PRICE ACTION TIPS AND TRICKS
A S T E P B Y S T E P G U I D E F O R TA K I N G T R A D E S
RockzFX
RockzFXAcademy rockzfx.com
rockz__fx By RockzFX
INTRODUCTION
Hi everyone, my name is Rockz and I have been
trading a little over 6 years. I am self-taught and I
have been through the roughs from hyper scalping
to end of day trading, swing trading, binary options
and now day trading. I now consistently make
profits in a systematic and disciplined manner and I
have a very unique way of approaching the markets.
My focus is mastering the art of identifying market
structure at the highest level to enable me to have
an edge when it comes to entries and trade
management, allowing me to minimise my losses
and maximise my profits.
I am a mentor and a business owner and I run one of the largest forex academies online.
My passion is teaching and I love helping traders who face the same issues I did when I
first started trading.
Time is valuable and my aim is to help others acquire this skill in the shortest time
possible. I teach traders from all backgrounds, strip everything they know back to basics
and build a systematic and consistent approach to trading in the Forex markets.
Trading has inevitably become increasingly popular over the years and this has attracted
a lot of sharks to this profession. There is an overwhelming amount of content out there
and it can be very difficult to know what is right and what is wrong.
That’s why I have created this guide to show you a very simple, yet powerful, way to
approach your charts in 6 easy steps to maximise your chances of becoming a consistent
and profitable trader.
Enjoy,
RockzFX
RockzFXAcademy rockzfx.com
rockz__fx By RockzFX
STEP 1
DETERMINE THE DIRECTION OF THE MARKETS
This is probably the most important step for any technical trader.
If you don’t know where the market is going, there is no point in taking a trade.
Your weekly timeframe is going to tell you a lot:
Below we have a line chart of the GBPUSD pair and even though this may simply look
like a bunch of lines going up and down, the information this chart provides is
unbelievable. The reason we use a line chart to determine the direction of the markets is
because it makes it easier to spot the direction by filtering out the noise of the candles.
Let’s practise:
Which way is the market going?
I want you to look away from the screen for a moment and then look back at the chart.
When you do, the first direction you see is the answer you should go with.
Your choices are up, down or sideways.
Check the next page to see if you are right...
RockzFXAcademy rockzfx.com
rockz__fx By RockzFX
STEP 1
DETERMINE THE DIRECTION OF THE MARKETS
If your answer is UP then you are correct.
Notice how easy it was and it you didn’t need to think much about your answer?
Now that you have clearly identified that the direction of the market is up, you need to
stick to your bias when entering trades.
It can be very difficult to do this because naturally your impulse is to try and go with any
and which way the market is going to get in a trade and make a quick buck.
But trading doesn’t work like that and you cannot catch every single move and that’s
why so many traders blow their accounts and end up quitting.
RockzFXAcademy rockzfx.com
rockz__fx By RockzFX
STEP 2
DETERMINE THE PHASE OF THE MARKET
This factor is overlooked by so many traders and if mastered can be the make or break
of your trading career.
Take a look at the chart below:
Daily timeframe GBPUSD
We have already determined from the weekly timeframe that the market is going up.
Our next step is to simply head over to the daily timeframe and go back to our candle
charts.
Our aim on this timeframe is to understand what phase the market is in.
NOW…this is how simple it will be.
There are three examples on the next page.
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rockz__fx By RockzFX
STEP 2
DETERMINE THE PHASE OF THE MARKET
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rockz__fx By RockzFX
STEP 2
DETERMINE THE PHASE OF THE MARKET
Now that you know the three phases lets go back to our daily chart and work out the
phase of this market:
Keep it simple…
What phase is this market in?
If you said EXHAUSTION PHASE, then you where right…
this moves us onto the next step.
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STEP 3
COMBINE YOUR KNOWLEDGE
So, we have determined the market is going up from the weekly chart and all we did was
look away from our screens and looked back and said the first direction that we saw
which was up.
Next, we dropped down to the daily chart and determined out of the three possibilities
which phase the market was in which was the exhaustion phase.
Here is the secret:
The market must exhaust before is continues its continuation phase every single time.
If you don’t believe me look below:
AUDCHF Daily timeframe:
Here we have an example of the marketing going through a continuation phase
represented by the black lines followed by an exhaustion phase represented by the red
lines with the arrows pointing towards them.
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rockz__fx By RockzFX
STEP 3
COMBINE YOUR KNOWLEDGE
So we now have gathered that the market in fact any time it goes down or up for long
periods of time it NEEDS to exhaust.
BACK TO OUR PAIR:
So exhaustion phase it is…Lets move onto our next step.
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rockz__fx By RockzFX
STEP 4
MARKING KEY LEVELS
This step is where most traders get it wrong. They are so used to marking up their charts
all over the place leaving themselves with so many support and resistance levels that
they don’t know where to trade from.
YEP this is the same chart as above but drawn with support and resistant levels and this
represents how the majority of traders draw their key levels.
BUT THIS IS WRONG!
We know the market is going up.
We know the market is in an exhaustion phase.
Determining those two factors we are looking for BUYS.
So why do we need all those lines???
WE DON’T!
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STEP 4
MARKING KEY LEVELS
Let’s do this again in a simple way….
Can you see the difference? All we have done here is taken our major high of this
structure, the current low, and a previous low.
THAT’S IT
Why have we done this…well we know with a market that is moving up the formation is
as follows:
Higher Lows and Higher highs
If we have gathered, we are looking for buys then we are waiting for this exhaustion
phase to end and look to buy the market when it starts its continuation phase.
We need price to show us evidence of it exhausting at or above these current levels.
Expecting as we would in an upward moving market for a higher high to be formed.
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rockz__fx By RockzFX
STEP 5
WA I T
Patience is the name of this game.
If there is any advice I can give you it is to learn to exercise patience.
This is the key to a successful future in Forex. It is not a quick rich scheme where you
think you can load up your trading account with money and press buy or sell and
everything will be ok. This is a professional business and one that must be taken very
seriously. You are your own boss and only you manage what’s happening in it!
Enough of the rant let’s move on…
• We have determined the direction of the market
• We have clearly identified the phase the market is in
• We have marked up our key levels
And now we know we are waiting for price to come in or near these levels and then
look for signs of exhaustion.
Let’s continue with our analysis.
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rockz__fx By RockzFX
STEP 5
WA I T
Let’s see how price reacts to our level…
We can see price has come down to our key level as expected. And we notice here
price has sat on this structure support for 3 days now. This could be an indication
that the exhaustion phase may be over, and we can start to look for buys.
Let’s continue…
You notice here price is still holding at this level? But we still don’t have a buy signal,
because the current candle attempted to push to the upside but failed closing as an
indecision candle. Let’s continue...
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rockz__fx By RockzFX
STEP 5
WA I T
Price has now smashed through out support zone.
My question to you is…
Are we now looking for sells?
Think about this for a minute. We have two major levels. The psychological aspect
behind this trade was that the support level that price has just smashed through
potentially could have been a buy zone.
How many retail traders do you think where buying at this level?
Probably tons.
SOOO… What do you think could be happening here?
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STEP 5
WA I T
Now you notice price is starting to hold at our next support zone?
Do you think that the previous break of the structure may have been a stop hunt or
potentially a false breakout enticing retail traders to sell the markets?
How about this?
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rockz__fx By RockzFX
STEP 5
WA I T
We now have continued momentum of this market to the downside. But remember
we are patient traders, so we wait for evidence. If this market structure gets violated
and breaks the current support, then we just wait for a close below and a retest for the
continuation to sell. Right now, we are still looking for buys.
Let’s continue…
Now you see the difference we have our buy signal. I want you to note we have been
waiting a long time for this…
17 days in total.
We see a strong bullish candle and the rejection at support, so it is time to take the
trade.
RockzFXAcademy rockzfx.com
rockz__fx By RockzFX
STEP 6
TRADE
There are many ways to enter the market and everyone’s system is different.
But this is for example purposes.
Let’s recap…
• We have determined the direction of the market.
• We have clearly identified the phase the market is in.
• We have marked up our key levels.
And now we have seen our evidence of exhaustion and a beautiful bullish engulfing
candle to signify that the bulls are POTENTIALLY in control.
Based on this information, we have entered our BUYS
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STEP 6
TRADE
576 PIPS in the bag.
Let me put this into perspective.
Perspective moment:
The potential is exponential if you just learn to be patient.
£1000 trading account
0.01 = £57.60
0.10 = £576
0.20 = £1152
0.30 = £1728
0.40 = £2304
0.50 = £2880
1 lot = £5760
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rockz__fx By RockzFX
RECAP
This has only been all possible because we were patient.
• We correctly identified the market direction.
• We were not fooled into believing it was a sell bias market as soon as price broke our
structure lows.
• We understood the phase of the market.
• We anticipated the psychology behind why the market is doing what it was doing.
• We waited for our exhaustion.
• We waited for our buy signal.
• We entered the markets and we where rewarded 576 pips in total.
One or two of these trades a month is all you need.
What do we do now…we rinse and repeat!
I hope you enjoyed this and found it of value.
There are some useful resources on the next page if you need further help or support
with your trading.
RockzFXAcademy rockzfx.com
rockz__fx By RockzFX
APPENDIX
L e a r n i n g Re s o u r c e s
Learn the basics:
www.babypips.com
Need to grow further with the aid of a mentor:
www.rockzfx.com
How to break down market structure:
https://www.youtube.com/channel/UC7kRrKIH5dBtLhSJTHUkbnA
Risk Disclaimer
Trading foreign exchange on margin carries a high level of risk and may not be suitable
for all investors. Past performance is not indicative of future results. The high degree of
leverage can work against you as well as for you. Before deciding to invest in foreign
exchange you should carefully consider your investment objectives, level of experience
and risk appetite. The possibility exists that you could sustain a loss of some or all of
your initial investment and therefore you should not invest money that you cannot
afford to lose. You should be aware of all the risks associated with foreign exchange
trading and seek advice from an independent financial advisor if you have any doubts.
RockzFXAcademy rockzfx.com
rockz__fx By RockzFX
