Trades about to happen pdf free download

All of the brokers listed towards the end of this forex trading PDF are regulated by at least one reputable licensing body. In terms of getting set up as an online forex trader, the steps remain constant regardless of which broker you decide to join.

Below we list some of the steps that you will need to take. In order to open an account, you will need to enter some personal information. Standard details requested by the broker will be things like your name, residential address, and contact details. Some brokers will also require your tax status and will ask you to provide more financial details such as employment status, net worth and any regular income.

In this instance, you will usually need to answer some multiple-choice questions based on your experience. This is usually a fairly simple process. Known as KYC in the industry Know Your Customer , this simply means that the forex broker is going to need you to prove who you are. Some brokers will verify this using scanned copies of documentation. Now you need to select your payment method of choice usually from a drop-down list.

Bear in mind that how long this takes to go into your trading account will largely depend on the payment method — so always check this before parting with your cash. Some brokers even support e-wallets like Paypal and Skrill. After reading our forex trading PDF you should now be feeling confident enough to begin trading. However, we do recommend that you always try out a free forex trading demo first. This will allow you to test out your newly formed trading strategies before risking your own capital.

In the next section of our forex trading PDF, we explore some of the more important technical indicators and market insights used by seasoned traders. First invented by Richard Donchian, the donchian channels can be adapted as you like, in terms of parameters.

Should you choose to view a day breakdown, for example, the indicator will be created by taking the lowest low, and the highest high of that period so in this example 30 periods. When observing the moving average on a donchian channel you can look at averages stretching from 25 days to the last days. The direction which is permitted is determined by the direction of the short-term moving average.

With this in mind, you should think about opening one of the following two positions:. You will need to sell your pair in order to exit your trade if you open a long position and visa-versa. This is another commonly used forex indicator. The simple moving average aka SMA operates at a slower rate than the present market price known as a lagging indicator. Furthermore, it uses a lot of historical price data. In fact, more so than most other strategies. A good indication that the latest price is higher than the older price is when the long-term moving average is below the short-term moving average.

This could be considered a buy signal due to an upward trend in the market. In the opposite scenario when the long-term moving average is higher than the short-term moving average, this of course points towards a sell signal due to a downward trend.

Moving averages are usually used as evidence of an overall trend, rather than purely forex trading signals. Of course, this is a great way to make your breakout signals much more productive. If you are alerted to a sell signal, this indicates that the short-term moving average is below that of the long-term moving average, so you might want to place a sell order. However, if you are given a signal to buy, this usually means that the short-term moving average is higher than that of the long-term moving average.

Using breaks as trading signals, the breakout is considered a long-term strategy. The breakout itself occurs when the market goes further than these consolidation limits — whether that be lower or higher. As such, a breakout must take place whenever a new trend occurs.

By looking at breaks, you will have a good indication of whether or not a new trend has begun. In this case, you might want to use a stop-loss order to give you a better chance of avoiding a substantial loss. Underbilling occurs when a contractor does not bill for all the labor and materials delivered in a billing cycle.

In the construction business, everything comes down to the contract. And that's unfortunate because most of the people who make Back to blog. Tom Scalisi articles. Reading time: 3 minutes.

Categories Construction Contract Punch List. Table of Contents. At its simplest, the moving average shows you the overall price for a certain period of time. For example, if using period moving averages, then you will see the average price for the last 14 periods plotted as a line on your chart. This can show you the overall direction price has been moving in on that time frame. The MACD is another hugely popular indicator used in many different markets by technical analysis traders.

The Fibonacci tool is an indicator you can use to both make and manage your trades. Fibonacci is formed with a set of key ratio numbers that includ e These key levels will often work as important support or resistance levels as they are heavily watched and trades by many participants in the market. In the example below price is in a trend lower. After making a retracement back higher, we can see the price move into the Some of the most advanced technical analysis strategies involve combining different methods and strategies.

Trading Cryptocurrencies With the emergence of the cryptocurrency market, Forex traders have one more asset class to expand their trading profile. There are also a lot more assets, with over 7, and growing. Regrettably, frauds and scams are present. Trading cryptocurrencies can unlock a sustainable income stream, but you must follow trading strategies and not the social media crowd.

The basics of trading cryptocurrencies, Forex, and any other asset class are similar, so you must understand the differences to make the appropriate adjustments. Day Trading Forex Day trading Forex generally means that you will open and close your trades during the day, never keeping overnight positions.

It is a popular trading strategy, and you will avoid swap rates on overnight positions together with unexpected events that can results in losses while you sleep. There are specific strategies designed for day trading Forex since you will focus on shorter time frames, fewer pips per trade, and higher trading volumes. ECN accounts with raw spreads and competitive commissions cater to day trading in Forex.

Before you can focus your attention on all the exciting aspects the Forex market has to offer, you must master the basics.

Take your time with education, as it will form the foundation of your Forex trading path. Understand the psychology of trading before you proceed with opening a live trading account, make a small deposit you can afford to lose, and continue with education until you manage consistent profitability. After that, you can graduate to a more significant deposit and slowly expand.

FAQ Is trading Forex worth it? While extremely challenging, demanding, and time-consuming until you learn how to trade successfully, every trader who mastered the process will agree that the long-term benefits are worth it. Is Forex a pyramid scheme? No, it is far from it.

Some scammers prey on new traders with false promises and investment schemes using a pyramid, but it does not reflect the nature of the Forex market. Is Forex trading easier than stocks? The capital requirements to trade Forex are significantly less than stocks, and the leverage is higher, but the ease or difficulty of trade remains similar and dependent on the trader.

Free Forex Ebooks. It occurs when a small bearish line is engulfed by a large bullish line. This is a bullish pattern signifying a potential bottom. The star, at the bottom between the two lines, indicates a possible reversal; the bullish line confirms this. The star can be empty or filled in.

Thus, this pattern usually indicates a reversal after an indecisive period. You should wait for a confirmation, as in the morning star in the previous pattern, before trading a Doji star. The first line can be empty or filled in. They are identified by small real bodies a small range between open and closing prices and a long lower shadow, that is, the low was significantly lower than the open, high, and close. The bodies can be empty or filled in. This is a bearish pattern that is more significant if the second line's body is below the center of the previous line's body as illustrated.

This line is strong and bearish if it occurs after a significant uptrend—it acts as a reversal pattern. It occurs when a small bullish line is engulfed by a large bearish line. This is a bearish pattern signifying a potential top. The star indicates a possible reversal, and the bearish line confirms it.

The star can be empty or filled in or it can be a Doji star. A star indicates a reversal and a Doji indicates indecision. You should wait for a confirmation, such as an evening star illustration, before trading a Doji star. This pattern suggests a minor reversal when it appears after a rally. The star's body must appear near the low price, and the line should have a long upper shadow. This line often signifies a turning point. It occurs when the open and close are the same, and the range between the high and the low is relatively large.

This line also signifies a turning point. This pattern occurs when the open and the close are the same and the low is significantly lower than the open, high, and closing prices. This line signifies another turning point. It occurs when the open, close, and low are the same, and the high is significantly higher than the open, low, and closing prices.

Stars indicate reversals. A star is a line with a small real body that occurs after a line with a much larger real body, where the real bodies do not overlap, although the shadows may. These are neutral lines. They occur when the distance between the high and the low, and the distance between the open and the close, are relatively small.

This line implies indecision because the security opened and closed at the same price. These lines can appear in several different patterns. This implies a forceful move will follow a breakout from the current indecision. It occurs when a line with a small body falls within the area of a larger body. In this example, a bullish line with a long body is followed by a weak bearish line and implies a decrease in the bullish momentum.

When it moves, the candlesticks provide a visual sign that monitors the strength or weakness of the market in a certain direction. However, there are two basic types of candlesticks: 1. Decision candlesticks 2. Indecision candlesticks Decision candlesticks are full-bodied bullish or bearish candles with rela- tively small wicks on either side. They communicate to the trader that either the bulls or the bears are in control.

The indecision candlestick formation is exactly the opposite, with small bodies and, in some cases, no bodies at all—just a line where the open and the close were at the same price with large wicks on either side or on both sides see Figure As the market moves, it creates visual waves, and the candlesticks form different patterns. Movements are caused by investors entering and exiting the market.

When there are more buyers than sellers, the market begins to rally; when there are more sellers than buyers, the market begins to dip, or decline; and when there are equal numbers of buyers and sellers, the market goes sideways.

These patterns communicate the strength or weakness of the continued move. As the market moves, it waves, and the can- dlesticks form bullish and bearish reversal patterns. These patterns are the sign language of the market and the buy and sell signals for the traders.

The patterns communicate when it is time to get in and when it is time to get out. These patterns can become invaluable whenever they appear at the end of a downtrend in a smaller time frame, which many times is nothing more than the end of a retracement in a larger time frame.

It is imperative to note that as the market moves sideways in a to pip trading range, the market may form all kinds of bullish and bearish candle- stick patterns, which should be ignored. It is imperative not to trade these candlestick formations in small consolidated or sideways movement.

The charts being used in this book have black and white candles— the black candles are bearish and the white are bullish.

What is important to note is that in the formation of morning stars, they start out with a bearish decision candle, followed by one, two, three, or even four indecision candles before the decision bullish candle appears. In Figure B, a morning star appears at the bottom of the chart, signifying the end of the recent dip. A morning star forms when you have a large bear- ish decision candle followed by one or more indecision candles, which are followed by a bullish decision candle that closes beyond the 60 percent mark, or beyond the top half of the beginning bearish decision candle.

It indicates the market is U-turning. Investor Psychology Behind the Morning Star The bears are losing control and investors are no longer selling when you spot a morning star. More buyers have come into the market, which creates an equal number of buyers and sellers. In the end, more buyers step in and take control of the market. Bears are placed in hibernation, and bulls come out of their corrals in herds.

The final bullish candle of the formation sends ripples of greed throughout the trading community and a major rally takes place, especially when accompanied by significant trading volume. It can also be the turning point or the end of the retrace- ment in an uptrend see Figure A. An ideal bullish engulfing candle is formed when the candle opens lower than the close of the previous bearish decision candle, engulfing the previous two or three bearish candles.

This is a strong sign of a U-turn. The bulls are clearly taking control, as seen in Figure B. Traders with short positions make a quick dash to cover their exposure, and their rush to exit their positions adds power to the creation of the pattern. The volume on the uptake component shows that the majority of traders have changed camp from bearish to bullish within the duration of one period.

Buyers step in and create an environment of equal buyers and equal sellers, which forms two or more indecision candles. Figure A shows the formations. When the market has been falling and a clear decision has been made by the bulls to take over, tweezer bottoms are formed. The market contin- ues to move down, and bearish candles are formed. All of a sudden, an indecision candle appears, which means more bulls have started buying. We now have equal buyers and sellers. When bears attempt to take prices lower and bulls step in and buy more than bears, a long wick on the south side of a small-bodied candle forms.

A second attempt is made by the bears to take prices lower, with the same results, leaving another inde- cision candle with a long wick on the south side of the small body of the indecision candle, next to the last one. The lows of the two candles, as dis- played by the wicks, are usually at the same price or within a couple of pips difference, which now creates a new level of support. Anyone wanting to make a profit in this next rally needs to start buying right now!

Because higher prices are likely to follow the formation of tweezer bottoms, as you see in Figure B. Invester Psychology Behind the Tweezer Bottoms The bears have created lower prices, which have been tested, and new buy- ers have entered the market. As traders note more bullish participation, a rally is implied.

The bears were unable to acquire the interest of more sell- ers and were not strong enough to hold prices down. Several attempts for lower prices failed, as evidenced by the long wicks on the south side of the small-bodied candles. The tweezer bottoms are a sign of selling exhaustion. It is important to note that the tweezer bottoms do not need to be side- by-side; they can be several candles apart, as long as the lows of the wicks are close to each other, with only a difference of a few pips.

Such a forma- tion will create a level of support. These patterns can become invaluable whenever they appear at the end of an uptrend in a smaller time frame, which many times is nothing more than the end of a retracement in a larger time frame. It is imperative that you remember not to trade these candlesticks formations in small consolidated or sideways movement.

What is important to note is that it starts out with a bullish decision candle, followed by perhaps one, two, three, even four indecision candles before the decision bearish candle appears. In Figure B, an evening star appears at the top of the chart, signify- ing the end of the recent rally.

An evening star forms when you have a large bullish decision candle, followed by one or more indecision candles, which are followed by a bearish decision candle that closes beyond the 60 percent mark, or beyond the bottom half of the beginning bullish decision candle. It signifies the market is U-turning. If the last bearish candle closes above the halfway point of the first bullish candle of the formation, it is a sign of continued bullish sentiment.

Investor Psychology Behind the Evening Star In Figure B, the bulls start out rallying like a rocket going to the moon, driving prices higher. Initially, it seems nothing can stop them. These initial candles reinforce the bullish sentiment.

All of a sudden, a spinning top appears—a sign of indecision—in the form of a small indecision candle. It is quickly followed by a bearish decision candle and the session quickly U-turns. The bulls lose control and investors are no longer buying.

More sellers come into the market, which creates the dip in prices. Bulls run for cover and begin liquidating their bullish positions, which adds to the bearish momentum. In the end, more sellers step in and take control of the market.

Bulls are corralled and bears come out of hibernation. The final bearish candle of the formation sends ripples of fear throughout the trading community and a major sell-off takes place, especially when accompanied by significant trading volume. It can also be the turning point or end of the retracement in a downtrend, as seen in Figure B. The opening price of the bearish engulfing candle must be higher than the close of the previous bullish candle and the closing price of the bearish engulfing candle must be lower than the open of the previous bullish candle.

The prototypical bearish engulf- ing candle occurs when the open of the bearish engulfing candle opens higher than the close of the previous bullish decision candles and engulfs several previous bullish candles.

This is a strong sign of a U-turn when the bears are taking control. Investor Psychology Behind the Bearish Engulfing Pattern On an emotional level, a devastating blow has been swiftly delivered to the bulls when an engulfing bearish candle appears.

Those feeling optimistic and buoyant about the upward market direction have been proverbially kicked in the teeth. Traders with long positions make a quick dash to cover their exposure, and their rush to exit their positions adds power to the creation of the bearish engulfing pattern. Within the duration of one period, the majority of traders have changed camp from a bullish perspective to a bearish orientation. Sellers step in and balance out the numbers of buyers, which forms two or more indecision candles see Figure A.

In Figure B, the market has been rallying, but a clear decision has been made by the bears to take over, observed via the formation of tweezer tops. As the market was moving up, bullish candles were forming. Then all of a sudden, an indecision candle appears, which means more bears have stepped in selling.

There are now equal buyers and sellers. A tweezer top formation starts out with a bullish decision candle, followed by perhaps one, two, three, or even four indecision candles, as seen in Figure A. A tweezer top appears when the bulls attempt to take prices higher and bears step in and sell more than the bulls, creating a long wick on the north side of a small-bodied candle.

A second attempt is made by the bulls to take prices higher, with the same results, leaving another indecision candle with a long wick, on the north side of the small body of the indecision candle next to the last one. The highs of the two candles, as displayed by the wicks, are usually at the same price or within a couple of pips difference, which now creates a new level of resistance.

Anyone wanting to make a profit in this next dip needs to start selling right now! Because lower prices are likely to follow the formation of this pattern, as shown in Figure B. Indecision candles have formed next to each other and, in this case, three in a row, as seen in Figure B. With such resistance, the market collapses. With increased bearish participation, bears enter the market charging, and the result will be a dip.

Shortly after the dip, the bulls try one last time to see if they can attract any more buying interest. It is important to note that the failed attempt of the bulls to create higher prices formed the tweezer tops, although they do not need to be side by side.

Your common sense is an excellent guide as well. For example, your common sense should tell you that in a downtrend, only trade bearish candlestick formations, not bullish. Because you are trading in the direction of the trend where the market strength is. You have a greater probability of the market moving in your direction after entry versus fighting against the trend. Obviously, you would do the oppo- site in an uptrend. When you trade in the direction of the trend, you will always have the market movement on your side, pushing the market in the direction of the current trend.

In trading any candlestick formation, you must wait until the last candle closes before you enter the market because the market may not necessarily react immediately after the candlestick formation has formed. Keep in mind that as long as you have your stop-loss orders in place, you are protected. The market will move on its own timetable—not yours. You have no control of the future movement of the market. No one knows where the next pip will go. As long as the candles are above the outer moving uptrend line, you should enter buying bullish candlestick formations and exit selling bearish candlestick formations; the opposite applies in a downtrend.

When the candles are below the outer moving trend line, enter selling bearish candle- stick formations and exit buying bullish candlestick formations, as shown in Figure Trading is a game of probabilities and to put the probability of success in your favor, it is always helpful to compile more than one piece of evi- dence that the market will potentially U-turn and move in your direction at the price level you enter. In other words, success is increased if you have more than one educated reason to enter the market.

When you have more than one good reason to enter a trade, that is what is called creating a con- vergence. This is, in essence, nothing more than building a case as to why the market is going to turn at that location. Why is it that all of a sudden, at one number, the market creates a candlestick formation and changes direction or U-turns?

It is almost as if there was a conspiracy taking place among a group of traders. We all know that is impossible, because there is no Forex building or pit filled with Forex traders who could manipulate prices. My sense is that nature must stay in balance, and nature takes whatever course it must to remain in bal- ance. As human beings, we are part of nature and because we are the ones trading in the market, it is our buying and selling that make the movement in this market.

The market is part of nature and will take whatever course it must to remain in balance, as you will see in Chapter 9. Nature can provide signs on our path to success of which I know most people never think about it.

However, those individuals who try to understand it and tap into the potential it holds are the people who will benefit most and live fulfilling and wonderful lives.

I thought about all the trading opportunities I had missed over the years, due to the fact that I was not educated or ready to read the signs of success the market provided, like the evening stars and morning stars.

If learning to become a successful trader is something you really want to achieve, you will need to prepare yourself to read the signs of the market. It is there you will find success. It is a game played on a daily basis by two teams, or two types of investors on opposite sides of a trade. The bulls want the market to go up. The bears want the market to go down. The two sides are in constant, unrelenting bat- tle, fighting for control of the trading territory.

Some make millions while others keep hoping the market will turn in their favor as they continue to root for their team—the bulls or the bears. It sounds crazy when you hear that a trillion-dollar financial market works this way, but it does. Like any game in our lives, there are objectives, rules, and penalties.

Each side is trying to get ahead by scoring points, following the rules of the game. You must obey the rules if you are planning to succeed in trading. If you break them, you are more than penalized— you fail. It is a fascinating book that relates how, at one point, the president of the bank had not placed the proper controls over what his Forex traders were doing and describes the calamity that resulted.

Because of the lack of rules or oversight, a rogue group of Forex traders began to take huge financial positions in various currencies. In time, they started adding to their losing positions in hopes that they could cost average down which is the term used in a trading strategy where additional positions are taken in the same direction at lower prices from the original entry, in an attempt to average out your buying price.

Like any group of kids that find themselves in major trouble, the traders agreed to hide their misdeeds. However, as is usually the case with wrong- doing, one eventually will become so guilt ridden that the individual has to spill the beans, and this situation is no different. At the beginning of the investigation, it was determined that no real crime was committed by the traders—they were just irresponsible. The shareholders of the bank immediately demanded that the bank president be fired because of his lack of control over the bank.

As the investigation continued, many believed the only real crime committed was that of ASIC, which demanded the bank liquidate its positions. This was clearly unfortunate for the bank, because soon after all positions were liqui- dated and losses realized, all the currencies took off in the opposite direc- tion. If the four rogue traders had maintained their silence and just held onto those positions for one more month, they would have recovered from all their unrealized losses and probably would have made millions for the bank.

This would have turned the bank president into a hero instead of a fired zero! The reality of the market and the amazing part of this story is that rule breakers are just as necessary as rule makers, and in the end the disciplined trader who abides by the rules makes a profit. Pension plans? Brokerage firms?

Investment firms? Financial institutions? Individuals trade in the financials markets—human beings with human thoughts, human feelings, human emotions, and human fears. Humans who represent the organizations listed above make multimillion-dollar financial decisions. Bulls and bears fight aggressively to make the mar- ket go their way. For the Forex market to trade, there must be someone buy- ing and someone selling simultaneously.

In other words, one trader must be a bull going long and one must be a bear going short.