FIRST EDDITION
THE LOST
INTRODUCTION TO FOREX TRADING
HIGH PROBABILITY TRADING SETUPS
FREDERICK MUEZE
FIND HIGH PROBABILITY TRADING SETUPS
This guide is for ambitious forex traders who are
eager to increase their trading skills and make
unlimited profits immediately.
In this guide we will discuss the basics of forex
trading together with the trading setups that no one
talks about out there.
I would like to wish you guys a good trading
journey, hence this guide will provide you with the
best trading setups and secretes to the tachnical
drawing tools and the indicators based on their
trading usage and the strategies onhow to use the
mtogether with market structure.
FIND HIGH PROBABILITY TRADING SETUPS
DEDICATION
This guide is dedicated to all the traders in their skill
level, either beginner or eperienced traders out there,
specifically the technical traders, but not to exclude
the fundamentalists, you guys are also welcome to
follow through this guide. I'm not here to exhaust
you with many pages to read, this guide only
contains <<no of pages>> pages.
Please do not skip anything in this guide, read
through every single word.
FIND HIGH PROBABILITY TRADING SETUPS
This guide was developed with an aim to help most
of the beginner traders who are all over the place to
get the right information about the trading strategies
and setups of the forex market, but the bad part of it
is that the information they find only scratches the
surface level.
This is designed to give you all the relevant
information that takes you one step closer to making
consistant profits in the forex trading market.
FIND HIGH PROBABILITY TRADING SETUPS
WHAT MOVES THE MARKET
Alot of traders they don't have any idea of what
moves the financial markets. They think is because
of the number of sellers and buyers active in the
market(s). That is totally wrong and today I want to
tell you that the markets moe because of the
confluence of the buying and selling pressure. This
will make sense as we proceed!
When building a house, a house plan is needed, so
trading the forex market you also need a plan. There
is only one driving force behind the odds that makes
forex trading so difficult, and that is opening your
charting/ trading platform (MetaTrader) and not
knowing what exactly you looking for.
The forex market has it's own way of moving, no
one can predict where the price will go next. No one
is controlling the markets.
FIND HIGH PROBABILITY TRADING SETUPS
MARKET STRUCTURE
You need to understand the market structure of the
market and that is reading the bulll and the bear
candles first.
BEAR CANDLE
UPPER SHADOW
Bull candles are usually
.............
CLOSE denoted by white or green
color, otherwise you can
REAL
BODY
always change the colors as
long as you don't get
............. OPEN confused, thats perfectly
fine.
LOWER SHADOW
LOGIC BEHIND BULL CANDLE
The bull candle opens low and closes high,
and when the next bullish candle forms, it
repeats the pattern of opening low and closing
high and hence a series (pack) of bullish
candles takes the price higher.
FIND HIGH PROBABILITY TRADING SETUPS
MARKET STRUCTURE
You need to understand the market structure of the
market and that is reading the bulll and the bear
candles first.
BEAR CANDLE
UPPER SHADOW
Bear candles are usually
.............
OPEN denoted by black or red
color, otherwise you can
REAL
BODY
always change the colors as
long as you don't get
............. CLOSE confused, thats perfectly
fine.
LOWER SHADOW
LOGIC BEHIND BULL CANDLE
The bear candle opens high and closes low,
and when the next bearish candle forms, it
repeats the pattern of opening high and
closing low and hence a series (pack) of
bearish candles takes the price lower.
FIND HIGH PROBABILITY TRADING SETUPS
As per said, price does not move in a solid straght
lne as if you are drawing a linear gradient graph in
MATHEMATICS. To clarify this, think about this,
if you swim with your head under water, chances are
you will take it out and do some breathe in and get
some air, after that you then put it back under water
and continue with your swimming. So on the forex
market side, what I'm trying to say is this:
In an uptrend
The main driving force in an uptrend is a series fo
bullish (Bull) candlesticks. On impulse moves and
retraceent moves, comes in the bearish (bear)
candles/ candlesticks.
Don't worry if you don't know what "impusle" and
"retracement" means, they will be covered later in
this chapter, (Market Structure).
In a downtrend
The main driving force in a downtrend is a series fo
bearish(Bear) candlesticks. On impulse moves and
retraceent moves, comes in the bullish (bull) candles/
candlesticks.
Don't worry if you don't know what "impusle" and
"retracement" means, they will be covered later in
this chapter, (Market Structure).
FIND HIGH PROBABILITY TRADING SETUPS
In an uptrend
impulse: (driving force) re
tra
ce
lse
retracement: (opposing move) r
pu
et
ra
im
ce
lse
re
pu
tra
ceim
lse
pu
re
im
tra
ce impulse moves are usually larger than
lse
retracement moves
pu
im
Higher high
Higher high
Higher Low
Higher high
Higher Low
Higher high
Higher Low
Higher Low
Higher high: Highest point of the impulse
move, as price goes up higher.
Higher low: Lowest point on retracement
move(s), but as price continues to go up
higher.
FIND HIGH PROBABILITY TRADING SETUPS
In a downtrend
e
impulse: (driving force)
imp
rac
ret
uls
ce retracement: (opposing move)
imp
a
e
tr
re
uls
e
imp rac
e
t
uls re e
imp
e
ac
tr
re
uls
e
impulse moves are usually larger than
retracement moves
Lower high
Lower high
Lower high
Lower Low
Lower high
Lower Low
Lower Low
Lower Low
Lower high: The highest point of the
retracement move(s) as price goes down.
Lower low: The lowest point of the
impulse move as price goes lower and
lower.
FIND HIGH PROBABILITY TRADING SETUPS
Support & Resistance
Have you ever wondered why price keeps
retacing/ turning at only level (zone) for
multiple times? now let me explain that you.
Most trading books and traders will tell you
that support and the resistance are solid line
but, I wanna let you know that you don't need
to treat them as solid lines as well, like most
traders are doing. Consider the images below:
Resistance
Line
the the
ch d ch
u u
d
to e to
he
't el ch 't el
n u n
uc
id le v ti to id le v
d it d
to
it
it
it d it d
idn idn
't to 't to
lev uch lev uch
el the el the
Support Line
As you can see, the horizontal pink lines
represent my support & resistance lines, but
treating them as solid lines in line charts its
fine, but let's find outwhy treating them as
solid lines in candlestick's chart is
baaaaaaaaad!
FIND HIGH PROBABILITY TRADING SETUPS
1 2 4
resistance zone resistance zone 5
3
c
Support zone Support zone Support zone
a b
Now can you see that you will not have a
clear idea of where the price could be heading,
hence the price does not respect one level over
and over again?
What is does is that it do the spikes up highs
and lows, making the trader to think it is a
breakout, but only to reverse in the opposite
direction, while the trader entered in the
wring signal called the false breackout
(fakeout).
The numbers 1,2,3,4 and 5. Represents how
many times the resistance zone was touched.
The letters, (a), (b) and (c), represents how
many times the support zone tested OR
touched.
