The Black Book of Ultimate Price Action .

by:Simanga Thami Nhambose

TABLE OF CONTENTS
Content
> False Breakout Patterns

> What is support and resistance

> Pin bar and inside bar Combo Patterns

> The Inside Bar Patterns(Breakout or Reversal Pattern)

> False breakout combined with MACD

> The template's settings

> The best way to combine the template with price action strategy
For better results.

>The use of:

●Bollinger Band
●Parabolic SAR
●Stochastic Oscillators
●MACD

> How to create your own strategy

> Trading Psychology

First edition. 2022

Copyright 2022
All Rights Reserved
 Introduction
The secret of your trading success is determined by your ability to
wait for the market to form the set ups you need.

The Forex trading market is the most liquid market in the world
and billions of people and entities intervene in it. And that alone is
part of the many reasons why traders lose money. Government,
politics, the weather, public health, corporate expansion or
bankruptcy, the prices of foodstuff, everything influences the
Forex market. So without a trading plan, you will never know why
you are still not succeeding. You will always fall victim for losses
until you spot that you have discipline issues, psychological
factors hurting your trading, or simply having no edge in the
markets.

All together people are defeated by the everyday problems of

trading. They go struggling or perhaps evening wanting to quit. But
there is a method by which we can avoid those problems in
trading.If your aim is to change your trading career, then this book
is truly for you. Here you will know more about the two most
profitable strategies that no book has ever simplified. In saying this
I certainly do not say you will be 100% profitable but you will minimize the hardships and
tragedies of trading. Remember that it
is only you who can permit obstacles to control your mind to the
point where they are the upper most thus becoming the upper
factors in you thought pattern. By learning how to cast them from
the mind you can rise above these trading obstacles which might
defeat you.
Since I always practice what I preach. Majority of what I will be
sharing with you is what works for me in this trading business.
So in everything you will be learning from me. Will all be about
what I've learned and implemented from the day I became
profitable until today. Remember, Great knowledge/skill never dies.
The following are three major things I rely on to avoid bad signals.

1. Price Action
2. BB.PS.SO.MACD(The template)
3. Proper risk management

Later while we proceed with our lessons. I will then discuss with
you how to help you create your own trading strategy and rules.

BB ( Bollinger Band)
P.S ( Parabolic SAR)
S.O ( Stochastic Oscillator)
MACD( Moving Average Convergence Divergence)

I won't deceive you but the template alone will not make you
profitable until you learn how to combined it with what I've
proven to be correct, which is Price Action. I've seen a lot of
newbies using the strategy and they are still failing to be profitable until today because they
lack background knowledge on how the
market operates like.
So without a waste of time,we will first discuss all what is very
necessary about Price Action.
QUICK ADVICE: Even if you feel like you know P.A lot. Just calm
down and retake the lessons I promise you,your knowledge will be
supplemented.
 CHAPTER 1 (Price Action)

False Breakout Patterns

False-breakouts are exactly what they sound like: a breakout that

failed to continue beyond a level, resulting in a ‘false’ breakout of
that level. False breakout patterns are one of the most important
price action trading patterns to learn, because a false-break is often
a very strong clue that price might be changing direction or that a
trend might be resuming soon. A false-break of a level can be
thought of as a ‘deception’ by the market, because it looks like price
will breakout but then it quickly reverses, deceiving all those who
took the ‘bait’ of the breakout. It’s often the case that amateurs will
enter what looks like an ‘obvious’ breakout and then the
professional’s will push the market back the other way

As a price action trader, you want to learn how to use false

breakouts to your advantage, rather than falling victim to them.

Here are two clear examples of false breakouts above and below
key levels. Note that false breakouts can take different forms.
Sometimes a false break will occur with a pin bar pattern or a
fakey pattern as the false break, and sometime not:
A false breakout is essentially a ‘contrarian’ move in the market
that ‘flushes’ out those traders who may have entered on emotion,
rather than logic and forward thinking.

Generally speaking, a false-break is happens because amateur

traders or those with ‘weak hands’ in the market will tend to enter
the market only when it ‘feels safe’ to do so. This means, they tend
to enter when a market is already quite extended in one direction
(and it’s about ready to retrace) or they try to ‘predict’ a breakout
from a key support or resistance level too early. Professional
traders watch for these missteps by the amateurs, and the end
result is a very good entry for them with a tight stop loss and huge
risk reward potential.

It takes discipline and a bit of ‘gut feel’ to know when a false-break

is likely to occur, and you can never really know ‘for sure’ until
after one has formed. The important thing, is to know what they
look like and how to trade them, which we will discuss next…

How to trade false breakout patterns

False breaks occur in all market conditions; trending,

consolidating, counter-trend, but perhaps the best way to trade
them is in-line with a dominant daily chart trend, like we see in the
chart below.

Note, in the chart below, we had a clear downtrend in place and

multiple false breakouts to the upside within that trend. When you
see a false breakout that is against a dominant trend like this, it’s
usually a very good signal that the trend is ready to resume.
Amateur traders love to try and pick the bottom in a downtrend or
the top in an uptrend, and this can cause false breakouts against
the trend like we see below. On each of these false-breaks in the chart below, it was likely
that amateur traders thought the
downtrend was over and so they started buying, once this buying
started the professionals came back in and took advantage of the
temporary strength within the down-trending market and entered
short from value, and then the downtrend resumed, flushing out
all those amateur traders who tried picking the bottom.

The chart below shows examples of false breakouts within a down-

trending market. Note that each one led to a resumption of the
trend.

False-breaks are prevalent in trading ranges because traders often

try to pick the breakout of the range but usually price stays range-
bound for longer than most assume. Knowing that false-breaks are
somewhat common when a market is struck in a trading range is a
very valuable piece of information for a price action trader.

Trading a range-bound market can be very lucrative as you can

wait for price action signals at the support or resistance boundary
of the range to trade back toward the other side of the range.

The best way to be sure you don’t get caught in a false-breakout

from a trading range is to simply wait for price to close outside of
the range for two days or more. If this happens, there’s a good
chance the range is finished and price is then going to start
trending again.

In the chart below, we can see how a price action trader can use a
false breakout pin bar signal to trade a false breakout of a trading
range. Note the false break pin bar at the trading range key
resistance, and also note the two false-breaks at the trading range’s
support. More experienced traders can also trade false breakouts
that don’t contain a price action trigger like a pin bar. The two false-breaks of support in the
chart below were both potential buy
signals for a savvy price action trader

False breakout patterns can sometimes signal the beginning of a

new trend, and the end of the current one.
In the chart example below, we can see a key resistance level that
held price on two tests, then on the third test, price created a large
false-break pin bar strategy that signaled a potential down move
was coming.
As we can see in this chart, not only did the false breakout signal a
down move, but it kicked off an entire downtrend…
False Breakout Pattern Trading Tips

False breakouts occur in trending markets, range-bound markets

and against the trend. Watch for them in all market conditions as
they often give strong clues as to impending market direction.

Trading counter-trend is difficult, but one of the ‘best’ ways to trade

against a trend is to wait for a clear false breakout signal against a
trend from a key support or resistance levels, as shown in the last
example above.

False-breakouts give us a ‘window’ into the ‘battle’ between

amateur and professional traders, hence, they give us a way to
trade with the professionals. Learn to identify and trade false
breakout patterns and trading will take on a different light for you.
 CHAPTER 2 (Price Action)

What is support and resistance?

Support and resistance levels are horizontal price levels that

typically connect price bar highs to other price bar highs or lows to
lows, forming horizontal levels on a price chart.

A support or resistance level is formed when a market’s price

action reverses and changes direction, leaving behind a peak or
trough (swing point) in the market. Support and resistance levels
can carve out trading ranges like we see in the chart below and
they also can be seen in trending markets as a market retraces and
leaves behind swing points.

Price will often respect these support and resistance levels, in other
words, they tend to contain price movement, until of course price
breaks through them.

In the chart below, we see an example of support and resistance

levels containing price within a trading range. A trading range is
simply an area of price contained between parallel support and
resistance levels like we see below (price oscillates between the
support and resistance levels in a trading range).

Note that in the chart below, price eventually broke up and out of
the trading range, moving above the resistance level, then when it
came back down and tested the old resistance level, it then held
price and acted as support…
The other primary way support and resistance levels are created in
a market, is from swing points in a trend.

As a market trends, it retraces back on the trend and this

retracement leaves a ‘swing point’ in the market, which in an
uptrend looks like a peak and a downtrend looks like a trough.

In an uptrend, the old peaks will tend to act as support after price
breaks up past them and then retraces back down to test them. In a
downtrend, the opposite is true; the old troughs will tend to act as
resistance after price breaks down through them and then retraces
back up to test them.

Here’s an example of a market testing previous swing points

(support) in a downtrend, note that as the market comes back to
test the old support, the level then behaves as ‘new’ resistance and
will very often hold price. It’s wise to look for an entry point into a
trend as it comes back and tests these previous swing points (see
pin bar sell signal in chart below), because it’s at these levels that
the trend is most likely to resume, creating a low-risk / high-reward
potential:
How to trade price action signals from support and resistance
levels

Support and resistance levels are a price action trader’s ‘best

friend’. When a price action entry signal forms at a key level of
support or resistance, it can be a high-probability entry scenario.
The key level gives you a ‘barrier’ to place your stop loss beyond
and since it has a strong chance of being a turning point in the
market, there’s usually a good risk reward ratio formed at key
levels of support and resistance in a market.

The price action entry signal, such as a pin bar signal or other,
provides us with some ‘confirmation’ that price may indeed move
away from the key level of support or resistance.

In the example chart below, we see a key level of resistance and a

bearish fakey strategy that formed at it. Since this fakey showed
such aggressive reversal and a false-break of the key resistance,
there was a high-probability that price would continue lower
following the signal…

The next example chart shows us how to trade price action from a
support level in an uptrend. Note that once we got a clear pin bar
buy signal, actually two pin bar signals in this case, the uptrend
was ready to resume and pushed significantly higher from the key
support level.
The next chart example show us how sometimes in trending
markets a previous swing level will act as a new support or
resistance level and provide a good level to focus our attention on
for price action entry signals.

In this case, the trend was up and a previous swing high in the
uptrend eventually ‘flipped’ into a support level after price broke
up above it. We can see that when price came back to retest that
level the second time, it formed a nice pin bar entry signal to buy
the market and re-enter the uptrend from a confluent level in the
market.
Finally, the last chart we are looking at is an interesting one. Note
the swing low that occurred in the down trend on the left side of
the chart. You can see how this level stayed relevant months later,
even after the trend changed from down to up. It first acted as a
resistance level after price broke down through it, but once that
resistance was broken, we had an uptrend form and then after
that, that same level acted as support, and that’s where we see the
fakey pin bar combo signal in the chart below:
Tips on Support and Resistance

Don’t get too carried away with trying to draw every little level on
your charts. Aim to find the key daily chart levels, like we showed
in the examples above, as these are the most important ones.

The horizontal lines of support or resistance that you draw won’t

always touch the ‘exact’ high or low of the bars it connects.
Sometimes, it’s OK if the line connects bars slightly down from the
high or up from the low.

The important thing to realize is that this is not an exact science,

instead it is both a skill and an art that you’ll improve at through
training, experience and time.When in doubt about whether to
take a particular price action entry signal or not, ask yourself if it’s
at a key level of support or resistance. If it’s not at a key level of
support or resistance, it might be better to pass on the signal.
A price trading strategy, such as a pin bar, fakey, or inside bar
strategy has a significantly better chance of working out if it forms
from a confluent level of support or resistance in a market.

CHAPTER 3 (Price Action)

Pin bar and Inside bar Combo Patterns

A pin bar is a price action strategy that shows rejection of price and
indicates a potential reversal is imminent. An inside bar is a price
action strategy that shows consolidation and that a potential
breakout is imminent. These two signals, when combined, result in
either a ‘pin bar combo’ pattern or an ‘inside bar – pin bar combo’
Pattern.

Pin bar and inside bar combination patterns are some of the most
potent price action signals you will encounter. There are two main
‘combo patterns’ you should focus on learning
.
1) The pin bar + inside bar combo, consists of a pin bar that
consumes a small inside bar toward the nose of the pin (the pin
bar’s real body).

2) The inside pin bar combo setup is simply a pin bar that’s also an
inside bar. In other words, a pin bar that’s within the range of an
outside bar or mother bar.

How to Trade the Pin Bar + Inside Bar combo pattern

When looking for pin bar inside bar combo patterns, you will first
be looking for just a pin bar, if you see a pin bar immediately
followed by an inside bar that’s contained within the high-to-low
range of the pin bar, then you have a pin bar + inside bar combo
pattern. As mentioned above, it’s ideal of the inside bar forms near
the pin bar’s nose (real body).

Of the two combo patterns discussed in this tutorial, the pin bar +
inside bar combo is the most powerful and it’s an ideal setup to
trade on the daily chart either from pullbacks to key levels or as
breakout plays in trending markets on the 4 hour or daily charts.

Let’s take a look at some examples:

In the chart example below, we can see a nice example of a pin bar
inside bar combo pattern that formed following a pullback to a
support level in an upward trending market. These types of combo
patterns are very powerful because they give you the chance to get a better entry on the pin
bar (near its 50% level) and allows you to
get a ‘tight’ stop loss either below the inside bar low or below the
key support level. When you see a pin bar followed by an inside
bar or even multiple inside bars like we see in the example below,
it’s time to take notice because you might have a potential trade
entry on your hands…
Here’s another example of the pin bar and inside bar combo
pattern. This time, it’s more of a reversal pattern because it formed
at a resistance level, causing a false break of that resistance level
and then set off a move to the downside. This combo pattern again
allowed a trader to get a ‘tight’ entry by entering as the inside bar
retraced up the pin bar’s tail, the stop loss could have been placed
just above the resistance level or near the pin bar’s high. We can
see a dramatic sell-off unfolded as price broke down below the
inside bar

How to Trade the Inside-Pin Bar combo pattern

Inside pin bars are exactly what their name suggests; pin bars that
are also inside bars. These setups seem to work best in trending
markets and on the daily chart time frames.

In the example below, we can see a strong uptrend was in place

prior to the formation of the inside pin bar combo pattern. We can
then see price broke out above the high of the mother barand this
would have been the entry point into the trend. Traders can place a
‘buy on stop’ entry just above the mother bar high on an inside-pin
bar combo setup like this one. Then as price breaks out in-line with
the trend, you are brought into the trade in-line with the current
market momentum…

The chart below shows us another example of a good inside-pin bar

combo pattern. This time, the trend was down or ‘bearish’, and asprice consolidated for
several days it ended up forming the bearish
inside-pin bar sell signal that we see in the chart below. Inside pin
bar combos work very good as ‘continuation patterns’ in trending
markets, a continuation pattern is simply a pattern that implies the
trend will continue moving in its existing direction. Note, the
aggressive sell-off that took place once price broke down below this
inside-pin bar’s mother bar…
Pin bar and Inside bar Combo Pattern Trading Tips

Always be on the lookout for pin bars followed by inside bars.

Often, a one-day pause after a pin bar, in the form of an inside bar,
will be your last chance to enter the market before price moves
away aggressively from the pin bar reversal signal.

Often, you can place your stop loss just above (or below) the inside
bar in a pin bar + inside bar combo setup, this gives you the ability
to trade a slightly bigger position size and improves the risk
reward scenario of the trade.

Look for inside-pin bar combo setups in trending markets,

especially in noticeably strong trends they tend to be very reliable
as breakout / trend-continuation plays.

Inside-pin bar setups are best on the daily chart time frame
whereas pin bar + inside bars work well on both the daily and 4
hour chart time frames.
 CHAPTER 4 (Price Action)

The Inside Bar Pattern (Break Out or Reversal Pattern)

An “inside bar” pattern is a two-bar price action trading strategy in

which the inside bar is smaller and within the high to low range of
the prior bar, i.e. the high is lower than the previous bar’s high, and
the low is higher than the previous bar’s low. Its relative position
can be at the top, the middle or the bottom of the prior bar
.
The prior bar, the bar before the inside bar, is often referred to as
the “mother bar”. You will sometimes see an inside bar referred to
as an “ib” and its mother bar referred to as an “mb”.

Some traders use a more lenient definition of an inside bar that

allows for the highs of the inside bar and the mother bar to be
equal, or for the lows of both bars to be equal. However, if you
have two bars with the same high and low, it’s generally not
considered an inside bar by most traders.

Inside bars show a period of consolidation in a market. A daily

chart inside bar will look like a ‘triangle’ on a 1 hour or 30 minute
chart time frame. They often form following a strong move in a
market, as it ‘pauses’ to consolidate before making its next move.
However, they can also form at market turning points and act as
reversal signals from key support or resistance levels.
How to Trade with Inside Bars

Inside bars can be traded in trending markets in the direction of

the trend, when traded this way they are typically referred to as a
‘breakout play’ or an inside bar price action breakout pattern They
can also be traded counter-trend, typically from key chart levels,
when traded this way they are often referred to as inside bar
reversals.

The classic entry for an inside bar signal is to place a buy stop or
sell stop at the high or low of the mother bar, and then when price
breakouts above or below the mother bar, your entry order is
filled.

Stop loss placement is typically at the opposite end of the mother

bar, or it can be placed near the mother bar halfway point (50%
level), typically if the mother bar is larger than average.

It’s worth noting that these are the ‘classic’ or standard entry and
stop loss placements for an inside bar setup, in the end,
experienced traders may decide on other entries or stop loss
placements as they see fit.

Let’s take a look at some examples of trading with the inside bar
strategy:

Trading Inside Bars in a Trending Market

In the example below, we can see what it looks like to trade an

inside bar pattern in-line with a trending market. In this case, it
was a down-trending market, so the inside bar pattern would be
called an ‘inside bar sell signal’:
Here’s another example of trading an inside bar with a trending
market. In this case, the market was trending higher, so the inside
bars would be referred to as ‘inside bar buy signals’. Note, often in
strong trends like the one in the example below, you will see
multiple inside bar patterns forming, providing you with multiple
high-probability entries into the trend.
Trading Inside Bars against the Trend, From Key Chart Levels

In the example below, we are looking at trading an inside bar

pattern against the dominant daily chart trend. In this case, price
had come back down to test a key support level , formed a pin bar
reversal at that support, followed by an inside bar reversal. Note
the strong push higher that unfolded following this inside bar
Setup.
Here’s another example of trading an inside bar against the recent
trend / momentum and from a key chart level. In this case, we were
trading an inside bar reversal signal from a key level of resistance.
Also, note that the inside bar sell signal in the example below
actually had two bars within the same mother bar, this is perfectly
fine and is something you will see sometimes on the charts.

Trading inside bars from key levels of support or resistance can be

very lucrative as they often lead to large moves in the opposite
direction, as we can see in the chart below…
Tips on Trading the Inside Bar Pattern

As a beginning trader, it’s easiest to learn how to trade inside bars

in-line with the dominant daily chart trend, or ‘in-line with the
trend’. Inside bars at key levels as reversal plays are a bit trickier
and take more time and experience to become proficient at.

Inside bars work best on the daily chart time frame, primarily
because on lower time frames there are just too many inside bars
and many of them are meaningless and lead to false breaks
.
Inside bars can have multiple inside bars within the mother range,
sometimes you’ll see 2, 3 or even 4 inside bars within the same
mother bar structure, this is fine, it simply shows a longer period of consolidation, which
often leads to a stronger breakout. You may
see ‘coiling’ inside bars sometimes, these are inside bars with 2 or
more inside bars within the same mother bar structure, each inside
bar is smaller than the previous and within the high to low range
of the previous bar.
Practice identifying inside bars on your charts before you try
trading them live. Your first inside bar trade should be on the daily
chart and in a trending market.

Inside bars sometimes form following pin bar patterns and they
are also part of the fakey pattern (inside bar false-break pattern),
so they are an important price action pattern to understand.

Inside bars typically offer good risk reward ratios because they
often provide a tight stop loss placement and lead to a strong
breakout as price breaks up or down from the pattern.
 What Is a False Breakout? Chapter 5

First off let’s look at a normal breakout. A normal breakout is when

the price breaks out of some pattern, whether it’s a range, triangle
or some other chart pattern. By drawing lines along areas of
support and resistance we can see where the priced had trouble
passing through. If the price ends up passing through those prices,
preferably in an aggressive fashion, then we have a breakout.

Traders watch for these breakout moves and attempt to capitalize on them.

When the breakout occurs most traders will get short or buy puts.
In this case the trade would have been profitable. If the breakout
had been to upside, traders look to get long or buy calls

.Unfortunately, not all breakouts are as clear cut as the one shown
above. Quite often the price moves out of a price range, appearing
to be a breakout, but then quickly moves back into the range
trapping all the traders trading the breakout.

Figure 2 shows a false breakout. It appears that the price is

breaking to a new high (moving past the former high) which
signals that the uptrend is continuing, and so traders start getting
long/buying puts.

But the price quickly retreats back below the former high (yellow
line) and continues to fall. In this case, trading the false breakout is
the profitable strategy. Once you realize the move higher is a false
breakout, you want to get short/buy puts.

Figure 3 below shows a false downside breakout. The price moves

just below a former low, but then quickly moves back higher,
trapping the traders who thought the price would continue to drop.
In this case, once you realize the downside breakout is false, you
want to get long/buy calls.
Trade With the False Breakout

Trading false breakouts provides another strategy that you can

utilize, as well as offer a way to make back money you may have
lost on the traditional breakout trade. Therefore, I like to trade
breakouts, but also keep an eye out for false breakouts. If a
breakout turns into a false breakout, I quickly close out my original
(breakout) trade at a loss, or open a new position in the direction of
the false breakout to offset losses on the original trade.

There isn’t a magic formula for trading false breakouts. Just like
trading normal breakouts some of your trades will winners and some will be losers. By
using a few other trading tactics though,
you can potentially bolster your chances of success.

Confidence Boosters

One of the worst things that can happen to a trader is getting

caught in a whip-saw, where they go from long to short, long to
short and end up losing on all the trades because the market moves
back and forth rapidly with no definitive direction. This can
happen with breakout and false breakout trading.

To increase the odds of choosing which false breakouts to trade,

using an indicator to two can help.

Add either a MACD or Stochastic Oscillator to your chart. In Figure

4 I’ve added a MACD to the trade we looked at in Figure 3.

On the false breakout, notice how the price has dropped below the
former low (yellow horizontal line) but the MACD is actually above
where it was (upward slanting green line). This is called a
divergence; the indicator does not agree with the price action. In
this case the indicator is warnings us that the falling price may
soon give way to buying pressure, which it does.

In Figure 5 I have added a MACD to the trade we looked at Figure 2.

Once again we see a strong divergence. The MACD is making a
lower high even though price is making a higher high. The
indicator is once again telling us that this breakout is very weak,
and once the price begins to drop off the high we know that it is a
false breakout.
Adding the indicator helps in two primary ways. If you see this sort
of divergence occur–where the indicator is not in agreeance with
the price movement–it is likely best to skip the traditional breakout
trade. Secondly, it signals that you should be on the lookout for a
false breakout trade. When the false breakout develops, and you
have a divergence, take a trade in the direction of the false
breakout.

The Final Word

Trading false breakouts adds another element to your arsenal.
Since most traders are looking to trade breakouts, when a false
breakout occurs the move is often sharp as traders who use
traditional breakout methods scramble for the exits. Just like you
shouldn’t trade all breakouts, don’t trade all false breakouts either.
Search out the ones that provide the best profit opportunity by
looking for divergence on an indicator before making the trade.
 Chapter 6
High probability trading — using Stochastic to identify areas of
value

A big mistake most traders make is, going short just because the
price is overbought, or oversold.

Because in a strong trending market, the market can be

overbought/oversold for a sustained period of time (and if you’re
trading without stops, you risk losing your entire account).

Here’s what I mean:

In an uptrend, you only look for longs, when the price is oversold.
In a downtrend, you only look for shorts, when the price is
overbought.

Here’re some example

Now…

…you’ll learn how to better time your entries.

How to enter your trades

There’re 3 ways you can enter a trade:

PullbackBreakoutFailure test
Pullback

A pullback is when price temporarily moves against the underlying

trend.

In an uptrend, a pullback would be a move a lower.

Here’s an example:

And…

In a downtrend, a pullback would be a move higher.

An example:
PHONE INSTALLATION
MANUAL
FOR ANDROID AND iOS
Indicator
menu
The best way to combine the template with
price action strategy
For better results.

The Parabolic SAR

When it is above the market price (Downtrend)
When it is below the market price (Uptrend)
HOW TO ENTER-BUY

Entry

This is how you should be spotting and trading market

Divergence
Main chart

1. Price is on the BUY ZONE (support area) of the Bollinger Band.

2. The market price is moving in opposite direction with the MACD

Indicator window

1. The MACD is moving in an opposite direction with the market price.

2. The stochastic oscillator is also on the BUY ZONE.

TIP: Market divergence usually occur when there is a trend reversal. So when you use it,
trading with the market’s trend is not advisable.
HOW TO ENTER-BUY

Main chart

1. The market price is on the BUY ZONE of the Bollinger Band.

2. Previous resistance has been turned to support area.
3. There are two wick rejections on the support area and that indicates price is failing to
break below the level of support.
4. The parablic SAR is below the market price indicating an uptrend

Indicator window
1. The stochastic oscillator is on the BUY ZONE
HOW TO ENTER-SELL

FALSE
BREAKOUT

ENTRY

Main chart
1. Market price made a false breakout on the level of resistance.
2. The market price is n the SELL ZONE of the Bollinger Band
3. There is a bearish pin bar and an bearish engulfing candlestick
4. The parabolic SAR is above the market price indicating a downtrend

Indicator window

1. The stochastic oscillator is on the SELL ZONE

HOW TO ENTER-SELL False break within
a downtrend

Main chart
1. Previos resistance has been made new support
2. There is a false breakout within a downtrend
3. Parabolic SAR is above the market price indicating a downtrend.

Indicator window

1. Stochastic oscillator is on the SELL ZONE

HOW TO DEVELOP A HIGH PROBABILITY TRADING STRATEGY
(a template you can use)

Here’s the thing:

You may not be comfortable using my trading strategy because it

may not suit you.

So, what you need to do is, “tweak” it into something that fits you.
And this is what we’ll cover next…

I don’t think traders can follow rules for very long unless they
reflect their own trading style.How to develop a high probability trading strategy (a
template you
can use)

You can “mix and match” different trading techniques I’ve shared
with you earlier.

But ultimately, your trading strategy needs to answer these 7

questions:

1. How are you going to define a trend?

You can consider moving average, trendline, structure etc.

2. How are you going to define an area of value?

You can consider dynamic Support & Resistance, weekly
highs/lows, Stochastic etc.

3. How are you going to enter your trade?

You can consider pullbacks, breakouts, failure test, moving average
crossover etc.

4. How are you going to exit your trade?

5. How much are you going to risk on each trade?I would suggest risking no more than 1%
of your account on each
trade, to avoid the risk of ruin.

6. How are you going to manage your trade?

Will you scale out or scale in your trades? If so, how much?

7. Which markets will you be trading?

Are you focusing on one market or many markets?

If you trade a variety of markets, you want to be aware of the
correlation between markets.

FOUR TIPS TO ACHIEVE A GOOD FOREX TRADING DISCIPLINE

Four tips to achieve a good FOREX trading discipline.

Do you know the one quality that you should have which will make
you grow constantly in Forex trading? Do you know that lacking
this one quality will make you stuck in a plateau?

Many traders who do not see improvements anymore don’t

understand that they need to work on this one quality. It is nothing
but a good trading discipline.

If you think you are stuck without any further growth then this
post will be an eye-opener for you. Once you understand what isdiscussed here, you can
apply it in action; you will start seeing
improvements pretty soon.

Forex trading discipline is one of the most important traits that a

Forex trader should have to succeed in Forex trading. But trading
discipline is also one of the hardest things to master.

Laziness and negligence can be the biggest enemies of trading

discipline and can hinder your growth. Since trading is mostly
home-based, the nature of trading itself can increase your laziness.
We all know how discipline plays a very important role in
education and in the workplace. It is also crucial to ensure that you
survive in the Forex market and achieve your goals with higher
efficiency and less stress.
According to Mark Douglas, author of Trading in the Zone, self-
discipline is nothing but a mental technique to redirect our focus of
attention to the object of our goal or desire, when that goal or
desire conflicts with some other component of our mental
environment.
For example, you may want to sleep or fool around on an
important day when a good action is expected in the market.
Discipline helps you to take your inclination away from the desire
to sleep and makes you focus on what you need to do.

Self-discipline is not an inborn trait. You can actually practice and

develop a good trading discipline if you work hard enough.
It is true that it may seem difficult at first. But once you strictly
follow your schedule and maintain discipline for about a month, itwill become your second
nature. Here are some steps to develop a
trading discipline.

1. Set a concrete goal

In order to be disciplined in your endeavor, you must first set a
concrete goal. Can you travel anywhere if you don’t know where
you want to reach? Trading without a goal in mind can take you
nowhere.
So it is very important to set a goal first. Only a clearly decided goal
can set you in a motion that constantly goes forward in the
direction of growth.

Decide what exactly you want to achieve and put it in writing. It is

better to write it down as a mission statement and stick it right
above the screen that you usually work on.
When you write something, it goes deep inside your unconscious
mind; it gets reinforced whenever you read what you have written,
giving a clear idea in your mind.

When you choose a goal, make sure that it is realistic. Having

unrealistic and impractical goals will give you disappointment and
discourage you from trading further. So don't try to become a
millionaire in a few months or dream about doubling your account
in 30 days!

Setting a concrete and realistic goal is the first step to achieve a

good trading discipline. If you haven’t set a concrete goal, do that
today!

2. Keep a trading journal

Maintaining a trading journal and noting down your progress is a

good idea to keep your trading discipline strong. Recording
everything in a trading journal also lets you review it later.
You can write your mission statement, everyday plans, details of
trades placed, market observations and many other things in your
journal. There are really no restrictions on what you should write.
Why is journaling so important? Since our memory has limits, we
don’t remember all the useful ideas we get in our minds or all the
useful observations that we make. Unless we write them down, we
would forget most of the information.

When you review your trading journal later, you can learn many
things. It helps you a great deal in understanding your past
performance.

So, a trading journal helps you to be motivated and keep moving

towards your goal. If you are not using one, get started right away.

3. Create and stick to a schedule as part of your trading discipline

If you work a regular job, you will be expected to strictly follow the
timings of your workplace and your work schedule. In Forex, you
have the liberty to be your own boss and trade at any time.But this may also lead to
negligence. Human beings are not good at
sticking to their schedule if there is a lack of supervision, co-
operation, and assistance. A home-based environment is not well
suited to manage one’s time if there is no conscious effort.
It is very important to create and stick to a schedule to do anything
in an organized way. So decide the timings and the number of
hours that you will be trading every day and follow it as perfectly
as possible. This is an important thing to keep in mind if you want
to develop a trading discipline.

4. Be patient
Trading requires a lot of patience. If you don’t have enough
patience, it is very hard to survive.
First, you have to have the patience to wait for a quality trade set
up. Many new traders do not have that and they end up chasing the
market. The market is not filled with trading opportunities all the
time. So you have to wait until you see a good set up, which usually
takes time to materialize.
Second, you have to be very patient and wait a long time before
you can see good results in trading. Many new traders are likely to
give up in the beginning. Success in trading takes many years and
nothing happens overnight.
Aristotle said that patience is bitter but the fruit is sweet. That is
true. In order to taste the fruit of success in the Forex market, a
good amount of patience is required.When there are no deadlines in trading, why should
you worry
about accomplishing anything very quickly? Nobody would fire
you if you do not meet your goals on time. So you have all the time
in the world to succeed.
Developing patience develops trading discipline and makes you
focused on your goal. So patience is very important if you want to
develop your trading discipline.
 Epilogue

YOU HAVE FINISHED this book. What you have read?

Simply is a series of practical and workable techniques for a successful trading career.
You have read a formula of a powerful strategy. As you practice and master it well it
should help you win victory over every defeat.

Working examples have been revealed while you were reading this book. Now please
go back and persistently practice each technique given in this book. Keep at it until
you obtain the desired results.

I wrote this book out of sincere desire to help you. It will give me great happiness to
know that the book has helped you. I have absolute confidence and belief in the
principles and methods outlined in this volume. They have been tested in practical
demonstrations. They work when worked.

We may never meet in person, but in this book we have met. I wish you a happy and
successful trading journey.

SIMANGA THAMI NHAMBOSE