Day Trading Tips by daytrade training

TLT TRADE LIKE TONIS

DAY TRADE TRAINING

DAY TRADING

TIPS

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TABLE OF LIST 1. DISCLAIMER 2. INTRODUCTION 3. MOVING AVERAGE AND MACD 4. POLICY OF TRADING 5. WHAT IS THE DIFFERENCE BETWEEN DAY TRADE & TRADING IN LONG INVESTMENTS ? 6. HOW YOU WILL UNDERSTAND THE MARKET ? 7. WHAT IS THE DAY TRADE AREA ? 8. CANDLESTICKS PATTERN 9. HOW MUCH MONEY WE SHOULD INVEST IN STOCK MARKET ? 10. HOW TO BE SUCCESSFUL ? 11. TRADING STRATEGIES 12. SPECIAL TECHNIQUES 13. TRADING TIPS STRATEGY 14. TRADING EXAMPLES 15. CONCLUSION 1

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1-DISCLAIMER

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The information contained in this book is for educational purposes only. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed in this book. The past performance of any trading system or methodology is not necessarily indicative of future results. By reading this book, you agree that my company and I are not responsible for the success or failure of your trading business. The ideas I’m about to present are ones that I’ve learned from other traders (see the acknowledgements section) and I don’t claim to be the original source of them.

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2-INTRODUCTION

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I started my journey on Day Trade 17 years ago . I had one good friend who decided to work a lot on day Trade . His result was amazing after a couple of years . He was really successful . When I asked him to help me to teach me how to play safely – he refused it . On that period , I was so willing to learn day trade but the problem was – I didn’t know where to go . I tried to get some basic knowledge from Internet from some other friends but it wasn’t enough . The threat as a new trader is that you cant understand your limits . I studied 3 weeks on internet and I went through the stock market to invest . The result was totally catastrophic for me – The first 3 weeks I lost 15000 euros . That was actually my trigger point to stop and I decided on that period to go through some Day Trading academy . I found one academy in Europe and they asked around 5000 euros for full training . I gave the money and It was much to my surprise when they advised me after very short period , I was ready as professional trader to get my daily profit . The duration of the course was 3 sessions and 3 hours . Honestly I was feeling that I was ready to lose another 35000$ , If I had started to play alone . 5

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Then the guys from the academy asked me If I wanted to join their online service “ Trade with us “ . What was this service ? Anyone s could join the online group and we were taking commands orders from professional trader when to buy & sell. This service was quite expensive and I was getting profit around 5% with 1-2 trades per day . After the end of the day , I was checking the buy and sell signals of the trades . I followed this service for three months but It wasn’t enough for me to trade alone . On that period I met one professional trader ( he was on top 100 in the world ) . I kindly asked him to teach me and he gave me 4 months full training . After this period I started to feel very confidence and within 12 months period I can say I became professional trader . As a conclusion , I give you my word – Day Trade is not gambling If you know how to invest . If you have strategies and knowledge plus the experience – GO FOR IT , YOU WILL NEVER REGRET IT .

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3- MOVING AVERAGE

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Big traders use the moving averages for scalping and for Day Trade . What does the moving average tell you? In simple word, a moving average is an indicator that shows the average value of a stock's price over a period (i.e. 10 days, 50 days, 200 days, etc) and is usually plotted along with the closing price. 1)What is best moving average for stocks? The 200-day moving average is considered especially significant in stock trading. As long as the 50-day moving average of a stock price remains above the 200-day moving average, the stock is generally thought to be in a bullish trend. 2)What is a 200-day moving average? The 200-day moving average is represented as a line on charts and represents the average price over the past 200 days or 40 weeks. The moving average can give traders a sense regarding whether the trend is up or down, while also identifying potential support or resistance areas. 3)What does 50 day moving average tell you? A moving average is simply an arithmetic mean of a certain number of data points. ...

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For example, a 50-day moving average is equal to the average price that all investors have paid to obtain the asset over the past 10 trading weeks (or two and a half months), making it a commonly used support level. 4)Which moving average is best for daily chart? The 20 EMA is the best moving average for daily charts because price follows it most accurately during a trend. The price that is above the 20 can be considered as bullish and below as bearish for the current trend. As a rule of thumb , you should know when the price is above 200 EMA , we consider uptrend and If the price is below 200 EMA we consider we are in down trend . 5)What does the MACD line tell you? Moving average convergence divergence (MACD) is a trendfollowing momentum indicator that shows the relationship between two moving averages of a security's price. ... Traders may buy the security when the MACD crosses above its signal line and sell—or short—the security when the MACD crosses below the signal line What is MACD Line ? 12 day EMA - 26 day EMA What is signal line ? 9 day EMA of MACD line .

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6)Exponential Moving Average (EMA) is similar to Simple Moving Average (SMA), measuring trend direction over a period of time. However, whereas SMA simply calculates an average of price data, EMA applies more weight to data that is more current. An exponential moving average (EMA) is a type of moving average (MA) that places a greater weight and significance on the most recent data points. The exponential moving average is also referred to as the exponentially weighted moving average. An exponentially weighted moving average reacts more significantly to recent price changes than a simple moving average (SMA), which applies an equal weight to all observations in the period. What is the difference between MA & EMA ? EMA is more precise indicator than MA . 7)What is a Signal Line? Signal lines are used in technical indicators, especially oscillators, to generate buy and sell signals or suggest a change in a trend. ... Signal lines are often moving averages of a technical indicator, such as the moving average convergence-divergence (MACD) or stochastic oscillator.

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8)What is Resistance? Resistance, or a resistance level, is the price at which the price of an asset meets pressure on its way up by the emergence of a growing number of sellers who wish to sell at that price. 9)What is support? Support is a price level where a downtrend can be expected to pause due to a concentration of demand or buying interest. As the price of assets or securities drops, demand for the shares increases, thus forming the support line. 10) What is Pivot? A pivot means an important price level to a trader, like an inflection point, where they expect price to either continue in the current direction or reverse course. Some traders view prior high points or low points in the price as a pivot. A trader may view the 52-week high as a pivot point. 11)What is Pattern of the market? Patterns are the distinctive formations created by the movements of security prices on a chart. A pattern is identified by a line that connects common price points, such as closing prices or highs or lows, during a specific period of time. In the next chapter you will find more details and examples for Support , Resistance and Pivot & Pattern of the market .

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QUESTIONS 1) What is moving average ? A. Its an indicator that shows the average value B. Prediction report C. All the above 2) When its considered that we are in bullish area ? A. 20 is equal with 50 MA B. 20 is less than 50 MA C. 50 is above 200 MA 3) What Moving Average is the best for daily chart ? A. 20 MA B. 50 MA C. 200 MA 4) As a rule of thumb , what we consider If the price is above 200 MA ? A. Uptrend B. Downtrend C. Flatten out 12

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5) As a rule of thumb , what we consider If the price is below 200 MA ? A. Uptrend B. Downtrend C. Flatten out 6) What is the MACD blue line on MACD crossover indicator ? A. 12 day EMA – 26 day EMA B. 9 day EMA C. 25 day EMA 7) What is the red signal on MACD ? A. 9 day EMA of MACD Line B. 12 day EMA of MACD Line C. 27 day EMA of MACD Line 8) When its considered that we are in profitable area of MACD crossover points ? A. When MACD blue line cross above the Red signal B. When MACD BLUE line cross below the Red signal C. All the above

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9) When its considered that we are in non profitable area of MACD crossover points? A. When MACD blue line cross above the Red signal B. When MACD blue line cross below the Red signal C. When MACD blue line is in the same line with Red signal 10) What is pivot point ? A. The separation line between bullish and bearish B. The top of price action C. The lower price action .

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ANSWERS 1. C 2. C 3. A 4. A 5. B 6. A 7. A 8. A 9. B 10. A

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4- POLICY OF TRADING

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You must follow a proper way of actions if you want constant results. This is much easier said than done because when you lose a huge amount , you’ll have the urge to do something about it. You’ll have the feelings : “Let me remove my stop loss so I don’t get stopped out.” “Let me double down so I can recoup my losses quickly.” “This method is not working anymore, let me find something else.” And if you find something else – cause you will be thinking – the new strategy will work much better than the previous , you realize that you lose again . So the question is what was wrong !!!! Remember If you are not consistent with your strategy - you won’t get consistent results. The bottom line is this: If you want to become a consistent trader, you must have a consistent set of actions. Now, even if you are discipline in your actions, this doesn’t mean you’ll be a consistently profitable trader. Any idea ?? Because your trading strategy must provide you with an edge in the markets. What do I mean by having an edge? Let’s say I make a deal with you. Every time you play Russian RULLET , and it comes BLACK, you win $6. And if it comes up white , you lose $2. In the long run, you’ll make money with this arrangement because you have an edge over me. And it’s the same with trading. If you want to profit from the markets in the long run, your trading strategy must give you an edge.

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This is because without an edge, even if you have the best risk management, discipline, and psychology, you’ll still be a losing trader. THE POLICY OF LARGE NUMBER. The law of large number states that in the short run, your results are random, but they’ll align towards its expectancy in the long run. I know that sounds confusing so let me give you an example. Let’s say you bet 10 times and you get 6 times black position and 4 white position . Would you claim your bet that has a 60% chance of coming black position and a 40% chance of white position ? Of course not. Intuitively, you understand this because you only tossed your bet 10 times. But if you were to toss the risk 1000 times, it would be closer to 50% black and 50% white . And this is what the law of large numbers is about. In the short run, your trading results are random. And it’s only in the long run, after a decent sample size of trades, that your system will align toward its expectancy. This is important to understand because if you’re unaware of it, you’ll abandon your trading strategy after a few losing trades without understanding that the results you’ve been observing are actually random. Let me give you an example. Imagine there are two traders, A and B. A is an aggressive trader, and he risks 25% of his account on each trade. B is a conservative trader, and risks 1% of her account on each trade. Both adopt a trading strategy that wins 50% of the time with an average risk-toreward ratio of 1:2.

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Over the next 8 trades, the outcomes are lose, lose, lose, lose, win, win, win, win. Before you think this is an unlikely scenario, remember the law of large numbers? So here’s the outcome for A: -20% -20% -20% -20% = TOTAL LOSS Here’s the outcome for B : -1% -1% -1% -1% +2% +2% +2% +2% = +4% Are you getting my point ??? Risk management can be a deciding factor in whether you’re a consistently profitable trader or a losing trader. Remember, you can have the best trading strategy in the world. But without proper risk management, you will still blow up your trading account. Imagine that you make an average of 20% a year with a $100,000 account. Every year, you use all your trading profits to maintain your lifestyle. This means you’re back at $100,000 at the start of the next year. But what if you have a job or business that covers your expenses so you don’t have to withdraw money from your account. How would this change things? Let’s use my example again. You make an average of 20% a year on a $100,000 account, but if you don’t withdraw your profits, you can compound your returns over time. After 10 years, your account will be worth $750000 . After 20 years, it will be worth $4000000. After 30 years, it will be bigger number .You understand, what do I mean ??. But do you know where the best profit is made? The huge money is made by managing other people’s money. But don’t take me wrong . Have a look all the hedge funds companies and you will understand what I am saying . They manage other people’s money. 19

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There’s no such thing as the best trading strategy because it’s not possible to define what is good for me . Good can be translated in many things: highest returns, lowest looses , least time required, low capital requirements etc . On the other hand , what is good for you- It might be a horrible scenario for someone else. So instead of looking for the best trading strategy, you first have to know what your trading targets are. Once you understand that, you can select the “best” trading strategy to meet your aims . USE DEFFERENT STRATEGIES???? Here we are , how to assure and to get daily profit : If you want to make money everyday, you need to trade frequently so the law of large numbers can work in your favor. In the short run, your risk management results are random— you could get positive profit many times in a row . But the same time , you might lose 25 trades per day and to get negative profit . The feeling is very bad ,just think that you are -50% . Your psychology on that moment doesn’t support you & you are very close to change your trading skills to gambler . Does this make sense? Perfect . Remember we make money risking low amount with high frequency of trades.

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PLAN TO BE PROFITABLE. On my trading career , I saw too many people they tried to do fast expansion on their account . But the result was totally catastrophic . If you didn’t know it , change now your opinion . I Give you my word , you will get money from trading but plan to get-rich-slow scheme. Some people believe that they can make money fast using your dream strategy – I will agree with this people . But also think that you can lose it equally as fast (or faster). So what is better ? Its less stressful and more profitable , If we set up some long plans ,avoiding fast growth . And try to treat trading as a business . How “fast” you can get rich depends on two things: your account size and your percentage return. Sure, you can increase your return by risking more, but the risk of drawdown is larger—and you risk losing everything. So my suggestion is to risk small, add more funds regularly, and compound your way to riches. Yes, it takes time, but the risk of ruin is dramatically reduced.

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QUESTIONS 1) Can we remove the Stop Loss during Day Trade ? A. Yes B. No C. Sometimes only If I need to put it lower 10%. 2) Can we change the strategy- during Day Trade ,If we realize that we are not profitable ? A. No B. Yes C. Only If the new strategy give us more than 50% 3) Can you invest 25% per trade as per your portfolio ? A. No B. Yes C. Sometimes 4) How you can see your Day Trade career ? A. Like your business B. For hobby C. Are of community 22

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5) Day Trade is a bit Gambling . A. Yes B. No C. Sometimes 6) What business plan you should have as Day Trader ? A. Low growth up B. Fast growth up C. Extremely high growth up 7) Can a new trader do fast a lot of money ? A. Yes B. No C. Sometimes 8) How much Money the new traders lose the first month ? A. 5% B. 10% C. 80% 9) What is the secret to make money every time from DT ? A. Risk low amount B. Increase the number of trades C. All the above 23

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10) If you want to get your retirement pension from Day Trade , how you will invest daily ? A. 1-2 trades per day taking small amount of profit . B. Risk 1-2 % per day C. All the above .

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ANSWERS 1- B 2- A 3- A 4- A 5- B 6- A 7- A 8- C 9- C 10- C

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5- WHAT IS THE DIFFERENCE BETWEEN DAY TRADE & TRADING IN LONG INVESTMENTS?

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Most traders think the price goes up because there are more buyers than sellers. No true . For example lets consider there are 100 buyers, each wanting to buy one share of AMZN . At the same time, there’s one seller, but the seller wants to sell one million shares of AMZN . What do you think would happen to the price? Would it go up or down? It’ll go down because the selling pressure is greater than the buying pressure. This has nothing to do with there being more buyers than sellers because, in this case, there are more buyers than sellers. But the price is still going down because the selling pressure is greater. And this is what price action trading is about: Understanding the imbalance between buying and selling pressure so you can better time your entries and exits —and improve your trading results. You can ignore fundamental news because price is all you need. Unlike trading indicators, the price is the price. You can better time your entries and exits. You have a framework to trade in different market conditions. What do I mean ? We do respect all the time fundamental news but our priority will be our technical analysis . Do you know how many times I saw merge companies , huge profit announcement – the stock was rising during pre market at +155% and from the opening of the market dropped in permanent downtrend and finally the stock closed +25% in the end of the day. 27

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You can take into consideration more the fundamental news If you plan to do Long investments and not day trade . FUNDAMENTAL ANALYSIS Fundamental analysis seeks to detect shares that have a probability of increasing or decreasing in value based on announcements , company balance sheets and profit/loss details . If you are used to reviewing figures , ratios and interpreting data ,then this type of analysis may suit you . Take into consideration and try to understand where and whether fundamentals have a direct effect on the share price . Many times I have seen some stocks to announce a great annual profit result and the share start to go down from the same day . On the other hand I saw on pre market too many stocks / companies to make totally crazy campaign announcements – during premarket the stock was almost 150% , then guess what happened ??? The most of the people started to buy with opening of the market cause the stock entered to the market with very high volume and uptrend . But the reality came after 20 minutes when the stock entered to permanent downtrend till the end of the market . Positive announcements that are released to the press are often already factored into the share price , so even a strong profit result will not necessarily lead to a bullish reaction . We do respect the fundamentals news and analysis but we do focus on it more in Long term Investments .

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TECHNICAL ANALYSIS Technical analysis is a blanket term for a variety of strategies that depend on interpretation of price action in a stock. Most technical analysis is focused on determining whether or not a current trend will continue and, if not, when it will reverse. I fully encourage you to persist in the field of technical analysis and develop your profitability and proficiency . It may provide a whole new career for you and It will allow you to develop a valuable source of additional income . You just need to study a bit on this area , you will definitely be able to impress everyone in your job , and in general in your personal life . Technical analysis is a method used by an increasing number of traders to determine the points at which they will enter and exit the market . Some other investors feel that this method is not enough for the daily profit . I TOTALLY DISAGREE WITH THIS THEORY . I am not saying that I don’t want to read at all fundamentals news . I do it on my daily roster before the opening of the market . But as I said before , I respect the fundamentals news but my final decision will be as per the technical analysis . Technical analysis involves reviewing actual price and volume action on share price charts to reach conclusions about the likely future direction of the price . Many people think in pictures and so relate to the pattern recognition inherent in technical analysis . It will allow you to see clearly the figures , all Indicators will predict you to trade proficiently . 29

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Often by the time a fundamental announcement is made , the share price has already displayed signs of reaction . It is this share price that a technical analyst use to detect buy and sell signals . Some traders seem intent on getting in at the bottom of a trend and out at the top of a trend . Your friends may be Impressed If you tell them that you traded long entry with very high profit . How you can do it ? Do focus to buy very low and to sell on the highest level . Successful technical traders have a defined set of rules to enter a trade and to exit timely from the market at the first sign of a downtrend . Personally , I never give tips and I never listen to tips on my daily day trade life . With this book , I just open my heart and my experience of 17 years Day Trade . This book will focus only on technical analysis and how to understand better the market . Be familiar from now on to use Technical analysis for Day Trade , trust more the indicators , charts etc . Learn how to analyze bullish and bearish market forces before plunging into a highly leveraged area . At the beginning you’re your share market career by trading shares , preferably without a margin loan , while you have your training wheels on . Start with the bigger shares that have a significant market capitalization such as those in the top 100 or at least 200 .

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PSYCHOLOGY OF TRADER This is the number one tool of the new trader . As a new Day trader you must play with no stress . The tools to reduce the stress at the beginning is good knowledge and strategy . Good understanding of indicators and don’t mix the strategies . As new member in stock market DT , remember If you loose the first trade - It’s better to stop and assess the situation “ what went wrong “ . Once you understand your mistakes , you may continue to simulate 2-3 trades without money . You have to convince yourself that you did corrective actions . Before open the stock market you must consider , If you wanna spend too many hours , doing 60 trades or just 3 trades . If you decide to do less trades then you have to know about the strategy you follow the same if you consider to do plenty of trades . One very bad habit that we had all of us as new traders is to try to follow the stock during bull run but not from the beginning - Don’t do it , you will loose a lot of money . If you loose for example 300$ - Do not try to double the amount in the second trade - this is gambling . Remember as a trader you will play with strategy all the time . The first period and not only , you must write in some paper the name of stock you buy / sell , how many shares , how much money , what time you buy / sell . After your successful training , you must perform 3-5 trades maximum per day and in the end of the day you must de brief yourself . Even If you done successful trades , you have to check always points to improve your rates .

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New traders fail cause they are not discipline . Don’t make non standard things . You must follow strictly your strategy with no any deviation , even if you don’t have any entry per day . Keep in mind that new traders the first month loose approximately 80% of their money for all the above mentioned factors . For instance : If you have trade portfolio 50000$ , you never risk more than 2-3% . So according to this example you can risk 1000 maximum 2000 $ . Either way daytradetraining team will ask you to stay with them in the webinar for 2-3 months to get more experience . After that you will start to trade alone , but will ask you to risk small amount maximum 2%. Our plans is to add you more experience and to play more comfort . You will get experience and knowledge from the training 3 months , then you have another 3 months you will trade with us and then if you wanna continue to trade alone , you will risk low amount for 3 months . You may consider the fundamental analysis and news as a good point for you but be careful as a day trader , you trade the charts and not the news . For example , I have seen all this years too many amazing announcements from companies from premarket . I was in shock to watch the stocks to be during premarket 50-250% profit . But once the market opened , the stocks fell to medium - severe downtrend . So we respect the news but we are very very careful how the stock will move .

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You must prepare some stocks and you have to consider the technical analysis as number one tool for you , for the stocks you will follow . If you don’t want to come to trade with us , you can take pack for day trades ( will provide up to 3 stocks daily for DT ). Follow your strategy , even if you have loses 2-3% . If you do some wrong entries don’t keep the stock & specially If you see the stock to go down , don’t say “ I will keep it and maybe later it will go up “ , this is gambling . You can’t start to trade because you got some information from your friends and internet , don’t do it - it’s gambling . Before you start to trade , you must select the best platform to trade ( in my personal opinion the best is trading view ). And you have to choose the best and reliable broker.

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QUESTIONS 1)DO we focus in the news for day trade ? A. Yes B. NO C. Sometimes 2)Where we are focusing for DT ? A. Technical analysis B. News C. Our knowledge 3)What we trust more for Long investments ? A. Fundamental news B. Technical analysis C. Crypto analysis 4)If the entry is not correct , can we mix some other strategies and indicators ? A. Yes B. No C. Sometimes

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5)How much is approximately the SL ? A. Minus 15% B. Plus 10% C. Minus 3-6% 6)Can you trust some stocks ,doing on premarket +200 %? A. Yes B. No C. Yes under some circumstances 7)As a new Trader ,If you lose the first trade what will be your actions ? A. Stop for the Rest of the day B. Continue to invest the same amount C. Continue and you double the amount 8)How much money we Invest per Day Trade ? A. 1-2% of our portfolio B. Nothing C. 10% 9)How many times , a new trader should Play on DT ? A. Up to 5 times B. Up to 20 times C. Up to 50 times 35

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10)During pre market the stock ABC was 250%, but in the end of the day closed with +20%. What do you understand ? A. The stock was in down trend B. The stock was in severe drugs . C. The stock was following healthy uptrend

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ANSWERS 1- B 2- A 3- B 4- B 5- C 6- C 7- A 8- A 9- A 10- A

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6- HOW WE CAN UNDERSTAND BETTER THE MARKET

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Most trading indicators work by applying a trend to the price. For example, a 200-day moving average calculates the average closing price over the last 200 days. Now, there’s nothing wrong with using indicators in your trading, provided you understand how they work. If we have a look a different indicator : The relative strength index (RSI) indicator shows oversold on the daily 20 What is Price Action Trading and How Does it Work? timeframe. But if you change the settings, you can jump the RSI to overbought. That’s because the RSI calculates the average gains to losses over a fixed number of periods. And if you adjust the number of periods, you’ll get a different RSI reading. So the question is , what indication I have to trust ? The overbought or the oversold RSI? If you’re not careful, you can manipulate indicators but you will be very close to lose . Now, what about price action? Well, the price is the price – and what you see is what you get. No formulas, no “adjustment,” and less COMPLICATIONS . You don’t just blindly place buy and sell orders whenever you feel like it. You must have a PLAN for trading the markets that includes a plan for when to buy, when to sell, and when to stay out of the markets. That’s how price action trading comes into play because it helps you to identify the different market conditions so you can use the appropriate trading strategy to respond to them. 39

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And when the market changes, so should your trading strategy. At this point, you’re all excited about BEST price action trading. Before you begin, I want to share the downsides of price action trading with you so that you’re aware of them: • It’s near impossible to perform an accurate RE TEST - It takes a lot of time to validate a trading strategy. •There is confirmation .

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RETEST YOUR SELF Checking the charts until you’re looking at the earliest possible date, and you interpret each bar one by one, simulating what would happen as if it’s occurring in real-time. Then, you decide whether you’ll enter or exit your trades according to your strategy—and record the performance over the test period. Now, the problem with this approach is that your bias will skew your results. For example, if you see that ABC is in an uptrend from 2019 to 2021, your bias will be on the long side (and you’ll avoid shorting). In addition, you’ll be more likely to make errors in recording the result of each trade, which will make the results less reliable. In general , If you realize that you want to change your entry strategy to the stock market for Day Trade . You never invest without checking on it . You must complete 100 virtual trades first then you will check your results – If your score is good and you feel confidence , you may start to practice real trades with the new strategy . At the first period we risk very low amount till to get some experience with the new method . TIME TO VALIDATE YOUR STRATEGY If you ask two traders to identify patterns on a chart, you’ll get two different answers. Why? It’s because they each have their own interpretation of the market based on their own experiences and biases. What is Price Action Trading and How Does it Work? That’s why as a price action trader, it’s important to have a framework you can use to minimize subjectivity (and that’s what this book is all about). 41

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Remember in order to confirm some strategy you need to have knowledge & experience . And how you will get the experience , If you don’t do mistakes . That’s why I strongly recommend If you test some strategy , don’t be in stress . From your mistakes you will make the method of trading much better. For Instance , for me I prefer to use the RSI divergencies but for some other trader may is not so convenient way for Day Trade Strategy . You will choose the Strategy will be easy and well understanding for you . CONFIRMATION From now on remember you have to confirm your actions . Either to use some new strategy or to entry/ exit the trade . Otherwise It will be something like blind transmission . If you don’t confirm your actions ,you will not be sure for the outcome . On another words you will play like a gambler .

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HOW TO UNDERSTAND THE MARKET

The market has 4 stages : accumulation, advancing, distribution, and declining. This means if you know what stage the market is at, you’ll know where to buy and sell . Your life will be very easy . 1. ACCUMULATION STAGE. An accumulation stage occurs after a dropping in price . There is a downtrend and the price is coming from high to low . The logic behind this is the market can only go so low before the buyers step in and push the price higher. Now, it’s called an accumulation stage because this is where the smart money accumulates their position in anticipation of higher prices to come. Here are the characteristics of an accumulation stage: • It occurs after the price has fallen over the last six months or more (on the daily timeframe). • It looks like a range market with obvious areas of support and resistance within a downtrend. • The 200-day moving average starts to flatten out. • The price swings back and forth around the 200- day moving average

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Accumulation Stage 1

200 EMA

Accumulation Stage 2

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2. ADVANCING STAGE So for an advancing stage to occur, the buying pressure must overcome the selling pressure, which leads to the start of a new uptrend. Here are the characteristics of an advancing stage: • It occurs after the price breaks out of resistance in an accumulation stage. • You’ll see a series of higher highs and lows. • The price is above the 200-day moving average. • The 200-day moving average is starting to point higher

ADVANCING STAGE

RESISTANCE

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3. DISTRIBUTION STAGE When this happens, you’ve got traders buying in an uptrend and traders shorting at “high” prices. At this point, it’s called a distribution stage because this is where the smart money distributes away their position in anticipation of lower prices to come. Looks like : • It occurs after the price has risen for the last six months or more (on the daily timeframe). • It looks like a range market with obvious support and resistance areas in an uptrend. • The 200-day moving average starts to flatten out. • The price go down and up from the 200- day moving average

200 EMA

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4. DECLINING STAGE Usually we consider this stage when the price is below support . This is because the market can’t remain in a range forever. Its starting of a new downtrend . So for a declining stage to occur, the selling pressure must overcome the buying pressure, which leads to the start of a new downtrend. Main characteristics : • It occurs after the price breaks out of support in a distribution stage. • You’ll see a series of lower highs and lows. • The price is below the 200-day moving average. • The 200-day moving average is starting to point lower

200 EMA

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On that stage we learnt the pattern of the price action . Remember the accumulation stage is coming from high to low . So once we see some stock to go down then will be expecting to enter to accumulation stage . After this stage probably this price will move higher . Advancing stage is coming after accumulation and the main characteristic is consolidation above resistance looking 200 EMA to move higher . Distribution stage is coming when then price touch the higher value and start to flatten out . And finally Declining stage is when the price is below support with some consolidation and 200 EMA to move lower . Once you have understood this patterns its very easy to read the price action .

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QUESTIONS 1) Where is the price action getting to accumulation stage ? A. Below 200 EMA B. Above 200 EMA C. Up and down from 200 EMA 2) Is there uptrend or downtrend on accumulation stage ? A. Uptrend B. Downtrend C. Flatten out 3) Where we expect the price to move on accumulation stage ? A. Support to resistance B. Above resistance C. Below support 4) How we understand advancing stage ? A. Price above resistance with consolidation B. 200 EMA is getting higher C. All the above

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5) Can advancing stage be below support ? A. B. C. 6)

No Yes Sometimes Where is the trend on distribution stage ?

A. Below 200 EMA B. Above 200 EMA C. Flatten out 7) What trend we expect in declining stage ? A. Downtrend B. Uptrend C. Flatten out 8) How many strategies we use for DT ? A. One B. Two C. Three 9) Where you can expect 200 ema in declining stage ? A. Lower B. Higher C. Same 50

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10) Can you buy without confirmation ? A. No B. Yes C. Sometimes

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ANSWERS 1. A 2. C 3. A 4. C 5. A 6. C 7. A 8. A 9. A 10. A

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7. WHAT IS THE DAY TRADE AREA

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Support is a price point below the current market price that indicate buying interest. Resistance is a price point above the current market price that indicate selling interest. S&R can be used to identify targets for the trade. The basic trading method for using support and resistance is to buy near support in uptrends or the parts of ranges or chart patterns where prices are moving up and to sell/sell short near resistance in downtrends or the parts of ranges and chart patterns where prices are moving down. So, if you want to use these lines looking at the exact price, it's very likely that you won't get any result. The areas around support and resistance levels can produce an effect, and experience taught me that this effect is generally stronger when prices arrive from far away. If you tune in to a business news channel, you may hear stock market analysts talk of resistance and support levels for the Sensex or Nifty or individual stocks. A support level is where you could see the share price or the index gaining ground and a resistance level is where it could go the other way. Support occurs where a downtrend is expected to pause, due to a concentration of demand. Resistance occurs where an uptrend is expected to pause temporarily, due to a concentration of supply. These levels, while they may appear arbitrary at first sight, are based on market sentiment and anchoring. 54

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On the other words , we can say Support levels are levels where a declining stock will find bottom and bounce up from. Supports are formed when a stock breaks above resistance and holds above that level: the old resistance then becomes support. Support levels are also formed when a stock spends a lot of time at one level and then breaks upward. Resistance, or a resistance level, is the price at which the price of an asset meets pressure on its way up by the emergence of a growing number of sellers who wish to sell at that price. By plotting a 200-day and 50-day moving average on your chart, a buy signal occurs when the 50-day crosses above the 200-day. A sell signal occurs when the 50-day drops below the 200-day. The time frames can be altered to suit your individual trading timeframe. One way you can find support and resistance levels is to draw imaginary lines on a chart that connect the lows and highs of a stock price. These lines can be drawn horizontally or diagonally. Importantly, support and resistance levels are estimates and not necessarily exact prices. The strength of support or resistance can also be determined by the strength of the price reaction off of it. Any price area that reverses a trend is strong support or resistance.

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HOW WE CAN FIND ON CHART SUPPORT AND RESISTANCE . Zoom your charts out so they show at least 300 candles. . Draw the most obvious levels (if you need to second guess yourself, it probably isn’t worth drawing). . Adjust the levels to get as many “touches” as possible DON’T CONFUSE THE SUPPORT LEVELS Support, or a support level, refers to the price level that an asset does not fall below for period of time. An asset's support level is created by buyers entering the market whenever the asset dips to a lower price. WHAT HAPPENS WHEN THE STOCK HITS RESISTANCE A resistance level is the point on a price chart at which an upward price trajectory is impeded by an overwhelming inclination to sell the asset. If a market price is nearing a resistance level, a trader may opt to close their position and take the profit, rather than risk the price falling back. HOW DO I KNOW MY SUPPORT LEVEL In a downtrend, each lower low will be a support level and each lower high will be a resistance level. In an uptrend, we have the opposite. Each consecutive higher peak will be a resistance level, and each higher trough will be a support level.

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WHAT IS SUPPORT LINE A support line is used in technical analysis to determine a price level through which an asset is unlikely to pass. Using lines of support and resistance allows investors to assess whether an asset is near the top or bottom of its short-term trend.

Conclusion : Please remember as Day Traders we need to trade on this area ( between support and Resistance ) . Actually I can say this is the optimum area for us . We can trade also above Resistance and below support but its not considered the best area for us . That’s why we should be very careful special on entries OUT of Day Trade area . When the price breaks below support, that horizontal area could become future resistance. And when the price breaks above resistance, that horizontal area could become future support.

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Look the following : Previous support become Resistance :

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Higher Resistance and Support describe higher price Uptrend :

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Another example for uptrend :

Lower Support and Resistance , Downtrend .

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Another downtrend support / Resistance

Remember to confirm your entry at support before you buy . Special If the price was on downtrend . HOW TO UNDERSTAND THE TREND If we consider we have uptrend , we have to know what kind of uptrend we have . Usually we consider 3 types of uptrend . Strong , healthy and weak . We can consider we have strong uptrend when the price action is above 20 EMA .

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Here is the example :

20 EMA

We can consider we have healthy uptrend once the price action follow the 50 EMA .

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And when the price follow 200 EMA The trend is considered weak .

200 EMA

Do you know how important is for us to know the trend ?? Let me explain you . If we know that we follow strong uptrend – means we will entry crossing 20 ema upward and the exit will be crossing 20 ema downward .

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If we know that we follow a healthy uptrend we should entry to 50 MA upward and to exit to 50 MA downward .

If our price follow 200 ema and we know we follow weak uptrend we should entry crossing 200 MA upward and exit to 200 MA downward .

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Higher lows into Resistance its sign that the price will go higher : Area of Resistance + High Trend ( Higher lows )= Uptrend

Lower highs into support predict the price will go lower . Support + Low Trend ( Lower highs ) = Downtrend

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QUESTIONS 1) What is the DT area ? A. Support to Resistance B. Above Resistance C. Below support 2) Can we trade above Resistance ) A. Yes B. No C. Sometimes 3) Can we trade below support ? A. Yes B. .no C. Maybe 4) How we understand strong uptrend ? A. Price action follow 20 EMA . B. Price action follow 200 ema . C. Price action follow 50 ema

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5) How we understand healthy uptrend ? A. B. C.

Price action follow 20 EMA . Price action follow 200 ema . Price action follow 50 ema

6) How we understand weak uptrend ? A. B. C.

Price action follow 20 EMA . Price action follow 200 ema . Price action follow 50 ema

7) If we follow strong uptrend , where we exit ? A. Crossing 20 EMA B. Crossing 50 EMA C. Crossing 200 EMA 8) If we follow healthy uptrend , where we exit ? A. Crossing 20 EMA B. Crossing 50 EMA C. Crossing 200 EMA 9) If we follow weak uptrend , where we exit ? A. Crossing 20 EMA B. Crossing 50 EMA C. Crossing 200 EMA 67

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10) If you want to follow any uptrend not from the beginning , where you suppose to enter ? A. After pullback with confirmation of indicators & candlestick B. After 2 red candlesticks C. After 3 Red candlesticks .

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ANSWERS 1. A 2. A 3. A 4. A 5. C 6. B 7. A 8. B 9. C 10. A

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8. CANDLESTICKS PATTERN

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How to Read Candlestick charts? Candlestick charts were originated in Japan over 100 years before the West had developed the bar charts and pointand-figure charts. In the 1700s, a Japanese man known as Homma discovered that as there was a link between price and the supply and demand of rice, the markets also were strongly influenced by the emotions of traders. A daily candlestick charts shows the security’s open, high, low, and close price for the day. The candlestick’s wide or rectangle part is called the “real body” which shows the link between opening and closing prices. This real body shows the price range between the open and close of that day’s trading. When the real body is filled, black or red then it means that the close is lower than the open and is known as the bearish candle. It shows that the prices opened, the bears pushed the prices down and closed lower than the opening price. If the real body is empty, white or green then it means that the close was higher than the open known as the bullish candle. It shows that the prices opened, the bulls pushed the prices up and closed higher than the opening price. Before we jump into learning about different candlestick charts, there are few assumptions which need to be kept in mind that are specific to the candlestick charts. 71

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1.Strength is represented by a bullish or green candle and weakness by a bearish or red candle. One should ensure that whenever they are buying it is a green candle day and whenever they are selling, ensure that it’s a red candle day. 2.The textbook definition of a patterns states certain criteria, but one should state that there could be minor variations to the pattern depending on certain market conditions. 3.One should look for a prior trend. If you are looking at a bullish reversal pattern, then the prior trend should be bearish and if you are looking for a bearish reversal pattern then the prior trend should be bullish. Candlestick Patterns (Every trader should know) On this Chapter will present all colors , you can find the candlesticks in different platforms . Please remember Black color will be the same like Red color . And White color will be the same with green color in candlesticks .

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A doji represents an equilibrium between supply and demand, a tug of war that neither the bulls nor bears are winning. In the case of an uptrend, the bulls have by definition won previous battles because prices have moved higher. Now, the outcome of the latest skirmish is in doubt. After a long downtrend, the opposite is true. The bears have been victorious in previous battles, forcing prices down. Now the bulls have found courage to buy, and the tide may be ready to turn. For example Doji Star

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A “long-legged” doji is a far more dramatic candle. It says that prices moved far higher on the day, but then profit taking kicked in. Typically, a very large upper shadow is left. A close below the midpoint of the candle shows a lot of weakness. Here’s an example of a long-legged doji. For example Long-legged Doji

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A “gravestone doji” as the name implies, is probably the most ominous candle of all, on that day, price rallied, but could not stand the altitude they achieved. By the end of the day. They came back and closed at the same level. Here ’s an example of a gravestone doji. For example gravestone doji

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A “Dragonfly” doji depicts a day on which prices opened high, sold off, and then returned to the opening price. Dragonflies are fairly infrequent. When they do occur, however, they often resolve bullishly (provided the stock is not already overbought as show by Bollinger bands and indicators such as stochastic). For example Dragonfly doji

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The hangman candle, so named because it looks like a person who has been executed with legs swinging beneath, always occurs after an extended uptrend The hangman occurs because traders, seeing a sell-off in the shares, rush in to grab the stock a bargain price. In order for the Hanging Man signal to be valid,the following conditions must exist: ·The stock must have been in a definite uptrend before this signal occurs. This can be visually seen on the chart. ·The lower shadow must beat least twice the size of the body. ·The day after the Hanging Man is formed, one should witness continued selling. ·There should be no upper shadow or a very small upper shadow. The color of the body does not matter, but a black body would be more positive than a white body.

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For example

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The hammer puts in its appearance after prolonged downtrend. On the day of the hammer candle, there is strong selling, often beginning at the opening bell. As the day goes on, however, the market recovers and closes near the unchanged mark, or in some cased even higher. In these case the market potentially is “hammering” out a bottom. In order for the Hammer signal to be valid, the following conditions must exist: ·The stock must have been in a definite downtrend before this signal occurs. This can be visually seen on the chart. ·The lower shadow mus tbe at least twice the size of the body. ·The day after the Hammer is formed, one should witness continued buying. ·There should be no upper shadow or a very small upper shadow. The color of the body does not matter, but a white body would be more positive than a black body.

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For example

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For example

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A bullish engulfing candle occur safter a significant downtrend. Note that the engulfing candle must encompass the real body of the previous candle, but need not surround the shadow. In order for the Bullish Engulfing signal to be valid, the following conditions must exist: ·The stock must have been in a definite downtrend before this signal occurs. This can be visually seen on the chart. ·The second day of the signal should be a white candle opening below the Close of the previous day and closing above the Open of the previous day’s black candle

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For example

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A bearish engulfing candle occurs after a significant uptrend. Again, the shadows need not be surrounded. In order for the Bullish Engulfing signal to be valid, the following conditions must exist: ·The stock must have been in a definite downtrend before this signal occurs. This can be visually seen on the chart. ·The second day of the signal should be a white candle opening below the Close of the previous day and closing above the Open of the previous day’s black candle.

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For example

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On the dark cloud cover day, the stock closes at least half way into the previous white capping candle. The larger the penetration of the previous candle (that is , the closer this candle is a being a bearish engulfing), the more powerful the signal. Traders should pay particular attention to a dark cloud cover candle if it occurs at an important resistance area and if the end of day volume is strong. In order for the Dark Cloud signal to be valid, the following conditions must exist: ·The stock must have been in a definite uptrend before this signal occurs. This can be visually seen on the chart. ·The second day of the signal should be a black candle opening above the high of the previous day and closing more than half way into the body of the previous day’s white candle.

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For example

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The piercing pattern often will end a minor downtrend (a downtrend that often lasts between five a fifteen trading days) The day before the piercing candle appears, the daily candle should ideally have a fairly large dark real body, signifying a strong down day. In the classic piercing pattern, the next day’s candle gaps below the lower shadow, or previous day’s low. In order for the Piercing signal to be valid, the following conditions must exist: ·The stock must have been in a definite downtrend before this signal occurs. This can be visually seen on the chart. ·The second day of the signal should be a white candle opening below the low of the previous day and closing more than half way into the body of the previous day’s black candle

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For example

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The evening star pattern occurs during a sustained uptrend. On the first day we see a candle with a long white body. Everything looks normal and the bulls appear to have full control of the stock. Tn the second day, however, a star candle occur. For this to be a valid evening star pattern, the stock must gap higher on the day of the star. The star can be either black or white. A star candle has a small real body and often contains a large upper shadow. On the third day, a candle with a black real body emerges. This candle retreats substantially into the real body of the first day. The pattern is made more powerful if there is a gap between the second and third day’s candles. However, this gap is unusual, particularly when it comes to equity trading. The further this third candle retreats into the real body of the first day’s candle, the more powerful the reversal signal. ·The stock must have been in a definite downtrend before this signal occurs. This can be visually seen on the chart. ·The second day of the signal should be a white candle opening below the low of the previous day and closing more than half way into the body of the previous day’s black candle

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For example

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The morning star, that on the first day there is a large dark candle. The middle day is not a perfect star, because there is a small lower shadow, but the upper shadow on top of a small real body gives it a star quality. The third candle is a large white candle that completes the reversal. Not how the third candle recovered nearly to the highs of the first day and occurred on strong volume. In order for the Morning Star signal to be valid, the following conditions must exist: ·The stock must have been in a definite downtrend before this signal occurs. This can be visually seen on the chart. ·The first day of the signal must be a long dark body. The second day must be a day of indecision. The third day should be along white candle reaching at least half way into the body of the first day’s dark candle.

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For example

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The shooting star can appear only at a potential market top. If a shooting star occurs after a candle with a large real body, typically it is that much stronger a warning because it shows that the price cannot sustain high levels. The day the shooting star occurs ,the market ideally should gap higher. The stock should then rally sharply. At this point, it appears as though the longs are in complete control. Sometime during the day, however, profit taking ensues. The stock closes near the unchanged market, as shown by a small real body. Therefore a shooting star has a small real body and a large upper shadow. Typically, there will be either no lower shadow or a very small one. In order for the Shooting Star signal to be valid, the following conditions must exist: ·The stock must have been in a definite uptrend before this signal occurs. This can be visually seen on the chart. ·The Upper shadow must beat least twice the size of the body. ·The day after the Shooting Star is formed, one should witness continued selling. ·There should be no lower shadow or a very small lower shadow. The color of the body does not matter, but a black

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For example

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The inverted hammer can only occur after a sustained downtrend, the stock is in all probability already oversold. Therefore, the inverted hammer signifies that traders who have held long positions in the security, most of whom are now showing large losses, often are quick to dump their shares by selling into strength .

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For example

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The bullish harami candle can occur in either bullish or bearish trends, but the colors are reversed: A large black body precedes a smaller white real body, and this gives out a bullish precedes a smaller white real body, and this gives out a bullish signal: it implies that the stock is poised to move upward. In signal: In either bullish or bearish harami, the upper and lower shadows can be of any size, and theoretically could even go above the real body of the clear candle day. In practice, however, the harami day’s shadows often are small and typically are contained well within the real body of the previous day’s candle. In order for the Bullish Harami signal to be valid, the following conditions must exist: ·The stock must have been in a definite downtrend before this signal occurs. This can be visually seen on the chart. ·The second day of the signal should be a white candle opening above the Close of the previous day and closing below the Open of the previous day’s black candle.

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For example

In order for the Bearish Harami signal to be valid, the following conditions must exist: ·The stock must have been in a definite uptrend before this signal occurs. This can be visually seen on the chart. ·The second day of the signal should be a dark candle opening below the Close of the previous day and closing above the Open of the previous day’s white candle.

101

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For example

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Marubozu means “close-cropped” Typically, the marubozu is a long candle that implies the day’s trading range has been large. A marubozu candle lacks either an upper or lower shadow. On rare occasions it can lack both a upper or lower shadow. When a full marubozu occurs, or one that is very close to full, it is very well worth noting. If it is a white candle, then it signals extreme conviction among buyers. Conversely, if it is a dark candle, then it indicates sellers were eager to flee. AS always, you should pay careful attention to the next day trading to see if there is follow through. A full or nearly full marubozu implies that there is strong buying or selling interest depending on the color. If there is follow through early the next day, the stock is likely to trend in that same direction for the next few sessions. That awareness can be important for the trader.

103

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For example

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Spin top , the shadow are relatively small and the candle has a very small range. When combined with low volume, traders may be expressing disinterest. Spinning Top High Wave Definition: A Spinning Top Wave, also called a High Wave candle, is candlestick that has an open and close price near each other which produces a small real body and color is of no importance. They also have long upper and lower shadows that significantly exceed the length of the body. These types of candlesticks indicate indecision and subsequent consolidation. Practical Use: Technical analysts will often watch for Spinning Top High Wave candlesticks and then "join the sidelines." After such a volatile session, traders will often wait for additional confirmation of an upward or downward price movement.

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For example

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High wave candle, on the other hand, portrays a situation where there is an active tug of war between the bulls and bears. This candle shows a market has lost a clear sense of direction. If it occurs on high volume, then it indicates the market’s general confusion about the direction prices are headed ·High Wave candles show the confusion among traders ·The size of the real body shows the lack of consensus among traders to sustain the current trend ·Indicates an early sign of a possible shift in the current uptrend or downtrend ·The candle has a small real body of either color ·The size of both shadows are particularly long, but are not required to be the exact same length ·Ignore in a trading range: price is pausing before breaking out ·Caution is recommended when encountering such candles

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For example

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The three black crows candle formation does not happen very frequently in stock trading, but when it does occur swing traders should be very alert to the crow’s caw. The candlestick’s metaphor is three crows sitting in a tall tree. On the day the first black crow makes its appearance, the formation is most predictive if the first “crow” or dark candlestick closes below the previous candle’s real body. Two more long-bodied consecutive down days then ensue. On each of these days, it appears as if the stock wants to regain its former strength, as the stock opens higher than the close on the previous day. By the end of each session, however, the sellers regain control and the stock drops to a new closing low.

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For example

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The three white soldiers pattern is most potent when it occurs after an extended decline and a period of subsequent consolidation. When a particular stock posts a decline followed by sideways movement, the appearance at that point of three white soldiers signals that higher prices are likely ahead. The first of the three white soldiers is a reversal candle. It either ends a downtrend or signifies that the stock Is moving out of a period of consolidation after a decline. The candle on day two may open within the real body of day one. The pattern is valid as long as the candle of day two opens in the upper half of day one’s range. By the end of day two, the stock should close near its high leaving a very small or nonexistent upper shadow. The same pattern is then repeated on day three.

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For example

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The tweezers formation always involves two candles. At a tweezers top, the high price of two nearby sessions is identical or very nearly so. In a high priced stock there may be a few cents variation, and I believer it should still be considered a tweezers. At a tweezers bottom, the low price of two sessions that come in close succession is the same. For simplicity, lets talk just about the tweezers bottom. In some instances, the tweezers bottom is formed by two real candlestick bodies that make an identical low. In other instances, the lower shadows of two nearby candles touch the same price level and the stock then bounces higher. A third possibility is that the lower shadow of one day and the real body of a nearby session hit the same bottom level.

113

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For example

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Stick Sandwich It occurs during a Downtrend; confirmation is required by the candles that follow the Pattern. – The First Candle is black, it has a short Lower shadow (Or it has not a Lower Shadow) that represents a new Low in the Downtrend. – The Second Candle is white, it has the Open above the Close of the First Candle (The Real Body is above the close of the First Candle). – The Third Candle is black, it has the Open above the Close of the Second Candle whereas it has the Close at the same level(More or less) of the Close of the First Candle(So that it fully contains the Real Body of the Second Candle).

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– It occurs during an Uptrend; confirmation is required by the candles that follow the Pattern. – The First Candle is white, it has a short Upper shadow (Or it has not an Upper Shadow) that represents a new High in the Uptrend. – The Second Candle is black, it has the Close below the Open of the First Candle (The Real Body is below the Close of the First Candle). – The Third Candle is white, it has the Open below the Close of the Second Candle whereas it has the Close at the same level(More or less) of the Close of the First Candle(So that it fully contains the Real Body of the Second Candle).

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Dumpling top pattern Normally it should be a signal of Bearish reversal of the current Trend. – It occurs during an Uptrend; confirmation is required by the candles that follow the Pattern. –The Pattern starts during an Uptrend, then it becomes a “Sideways” Trend (That represents the indecision of the Markets); at the end of the Pattern, there is a reversal in the direction of the Trend and it becomes a Downtrend. – This Pattern is quite rare; is important that there is a Gap Down after the “Sideways” Trend and just before the start of the Downtrend (To obtain a further confirmation of the reversal of the Trend, as the Pattern suggests).

117

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For example

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Fry pan bottom pattern – Normally it should be a signal of Bullish reversal of the current Trend. – It occurs during a Downtrend; confirmation is required by the candles that follow the Pattern. – The Pattern starts during a Downtrend, then it becomes a “Sideways” Trend (That represents the indecision of the Markets); at the end of the Pattern, there is a reversal in the direction of the Trend and it becomes an Uptrend. – This Pattern is quite rare; is important that there is a Gap Up after the “Sideways” Trend and just before the start of the Uptrend (To obtain a further confirmation of the reversal of the Trend, as the Pattern suggests).

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For example

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Tower top pattern It occurs during an Uptrend; confirmation is required by the candles that follow the Pattern. – The First Candle is long and white. – The next Candles that are in the “Sideways” Phase, are Spinning Tops (Black or white) and they show the indecision of the Market. – The Last Candle is long and black, that is the start of the reversal of the current Trend.

121

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For example

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Tower bottom pattern – It occurs during a Downtrend; confirmation is required by the candles that follow the Pattern. – The First Candle is long and black. – The next Candles that are in the “Sideways” Phase, are Spinning Tops (Black or white)and they show the indecision of the Market. – The Last Candle is long and white, that is the start of the reversal of the current Trend.

123

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For example

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Mat Hold pattern It occurs during an Uptrend; confirmation is required by the candles that follow the Pattern. – The First Candle is long and white. – Then there is a Gap Up between the First and Second Candle. – The Second Candle is black, it has a short Real Body; moreover it has the Close above the Close of the First Candle. – The Third Candle can be white or black (It doesn’t matter), but it has a short Real Body. – The Fourth Candle is black, with a short Real Body. – The Second, Third and Fourth Candle represent a decline in prices; moreover their Real Bodies are above the Low of the First Candle. – The Fifth Candle is long and white; it has the Close above the High of the Second Candle.

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– It occurs during a Downtrend; confirmation is required by the candles that follow the Pattern. – The First Candle is long and black. – Then there is a Gap Down between the First and Second Candle. – The Second Candle is white, it has a short Real Body; moreover it has the Close below the Close of the First Candle. – The Third Candle can be white or black (It doesn’t matter), but it has a short Real Body. – The Fourth Candle is white, with a short Real Body. – The Second, Third and Fourth Candle represent a rise in prices; more over their Real Bodies are below the High of the First Candle. – The Fifth Candle is long and black; it has the Close below the Low of the Second Candle.

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For example :

For example

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Abandoned baby pattern –It occurs during a Downtrend; confirmation is not required by the candles that follow the Pattern (Although it’s better if you search for confirmation). – The First Candle is long and black. – The Second Candle is a Doji Candle, that gaps down from the Previous Candle. – The Third Candle is long and white; it has the Open above the Second Candle.

Tri star doji It occurs during a Downtrend; confirmation is required by the candles that follow the Pattern. – The Second Doji is below the other Two Doji Candles.

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Above below the Stomach pattern – Normally it should be a signal of reversal of the current Trend. – You can find it in the variants: Above and Below, depending on the Trend in which is located.

Below The Stomach – It occurs during an Uptrend; confirmation is required by the candles that follow the Pattern . – The First Candle is long and white. – The Second Candle is black (Although it could be also white); it has the Open below or at the same level of the midpoint of the Real Body of the First Candle. Whereas it has the Close below the Open of the First Candle and below the midpoint of the Real Body of the First Candle (In the case which the Second Candle is black).

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Thrusting Line – Normally it should be a signal of continuation of the current Trend. – It occurs during a Downtrend or an Uptrend; confirmation is required by the candles that follow the Pattern. – The Pattern is characterized by Two Candles of opposite color (Black and white in case of a Downtrend; white and black in case of an Uptrend).

The First Candle is long and black (In case of a Downtrend) or is long and white (In case of an Uptrend). – The Second Candle has the Open below the Low of the First Candle, whereas it has the Close near (But below) the Midpoint of the Real Body of the First Candle (In case of a Downtrend). The Second Candle has the Open above the High of the First Candle, whereas it has the Close near (But above) the Midpoint of the Real Body of the First Candle (In case of an Uptrend).

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Separating Line pattern – Normally it should be a signal of continuation of the current Trend. – You can find it in the variants: Bullish and Bearish, depending on the Trend in which is located.

Bearish Separating line – It occurs during a Downtrend; confirmation is required by the candles that follow the Pattern. – The First Candle is long and white. – The Second Candle is long and black; it has the Open at the same level (More or less) of the Open of the First Candle.

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Three line Strike – Normally it should be a signal of continuation of the current Trend. – You can find it in the variants: Bullish and Bearish, depending on the Trend in which is located.

– It occurs during an Uptrend; confirmation is required by the candles that follow the Pattern. – The First, Second and Third Candle are white; more over each Candle has the Close above the Close of the Previous Candle. – The Fourth Candle is long and black; it has the Open above the Open of the Previous Candles while it has the Close below the Open of the First Candle (The Fourth Candle fully contains within his Real Body the Three Previous Candles).

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Meeting line pattern – It occurs during a Downtrend; confirmation is required by the candles that follow the Pattern. – The First Candle is long and black. – The Second Candle is long and white; it has the Close at the same level (More or Less) of the Close of the First Candle.

– It occurs during an Uptrend; confirmation is required by the candles that follow the Pattern. – The First Candle is long and white. – The Second Candle is long and black; it has the Close at the same level (More or Less) of the Close of the First Candle.

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Low price gapping play – Normally it should be a signal of continuation of the current Trend. – It occurs during a Downtrend; confirmation is required by the candles that follow the Pattern. – The First Candle is long and black. – The Second, Third and Fourth Candle, have a short Real Body and they are near the level of the Low of the First Candle. – The Fifth Candle is long and black, that gaps down from the Previous Candle. – The “Sideways” Period, can contain up to Eleven Candles (Not necessarily Three Candles); these candles are the Spinning Tops (That have short Real Body).

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For example

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High price gapping play – Normally it should be a signal of continuation of the current Trend. – It occurs during an Uptrend; confirmation is required by the candles that follow the Pattern. – The First Candle is long and white. – The Second, Third and Fourth Candle, have a short Real Body and they are near the level of the High of the First Candle. – The Fifth Candle is long and white, that gaps up from the Previous Candle. – The “Sideways” Period, can contain up to Eleven Candles (Not necessarily Three Candles); these candles are the Spinning Tops (That have short Real Body).

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Homing Pigeon pattern – Normally it should be a signal of Bullish reversal of the current Trend. – It occurs during a Downtrend; confirmation is required by the candles that follow the Pattern. – The First Candle is long and black, whereas the Second Candle is black but is shorter than the First Candle. The Real Body of the Second Candle is fully contained within the Real Body of the First Candle. – Confirmation of the Pattern and the reversal of the Trend: when the Close of a Candle that follows the “Homing Pigeon” is below the Lowest Low of the Two Candle of the Homing Pigeon.

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8-10-12-13 New price lines – It occurs during an Uptrend; confirmation is required by the candles that follow the Pattern. – The Pattern is characterized by eight consecutive candles, each with a higher High. – To obtain a further confirmation of the Pattern, you should check the Close of the last Candle Line: if it is over the Top of the Real Body of the Previous Candle, there are more chances that there will be a rise in Prices. If the Close is below the Top of the Real Body of the Previous Candle , there are more chances that there will be a fall in Prices.

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Scoop pattern – It occurs during a Sideways Trend; confirmation is required by the candles that follow the Pattern. – The Pattern starts showing the indecision of the Markets (Spinning Tops, Doji, Small Candles, etc… ). (1) – Then the Price starts to fall (Probably due to some Traders that expected a rise in the prices, but now that the trend is sideways they are selling because they do not believe anymore in a possible rise). (2) – This decline in Prices attracts other Traders, that hope in a possible Rise in the Prices after the fall. For this reason the prices start to rise: if the prices go above the phase of indecision, it will begin a new Uptrend; if not, the Pattern will fail. (3)

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J-Hook pattern and Inverted J-Hook pattern – Normally it should be a signal of continuation of the current Trend. – It occurs during an Uptrend; confirmation is required by the candles that follow the Pattern. – The Pattern starts with a rapid increase in the Prices. (1) – Then there is a Candlestick Pattern that gives a bearish signal (So the Traders start to sell). (2) – The prices fall, then reach a level of “indecision”; at the end of this phase of indecision, there should be a Bullish signal. (3) –The prices start to rise and they reach the Previous High (The one formed from the Phase (1) ). If the prices keep rising, going above this High, there should be a new Uptrend in Prices. –If the prices don’t go above the High, the Pattern has failed; in this case the Pattern creates the Double Top Pattern (A pattern from the Technical analysis).

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Cradle pattern Normally it should be a signal of reversal of the current Trend. – It occurs during a Downtrend; confirmation is required by the candles that follow the Pattern. – The Pattern starts with a long and black Candle, during a downtrend (Due to the Traders that are selling because they are worried by the downtrend). – Then there is a phase of indecision in the Prices (There are Doji Candles, Spinning Tops, Hammer, Inverted Hammer), so the Prices remain in a precarious balance. –At the end of the Pattern, starts a rise in the Prices with a long and white Candle (That shows the strength of the rise).

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Rising three methods – It occurs during an Uptrend; confirmation is required by the candles that follow the Pattern. – The First and Fifth Candle are white and are longer than the other Three Candles of the Pattern. – The Second, Third and Fourth Candle are black (Or they alternate the color: it only matters that they represent a Decline in Prices; normally is the Third Candle that can be of any color). Moreover these Candles are fully contained within the Real Body of the First Candle (or within the High-Low Range of the First Candle); while the Lows are above the Open of the First Candle and the Highs are below the Close of the First Candle. – The Close of the Fifth Candle is above the Close of the First Candle

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Falling Three Methods – It occurs during a Downtrend; confirmation is required by the candles that follow the Pattern. – The First and Fifth Candle are black and are longer than the other Three Candles of the Pattern. – The Second, Third and Fourth Candle are white(Or they alternate the color: it only matters that they represent a Rise in Prices; normally is the Third Candle that can be of any color). Moreover these Candles are fully contained within the Real Body of the First Candle (or within the High-Low Range of the First Candle); while the Lows are below the Open of the First Candle and the Highs are above the Close of the First Candle. – The Close of the Fifth Candle is below the Close of the First Candle.

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Deliberation pattern or Stalled pattern – It occurs during an Uptrend; confirmation is required by the candles that follow the Pattern. – Normally it should be a signal of Bearish reversal of the current Trend. – The Pattern is composed by Three White Candles: the First One and the Second One have their Real Body longer than the Real Body of the Third Candle. – The Open and Close of each Candle, should be higher than The Open and Close of the Previous Candle. – The Third Candle has a short Real Body, it can be also a Doji Candle; moreover, it has an Upper Shadow very tall. Lastly, it has the Open near the level of the Close of the Second Candle. –The confirmation of the Bearish Reversal could be from the next Candles, when one of them (While is falling) overcomes the midpoint of the Real Body of the Second Candle.

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Advance block pattern – It occurs during an Uptrend; confirmation is required by the candles that follow the Pattern. – Normally it should be a signal of Bearish reversal of the current Trend. – The Pattern is composed by Three White Candles, that gradually have a shorter Real Body. – The Open of the Second and Third Candle should be within the Real Body of the Previous Candle. – The Close of the Candles are often far away from their respective Highs. – The Shadows of the Candles are gradually taller, especially the Upper Shadows of the Last Two Candles. – The confirmation of the Bearish Reversal could be from the next Candles, when one of them (While is falling) overcomes the midpoint of the Real Body of the First Candle.

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Kicker You can see in the above graphic why this pattern is so explosive. Like most candle patterns there is a bullish and bearish version. In the bullish version, the stock is moving down and the last red candle closes at the bottom of the range. Then, on the next day, the stock gaps open above the previous days high and close. This "shock event" forces short sellers to cover and brings in new traders on the long side. This is reversed in the bearish version.

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BULLISH UNIQUE THREE RIVER BOTTOM Definition This is a three-candlestick pattern that somewhat looks like the Bullish Morning Star. It appears in a downtrend. The first day’s black candlestick engulfs the following small black body, which characteristically has a long lower shadow. The pattern is completed by a small white body, which closes below the close of the second day. Recognition Criteria 1. The market is characterized by a prevailing downtrend. 2. A black candlestick is observed on the first day. 3.The second day is a black body that opens higher, trades at a new low, and then closes near the high. 4. The third day is a short white day below the second day.

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BULLISH DOWNSIDE GAP TWO RABBITS Definition This is a three-candlestick bullish reversal pattern. The gap between the white body of the second day and the black body of the first day represents the downside gap. The white candlesticks of the second and third day represent the rabbits ready to jump out of their burrow.

Recognition Criteria 1. The market is characterized by a prevailing downtrend. 2. A normal or long black candlestick appears on the first day. 3. The second day is a short white candlestick that gaps down. 4. On the last day another white candlestick appears that opens at or below the open, and then closes above the close of the previous day, but still below the close of the first day.

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BULLISH THREE STARS IN THE SOUTH Definition This pattern consists of three consecutive black candlesticks which have consecutively lower closes and higher lows in a slowly deteriorating downtrend. Recognition Criteria 1. The market is characterized by a prevailing downtrend. 2. A black candlestick with almost no upper shadow and a long lower shadow appears on the first day. 3. The next day is another black candlestick closing below the previous day’s close and having an opening in the range of the previous day’s body. However, it has a higher low. 4. The last day is a small black Marubozu with a higher low.

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BULLISH CONCEALING BABY SWALLOW Definition This is a pattern formed by four black candlesticks. After two falling Black Marubozu days, a short down day engulfed by a fourth black day shows that the downtrend has eroded significantly, despite the final close is at a new low. Recognition Criteria 1. Two falling Black Marubozu days at the beginning confirms the downtrend. 2. The third day is a short black with downside gap. However, this day trades into the previous day’s body, producing a long upper shadow. 3. The fourth black day completely engulfs the third day including the shadow.

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BULLISH LADDER BOTTOM Definition This is a five candlestick pattern that starts with three strong black candlesticks. The downtrend continues with the fourth lower close. The next day gaps higher and closes much higher than the previous day or two. This may imply a bullish reversal. Recognition Criteria 1. The market is characterized by a prevailing downtrend. 2. Three strong black candlesticks occur much like the Three Black Crows pattern. 3. The fourth black candlestick closes also lower but has a long upper shadow. 4. The fifth day is a strong white with an open above the previous day’s body.

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Recognition Criteria 1. The pattern begins with a black candlestick. 2. The next two days are also black days, and each one closes lower than the previous day’s close. 3. The third day gaps down and opens below the close of the second day. 4. The fourth day is white.

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BULLISH DESCENT BLOCK Definition This pattern consists of three consecutive black candlesticks with consecutively lower closes in a downtrend. It is the compliment of the Bearish Advanced Block Pattern.

Recognition Criteria 1. The market is characterized by a prevailing downtrend. 2. A black candlestick appears on the first day. 3. The next two days are black candlesticks with each closing below the previous day’s close and having an opening in the range of the previous day’s body. 4. The last two days have long lower shadows.

Pattern Requirements and Flexibility The first candlestick of a Bullish Descent Block should be a normal or long black candlestick. The following consecutive black candlesticks must open within the range of the previous day’s body, and close below the previous day’s close. The bodies of the three black candlesticks should get shorter, while the lower shadows get longer.

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BULLISH DELIBERATION BLOCK Definition This pattern consists of three consecutive black candlesticks with consecutively lower closes in a downtrend. It is the compliment of the Bearish Deliberation Block Pattern.

Recognition Criteria 1. Market is characterized by a prevailing downtrend. 2. A black candlestick appears on the first day. 3. The next day is another black candlestick, which opens in the range of the previous day’s body and closes below the previous day’s close. 4. The final day is a short black candlestick, a spinning top or a Doji that gaps down below the second day.

Pattern Requirements and Flexibility The first two black candlesticks appearing in the Bullish Deliberation Block should not be short. The second day should open at or higher than the close of the first day, while the close of the second day should be at or below the close of the first day. The gapping down third candlestick can be a short black candlestick or a Doji. 161

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BULLISH SQUEEZE ALERT Definition This is a three-day bullish reversal pattern. It was developed because of the frequent event where prices can break to the upside following this pattern, especially if the pattern is preceded by a strong downside move.

Recognition Criteria 1. The market is characterized by a prevailing downtrend. 2. A black candlestick appears on the first day. 3. The second and third days each have lower highs and higher lows than the previous day. Their color is not important. 4. The sizes of the bodies of the three days do not matter.

Pattern Requirements and Flexibility The first candlestick should be a black candlestick. The other two candlesticks can be of any color and length but they should have lower highs and higher lows consecutively.

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BULLISH AFTER BOTTOM GAP UP Definition This is a five candlestick pattern that starts with three black candlesticks. The market signals a bottom reversal with the change in the color at the fourth candlestick. The next day gaps higher and makes a strong upward move, confirming the reversal. Recognition Criteria 1. The pattern begins with a black candlestick. 2. The next two days are also black days, and each one closes lower than the previous day’s close. 3. The third day gaps down and opens below the close of the second day. 4. The fourth day is white. 4. The fifth day is a strong white with an open forming (causing) a gap above the previous day’s close. Pattern Requirements and Flexibility The first three days of the Bullish After Bottom Gap Up are strong black candlesticks with consecutive lower opens and lower closes. The third black should gap down. The fourth day is a white candlestick that opens higher and covers the gap. The fifth day is a strong white candlestick that makes a body gap with the fourth day. There are no short candlesticks in this pattern.

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I hope I didn’t confuse you with all this Information regarding the candlesticks . Lets make it clear : BULLISH REVERSAL CANDLESTICK PATTERNS Bullish reversal candlestick patterns signify that buyers are momentarily in control. However, this doesn’t mean that you should buy immediately when you spot such a pattern because you must take the market conditions into consideration (more on that later). For now, these are five bullish reversal candlestick patterns we’ll be discussing: • Hammer. • Bullish engulfing pattern. • Piercing pattern. • Tweezer bottom. • Morning star HAMMER Hammer A hammer is a (one-candle) bullish reversal pattern that forms after a decline in price. Here’s how to recognize it: • Little or no upper shadow. • The price closes at the top ¼ of the range. • The lower shadow is about two or three times the length of the body. And this is what a hammer means: 1. When the market opened, the sellers took control and pushed the price lower. TLT

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2. At the selling climax, huge buying pressure stepped in which pushed the price higher. 3. The buying pressure was so strong that it closed above the opening price.

BULISH ENQULFING PATTERN Bullish Engulfing Pattern A bullish engulfing pattern is a (twocandle) bullish reversal pattern that forms after a decline in price. Here’s how to recognize it: • The first candle has a bearish close. • The body of the second candle completely “covers” the body of the first candle (without taking into consideration the shadow). • The second candle closes bullish

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PIERCING PATTERN A piercing pattern is a (two-candle) reversal pattern that forms after a decline in price. Unlike the bullish engulfing pattern which closes above the previous open, the piercing pattern closes within the body of the previous candle. Thus, in terms of strength, the piercing pattern isn’t as strong as the bullish engulfing pattern. Here’s how to recognize it: • The first candle has a bearish close. • The body of the second candle closes beyond the halfway mark of the first candle. • The second candle closes bullish

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TWEEZER BOTTOM When I say tweezer, I don’t mean the tool you use to pick your nose hairs (although it sure looks like one). Instead, a tweezer bottom is a (two-candle) reversal pattern that occurs after a decline in price. Here’s how to recognize it: • The first candle shows rejection of lower prices. • The second candle re-tests the low of the previous candle and closes higher

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MORNING STAR A morning star is a (three-candle) bullish reversal pattern that forms after a decline in price. Here’s how to recognize it: •The first candle has a bearish close. •The second candle has a small range. •The third candle closes aggressively higher (at more than 50% of the first candle

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BEARISH REVERSAL CANDLESTICK PATTERNS Bearish reversal candlestick patterns signify that sellers are momentarily in control. However, this doesn’t mean you should sell immediately when you spot such a pattern because you must take the market conditions into consideration (more on that later). For now, these are the five bearish reversal candlestick patterns that we’ll be discussing: • Shooting star • Bearish engulfing pattern • Dark cloud cover • Tweezer top • Evening star SHOOTING STAR A shooting star is a (one-candle) bearish reversal pattern that forms after an advance in price. Here’s how to recognize it: • There is little or no lower shadow. • The price closes at the bottom quarter of the range. • The upper shadow is about two or three times the length of the body

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BEARISH ENGULFING PATTERN A bearish engulfing pattern is a (two-candle) bearish reversal pattern that forms after an advance in price. Here’s how to recognize it: • The first candle has a bullish close. • The body of the second candle completely “covers” the body first candle (without taking into consideration the shadow). • The second candle closes bearish.

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DARK CLOUD COVER A dark cloud cover is a (two-candle) reversal pattern that forms after an advance in price. Unlike the bearish engulfing pattern that closes below the previous open, the dark cloud cover closes within the body of the previous candle. Thus, in terms of strength, dark cloud cover isn’t as strong as the bearish engulfing pattern. Here’s how to recognize it: • The first candle has a bullish close. • The body of the second candle closes beyond the halfway mark of the first candle. • The second candle closes bearish

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TWEEZER TOP A tweezer top is a (two-candle) reversal pattern that occurs after an advance in price. Here’s how to recognize it: • The first candle shows rejection of higher prices. • The second candle re-tests the high of the previous candle and closes lower

EVENING STAR An evening star is a (three-candle) bearish reversal pattern that forms after an advance in price. Here’s how to recognize it: • The first candle has a bullish close. • The second candle has a small range. • The third candle closes aggressively lower (more than 50% of the first candle).

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QUESTIONS 1) Where is the body of Hammer ? A.up B.Down C.Full 2) What is the second candle stick on bullish Enguilfing pattern ? A. Green B. Red C. Full close 3) What is the first candle in BULLISH ENGUILFING pattern ? A. Green B. Red C. Amber 4) What is the tweezer bottom ? A. On the bottom B. Red candle stick C. All the above 174

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5) How many candle sticks are morning star ? A. 2 B. 3 C. 4 6) Where is the body of the shooting star . A. Up B. Down C. Middle

7) What is the second candle of bearish enguilging A. Red B. Green C. Small 8) Where is the body of tweezer bottom ? A. Up B. Down C. Middle

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9) How many candle sticks are tweezer bottom ? A.2 B.3 C.4 10) How many candle sticks are for evening star ? A. 2 B. 3 C. 4

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ANSWERS 1. A 2. A 3. B 4. C 5. B 6. B 7. A 8. B 9. A 10. B

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9-HOW MUCH MONEY WE SHOULD INVEST IN STOCK MARKET

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The 1% rule for day traders limits the risk on any given trade to no more than 1% of a trader's total account value. Traders can risk up to 1% of their account by trading either large positions with tight stop-losses or small positions with stop-losses placed far away from the entry price. The 1% Risk Rule Following the rule means you never risk more than 1-2% of your account value on a single trade. That doesn't mean that if you have a $30,000 trading account, you can only buy $600 worth of stock, which would be 2% of $30,000. You can use all of your capital on a single trade, or even more if you utilize leverage .Implementing the 2% risk rule means you take risk management steps so that you prevent losses of more than 2% on any single trade. No one wins every trade, and the 2% risk rule helps protect a trader's capital from declining significantly in unfavorable situations. If you risk 1% of your current account balance on each trade, you would need to lose 100 trades in a row to wipe out your account. If novice traders followed the 1-2% rule, many more of them would make it successfully through their first trading year. 179

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Risking 1-2% or less per trade may seem like a small amount to some people, but it can still provide great returns. If you risk 1-2%, you should also set your profit goal or expectation on each successful trade to 1.5% to 2% or more. When making several trades a day, gaining a few percentage points on your account each day is entirely possible, even if you only win half of your trades. Applying the Rule By risking 2% of your account on a single trade, you can make a trade that gives you a 2% return on your account, even though the market only moved a fraction of a percent. Similarly, you can risk 1% of your account even if the price typically moves 5% or 0.5%. You can achieve this by using targets and Stop loss Order . You can use the rule to day trade stocks or other markets such as futures or forex . Suppose you want to buy a stock at $15, and you have a $30,000 account. You look at the chart and see the price recently put in a short-term swing low at $14.90. You place a stop-loss order at $14.89, one cent below the recent low price. Once you have identified your stop-loss location, you can calculate how many shares to buy while risking no more than 1% of your account. Your account risk equates to 1% of $30,000, or $300. Your trade risk equals $0.11, calculated as the difference between your stock buy price and stop-loss price. 180

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Divide your account risk by your trade risk to get the proper position size: $300 / $0.11 = 2,727 shares. Round this down to 2,700, and this shows how many shares you can buy in this trade without exposing yourself to losses of more than 1% of your account. Note that 2,700 shares at $15 cost $40,500, which exceeds the value of your $30,000 account balance. Therefore, you need leverage of at least 2:1 to make this trade. If the stock price hits your stop-loss, you will lose about 1% of your capital or close to $300 in this case. But if the price moves higher and you sell your shares at $15.22, you make almost 2% on your money, or close to $600 (fewer commissions). This is because your position is calibrated to make or lose almost 1% for each $0.11 the price moves. If you exit at $15.33, you make almost 3% on the trade, even though the price only moved about 2%. This method allows you to adapt trades to all types of market conditions, whether volatile or sedate and still make money. The method also applies to all markets. Before trading, you should be aware where you're unable to get out at the stoploss price and could take a bigger loss than expected. Percentage Variations Traders with trading accounts of less than $100,000 commonly use the 1% rule. While 1% offers more safety, once you're consistently profitable, some traders use a 2% risk rule, risking 2% of their account value per trade. A middle ground would be only risking 1.5%, or any other percentage below 2%. 181

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For accounts over $100,000, many traders risk less than 1%. For example, they may risk as little as 0.5% or even 0.1% on a large account. While short-term trading, it becomes difficult to risk even 1% because the position sizes get so big. Each trader finds a percentage they feel comfortable with and that suits the liquidity of the market in which they trade. Whichever percentage you choose, keep it below 2%. Withstanding Losses The 1% rule can be tweaked to suit each trader's account size and market. Set a percentage you feel comfortable risking, then calculate your position size for each trade according to the entry price and stop-loss. Following the 1% rule means you can withstand a long string of losses. Assuming you have larger winning trades than losers, you'll find your capital doesn't drop very quickly, but can rise rather quickly. Before risking any money—even 1%— practice your strategy in a demo account and work to make consistent profits before investing your actual capital. Why are some trading strategies riskier than others? In general, the higher the risk on a trade, the higher the potential reward. Options that are out of the money (OTM) are less likely to expire at the strike price—they're riskier. However, if that strike price hits, then the OTM options trader will see a higher return percentage than the trader who bought a safer. That's just one example to demonstrate the most common relationship between risk and reward.

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HOW MUCH MONEY WE SHOULD RISK PER DAY TRADE ? Setting stop-loss orders and profit-taking points—and not taking on too much risk—is vital to surviving as a day trader. Professional traders often recommend risking no more than 12% of your portfolio on a single trade. If a portfolio is worth $50,000, the most at risk per trade is $500-1000$.It depends from the area of DT will do the entry . As a rule of thumb we risk higher amount in the low part of DT and less amount in the higher part of DT . HOW MUCH MONEY CAN YOU GET FROM DAY TRADING? If you pay for your charting/trading platform, or exchange entitlements then those fees are added in as well. Therefore, with a decent stock day trading strategy, and $30,000 (leveraged at 4:1), you can make roughly: $7,500 – $2000 = $5,500/month or about a 18% monthly return. IS DAY TRADING HIGH RISK? Day trading is serious business and not something you just dabble in for fun, particularly if you are using leveraged investment strategies or trading leveraged products. Whether you're just starting out or you're a seasoned investor, day trading is a complicated and risky form of investing.

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CAN YOU RISK 5% PER TRADE? How much capital you risk depends on your account size, but as a general rule, don't risk more than 2% of your account on a trade. In other words, don't lose more than 2% of your trading account on a single trade. WHAT IS 2% RULE IN TRADING? The 2% rule is an investing strategy where an investor risks no more than 2% of their available capital on any single trade. To apply the 2% rule, an investor must first determine their available capital, taking into account any future fees or commissions that may arise from trading. IS DAY TRADING LIKE GAMBLING? It's fair to say that day trading and gambling are very similar. The dictionary definition of gambling is "the practice of risking money or other stakes in a game or bet." When you place a day trade, you're betting that the random price movements of a particular stock will trend in the direction that you want. WHAT IS A GOOD RISK PERCENTAGE? The risk/reward ratio is used by traders and investors to manage their capital and risk of loss. The ratio helps assess the expected return and risk of a given trade. An appropriate risk reward ratio tends to be anything greater than 1:3. 184

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QUESTIONS 1) How much money we should risk per trade in general ? A. Apply 1% general rule B. 5% C. 10% 2) If you risk 2% ,how much should be your SL ? A. 2% B. 4% C. 7% 3) How can you see your DT in order to be successful ? A. Like your own business B. Like your hobby C. Like additional income 4) When DT start to be gambling ? A. Once we invest more than 2-3% B. Investing more than 5% C. Investing more than 10%

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5) Can you risk 10-20% per trade ? A. No B. Yes C. Sometimes 6) How you invest above Resistance ? A. Less than 2% B. More than 2% C. 2% 7) How you invest below Support ? A. 2% B. Less than 2% C. 1% 8) How you will set up your business on DT ? A. Start with slow growth B. Fast growth C. Aggressive growth

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9) How much money you will get after 20 years ,If you get daily profit 50$? A. 240000$ B. 100000$ C. 160000$ 10) Do we risk more than 2%? A. Yes very often B. Never C. Sometimes .

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ANSWERS 1. A 2. 2 3. A 4. A 5. A 6. A 7. A 8. A 9. A 10. B

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10. HOW TO BE A SUCCESFUL TRADER

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Every successful trader has one main check list and we must follow this check list like our pray . I will introduce my check list : 1: Always Use a Trading Plan. 2: Treat Trading Like a Business. 3: Use Technology. 4: Protect Your Trading Capital. 5: Study the Markets. 6: Risk Only What You Can Afford. 7: Develop a Trading Methodology. 8: Always Use a Stop Loss

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TRADING PLAN As a new trader, this is the MOST over looked part of trading. Creating a trading plan is just as important as navigating through a GPS to get to your destination. During the Market Fluidity course, we will focus on creating a trading plan well suited to your current lifestyle. Before signing up, it will advised to AT LEAST have some sort of a rough plan on hand so we know what and where we need to work on. A trading plan should include a couple few things: 1. A specific pair you would want to focus on 2. Time of day you have to focus on your pair 3. Your risk management and your daily, weekly and monthly goals. When we talk about goals, of course, everyone wants to retire their parents, or buy that car, or go on that vacation, but at the same time we have to be really realistic on what sort of a goal setting we are doing. This will affect the way we trade 100%. Sometimes people want to achieve 10% a day or 50% a week. You have to understand that banks offer a MAXIMUM of 2% a YEAR! So even if you are focused on 3% a day, and constantly hit 10% a week or 15% to 20% a month, you have set yourself up for longevity in this game. The ONLY issue people have is capital! When you have funding issues like, the only thing that should keep you going is self-belief and KNOWING that the process maybe slow, but in a year form now, it WILL pay off. 191

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Once you enroll in Market Fluidity, you will then slowly understand the importance of having a SOLID trading plan and how it will ultimately help you where you want to be in this tough and lonely game of risk. The Trading Plan components 1. Goals 6. How am I going to exit 2. When am I going to trade? 7. Position management 3. How much will I risk? Rules 4. How much profit will I look for 5. How am I going to enter trades ? TREAT TRADING LIKE A BUSSINESS 1. Have a vision for your trading 2.Think in long term .Do not trade like you are going to retire tomorrow . 3.Have a clean trading office that inspired you . 4.Have a trading plan for your trading business . 5. Fund your trading business . 6. Don’t present yourself all over the market – have a proper edge over the market . 7. Have a strict daily trading routine & follow it continuously 8. Think of your trading set up as product and services . USE TECHNOLOGY 1. 2. 3. 4.

Best tools and software for Day Trade . Computer or lap tops with 2 or 3 big screens . Very good internet Reliable Broker 192

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PROTECT YOUR TRADING CAPITAL Whether you are a new forex trader just starting out or an experienced trader with a lot of capital, protecting your capital is something that every trader should have in common. Not only that, it should be your highest priority throughout your trading career. This goes beyond just the simple act of protecting your own financial assets. Protecting your capital will be a HUGE benefit to multiple aspects of your trading. Don’t make the same mistake so many traders before you have already made. Learning from these lessons has helped me to grow my capital and trading habits, resulting in my success as a forex trader. Whether you are a new forex trader just starting out or an experienced trader with a lot of capital, protecting your capital is something that every trader should have in common. Not only that, it should be your highest priority throughout your trading career. This goes beyond just the simple act of protecting your own financial assets. Protecting your capital will be a HUGE benefit to multiple aspects of your trading. Don’t make the same mistake so many traders before you have already made. Learning from these lessons has helped me to grow my capital and trading habits, resulting in my success as a forex trader. 193

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STUDY THE MARKET How to conduct a market analysis: 7 steps 1. Determine the purpose of your study. There are many reasons why businesses might conduct market research. ... 2. Look at your industry's outlook. ... 3. Pinpoint target customers. ... 4. Compare your competition. ... 5. Gather additional data. ... 6. Analyze your findings. ... 7. Put your analysis into action What does studying the market mean? A market study is the proactive analysis of market demand for a product or service. A market study looks at all of the factors involved in the market that influence the demand for that product or service. This includes price, location, competition, substitutes, and general economic activity. How much money do I need to invest to make $1000 a month? The $1,000-a-month rule states that for every $1,000 per month you want to have in income during retirement, you need to have at least $240,000 saved. Each year, you withdraw 5% of $240,000, which is $12,000. That gives you $1,000 per month for that year. Now I will tell you one very big secret for the market . We don’t really care If the market is on downtrend on Day Trade. Even If the market is down on DT we can get our daily profit. In long investments is totally different , we lose our profit in downtrend market . 194

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RISK WHAT YOU CAN AFFORD There's one golden investment rule that you should always keep in mind: Never invest money that you can't afford to lose. Learn why this rule is important, and how to protect your assets from risk and volatility. Remember to risk all the time 1-2% of your portfolio . DEVELOP A TRADING METHODOLOGY Follow these 10 steps to forming your first trading strategy: 1. Step 1: Form Your Market Ideology.( don’t think as a gambler ) ... 2. Step 2: Choose a Market For Your Trading Strategy.( volatile , non volatile etc ) ... 3. Step 3: Choose A Trading Time Frame. ... 4. Step 4: Choose A Tool To Determine The Trend (moving averages , MACD , Stochastic etc ) ... 5. Step 5: Define Your Entry Trigger.( find and confirm the buy signals ) ... 6. Step 6: Plan Your Exit Trigger.( confirm your sell signals )… 7. Step 7 : Don’t plan to get 20% from every trade . 8. Step 8 : Use all the time Stop Loss and never remove it . 9. Step 9 : Recognize If you have Uptrend or Downtrend . Step 10: Be happy to get minimum 0.3-1% per trade . Trading is a risky business. Even before you begin your adventure into the world of stock trading, you need to have a trading strategy, which is essential for your long-term survival in this space. 195

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There are many components that compose a good trading strategy; however, there are two key steps that any successful trading plan needs to follow. It’s absolutely critical when it comes to creating your own trading strategy to first make sure your winners are larger than your losers and secondly to implement sound risk management strategies. Moving forward, we’re going to explore what ingredients are needed to build your step-by-step trading strategy. Why Have a Trading Strategy? First and foremost, it helps you monitor your trades. If you don’t have a system behind your trade it will become very difficult to find and respond to the new market conditions once you have the trade on. Developing a successful trading strategy will also introduce consistency because if you already know systematically what you’re looking for, it will improve your ability to spot trading opportunities. Essentials of a Trading Strategy The essential components of a good trading strategy are comprised of four basic elements: ·Developing directional bias, qualify the entry ·Determining stop-loss and take-profit targets ·Define your preferred time frame ·Utilize risk management 196

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Establishing a directional bias is simply a matter of deciding whether you think the stock is going up or if you think the stock is going down. Basically, developing a directional bias will assist you in determining the trend direction and whether you’re going to buy or you’re going to sell. For example If you use strategy 20 & 50 EMA . You realize you lose 30% in your entry points . Then you can optimize your entry points with more confirmation and indicators . STOP LOSS Don’t forget to use all the time Stop Loss . You will save your money . A stop-loss order is an order placed with a broker to buy or sell a specific stock once the stock reaches a certain price. A stop-loss is designed to limit an investor's loss on a security position. For example, setting a stop-loss order for 5% below the price at which you bought the stock will limit your loss to 5%. When should you put a stop loss? Once you have inserted the moving average, all you have to do is set your stop loss just below the level of the moving average. For instance, if you own a stock that is currently trading at $50 and the moving average is at $46, you should set your stop loss just below $46.

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Is stop loss a good idea? While the term “stop-loss” sounds perfect for value preservation, in practice it is not great. A stop-loss can fail as a loss limitation tool because hitting the stop price triggers a sale but does not guarantee the price at which the sale occurs. How do you decide a stop loss? The percentage method limits the stop-loss at a specific percentage. In the support method, an investor determines the most recent support level of the stock and places the stop-loss just below that level. The moving average method sees the stop-loss placed just below a longer-term moving average price. Usually we set up the SL 1 ATR lower than the price we bought .

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QUESTIONS 1) Why you need trading plans ? A. To know your entries and exits points B. To know your profit C. To know your target 2) How many screens computer you need for Day Trade ? A. 2-3 screens B. 1 screen C. I phone screen 3) How much we risk per trade ? A. Maximum 2% B. 10% C. 30% 4) Why we need to set up Stop Loss ? A. To minimize your loses B. To take more profit C. All the above

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5) Why do you need to form your first day trading strategy ? A. Set up time frame B. Set up indicators C. Set up entry and exit points on the strategy & A and B. 6) How we conduct a market analysis ? A. Gather additional data B. Look at your industry's outlook C. All the above 7) Why you need reliable broker ? A. You should ensure your money B. Less commission C. All the above 8) How you should not treat your trading plan ? A. Do not treat like a gambling B. Do not treat like your own business C. All the above

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9) How will you react If you lose the first trade ? A. Take a break and come back B. Stop for the rest of the day C. All the above 10) Why we should debrief ourselves in the end of the Day trade ? A. To improve your skills B. To check your possible mistakes C. All the above

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ANSWERS 1. A 2. A 3. A 4. A 5. C 6. C 7. C 8. A 9. C 10. C

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11. TRADING STRATEGIES

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I am pretty sure that this chapter will change your life . Please pay attention to the following strategies and I promise , you will get easy daily profit from the Stock Market . Scalping Strategy : Scalping is a trading strategy in which traders profit off small price changes for a stock. Scalping relies on technical analysis, such as candlestick charts and MACD, for execution. Is scalping a good strategy? Scalping can be very profitable for traders who decide to use it as a primary strategy, or even those who use it to supplement other types of trading. Adhering to the strict exit strategy is the key to making small profits compound into large gains. Is scalping trading good for beginners? A one-minute scalping strategy is a great technique for beginners to implement. It involves opening a position, gaining some pips, and then closing the position shortly afterwards. It's widely regarded by professional traders as one of the best trading strategies, and it's also one of the easiest to master. How do you start scalping? Trade the hot stocks each day based on the watch list you create. Buy at breakouts and see an instant move up after entry. Sell quickly if there is no move up. As soon as you have a small profit, sell half and adjust exit to your entry point on remaining position, ensuring high % of accuracy. 204

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Is scalping better than day trading? Scalping – more frequent trades, smaller wins, lesser risks. Day Trading – less frequent trades, bigger wins, higher risks. I don’t want to confuse you , Scalping is on method of strategy we use to get our daily profit . Is scalping easy? Scalping is a difficult strategy to execute successfully. One of the primary reasons is that it requires many trades over the course of time. LETS SEE HOW IT WORKS STRATEGY 1. Step 1: Identify the short-term trend The two moving averages are used to identify the current trend in the 1-minute timeframe. Use 50-period EMA & 100 EMA. The 50-period EMA is faster than the 100-period EMA, which means that it reacts to price-changes more quickly. If the faster 50-period EMA crosses above the slower 100period EMA, this reflects that average prices are starting to rise and that an uptrend is likely to establish. Similarly, a cross of the 50-period EMA below the 100-period EMA signals that average prices start to drop and that a shortterm downtrend is about to form. We’ll only take trades in the direction of the short-term trend.

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Step 2: Wait for a pullback Once we determine the short-term trend in the 1-minute chart based on the location of the slow and fast EMAs, it’s time to wait for a pullback to the moving averages. This step is important because prices tend to return to their mean value after a strong up- or down-move. Waiting for pullbacks prevents us from entering into long and short positions immediately after a strong price-change. Profit-taking activities often cause the price to reverse after a sustained move, which can lead to fake signals and losses. Step 3: Wait for the stochastics indicator to move above/below oversold/overbought conditions Finally, our Stochastic serves as the last filter and helps us take only high-probability trades. The Stochastics indicator is an oscillator that oscillates between 0 and 100, depending on the strength of recent price-moves. A reading above 80 usually signals that the recent up-move was too strong and that a down-move can be expected. This market condition is usually referred to as overbought. Similarly, a reading below 20 signals that the recent downmove was too strong that an up-move may be ahead. This market condition is usually flagged as oversold. After the price completed a pullback to the EMAs, Stochastics will usually become overbought/oversold as a result of the recent price-move.

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Buy Setup Example The following chart shows a buy setup generated by our 1minute Forex scalping strategy. Let’s take a look at what happened in the chart, step by step. 1. The 50-period EMA crossed above the 100-period EMA – The first arrow from the left shows a cross of the faster 50period EMA above the slower 100-period EMA, signaling that the EUR/USD pair is entering into an uptrend in the 1-minute chart. As long as the faster EMA remains above the slower EMA, we’ll only look for buy opportunities in this chart. 2. Price returns to EMA and Stochastics move below 80 – The next two red arrows show the pullback to the moving averages. After the 50-period EMA moved above the 100period EMA, Stochastics became overbought and the price started to make a pullback to the MAs. 3. Buy signal – The pullback lowered the reading of the Stochastics indicator to below 20, signaling an oversold market environment. Once the Stochastics indicator moves above 20 again, our system triggers a buy signal.

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STRATEGY 2. THE MOST POWERFUL STRATEGY The Follow Line indicator is a trend following indicator. The blue/red lines are activated when the price closes above the upper Bollinger band or below the lower one. Once the trigger of the trend direction is made, the Follow Line will be placed at High or Low. Trend-following indicators are technical tools that measure the direction and strength of trends in the chosen time frame. Some trend-following indicators are placed directly on the price panel, issuing a bearish signal when positioned above price and a bullish signal when situated below price . The Haul Suite is one of the good indicators to recognize uptrend and downtrend . So , as a rule of thumb , If the haul suite is red we consider we have downtrend but If its green we consider uptrend . 208

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The QQE indicator is a momentum based indicator to determine trend and sideways. The Qualitative Quantitative Estimation (QQE) indicator works like a smoother version of the popular Relative Strength Index (RSI) indicator. QQE expands on RSI by adding two volatility based trailing stop lines. •SET UP : •FOLLOW LINE INDICATOR , BBI PERIOD 6 , BBI DEVIATION 1 •HULL SUITE 30/3 •QQE MOD •BUY :WHEN QQE BLUE , FLI : BLUE , HULL SUITE : GREEN . PRICE AT OR ABOVE HAUL SUITE ,GREEN CANDLE STICK . •SELL : LATEST STAGE FLI RED , HAULE SUITE : RED , RED CANDLE STICK BELOW HAUL SUITE . •IFYOU WANNA OPTIMIZE YOUR PROFIT YOU MAY SELL ONCE THE PRICE ACTION CROSS DOWNWARD THE GREEN HAUL SUITE . •THIS STRATEGY WORKS VERY NICE AND PROPERLY WHEN THERE IS UPTREND ( Remember Uptrend when the price is above 200EMA we have Weak uptrend , above 50 EMA Healthy uptrend , above 20 EMA Strong uptrend ) . •TIME FRAME 1 MINUTE . 209

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In the following picture you will see the haul suite line ( its green and red line ) .

In the following picture you can see the Follow Line Indicator . ( It will be blue and red line ) .

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In the following picture you may see the QQE mod .

On the below picture you may check all indicators together with buy and sell signals ( FLI , QQE MOD , HULL SUITE ).

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STRATEGY 3. 20 & 50 EMA It is simply the sum of the stock's closing prices during a time period, divided by the number of observations for that period. For example, a 20-day SMA is just the sum of the closing prices for the past 20 trading days, divided by 20. In comparison with 50 MA , It predicts for the past 50 days . There is no big difference between MA & EMA . You may consider that EMA is more accurate than MA . A common trading strategy utilizing EMAs is to trade based on the position of a shorter-term EMA in relation to a longer-term EMA. For example, traders are bullish when the 20 EMA crosses above the 50 EMA or remains above the 50 EMA, and only turn bearish if the 20 EMA falls below the 50 EMA. Remember , Uptrends are characterized by higher peaks and troughs over time and imply bullish sentiment among investors. A change in trend is fueled by a change in the supply of stocks investors want to buy compared with the supply of available shares in the market. Initially , Its very difficult to recognize uptrend in any stock is coming from downtrend . One of the trigger points to recognize it. When the price start to be higher then 20 and 50 EMA . And comparing the Lows of the stock . If he have higher Lows we consider , we might start to think we are at the beginning of uptrend . 212

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-SEARCH FOR UPTREND -WHEN 20 EMA CROSS UPWARD 50 EMA -CONFIRMATION WITH STOCHASTIC UPWARD ABOVE THE BOTTOM LINE -CONFIRMATION WITH MACD CROSSOVER UPWARD . MACD BLUE LINE ABOVE THE RED SIGNAL . -AFTER 2 CONFIRMATIONS BUY -SELL AT THE LATEST STAGE WHEN 20 EMA CROSS DOWNWARD 50 EMA . -IF YOU WANT TO OPTIMIZE YOUR STRATEGY SELL WHEN THE CANDLE STICK IS CROSSING 20 EMA DOWNWARD . AND IF THE RED OR GREEN CANDLESTICK IS BETWEEN 20 AND 50 EMA . Yellow line on the below photo is 20 EMA & Green line is 50 EMA .

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STRATEGY 4: MACD CROSSOVER POINTS 1. Recognize uptrend ( HH & HL ) 2. Price action above 200 MA 3. For too many entries timeframe 1-5 minutes . 4. For less entries timeframe 15-30 minutes . 5. Confirmation with Stochastic ( blue line to be upward and above amber line ). 6. Buy when blue MACD cross the Red signal with upward movement 7. Sell when blue MACD cross the signal line with downward movement 8. Optimize your strategy and take profit earlier when the MACD BLUE Line start to fall down . 9. Don’t make any entry when the price action is below 200 MA. 10. Don’t entry in any downtrend ( HL and LL )

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STRATEGY 5: MOST ACCURATE BUY SELL SIGNAL STRATEGY A 'Super trend' indicator is one, which can give you precise buy or sell signal in a trending market. Super trend gives accurate signals on precise time. Also, the indicator is available on various trading platforms free of cost. The indicator helps the intraday traders to make faster decisions. The indicator changes color , based on whether or not you should be buying. If the super-trend indicator moves below the closing price, the indicator turns green, and it signals an entry point or points to buy. If a super-trend closes above, then the indicator shows a sell signal in red. On my personal opinion this indicator , doesn’t work very well in Downtrend and once the price is below 200 EMA . The "Trend Indicator A-V2" is an overlay showing “Smoothed Heikin Ashi”. The "Trend Indicator B-V2" uses the same values in a different way to measure the momentum of the trend and identify potential trend rejections.

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SET UP -SUPER TREND ( settings : ATR period 9, hlc 3, ATR multiplier 9) -TREND INDICATOR A-V2 ( settings: Indicator time frame : chart , MA TYPE : VWMA , MA PERIOD 52, MA PERIOD SMOOTHING 10 ) . -QQE MOD ( Settings : RSI & ATR DATA TO IDENTIFY TRENDING CONDITIONS ) RSI SMOOTHING 3,FAST QQE FACTOR 3 , THRESH HOLD 3, BOLINGER .LENGTH 50 , BB MULTIPLIER 0,35 . RSI LENGTH 6 , RSI SMOOTHING 5 , FAST QQE2 1,61. THRESOLD HOLD 3 . BUY AND SELL -BUY WHEN BLUE QQE -TREND LINE BLUE -BUY SIGNAL SUPERTREND -GREEN CANDLE STICK -THEN BUY. -SELL WHEN TREND SIGNAL SELL -RED TREND LINE -RED QQE WITH RED CANDLE STICK AT THE LATEST STAGE . -OPTIMIZE PROFIT AND SELL WHEN PRICE CROSS TREND INDICATOR 217

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SHORT ENTRIES EXIT QQE MOD BLUE -BUY AT THE FIRST GREEN CANDLE STICK -PRICE ACTION ABOVE TREND LINE -SELL AT THE LATEST STAGE CROSSING TREND LINE . BUT NOT BELOW SUPER TREND CAN BE EITHER IN BUY OR SELL ACTION

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STRATEGY 6: 50 EMA WITH SUPER TREND 'Supertrend' indicator is one, which can give you precise buy or sell signal in a trending market. As the name suggests, 'Supertrend' is a trend-following indicator just like moving averages and MACD (moving average convergence divergence). It is plotted on prices and their placement indicates the current trend. There's no technical indicator which can be 100% accurate and so is Super Trend also. It also generates false signals in the sideways market, though it gives lesser false signals as compared to other indicators. So you can combine Super Trend with other indicators to get better trading signals. Using 50 EMA with super trend , you have amazing results and you protect yourself from false signals . The 50-day EMA gives technicians a seat at the 50-yard line, the perfect location to watch the entire playing field for mid-term opportunities and natural counter wings after active trends, higher or lower. It's also neutral ground when price action is often misinterpreted by the majority. The 50day moving average is the leading average of the three most commonly used averages. Because it's shorter than the 100and 200-day averages, it's the first line of major moving average support in an uptrend and the first line of major moving average resistance in a downtrend.

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SET UP : -50 EMA -SUPERTREND -SEARCH FOR UPTREND -BUY WHEN SIGNAL BUY SUPERTREND AND PRICE JUST ABOVE OR CROSS 50 EMA -BUY AFTER CONFIRMATION WITH MACD -FOLLOW PRICE AS LONG AS ITS ABOVE 50 EMA . -SELL WHEN PRICE CROSS DOWNWARD 50 EMA

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STRATEGY 7: SET UP -Hull suite ( settings : Length 200 , Length multiplier 1 ) -MACD cross over ( settings : Fast Length : 12 , slow length 26 ,signal length 9 ) -Buy when MACD blue is above Red signal with upward movement and Hull suite Green and just cross or above Hull suite . -Sell positions for too many entries follow as primary indicator only MACD cross over points . -Forless entries follow the price action above green hull suite – When the price action cross downward the green suite : SELL .

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SET UP Now you have in your hands very powerful strategies and you will be able to practice all of them . On the above mentioned strategies you may use timeframe 130 minutes for DT , except for some strategies that I have already specified the time frame . For less entries use 15-30 minutes and for many entries 1-5 minutes timeframe . You must show very big discipline once you follow some strategy and remember If for any reason you doubt – Its better If you exit . All the above strategies I mentioned are very profitable 9098%. As a new trader , before you use some strategy in your Day Trade market , you should check it first 100 times .

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QUESTIONS 1) When we buy on strategy – Super Trend with 50 EMA ? A. When price is above or just cross 50 EMA B. Buy signal from Super Trend C. All the above 2) When we sell on strategy – Super Trend with 50 EMA ? A. When crossing downward 50 EMA . B. When we have sell signal C. When crossing downward 20 EMA . 3) When we buy with 20 & 50 EMA Strategy ? A. When 20 crossing 50 EMA upward B. When 20 is below 50 EMA ,but MACD blue is upward with Red signal . C. When stochastic is upward . 4) Do we need any confirmation for 20 and 50 EMA Strategy ? A. MACD B. Stochastic C. All the above 223

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5) When we buy on QQE mod ,Hull suite & Follow line indicator ? A. QQE is blue , Hull suite green B. Follow line indicator blue & and candle stick green above all indicators . C. All the above . 6) When we sell on QQE mod , Hull suite & follow line indicator ? A. QQE is red , Hull suite red B. Follow line indicator Red & candle stick Red . C. All the above 7) Can you optimize your profit on the above mentioned Strategy ? A. Sell when price crossing Hull Suite downward . B. Sell In the third red candle stick . C. Sell when FLI is red 8) When we buy on MACD strategy ? A. When MACD blue line is above RED signal B. Price is above 200 ema C. All the above

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9) When we sell on MACD strategy ? A. When the MACD blue line cross down ward the RED signal . B. When red signal is flatten out C. When price cross 200 EMA . 10) What is the time frame once we use the above mentioned strategy ? A. 1-5 minutes for too many entries B. 15-30 minutes for less entries C. All the above .

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ANSWERS 1. C 2. A 3. A 4. C 5. C 6. C 7. A 8. C 9. A 10. C

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12. SPECIAL TECHNIQUE

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SWING STRATEGY: A swing refers to “one move” in the markets. The idea of capturing a swing (also known as swing trading) is to exit your winners before opposing pressure comes in. The advantage of capturing a swing is that you endure “less pain” because you exit your trade before the market reverses against you. But the downside is that you’ll miss big moves in the market as you exit your trades too early. So if this approach is for you, then the key point is to exit your trades before opposing pressure steps in. This means if you’re long, you’ll want to exit your trade before selling pressure comes in. And where would that be? Possibly at swing lows, support, the lower channel, etc.

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Usually we buy on the lower part of price action ( support ) and we follow the swing trade and strategy . If you don’t entry at the beginning , Its highly recommended to get 1 swing at a time . If you catch the wave from the beginning , I would consider to keep the swings as long as the price action is going higher . Lets consider we have 2 kind of swings . A. Short Swing . ( Swing low to Swing high ) . B. Long Swing . ( We buy from lower part of price maybe support to the higher part ). A. For short Swing strategy we enter only after pullback ,after confirmation with green candle stick and indicators . SL 1 ATR lower than the price we bought . B. For long swing strategy . We buy , After confirmation with indicators to the lower part . Set up SL 1 ATR lower . As long as the price action goes higher we move the SL higher . As a rule of thumb , we set up the SL 1 ATR lower than the Swing Low . How we understand when to exit on swing strategy ? The easiest way is to follow 50 EMA . As long as you enter to 50 EMA , you will exit crossing downward 50 EMA . OR the other way is when the swing Low is coming lower than the previous swing Low .

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Look on the below photo , we follow Swing Strategy with 50 EMA .

On the below photo we follow Swing Strategy as long as HL are higher . For the time being we get LL from the previous swing Low , we EXIT .

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QUESTIONS 1) What is swing strategy ? A. Scalping ( swing low sing high at a time ). B. To follow 20 ema C. All the above . 2) What is the best option to follow swing strategy not from the beginning? A. After pullback with the first green candle stick . B. Follow 50 EMA C. All the above 3) How we understand how to exit on swing strategy ? A. When the swing low is coming lower than the previous Low . B. When the price cross 50 EMA downward . C. All the above 4) What time frame we use on swing strategy ? A. 1-5 Minutes for many entries B. 15-30 minutes for less entries C. All the above 231

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5) How we set up the SL on swing strategy ? A. 1 ATR down from the price we bought B. 1 ATR down from the swing low . C. All the above . 6) When can we use swing strategy ? A. For day Trade B. For any long Investment . C. All the above 7) What is the optimum entry for swing strategy ? A. To buy from support B. To follow 50 ema . C. All the above . 8) On swing strategy can we follow 20 ema ? A. No B. Yes C. Sometimes

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9) Can we follow 10 EMA for our entry on swing strategy . A. B. C. 10) A. B. C.

NO Yes Sometimes . Do we need to confirm our entry ? Yes No Sometimes

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ANSWERS 1. A 2. C 3. C 4. C 5. C 6. C 7. C 8. A 9. A 10. A

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13. TRADING TIPS STRATEGY

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Now I will give you some tips ,that no ones advised you . 1) How can we understand the trending move and price action is higher or lower ? If the Trending move is getting bigger and bigger , means that there is high trend . If we monitor the trend to be lower , means there is tendency to lower the trend and probably the price to drop . You’ll notice the body and range of the candles are larger— and it trades in the direction of the trend. Here’s an example:

2) How we understand the trend with the retracement move ? If the retracement move is the “weaker” leg of the trend. You’ll notice that both the body and the range of candles are smaller —and it trades against the direction of the trend.

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So , keep in mind – If the Trending move is bigger than the Retracement – means the price and the trend will be higher . Now If the Retracement move is bigger than the Trending move means the Trend is weaker and price is getting lower . Look this example , the Retracement move is bigger than the Trending move .

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3) How can we understand better the pattern of the price action . Remember ,as a rule of thumb – all the stocks have similar pattern . First we expect high volatility ( uptrend ) :

Then we expect Low volatility , see the below example :

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Then expecting High volatility ( downtrend ).

And again low volatility , once the price is lower .

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4) How can we follow the break out ? Let 20 MA to be your guide . And sell when the price cross 20 MA downward .

5) Once you follow the uptrend or swing strategy you don’t buy to overstreched area .

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6) Do not remove or do not forget the stop loss .Think that your stop loss will save a lot of things . If we consider that the entry is wrong and you risk on this trade 1000$ - If the stop loss is minus 2% , you will just lose 20$ . But If the stock is high volatile and in the end of the day you realize you lost 50% - means that you you have lost 500$ .

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QUESTIONS 1) What means If the Trending move is bigger than the retracement move ? A. Trend continues higher B. Price is getting higher C. All the above 2) What means If the Retracement move is bigger than the Trending move ? A. Trend is weaker B. Price start to drop C. All the above 3) After high uptrend and high volatility , what can we expect ? A. Low volatility B. High volatility C. Nothing just the same 4) After Low volatility above Resistance what can we expect ? A. High volatility ( downtrend ) B. High volatility ( uptrend ) C. Low volatility 242

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5) After high volatility downtrend , what can we expect ? A. Low volatility ( possible below support) B. High volatility ( Uptrend ) C. High Volatility ( downtrend ) 6) What is the best way to follow , break out ? A. Let 20 EMA to be your guide B. Follow 50 EMA C. Follow 200 EMA 7) Where will you exit following the break out ? A. Sell crossing 20 EMA DOWNWARD B. Sell crossing 50 EMA DOWNWARD C. Sell crossing 200 EMA DOWNWARD . 8) Can we buy in overstreched area ? A. No B. Yes C. Sometimes

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9) Once we are in Overstreched area , where we buy ? A. After the pullback ‘ B. Close to 50 EMA C. All the above . 10) Do you need all the time to set up , stop loss ? A. Yes B. No C. Sometimes

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ANSWERS 1. C 2. C 3. A 4. A 5. A 6. A 7. A 8. A 9. C 10. A

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14. TRADING EXAMPLES

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1) On the below example , we follow MACD strategy . One of the common errors is when you follow this strategy in any trend . That’s why we specify to follow MACD method only when the price is above 200 ema . The benefit is that we avoid too many false entries , following this strategy above 200 ema .

2) On QQE mod and FLI with Hull Suite , remember do not entry to the red zone. We consider we are in red zone when we have one of the following . Price is below Hull suite , QQE not blue and FLI is red .

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3) On the following example do not make any entry on Overstreched area . Follow the signals buy and sell with confirmation .

4) Try to follow all the time the proper entries and exit points on the below strategy after confirmation . You will be all the time profitable

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5) Please be careful also in the below strategy we buy in the proper points . Avoid to open position once the price is below A-V2 .

6) Once you follow the strategy 50 & 100 EMA . Avoid to buy in Overstreched area .

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QUESTIONS 1) Can we buy on MACD crossover points Strategy when the red signal is moving downward ? A. No B. Yes C. Sometimes 2) On strategy F.Q.H , can we buy once the price is below hull suite ? A. No B. Yes C. Sometimes 3) On strategy F.Q.H , can we sell once the price cross downward the hull suite ? A. Yes, we optimize our profit B. No C. Sometimes 4) On strategy F.Q.H , If the FLI & QQE are red – what does it mean ? A. Non profitable area B. Profitable area C. Sell position 250

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5) On A-v2 strategy , can we buy once the price is below A-V2 Trend ? A) No B) Yes C) Sometimes 6) Following 20 & 50 EMA , can you buy in overstreched area ? A. No B. Yes C. Sometimes 7) When we buy on 20 & 50 ema. A. When 20 emacrossing upward 50 ema ? B. RSI . OVERSOLD C. All the above 8) When we don’t buy , having 2 moving averarhges ? A. When the smallest moving average crossing upward B. Once we are in overstreched area C. After RSI CONFIRMATION .

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9) BE aware about the entries ? A) TIME FRAME 5 MINUTES , B) TIME FRAME 14 MINUTES C) TIME FRAME 5 10) What is the most famous timeframe for all day trade accounts -1 minutes - 5 minutes -15 minutes .

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ANSWERS 1. A 2. A 3. A 4. A 5. A 6. A 7. A 8. B 9. A 10. A

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15. CONCLUSION

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Thank you very much to read my book . If there is anything to confuse you or to make you difficult to interpret it from the book – Please feel free to contact me . Now you arrived in the end of this e book . I give you my word that you have too many tools now to trade and to be a professional trader like me . On my first steps of my trading career , I started with this knowledge and strategies . With this book , I am a successful & profitable trader and honestly I don’t see any reason , why you can not be like me . My famous strategies at the beginning were the following , cause were very easy for me to think the entries & exit points of every trade : a) 20 & 50 EMA b) QQE MOD , FLI WITH HULL SUITE c)

SUPER TREND WITH 50 EMA .

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ACKNOWLEDGMENTS

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My website is Daytradetraining.com . I am the inventor on this book . Thanks to everyone to support my idea . Finally thanks to my wife , edited and reviewed many of the finer details of this book.

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