0% found this document useful (0 votes)
77 views14 pages

Trade

The document outlines trading strategies focusing on support and resistance (SNR) levels, emphasizing the importance of trading within these levels and using confirmation tools for successful trades. It discusses various market types, candle psychology, and trading patterns, providing guidelines for identifying good trading conditions and managing capital effectively. Key rules include trading with the trend, using confirmation candles, and understanding market momentum to enhance trading success.

Uploaded by

mahmoudsaid619
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
0% found this document useful (0 votes)
77 views14 pages

Trade

The document outlines trading strategies focusing on support and resistance (SNR) levels, emphasizing the importance of trading within these levels and using confirmation tools for successful trades. It discusses various market types, candle psychology, and trading patterns, providing guidelines for identifying good trading conditions and managing capital effectively. Key rules include trading with the trend, using confirmation candles, and understanding market momentum to enhance trading success.

Uploaded by

mahmoudsaid619
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 14

Lec1 SNR is an area where the where the price changes from going up to down or the inverse and

consist of support and resistance lines

We draw two lines so it become a level not just a line so make our trade easier

 Signs of a strong level


 The markets don’t break it more than once
 Must have a strong momentum
 When the market reversed from this level should be reversed with moderate or strong candle
The SNR divided into 3

 Horizontal lines
 The round number
 Trend lines

 The trend lines drawn from two points where the buyers enter and two points where the sellers
enter
 The facconaci tool is drawn by two methods:-
 the higher high to the lower low in down trends
 from the lower low to the high high in up trends

We can use the price bar to find a good level from the past and determine whether it’s a strong level or
not so we can take the trade or don’t
Lec2 to have 90% successful trade we have to follow 3 rules

1. The trade must be taken within a level not in the middle of the level

2. Don’t take trades opposite to the trend always take it with the trend wave
 Types of trends
o Minor up/down trend (just in the present time)
o Major up/down trend (in the general chart)

We can take trade in the major or minor trend but it is better to trade on the minor
3. Confirmation tools
 Confirmation candle (5/15)
 Weak(candle tail/rejection)

How to use the confirmation tool

 If we have rejection like here on the red candle we take the trade
 if we don’t the rejection the candle we use the 5/15 method

We open the 5 second frame in 1 minute trade and see confirmation candle within the first 30 second of
the1 min candle

If we trade on 5 minutes candles we can’t use the 5 second frame and we use the 15 second frame

If we saw it we take the trade if we didn’t we skip the trade like this one we have down trend we
opened

5 second frame and looked for confirmation candle we are taking down trade so we will look in the red
candles and it should be moderate candle as large candles reverse the market

Here we have uptrend we used vertical lines in the frame of one minute to use the candle accurately
then we opened 5 seconds frame and looked for moderate green candle without tail and took our trade
from there

Now how to trade in the 5 minute frame

In this case if the confirmation came after large candle it can be risky to take this trade as large candle
reverse the market even the confirmation candle came after the large candle
Here the confirmation candle appeared the first candle so we took our trade and it was successful

If we want to take a trade without level we should follow the margin safety like here:-

We have uptrend we wait for strong green candle the take the trade in the next candle when it falls to
its lower state and take the trade but it’s not preferred
Lec3

Types of the market

 trendy market
 ranging market

In the trending market we use the trend lines to trade but in the ranging market we trade with the
horizontal lines

Lec4

Types of the market break out

 real break (when candle closes after the level the next candle return and closes before the level)
 fake break(the next candle closes after the level )

Now how to differentiate between the real and fake break out we use the confirmation tools as
mentioned before (5/15) method like in this example we use the vertical line to look accurately at the
candle then open the 5 second frame and look for moderate red candle in the first 6 candles if we found
it means the sellers are coming back and the trade will be closed with red candle if we didn’t found the
confirmation candle then its real break through the level
In this example we found the confirmation candle but we can’t take the trade because the red candle
closed on the level and we have a break through the level so it must close after the level not on the level
so we skipped this trade

In this case the level we have have been tested more than one but in the third time there were strong
momentum for the sellers so there is a risk going with the buyers so we used confirmation candle and
took our trade but if we saw strong momentum for the buyer we now know that the level won’t be
broken as happened before

In condition the level faced strong momentum for the sellers it can face it again without breaking it

We also can notice the movement of the market in the trend as the market makes lower bottom every
time it reaches the previous one but when it makes a peak then things turned and the market tries to
reverse itself with an up trend
Here another example with hand drawing

And this one for the up trend

Lec5 phycology of the candles

How to merge two candles to predict the next one if we are not going to trade on a level

If we have two candles like this


If we merged it the result will be the shaded part will be the tail and the remaining

Will be the body like this so the market will go down

Another example here the market will go up

Examples for the candles phycology:-

 First the hammer candle:-

Why this candle will go down as the seller entered from this point And the buyer will enter from the
other point in this candle the sellers closer to closing Point © so this candle indicate the market will go
down in the resistance level

In case it came on support level

The support level changes the condition and will cause the next candle goes up

In case of green hummer it is treated in the same manner of the red candle in the SNR

In this candle phycology it indicates to going down

Because of presence of two sellers

Inverted hummer

Here in the inverted the closing point near to buyer so to its psychology it indicate to going up and if
there is levels it treated as the normal hummer

 Spinning top candle

The red one means the buyers are coming so the market will go up as the tail indicate the buyers
resistance the sellers strongly so the the market going up

While the green one indicate going down for the same reason
And if there is a level like support or resistance the market

Goes up with support and goes down with resistance

 The dogi candle

This candle means we don’t know which will dominate the market but if we so it on a level we treated it
like the other candle and in the trend it will be continues

 Marbozo candle

It is treated on the levels as the other but away from the levels we should not take the trade because
they might change the market

 Exhausted candle

This is very strong candle which lead to exhausted the buyer on the level and sellers come and vice versa

 What is the difference between the rejection and the new(high/low)

If the candle closed in the level and the tail penetrate the level this called rejection

But if the candle closed before the level and the tail didn’t reach the tail this called

New low this mean a new red candle can appear to reach the level

New high means new green candle will appear to reach the level

 The momentum

The momentum means strong enter to the buyers or sellers where when the level stop it this means the
level is strong so we can depend on it if the candles reached it again

 If we had and up momentum this mean we will have down momentum after we reach the level
 the level deflect a momentum once is strong level we can depend on when another momentum
come
 And if there is a break out 90% its fake as the level is strong
Lec6 trading pattern

1. Engulfing pattern

Usually used in forex but we use it in binary options as assisting factor and it have to forms

 Bullish

 Perch

As mentioned we use it as helping factor to confirm the the trade here is how we use it

 In case we have a level then it confirm that we can go with up trade


 In case of trends we go with the trend
 If we have momentum for the sellers and engulfing pattern appear we don’t go for a trade

2. Morning star pattern

It consist of 3 candles red candle followed by doji or spinning top and green candle couldn’t reach the
first candle we take the next candle here down trade

3. Evening star

Is the inverse of the morning star

We take here up trade

But these two patterns give us 50% chance of getting the trade and usually used in forex

4. The important pattern


 double (up/down) pattern

We here have a level when the candles touch it

twice we take the second candle down trade and vice versa
 The head and shoulder pattern

Here in this pattern we have level where the candles make

pattern which is like head and shoulder

it happens as the level respect the level for first time

then break it in second time and goes below it again and

respect it in the third time where we take our trade at this point as down trade

and vice versa in the down level we take up trade

Lec7
How to trade on the right pair of currency
The signs for bad market
 Candles have a lot of rejections or tail
 Market have consolidation area
 Market have a lot of reverse patterns like doji, spinning top, etc.
Signs of the good market
 Having trending market
 Few tails or rejections on the candles
 There is a momentum in the market
 Candles have mid-size
How to manage your capital
We should use 1% of our money per trade to minimize the loss percentage and
have the ability for compensation
And if we had bad trading day after 2 or 3 losses we should stop trading and trade
again the next day or when you feel ready again
We should not start trading in real account until our winning probability reach
70%

_____________________________________________
End of the course

You might also like