Kill The Market Daily

KILL THE MARKET DAILY
Copyright © 2020 Adex&Brytefx
WHO WE ARE
Adex&Bryte fx is a financial institution that offers candidates an opportunity to

learn and explore about the foreign exchange market. We offer a full package
of a beginners to advanced course, thus enhancing knowledge to those who
already have experience and also those who don’t.
Our main aim is to eradicate poverty and uplift the youth.
(HARDWORK PAYS OFF) WE PASS KNOWLEDGE.
CONTACT US
Contact Number: +234 814 393 6212 / +234 810 317 4609
Email address: Adexexchanger@gmail.com
Instagram: adexfx_
Website: www.adexexchanger.co.za
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TABLE OF CONTENT
INTRODUCTION
CHARACTERISTICS NEEDED TO BECOME A SUCCESSFUL TRADER
Lesson 1 - What is forex? Page 6
WHAT IS TRADED IN THE FOREX MARKET Page 7
WHO IS THE FOREX BROKER Page 7
TERMS USED BY BROKERS AND RETAIL TRADER Page 8-9
TRADING TIMES AND TRADING SESSION Page 10-11
TERMINOLOGIES USED IN FOREX Page 12-13
TWO TYPES OF TRADING Page 13-16

INTERPRETATION OF NFP Page 16-17
UNDERSTANDING FOREX CURRENCY PAIRS QUOTES Page 18-20

WHEN DO YOU BUY AND WHEN DO YOU SELL? Page 20-21
CONCEPT OF BID AND ASK PRICE Page 22
FORMS OF TRADING ORDERS Page 22-25
HOW TO KNOW WHEN TO BUY OR SELL Page 26
FOREX LOT SIZE Page 27-28
EXPLAINING THE INDICATORS Page 29-34
TIMEFRAMES Page 34
WHAT IS SUPPORT AND RESISTANCE Page 35

CANDLESTICK ANALYSIS Page 36-40
CHART PATTERNS Page 41-42

RISK MANAGEMENT Page 42
HOW TO OPEN AN ACCOUNT Page 43
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INTRODUCTION
This book consists of a collection of the forex basics, everything you would
need to know to get started. As you embark on this new journey there certain
things you will need to know in order to survive in the long run. Take it as a
small business that you are recently starting, one step at a time. Obviously for
you to become great you need to start somewhere. This book is that place you
need to start at and once you are done with it, you will be having a light of
what is going on in the forex industry.
Learning to trade will take you on a journey of self-awareness as ‘your past
reaches into your present and programs your future’. At some point in their
journey every trader will have some bad habits and unaware apply these to the
market, ultimately meaning when you choose a behaviour you are choosing a
consequence. Thus becoming your own worst enemy if you do not remove
yourself of any bad habits. In order to become successful in this game you
must transform your bad habits into good ones. Some may take longer than
others and may make more mistakes in order to form them into the best
traders they can possibly be. Persistence is absolute key in this business; you
will most definitely be rewarded for your efforts when you become more
dedicated and persistent.
In this book you will get the chance to learn the market language and how it
works, why certain things happen and how you can actually be a part of it.
Sounds great right!? Yes! Only because you chose to take a course with
Adex&Bryte Fx certain things will be revealed to you in this book. Yes its basics
you can get them anywhere but the secret is within the basics. Buckle up! Let’s
go….
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CHARACTERISTICS NEEDED TO BECOME A SUCCESSFUL TRADER
 ABILITY – To take a loss without becoming emotional.

 CONFIDENCE- To believe in yourself and your trading strategy, and have
no fear.
 DEDICATION- To becoming the best Forex Trader you can be.
 DESCIPLINE- To remain calm and unemotional in a realm of constant
temptation (the market).
 FLEXIBILITY- To trade changing Market conditions successfully.
 FOCUS- To stay concentrated on your trading plan and not stray off
course.
 LOGIC- To look at the market the market from an objective and straight
forward perspective.
 ORGANIZATION- To forge and reinforce positive trading habits
 PATIENCE- To wait for only the highest- probability trading strategies
according to your plan
 REALISM- To not think you are going to get rich quick and understand
the reality of the market and trading.
 SAVVY- To take advantage of your trading edge when it arises and be
aware of what is happening in the market at times.
 SELF CONTROL- To not over-trade and over-language you’re trading
account.
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LESSON 1- WHAT IS FOREX
You may have noticed that the value of currencies goes up and down every
day. What people don’t realize is that there is a foreign exchange market or
‘’forex for short”, where you can potentially profit from the movement of
these currencies.
Forex is one of the largest market in the world with a total daily liquidity of
$5.3 Trillion. The New York stock Exchange which is the second largest market
is having a daily trading volume of $169 Billion Dollars. That is to show the
massive liquidity, which is the Forex Market
Compare that with the New York Stock Exchange which only has an average
daily trading volume off 55 billion dollars. In if you were to put all of the world
equity and futures markets together, they are combined trading volume would
only equal ¼ of the forex market.
Why is size important?
Because there are so many buyers and sellers that transaction prices are kept
low. If you’re wondering how trading the forex market is different than trading
stocks, here are a few major benefits.
1. Many firms don’t charge commission- pay only the Bid/ask spreads.
2. There’s 24 hours trading -you dictate when the trade and how to trade.
3. You can trade on leverage, but this can magnify potential gains and losses
4. You can focus on picking from a few currencies rather than from 5000
stocks.
5. Forex is accessible- you don’t need a lot of money to get start
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WHAT IS TRADED IN THE FOREX MARKE T
The Mechanics of a trade are virtually identical to those in other markets. The
only difference is that you are buying one currency and selling another at the
same time. That’s why currencies are quoted in pairs, like EUR/USD or
USD/JPY. The exchange rate that represents the purchase price between the
two currencies.
Example:
The EUR/USD rate represents the number of USD €1 can buy. If you think the
Euro will increase in value against the US dollar can you buy Euros with US
dollar? If the exchange rate rises, you sell the euros back and you cash in your
profit. Please keep in mind that forex trading involves a high.
WHO IS THE FOREX BROKER

Forex brokers are firms that gives you access to the market. They provide you
as a trader banks could access the financial market, but now we have
mediators between retail Traders (Us) which are called brokers. Without these
people/firms, we wouldn’t have had access on trading on our own.
What these firms do (the brokers), they allow you to register or sign up an
account with them which you will be using to trade, thus giving you access to
the financial market at a certain cost. We'll dig in deep to that later on in this
book. They give you support as a trader, enabling you to explore their platform
and navigate freely, seeing how price fluctuate.
We have various brokers in the forex market. We do not recommend any one
any brokers in this book however we are going to give you examples of
different brokers that we have.
We have
• hot forex
• fxtm
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TERMS USED BY BROKERS AND RETAIL TRADER
• Cross rate
the current exchange rate between two currencies both of which are not the
official.
Currencies of the country in which the exchange rate quote is given in this
phrase is also sometimes used to refer to currency quote which do not involve
the US dollar regardless of which country the code is provided in.
• Exchange Rate
The value of one currency expressed in terms of another.
For example if EUR/USD is 1.3200. 1 Euro is worth US $1.3200
• PIP
the smallest increment of price movement a currency can make. Also called
the point or points.
For example 1 pip for EUR/USD = 0.0001 and 1 pip for the USD/JPY = 0.01
• LEVERAGE
Leverage is the ability to gear up your account into a position greater than your
total account margin. For instance if a trader has $1.000 in his account and he
opens $100.000 position, he leveraged his account by 100 times or 100:1.if he
opens a $200.000 position with $1.000 of margin in his account, his leverage is
200 times or 200:1. Increasing your leverage magnifies both gains and losses.
“BUT I DONT HAVE ENOUGH MONEY TO BUY 10,000 euros! Can I still trade?”
You can! By using leverage.
When you trade with leverage, you wouldn't need to pay the 10,000 euros
upfront. Instead, you’d put down a small “deposit”, known as margin. Leverage
is the ratio of the transaction size (“position size”) to the actual (“trading
capital”) used for margin.
For example 50:1 leverage also known as a 2% margin requirement means
$2,000 of margin is required to open a position size worth $100,000.
Margin Trading lets you open large position sizes using only a fraction of capital
you'd normally need. This is how you’re able to open $1,250 or $50,000
position with as little as $25 or $1,000.(you can conduct relatively large
transactions with a small amount of initial capital.
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• Margin
The deposit required to open or maintain a position. Margin can be either
“free” or “used”. Used margin is that amount which is being used to maintain
an open position, whereas free margin is the amount available to open new
position. With a $1.000 margin balance in your account and a 1% margin
required to open a position, you can buy or sell a position with up to notional
$100.000. This allows a trader to Leverage his account by up to 100 times or a
leverage ratio of 100:1.
If a trade account falls below the minimum amount required to maintain an
open position he will receive a margin call requiring him to either add more
money into his or her trading account or to close these positions. Most brokers
will automatically close a trade when the margin balance falls below the
amount required to keep it open. The amount required to maintain an open
position is dependent on the broker and could be 50% of the original margin
required to open the trade.
• SPREAD
the difference between the sell quote and the buy quote or the bid and offer
price. For example if EUR/USD quotes read 1.3200/03, The Spread is the
difference between 1.3200 and 1.3203 or 3 pips. In order to break even on a
trade a position must move in the direction of the trade by an amount equal to
the Spread.
BALANCE
this is the amount of money that is in your trading account.
• EQUITY
The Original amount of money you have after placing or closing a trade. For
example if your trading Balance is $100 and you take a trade and you run in a
profit of $10 dollars , your Equity will reflect as $110 while your balance remain
at $100 until you close it . The money is not your until you close it . Vice versa if
you are in a loss of -$10 your Equity will be $90 making it the Original amount
of money you have after you
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TRADING TIMES AND TRADING SESSION
we are entering into the most part of this forex training. If you were distorted
before let’s focus because you’re 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.
• ASIAN SESSION – Also known as the Asian consolidation session

• LONDON SESSION – Also known as the Breakout session, represents the
United Kingdom and the countries within it
• FRANFURT SESSION-Which is in Germany represent Europe.
• NEW YORK SESSION – Also known as the reversal session, represents The
Americans
Forex is actually a 24hrs 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.
The market closes on Friday 23:00 p.m. and opens on Sunday 23:00 p.m. So no
matter where you are around the world, no matter your time zone you can
actually trade this large highly liquid market
1. SYDNEY SESSION
2. TOKYO SESSION
3. LONDON SESSION
4. FRANKFURT SESSION
5. NEW YORK SESSION
the session names are derived from the major cities in which most of the
transactions are done.
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For example.
• Sydney session represents Australia and other countries around the time
zone.
• Tokyo session sometimes called agent session represents Japan and some of
the Asian countries.
Now there is an important thing to note here this is what many forex Traders
don’t actually understand because nobody taught them. It is always good to
trade the market when two markets are open at the same time. When two of
the sessions are open.
Now let’s get on to their Trading times because each of this session have their
own opening and closing times.
• SYDNEY SESSION (opens by 9 PM GMT)
• TOKYO SESSION (opens by 11 PM GMT)
• LONDON SESSION (opens by 7 AM GMT)
• FRANFURT SESSION (opens by 8 AM GMT)
• NEW YORK SESSION (opens by 1 PM GMT)
Never trade a silent market but only a volatile market please keep this in mind.
Volatile market simply means when two market sessions are open at the same
time. Just calculate those market session time to know when the market will
be open together, those times are the best time to trade.
Once again I repeat NEVER TRADE A SILENT MARKET. This is because volatility
is always more when two or more sessions are open and in forex market MORE
VOLATILITY MEANS MORE MONEY!
As a forex Trader you wouldn’t want to trade a quiet market because there
won’t be much fluctuation and it’s those movements that make money for us.
So as a forex Trader always time your trading to fall in periods where two or
more markets are open at the same time by doing that you would always have
an edge in the market full stop would be learning more important things let’s
follow the training closely.
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TERMINOLOGIES USED IN FOREX
LONG VS SHORT
Another great thing about the forex market is that you have more of a
potential to profit in both rising and falling markets due to the fact that there is
no market bias like the bullish bias of storks. Anyone who has traded for a
while knows that the fastest money is made in a falling market, so if you learn
to trade both bull and bear markets you will have plenty of opportunities to
profit.
LONG – when we go long it means we are BUYING the market. We want the
market to rise so that we can then sell back our position at a higher price than
we bought for, this means we are buying the first currency in the pair and
selling the second. So if we buy the EUR/USD and the Euro strengthened
relative to the US dollar we will be in profitable trade.
SHORT-when we go short it means we are SELLING the market and so we want

the market to fall so that we can then buy back our position at a lower price
than we sold it for. This means we are selling the first currency in the pair and
buying the second. So if we sell the GBPUSD and the British pound weakens
relative to the US dollar we will be in a profitable trade.
If a trader tells you that he went long on a currency pair, he meant that he
bought the pair and well if they tell you they short a currency pair it means
they sold the pair. Soon you would get to see that all we do in forex is buying
and selling.
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BULLS – The Buyers are referred to as BULLS

BEARS – The Sellers are referred to as BEARS
• RANGING- a market is said to be ranging if it does not have any particular

Direction it’s not moving upwards or downwards. Also known as a
consolidating market.
• TRENDING- a market that has a direction. It’s either moving upwards or
downwards. So you can hear people say a market is trending upward or the
market is trending downwards. Or you may hear people tell you that the
market is just ranging meaning it is just consolidating they are indirectly telling
you that the market has not found any direction yet.
TWO TYPES OF TRADING
TECHNICAL ANALYSIS VS FUNDEMENTAL ANALYSIS
When you use any of the above to analyse the market it’s called technical
analysis. Majority of what we listed on the course outline is technical analysis.
Among the two major forms of analysis no one is superior to the other and also
no one is used in isolation.
TECHNICAL ANALYSIS
Technical trading or technical analysis involves analysis of a markets price chart

for making one's trading decisions. Technical analysis Traders use price
patterns or ‘technical signals’ to trade the market with an edge. The common
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belief amongst technical analysis Traders is that all economic variables are
represented by and factored into the price movement on a price chart.
This form of trading is when you analyse the market using indicators chart
patterns, candlesticks Fibonacci, support and resistance, pivot points, Elliott
waves etc...
FUNDAMENTAL ANALYSIS
Fundamental trading or news trading is a trading technique would learn as we

move on how to harmonize the two to constantly keep you on top, because
every day can’t be Christmas. By volatile use like NFP is not going to be
released every day, so you have to learn to learn how to analyse the market
and trade in the absence of any major news release. That’s what makes you a
complete forex Trader.
TECHNICAL ANALYSIS it’s the most popular form of trading this is because high
volatile news is not released every day so you can’t just depend on
fundamental analysis alone. Every day can’t be Christmas so as a forex Trader
you must learn how to trade the wherein Traders rely heavily on market news
to make their trading analysis and predictions. Fundamental news does drive
price movement but often times the market will react differently than what a
particular news release would imply due to the fact that market participants
often buy on expectations of future events and sell once the reality of said
future events occurs.
Here you are analysing the forex market with respect to the news.
It’s been said that news is what moves the market. Every day various news are
being released by this major countries and they either positively or negatively
affect the currency pairs involved and then you make your trading decision
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based on the news you heard. Now whether the news is positive or negative as
a forex Trader that is none of your business because you make money both
ways.
We see all these news on the CNN, Bloomberg, and CNBC...etc. and also your
mt4 app has a summary of News section also some sites
like forexfactory.com and dailyfx.com etc... gives you a summary of the news.
When a currency is also depreciating based on the news we go short on the
pair. Like many Traders do every day they buy some and sell some so in forex
you make money on both sides of the news.
Now we will be discussing an important news release by the United States. This
is a news release by the United States of America out all the news released by
the US this is the highest because it causes the most volatility in the market.
Even though there are news releases every day there is what we forex Traders
call KING OF ALL NEWS it is called the NFP (NON-FARM PAYROLL). , it’s a news
that contains various data and statistics released by the US Bureau of labour
and statistics.
It is very influential as an indicator of US economy because of the US Federal
Reserve makes monetary Policy decisions based on this data. 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 news entails.
The data released includes:
1) Non-farm payroll increase

this is the number of new jobs added in the US labour section in the previous
month. This data includes employment in the manufacturing sector,
construction sector, goods sector etc...
Excluding farmworkers (hence the name),also excluding private household
employees and non-profit organisations
2) Unemployment rate of the US

3) 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
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sector that added more jobs would be most likely to have experienced
growth..
Hence Investors, Financial Analysts, Forex Traders, Stock Traders make trading
decisions with the news.
NFP is released every FIRST FRIDAY OF THE MONTH by 8:30am EST

I.e. 12:30pm GMT
i.e. 12:30 pm Ghana time
i.e. 1:30pm Nigerian time
i.e. 2:30pm South African time
just calculate according to your time zone.
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 and increasing the growth
of the economy.
4) 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 they are number increased. Same also could be interpreted in
reverse if their earnings reduced 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.
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Also the US government 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
government’s pocket hence boosting the economy.
5) 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. So this is just a breakdown of what NFP entails and why
it’s so volatile.
It’s usually released first Friday of every month, most Traders trade once a
month. They fund their accounts especially for NFP and close for the month.
Most people make what we would be paid in a year just on an NFP afternoon,
that’s how massive NFP news are, it causes large volatility in the market.
Types of traders
Day trading- Traders who they trade the forex market are in and out of the
market within one day. This means they typically buy and sell currencies over a
very short period of time and they may enter and exit numerous trades in one
day.
Scalping -scalping is similar to day trading but it relies on more frequent and
shorter-term trade than even day trading does. It is a trading style that refers
to jumping in and out of the market many times a day to scalp a few people
here and a few pips there generally with little regard for placing logical stop-
losses. Scalping is generally not recommended by experienced /pro traders
because it is essentially just gambling.
Swing Trading / Position Trading: this style of trading involves taking a short to
mid-term review on the market and Traders who swing trade will be in a trade
anywhere from a few hours to several days or weeks. Swing or position Traders
are generally looking to trade with the near daily chat momentum and typically
enter anywhere from 2 to 10 trades per month, on average.
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THE MAJOR FOREX PAIRS AND THEIR NICKNAMES .
USD = IS DOLLAR
EUR/USD = “Euro”
EUR= EURO
USD/JPY = “DOLLAR YEN”
JPY= JAPANESE TEN
GBP/USD = “ Cable” or “sterling”
GBP= BRITISH POUND
USD/CHF = “ Swissy”
CHF=SWISS FRANC
CAD= CANADIAN DOLLAR
USD/CAD = “DOLLAR Canada” (CAD referred to as the “Loonie”)
AUD= AUSTRALIAN DOLLAR
AUD/USD = “ Aussie Dollar”
NZD=NEW ZEALAND DOLLAR
NZD/USD = “kiwi”
Understanding forex currency pair quotes
The exchange rate of two currencies is quoted in a pear such as the EUR/USD
or the USD/JPY.. The reason for this is because in any foreign exchange
transaction you are simultaneously buying one currency and selling another. If
you were to buy the euro USD and the Euro strengthened against the dollar
you would be in a profitable trade.
BASE AND QOUTE CURRENCY
The first currency within the pair is called the base currency. While the second
currency within the pair is called the quote currency.
An important thing to note here is that the base currency is always stronger
than the quote currency (with few exceptions and we would see why soon)
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Example 1:
USD/JPY
In this example US dollars is the BASE while Japanese Yen is the Quote,
because the USD is stronger than the Japanese yen.
Also besides each of those pairs you would see some set of numbers are
written by the side just focus on the first number for now.
Let’s take EUR/USD for example.
Euro is stronger than the US dollar.( I believe all know that).Hence is the base
while USD is the Quote.
Let me use a local scenario to give you guys an example, if you have a currency
pair between USD and Naira. I.e. USD/NGN...360. This is first telling you that
USD stronger than naira hence, USD is the base and Naira is the quote.
That number is telling you how many units of quote currency you would need
to get one unit of the base currency.
For example: EUR/USD shows 1.1262 so that is what that number by the side
always tells you. How many quote currencies do you need to get one unit of
Base currency. I believe this is clear.
Then the next important thing it’s telling you how many quote you need to get
1 unit of Base currency so in this case you would need 360 naira to be able to
get 1 US dollar. Like I said but the base is always stronger than the quote.
There are occasions in which the stronger ones are written as the second pair.
Example:
• AUD/USD = US dollar is stronger than Australian dollar
• NZD/USD = US dollars is stronger than New Zealand dollars
• EUR/GBP = Pound is stronger than Euro
You always know them because they start with zero point something written
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besides them.
Let’s take a look at USD/JPY @110.37. This is currently telling us that you
would need 110.37 Japanese Ten to be able to obtain one US Dollars. Now
when you see these few exceptions don’t bother too much about why the
weaker one is written first even though it’s quite glaring that the quote is
stronger. What you just have to do is to take note of them, it doesn’t affect
your trades, and it’s just for knowledge sake, so note them down. What we are
actually doing in forex is very simple terms just follow me hear closely if you’re
doing anything else just Focus from now onwards.
WHEN DO YOU BUY AND WHEN DO YOU SELL?
That is the big question. Well let me use this Analogy to explain what I mean.
For those of you who are not Nigerians reading this book I will be using two
names in this brief Analogy.
NAME 1: Buhari (He is the current president of Nigeria)

NAME 2: Jonathan (Former president)
Now let’s get to the analogy so as to understand in a layman’s way how far it’s
actually works. When Jonathan was in power dollar was at the time around
180 naira 220 naira let’s just take the average and say 200 naira. When Buhari
entered power some of you would recall that around 2016 at some point dollar
shut up to 500 Naira per 1 dollar.
Assuming you knew dollar would appreciate against Naira like this and you
had 2 million Naira lying Fallow in the bank account, you knew from your
experience as a forex Trader that uncertainty in government weakens a
currency pair and you used this 2 million and bought the last kept that in 2015
it would be about $10,000.
Now one year later dollar just escalates to 500 Naira per dollars and went to
the bank cash out your $10,000 and exchanged it back to Naira. It would now
yield to 5 Million Naira (remember I just stocked 2 million naira).That means
you made 3 Million Naira Profit.
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Now this is where people always get confused because those who taught them
use the wrong semantics. You buy when you know that the market would go
up while you sell when you know that the market would go down.
Now as usual I would use a local scenario to explain this topic by the time I’m
done this seemingly complex concept would look very easy to you believe me
nothing is hard in Forex.
Just tell yourself that if very young boys who are not even half as educated as
you are can do this that means you can do it too. Now ask yourself did you use
that 2 million naira to do any business, the answer is No. You practically did
nothing. What just happened right there was Forex.
You leveraged on the fluctuations in the price of dollar to naira to make

yourself money. Without doing anything you just said at home well the foreign
exchange market did the job for you. This is just raw analogy, because in forex
market it’s even more interesting you don’t have to wait for one year or
months to make money.
These currencies are constantly fluctuating in minutes(what I usually refer to
as volatility), so it still opportunities caused by these fluctuations in the price of
one currency with respect to another that forex traders make their money
from. Because they happen daily that’s why banks would never allow you to
learn Forex. They prefer you come to the bank and fix the money for
menagerie interest rate.
This is basically what we doing Forex. This is not the normal market in Oshodi
or Idumota or Accra mall that you buy and sell clothes. For some that would
ask what are you buying and selling. So in summary we have seen that we buy
when we know a currency pair would rise and we sell when we know a
currency pair with fall. The big question is how do we know when it would rise
and when it will fall? Later on in this book you will understand what I mean by
you knowing when to Buy or sell.
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CONCEPT OF BID AND ASK PRICE
Bid price- The bid is the price at which the market or your broker will buy a
specific currency pair from you. Does at the bid price at 3 the can sell the base
currency to their broker.
Ask price- the ask price is the price at which the market or your broker will sell
a specific currency pair to you. Was at the ask price you can buy the base
currency from your broker.
Bid/ Ask spread- the spread of a currency pair varies between brokers and it is
the difference between the bid and ask price.
FORMS OF TRADING ORDERS
The term order refers to how you will enter or exit a trade.
Here we discuss the different types of orders that can be placed in the forex
market. Be sure that you know which types of or does your broker accept.
Different brokers accept different types of forex orders.
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Order types
There are some basic order types that all brokers provide and some others that
sound weird.
Others fall into two buckets:
1. Market order: an order instantly executed against the price that you’re
broke is provided.
2. Pending order: in order to be executed at a later time at the price you

specify.
Here’s a quick map of the different types of orders within each bucket.
(Market orders)
• Buy
• Sell
(Pending orders)
• Buy limit
• Buy stop
• Sell limit
• Sell stop
A market order is an order to buy or sell at the best available price.

For example the bid price of euro USD is currently at 1.2140 and they ask
prices at 1.2142.
If you wanted to buy euro USD at the market then it would be so to you at the
price of 1.2142.
You would click buy and your trading platform would instantly execute the buy
order at that exact price. If you ever shop on amazon.com , it’s kinda like using
their 1-click ordering. You like the current price you click once and it’s yours.
The only difference is you are buying or selling one currency against another
currency instead of buying Jay-Z CD. Please keep in mind that depending on
market conditions there may be a difference between the price you selected
and the final price that is executed on your trading platform.
Limit order
A limit order is an order placed to either buy below the market or sell above
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the market at a certain price. There is an order to buy or sell once the market
the richest that limit price.
• You place a buy limit order to buy at or below a specific price.
• You place a sell limit order to sell at a specific price or better.
Once the market reaches the limit price the order is triggered and executed at
the limit price or better.
For example EUR/USD is currently trading at 1.2050. You want to go short if
the price reaches 1.2070. You can either sit in front of your phone or laptop
and wait for it to hit 1.2070 at which you would click a sell market order or you
can set a sell limit order at 1.20 70 then you could walk away from your
computer to attend your personal things. If the price goes up to 1.2 0-70 your
platform will automatically execute a sell order at the best available price.
You use this type of entry order when you believe the price will reverse upon
hitting the price you specified.
A limit order to buy at a price below the current market price will be executed
at a price equal to or less than the specified price. A limit order to sell at a price
above the current market price will be executed at a price equal to or more
than the specific price.
Stop entry order
A stop order stops and order from executing until price reaches a stock price.
You would use a stop order when you want to buy only after price rises to the
stock price or sell only after the price falls to the stock price. A stop entry order
is an order place to buy above the market or sell below the bucket at a certain
price.
• You place a buy stop order to buy at a price above the market price full stop
and it is triggered when the market price touches or goes through the buy stop
price
• You place a sell stop order to sell when a specified price is reached.
For example GBPUSD is currently trading at 1.5050 and is heading upwards.
You believe that Christ will continue in this Direction if it hit 1.5060. You can do
one of the following to play this belief.
• Sit in front of your computer and buy the market when it hits 1.5060 or
• Set a stop entry order at 1.5060
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Stop loss order

In order to close out if the market price reaches a specific price which may
represent a loss or profit. A stop loss order is a type of order linked to a trade
for the purpose of preventing additional losses if the price goes against you. If
you are in a long position it is a sell stop order. If you are in a short position it is
a buy stop order.
Remember this type of order
A stop loss order remains in effect if until the position is liquidated or you can’t
tell the stop loss order for example you won’t be long (buy) on EURUSD at
1.2230. To limit your maximum loss you set a stop loss order at 1. 2200. This
means if you’re dead wrong and EUR/USD drops at 1.2200 instead of moving
up your trading platform will automatically execute a sell order at 1.200 the
best available price and close out the position for a 30 pip loss.
Stop losses are extremely useful if you don’t want to sit in front of your
computer all day worried that you will lose all your money. You can simply set
a stop loss order on any open positions so you won’t miss your basket weaving
class or elephant polo game.
Trailing stop
A stop loss order which is always attached to an open position and which
automatically moves want prophet becomes equal 2 or higher than a level you
specify. A trailing stop is a type of stop loss order attached to a trade that
moves as the price fluctuates.
Let’s say that you’ve decided to short USDJPY at 90.80 with a trailing stop of
20pips. This means that originally a stop loss is at 9 1.00 full stop if the price
goes down and hits 90.60 , your trailer stop would move down to 90.80 or
break even.
Just remember though that your stop will stay at this new price level. It will not
widen if the market goes higher against you. Going back to the example with a
trailing stop of 20 Pips if USDJPY hits 90.40, then your stop would move to
90.60 or lock in 20 pips profit.
Your trade will remain open as long as the price does not move against you by
20pips. Once the market price hit your trailing stop price and my market
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order to close your position at the best available price will be sent and your
position will be closed.
LIMIT ORDERS VS STOP ORDERS
New Traders often confuse limit orders with stop orders because both specify
a price. Both types of others allow Traders to tell their brokers at which price
they’re willing to trade in the future. The difference lies in the purpose of the
specified price. A stop order activates and order when the price reaches or
passes a specified stock price.
For example you know used is trading at 1 1000 you have a stop entry order to
buy at one point 10 10. Once the price reaches 1.1010 your order will be
executed. But it doesn’t necessarily mean that your order was filled at 1.101p.
If the market was moving fast you might have been filled at 1.1011.
Basically your order can get filled at the stop price. Worse than the stop price
or even better than the stop price. It all depends on how much prices
fluctuating when the market price reaches the stop price.
Think of a stop price simply as a threshold for your order to execute. At what
exact price that your order will be filled at depends on market conditions.
A limit order can only be executed at a price equal to or better than a specified
limit price.
For example euro USD trading at the 1. 1000 you have a limit and three order
to buy at 1.1009. Your order will be filled unless you can get field at 1.00 8 or
better. Think of a limit price as a price guarantee full stop by setting a limit
order you are guaranteed that you are the only gets executed at your limit
price or better. The catch is that the market price may never reach your limit
price so your order never execute.
In the previous example EURUSD may only fall down at 1.1009 before
skyrocketing.
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Even though you wanted to go long EURUSD your order was never executed
since you were trying to enter a long position at a cheaper price. You what you
use the rise without you. This is the trade-off when using a limit order instead
of a market order.
EXPLAINING FOREX LOT
Forex is commonly traded in specific amounts called lots or basically the

number of currency units you will buy or sell. The standard size for a lot is
100.000 units of currency and now there are also mini, micro and Nano lot
sizes that are 10.000, 1.000 and 100 units.
LOT Number of Units

Standard 100, 00
Mini 10,000
Micro 1,000
Nano 100
Some brokers show quantity in lots while other brokers show the actual
currency units. As you may already know the change in a currency value
relative to another is measured in Pips which is a very small percentage of a
unit of currencies value. To take advantage of this minute change in value you
need to trade large amounts of a particular currency in order to see any
significant profit or loss.
Let's assume we will be using a 100.00 0 unit standard lot size. We will now
recalculate some examples to see how it affect the pip value.
1) USD/JPY at an exchange rate of 119.80 (.01 / 119.80) × 100,000= $8.34 per

pip.
2) USD/CHF at an exchange rate of 1.4555: ( .0001 /1.4555) × 100,000 = $6.87
per pip
In cases where the US dollar is not quoted first the formula slightly different.
1) EUR/USD at an exchange rate of 1.1930: (.0001/ 1.1930) ×100,000 = 8.38 ×
1.1930 = $9.99734 rounded up will be $10 per pip
2) GBP/USD at an exchange rate of 1.8040: (.0001/ 1.8040) × 100,000 = 5.54
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×1.8040 =9.99416 rounded up will be $10 per pip

Here is some example.
EURUSD = CLOSE PRICE (Any) = STANDARD LOT ($10)= MINI LOT ($1)=MICRO
($0.01) = MANO LOT ($0.01)
Your broker may have a different convention for calculating pip values relative
to lot size but whatever way they do it will be able to tell you what the people
value is for the current currency you are trading at that particular time.
In other words, they do all the math calculations for you. As the market moves
so will the pip value depending on what currency you are currently trading
HOW TO KNOW WHEN TO BUY OR SELL
Forex trading involves trying to predict which currency will rise or fall versus
another currency .How do you know when to Buy or sell a currency pair?
In the following examples, we are going to use a little fundamental analysis to
help us decide whether to Buy or sell a specific currency pair.
The supply and demand for a currency changes due to various economic
factors, which drives currency exchange rates up and down.
Each currency belongs to a country (or region). So Forex fundamental analysis

focused on the overall state of the country’s economy, such as productivity,
employment, manufacturing, international trade and interest rate.
In this example thee Euro is the bad currency and thus the “basis” for the
buy/sell. If you believe that the U.S. economy will continue to weaken, which is
bad for the U.S. dollar, you would execute a BUY EURUSD order. By doing so,
you have bought euros in the expectation that it will rid versus the US dollar
if you believe that the US economy is strong and the Euro will weaken
against the US dollar. If you believe that the U.S. economy is strong and the
Euro will weaken against the U.S dollar, you would execute a SELL EURUSD
order. By doing so you have sold euros in the expectation that it will fall versus
the US dollar.
USD/JPY
In this example, the US DOLLAR is the bad currency and thus the “basis” for the
buy/sell.
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If you think that the Japanese government is going to weaken the yen in order
to help its export industry, you would execute a BUY USD/JPY order. By doing
so you have bought U.S dollars in the expectation that it will rise versus the
Japanese yen. If you believe that Japanese investors are pulling money out of
U.S financial markets and converting all their U.S dollar, you would execute a
SELL USD/JPY order. By doing so you have sold U.S dollars in the expectation
that will depreciate against the Japanese ten.
EXPLAINING THE INDICATORS
In this chapter I am only going to explain the most used indicators as some may
be more confusing to you.
(TREND)
1) Moving Average
In short (MA). This is a technical analysis indicator that helps smooth out price
action by filtering out the noise from random price fluctuation.
Exponential Moving Average (EMA) – The exponential moving average is a

weighted moving average (WMA) that gives more weighting, or importance to
recent price data than simple moving average (SMA) does. The EMA responds
more quickly to recent price changes than SMA.
Simple Moving Average- is an arithmetic moving average calculated by adding

recent price and then dividing that by the number of time periods in the
calculating. Short term averages respond quickly to changes in price of the
underlying while long term averages are slower to react.
Smoothed Moving Average-Is a moving average that deals with a longer

period, allowing for an easier price calculation and viewing and represents the
combination of simple moving average and exponential moving average.
Linear weight Moving Average- is a method of calculating the average price of

and asset over a given period of time. This method weights recent data more
heavily than older data and is used to analyse market trends.
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The strategy used mostly using these moving average is that ,most of the times
they would take to or more MA’s with different variables causing them to
sometimes cross each other giving you a signal while they cross to that specific
direction or they will move showing you the current market trend .
2) BOLLINGER BANDS- is a technical analysis tool defined by a set of trend lines

plotted two standard deviations (positively and negatively) away from a simple
moving average (SMA) of a security price but which can be adjusted to user
preference. So this is how it works, Bollinger Bands is meant to keep price
within the bands, it moves with the market trend.
The strategy used , using Bollinger bands is that when the market moves out of
the bands, you wait for a reversal candle stick to form . For instance if price
closes outside the Bollinger bands you wait for one candlestick to close back
inside the bands , it can be an engulfing candlestick ,signalling a reversal or any
other types of reversal candlestick.(Reversal candlesticks will be covered later
on in the book.
3) ENVELOPES
4) ICHIMOKU KINKO HYO- is an indicator that gauges future price momentum

and determines future areas of support and resistance. Now that’s 3 in 1 for
you.
5) PARABOLIC SAR- Used to determine the direction that an asset is moving.

The indicator is also referred to as a stop and reverse system, which
abbreviated as SAR. It aims to identify potential reversals in the price
movement of traded assets.
The Strategy used using parabolic sar, using the H4 (4 hour chart),when you
see 4 to five dots forming close to each other prior to the opposite direction,
you wait for 2 to 3 dots to form apart from each other then you enter to that
direction. You will the take profit when you see a dot appearing above or
below in an opposite direction. The more the dots are apart from each other
they indicate a strong trend. Then they a very close to each other they indicate
no clear movement.
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6) STANDARD DIVIATION
(OSCILLATORS)
1. AVARAGE TRUE RANGE- is a technical analysis indicator that measures

market volatility by decomposing the entire range of an asset price for
that period. Specifically ATR is a measure of volatility introduced by
market technician.
2. BEARS POWER- by contrast is the capacity of bears to push prices below
the average. The distance between the low and the EMA, which widens
when the bears are weaker and narrows when they are stronger.
3. BULLS POWER- measures the capability of buyers in the market, to lift
prices above an average consensus of value. Bears Power measures the
capability of sellers, to drag prices below an average consensus of value.
4. COMMODITY CHANNEL INDEX (CCI) – is a momentum based oscillator

used to help determine when an investment is reaching a condition of
being overbought or oversold. It is also used to assess price trend
direction and strength.
The strategy used her is to check where the CCI is .whether it’s at the
bottom meaning it oversold and we’ll be looking for BUY’s or if it’s at the
Top meaning its overbought we will be looking for SELL’s . Depending on
the variables you’ve added to set you CCI. You will learn more about the
CCI and how to actually use it later on in this course, these are the perks
of joining ADEX&BRYTE FX institute. Let’s move on..
5. DEMAKER
6. FORCE INDEX
7. MACD – Moving Average Convergence Divergence is a trend following
momentum indicator that shows the relationship between two moving
averages of a security’s price. The MACD is calculated by subtracting the
26-period Exponential Moving Average (EMA) from the 12-period.
The most common strategy used with this indicator is the DIVERGENCE
strategy. I do not know if you will be able to catch this as I explain, but
take it slow as I move. Let us say the market is forming an M (M-
FORMATION) but the first leg of the M is higher than the second one,
which means you will draw your line from the first leg up going down.
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However the MACD will show the opposite, if you try and draw a line on
the MACD in alignment with the M-formation you will notice the trend is
actually starting from the bottom going up, as if the 1st leg of the M is
shorter than the 2nd leg. That is called divergence
8. MOMENTUM- is a comparison between the current closing price and a

closing price. The momentum indicator can be used to provide trade
signals but it is better used to help forex traders confirm the validity of
trades based on price action such as breakouts or pullbacks.
9. MOVING AVERAGE OF ASCILLATOR
10.RELATIVE STREGTH INDEX (RSI)-is most commonly used to indicate
temporarily overbought or oversold conditions in a market. An intraday
forex trading strategy can be devised to take advantage of indicators
from the RSI that a market is overextended and therefore likely to
replace.
The default settings of an RSI is period 14 with 70 and 30 levels. 70
indicating overbought and 30 indicating oversold. The rule is when the
market is overbought you look for a sell and when it is oversold you look
for a buy. Now The RSI can be used in many different forms. You can
however change the levels or add more levels to it for instance , 10,
50,90 .Meaning when the RSI is at level 30 going down you can wait for
it to reach level 10 showing you a strong level of an oversold market .
This is just an example, you will learn more about the RSI later on in the
stage, however bear in mind that the RSI is the most common indicator
used among traders.
11.RELATIVE VIGOR INDEX

12.STOCHASTIC OSCILLATOR
13.WILLIAM'S PERCENT RANGE
(VOLUMES)
These are indicators that accounts for the volume. Volume means number of
ticks (price changes) that appeared in the time interval.
1) ACCUMULATION/DISTRIBUTION
2) MONEY FLOW INDEX
3) ON BALANCE
4) VOLUMES
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(BILL WILLIAMS)
1) ACCELERATOR OSCILLATOR
2) ALLIGATOR
3) AWESOME OSCILLATOR
4) FRACTALS- Are indicators on candlesticks charts that identify reversal points

in the market. Traders often use fractals to get an idea about the direction in
which the price will develop. A fractal will form when a particular price pattern
happens on a chart.
5) GATOR OSCILLATOR
6) MARKET FACILITATION INDEX
(THECHNICAL TOOLS)
(LINES)
VERTICAL LINE – An indicator tool that is a straight line matched the time and
date of where you place it.
HORIZONTAL LINE- It is a line used to spot support and resistance levels.
TRENDLINE- Used to draw the market trend.
(CHANNELS)
FIBONACCI
Retracement level: 38.2% - Fast and aggressive pullback bounce.
Retracement level: 50% - Medium pullback bounce.
Retracement level: 61.8% - Golden Number pullback bounce.
Retracement level: 78.6% - Stop-loss level to be placed –10 PIPs.
Extension levels: -61.8% + -27% - Target area for trend continuation.
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Bullish & Bearish Fibonacci wave example: The Fibonacci should be drawn from
a significant low point (FIB A) and dragged up towards the next significant high
(FIB B). These significant pints are defined by candlestick formations at levels
of support/ resistance, once satisfied with the A-B wave the Fibonacci, pull the
tool over to the right hand side to allow P.A to play out.
(SHAPES)
RECTANGLE- These can be used to highlight the market key levels. Can use
different colours.
TRIANGLE- These can be used to highlight market patterns.
ELIPSE- Can be used to highlight market patterns as well as key points for your
analysis.
TIMEFRAMES
Monthly Chart (MN)- A new candlestick is formed after every a month

Weekly Chart (W) -A new candlestick is formed after every a week
Daily chart (D1)- A new candlestick is formed after every 1 day
4 Hour Chart (H4)- A new candlestick is formed after every 4 hours
2 Hour Chart (H2)- A new candlestick is formed after every 2 hours
1 Hour Chart (H1)- A new candlestick is formed after every 1 hour
30 Minutes Chart (M30) -A new candlestick is formed after every 30minutes
15 Minutes Chart (M15)- A new candlestick is formed after every 15minutes
5 Minutes Chart (M5) – A new candlestick is formed after every 5 minutes
1 Minute Chart (M1) – A new candlestick is formed after every minute.
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WHAT IS SUPPORT AND RESISTANCE
Support also known as supply/floor- this happens when the falling price stops
then changes direction, and begins to rise. When we say price is at a support
level we simply mean that price is respecting that level/Zone and it is bouncing
back up.
Resistance also known as Demand/ Ceiling- this is when the rising price stops
then changes direction and begin to fall. When we say price is at a resistance
level we simply mean that price is respecting that zone and it is bouncing back
down.
In simple terms Support and Resistance is where price is coming from and
going to.
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CANDLESTICK ANALYSIS
Various forms of the ‘DOJI’: Doji candlesticks have the same open and closing
price or at least their bodies are extremely short. A Doji should have a small
body that appears as a thin line. Doji candles suggest indecision or a struggle
for turf positioning between buyers and sellers. Prices move above and below
the open price during the timeframe session but close at or very near to the
open price.
Neither buyers or sellers were able to gain control with a result that is
essentially a draw between the bulls and the bears. There are four special
types of Doji candlesticks. The length of the upper and lower shadows can vary
and the resulting candlestick gives a formation similar to a cross, inverted cross
or plus sign.
The word ‘Doji’ refers to both the singular and plural form. When a Doji forms
on your chart, ensure special attention is given to the preceding candlesticks.
Doji candlestick pattern is one of the most important candlestick patterns.
Representing the equilibrium between supply and demand in the markets, it is
a clear trend reversal signal. Communicating the prices open and close at or
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near the same level, candlestick Doji indicates indecision of investors. It is

therefore very important to recognize Doji. If the Doji makes appearance after
a long uptrend, it is a warning to investors that the trend is either close to
peaking, or has already peaked in the open markets. But if it is visible after a
long downtrend, it means that the prices have been forced down.
Dragonfly Doji: This type of Doji pattern forms when the open, high, and close
are equal, and the low creates a long lower shadow. Dragonfly Doji indicates
that sellers moved the prices lower during the session, but by the end of the
session the buyers pushed the prices back to the opening level and the session
high. Looking like a “T” with a long lower shadow and no upper shadow, it is
important to understand the Dragonfly Doji pattern.
Gravestone Doji: This candlestick Doji is a similar opposite of the dragonfly,

forming an upside down “T.” Having a long upper shadow and no lower
shadow, it forms when the open, low and close are equal in Gravestone Doji.
The high is what creates the long upper shadow. This Gravestone Doji
candlestick pattern shows that the buyers pushed the prices higher during the
session, and by the end of the session, the sellers moved the prices back down
to the opening level
Four Price Doji: Four Price Doji formation identified when the length of the
candlestick body is equal to or not or very short, there is no upper shadow (if
available then its size is very short) and there is no lower shadow (if available
then its size is very short). Although Doji patterns like this are rare enough, but
this pattern clearly reflects the total hesitancy condition and uncertainty that is
happening in the market that gives rise to the potential for the direction of
trend reversal, normally found on low timeframes.
The Spinning Top: The candlestick with a long upper shadow/wick, long lower
shadow/wick and small real bodies are called ‘spinning tops’. The colour of the
real body is not very important as this pattern simply indicates the indecision
between the buyers and sellers, bulls and the bears. The small real body
(whether green or red) shows little movement from open to close and the
shadows/wicks indicate that both buyers and sellers, bulls and bears were
fighting but neither gained the upper hand. Even though the session opened
and closed with little change, prices moved significantly higher and lower in
the meantime. If a spinning top or even a series of spinning tops formed during
an uptrend, this usually means there are not many buyers left and a possible
reversal in direction could occur. If a spinning top or series of spinning tops
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formed during a downtrend, this usually means there are not many sellers left
and a possible reversal in direction could occur
The Hanging Man: The Hanging man is bearish candlestick pattern that forms
at the end of an uptrend. It is created when there is a significant sell-off near
the market highs, but buyers are able to push the currency pair back up so that
it closes at or near the opening price. Generally the large sell-off is seen as an
early indication that the bulls (buyers) are losing control.
As mentioned, this formation is bearish if they occur after a significant uptrend

but this pattern occurs after a significant downtrend it is called a Hammer.
They are identified by small red bodies (small range between opening and
closing prices) and a long lower shadow (the low was significantly lower than
the open, high and close) The Hanging man has little to no higher shadow/wick
and has a lower shadow/wick which is at least two times as long as the body of
the candle. Unlike the hammer, the lower shadow/wick which constructs the
bottom half of the candle indicates selling pressure.
An excellent price action trade setup is when the formation is established at a

point of resistance. Step 1 is simply highlighting the hanging man candlestick
formation with the rectangle tool ensuring the highest degree of accuracy at
the top wick and bottom wick, extending the box over to the right hand side
(allowing price to play out). This becomes the setup chart and you will then
have to step down to the next timeframe and follow the execution rules.
The Hammer (also known as a Pin bar): The Hammer and Hanging man look
exactly alike but have totally different meanings depending on past price
action. Both have cute little bodies (green or red), long lower shadows/wicks
and short or absent upper shadows/wicks. The Hammer is basically a bullish
reversal pattern that forms at the end of a downtrend. It is named a Hammer
because the market is ‘hammering’ out a bottom. When price is falling, a
hammer signals that the bottom is near and price will start to rise again. The
long lower shadow/wick indicates that sellers pushed the price lower but
buyers were still able to overcome this selling pressure and closed relatively
near the open price. As a word of caution, when you see a hammer it does not
necessarily mean that that you should go and place a buy order. One will need
more bullish confirmation to do so. Use the hammer signal as a warning, a
potential upside reversal. How to recognize a Hammer, the Japanese
candlestick reversal pattern? It is fairly easy. The long shadow is about two or
three times of the real body. There is little or no upper shadow. The real body
is at the upper end of the trading range and the colour of the real body is not
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too important but a real body is not too important but a green hammer gives
stronger confirmation.
The shooting Star: The Shooting formation is created when the open, low, and
close are roughly the same price. Also, there is a long upper shadow/wick,
generally defined as at least twice the length of the real body. When the low
and the close are the same, a bearish Shooting Star candlestick is formed and it
is considered a stronger formation because the bears were able to reject the
bulls completely plus the bears were able to push prices even more by closing
below the opening price. The long upper shadow of the Shooting Star implies
that the market tested to find where resistance and supply was located. When
the market found the area of resistance or the highs of the day, bears began to
push prices lower, closing the candle near the opening price. Thus, the bullish
advance upward was rejected by the bears. Ultimately, a Shooting Star candle
indicates that the prior uptrend is about to end and may reverse into a
downtrend or move sideways and into a period of consolidation. This
formation is an excellent trade signal upon the high test of a resistance level by
the shadow/wick.
The Marubozu: The Marubozu candles have no shadows/wicks attached to the

closing price of their bodies. Depending on whether the candlesticks body is
green or red (bullish or bearish), the high/ low is in fact the same as its open
and close price. The green/bullish Marubozu consists of a long green body with
no shadows/wicks at the closing price (TOP). It is seen as a very bullish candle
as it indicates that buyers were in control for the length of the candlesticks
timeframe. It usually becomes the first part of a bullish continuation move or a
bullish reversal pattern. The red/bearish Marubozu on the other hand consist
of a long red body with no shadows/wicks at the closing price (BOTTOM). This
is a very bearish candle as it indicates that sellers dominated price action
throughout the whole candles timeframe, usually implies bearish continuation
or bearish reversal. The larger the timeframe, the stronger the bullish/bearish
Marubozu move. The recommended timeframes are the weekly & daily as
these give a strong indication that further momentum is expected in the
specific direction in which the Marubozu candle is formed
Bullish Engulfing Formation: A Bullish Engulfing pattern usually occurs at the

bottom of a downtrend or consolidation range at levels of support. It forms
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when a small red candlestick is followed by a large green candlestick that

completely ‘engulfs’ the body of the previous candlestick. The Bullish Engulfing
pattern indicates a change in sentiment from a bearish decline, to a large
green body candle that advances and closes at the highs of the previous
candle. Buyers step in after the open and take control of the market.
Generally, the greater the engulfing, the more bullish the reversal. Large
volume during the period in which the green candle forms, is an important
confirmation of the short-term reversal.
Bearish Engulfing formation: A Bearish Engulfing pattern usually occurs at the

top of a downtrend or consolidation range at levels of resistance. It forms
when a small black candlestick is followed by a large white candlestick that
completely “engulfs” the body of the previous day’s candlestick. The Bearish
Engulfing pattern indicates a change in sentiment from a bullish advancement,
to a large red body candle that closes at the lows of the previous candle.
Sellers take control after the open and dominate price action. Generally, the
greater the engulfing, the more bearish the reversal. Large volume during the
period in which the red candle forms, is an important confirmation of the
short-term reversal.
CONCLUSION
As mentioned in the candlestick patterns introduction, there are many more

formations other than the ones highlighted in this section. We have condensed
the most useful and the ones which hold the highest probability as a trade
setup for you to utilise in the most effective way when trading the market.
Remember that these candlestick formations are even more effective when
combined with the other technical phases. You will have to use your initiative
when combining them with chart patterns, Fibonacci, support and resistance
etc. and your success will be measured upon your chart time practice
(especially logging what you see in the market, saving the before and after
shots of your possible trade entries and so forth). It is also important to note
that candlestick formations play an important role in knowing when to exit a
trade also. Learn, learn and learn! With repetition and dedication it will get
easier over time as you progress and memorise the candlestick patterns.
40
CHART PATTERNS
We have different types of chart patterns. Reversal patterns are those chart
formations that signal that the ongoing trend is about to change course. If a
reversal chart forms during an uptrend, it hints that the trend will reverse and
that the price will head down soon.
Conversely, if a reversal chat is seen during a downtrend, it suggests that the

price will move later on.
In this lesson, we covered six chart patterns that give reversal signals.
1. Double top
2. Double bottom
3. Head and Shoulders
4. Inverse Head and Shoulders
5. Rising Wedge
6. Falling Wedge
This is how you trade this chart patterns simply place an order beyond the
neckline and in the direction of the new trend. Then go for a tire that’s almost
the same as the height of that formation full stop for instance if you see a
double bottom place a long order at the top of the formations neckline and go
for a target that’s just high as the distance from the bottoms to the neckline. In
the interest of proper risk management don’t forget to place your stops. A
reasonable stop loss can be set around the middle of the chart formation. For
example you can measure the distance of the double bottoms from the
neckline divided that by 2 and use that as the size of your stop.
Continuation chart patterns
Continuation chart patterns are those chart formations that signal that
ongoing trend will resume. Usually these are also known as consolidation
patterns because they show how buyers or sellers take a quick break before
moving further in the same direction as the prior trend. Trend don’t usually
move in a straight line higher or lower. They pass and move sideways,
“correct” lower or higher and they regain momentum to continue the overall
trend.
1. Wedges
41
2. Rectangles
3. Pennants.
Note that wages can be considered either reversal or continuation patterns

depending on the trend on which they form. To trade these patents simply
place and all the above or below the formation (following the
direction of the ongoing trend of course). Then go for a tiger that at least the
size of the chart pattern for wedges and rectangles. For Pennant you can aim
higher and target the height of the Pennants mast.
For continuation patents stops are usually placed above or below the actual
chart formation. For example when trading a bearish rectangle place your stop
a few pips above the stop or resistance of the rectangle.
CHECK DIFFERENT TYPES OF CHART PATTERNS ON THE INTERNET.
THE RULES OF RISK MANAGEMENT
Each trade carries with it a certain level of risk and prior to entering a trade
you must be aware of the amount of risk that is involved in that particular
trade. Risk is a highly important aspect to trading; knowing the amount of risk
on each trade is one way to limit and protect your capital. Risk to reward ratio
is one of the most effective risk management tools in determining the amount
of risk involved in a trade.
This calculation/parameter indicates how much you are risking in comparison

to the potential reward (or profit). Whilst this may seem simplistic, many
traders ignore taking this step resulting in large losses and small wins. How to
Determine the Risk-Reward Ratio? The first and foremost basic step is to
determine and decide the amount of risk you wish to place.
This should be determined by your account size, between 1-3% of your

account size is what we strongly suggest. If account is 10,000USD this means
each risk (potential loss) should not exceed 100-300USD.
For example: -If you have an account of $1000, $30 would be your 3%
risk/drawdown. A good risk reward would be 1:3, Risking 3% to gain 9% -With
42
a $1000 account you would be risking $30 to gain $90 so, say you have a valid
setup which requires a 30 PIP stop loss.
To work out what lot size is relevant you would do the following: $30 (3% risk
amount) Divided by 30 (stop loss) = 1 per pip. Risk amount in $ /£ divided by
stop loss size = the correct lot size to stick within parameters. Another
example: -Your account size is $5690; You want to only risk 2% this time as you
are being more conservative. 2% risk is $113.80. The required stop loss is 55
PIPs. $113.80 (2% risk amount) Divided by 55 (stop loss) = $2.06 per PIP
HOW TO OPEN AN ACCOUNT USING YOUR SMARTPHONE OR PC
Step 1: Go to your Google App store, type in MT4 or MT5, click download. (On
your phone)
(On your PC, search the broker followed by “download mt4 for pc, it will
redirect you to the relevant place then click download.)
Step 2: Find a broker of your choice e.g. hot forex. Go to your browser and
search ‘open an account with Hot forex / any broker.
Step 3: Enter your real personal details. Once you are done you will receive an
email.
Step 4: Take the login and password details. (Likely to be written like Hot forex
real-server 2, login 2349597, and password: ths579R0)
Step 5: On your MT4 click on the “+” sign, Go to “login to an existing Account”
Step 6: search the broker the way it is on the email “Hot forex real-server 2”
Step 7: click on it then enter your passwords and login details then click login.
Your account is up and running. FOR FUTHER DETAILS IF YOU DON’T
UNDERSTAND, A VIDEO WILL BE SENT TO YOU ON HOW TO ACTUALLY OPEN
AN ACCOUNT.
43
44

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KILL THE MARKET DAILY

Copyright © 2020 Adex&Brytefx

Adex&Bryte fx is a financial institution that offers candidates an opportunity to

TWO TYPES OF TRADING Page 13-16

UNDERSTANDING FOREX CURRENCY PAIRS QUOTES Page 18-20

WHAT IS SUPPORT AND RESISTANCE Page 35

CHART PATTERNS Page 41-42

CHARACTERISTICS NEEDED TO BECOME A SUCCESSFUL TRADER

 ABILITY – To take a loss without becoming emotional.

LESSON 1- WHAT IS FOREX

WHAT IS TRADED IN THE FOREX MARKE T

WHO IS THE FOREX BROKER

TERMS USED BY BROKERS AND RETAIL TRADER

TRADING TIMES AND TRADING SESSION

• ASIAN SESSION – Also known as the Asian consolidation session

TERMINOLOGIES USED IN FOREX

SHORT-when we go short it means we are SELLING the market and so we want

BULLS – The Buyers are referred to as BULLS

• RANGING- a market is said to be ranging if it does not have any particular

TWO TYPES OF TRADING

TECHNICAL ANALYSIS VS FUNDEMENTAL ANALYSIS

Technical trading or technical analysis involves analysis of a markets price chart

Fundamental trading or news trading is a trading technique would learn as we

The data released includes:

1) Non-farm payroll increase

2) Unemployment rate of the US

NFP is released every FIRST FRIDAY OF THE MONTH by 8:30am EST

Also the US government has an amount of money paid to the unemployed.

5) Then lastly the data includes a revision of previous non-farm payroll.

THE MAJOR FOREX PAIRS AND THEIR NICKNAMES .

Understanding forex currency pair quotes

BASE AND QOUTE CURRENCY

WHEN DO YOU BUY AND WHEN DO YOU SELL?

NAME 1: Buhari (He is the current president of Nigeria)

You leveraged on the fluctuations in the price of dollar to naira to make

CONCEPT OF BID AND ASK PRICE

FORMS OF TRADING ORDERS

2. Pending order: in order to be executed at a later time at the price you

A market order is an order to buy or sell at the best available price.

Stop loss order

LIMIT ORDERS VS STOP ORDERS

EXPLAINING FOREX LOT

Forex is commonly traded in specific amounts called lots or basically the

LOT Number of Units

1) USD/JPY at an exchange rate of 119.80 (.01 / 119.80) × 100,000= $8.34 per

×1.8040 =9.99416 rounded up will be $10 per pip

HOW TO KNOW WHEN TO BUY OR SELL

Each currency belongs to a country (or region). So Forex fundamental analysis

EXPLAINING THE INDICATORS

Exponential Moving Average (EMA) – The exponential moving average is a

Simple Moving Average- is an arithmetic moving average calculated by adding

Smoothed Moving Average-Is a moving average that deals with a longer

Linear weight Moving Average- is a method of calculating the average price of

2) BOLLINGER BANDS- is a technical analysis tool defined by a set of trend lines

4) ICHIMOKU KINKO HYO- is an indicator that gauges future price momentum

5) PARABOLIC SAR- Used to determine the direction that an asset is moving.

1. AVARAGE TRUE RANGE- is a technical analysis indicator that measures

4. COMMODITY CHANNEL INDEX (CCI) – is a momentum based oscillator

8. MOMENTUM- is a comparison between the current closing price and a

11.RELATIVE VIGOR INDEX

4) FRACTALS- Are indicators on candlesticks charts that identify reversal points

Retracement level: 38.2% - Fast and aggressive pullback bounce.

Retracement level: 50% - Medium pullback bounce.