TABLE OF CONTENT

INTRODUCTION .................................................. ......................................... 2

ADVANCED TRADERS IN THE FOREX MARKET .......................... ......................... 4
TREND CONTINUATION TRADING .................................... ............................... 6
TREND REVERSAL TRADING ........................................ ................................... 9
USE OF MULTIPLE TIME FRAME ANALYSIS ........................... ........................... 13
RETRACED PRICE ENTRY .......................................... .................................... 16
MAXIMIZING YOUR PROFIT POTENTIAL............................... ........................... 19
HIGH LEVERAGE TRADING ACCOUNT ................................. ............................ 21
CONCLUSION .................................................... ......................................... 23
CHEAT SHEET ................................................... .......................................... 24

1
 Chapter 1

INTRODUCTION

Forex market is the world largest financial market where more than $4.5 trillion
is traded in every single day. With the advancement of modern technology, the
active participants of this industry are also increasing at an exponential rate.
You can trade this market with a very small amount of money and still can make
a decent income in every single month by using the high leverage trading
account offered by the reputed broker. If you can truly master the art of forex
trading then there is no need to work hard all day long since few high‐quality
trades is enough to secure your profit potential.

Mastering the art of trading is not all easy since you will have to deal with lots
of parameters. During your early stage of your trading career, it’s very normal
that you will lose money. In fact, a very high percentage of traders blow their
trading account within the first six months. But this book is for the intermediate
or advanced trader. We are assuming that you have decent knowledge and
experience in this industry. You need to give enough time and love this
profession if you truly want to overcome the initial obstacles. Psychology plays
a great role in the success of your trading career. You need to have complete
control over your emotion and greed or else you will not be able to lead your
life based on forex trading profession.

Those who are reading this book must have decent knowledge about the
dynamics of this forex market. In fact, the title of this article also suggests that
this book is going to deal with some advanced stuff which will help you to
complete your forex trading lesson. There are many advanced traders making a
decent income at the end of every single month. But still, they are struggling
hard to support their family and full their basic needs. So what possibly went
wrong with them? The answer is simple. It’s time for them to move to the next
step to become a professional trader. You need to learn how to maximize your
profit potential under different market conditions by minimizin g your risk
exposure.

This book is going to enlighten you with the diversified knowledge of this forex
market to maximize your profit potential. You might think you are making
enough money but do you drive a supercar? If the answer is NO then how can
you be a professional trader? Trading is such a profession that potentially can
easily secure your financial freedom. You might be making a decent profit but is
this really enough to support your family? This book is going to polish your
trading knowledge and increase your potential to to become a s uccessful
trader. Each and every single chapter of this book will give you a different
insight of this market which will act as a key ingredient to become a very
successful trader of forex.

3
 Chapter 2

ADVANCED TRADERS IN THE FOREX

MARKET

Before you read the rest of this book it is very important that you know about
the advanced trader. There are lots of things in this book which will require
prerequisite knowledge of this industry. However, if you are completely new to
this market don’t stop reading this book. Reading books is one of the easiest
ways to gain knowledge. It’s true that some of the stuff might not be clear to
new traders but as you gain experience in this market, everything will start
making sense.

Advance traders are those individuals who are able to make a decent profit at
end of the year. But this doesn’t mean that they will always have winning
months during their live trading career. You need to understand the fact that
trading is all about probability. The advance traders always do the simple math
to increase their profit factors. They are well aware of the essential features of
their trading platform. For instance, if you look at the novice traders then you
will see that most of them don’t know how to use the pending features of their
trading platform. They simply wa it all day long to get their desired price level in
their favorite currency pair. But if you know about the advance pending
features then you can easily set your pending orders with a predefined stop loss
to save a huge amount of time.

Knowledge is the key to success in forex trading. If you want to consider

yourself as an advance trader then it’s highly imperative that you develop a
strong foundation in this market. You need to learn about the normal trend
trading system based on key support and resistance level. If you don’t develop
the basic trading skills then mastering all the advanced stuff of this market will
be really difficult for you. This market is only for the experienced professional.
If you think that you will make a huge amount of money simply by trading the
live instrument then you need to develop a robust trading system. Your trading
should be capable of making a profit in different market conditions.

Risk management is very crucial in forex trading. The key difference between
the novice and professional traders lies within their risk management factors.
All the professional traders always think about the associated risk in trading, on
the contrary, the novice traders are more concern about their profit factor. This
book will help you to save your investment even during the extreme level of
market volatility. If you learn about the advanced art of money management
than by using the compound profit factor you can turn your smal l trading
account into a big one. Trading is nothing but an art. You need to understand
the nature of this market very precisely. You need to learn how to assess your
trading performance so that you can improve your weakness and focus on your
strength.

5
 Chapter 3

TREND CONTINUATION TRADING

There is a well‐known proverb in the forex market that the trend is your friend.
Since you are an advanced trader we assume that you always trade in favor of
the market trend. But do you really think that trading along with trend is an
easy task? In reality riding the long‐term existing trend is one of the hardest
things in the forex market. You can never make any real progress unless you
know the key parameter to ride an existing trend. It’s true that if you use the
trend line support and resistance level then within a short period of time you
can find an easy way to ride the trend but is it really enough to ensure your
higher profit factor? The simple answer is NO. The experienced professional
always use other trading tools and price action signal to execute high‐quality
trades.

What is price action trading?

Price action trading is often considered to be a most vital element to
understand the nature of the price movement. In the eyes of trained
professional, the different formations of the Japanese candlestick are the
easiest way to find high‐quality trades in for the market trend. When you use
price action signal it is generally termed as a price action trading system.

How the advance traders execute trade at the trend line support and
resistance level
The advance traders always draw the trend line a different way. Instead of using
three connecting points they simply use two connecting points to find a valid
trend line. When the market hits potential trend line support or resistance level
at the third point the trades are executed with price action signal.
Let’s see a clear example of advanced trend line trading

Figure: Trading the trend continuation using the third point of the trend line

In the above figure, you can clearly see that a bullish price action confirmation
signal has been formed right at the trend line support level. But if you closely
notice the picture then you will see that we are placing our trades at the 3rd
point. Majority of the intermedi ate trend trades will wait for the 4th point to
execute their order. But when you placing your trade on the 4th point will
significantly reduce your profit factor. Since this system is a little bit aggressive
so make sure that you use the price action confirmation signal to place your
trade. And always trade the higher timeframe trend line to avoid false spikes of
this market.

Use of chart pattern

Chart pattern trading is very crucial for trend trading. Majority of the novice
traders thinks that the chart pattern is used to trade the market reversal. But
after reading this book you will be able to trade major breakout in favor of the
market trend. Instead of using too many chart patterns we will only use one
simple chart patterns to place our trade. Let’s learn about the most popular
rectangle continuation chart pattern.

7
Reactance chart pattern is very popular among the position trader. After an
extended move in favor the market trend the price of the major assets often
forms a consolidated pattern. Let’s see how an example how we should actually
use the rectangle chart pattern to trade in favor of the market trend.

In the above figure we the two red lines represent the rectangle support and

Figure: Trading the along with the bearish trend with the rectangle chart
pattern

resistance level. Once the pair broke the critical support level of the market the
professional traders waited patiently for a minor bullish retracement. You can
clearly see that the price has formed a nice bearish pin bar right at the minor
resistance zone and this is a clear sign of to execute the short orders.

Setting up the stop loss and take profit level

Setting up the stop loss is relatively easy in rectangle chart pattern trading. In
case of a bearish trend, we will set our stop loss just above the major resistance
level. The potential take profit level should be equal to the h eight of the
rectangle pattern. But we will not close the trade rather we will book 50% of
our profit and use the trailing stop loss features to maximize our profit
potential.

8
 Chapter 4

TREND REVERSAL TRADING

Reversal trading can be extremely tricky for the novice traders. Sometimes the
advanced traders also make things complicated by trying to trade the major
reversals in the market. Nothing is absolute in the forex market and the long‐
term existing trend often gets changed. Majority of the intermediate traders
lose a huge amount of money when the existing trend changes since they don’t
even know how to assess the fundamental factors. Without learning about the
fundamental analysis it will be nearly impossible for you to understand how the
market trend is getting changed. High impact news release life the U.S interest
rate decision can have a significant impact on the major pair movements. But
this book will help you to identify the trend reversal based on your technical
knowledge.

There are some certain things that you should look in your trading chart before
you can say that the existing trend might get changed. These are:

 Broken trend line in the daily chart or higher time frame

 Broken key swing highs or lows of the market
 100 and 200 days SMA crossover
 Broken trend line

The best way to identify a trend reversal is by using the trend line. If the price
of the certain assent breaks the trend line support or resistance level then this
is a clear sign of trend change. But when you draw the trend line make sure that
you are using the daily or higher time frame to avoid false trading signals.
Let’s see how the professional traders trades when the trend line is broken
In the above figure you, the bullish trend line support level has been breached

Figure: Price breaking though the trend line support zone

with a strong bearish candle. The professional traders don’t trade the breakout
aggressively rather they wait for minor bearish bullish retracement towards the
broken trend line to execute their short orders. In general, the expert traders
set their pending short orders at the blue dotted line.

Broken key swing highs or lows of the market

Swing high and swing low are very important element for the trend traders. In
an uptrend the market will always make a series of higher highs associated with
lower highs. If you spot any change in these characteristics then it means some
new lower highs are lows then yo u should consider this as a sign of trend
change. Let’s see the graphical representation to get a clear overview of this
principle.

10
 Figure: Change in uptrend as it breaks below the previous low of the
market

The above figure illustrates the classic formation of the uptrend. If there is a
sudden change in formation of higher highs and lower highs then we call it as a
bearish trend reversal. Similarly, in the case of bullish trend reversal we will
have new higher highs associated with higher lows.

100 and 200 day SMA cross over

Indicators are often ignored by the advanced traders. But do you know that
almost all the professional traders use the 100 and 200 day SMA to trade this
market. You can easily find the possible reversal in the prevailing trend by using
these two indicators. For instance, if the 100 day SMA crosses above the 200
day SMA then it is termed as bullish trend reversal. Similarly, when it crosses
below the 200 day SMA it is referred as bearish trend reversal.

11
 Figure: Bearish and bullish cross over in the USDCHF pair

Once the bullish or bearish crosso ver has taken place in the daily time frame
you should trade along with newly formed trend. But make sure that you use
the price action confirmation signal to limit your risk exposure in trading.

12
 Chapter 5

USE OF MULTIPLE TIME FRAME

ANALYSIS

Multiple time frame analysis is one of the best ways to find the high‐quality
trading signals in this market. Every trader in the forex market uses a definite
time frame to discover their potential entry point. But do you think that the
professional traders apply the same principle to trade this market? The simple
answer is NO. They do their technical analysis in different time frames and
emphasize the higher time frame data. When you study different time frame to
find high‐quality trading signals it is known as multiple time frame analysis. But
before we place our trade using the multiple time frame analysis techniques we
need to consider three very crucial things.

1. Find the support and resistance level in the higher time frame
2. Always trade with the market trend
3. Always give emphasize to the higher time frame data

By reading the above three points, you must have clear idea how the multiple
time frame analysis perfectly doesn't by the professional trader. First of all, you
need to draw all the critical support and resistance level on the higher time
frame. Use the critical swing highs and lows of the financial instrument to plot
your support and resistance lev el. Once you have spotted all the possible
trading levels, it’s time to identify the prevailing trend of the market.

The existing trend of the market can be identified in many diff erent ways. You
can use the trend line system or just use the 100 days SMA on your trading
chart. If the price trades above the 100 days SMA for five consecutive days then
consider it as an uptrend. On the contrary, five consecutive candles below the
100 days SMA confirms the establishment of a bearish trend. Bas ed on the
market trend you need to decide whether you go for short or long orders.
 Figure: Identifying the trend using the 100 day SMA

Now comes the most complicated section. When you do your technical analysis
in the different time frame, you will often get confused by seeing different
trading signals in different time frame. But there is nothing to get confused as
all the successful traders always give emphasize to the higher time frame data.
Let’s see an example of multiple time frame analysis to get a clear idea on this
subject.

Figure: Study of four different time frames

In the above chart, you can see that we have four different time frames is
represented in the the past price movement of the SET index. We have strong
bearish action on the weekly, daily and 4‐hour time frame. But when it comes to
14
1‐hour time frame we can see that the price is moving upward which is a strong
bullish signal. So if you only trade the 1‐hour time frame, then you would have
been looking for buying signals only. But those who know about the multiple
time frame analysis will look for sell signals. In three higher time frame, the
bears are strongly driving the price down in the global market. The one‐hour
bullish movement is nothing but the minor correction of the price.

So, after studying these four different time frame charts, you need to wait
patiently for bearish price action signal near the key resistance level of this
pair. Let’s get dig into more details how the professional traders would have a
trade by using the above four charts. The idea behind multiple time frame
analysis is very simple. The first thing will always come first. They will draw the
critical support and resistance level on the higher time frame to find the
probable entry points. Secondly, they would find the prevailing trend of this
asset. For the above example it’s very obvious that bears are dominating the
market. Once you have taken care the first two factors of multiple time frame
analysis, just give emphasize to the higher time frame data to place short orders
for the above example.

15
 Chapter 6

RETRACED PRICE ENTRY

Executing plays a significant role in the success of your trading career. There
are many traders who have all the knowledge about this financial industry, but
they hardly know how to ride into good trades. You might have all the
experience about the Japanese candlestick pattern and robust trading system,
but without having the right skill to ride the long‐term trend, you will only be
losing money. Those who try to trade the strength of the market trend are the
ultimate risk takers of this industry. You need to understand that a trending
market will always retrace back, to provide a unique trading opportunity to the
traders. Let’s learn about market retracement.

From the above picture, you can see that the price is ascending upward making
a series of higher high associated with a higher low. This phenomenon is a

Figure: Bearish retracement in the significant uptrend

classic example of the bullish trend. But still, the price of the assets dives down
from point 2 and 4. These minor downward movements of in an upt rend are
known as a market retracement. To be precise, the downward movement in an
uptrend is known as a bearish retracement, and the upward movement in a
downtrend is termed as a bullish retracement.

So when does the retracement come to an end?

This is a very crucial question for all the trend traders. You need to understand
when the market retracement will come to an end or the price is going to
participate in major trend reversal phenomena. To find the exact point of the
reversal you need to have good knowledge about the market support and
resistance level. For instance, in the above example the point 3 and 5 are the
 Figure: Executing long orders by using the bearish retracement of price

critical support level, and for this very reason the buyers took the price up from
that level.

As a currency trader, you can follow some different ways to find the major
market retracement. Some traders use the multiple time frame analysis skills to
find the possible entry point in the trend market, and some often use the
Fibonacci retracement tools. Though both of them are a very profitable system
to trade them market retracement yet, we will use the Fibonacci retracement
trading system.

What is Fibonacci retracement tools?

Fibonacci retracement tools are nothing but one of the most sophisticated
trading tools that developers have ever developed. It’s based on the simple
Fibonacci series, and it works so well in the forex market that many traders
often consider it as their prime asset to execute high‐quality trades.

There are many retracement levels in the Fibonacci trading tools. But the
experienced professional in the forex market only uses the 32.8%, 50% and
61.8% Fibonacci retracement tools to execute their trade. Some of you might
get little confused with these terms, but after seeing a practical example,
everything will be crystal clear to you.

From the above figure, it’s evident that the price has sharply rejected the 61.8%
Fibonacci retracement level and started its bullish movement in favor of the
long‐term trend. In the first two retracement level, we didn’t have any
significantly bullish price actio n confirmation signal to place our long trade. But
when the price hit the 61.8% Fibonacci retracement level we have a bullish pin
both in the daily and 4‐hour time frame. The expert price action traders
immediately went long on the financial asset by setting a tight stop loss just
below the low of the bullish pin bar formed on the daily and 4‐hour time frame.

17
Trading with the Fibonacci retracement level is extremely profitable especially
if use the multiple time frame analysis. When you draw the Fibonacci
retracement level, you need to draw it from the most recent swing low the high
to get the bullish retracement level. Similarly, in case of down trade, you need
to use the most recent swing high and low to find the bearish retracement level.
Although this system can maximiz e your potential profit, you should never risk
more than 3% of your account capital on any single trade.

18
 Chapter 7

MAXIMIZING YOUR PROFIT

POTENTIAL

Trading not all easy for the novice trader. In fact, they make things overly
complicated and loses money consistently. On the contrary in the eyes of the
trained professional, forex trading is one of the easiest ways to make a huge
amount of money. But you need to know some tricks and tips of this market so
that you can quickly overcome all the obstacles to make your life better. We will
give you five amazing advice which will change your trading career. In fact,
many advanced traders rarely follow this technique to maximize their profit
potential.

Develop a strong knowledge

This is the most crucial part in forex trading. If you are looking to build your
career in the forex trading industry, then you need to have proper knowledge
about the support and resistance level. Learn about the technical analysis
section since it will help you to find high‐quality trading sig nals to trade this
market with the extreme level of precision. The second thing that you need to
learn is the art of fundamental analysis. This section is very crucial as it will
help to find the strength of the market trend with an extreme level of precision.
You can quickly maximize your profit potential by riding the long‐term
prevailing trend of the market.

Trade the higher time frame

Maximizing your profit factors has a solid link to higher time frame trading.
Those who are trading the lower time frame are more prone to make a mistake
and thus lose money. In lower time frame trading you have to deal with lots of
false trading signals which is n early impossible to filter. Moreover, the lower
time frame traders follow little bit aggressive trading system which might cause
an excessive loss in a single trading day. On the contrary, if you trade the higher
time frame then you will be able to minimize your risk exposure and aim for
high risk‐reward trades. Your system might have 50% winning rate but if you
trade with 1:3+ risk‐reward ratio then even after losing 50% of the time you will
stand in the line of the profitable trader.

Don’t trade more than one currency pair at a time

Having one single trade is very crucial in forex trading. Many advanced traders
are losing money because they are simply trading too many financial
instruments. But if you look at the professional traders with years of trading
experience then you will be surprised to see that most of them have only one
single open position at a time. When you trade more than one currency pair,
you are increasing your risk exposure. For instance, if you go long on EURUSD
and GBPUSD pair at the same time then strong data release for the U.S economy
will result in a catastrophic loss to your long trades. Both of the trade will hit
your potential stop‐loss price. On the contrary, if you have synthesized more
fundamental news while trading the multiple currency pairs. And when it comes
to diversified fundamental analysis, more than one currency pair trading creates
an extreme level of confusion into the trader's mind.

Learn to embrace the losing trades

Learning the art of losing is the very first step to save your investment. Many
advanced traders are still losing money since they don't dare to embrace their
losing trades. Losing is just a part of the trader’s life, and there is nothing you
can do about it. You need to develop a robust trading system to find the perfect
balance between your losing trades and the winners. Once you make profit
consistently for one year, everything will be crystal clear to you. If you stay
disciplined, then it’s just a matter of time to maximize your profit potential
through high‐quality trade execution.

Use the trailing stop loss features

The use of trailing stops is one of the easiest ways to ride the long‐term trend.
Many advanced traders move their stop loss to the breakeven point once the
market moves in their favor. But if you use any fixed number and automate your
trailing stops then things are not going to work in the forex industry. You need
to learn about minor support and resistance level trading. Based on that you
need to place your stops manually to ride the long‐term market trend.

20
 Chapter 8

HIGH LEVERAGE TRADING ACCOUNT

The advancement of recent technology has blessed the retail traders with the
high leverage trading account. In the past, only the large banks and institutions
were able to make a decent amount of money by trading the live asset. A
significant amount of deposit was required as there were no leverage trading
options for the retail traders.

What is leverage?
Leverage is nothing but the power of buying money which you don’t have. It’s
just like magnifying tools which will allow you to trade with a big lot even with
a small trading account. The offered leverage greatly varies from brokers to
brokers. However, the high‐class broker tends to give less leverage to their
clients so that their funds are not exposed to aggressive trading strategy.

Various types of leverage

1:1
1:5
1:10
1:20
1:25
1:50
1:100
1:200
1:500
1:1000

In general, leverage is offered in the format as mentioned above. But as we said

earlier different brokers would have a different leverage trading account. It’s
not like that everyone is going to offer you 1:500 or 1:1000 leverage to trade
this market.

Let’s say that you are trading with 1:100 leverage. So if you have $1000 in your
trading account then with 1:100 leverage, you will have $1000x100= $100000
buying power. So basically you ca n trade with big lot size even though you don’t
have enough money. To be precise, you can buy $100000 worth of equivalent
currency of a specific country even though you have just $1000 in your trading
account. This is the real beauty of high leverage trading account.

Leverage can act as a double edge sword. So if you don’t have the proper
knowledge of high leverage trading account, then chances are very high that
you might even blow your entire trading account. You need to scale your lot and
potential stop loss level for us ing the high leverage. For instance, if you find a
tight stop loss trade setup then you can easily double your lot size to maximize
your profit potential. But in th is case, you need to be extremely careful about
the risk management factors. Under no circumstances, you should take more
than 3% risk of your account capital. Only trade with a big lot if you have trade
setup with a tight stop loss.

22
 Chapter 9

CONCLUSION

After reading this book, you might get confused or forget some specific chapter,
but this is normal. Feel free to go through the books again and again. If you can
read this book by heart and follow all the details, then we can guarantee you
that within a short period you will become a successful trader. Success is
something which never comes without hard work. As a new trader, it’s very
reasonable that you will make mistakes again and again. But mistakes are
always appreciated as long as you learn from it. In fact, the professional traders
are making tons of money even though they used to lose a lot at the beginning.
Never expect to maximize your potential profit from the starting of your trading
career rather concentrate hard to save your investment.

As you all know this book is for the advanced traders, we have some big surprise
for you. Being a price action trader, it’s tough to memorize all the reliable
candlestick pattern. But there is no reason to worry. At the end of this book,
you can find a cheat sheet which contains all the details about the price action
trading signal. If you ever feel confused then feel free to go through Japanese
candlestick cheat sheet available in the last part of this book.
 CHEAT SHEET

Bullish Candlestick Patterns

Abandoned Concealing
Baby Belt Hold Breakaway Baby Swallow Doji Star

Dragonfly Gravestone
Doji Engulfing Doji Hammer Harami

Homing Inverted Ladder

Harami Cross Pigeon Hammer Kicking Bottom

Morning Doji
Mat Hold Matching Low Meeting Lines Star Morning Star
 Rising Three Separating Side By Side Stick
Piercing Line Methods Lines White Lines Sandwich

Three Inside Three Line Three Outside Three Stars In Three White
Up Strike Up The South Soldiers

Upside Gap
Unique Three Three Upside Tasuki
Tri Star River Bottom Methods Gap

25
 Bearish Candlestick Patterns

Abandoned Advance Dark Cloud

Baby Block Belt Hold Breakaway Cover

Downside
Gap Three Downside Dragonfly
Deliberation Doji Star Methods Tasuki Gap Doji

Evening Doji Falling Three Gravestone

Engulfing Star Evening Star Methods Doji

Identical
Hanging Man Harami Harami Cross Three Crows In Neck

26
 Separating
Kicking Meeting Lines On Neck Lines Shooting Star

Three
Side by Side Three Black Three Inside Three Line Outside
White Lines Crows Down Strike Down

Upside Gap
Thrusting Tri Star Two Crows Two Crows

27