The Bravery Student Academy

@thebraverystudent

A guide to a profitable day in the forex market

Muzi I. Tsabedze
tsabedzemuzi@gmail.com
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My trading day

1. Get up early – at 4 am and go over my morning routine.

2. Meditate and get concentrated. If I don’t feel good I don’t trade
3. Read my “trading checklist” and make sure I know every single point of it.
4. Check the news before trading and mark if there are any news
5. Start analysing and delete every analysed pair and start afresh so that a story
will be built. Be much focused and adhere to all criterial.
6. Select only 1 to 3 set ups, which I completely understand! Write down how I
would like to trade them on my journal and note every move from then on.
Forecast the move and what I want to see if it develops perfectly, if it doesn’t,
let go.
7. Wait very patiently for the price to develop. I trade around New York open, so
relax until then, NO RUSH needed. Possible entries during London session
aswell.

Trading system

 Weekly key levels, support and resistance. Mark any wick support and
resistance levels and see if there is a reaction. Follow the weekly candles and
get to know what is about to potentially happen. Mark the round figures(key
levels)
 Step down to D1 where the analysis begins;
1. Plot trend lines (wick to wick). After every touch, we must see a rally in
order for the trend line to be correct. ABC formation confirms the TL. The
best set up is the 3rd drive into the TL.
2. What is the D1 trend? HLs and LHs? Determine the overall bias. What do
we expect now? A new HH or LL- on the D1. Always keep in mind the
D1 trend!
3. Candlestick formation. What are the D1 candles telling us? We look for
formations like Evening/morning star, 3 pin pattern (last wick making
LH/HL), spinning tops, Doji’s and inside bars. If there is a formation
available, mark the 1st candle high and low and let it be a 4H intraday level.
Enter at the highest or lowest wick
(a) Remember it is always important where it is, than what it is.
(b) Candle formations have 85% win rate on the D1 and 75% on the 4H.
(c) 2 candle formation (2 spinning tops, spinning top and Doji, inside bar)
have the highest probability. They can mark the end or the beginning of
a major Low or High.
4. D1 Fibonacci. If there are clear swings, plot fibs. The more they align with
levels, the better. Mark long term extensions(-27, -61%). While we await
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for retrace, we can seize the pullback on the 4H 61-71% golden pockets is
the best for entries.

5. Mark and wait for D1 level to get reached; they are the most powerful ones
and higher probability! PA on D1 will always rule, round numbers as well

Support and Resistance

1. In trending markets, new Support and Resistance are formed at swing points
(LL and HH).
2. It has to have at least two bounces, which have space on the left.(most often
for channels)
3. They are price ones, draw with rectangles, from the highest to the lowest
wicks.
4. For supply and demand zones (Banks entries), pay attention to the way the
price leaves the zone, if the market leaves the area quickly, this is an
indication that banks and institutions are there.
5. Use Fibonacci levels for potential S and R.
6. Draw trend lines, mark the S and R levels and expect the impulsive wave.
7. Always do Top-Down analysis. Start from Weekly to 4H time frame, but the
significance is decreasing.

 4H time frame is my key. D1 and 4H must line up for the best setups.
 Take only the best visible setups with clear breaks and retest . I will take less
trades, but let them be clear with evidence and confirmation.
1. How is the price moving? What are the most recent PA? HL or HH? If the
price is moving with huge momentum and I want to enter on the opposite
of it- NO TRADE and avoid wicky PA.
2. In what formation are we?
3. In order for the reversal formations to be correct, we need a broken TL
(even better when there is a broken HL or LH structure), which may be a
counter TL of the D1 trend.
4. For trend continuation, we can use fibs for the potential LHs or HLs and
extensions for targets.
5. 4H 50 EMA- Flats- consolidation. PA is below EMA- Downtrend. PA is
above EMA- uptrend. Look for taps on it.
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Smart money concepts (SMC)

 Points of interest (POI)

 Major highs/Lows (HH/HL and LH/LL)
 Imbalances (Fair Value Gaps (FVG))
 Order blocks (OB)
 Supply and demand zones (SZ/DZ)

 Framework
 Identify market structure (HH/HL and LH/LL) and bias/trend on the 4H
timeframe and locate major points of interests.
 Wait for price to retrace to the POI
 Go to the lower timeframe (15min), identify liquidity and check for any
imbalances.
 Wait for price to purge liquidity within the point of interest.
 Wait for price to impulsively break structure, creating a change of
character (CHoCH) and imbalance.
 Mark the lower timeframe DZ or SZ or OB.
 Enter trade at the order block that caused the CHoCH or Break of
structure (BOS)

 Entries
 The order block that caused the CHoCH or BOS
 The order block is the extreme zone for the leg breaking structure.
 The order block created a clear imbalance (FVG)
 Confluence

 Liquidity Zones
1. I must identify zones where price rejects violently with wicks and has been
respecting them in the past. Zones and levels where price supports,
resists and rallies from.
2. Price tapping into Liquidity zones (LQZ) reacts immediately. Usually
forming huge rejections wicks and starting to flush with momentum. Those
are safe entries, if price, though, moves steadily and continues we may not
be in liquidity zone.
3. Usually at round numbers.
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 Support/Resistance and D1 highs and lows. Always check them before
trading session.

1. The open of London session will usually test D1 levels, so watch carefully
for a break and hold.
2. Use the D1 highs/Lows fib tool. It’s so good to see price bouncing from it.
Always make sure that the trade I am about to take is with the trend
though.
 Breakeven Rule. Secure 50% of TP or management level (potential zone).
For swings, allow price to breath, but for day trades and scalps – make sure
to secure ASAP.
- For SL on profit, patiently wait for 1H pullbacks to EMA and clear 4H PA
with new LH/HL.

Important Notes

 No trades on Monday and Friday.

 Do not trade when feeling pumped or impatient. When I feel a rush to trade,
just close the laptop. Trades must be planned, expected and nicely entered
with TP.
 I am not obligated to take a trade every day, I only enter when I am sure and
it’s a “yes” trade.
 Rules + Discipline + Patience = Success. Just follow the plan and execute
when the opportunity arises. It’s so simple, it’s about those huge wining days
that will cover all the small losses.
 Always take the profits when there are, if new equity high or 3 and 4RR – take
it. Don’t turn into a greedy pig.
 Stay out of major news, wait for news to circle, then trade.

 Never close the trade when the price is still at SL range or hasn’t reached
breakeven level. Trust the analysis.
 Apply correlation. When A TRADE is not nicely supported t the correlation, be
very conservative or avoid it.
 Less is more. Don’t rush to find trade every morning, know when to stay
away. Market tends to enter into indecisive stages, learn to recognize them.
 Do not make a mistake of entering numerous trades per week, focus on
making bit profitable as the previous one
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Money management Plan

 I will be risking 2% of my account per trade

 The maximum loss per week should be 6% = 3 lost trades, the goal is to take
as less trades as possible maybe 3 trades with a win of 50% rate and R:R
3.
 I target 5R per week, which equals 10% profit, which is 2 full TPs with room
for one loss.
So, there is no need to rush things. I need 2 trades that hit TP, if I achieve the
target, I step away and minimize risk. If an opportunity arises- act on it, but lower
the risk
If my target is to achieve six figures:
 10% per week with 5000 usd = 2000usd per month = 24000usd per year =
3 years to 6 figures
 10 % per trade with 10000usd = 4000usd per month = 48000usd per year
= 2 years to six figures
 Things will not always look like this, but always remember the plan. There will
be losing days, weeks, months or even years.
Always think long term. Trade like I trade 1M usd. Be a professional, not a gambler.
IT IS NOT ABOUT HOW MUCH YOU MAKE, BUT HOW MUCH YOU LOSE

Entries
Candlestick Formation and rules
1. Bullish/Bearish Engulf

 Has to be the biggest candle when looking at the chart for the last week or
more.
 A nice way to enter is with stop orders a few pips below /above the low/high of
the engulfing candle. This way I will avoid losing after retracing and the trade
will be sure if price goes my direction.
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Psychology notes
I AM A CONSISTENT WINNER BEACUSE
 I objectively identify my edges. The way to be objective is to operate out of the
beliefs that keep your expectations neutral and to always take the unknown
forces into consideration.

 I predefine the risk of every trade

 I completely accept the risk or I am willing to let go of the trade.

 I act on my edges without reservation or hesitation

 I pay myself as the market makes money available for me

 I continually monitor my susceptibility for making errors

 I understand the absolute necessity of these principles of consistent success

and, therefore, I never violate them.

M.T’s rules

1. Anything can happen.

2. You don’t need to know what is going to happen next in order to make money.
3. There is a random distribution between wins and losses for any given set of
variables that define an edge.

4. An edge is nothing more than an indication of a higher probability of one thing

happening over the other. I always put the odds in my favour before opening a
trade.
5. Every moment in the market is unique.