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Contents:
Page 1: Contents
Page 2: Price Bars
Page 3: The Daily Chart
Page 4: The Daily Chart (Support and Resistance)
Page 5: The Daily Chart (Support and Resistance Continued)
Page 6: The Daily Chart (Price Movements)
Page 7: The Daily Chart (Price Movements Continued)
Page 8: Price Action Signals part 1
Page 9: Price Action Signals part 2
Page 10: Price Action Signals part 3
Page 11: Price Action Signals part 4
Page 12: The Intraday Charts (4 Hour)
Page 13: The Intraday Charts (1 Hour)
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HIGH
HIGH
CLOSE
HIGH
OPEN
OPEN
CLOSE
CLOSE
OPEN
LOW
LOW
LOW
Valid Downtrend
Valid Uptrend
If price is making lower
highs and lower lows, the
trend is considered down.
A
A
A
B
B
B
B
B
B
A
A
B
B
A
A
Module 2 Extras
(Price Action Signals)
In the Forex market, Price Action Signals refer to visual setups that occur at key levels of support and resistance which can
cause the market to change direction. If we can understand the signals, they can be enormously profitable when used correctly.
Below are some of the most important Price Action Signals that we need to look for when trading (especially on the Daily
Chart).
(Bullish Signal)
(Bearish Signal)
Module 2 Extras
(Price Action Signals)
Module 2 Extras
(Price Action Signals)
Please Note: These price action signals are only valid at key support or resistance areas and are reversal signals. That means that the
preceding trend must be different to the Price Action Signal. E.g. we must have a downward trend that is in front of a Bullish
Engulfing Bar/or we must have an upward trend that occurs before a Pin Bar Reversal. In addition, price needs to CONFIRM that they
are valid by taking out the low/high of the signal bar. For example, if we had a bullish Pin Bar but we did not take out the high the
signal is considered as weak. On the other hand, if we had a Bearish Engulfing Bar and the next bar took out the low this is a strong
signal that the sellers are gaining control of the market.
Module 2 Extras
(Price Action Signals)
The final Price Action Signal that you will see is called an Inside Bar Pattern. This means that a price bar has been formed, but the
one after is INSIDE the previous (i.e. it did not break the high or low). These setups are the most strongest on the DAILY CHART. I do
not use them on the 1 Hour Chart or the 4 Hour Chart. They are almost like a coiled spring and the next bar will usually be an
explosive move.
A
8am bar one hour into Londons
trading. Prime example why we don't
look at price action on the one hour
chart as this is a pin bar and you
would expect price to move upwards
on a higher time frame. It doesn't
here and continues falling
throughout the trading day.
A
B
WE DO NOT TRADE WHEN THE MOVING AVERAGES ARE MOVING SIDEWAYS OR IF THEY ARE CLOSE TOGETHER = NO TREND.
Brief stalling at
Point 5 possibly
due to small
profit taking
50EMA holding as
support
50EMA broken
BEARISH
WARNING
MACD makes
lower high
(8am GMT)
London Breaks the
Pivot Line during
their opening hour
of trade
Volume starting
to increase =
Trade Initiation
Module 8 Examples
Pivot Line breaks during the start of the London Session, starts to move down. Due to the strong downtrend of the Daily
and test of 50EMA on 1 hour the trend continues throughout the session. Even though we had a buyer day previously off
of a support area, we still pushed lower. This is a prime example of why we trade with London they broke the Pivot,
indicating that the currency is ready to be sold again.
Module 8 Examples
This is a great trade example. Initially we start with the Daily failed to close below the 50EMA indicating that there is buying pressure. In addition, Pin
Bar Price action Signal on Daily. 1 Hour 7am Bar was a beautiful test of the 50EMA, as soon as the Pro Traders started in London they started buying
the AUD/USD. In addition to the 50EMA on the 1 Hour, price was holding as support above the PIVOT LINE. As you can see, the market ran for in excess
of 40 Pips and the Professionals took their profits around R1.
Dear Trader,
Thank you for viewing the Forex-e-Learn PDF Course.
We hope that you have learned a lot and now it is time for you to apply your knowledge. Please be aware
that becoming a profitable Currency Trader does not happen overnight. No matter how good the strategy
is, it is up to you to apply the discipline and psychology also.
Loosing trades will occur it is the cost of doing this business. However, the number of profitable trades, if
executed correctly, will heavily outweigh them. We at Forex-e-Learn are here for you every step of the way
throughout your trading career.
Please do not hesitate to get in contact with us at any time if you have any queries.
Best Wishes and Happy Trading,