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    FOREX 101:Mastery for Beginner and

    Intermediate Traders

    Welcome

    Day 1

    Copyright, 2014 Chima Burey.

    All rights reserved.

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    [ Disclaimer ]

    CHIMABUREY.com is an online educational web site only. Information contained throughout the site may be provided by sources that are not affiliatedwith CHIMABUREY.com. The accuracy, reliability of such information is believed to be reliable. However, CHIMABUREY.com does not warrant the

    accuracy, completeness, quality, adequacy, or content of any information on our website. Such information is provided as is without warranty or

    condition of any kind, either expressed or implied, including without limitation the implied warranties of merchantability or fitness for a particular

    purpose. CHIMABUREY.com may include inaccuracies and/or typographical errors. The information provided herein is general and is not tailored to any

    specific portfolio. Reliance on all the data or any other information is at users own risk. In no event will CHIMABUREY.COM be liable for any direct,

    exemplary, punitive, consequential, incidental, special or indirect damages arising from use of theinformation. User agrees that CHIMABUREY.COM does

    not make any representations or warranties, expressed or implied, with respect to the trading information, recommendations, or accuracy or

    completeness thereof, including, without limitation, any implied warranties or any warranties of merchantability, timeliness, quality or fitness for a

    particular purpose, and those arising by statute or otherwise in law or from any course of dealing or usage of trade. None of the information constitutes

    a solicitationby CHIMABUREY.COM to buy or sell anysecurities, options, futuresor other investment products.

    Past performances are not necessarily indicative of future results. There is risk involved in futures, options, equities and FOREX trading and it is notsuitable for everyone. The risk of loss in trading can be substantial. Futures trading is highly leveraged and may be illiquid. You should therefore carefully

    consider whether such trading is suitable for you in light of your financial condition, financial objectives and needs, financial resources, and other

    relevant circumstances. Generally, foreign securities, options, futures and currency transactions involve exposure to a combination of the following risk

    factors: market risk, credit risk, settlement risk, liquidity risk, operational risk and legal risk. For example, there may be serious market disruptions if

    economic or political or other unforeseen events locally or overseas affect the market. In addition to these types of risk there may be other factors such

    as accounting and tax treatment issues that traders should consider. Day trading may be extremely risky. Day trading generally is not appropriate for

    someone of limited resources and limited investment or trading experience and low risk tolerance. You should be prepared to lose all of the funds that

    you use for day trading. In particular, you should not fund day-trading activities with retirement savings, student loans, second mortgages, emergency

    funds, funds set aside for purposes such as education or home ownership, or funds required to meet your living expenses. Further, certain evidence

    indicates that an investment of less than $50,000 will significantly impair the ability of equity day trader to make a profit. Of course, an investment of

    $50,000 or more will in no way guarantee success. User represents that user understands, is aware of, willing and able to assume the risks described

    above.You willbe solely responsible for decisionsregardingthe trading conducted in your account.

    The information contained herein is the property of CHIMABUREY.COM and is protected by applicable copyright law. User agrees not to reproduce, re-

    transmit, disseminate, sell, distribute, publish, broadcast, circulate or commercially exploit the Information in any manner without the express written

    consent of CHIMABUREY.COM or the providers.CHIMABUREY.COM reserves the right to terminateaccessto informationcontained herein.

    By accessing thisinformationyou are acknowledgingyourunderstandingand consentto the foregoing andshall not hold CHIMABUREY.COM liable.

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    FOREX 101:Mastery for Beginner and

    Intermediate Traders

    The rich invest in time, the poor invest in money.

    -Warren Buffet

    Introduction

    Day 1

    Copyright, 2014 Chima Burey.

    All rights reserved.

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    [ Introduction ]

    What you will learn, and what to expect from Day 1:

    - FOREX Foundations

    - FOREX Terminology and Market Structure

    - Currency Pairs

    - What is a PIP?

    - Understanding a Currency Chart

    - How to read a chart

    - Different types of charts

    - Understanding Candlesticks

    - 13 bars to success

    - Law of Momentum

    - The 4 trading time frames

    - The 3 analytical timeframes

    - Moving Averages

    - Continuation: The Power of Follow Through- Understanding market movement

    - Pivot Highs and Pivot Lows

    - Trailing Stops: How to lock in profit

    - Spotting the three market trends

    - Q&A

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    FOREX 101:Mastery for Beginner and

    Intermediate Traders

    FOREX FoundationsDay 1

    Copyright, 2014 Chima Burey.

    All rights reserved.

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    [ FOREX Foundations ]

    What is FOREX?

    FOREX means Foreign Exchange Market and it is a global market

    where world currencies can be traded against its other.

    The FOREX market is huge, with daily volumes of about four trillion

    dollars. It is the most liquid financial market in the world.

    FOREX currencies fluctuate according to actual monetary flows, but

    additionally according to anticipations about global economic

    conditions.

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    [ FOREX Foundations ]

    The History of FOREX?

    Prior to 1971, speculation was not permitted in the currency markets due

    to something called the Bretton Woods Agreement.

    The Bretton Woods Agreement was set up in 1945 with the purpose of

    stabilizing international currencies and preventing money fleeing across

    nations.

    This agreement fixed all national currencies against the dollar and set the

    dollar at a rate of $35 per ounce of gold.

    In 1971, the Bretton Woods Agreement was finally abandoned, and theUS dollar was no longer convertible to gold.

    By 1973, currencies of the major industrialized nations were floating

    more freely, helped by the forces of supply and demand.

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    [ FOREX Foundations ]

    The History of FOREX?

    Prices were set, with volumes, speed and price volatility, all increasing

    during the 1970s. This guided the way to new financial instruments,

    market deregulation and open trade. It also led to a rise in the power of

    speculators.

    Accelerated with the arrival of computers during the 1980s, the

    movement of money across borders became a continuum, trading

    through the Asian, European and American time zones.

    The big banks created dealing rooms where hundreds of millions of

    Dollars, Euros, Pounds and Yen were exchanged within minutes.

    Today electronic brokers trade daily in the FOREX market.

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    [ FOREX Foundations ]

    The History of FOREX?

    The market has changed considerably with the majority of international

    financial transactions being carried out not just to buy and sell goods but

    to speculate on the market with the intention of most dealers being to

    make money out of money.

    London has developed to become the worlds leading international

    financial center and is the worlds largest FOREX market. This occurred

    due to its location, operating during the American and Asian markets, as

    well as its creation of the Euro-Dollar market.

    The Euro-Dollar market was created during the 1950s when Russia's oil

    revenue, which was all in US dollars, was deposited outside the US withthe concern of being frozen by US authorities.

    By 1996, FOREX trading became more practical when new market makers

    took advantage of developments in web-based technology.

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    [ FOREX Foundations ]

    Who Participates in the FOREX Market?

    FOREX market incorporates many different types of participants, the most

    important are:

    1. Central and Commercial Banks

    2. International Trade Companies

    3. FOREX Brokerage Companies

    4. Large, Medium and Small Institutions (Investment Companies, Hedge Funds)

    5. Common Retail Traders

    6. World Travelers

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    [ FOREX Foundations ]

    FOREX Market Hours?

    Usually, the best time to enter FOREX markets is when large volumes of currencies

    are being traded. At those hours, traders can take full advantage of FOREX

    benefits.

    Since the FOREX market trades 24 hours a day, the best time to enter is whenseveral countries are trading at the same time. In each time zone across the world,

    FOREX markets operate from 8am to 4pm.

    So, to take advantage of heavy trading volume, its worthwhile to determine when

    the FOREX market hours in different countries overlap. The more countries

    actively trading, the larger the trading volume and the bigger the PIP movements.

    When currencies are the most active, thats when traders have a better chance of

    making a profit. Slow markets offer little chance of profit and therefore FOREX

    traders usually stay away.

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    [ FOREX Foundations ]

    FOREX Market Hours?

    FOREX Trading Hours (EST):

    Sydney: 5pm - 1amTokyo: 7pm - 3am

    Singapore/Hong Kong: 9pm - 5am

    Frankfurt: 2am - 10am

    London: 3am - 11am

    New York: 8am - 4pm

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    FOREX 101:Mastery for Beginner and

    Intermediate Traders

    FOREX Terminology and Market Structure

    Day 1

    Copyright, 2014 Chima Burey.

    All rights reserved.

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    [ FOREX Terminology and Market Structure ]

    Major Currency Acronyms

    GBP = Great British Pound

    EUR = Euro

    CHF = Confoederatio Helvetica Franc (Swiss Franc)

    USD = United States Dollar

    CAD = Canadian Dollar

    JPY = Japanese Yen

    AUD = Australian Dollar

    NZD = New Zealand Dollar

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    [ FOREX Terminology and Market Structure ]

    Common Terms

    Ask (Offer) price of the offer, the price you buy for.

    Bank Rate the percentage rate at which central bank of a country lends money to the

    country's commercial banks.

    Bid price of the demand, the price you sell for.

    Broker the market participating body which serves as the middleman between retail traders

    and larger commercial institutions.

    CFD a Contract for Difference special trading instrument that allows financial speculation

    on stocks, commodities and other instruments without actually buying.

    Commission broker commissions for operation handling.

    EA (Expert Advisor) an automated script which is used by the trading platform software to

    manage positions and orders automatically without (or with little) manual control.

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    [ FOREX Terminology and Market Structure ]

    Common Terms

    Fed (Federal Reserve) the main regulatory body of the United States of America financial

    system, which division FOMC (Federal Open Market Committee) regulates, among other

    things, federal interest rates.

    Flat (Square) neutral state when all your positions are closed.

    Fundamental Analysis the analysis based only on news, economic indicators and global

    events.

    Gap a difference between the previous period's close price and the next period's open

    price. In FOREX usually only occurs during weekends between the Friday's close and the

    Monday's open price.

    Market Order order to buy or sell a lot for a current market price.

    Market Price the current price for which the currency is traded for on the market.

    Spread difference between ask and bid prices for a currency pair.

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    [ FOREX Terminology and Market Structure ]

    Market Structure Hierarchy

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    [ FOREX Terminology and Market Structure ]

    Centralized Market

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    [ FOREX Terminology and Market Structure ]

    Decentralized Market

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    FOREX 101:Mastery for Beginner and

    Intermediate Traders

    Currency Pairs

    Day 1

    Copyright, 2014 Chima Burey.

    All rights reserved.

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    [ Currency Pair ]

    What is a Currency Pair?

    A currency pair is the quotation of the relative value of a currency unit

    against the unit of another currency in the foreign exchange market.

    The first currency of a currency pair is called the base currency, while

    the second currency is called the counter currency. The currency pair

    shows how much of the counter currency is needed to purchase one

    unit of the base currency.

    USD/JPY

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    [ Currency Pair ]

    What is a Base Currency ?

    The first currency quoted in a currency pair on FOREX. It is also typically

    considered the domestic currency or accounting currency. For

    accounting purposes, a firm may use the base currency to represent allprofits and losses.

    It is sometimes referred to as the "primary currency.

    USD/JPY

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    [ Currency Pair ]

    What is a Quote Currency ?

    The second currency quoted in a currency pair in FOREX. In a direct

    quote, the quote currency is the foreign currency. In an indirect quote,the quote currency is the domestic currency.

    Also known as the "secondary currency" or "counter currency.

    USD/JPY

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    [ Currency Pair ]

    Most Popular Currency Pairs

    EUR/USD

    GBP/USD

    AUD/USD

    USD/CAD EUR/JPY

    NZD/USD

    USD/CHF

    USD/JPY

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    FOREX 101:Mastery for Beginner and

    Intermediate Traders

    What is a PIP?

    Day 1

    Copyright, 2014 Chima Burey.

    All rights reserved.

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    [ What is a PIP? ]

    What does PIP mean?

    A PIP is a very small measure of change in a currency pair in the FOREX

    market.

    It can be measured in terms of the quote or in terms of the underlying

    currency.

    A PIP is a standardized unit and is the smallest amount by which a

    currency quote can change, which is usually $0.0001 for U.S. dollarrelated currency pairs, which is more commonly referred to as

    1/100th of 1%, or one basis point.

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    [ What is a PIP? ]

    What does PIP mean?

    A retail example:

    At your local coffee shop, a cappuccino is sold for $3.49.

    However, in the FX market that cup of coffee is quoted

    at 3.49000. The change in that fourth decimal point is

    called 1 PIP. The 5th and final decimal place measures a

    fraction of a PIP.

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    [ What is a PIP? ]

    Understanding a Currency Quote

    AUD/USD

    0.89305 0.89396

    Youve just completed your first trade of the day, you went

    long the AUD/USD currency pair.

    How many PIPs did you make?

    9.1 PIPs

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    [ What is a PIP? ]

    Understanding a Currency Quote

    Account Types

    Micro

    Mini

    Standard

    1K

    10K

    100K

    $0.10

    $1.00

    $10.00

    Contract Size PIP Value

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    [ What is a PIP? ]

    Understanding a Currency Quote

    AUD/USD 0.89305 0.89396

    Now that you have calculated how many PIPs, How much money did you make?

    In a mini (10k) account, each PIP is worth roughly one unit of the currency in which your

    account is denominated. If your account is denominated in USD, for example, each PIP

    (depending on the currency pair) is worth about $1.

    9.1 PIPs X $1/PIP = $9.10

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    [ What is a PIP? ]

    Understanding a Currency Quote

    Account Types

    Micro

    Mini

    Standard

    1K

    10K

    100K

    $0.10

    $1.00

    $10.00

    Contract Size PIP Value

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    [ What is a PIP? ]

    FOREX Volume vs. Equity Markets?

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    [ What is a PIP? ]

    Average Daily Range

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    [ What is a PIP? ]

    Average PIP Range by Day of the Week

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    [ What is a PIP? ]

    Average PIP Range by Trading Session

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    [ What is a PIP? ]

    ATR: Asian Session

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    [ What is a PIP? ]

    ATR: European Session

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    [ What is a PIP? ]

    ATR: U.S. Session

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    FOREX 101:Mastery for Beginner and

    Intermediate Traders

    Understanding a Currency Chart

    Day 1

    Copyright, 2014 Chima Burey.

    All rights reserved.

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    [ Understanding a Currency Chart ]

    US500 (S&P 500)

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    [ Understanding a Currency Chart ]

    EUR/USD

    Which one is the base currency

    and which one is the quote

    currency?

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    [ Understanding a Currency Chart ]

    EUR/USD

    EUR: Loses Value

    USD: Gains Value

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    [ Understanding a Currency Chart ]

    EUR/USD

    EUR: Gains Value

    USD: Loses Value

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    FOREX 101:Mastery for Beginner and

    Intermediate Traders

    How to Read a Chart

    Day 1

    Copyright, 2014 Chima Burey.

    All rights reserved.

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    [ How to Read a Currency Chart ]

    EUR/USD

    Base Currency: Euro Dollar

    Quote Currency: US Dollar

    H4: Bars are displayed in 4 hour segments

    Price Quote Order: OPEN HIGH LOW - CLOSE

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    [ How to Read a Currency Chart ]

    NZD/USD

    Base Currency: New Zealand DollarQuote Currency: US Dollar

    M15: Bars are displayed in 15 minute segments

    Price Quote Order: OPEN HIGH LOW - CLOSE

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    FOREX 101:Mastery for Beginner and

    Intermediate Traders

    Different Types of Charts

    Day 1

    Copyright, 2014 Chima Burey.

    All rights reserved.

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    [ Different Types of Charts ]

    Line Chart

    The most basic of the four charts is the line chart because it represents

    only the closing prices over a set period of time. The line is formed by

    connecting the closing prices over the time frame.

    Line charts do not provide visual information of the trading range for the

    individual points such as the high, low and opening prices.

    However, the closing price is often considered to be the most important

    price in currency quote compared to the high and low for the day andthis is why it is the only value used in line charts.

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    [ Different Types of Charts ]

    Line Chart

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    [ Different Types of Charts ]

    Bar Chart

    The bar chart expands on the line chart by adding several more key pieces of information to

    each data point. The chart is made up of a series of vertical lines that represent each data

    point.

    This vertical line represents the high and low for the trading period, along with the closingprice.

    The close and open are represented on the vertical line by a horizontal dash. The opening

    price on a bar chart is illustrated by the dash that is located on the left side of the vertical

    bar. Conversely, the close is represented by the dash on the right.

    Generally, if the left dash (open) is lower than the right dash (close) then the bar will beshaded green, representing an up period for the pair, which means it has gained value.

    A bar that is colored red signals that the stock has gone down in value over that period.

    When this is the case, the dash on the right (close) is lower than the dash on the left (open).

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    [ Different Types of Charts ]

    Bar Chart

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    [ Different Types of Charts ]

    Candlestick Chart

    The candlestick chart is similar to a bar chart, but it differs in the way that it is

    visually constructed.

    Similar to the bar chart, the candlestick also has a thin vertical line showing theperiod's trading range.

    The difference comes in the formation of a wide bar on the vertical line, which

    illustrates the difference between the open and close. And, like bar charts,

    candlesticks also rely heavily on the use of colors to explain what has happened

    during the trading period.

    When the price of the pair is up and closes above the opening trade, the

    candlestick will usually be green. If the pair has traded down for the period, then

    the candlestick will usually be red.

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    [ Different Types of Charts ]

    Candlestick Chart

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    [ Different Types of Charts ]

    Point and Figure Chart

    Conventional technical-analysis charts tend to be the open-close/high-low chart. In the creation

    of P&F, the emphasis is only on the closing price of the currency pair. The developers of P&F

    charting were interested in trend development and thus were concerned not with the noise

    created daily by minor moves up or down, but with the larger picture and how that plays out in

    the areas of supply and demand.

    The key to P&F charts is the establishment of the unit of price, which is the unit measurement

    of a price movement that is plotted on the graph. On P&F charts, there is no time axis, only a

    price axis. Rising currency prices are shown with X's and falling prices are shown with O's. These

    points appear on the chart only if the price moved at least one unit of price in either direction.

    So say the closing prices of the Euro moved up one price unit three times. This would appear as

    a column of three X's. If the price movement reverses direction, the chart shows a new columnof O's, wherein an O is plotted for each unit of price movement. X's and O's never appear in the

    same column. The chartist, however, must establish how many price units make up a box, which

    is how much the price must move in the opposite direction for the chart to begin a new

    column.

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    [ Different Types of Charts ]

    Point and Figure Chart

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    FOREX 101:Mastery for Beginner and

    Intermediate Traders

    Understanding Candlesticks

    Day 1

    Copyright, 2014 Chima Burey.

    All rights reserved.

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    [ What is a Candlestick? ]

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    [ What is a Candlestick? ]

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    [ What does it all mean? ]

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    FOREX 101:Mastery for Beginner and

    Intermediate Traders

    13 Bars to Success

    Day 1

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    All rights reserved.

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    [ 13 Bars to Success ]

    5 Bullish Candles Found in Trading

    Bullish

    Wide-Ranging

    Bar

    Bullsih

    Hammer

    (Pin Bar)

    Bullish

    Normal Ranging

    Bar

    Bullish

    Doji

    Bullish

    Inverted Hammer

    (Pin Bar)

    Strongest Weakest

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    [ 13 Bars to Success ]

    Bearish

    Wide-Ranging

    Bar

    Bearish

    Inverted

    Hammer

    (Pin Bar)

    Bearish

    Normal Ranging

    Bar

    Bearish

    Doji

    Bearish

    Hammer

    (Pin Bar)

    5 Bearish Candles Found in TradingStrongest Weakest

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    reserved.

    [ 13 Bars to Success ]

    Dragonfly

    Doji

    Standard

    Doji

    Gravestone

    Doji

    Strongest Weakest

    3 Colorless Candles Found in Trading

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    FOREX 101:Mastery for Beginner and

    Intermediate Traders

    13 Bars to Success : Candlestick Math

    Day 1

    Copyright, 2014 Chima Burey.

    All rights reserved.

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    [ Candlestick Math ]

    HighHigh

    LowLow

    HighHigh

    LowLow

    Bulls are in Good control

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    [ Candlestick Math ]

    HighHigh

    LowLow

    HighHigh

    LowLow

    Bulls are in Good control

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    [ Candlestick Math ]

    HighHigh

    LowLow

    HighHigh

    LowLow

    Bears are in Good control

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    [ Candlestick Math ]

    HighHigh

    LowLow

    HighHigh

    LowLow

    Bears are in Good control

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    [ Candlestick Math ]

    HighHigh HighHigh

    LowLowLowLow

    Bulls have Weak control

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    [ Candlestick Math ]

    HighHigh HighHigh

    LowLowLowLow

    Bulls have Weak control

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    [ Candlestick Math ]

    Bears have Weak control

    HighHigh

    LowLow

    HighHigh

    LowLow

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    [ Candlestick Math ]

    Bears have Weak control

    HighHigh

    LowLow

    HighHigh

    LowLow

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    [ Candlestick Math ]

    Bulls have Lost control

    HighHigh HighHigh

    LowLowLowLow

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    [ Candlestick Math ]

    Bulls have Lost control

    HighHigh HighHigh

    LowLowLowLow

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    [ Candlestick Math ]

    Bears have Lost control

    HighHigh

    LowLow

    HighHigh

    LowLow

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    [ Candlestick Math ]

    Bears have Lost control

    HighHigh

    LowLow

    HighHigh

    LowLow

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    [ Candlestick Math ]

    Bulls have Totally Lost control

    HighHigh

    LowLow100%

    HighHigh

    LowLow

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    [ Candlestick Math ]

    Bulls have Totally Lost control

    HighHigh

    LowLow100%

    HighHigh

    LowLow

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    [ Candlestick Math ]

    Bears have Totally Lost control

    HighHigh

    LowLow

    100%

    HighHigh

    LowLow

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    [ Candlestick Math ]

    Bears have Totally Lost control

    HighHigh

    LowLow

    100%

    HighHigh

    LowLow

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    [ Candlestick Math ]

    Bears have Totally Lost control

    HighHigh

    LowLow

    100%

    LowLow

    HighHigh

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    [ Candlestick Math ]

    Bears have Totally Lost control

    HighHigh

    LowLow

    100%

    LowLow

    HighHigh

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    [ Candlestick Math ]

    Bulls have Totally Lost control

    HighHigh

    LowLow100%LowLow

    HighHigh

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    [ Candlestick Math ]

    Bulls have Totally Lost control

    HighHigh

    LowLow100%LowLow

    HighHigh

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    [ Exercise: Candle Identif ication ]

    What do you see?

    1. __________

    2. __________

    3. __________

    5. __________

    4. __________

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    FOREX 101:

    Mastery for Beginner andIntermediate Traders

    "I will tell you how to become rich. Close the doors.

    Be fearful when others are greedy. Be greedy

    when others are fearful.

    -Warren Buffet

    13 Bars to Success: Excitable Events

    Day 1

    Copyright, 2014 Chima Burey.

    All rights reserved.

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    [ Excitable Events ]

    Its All About Emotion

    Understanding how to interpret candlestick pattern is like

    learning a new language.

    Coupling an event (Candlestick Patterns) along with a

    location (Support and Resistance) gives the trader the

    best opportunity to read the emotion of the market.

    There are certain Candlestick patterns that indicate serious

    cash flow in the market. These are the key to understandingmarket direction.

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    [ Excitable Events ]

    Its All About Emotion

    Bullish Bearish

    Excitable Events are always 2-3x bigger that the average size candle

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    [ Exercise: Exci table Events ]

    Which ones are

    Excitable Events?

    1

    2

    3

    4

    5

    6

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    [ Excitable Events ]

    Its All About Emotion

    Cash flow and volatility rule the markets. Candlesticks help with

    understanding the amount of fear and greed thats currently in

    the market.

    Spotting exactly when these emotions take place are vital to getting

    into a trade before its too late.

    Remember: Seeing greed gets you into the market, recognizing fear

    gets you out.

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    [ Excitable Events ]

    Its All About EmotionCan you spot the fear and

    greed?

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    [ Excitable Events ]

    Its All About EmotionGREED

    FEAR

    The gap in the priceaction show the

    aggressiveness of the

    buyers.

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    [ Excitable Events ]

    Its All About EmotionGREED

    FEAR

    Notice: Back-to-back excitable

    events at the end of a run is asign that the current trend

    may be in trouble.

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    [ Excitable Events ]

    GREED

    FEAR

    1

    2

    3

    4

    5

    6Exercise: Describe what

    makes each event important.

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    FOREX 101:Mastery for Beginner and

    Intermediate Traders

    Law of Momentum

    Day 1

    Copyright, 2014 Chima Burey.

    All rights reserved.

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    [ Law of Momentum ]

    Something to Remember

    Sir Isaac Newton postulated that a body in motion will tend to

    stay in motion until it is acted on by an outside force.

    While Newton's law is inextricably tied to physics, it can be

    applied to financial markets as well. Your financial investments

    don't exist in a vacuum.

    They are constantly acted on by outside forces that create price

    movements, either up or down. Momentum refers to the speedof a currency pair's price movements.

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    [ Law of Momentum ]

    What to look for

    1) Major market events (i.e. Wide Ranging Bars, Hammers, Inverted Hammers, etc. )

    2) Does the market continue with its bias?

    3) If it doesnt, then be ready for a directional shift in the opposite direction.

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    [ Law of Momentum ]

    Can you spot the areas of momentum?

    [ L f M ]

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    [ Law of Momentum ]

    1

    2

    3

    4

    5

    6

    7

    8

    9

    Can you spot the areas of momentum?

    Discussion

    [ L f M t ]

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    [ Law of Momentum ]

    Can you spot the areas of momentum?

    [ L f M t ]

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    [ Law of Momentum ]

    Can you spot the areas of momentum?

    1

    2

    3

    4 5

    Discussion

    6

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    FOREX 101:Mastery for Beginner and

    Intermediate Traders

    The Four Trading Time Frames

    Day 1

    Copyright, 2014 Chima Burey.

    All rights reserved.

    [ Th F T di Ti F ]

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    [ The Four Trading Time Frames ]

    M5: 5 Minute

    M15: 15 Minute

    M30: 30 Minute

    H1: 1 Hour

    Used by many active traders (day-traders) to

    capture the volatility intra-day market movement.

    This chart allows traders to utilize intra-day volatility

    without the speed of the lower time-frames.

    This time frame is the perfect middle ground

    between finding intra-day trades and trades that

    can held overnight.

    Perfect for traders who look to take advantage of

    market moves that range from 1-5 days.

    [ M5 5 Mi t Ch t ]

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    [ M5: 5 Minute Chart ]

    EUR/USD

    Discussion: Using volatility

    to your advantage.

    [ M15: 15 Minute Chart ]

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    [ M15: 15 Minute Chart ]

    GBP/USD

    Discussion: What do you notice?

    [ M15: 15 Minute Chart ]

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    [ M15: 15 Minute Chart ]

    GBP/USD

    Discussion: What do you notice?

    [ M30: 30 Minute Chart ]

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    [ M30: 30 Minute Chart ]

    S&P 500

    Discussion: What stands out to

    you? And why?

    [ M30: 30 Minute Chart ]

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    [ M30: 30 Minute Chart ]

    S&P 500

    Discussion: What stands out to

    you? And why?

    [ H1: 1 Hour Chart ]

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    [ H1: 1 Hour Chart ]

    EUR/JPY

    Discussion: What happens whenthe momentum runs out?

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    FOREX 101:Mastery for Beginner and

    Intermediate Traders

    The Three Analytical Time Frames

    Day 1

    Copyright, 2014 Chima Burey.

    All rights reserved.

    [ Three Analytical Time Frames ]

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    D1: Daily

    W1: Weekly

    H4: 4 HourThis chart is great from analyzing short to mediumterm trades. Many traders actually use this as a

    trading time frame as well. It is very versatile to

    understand price action during weekly trends.

    The daily time frame is a must for all traders.

    Understanding daily market emotion is key to day

    traders and long term traders alike. This chart is

    rarely used by retail traders as a trading time frame.

    Every week should start and end with this time

    frame. The ability to recognize setups from thischart will greatly improve the trading decisions on

    the lower time frames.

    [ Three Analytical Time Frames ]

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    FOREX 101:Mastery for Beginner and

    Intermediate Traders

    Moving Averages

    Day 1

    Copyright, 2014 Chima Burey.

    All rights reserved.

    [ Moving Averages ]

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    [ Moving Averages ]

    Among the most popular indicators used in technical analysis, moving

    averages are used to gauge the direction of the current trend. This

    indicator is so widely used because it helps to smooth out price action

    by filtering out the noise from random price fluctuations.

    Every type of moving average is a mathematical result that is calculated

    by averaging a number of past data points.

    Once determined, the resulting average is then plotted onto a chart in

    order to allow traders to look at smoothed data rather than focusing onthe day-to-day price fluctuations that are inherent in all financial

    markets.

    What are they?

    [ Moving Averages ]

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    [ Moving Averages ]

    Before

    [ Moving Averages ]

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    [ Moving Averages ]

    After

    Discussion: Which one do youprefer?

    [ Moving Averages ]

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    [ Moving Averages ]

    After

    Discussion: Use the MAs asfloating support and resistance,

    NOT for the crossover!

    [ Moving Averages ]

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    [ Moving Averages ]

    How to use the MAs?

    The most common applications of Moving

    Averages are to:

    1) Identify the trend direction.

    2) Determine support and resistance levels.

    Which MAs to use?

    1) Fast: 8ma

    2) Slow: 20ma

    3) Long Term: 200ma

    [ Moving Averages ]

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    8 period MAThe 8ma is great for catching fast moving aggressivetrends. This fast moving average is the one that is

    often closest to price action and reacts the fastest

    to temporary directional changes.

    This moving average is known for being more of a

    trend following guide. When price breaks the 8mait often finds stability in the trend at the 20ma.

    The most popular moving average is the 200ma.

    This is used by both retail and institutional traders

    alike. Given the amount of data that is used to

    calculate this average, price action often reacts toviolently any encounter with this moving average.

    [ Moving Averages ]

    20 period MA

    200 period MA

    ** All Moving Averages are simple Moving Averages **

    [ 8-period Moving Average ]

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    [ 8 period Moving Average ]

    8ma

    20ma

    NOTICE: How price action hugs

    the 8ma as it aggressively higher.

    GBP/AUDHourly

    [ 8-period Moving Average ]

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    [ 8 period Moving Average ]

    8ma

    20ma

    NOTICE: Price rides the 8ma for

    1.5 years on this chart before it

    falls to secondary support levels.

    USD/JPYWeekly

    [ 20-period Moving Average ]

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    [ 0 pe od o g e age ]

    8ma

    20ma

    NOTICE: How the 20ma holds

    price down as it continues alongits bearish move toward lower

    prices.

    EUR/JPY

    15 min

    [ 20-period Moving Average ]

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    [ p g g ]

    8ma

    20ma

    EXERCISE: Candlestick Identification

    1._______________________

    2._______________________3._______________________

    4._______________________

    XAG/USD

    4 Hour

    1

    2

    3

    4

    [ 200-period Moving Average ]

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    [ p g g ]

    8ma

    20ma

    NOTICE: The reaction to the

    200ma from price.

    AUD/USD

    1 Hour

    200ma

    1

    2

    34 5

    [ 200-period Moving Average ]

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    [ p g g ]

    8ma

    20ma

    Lesson: Timid and Forceful

    interactions between price and

    the 200ma.

    Dow 3030 min

    200ma

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    FOREX 101:

    Mastery for Beginner and

    Intermediate Traders

    Continuation: The Power of Follow Through

    Day 1

    Copyright, 2014 Chima Burey.

    All rights reserved.

    [ The Power of Follow Through ]

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    reserved.

    [ g ]

    A temporary reversal in the direction of a currency pair's price that goesagainst the prevailing trend.

    A retracement does not signify a change in the larger trend. On a chart

    where a currency pair's price is generally headed upward, retracements are

    the small dips in price that the stock experiences during its overall upward

    trend.

    What is a Retracement?

    [ The Power of Follow Through ]

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    [ g ]

    Technical analysts make an important distinction between retracements

    and reversals.

    Retracements are short-term changes within a longer-term trend, whilereversals indicate the end of a larger trend and the beginning of a new

    trend.

    When a retracement first begins, it is difficult to tell whether it is a

    retracement or a reversal.

    Technical analysts try to distinguish between the two using Fibonacci

    retracements, pivot points, trendlines, and moving average support and

    resistance levels.

    What is a Retracement?

    [ The Power of Follow Through ]

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    reserved.

    ?

    List 3 types of support that

    would cause price action to

    stop its retracement.

    1) ___________________

    2) ___________________

    3) ___________________

    [ The Power of Follow Through ]

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    ?

    List 3 types of candlestick

    formations that you would

    look for to signify that the

    trend might continue?

    1) ___________________

    2) ___________________

    3) ___________________

    [ The Power of Follow Through ]

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    8ma

    20ma

    NOTICE: After price action

    moves above the movingaverages, they act as support to

    maintain the up-trend.

    CHF/JPY

    1 Hour

    Moving Average Support

    [ The Power of Follow Through ]

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    8ma

    20ma

    NOTICE: Price action uses all 3

    major moving averages for

    support during this up-move.

    FTSE 100

    4 Hour

    Moving Average Support

    200ma

    [ The Power of Follow Through ]

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    8ma

    20maMomentum: Stacked WRB kicks

    start the move lower which was

    maintained by the decliningmoving averages.

    AUD/NZD

    1 Hour

    Moving Average Resistance

    [ The Power of Follow Through ]

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    8ma

    20maCandlestick Math: This moves

    begin with a series of bearish

    candle formations which leads tobig gains.

    USD/JPY

    5 min

    Moving Average Resistance

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    FOREX 101:

    Mastery for Beginner and

    Intermediate Traders

    Understanding Market Movement

    Day 1

    Copyright, 2014 Chima Burey.

    All rights reserved.

    [ Understanding Market Movement ]

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    8ma

    20maCandlestick Math: This moves

    begin with a series of bearish

    candle formations which leads tobig gains.

    USD/JPY

    5 min

    Spott ing the Signs of a Market Reversal

    [ Understanding Market Movement ]

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    8ma

    20maCandlestick Math: This moves

    begin with a series of bearish

    candle formations which leads tobig gains.

    USD/JPY

    5 min

    Spott ing the Signs of a Market Reversal

    Why is this important?

    USD/JPY

    5 min

    NOTICE: During the

    down-trend, price actionpauses 5 times before

    making a higher low.

    [ Understanding Market Movement ]

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    8ma

    20maCandlestick Math: This moves

    begin with a series of bearish

    candle formations which leads tobig gains.

    USD/JPY

    5 min

    Spott ing the Signs of a Market Reversal

    USD/JPY

    5 min

    NOTICE: That after the

    higher low, price action

    began to prove itself by

    settling above the moving

    averages

    [ Understanding Market Movement ]

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    8ma

    20ma

    Spott ing the Signs of a Market Reversal

    USD/CHF

    30 min

    NOTICE: That after the

    WRB, the momentum

    stopped and a newdowntrend began. Why

    did this happen here?

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    FOREX 101:

    Mastery for Beginner and

    Intermediate Traders

    Pivot Highs and Pivot Lows

    Day 1

    Copyright, 2014 Chima Burey.

    All rights reserved.

    [ Pivot Highs and Pivot Lows ]

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    What are they and Why are they

    important?

    A price-bar formation that gives real-time price signals of support and resistance.

    When a series of price bars reverses direction, it is considered a structural pivot

    (not a calculated pivot).

    The price bar has an open, high, low and close. The pivot is composed of a

    minimum of three bars and occurs in every time frame. The pivot lows and highs

    are used to draw trendlines to show support, resistance and trend direction.

    Pivot High Pivot Low

    [ Higher Highs and Higher Lows ]

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    KEY: Recognizing thesubtle transition between

    trends can turn in to

    huge profits.

    AUD/NZD1 Hour

    [ Higher Highs and Higher Lows ]

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    KEY: Spot where priceaction finds support

    and look for distinctive

    candlestick formations.

    GBP/USD

    1 Hour

    [ Lower Highs and Lower Lows ]

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    KEY: Spot where price

    action finds support

    and look for distinctive

    candlestick formations.

    USD/JPY

    15 min

    [ Lower Highs and Lower Lows ]

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    KEY: Spot where price

    action finds support

    and look for distinctive

    candlestick formations.

    USD/JPY

    15 min

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    FOREX 101:

    Mastery for Beginner and

    Intermediate Traders

    Trailing Stops: How to Lock in Profit

    Day 1

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    All rights reserved.

    [ The Importance of Stops ]

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    What is a trailing stop?

    A stop order that can be set at a defined percentage away from a security's

    current market price.

    A trailing stop for a long position would be set below the securitys currentmarket price; for a short position, it would be set above the current price.

    A trailing stop is designed to protect gains by enabling a trade to remain

    open and continue to profit as long as the price is moving in the right

    direction, but closing the trade if the price changes direction by a specified

    percentage.

    [ The Importance of Stops ]

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    Why teach about stops before teaching

    how to buy?

    My two rules of investing: Rule one never lose money. Rule two never forget

    rule one.

    -Warren Buffet

    "The four most dangerous words in investing are: 'this time it's different.

    -Sir John Templeton

    Capital Preservation

    [ The Importance of Stops ]

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    Trailing stops and Discipline?

    The trailing stop is more flexible than a fixed stop loss, since it

    automatically tracks the currency pairs price direction and does not have

    to be manually reset like the fixed stop loss.

    Like all stop orders, the trailing stop enforces trading discipline by taking

    the emotion out of the sell decision, thus enabling traders and investors

    to protect profits and investment capital.

    [ Trail ing the 20-period MA ]

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    USD/JPY

    Daily

    Notice: The buyers

    ability to keep price

    action above the MAs

    for so long. Why didthis change?

    [ Trail ing the 20-period MA ]

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    USD/JPY

    Daily

    Action: Exit position at

    the violation of this

    low.

    [ Trail ing the 20-period MA ]

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    Evaluation: How did

    the decision to trail the

    20ma work out? And

    why?

    USD/JPY

    Daily

    [ Trail ing the 8-period MA ]

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    Crude Oil

    15 min

    Notice: After and

    aggressive push lower,

    Price action finally

    moves above the 8ma.

    [ Trail ing the 8-period MA ]

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    Crude Oil

    15 min

    Action: Exit position at

    the violation of thishigh.

    [ Trail ing the 8-period MA ]

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    Crude Oil

    15 min

    Evaluation: How did

    the decision to trail the

    8ma work out? Andwhy?

    [ Trail ing each Candle ]

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    CHF/JPY

    1 HourNew Rule: Watch for Clearing Bars

    after consolidation as they take out

    previous highs. This is normally a sign

    of a bigger move to come.

    [ Trail ing each Candle ]

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    CHF/JPY

    1 Hour

    Notice: Price action

    has exploded away

    from the MAs.

    [ Trail ing each New Candle ]

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    CHF/JPY

    1 Hour

    Action: Exit position at

    the violation of this

    low.

    [ Trail ing each New Candle ]

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    CHF/JPY

    1 Hour

    Evaluation: How didthe decision to trail

    using this technique

    work out? And why?

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    FOREX 101:

    Mastery for Beginner andIntermediate Traders

    Spotting the Three Market Trends

    Day 1

    Copyright, 2014 Chima Burey.

    All rights reserved.

    [ The Three Market Trends ]

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    Up-Trends

    As price action moves higher, it has distinctive

    characteristics. The chart will make a series of higher

    highs and higher lows. The strength of the move with be

    seen by which of the two MAs it respects. If it hugs the

    8ma it is a more aggressive move than those that only hug

    the 20ma.

    This type of trend is one where price consolidates with

    equal highs and equal lows. I have nicknamed this areas

    as the trenches. It is important to what to look for

    during this type of trend.

    Down-Trends

    Sideways-Trends

    As price action moves lower, it has distinctive

    characteristics. The chart will make a series oflower highsand lower lows. The strength of the move with be seen

    by which of the two MAs it respects. If it hugs the 8ma it

    is a more aggressive move than those that only hug the

    20ma.

    [ Up-Trend 8ma ]

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    Discussion: What

    happened here?

    What type of trend is this?

    Normal or Aggressive

    GBP/USD

    1 Hour

    [ Up-Trend 20ma ]

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    Discussion: What

    happened here?

    What type of trend is this?

    Normal or AggressiveWhat type of trend is this?

    Normal or Aggressive

    FTSE 100

    4 Hour

    [ Down-Trend 8ma & 20ma ]

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    Discussion: What

    happened here?

    AUD/NZD

    Daily

    [ Sideways-Trend The Trenches ]

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    Discussion: What

    happened here?

    AUD/NZD

    Daily

    Discussion: This example

    has a consolidation area

    with a downward bias.

    How would you trade

    this?

    Crude Oil

    4 Hour

    [ Sideways-Trend The Trenches ]

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    Discussion: What

    happened here?

    AUD/NZD

    DailyCrude Oil

    4 Hour

    Step 1: Identify

    consolidation area

    [ Sideways-Trend The Trenches ]

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    Discussion: What

    happened here?

    AUD/NZD

    DailyCrude Oil

    4 Hour

    Step 2: Pull back

    and look at the

    overall picture to

    find clues.

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    [ Sideways-Trend The Trenches ]

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    Discussion: What

    happened here?

    AUD/NZD

    DailyUSD/CAD

    4 Hour

    Step 1: Identify

    consolidation area

    [ Sideways-Trend The Trenches ]

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    Discussion: What

    happened here?

    AUD/NZD

    DailyUSD/CAD

    4 Hour

    Step 2: Pull back

    and look at the

    overall picture to

    find clues.