
sell some So In Forex, U make money on both sides of the
News We would come to see how to trade the News later
Today We would be discussing an Important News Released by
the United States. Even though there are News release everyday.
There is what we Forex Traders Call *KING OF ALL NEWS*
It's called the *NFP*
*NON FARM PAYROLL*
This is a News released by the United States of America.
Among all the news released by the US, this is the highest be
cause it causes the most Volatility in the market.
Non Farm Payroll is one of the Biggest News that every trader
awaits on
Let's start with understanding what NFP is; Let's talk about what
the News entails, It's a News that contains various data and
statistics released by the US Bureau of Labor and Statistics, It's
very influential as an indicator of US Economy because of the
US Federal Reserve makes monetary policy decisions based on
this data, Hence Investors, Financial Analysts, Forex traders,
Stock traders make trading decisions with the News.
It is released every 1st Friday of the Month by 8:30amEST
12:30pm GMT
12:30pm Ghana time
1:30pm Nigerian time
2:30pm South Africa time
Etc
Just Calculate according to your Time zone, We see all these
News on CNN, Bloomberg, CNBC etc.
Also Your MT4 App has a Summary of News Section, Also
some sites like forexfactory.com, dailyfx.com etc. these sites
Gives you summary of this News
The data released include;
• Non Farm Payroll increase;;This is the number of new jobs
added in the US labor sector in the previous month. These
data includes employment in the manufacturing sector,
Construction sector, Goods sector etc. Excluding Farm
workers (hence the name), Also excluding Private
Household employees and non profit organizations
NOTE: IT IS USUALLY COMPARED TO THE
PREVIOUS ONES
It also includes
• Unemployment rate of the US
• Which sectors of the economy, these jobs were added
mostly, It gives investors and traders where are the possible
sectors to invest in as the sector that added more jobs
would be most likely to have experienced growth
• It also includes the Average hourly earnings of the workers
 in the US. This is also an Economic indicator because even
if the number of workers didn't change. But however their
earnings increased... It would have the same effect as if
their number increased Same also could be interpreted in
reverse, if their earnings reduced
• Then lastly the data includes a revision of previous non farm
payroll Because investors compare these values together....
Whether there has been an improvement or reduction. This
also gives you an idea if the economy is growing or
reducing.
*INTERPRETATION OF NFP*
So when more jobs are added, it means that Business ventures
are growing and remember that these newly employed would be
paid....
Hence more people would have money to spend on goods and
services hence increasing the growth of the economy
However,,
When the number of jobs added are reduced. The reverse
occurs... People won't have money to spend on goods produced
and services... hence dwindling the economy.
Also the US govt has an amount of money paid to the
unemployed. When more jobs are added, more people would be
employed. This reduces the unemployment rate, as the
unemployed citizens reduce less money leaves the govts pocket,
hence boosting the economy. So this is just a Breakdown on
What NFP entails and why it's so Volatile. It's usually released
1st Friday of every month. So we would all be together and
Trade the Next NFP, because it's better seen than explained
NOTE;
Most people make what you would be paid in a year just on
an NFP afternoon
THATS HOW MASSIVE NFP NEWS ARE, IT CAUSES
LARGE VOLATILITY IN THE MARKET
Let's move on to the next form of Analysis
• Technical Analysis
This form of Trading is when you Analyze the Market using
Indicators, Charts Patterns , Candlesticks, Fibonacci, Support
and Resistance, etc.
When you use any of the above to analyze the market, It's called
Technical Analysis. Majority of what we listed on the Course
outline are Technical Analysis, It's the most popular Form of
Trading....
This is because High Volatile News is not released Everyday so
you can't just depend on Fundamental Analysis alone. Everyday
can't be Christmas
So as a Forex Trader, U must learn how to trade the market
using Technical Analysis.
So because everyday can't be Christmas , High Volatile News
like NFP is not going to be released everyday , so you have to
learn how to Analyze the market and Trade in the absence of
any major News release,
That's what makes you a complete Forex Trader
Among the 2 major Forms of Analysis,
No one is superior to each other and also no one is used in
Isolation. So you would learn as we move on, how to harmonize
the two to constantly keep you on top.

Congratulations folks you’ve now graduated from the

basic course, now we move to the next part of the course

ENTHUSIAST
Now folks this will be a practical section videos and zoom video
sessions will be conducted in this section just a few on this
section will be theoretical so sit back and enjoy the ride.
(i) Introduction to the Metatrader App
Now this is actually a practical section, videos has been
provided foe better understanding, so therefore we move to the
next topic.
(ii) Introduction to Support and Resistance; this is also a
video session as well, this is simply the repetition of your
basic knowledge on S&R but the deep introduction into
it so please sit back and relax..
Support and Resistance
Support and resistance is one of the most widely used concepts
in trading. Strangely enough,
everyone seems to have their own idea on how you should
measure support and resistance.
Let's take a look at the basics first.

Look at the diagram above. As you can see, this zigzag pattern is
making its way up (bull market). When the market moves up
and then pulls back, the highest point reached before it pulled
back is now resistance. As the market continues up again, the
lowest point reached before it started back is now
support. In this way resistance and support are continually
formed as the market oscillates over time. The reverse is true for
the downtrend.
Plotting Support and Resistance
One thing to remember is that support and resistance levels are
not exact numbers. Often times you will see a support or
resistance level that appears broken, but soon after find out that
the market was just testing it. With candlestick charts, these
"tests" of support and resistance are usually represented by the
candlestick shadows.

Notice how the shadows of the candles tested the 1.4700 support
level. At those times it seemed like the market was "breaking"
support. In hindsight we can see that the market was merely
testing that level.

So how do we truly know if support and resistance was broken?

There is no definite answer to this question. Some argue that a
support or resistance level is broken if the market can actually
close past that level. However, you will find that this is not
always the case.
Let's take our same example from above and see what
happened when the price actually
closed past the 1.4700 support level.
In this case, price had closed below the 1.4700 support level but
ended up rising back up above it.
If you had believed that this was a real breakout and sold this
pair, you would've been seriously hurtin'!
Looking at the chart now, you can visually see and come to the
conclusion that the support was not actually broken; it is still
very much intact and now even stronger. To help you filter out
these false breakouts, you should think of support and resistance
more of as "zones" rather than concrete numbers.
One way to help you find these zones is to plot support and
resistance on a line chart rather than a candlestick chart. The
reason is that line charts only show you the closing price while
candlesticks add the extreme highs and lows to the picture.
These highs and lows can be misleading because often times
they are just the "knee-jerk" reactions of the market. It's like
when someone is doing something really strange, but when
asked about it, he or she simply replies, "Sorry, it's just a reflex."
When plotting support and resistance, you don't want the
reflexes of the market. You only
want to plot its intentional movements. Looking at the line chart,
you want to plot your support and resistance lines around areas
where you can see the price forming several peaks or valleys.
Other interesting tidbits about support and resistance:
• When the price passes through resistance, that resistance
could potentially become support.
• The more often price tests a level of resistance or support
without breaking it, the stronger the area of resistance or
support is.
• When a support or resistance level breaks, the strength of
the follow-through move depends on how strongly the
broken support or resistance had been holding.

Having the understanding we move to the next topic;

(iii) Chart Patterns; This is another interesting part of your
learning guys so please pay serious attention, before we
go further you have to understand what the charts are
made of, and how they work, so lets go.
Types of Charts
Let's take a look at the three most popular types of charts:
1. Line chart
2. Bar chart
3. Candlestick chart
Now, we'll explain each of the charts, and let you know what
you should know about each of
them.
Line Charts
A simple line chart draws a line from one closing price to the
next closing price. When strung
together with a line, we can see the general price movement of a
currency pair over a period
of time.
Here is an example of a line chart for EUR/USD:

Bar Charts
A bar chart is a little more complex. It shows the opening and
closing prices, as well as the
highs and lows. The bottom of the vertical bar indicates the
lowest traded price for that time
period, while the top of the bar indicates the highest price paid.
The vertical bar itself indicates the currency pair's trading range
as a whole.
The horizontal hash on the left side of the bar is the opening
price, and the right-side
horizontal hash is the closing price.
Here is an example of a bar chart for EUR/USD:

Take note, throughout our lessons, you will see the word "bar" in
reference to a single piece
of data on a chart.
A bar is simply one segment of time, whether it is one day, one
week, or one hour. When you
see the word 'bar' going forward, be sure to understand what
time frame it is referencing.
Bar charts are also called "OHLC" charts, because they indicate
the Open, the High, the Low,
and the Close for that particular currency. Here's an example of a
price bar:

Open: The little horizontal line on the left is the opening price
High: The top of the vertical line defines the highest price of the
time period
Low: The bottom of the vertical line defines the lowest price of
the time period
Close: The little horizontal line on the right is the closing price

Candlesticks Charts
Candlestick chart show the same information as a bar chart, but
in a prettier, graphic format.
Candlestick bars still indicate the high-to-low range with a
vertical line.
However, in candlestick charting, the larger block (or body) in
the middle indicates the range
between the opening and closing prices. Traditionally, if the
block in the middle is filled or
colored in, then the currency closed lower than it opened.
In the following example, the 'filled color' is black. For our
'filled' blocks, the top of the block
is the opening price, and the bottom of the block is the closing
price. If the closing price is
higher than the opening price, then the block in the middle will
be "white" or hollow or
unfilled.
Here
Here is an example of a candlestick chart for EUR/USD

The purpose of candlestick charting is strictly to serve as a

visual aid, since the exact same
information appears on an OHLC bar chart. The advantages of
candlestick charting are:
• Candlesticks are easy to interpret, and are a good place for
beginners to start figuring out chart analysis.
• Candlesticks are easy to use! Your eyes adapt almost
immediately to the information in the bar notation. Plus,
research shows that visuals help in studying, it might help
with trading as well!
• Candlesticks and candlestick patterns have cool names such
as the shooting star, which helps you to remember what the
pattern means.
• Candlesticks are good at identifying marketing turning
points - reversals from an uptrend to a downtrend or a
downtrend to an uptrend. You will learn more about this
later.

Chart Patterns
By now you have an arsenal of weapons to use when you battle
the market. In this lesson, you will add yet another weapon:
CHART PATTERNS!
Think of chart patterns as a land mine detector because, once
you finish this lesson, you will be able to spot "explosions" on
the charts before they even happen, potentially making you a lot
of money in the process.
In this lesson, we will teach you basic chart patterns and
formations. When correctly identified, it usually leads to an
explosive breakout, so watch out!
Chart formations will greatly help us spot conditions where the
market is ready to break out.
They can also indicate whether the price will continue in its
current direction or reverse so we'll also be devising some nifty
trade strategies for these patterns. Don't worry, we'll give you a
neat little cheat sheet to help you remember all these cool
patterns and strategies!
Here's the list of patterns that we're going to cover;
• Double Top and Double Bottom
• Head and Shoulders and Inverse Head and Shoulders
Double Top
A double top is a reversal pattern that is formed after there is an
extended move up. The "tops" are peaks which are formed when
the price hits a certain level that can't be broken. After hitting
this level, the price will bounce off it slightly, but then return
back to test the level again. If the price bounces off of that level
again, then you have a DOUBLE top!
Example;

In the chart above you can see that two peaks or "tops" were
formed after a strong move up.
Notice how the second top was not able to break the high of the
first top. This is a strong sign that a reversal is going to occur
because it is telling us that the buying pressure is just about
finished.
With the double top, we would place our entry order below the
neckline because we are anticipating a reversal of the uptrend.

Looking at the chart you can see that the price breaks the
neckline and makes a nice move down. Remember that double
tops are a trend reversal formation so you'll want to look for
these after there is a strong uptrend. You'll also notice that the
drop is approximately the same height as the double top
formation. Keep that in mind because that'll be useful in setting
profit targets.
Double Bottom
The double bottom is also a trend reversal formation, but this
time we are looking to go long instead of short. These
formations occur after extended downtrends when two valleys or
"bottoms" have been formed.

You can see from the chart above that after the previous
downtrend, the price formed two valleys because it wasn't able
to go below a certain level. Notice how the second bottom
wasn't able to significantly break the first bottom. This is a sign
that the selling pressure is about finished, and that a reversal is
about to occur.

Will you look at that!

The price broke the neckline and made a nice move up. See how
the price jumped by almost the same height as that of the double
bottom formation? Remember, just like double tops, double
bottoms are also trend reversal formations. You'll want to look
for these after a strong downtrend.
Head and Shoulders
A head and shoulders pattern is also a trend reversal formation.
It is formed by a peak (shoulder), followed by a higher peak
(head), and then another lower peak (shoulder). A "neckline" is
drawn by connecting the lowest points of the two troughs. The
slope of this line can either be up or down. Typically, when the
slope is down, it produces a more reliable signal.

In this example, we can easily see the head and shoulders

pattern.
The head is the second peak and is the highest point in the
pattern. The two shoulders also form peaks but do not exceed
the height of the head. With this formation, we put an entry
order below the neckline. We can also calculate a target by
measuring the high point of the head to the neckline. This
distance is approximately how far the price will move after it
breaks the neckline.

You can see that once the price goes below the neckline it makes
a move that is at least the size of the distance between the head
and the neckline. We know you're thinking to yourself, "the
price kept moving even after it reached the target." And our
response is, "DON"T BE GREEDY!"
Inverse Head and Shoulders
The name speaks for itself. It is basically a head and shoulders
formation, except this time it's upside down. A valley is formed
(shoulder), followed by an even lower valley (head), and then
another higher valley (shoulder). These formations occur after
extended downward movements.

Here you can see that this is just like a head and shoulders
pattern, but it's flipped upside down. With this formation, we
would place a long entry order above the neckline. Our target is
calculated just like the head and shoulders pattern. Measure the
distance between the head and the neckline, and that is
approximately the distance that the price will move after it
breaks the neckline.
You can see that the price moved up nicely after it broke the
neckline.
If your target is hit, then be happy with your profits. However,
there are trade management techniques where you can lock in
some of your profits and still keep your trade open in case the
price continues to move your way. You will learn about those
later on in the course.