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FMC Price Action Book
FMC Price Action Book
CHAPTER 1:
RISK MANAGEMENT.
CHAPTER 2:
DIVERGENCES (BEARISH AND BULLISH).
CHAPTER 3:
TRADING TRENDLINE USING 3RD TOUCH CONFIRMATION
STRATEGY.
CHAPTER 4:
TRADING THE DIVERGENCES COMBINED WITH THE
TRENDLINES.
CHAPTER 5:
HOW TO TRADE DIVERGENCES COMBINED WITH THE
HORIZONTAL SUPPORT AND RESISTANCE.
CHAPTER 6:
ASCENDING AND DESCENDING TRIANGLES.
CHAPTER 7:
BULLISH AND BEARISH DIAMOND.
CHAPTER 8:
INTRODUCTION TO CANDLESTICK PATTERNS.
CHAPTER 9:
BUYING AND SELLING PRESSURE.
CHAPTER 10:
CANDLESTICK PRESSURE + SUPPORT AND RESISTANCE.
CHAPTER 11:
CANDLESTICK PRESSURE + DIVERGENCES.
CHAPTER 12:
HOW TO TRADE THE CANDLESTICK PRESSURE ON THE
TRENDLINES (UPWARD/DOWNWARD TRENDLINES).
CHAPTER 13:
ENTRY POINTS AND EXIT POINTS.
CHAPTER 14:
CLOSING REMARKS.
CHAPTER 1:
What Is a Trendline?
Trendlines are easily recognizable lines that traders draw
on charts to connect a series of prices together or show
some data's best fit. The resulting line is then used to give
the trader a good idea of the direction in which an
investment's value might move.
Example no.1
Example no.2
Example no.3
Exampleno.4
Example no.3
Exampleno.4
But there will be times when I will just trade the breakout
with a pending sell stop order just a few pips under the
support level to catch the breakout when it happens but
when I do that, I sit and watch the close of the 1hr
candlestick to make sure that it does not close above the
support line (if that happens, it may mean a false
breakout).
The candlestick
• The low is the lowest price that was reached during that
time period.
All these candlesticks shown below are bullish
candlesticks which mean that their opening prices was
lower than the closing prices and therefore reflect and
overall uptrend in the timeframe each candlestick was
formed.
Did you know that there are bullish candlesticks that are
considered bearish and bearish candlesticks that are
considered bullish? To really understand this concept, you
need to *understand buying and selling pressure.
Entry Point.
- We always take our trades on the area of retest using
the horizontal Support & Resistance .
A Theoritical example of an Entry points on an uptrend (
Buy)...indicated by a letter ""E"
Make sure that you have drawn your support area inline
with your Opposite movement (Lower low (LL)) ... as
indicated by the green circles.
Practical example no.1 of an Entry point on an uptrend (
Buy ) .
Make sure that you have drawn your support area inline
with your Opposite movement (Higher High (HH)) ... as
indicated by the green circles.
Practical example no.1 of an Entry point on a downtrend (
Sell ) .
Make sure that you have drawn your support area inline
with your Opposite movement (Lower High (HH)) ... as
indicated by the green circles.
Practical example no.1 of an Exit point on an uptrend (
Buy ) .
Make sure that you have drawn your support area inline
with your Opposite movement (Higher low (HL)) ... as
indicated by the green circles.
Practical example no.1 of an Exit point on a downtrend (
Sell ) .
Sessions.
We have 4 trading sessions, the Tokyo, London, New York
and Sydney. Sydney session is not usually counted
because it overlaps the Asian session and most pairs are
consolidating that time except for AUD and NZD. The
importance of knowing sessions is that you can know
which pairs to trade in order to have an advantage on
movement.
Here are the major currencies per session.
Tokyo>JPY
Sydney>AUD, NZD
London>GBP,EUR
New York>USD,CAD
Even if you check the news releases, a news release for
every currency is always in it's session. If you can know
this, you can use this to spot a market makers setup prior
to news release.
BONUS INFORMATION.
USD and CAD are traded the same because they are in
the same session known as the New York session.
Note this : When you analyze USD and CAD Pairs. Make
sure that you always apply the Support and Resistance (
Entry points and Exit points ) . In other words you should
have a strong knowledge of support and resistance.
Don't change Lotsizes mid trade.