How To Go Clear With Forex Trading

LetsGoClear
THE FOREX TRADING
FORMULA
THE ULTIMATE BEGINNERS GUIDE TO FOREX TRADING
THE FOREX TRADING FORMULA
THE ULTIMATE BEGINERS GUIDE TO FOREX TRADING
LetsGoClear
Disclaimer
This book is for informational purposes only. The views expressed are
those of the author alone, and should not be taken as expert, legal, or
medical advice. The reader is responsible for his or her own actions.
Every attempt has been made to verify the accuracy of the information in
this publication. However, neither the author nor the publisher assumes
any responsibility for errors, omissions, or contrary interpretation of the
material contained herein.
Neither the author or the publisher assumes any responsibility or liability

whatsoever on the behalf of the reader or purchaser of this material
Copyright © 2022 by LetsGoClear All rights reserved. This book or any

portion thereof may not be reproduced or used in any manner
whatsoever without the express written permission of the publisher
except for the use of brief quotations in a book review.
PART 1:
THE
BASICS
OF
FOREX
Want to take your trading to the next level?
https://www.letsgoclear.com/ 1
INTRODUCTION
The forex market has become one of the most active and
profitable markets to trade in. This is largely due to
traders from all over the world discovering their
excitement and potential for success thanks to online
trading platforms which make it easier than ever to trade
with just your laptop or smartphone! You can learn to be a
formidable trader in the Forex market with this ebook.
You will get started on your path towards success by
learning about what it takes, why you should care and
how to read the markets!
WHAT IS THE FOREX MARKET?

The forex markets are a major source of currency
trading. They allow you to trade different currencies and
keep up with trends in the global economy.
The features that make this market so attractive is the

speed at which you can make money. profits can be
made from small price fluctuations abroad; liquidity -
there's always someone willing/able enough who wants
more than what they have available on their own
exchange (this also explain why it’s often better off
staying away during times where everyone seems
eager); transparency- anyone could open an account
without any knowledge about how things work really just
through reading instructions online.
1
https://www.letsgoclear.com/
Currency Pairs
A currency pair is a set of two currencies that are put
against each other in order to give us an exchange rate.
For example, the USD/JPY currency pair would be the
United States Dollar vs the Japanese Yen. In order to
trade this currency pair, we would need to know how
much the USD is worth in JPY, and vice versa. The
exchange rate between two currencies is always
changing, so it's important to stay up-to-date on the latest
rates. There are many different factors that can affect
exchange rates, such as economic indicators, political
stability, and natural disasters. By studying currency
pairs, traders can gain a better understanding of how
these factors impact the markets and make informed
decisions when it comes to trading.
147.39
USD/JPY
Base Currency Quote Currency
If the value of the base currency increases relative to the

quote currency, this means that our price will increase. If
the value of the quote currency increases relative to the
base currency, this means that our price will decrease.
So, if we are looking at a price chart for USD/JPY, and
the value of JPY is increasing relative to USD, expect the
price to go up. However, if USD starts to increase in value
relative to JPY, expect the price to go down.
1
Forex Market Structure Explained

The Forex market is an OTC (over-the-counter) market.
This means that trades are not executed on a central
exchange but rather through a network of banks and
other institutions. The forex market is open 24 hours a
day, 5 days a week. This makes it one of the most liquid
markets in the world. The large number of participants
and the high volume of trading also help to make the
Forex market very efficient. Prices are based on supply
and demand and are constantly changing.
The structure of the Forex market is unique because it is

not centrally located like other financial markets. Instead,
it is a network of transactions that take place between two
parties over the internet or other electronic means.
Because of this decentralized structure, Forex prices can
be quite volatile and are often influenced by political and
economic events. For example, major news
announcements or central bank policy changes can
cause sharp price movements in the Forex market. As a
result, Forex trading requires a high degree of flexibility
and risk management.
1
Price Terminology
When trading in the Forex market, it is important to be
aware of the various terms that are used to describe
prices. Here is a brief overview of some of the most
commonly used terms:
Spot price: The current price of a currency
Bid Price: The price you can sell at right now
Ask Price: The price you can buy at right now
Spread: Difference between the Bid and ask
Order Book: All the buy orders and sell
orders that are open
1
What's A PIP?
A pip is a fraction of the price and is the fourth number
after the decimal place in price. For example, the
EUR/USD price can be shown as 1.1025, and the pip is
6. If the number moves up 10 pips, we would now have
priced at 1.1035. In JPY this is the third number after the
decimal place. Pips are important to work out because
they help traders understand how much a currency has
changed in value. By tracking pips, traders can make
decisions about when to buy or sell a currency in order to
make a profit.
EUR/USD
1.1025 1.1026
One PIP
USD/JPY
106.20 106.21
One PIP
1
Examples of Pip movements
If the EUR/USD moves from 1.1025 to 1.1035 that's

an increase of 10 pips
If the EUR/USD moves from 1.1035 to 1.1025 that's

a decrease of 10 pips
The exception to this standard is the Japanese

yen (JPY) which is quoted to two decimal points:
If the USD/JPY moves from 106.20 to 105.40 that's

an increase of 20 pips
If the USD/JPY moves from 106.05 to 105.95 that's a

decrease of 10 pips
1
Positions Explained
Newcomers to the world of Forex trading are often
confused about the role of buying and selling in the
market. After all, if the goal is to make money, why would
anyone want to sell a currency? The answer lies in the
different types of positions that traders can take. While it
is true that traders can make money by buying and selling
currencies, they can also go against the market and make
money. This is known as taking a short position. When a
trader takes a short position, they are essentially
predicting that the currency will go down in value. If the
currency does indeed fall, the trader will be able to buy it
back at a lower price and pocket the difference.
Therefore, while Forex trading may seem confusing at
first, it is actually quite simple once you understand the
different types of positions that can be taken.
Long (Buy) - Expecting the market price to go up
Short (Sell) - Expecting the market price to go

down
1
What's A LOT?
A lot in Forex refers to the stake you have in a trade.
Essentially, each pip is worth a certain amount of money,
and that amount depends on your lot size. If you're using
a standard 1.00 lot, then each pip is worth about $10.
However, different currencies have different pip values,
so that number can change. For example, say you're in a
long position and the price moves 30 pips in your favour.
If you're using a 1.00 lot, then you've technically made a
profit of $300. Of course, there are other factors that can
affect your profit, and lot sizes can depend on things like
your account size or position size. But understanding
how lot sizes work is an essential part of Forex trading.
By carefully managing your risk and choosing your lot
size wisely, you can help ensure that your trades are
successful.
1
Spreads and Swaps

When trading in Forex, you're essentially borrowing one
currency to buy another. The difference between the two
currencies is known as the spread, and it's how your
broker makes money. The spread is usually calculated as
a percentage of the total value of the trade. For example,
if you're buying EUR/USD and the spread is 3 pips, that
means you're paying an extra 3 cents for every dollar you
buy.
Most brokers also charge a small fee for each trade that
you make. This is known as a swap fee, and it's how they
make money on overnight positions. The swap fee is
based on the interest rate differential between the two
currencies involved in the trade. So, if you're holding a
long position in EUR/USD overnight, you'll be charged a
swap fee based on the difference between European and
US interest rates.
While spreads and swap fees may seem like small

amounts of money, they can quickly add up if you're an
active trader. That's why it's important to shop around for
a broker with low spreads and reasonable swap fees. By
doing so, you'll keep more of your hard-earned profits in
your own pocket!
1
Trading Types
There are two main types of trading: technical analysis
and fundamental analysis. Technical traders focus on
price patterns and indicators to make predictions about
future price movements. Fundamental traders, on the
other hand, focus on economic factors like interest rates,
inflation, and employment data to make their predictions.
Both methods can be successful, but it's important to
understand the difference between them before you start
trading.
Both technical and fundamental analysis have their

strengths and weaknesses. Technical analysis is often
criticized for being too subjective - after all, there's no
guarantee that past patterns will repeat themselves in the
future. Fundamental analysis can be difficult to master,
and it's easy to get overwhelmed by all of the economic
data out there. Ultimately, it's up to each trader to decide
which method works best for them.
Technical Analysis - Analysis (Using charts to

predict price)
Fundamental Analysis - Analysis (Using news
events for prediciton)
1
Styles of Traders
When it comes to trading, there is no one-size-fits-all
approach. Instead, traders must choose the style that
best suits their personalities and goals. Day trading is a
popular choice for those who thrive on the excitement of
the markets. These traders are usually comfortable with
taking risks and are quick to capitalize on market
movements. Scalpers, on the other hand, take a more
cautious approach. They focus on small but frequent
profits and generally steer clear of large and volatile price
moves. Swing traders fall somewhere in between, holding
onto trades for days or even weeks in order to capture
larger swings in price. No matter what style you choose,
it's important to have a well-defined plan and stick to it.
Otherwise, you risk making emotionally-driven decisions
that can lead to costly mistakes.
Day Trading - Being in and out of trades within a

day
Scalping - Taking short term trades (in and out

quick)
Swing Trading - Holding trades for long periods

of time
1
PART 2:
THE
BASIC
GUIDE TO
CHARTS
1
Line Chart
One of the simplest and most popular Forex technical
analysis tools is the line chart. This type of chart shows
the progression of price over time, making it easy for
traders to see how prices have moved in the past. While
line charts may not be as sophisticated as some of the
other technical analysis tools available, they can still be
useful in identifying trends and making predictions about
future price movements. For these reasons, line charts
remain a popular choice among forex traders, both
beginners and experienced alike.
1
What are Candlesticks?

When it comes to Forex technical analysis, one of the
most commonly used charting methods is the Japanese
candlestick chart. When it comes to my personal strategy
I only use candlestick charts. Candlesticks are able to
provide a lot of information about the market, including
price action, trader sentiment and market momentum. As
a result, they are a valuable tool for any technical trader.
Japanese candlestick charts are especially useful for
identifying reversals and trend changes. The key is to
look for certain candle patterns that have been shown to
be reliable indicators of future market direction. If you can
learn to read candlestick charts, you will be well on your
way to becoming a successful Forex trader.
1
Timeframes
When we look at a candlestick chart, we are seeing a
representation of price movement over a certain period of
time. Each candle on the chart represents a specific
timeframe, such as 2 hours, 4 hours, or 1 day. By looking
at the chart, we can get an idea of how the price
fluctuated over that period of time. Common timeframes
that are used are daily, 4 hours, and 1 hour. However,
traders may also choose to use smaller timeframes
depending on their needs. By looking at a candlestick
chart, we can get a better understanding of price
movements and make more informed trading decisions.
1
Candle Anatomy
Regardless of the timeframe, candlesticks can give us a
lot of information about what is happening in the market.
For example, the size of the body and the length of the
wicks can tell us about the level of buying or selling
pressure in the market. The color of the candlestick can
also provide information about whether prices are rising
or falling. Candlesticks are a valuable tool for all traders,
and understanding how to read them can help you make
better trading decisions.
Upper Wick Upper Wick

Highest price of the Highest price of the
timeframe timeframe
Closing Price Closing Price
BODY BODY
Opening Price Opening Price
Lowest price of the Lowest price of the

timeframe Lower Wick Lower Wick timeframe
Candles always refer to a given time frame, and at every

interval of the time frame, a new candle is created. The
difference between the opening price and the closing
price is called the body of the candle. The highest price
and lowest price, in relation to the candle body, form a
shadow or a wick of the candle.
1
How Wicks Are Formed?

Wicks are the lines above and below the candlestick
body. They are created when the price of a security
moves higher or lower than it's open or close and then
returns to those levels. In other words, a wick shows that
the market has rejected higher or lower prices.
There are several reasons why wicks might form. One is

that buyers and sellers are battling for dominance, which
can create upper and lower wicks. Another reason is that
the market may be reacting to news or other events, but
then correcting itself as prices return to their "normal"
levels.
Wicks can provide valuable information to traders. They

can help you identify areas of support and resistance, as
well as potential turning points in the market. So next time
you see a wick on a candlestick chart, take a closer look
to see what it might be telling you about the market.
1
Market structure Explained: Uptrend

When the market is in an uptrend, this means that prices
are consistently breaching previous highs and not closing
below previous lows. An uptrend is confirmed when the
next high is higher than the previous higher high. After
confirmation, long positions become favourable as it is
likely that the uptrend will continue. When in an uptrend,
it's important to keep an eye out for key levels where
price might reverse. However, as long as price remains
above these key levels, the uptrend is still intact and long
positions should be kept.
1
Market structure Explained: Downtrend

A downtrend is confirmed when the new lower high is
lower than the previous high. So, if you see a price bar
chart with consistently lower highs being made over time,
that's a downtrend in motion. Of course, like all things in
then the markets, downtrends can vary in terms of length
and severity. A downtrend might last for a few days or
weeks, or it might last for months or even years. And,
while some downtrends are gentle and gradual, others
can be steep and sharp. So, it's important to be aware of
the different types of downtrends out there and how they
might impact your trading. When it comes to trading,
knowledge is power!
1
Market structure Explained: Sideways

After a higher high and a higher low (coming from an
uptrend) or a lower high and a lower low (coming from a
downtrend), no new higher or lower highs/lows are made.
The result is indecision in price, forming a sideway range.
A breakout on either side might occur. You can trade
inside the range (from low to high or high to low). You can
trade the breakout of the channel as well, after
confirmation.
1
Market structure Explained: Trendlines

Trendlines are simply lines that you can draw on your
chart that show the underlying trend of the market. They
can be drawn manually or automatically, and there are a
variety of different ways to interpret them. But at their
most basic, trendlines show whether a market is in an
uptrend, downtrend, or Sideways trend. And this
information is crucial in making informed trading
decisions. Trendlines are used to identify and confirm
trends, as well as to help traders predict future prices.
While there is no one perfect way to draw a trendline,
there are some basic guidelines that can help you get
started. While drawing trendlines may seem like a simple
task, it's important to remember that they are just one part
of your overall Forex trading strategy. In order to be
successful, you'll need to combine your trendline analysis
with other technical indicators and fundamental analysis.
But if you can master the art of drawing Trend lines
correctly, you'll be well on your way to becoming a
profitable trader.
1
Support and Resistance

Support and resistance are key concepts. Support is the
level at which prices find enough buyers to stop falling. In
other words, it is the floor beyond which prices are
unlikely to drop towards. Resistance, on the other hand,
is the level at which prices find enough sellers to stop
rising. It is the ceiling beyond which prices are unlikely to
rise towards. Support and resistance can be horizontal,
diagonal, or dynamic. Horizontal support and resistance
levels are the most common, and they are often used by
traders to set entry and exit points.
Support
Resistance
1
Trend change
A change in trend can only occur when old highs or lows
are breached. So, if you're looking for a change in trend,
it makes sense to pull horizontal lines from older highs
and lows. If price couldn't break a previous high, it's likely
because there wasn't enough demand at that level -
meaning the price will likely head lower. On the other
hand, if price breaks a previous low, it's a sign that there's
now more demand than there was before - indicating that
the price is likely to head higher. Knowing how to identify
these key levels can help you make better decisions
when trading forex.
Res
ista
nce
rt
ppo
Su
1
Candlestick patterns
This section of the guide covers some candlestick
patterns that perform exceptionally well as precursors to
price direction and potential reversals. They're all time-
sensitive: one way they can be profitable is by acting
quickly when prices change, though in different ways
depending on which pattern you use!
The following examples include several Forex trading

strategies using these powerful Candlestick patterns with
great success rates across various markets. Below are
the main candlestick patterns we will discuss in the
following pages.
Bullish patterns Bearish patterns

Bullish Engulfing Bearish engulfing
Bullish hammer Hanging man
Morningstar Evening star
Three White Soldiers Shooting star
Three black crows
Continuation patterns
Doji
Spinning top
Falling Three methods
Rising Three methods
1
Bullish Patterns: Bullish Engulfiing

Traders may be able to capitalize on a bullish pattern
after an overall downward trend, which will point toward
them opening up long trades.
The first candle is a short red body that's completely

engulfed by an even larger green one. This pattern
indicates that the price may continue to rise.
Bearish Candle
Close
Open
Bullish
Engulfing
Candle
Bullish
Engulfing
Candle
1
Bullish Patterns: Bullish Hammer

A Hammer Candlestick pattern occurs when a long body
with a lower wick indicates that selling pressure has been
building up after the open, but it's eventually
overwhelmed by strong buying power. Green hammers
mean we're in an uptrend while red ones indicate
downtrends so pay attention!
Potential
Direction
Bullish Hammer
Bullish
Hammer
1
Bullish Patterns: Morningstar

The Morningstar candlestick pattern is known for its
three-candlestick stick layout. one short-bodied candle
between a long red and a long green, indicates an
opportunity for a bullish reversal.
Potential
Direction
Morningstar
Pattern
Morningstar
Pattern
1
Bullish Patterns: Three White Soldiers

The Three white soldiers pattern occurs over Three
candlestick periods. It consists of consecutive long green
(or white) candles, which open and close progressively
higher than the previous one. The Three white soldier
pattern is a strong bullish signal that occurs after a
downtrend and shows a high probable chance of
continuing buying pressure.
Potential
Direction
Three White Soldiers
Three White Soldiers
1
Bearish Patterns: Bearish Engulfiing

Bearish candlestick patterns usually form after an uptrend
and signal a point of resistance.
The Bearish Engulfing candlestick pattern is the inverse

of the bullish Engulfing candlestick pattern. It occurs at
the peak of an uptrend and indicates a possible reversal
might happen.
Bullish Candle
Close
Open
Bearish
Engulfing
Candle
Bearish
Engulfing
Candle
1
Bearish Patterns: Hanging Man

The Hanging man is a bearish variation of a hammer. it
has a similar shape to the hammer and forms at the peak
of an uptrend. The Hanging Man is a great indication of a
possible upcoming sell in the market.
Hanging
Potential
Man
Direction
Hanging
Man
1
Bearish Patterns: Evening Star

The Evening Star candlestick pattern is a bearish
variation of the Morning star. It also consists of a Three-
candlestick stick layout. one short-bodied candle between
a long green and a long red, indicates an opportunity for
a Bearish reversal.
Evening
Potential
Star
Direction
Evening Star
1
Bearish Patterns: Shooting Star

The Shooting star is a similar variation of a bullish
hammer but for bearish scenarios. The Shooting Star is a
great indication of a reversal towards the downside.
Hanging
Man Potential
Direction
Hanging man
1
Bearish Patterns: Three Black Crows

The Three Black Crows pattern occurs over Three
candlestick periods. It is the bearish version of the Three
White Soldiers. The pattern occurs when you have Three
consecutive bearish candles that could indicate that
selling pressure is likely to continue.
Potential
Direction
Three Black Crows
Three BLack
Crows
1
Continuation Patterns: Doji

At times candlestick patterns will not indicate a change in
the market's potential direction. These patterns are
known as continuation patterns. The patterns help
indicate an indecision in the market and a possible
continuation of where the market is already going.
Doji patterns help indicate a struggle between buyers and
sellers. A Doji is a neutral signal it can either be a
reversal or a continuation.
Potential
Direction
Continuation Patterns: Spinning Top

The Spinning Top candlestick patterns are similar to Doji.
They have short bodies with long wicks of equal lengths
on both sides. the pattern indicates indecision in price.
Spinning Tops occur during ranging markets and follow
after a significant uptrend or downtrend. The Spinning
Top indicates the current market pressure of losing
control.
Potential
Direction
1
Continuation Patterns: Falling Three

Method
The Falling Three Method pattern is a continuation
method formed after a long red body followed by Three
small Green bodies and another Red body. The pattern
indicates that there is not enough pressure to reverse the
trend.
Falling Three Methods
1
Continuation Patterns: Rising Three

Method
The Rising Three method is the bullish version of the
Falling Three method. The pattern is made up of Three
Red candles in between Two long Candles. The pattern
indicates that although there's some selling pressure,
buyers are taking control of the market.
Rising Three Methods
1
PART 3:
THE
BASICS TO
TRADE
EXECUTION
1
Market Orders:
In the last few chapters, we've covered all about charts
and how you can use them to your advantage. In this
chapter, we are going to explore the different ways you
can use that newly gained knowledge to actually use to
place and execute orders. we will be going through the
following...
1) Market Orders & Pending Orders:

Market execution
Buy stop
Buy Limit
Sell Stop
Sell Limit
2) Take Profit
Stop Loss
3) Risk to Reward Ratio
1
Market Orders: Market Orders and

Pending Orders
Market orders and pending orders in the forex markets
are two different types of orders that traders can use
when conducting their trading activities. Market orders are
executed immediately at the current market price while
pending orders will be executed only when the price
reaches a predetermined level.
Market orders: Market orders are trades that

execute at the best available price, which can be
determined by looking at current market
conditions.
Pending orders: Pending orders are orders that

you can place in advance to be executed when
predetermined conditions are met.
Market orders and pending orders in the Forex markets

are two different types of orders that traders can use
when conducting their trading activities. Market orders are
executed immediately at the current market price, while
pending orders will be executed only when the price
reaches a predetermined level.
1
Market Orders: Market Execution

Market orders are trades that execute at the best
available price, which can be determined by looking at
current market conditions.
This is the current price available to be executed. If you

were to place a Market executed trade it would trade
around 0.67121 the reason it would not be executed at
exactly 0.67121 is that most brokers that you trade with
usually have had a spread that affects the price at which
your market-executed trade is placed, which generally
ranges a few pips.
1
Pending Orders: Buy Stop

A buy-stop order a Pending is placed above the current
market price and is executed when the ask price reaches
or surpasses the specified buy stop price. The advantage
of using a buy stop order is that it allows traders to enter
long positions in anticipation of an upward trend in the
currency pair's exchange rate. This type of order can help
traders minimize their risk by protecting them from
unexpected price movements which may cause losses.
BUY STOP ORDERS ARE

PLACE ABOVE PRICE IN
ATICIPATION THAT PRICE
WILL SURPASS THE BUY
STOP PRICE AND CONTINUE
UPWARDS
FOR EXAMPLE IN THIS

CASE WE HAVE A
BULLISH ENGULFING
CANLDE. I ANTICIPATE
A RISE IN PRICE. I
COULD PLACE MY BUY
STOP ORDER ABOVE
THE BULLISH
ENGULFING CANDLE
AND ANTICIPATE A
LONG POSITION
1
Pending Orders: Buy Limit

The buy-limit order is a pending trade placed below the
current market price of your currency. When prices
decrease, it will be executed in anticipation of bearish
markets to take place.
Buy limit orders are place

below the current market
price in anticaption of price
falling towards the pending
market order and coninuing
its bullish bias.
IN THIS EXAMPLE WE
HAVE IDENTIFIED A
SUPPORT ZONE. WE
ANTICIPATE THE NEXT
TIME THAT PRICE
DECREASES THERE IS
A LIKLEY CHANCE
THAT IT WILL RETSTET
AND BOUNCE AGAIN
IN THIS CASE WE
WOULD SET A BUY
LIMIT ORDER ON THE
SUPPORT LEVEL IN
WAIT THAT PRICE
RETESTS AND
CONTINUES ITS
Support Zone BULLISH TREND.
1
Pending Orders: Sell Stop

A sell-stop order in the Forex market is an order placed to
sell a currency pair at a price below the current market
rate. Sell-stop orders are generally placed below the
current market price and when triggered,
Sell stop orders are placed

below the current price of
the market in anticipation
that price moves
downwards opening the
position.
Lower High
IN THIS EXAMPLE
PRICE CREATED A
LOWER HIGH AND
BROKE THE PREVIOUS
LOWER LOW
INDICATING A
POSSIBLE CHANGE IN
Lower Low STRUCTURE IN THIS
CASE WE COULD
Higher Low PLACE A SELL STOP
BELOW IN
ANTICIPATION THAT
PRICE WILL CONTINUE
IT'S BEARISH BIAS.
1
Pending Orders: Sell Limit

A sell limit order is placed above the current market price
in anticipation that the price will First go upwards and hit
the sell limit then continue it's Bearish bias.
Sell limit orders are placed

above current price in
anticipation that price will
fall after price hits the the
limit order.
IN THIS EXAMPLE WE
SEE PRICE HAS
DEVELOPED
PRESSURE TOWARDS
THE BEARISH BIAS. WE
EXPECT PRICE TO
RETEST OF THE LAST
HIGH AND CONTINUE
DOWNWARDS. IN
THIS EXAMPLE I
WOULD PLACE MY
STOP LOSS ON THE
LAST WICK OF THE
PREVIOUS HIGH AND
EXPECT PRICE TO
CONTINUE ITS
BEARISH BIAS.
1
Take Profit & Stop Loss

A key element to successful trading in the Forex market is
the use of take profit and stop loss orders. These orders
help traders to protect their profits and limit their losses,
and they are essential for managing risk effectively.
Take profit orders are used to automatically sell a

currency pair when it reaches a certain price, which helps
to lock in profits on a trade. Stop loss orders are used to
automatically sell a currency pair when it falls below a
certain price, which helps to protect against losses on a
trade.
Stop Loss
Entry LETS LOOK AT THE SAME
EXAMPLE WE LOOKED
PERVIOUSLY. WE PLACE
OUR STOPLOSS A FEW PIPS
ABOVE OUR ENTRY POINT
AND OUR TAKE PROFIT
APROPRIATLEY BELOW OUR
ENTRY. WHEN LOOKING AT
POSITIONS BEFORE
Take ENTERING A TRADE WE
Profit LOOK TO PLACE OUR TAKE
PROFIT AND STOP LOSS TO
GET A RISK TO REWARD OF
AT LEAST 1:3. I WILL
EXPLAIN IN THE NEXT PAGE
HOW TO USE RISK TO
REWARD TO PLACE OUR
STOP LOSS AND TAKE
PROFIT.
1
RISK TO REWARD RATIO

The Risk to Reward Ratio in the Forex market is used to
understand how you should place your stop loss. This
ratio looks at the potential loss from a trade, compared to
the profits that could potentially be achieved. It is a very
important concept for traders to understand in order to
ensure their trading strategy is profitable and that they are
not taking too large of risk with each individual trade. The
Risk/Reward ratio should always factor into decisions
when placing stop-loss orders and setting take profit
levels.
The Risk/Reward Ratio works by dividing the maximum

amount of risk taken in the trade by the potential reward if
the trade is successful. I personally recommend a
minimum Risk to reward ratio of 1:3. Let's say that in this
case, we are taking a trade and one pip equals 10$. A
ratio of 1:3 would mean that if you risked $100 or 10 pips,
you could potentially make $300 or 30 pips on a
successful trade. This helps traders quickly measure how
much they can risk on each trade while still having a good
chance of making a profit.
1
PART 4:
THE BASICS
OF
TRADINGVIEW
1
TRADINGVIEW
TradingView is a platform that lets you customize
technical indicators, create charts, and analyze financial
assets. These indicators are patterns, lines, and shapes
that millions of traders use every day. TradingView is
entirely browser-based, with no need to download a
client. You can also download an app for iOS and
Android if you prefer a mobile experience.
TradingView allows users to look up data on a variety of

different assets. These assets include commodities,
Forex pairs, stocks, cryptos and more. The website
provides charts and graphs that allow users to track the
performance of these assets over time. In addition, users
can set up alerts to be notified when certain conditions
are met. For example, an alert could be set for when
price reaches a certain level. Tradingview is a valuable
resource for anyone who wants to track the performance
of different assets.
TradingView will be the main application we will be using

to mark up charts, do technical analysis and make
decisions on entry points for trades.
1
GETTING STARTED WITH TRADING

VIEW
TradingView Is simple
to get started with all
you have to do is
signup with your email
or social media and get
started.
Once you have successfully signed up you can choose

whether or not you would like the basic or paid version
of the application. I would suggest paying for the "PRO"
plan if you would like more advanced features of the
app like backtesting, but the "BASIC" plan works as
well.
1
UNDERSTANDING TRADINGVIEW:
The TradingView interface may seem confusing at first,
but it's actually quite simple...
SOURCE: ACADEMYBINANCE
1. The toolbar consists of all the drawing and charting

tools needed.
2. This toolbar allows you to customize the appearance
of your charts and insert indicators of your choice.
3. Tradingview allows you the ability to connect with
your broker (if they are available). Under the tab, you
will be able to find out the list of brokers you can
connect with.
4. The section of trading view interface consists of
TradingView social section where you can connect
with other users, access calendars and edit your
watchlist.
1
CHANGING TIMEFRAMES
TradingView makes it easy to change between
timeframes which is an integral part of trading to analyse
the multiple timeframes to make decisions
Using the timeframe tool bar

located in TradingView you
can chose from a various
amount of different
timeframes. This will be
helpfull in quickly analysing
different tumeframes. Another
feature which is only available
in TradingView's "PRO" plan
is the ability to customise the
specific timeframe. Using this
feature you can create
different timeframes that are
not avialable in the "BASIC"
plan such as 25 min time
frame or 12 hour timeframe.
1
PART 4:
THE BASICS
OF TOOLS
AND
INDICATORS
1
THE BASICS TO TOOLS AND

INDICATORS:
In the last chapter, we discussed how to use the
TradingView platform. In this chapter, we will go through
the basics of how to use tools and indicators to improve
your technical analysis.
In this chapter, we will go through...
BASIC TOOLS:
LINES
FIBONACHI RETRACEMENT
MEASURE TOOL
LONG POSITION
SHORT POSITION
BASIC INDICATORS:
VOLUME
RELATIVE STRENGTH INDEX
(RSI)
SIMPLE MOVING AVERAGES
BOLINGER BANDS
1
THE BASICS OF TOOLS AND

INDICATORS: LINES
Using lines is a great tool to model price action.
First, select the line tool from the left-hand toolbar.
There are multiple types of

lines that we use the most
common ones are trendlines
and horizonatal/vertical
Lines.
We use Trendlines to draw out We use horizontal lines to draw

Bearish/Bullish trends resistance/support areas
Vertical Lines are

drawn to mark out
specific periods of
time that are of
importance.
1

INDICATORS: FIBONACCI RETRACEMENT
Using lines is a great tool to model price action. The

Fibonacci tool is a powerful technical analysis tool that
can be used to identify potential support and resistance
levels in the market. The Fibonacci tool is based on the
Fibonacci sequence, which is a series of numbers that
are related to each other in a specific way. The Fibonacci
tool is designed to help traders identify potential turning
points in the market, and it can be used in conjunction
with other technical indicators to confirm these signals.
The Fibonacci tool is most effective when the market is
trending, as it can help traders to identify potential areas
where price could potentially reverse direction.
It is important to be aware of common Fibonacci levels. These

levels occur at 23.6%, 38.2%, 50.0%, 61.8% and 76.4%. The idea is
that the price will make a correction that will reverse at one of
these levels. So, when you see the price action near these levels,
it's important to watch for reversal patterns.
1

INDICATORS: FIBONACCI RETRACEMENT
To Use the Fib tool click on the taskbar on the left-hand

side and select the Fibonacci Retracement tool. Once you
have done that place the Fibonacci Retracement tool
from one high to low and find if there are any strong
reversal areas that the price has Reversed from.
Key reversal area

(0.818)
1

INDICATORS: MEASURE TOOL
Using price and date range is a great way of measuring
the percentage, amount of pips, volume and time
durations of any chart. The price and date Range is a
great measuring tool, the reason I prefer the measuring
tool is that it gives you all the information of both tools at
the same time.
First, select the measure tool from the left-hand

toolbar.
Measuring Tool
As indicated in this
example. The
measuring tool gives
you selected data on
duration, Pips, volume
and percentage
increase on the
specific time chosen.
1

INDICATORS: LONG/SHORT POSITION
Long and short positions are great tools to use to provide
an accurate and visual representation of any given trade,
both consists of information that includes the stop loss,
take profit, entry point, percentage and risk to reward.
understanding how to use these tools on trading view will
dramatically help you understand how to place your
trades and how positions work when trading in the Forex
market
First, select the prediction and measure tool section

from the left-hand toolbar.
Based on the setup you are looking for click your

entry point and drag the both Stop Loss and Take
profit to the desired points
1

INDICATORS: VOLUME
The Volume indicator is used to measure how much of a
given financial asset has traded in a specific period of
time.
The colouring in the volume is red and green originally,

which is not to be confused with the “buy and sell”
volume. Rather it is based on the candle associated with
that period. If it is a red day the volume bar will show up
red, then green for a green day. This can be changed.
The reasoning behind this is that there is no “sell volume
or buy volume”. For every buyer there is a seller, so the
only thing that dictates the size of the candle is how many
assets exchanged hands throughout that period.
1

INDICATORS: RSI
The Relative Strength Indicator, or RSI, is a technical
analysis tool that measures the momentum of price. It
oscillates between zero and 100, with readings below 30
indicating oversold conditions and readings above 70
indicating overbought conditions. The RSI can be used to
identify potential reversals in the market, as well as to
confirm trends. When the RSI is rising along with price, it
indicates that the uptrend is gaining strength. Conversely,
when the RSI is falling along with price, it indicates that
the downtrend is gaining strength.
Overbought
conditions (70 mark)
Oversold conditions
(30 mark)
In this chart we
cans see how
effective the RSI
tool is. The green
arrows indicate
oversold
conditions and the
red indicate over
bought conditions
1

INDICATORS: MOVING AVERAGES
Moving averages are a great tool to use in your technical
analysis. Simple moving averages give equal weight to
each data point, Moving averages can also be used to
identify support and resistance levels. When the price is
below its moving average, it is said to be in a downward
trend. Conversely, when the price is above its moving
average, it is said to be in an upward trend.
10 SMA
20 SMA
Sell
Sell Buy
Buy
Buy
Moving Averages can be used to generate buy and sell

signals. When the short-term moving average crosses
above the long-term moving average, it is often seen as a
bullish signal. Conversely, when the short-term moving
average crosses below the long-term moving average, it
is often seen as a bearish signal. By combining these two
indicators, you can get a better sense of whether a
currency pair is likely to continue trending in its current
direction.
1

INDICATORS: BOLLINGER BANDS
Bollinger bands are one of the most popular technical
indicators used by traders. Bollinger bands consist of
three lines: an upper line, a lower line, and a middle line.
The middle line is typically a 21-period moving average,
and the upper and lower lines are typically two standard
deviations above and below the middle line. When the
markets are volatile, the Bollinger bands will expand, and
when the markets are calmed, the Bollinger bands will
contract. They can be used to identify trends, overbought
and oversold conditions, and to generate trading signals.
With proper use.
Upper line
Sell Middle line
Lower line
Sell When Price reaches the
upper line you can use that
as a signal to sell if price
gives you a strong reversal
signal. If price drops to the
lower line you can anticipate
a bullish move as well if
there is a strong bullish
Buy reversal signal.
1
PART 5:
MANAGING
RISK
AND
PSYCHOLOGY
1
MANAGING RISK AND PSYCHOLOGY:
In trading, as in any other activity, there is always the

element of risk. No one can predict the future with 100%
accuracy, and even the most experienced traders can
make mistakes. That's why it's so important to have a
good understanding of risk management and psychology.
By managing your risks carefully, you can minimize your
losses and maximize your profits. And by understanding
your own psychological biases, you can avoid making
costly mistakes. Trading is very demanding, but if you're
armed with the right knowledge, tools and mindset, it can
be a very rewarding experience.
MINDSETS THAT ARE DETRIMENTAL TO

YOUR TRADING.
-Trying to get rich overnight
-Blame the market or other people for your
failures
-Having fear
-Lack confidence
Be mindful of these mindsets when you are trading to

ensure you are making decisions with the right mindset.
Remember, success in trading requires discipline and
consistency. The more disciplined and consistent you
are, the more successful you will be.
1
Trading has to do with 4 things; Psychology, risk

management, emotion and consistency
Pick a strategy and focus on it, use stops, and make sure
you are prepared for both good and bad results.
Practice with trading Demo accounts or small trades to
help build consistency and discipline.
Remember that the markets don't always provide an
opportunity all the time, so be patient.
Utilize risk management techniques such as setting stop
losses, scaling into positions and not over-trading.
Understand your own psychology to help manage
emotions when trading, and focus on the process rather
than the result. Keep records of your trades, analyze
them regularly and learn from mistakes. Develop a set of
rules that you'll follow while trading and adhere to them.
When it comes to trading, two of the most important
qualities you can have are discipline and patience.
Without these, it is all too easy to make impulsive
decisions that can lead to losses. Instead, you need to be
able to take a step back and carefully consider each trade
before executing a move. This requires discipline - the
ability to stick to your plan and resist the urge to act on
impulse. It also requires patience - the willingness to wait
for the right opportunity and not force trades that are not
ideal. If you can master these two qualities, you will be
well on your way to success in the world of trading.
1

COMPOUNDING
Anyone who has ever traded knows that it is a difficult
endeavour. Making money in the markets is not easy, and
even the most experienced traders can have losing
streaks. One of the keys to success in trading is to have a
plan and stick to it. This means being patient and
disciplined, only taking trades that fit your strategy. When
you do this, you will find that your results compound over
time. Small wins add up, and eventually, you will be
making consistent profits. In trading, it's not all about
making a huge profit on one trade. While that would be
nice, it's more important to focus on consistency and
compound results. Compound results are when you're
successful day in and day out, week after week, month
after month, and year after year. This is what will propel
you to the top. Trying to get big wins inconsistently will
eventually blow up your account, but with consistent small
wins, you can see your account do very well in the long
term. So when setting out a plan, remember to focus on
compound results and you'll be on your way to success.
Focusing on getting that 1:3 Risk to Reward while risking
a small percentage of your account will see you make
incremental gains over time.
1

THE PATH TO SUCCESS
The path to success in the Forex market is a long and difficult
road but if one thing I'm certain of it's a simple one. Make
things simple for yourself and keep your head down focusing
on the process, not the end result. This will allow you to see
for yourself where you want to be. Always be open to learn
more, look to develop your skills, refine your trades, refine your
risk and execution when it comes to your trades over and over
again. Whether it takes you hundreds of times or thousands of
times this is the way you lead yourself to a successful trading
journey. It is possible to reach the goals you want to reach, I
have done it personally and tens of thousands of others have
done it as well. One of the keys to this is to keep on improving
by staying consistent and sticking to the rules and strategies
you have learnt. The journey to success is not always an easy
one, but it is definitely worth it in the end. Before you finish this
book I would like to leave you with one of my favourite quotes.
'Everybody is always in a hurry. I dont know where they are

going but they will be sorry when they reach where they're
going. The faster you try to get to your destination, career, that
money & you will figure out it was the journey. It was not the
destination. You was in a hurry for the come up and be this
and be that but you will realise once you get there you will feel
discourage more than you did before you even started
because it was the journey. Take your time, enjoy it & learn
from it'
LetsGoClear...
1

How To Go Clear With Forex Trading

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

How To Go Clear With Forex Trading

Uploaded by

Copyright:

Available Formats

LetsGoClear

THE FOREX TRADING

Neither the author or the publisher assumes any responsibility or liability

Copyright © 2022 by LetsGoClear All rights reserved. This book or any

WHAT IS THE FOREX MARKET?

The features that make this market so attractive is the

Base Currency Quote Currency

If the value of the base currency increases relative to the

Forex Market Structure Explained

The structure of the Forex market is unique because it is

Spot price: The current price of a currency

Bid Price: The price you can sell at right now

Ask Price: The price you can buy at right now

Spread: Difference between the Bid and ask

Order Book: All the buy orders and sell

orders that are open

Examples of Pip movements

If the EUR/USD moves from 1.1025 to 1.1035 that's

If the EUR/USD moves from 1.1035 to 1.1025 that's

The exception to this standard is the Japanese

If the USD/JPY moves from 106.20 to 105.40 that's

If the USD/JPY moves from 106.05 to 105.95 that's a

Long (Buy) - Expecting the market price to go up

Short (Sell) - Expecting the market price to go

Spreads and Swaps

While spreads and swap fees may seem like small

Both technical and fundamental analysis have their

Technical Analysis - Analysis (Using charts to

Day Trading - Being in and out of trades within a

Scalping - Taking short term trades (in and out

Swing Trading - Holding trades for long periods

What are Candlesticks?

Upper Wick Upper Wick

Closing Price Closing Price

Opening Price Opening Price

Lowest price of the Lowest price of the

Candles always refer to a given time frame, and at every

How Wicks Are Formed?

There are several reasons why wicks might form. One is

Wicks can provide valuable information to traders. They

Market structure Explained: Uptrend

Market structure Explained: Downtrend

Market structure Explained: Sideways

Market structure Explained: Trendlines

Support and Resistance

The following examples include several Forex trading

Bullish patterns Bearish patterns

Bullish Patterns: Bullish Engulfiing

The first candle is a short red body that's completely

Bullish Patterns: Bullish Hammer

Bullish Patterns: Morningstar

Bullish Patterns: Three White Soldiers

Three White Soldiers

Three White Soldiers

Bearish Patterns: Bearish Engulfiing

The Bearish Engulfing candlestick pattern is the inverse

Bearish Patterns: Hanging Man

Bearish Patterns: Evening Star

Bearish Patterns: Shooting Star

Bearish Patterns: Three Black Crows

Three Black Crows

Continuation Patterns: Doji

Continuation Patterns: Spinning Top