FOREX

Group Coaching Session

TWO

Trading Plan

Execution

Program

Summary

Trading

Psychology

Trade

Management

Extreme

Running

Patterns

Moving

Averages

Market Flow

Analysis Method

Trader Business

Plan

Steps of a

Successful

Trader

Same Bar OVB

Entry

Initial Trend

Entry

Price Action

Analysis

Price Bar

Pattern Trade

Set-Ups

Trend Change

Criteria Volume Analysis

Keltner Channel

Bands

Support &

Resistance

Fibonacci

Retracements

Market

Foundation &

Building Blocks

Types of Orders

& Placing

Orders

Resources &

Online FX

Brokers

Money

Management &

Trade Sizing

Trading Styles

Shorting the

FOREX Market

What is the

FOREX Market

Trading

Thoughts &

Beliefs

Traits and

Survival Skills

Pro Trader

Pro Trading

Strategies

Principles of

Trading Mastery

Trading Basics

Group Coaching Session

TWO

“Key Foundation & Building Block Principles”

1. MFAM

• UP Trend = ALs

• DOWN Trend = AHs

2. FIBONACCI RETRACEMENTS

• Minor Retracements (38% and 50% Fibs)

• Major Retracement (62% Fibs)

• Retracement Confluence

3. KELTNER CHANNEL BANDS

• SUPPORT (Mid to Lower) in an UP Trend

• RESISTANCE (Mid to Upper) in a DOWN Trend

• Upside Mid Keltner Penetration thru Both MAs

• Downside Mid Keltner Penetration thru Both MAs

• Extreme Upside Running Patterns (EURP)

• Extreme Downside Running Patterns (EDRP)

4. SUPPORT & RESISTANCE LEVELS

• SUPPORT = BUYING Opportunities

• RESISTANCE = SELLING Opportunities

• Minor Support & Minor Resistance Levels

(Support becoming Resistance and Resistance becoming Support)

5. PRICE ACTION – 3 Powerful Patterns

UP Trend (@ Support) = BUYS

DOWN Trend (@ Resistance) = SELLS

Principles of Trading Mastery

Summary Checklist

Keltner Channel

Bands

Fibonacci

Retracements

Moving

Averages

Support &

Resistance

Extreme

Running

Patterns

Price Bar

Pattern Trade

Set-Ups

Market Flow

Analysis Method

“The UP Trend Market Flow Process”

A series of “New Highs” (NHs) and “Active Lows” (ALs)

LOW

AL (Active Low)

AL

AL

MRAL (Most Recent Active Low)

HIGH

NH

NH

NH

Three (3) Criteria for ALs: 1. PRICE: Market must pull down to at least

Mid to Lower Keltner Channel Bands

2. TIME: At least 4 to 6 bars in the pattern

3. Re-test of Prior High

Market Flow Analysis Method

(“MFAM”)

Market Flow

Analysis Method

Now becomes SUPPORT

RESISTANCE

“RESISTANCE becoming SUPPORT”

RESISTANCE becomes SUPPORT when broken to the Upside.

HIGH

LOW

turned into SUPPORT

RESISTANCE

turns into

SUPPORT

RESISTANCE

Support &

Resistance

“Entering an UP Trend via Fibonacci Retracements”

Fibonacci Retracements

BUY Retracements

LOW

HIGH

38%

50%

62%

LOW

HIGH

38%

50%

62%

LOW

HIGH

38%

50%

62%

BULL (BUY) Retracements:

1) 38%: (HIGH – LOW) (0.38) – HIGH

2) 50%: (HIGH-LOW) (0.50) – HIGH

3) 62%: (HIGH – LOW) (0.62) - HIGH

Fibonacci

Retracements

“Fibonacci Confluence”

AL

AL

MRAL (Most Recent Active Low)

NH

NH

NH

AL

LOW

HIGH

38%

50%

62%

38%

50%

62%

Fibonacci Confluence

UP Trend

Fibonacci

Retracements

“The DOWN Trend Market Flow Process”

A series of “New Lows” (NLs) and “Active Highs” (AHs)

HIGH

NL

NL

LOW MRAH

AH

AH

AH

NL

(Most Recent Active High)

Three (3) Criteria for AHs: 1. PRICE: Market must pull up to at least Mid

to Upper Keltner Channel Bands

2. TIME: At least 4 to 6 bars in the pattern

3. Re-test of Prior Low

Market Flow Analysis Method

(“MFAM”)

Market Flow

Analysis Method

Now becomes RESISTANCE

“SUPPORT becoming RESISTANCE”

SUPPORT becomes RESISTANCE when broken to the Downside.

HIGH

LOW SUPPORT

turned into RESISTANCE

SUPPORT

turns into

RESISTANCE

SUPPORT

Support &

Resistance

62%

50%

38%

HIGH

LOW

“Entering a DOWN Trend via Fibonacci Retracements”

BEAR (SELL) Retracements:

1) 38%: (HIGH – LOW) (0.38) + LOW

2) 50%: (HIGH-LOW) (0.50) + LOW

3) 62%: (HIGH – LOW) (0.62) + LOW

62%

50%

38%

HIGH

LOW

62%

50%

38%

HIGH

LOW

Fibonacci Retracements

SELL Retracements

Fibonacci

Retracements

“Fibonacci Confluence”

62%

50%

38%

62%

50%

38%

HIGH

NL

NL

LOW MRAH

AH

AH

AH

NL

(Most Recent Active High)

Fibonacci Confluence

DOWN Trend

Fibonacci

Retracements

“The SIDEWAYS Market”

A series of relatively “Equal Highs” and “Equal Lows”

HIGH

LOW

Market Flow Analysis Method

(“MFAM”)

Market Flow

Analysis Method

MRAL

“An UP Trend Reversing Into A DOWN Trend”

Downside Penetration of the Most Recent Active Low (MRAL) in the MFAM

AL

NH

NH

NH AH

(Most Recent Active Low) NL

The UP Trend is potentially Reversing into a

DOWN Trend at the Downside Penetration of the MRAL

AL

Market Flow Analysis Method

(“MFAM”)

Market Flow

Analysis Method

NL

“A DOWN Trend Reversing Into An UP Trend”

Upside Penetration of the Most Recent Active High (MRAH) in the MFAM

NL

MRAH

AH

AH

NH (Most Recent Active High)

AL

The DOWN Trend is potentially Reversing into an UP

Trend at the Upside Penetration of the MRAH

NL

Re-Test / Failure

Market Flow Analysis Method

(“MFAM”)

Market Flow

Analysis Method

Keltner Channel Bands

& 79 SMA / 89 EMA

Keltner Channel

Bands

Moving

Averages

The Keltner Channel Bands can be Used in 4 Ways:

1) Helps give Precise Entries into TRENDING Markets

2) Helps Determine Trend (Upside & Downside Running Patterns) – Used with

MFAM

3) Helps Define a Trading Range

4) Upside & Downside Mid Keltner Penetrations thru 79 SMA and 89

EMA

Keltner Channel Bands

& 79 SMA / 89 EMA

Keltner Channel

Bands

Moving

Averages

Precise Entries:

UP TREND When the Market is in an UP TREND (according to the MFAM)

ENTER LONG the Market when the Market Retraces Down to

between Mid to Lower Keltner Channel Band.

Mid to Lower Keltner Channel Bands generally hold as great

SUPPORT in an UP TREND.

DOWN TREND When the Market is in a DOWN TREND (according to the

MFAM) ENTER SHORT the Market when the Market Retraces

Up to between Mid to Upper Keltner Channel Band.

Mid to Upper Keltner Channel Bands generally hold as great

RESISTANCE in a DOWN TREND.

Keltner Channel Bands

& 79 SMA / 89 EMA

Keltner Channel

Bands

Moving

Averages

“3 Criteria for a Change in Trend: DOWN to UP” Trend Change

Criteria

“3 Criteria for a Change in Trend: UP to DOWN” Trend Change

Criteria

Upside & Downside Mid Keltner Penetrations thru

79 SMA & 89 EMA:

UP TREND / SUPPORT When the Mid Keltner Penetrates UP THRU 79 SMA / 89 EMA

which would indicate that these two Moving Averages will now act as

SUPPORT.

Look to ENTER LONG when the Market returns back to these

Moving Averages the First Time.

DOWN TREND / RESISTANCE When the Mid Keltner Penetrates DOWN THRU 79 SMA / 89 EMA

which would indicate that these two Moving Averages will now act as

RESISTANCE.

Look to ENTER SHORT when the Market returns back to these

Moving Averages the First Time.

Initial Trend Entry Initial Trend

Entry

EURP for BUY (LONG) Entries

EURP Criteria: 3 Consecutive Price Bars trading AT or COMPLETELY

ABOVE the Upper Keltner Channel Band

Extreme Upside

Running Pattern

Extreme

Running

Patterns

Extreme Downside

Running Pattern

EDRP for BUY (LONG) Entries

EDRP Criteria: 3 Consecutive Price Bars trading AT or COMPLETELY

BELOW the Lower Keltner Channel Band

Extreme

Running

Patterns

Trade Management

A Crucial Element

“One of the Most Important parts of Trading, if not the

MOST IMPORTANT!”

Trade

Management

“Three Parts to TRADE MANAGEMENT!”

1) Initial Stop Loss (ISL) – Catastrophic Stop

2) Pivot High (PH) and Pivot Low (PL) – Move ISL to reduce Risk

3) 2 Profit Objectives (POs) / A good Trailing Stop method – Take

Profits as the market makes money available to you

Trade Management Trade

Management

INITIAL STOP LOSS

The Chart tells a „Story‟ – ISL needs to be Dynamic

What you need to Use to Determine where to place ISL:

62% Fibs of the Larger Swing

Location of the 79/89 Moving Averages

The MRAL (UP Trend) or the MRAH (DOWN Trend)

Obviously…

Always place ISL Outside of Keltner Channel Bands LONG Trade - place ISL BELOW Lower Keltner Channel Band

SHORT Trade - place ISL ABOVE Upper Keltner Channel Band

Trade Management Trade

Management

PIVOT HIGH (PH) and PIVOT LOW (PL)

PIVOT HIGH (PH): DOWN TREND / SHORT Trade:

• Move ISL DOWN to ABOVE PH

PL

LOW

LONG 1

HIGH

2

HIGH

LOW

SHORT

PH 1

2

PIVOT LOW (PL): UP TREND / LONG Trade:

• Move ISL UP to BELOW PL

PIVOT HIGH (PH) defined (must have both):

1) TIME: 2 Bars with Lower Highs and Lower Lows

to the Right of the High Bar

2) PRICE: Market MUST come Down to between

Mid to Lower Keltner Channel Band

PIVOT LOW (PL) defined (must have both):

1) TIME: 2 Bars with Higher Highs and Higher

Lows to the Right of the Low Bar

2) PRICE: Market MUST come Up to between Mid

to Upper Keltner Channel Band

Trade Management Trade

Management

PROFIT OBJECTIVES (POs)

PROFIT OBJECTIVES – LONG Trade:

PO1: 50% Retracement from High to Entry

(HIGH – ENTRY / 2)

PO2: Just Below HIGH Market retraced Down off of

TS (Trailing Stop): Trail STOP Below Lower Keltner

Channel Band same time frame or one time

frame smaller (for tighter Trailing Stop)

PROFIT OBJECTIVES – SHORT Trade:

PO1: 50% Retracement from Entry to Low

(ENTRY – LOW / 2)

PO2: Just Above LOW Market retraced Up off of

TS (Trailing Stop): Trail STOP Above Upper Keltner

Channel Band same time frame or one time frame

smaller (for tighter Trailing Stop)

50%

BUY

PL -> AL

LOW

PO1

HIGH

PO2

PL becomes an AL

once HIGH is tested

SELL

HIGH

LOW

PH -> AH

50%

PO1

PO2

PH becomes an AH

once LOW is tested

Trade Management

Re-Test

of HIGH

Re-Test

of LOW

Trade

Management

PROFIT OBJECTIVES (POs) Trailing Stop

50%

BUY

PL -> AL

LOW

PO1

HIGH

PO2

PL becomes an AL

once HIGH is tested

SELL

HIGH

LOW

PH -> AH

50%

PO1

PO2

PH becomes an AH

once LOW is tested

Trade Management

Re-Test

of HIGH

Re-Test

of LOW

Trade

Management

Current Charts

Trading Plan

Execution

Program

Summary

Trading

Psychology

Trade

Management

Extreme

Running

Patterns

Moving

Averages

Market Flow

Analysis Method

Trader Business

Plan

Steps of a

Successful

Trader

Same Bar OVB

Entry

Initial Trend

Entry

Price Action

Analysis

Price Bar

Pattern Trade

Set-Ups

Trend Change

Criteria Volume Analysis

Keltner Channel

Bands

Support &

Resistance

Fibonacci

Retracements

Market

Foundation &

Building Blocks

Types of Orders

& Placing

Orders

Resources &

Online FX

Brokers

Money

Management &

Trade Sizing

Trading Styles

Shorting the

FOREX Market

What is the

FOREX Market

Trading

Thoughts &

Beliefs

Traits and

Survival Skills

Pro Trader

Pro Trading

Strategies

Principles of

Trading Mastery

Trading Basics

Group Coaching Session

THREE