Forex - Price action Reversal Strategy | Baraq Adnan | Skillshare

Forex - Price action Reversal Strategy

Baraq Adnan, Student and Entrepreneur

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16 Lessons (55m)
    • 1. Introduction

      0:27
    • 2. Understanding the basic market structure

      5:07
    • 3. Identify Price Reversal pattern and practice

      22:25
    • 4. Risk Management

      1:34
    • 5. What is pip ?

      2:29
    • 6. How to calculate pip value ?

      6:40
    • 7. How to define Risk

      0:40
    • 8. How to identify stop-loss and calculate pips

      2:17
    • 9. How to calculate LotSize

      2:24
    • 10. Short Trade Example and Hands on practice

      3:40
    • 11. Long Trade Example and hands on practice

      3:18
    • 12. Millionaire Money Management part 1

      1:26
    • 13. Millionaire Money Management Part 2

      1:21
    • 14. Compounding and Final Note

      1:12
    • 15. Price Action Reversal - Long setup example (A-to-Z)

      3:23
    • 16. Price Action Reversal - Short setup example (A-to-Z)

      2:02

About This Class

Course About

This course is about trading in financial markets with Price action and identifying the reversal zones. Also it includes money management  strategy and how different aspects of financial markets help to control the risk. You will be able to learn from basics to advance that how managing money with mathematics can be profitable in long run with high probability price reversal pattern. 

Background in Trading

You must have general understanding of trading or executing orders.  

Material Included

I'll cover theory with hands on practice approach and will also provide additional document that will help you to automate calculations. We will also cover Live charts analysis for examples. 

Course Structure and Timing and Why this course

It will take you approximately 40 minutes to 1 hour to go through the theory and i'll highly recommend to executive them on Demo prior to Real Account. If you already have experience in financial markets, you can easily add it to your trading tool and enjoy the strategy with great profits. High probability setup and Money management is so pivotal that it will define your success in trading business. Keep practicing and you will enjoy the course. 

Transcripts

1. Introduction: Hi there. Thanks for tuning in. I'm so excited to share the structure with you. This is price reversal, Patrick. In this short course, we will talk about the psychology behind this pattern. How to identify this? Factoring will look into create set up on risk management concept. Also aftershave. You do have to calculate proper lot size, which is a very important US backed off trading. And finally, I will discuss with you some of the examples. So without further to do, let's jump into the jars. 2. Understanding the basic market structure: Okay. Welcome back. Now we are in a Euro GBP chart, and it's a daily chart. Let's understand. Food basics first. As we can see, the market doesn't move in the single direction as a straight line. Okay, It moves in a cycle. It moves innovates. Let me show you Never drive for you quickly. So as you can see up, down, up and down Hard high Harlow are high. Harlow hired. Hi. Hi. Lou Her. Accept her. Okay. So as we can see the market, it doesn't move in a straight line. Okay, so it's a six out. Now, we need to understand this basic structure. OK, what is higher? Higher and higher. Low? This is very important. Piece off information. It helps us to determine the trend. Okay, So, for example, that was our initial move. At this point, the market made hi on Here, Look. Okay. Our trend is confirmed. If the market is keep making higher highs and higher lows, okay, once the candle or the market will break the previous highs, this candle dead and made another hard high. That's labeled is this will give us a conviction and a kind of confirmation, you know, we start shifting our thoughts from bearish move towards the bullish move from a downtrend toe an up train because the market is making higher high now, is it making the Harlow? Yes. This Hailo is confirmed once the market will break this point. Okay, so they says this gives us conviction that market is going to have an uptrend. Okay, so we will be establishing our rule off engagements for a long trade rather than a short trade. Okay, As you can see, the market made another hard high on a higher low except or accept her. Okay, So this is the basic structure off the market. Let's take a look at the the downside or the very sight. Okay, this will do. Let me quickly draw this for you. So, Lord Lord, High normal. Higher low. Laurel. Hailo. This this is this on it. Okay. I'm just making it quickly without going, you know, into Precisely. But we're looking to look into in details. Okay? First, it just understand the basic structure. So at this point, take a look. This one Okay, so the market was keep making hard highs at this point, and all of a sudden it made alot I can't believe this for you. So that was higher time. Oh, come on. And then we hot Harlow and all of a sudden the market made a low, Okay? And then it made a Harlow not higher high Harlow. Let's call it, Let's call it lower high, okay? And this is normal. And again, this is lower, high, so and so forth. Okay, so the market is key breaking the previous lost structure on meeting and new Laure lows. However, it's not breaking the previous highest. Okay, so that means the market is in a downtrend. Okay, so that gives us conviction that something is changing. So we have to shift our mind. So, guys, you know what I usually say. The moment market takes a different stop. The moment market shows you a clue. You know, you have to change your mind accordingly. Considered that there was a bullish move there. Okay, a disappoint. Still, people are thinking about the bullish move, but this piece off information has just given you an idea. Okay? Something is going to change. Okay, That's not the topic of today, but this will help us to draw some lines and to understand basic structure 3. Identify Price Reversal pattern and practice: Okay, let's talk about the batter information. OK, if the market is an uptrend, how the price action reversal will take place if the market will take the previous two hard lows in an uptrend on break it. This will give us an idea. The trend is changing and we will go down and we will take short. So this is for the bullish move, but it's reversing towards the bearish. Okay, so let's talk about the very small. The market is in a downtrend. Okay? The price reversal will take place if the market will take previous to lower highs and break about. This is our buy signal. So, in a bearish market, let me just label it for you as well. Okay, so it's a lower high Lord high. If the market will takes two previous lower highs, this is a bullish sign. This is the price action reversal for the bullish move. Similarly, the market takes the previous too hard lows on break below the 2nd 1 This will give this conviction the market wants to reverse. So the bullish trend is over. We will take the short entry. Okay, basic structure. Now let's train our brain to draw some lines. Yeah, I'm serious. OK, guys, you need to train your brain. I will tell you the rules that we will follow to draw those lines. Okay, Now, here are the rules. Okay, let's start. Okay. If the price breaks above toe previous right, Kendall, that will give us swing low. Blind. Okay, just being with me, I will explain this theory. Okay? Similarity. If the price breaks below the previous green candle, I don't get spring high bar. Okay, let's put this theory in practice assuming right? We said if the price breaks below the green candle, this is our green candle talking about this one. This is our green candle on this scandalous red candle has broken the previous law off the green candle. This will give us a swing high born. So this boy is our saying point. OK, this hype, the price high is ever swing for and that's one piece off information. There is another theory. No, this one. If the price brig breaks above the previous highs off the rent candle. Okay. This is this Candle highest has been taken out. You know, this scandal has been taken out. No, this candle highs has been taken out. Yes. Okay, so this candles are talking about, Okay, Has a price taken out the highs off the red candle? Yes. So it will gives us the swing low point. So this will be our swing low point. Now we have two points. Destroy line one, move. Okay, Same thing. Now this green candle. Lowe's has been taken out. So we got one swing high point there on this red candle. Highs has been digging order at this with this candle. Let me just highlight this. Green gandal has taken out the highs off this previous red candle regard. Another swing point. That's right line. Okay. And we're gonna connect these two points as well. So this is the entire move. Okay, Bulled theories are in practice, so you have to train your brain, Okay? That if the green candle Lewis has been taken out. Okay, you gotta swing born. If the red candles highs has been taken out, you will get a swing part. Okay, Now, I'm gonna draw it quickly for you. Okay? This This, this, this, this. Okay, check this one. Can you see that? The high off this green candle has taken the previous highs offer off the red candle. So it's a swing point. OK? Precisely. However, on this entire move, can you see that we just has any candle taking out the laws off the green candle anywhere Green candle anywhere? No, no, no, no. Yes. Okay. Swing point. Fractal Boyd. Okay, so you need to do it. Once you will train your brain, you can drive it very easily. Okay? Very. Marie's in it. Simple. Keep the teary in mind and keep trying a good way. Okay. Why? This is important. I will tell you in a minute. Okay? But you have to train your brain that you must be able to draw this line quickly. I don't like it, etcetera. Okay, easy. Maybe it doesn't look like, but once you will start practicing this, you will be able to draw it very quickly. Okay, I'm doing in front of you don't have to spend much time and to really think because once you will train your brain brain is such a marvelous machine. You know, you training for anything and it will be like hawk precise. Okay, But you have to spend time in front of charts to do that. Okay, So same thing, Same tape, Same thing. OK, so on and so forth. Okay, we got our rules, and we know how to draw lines. So practice this. Okay? Train your brain to draw these lines. Okay, Because the price action reversal depends on these exacts. Get there. Is another indicator available? The call is exact. I would not recommend that because it doesn't draw the lines. Precisely the way you can do is try to learn how to draw these lines. OK, let's talk about the bearish reversal first, OK? I mean, the market is in a bullish trend, but there is a bearish reversal. Okay, so the market is in a bullish trend, and then it was a bearish reversal. Recognize this patron? Okay. Recognize this patron now? Recognize this patron now? Can you see that petrol anywhere? I think I'm gonna change the color. Let's make it purple. Could make it a big Okay. Can you see that pattern anywhere? The price has broken the previous lows. Okay, Berry sentry. So it's a short entry. Sorry. Okay. Petron, check this one. Petrin, check this one, Patrick. Okay. This one is also a patron. Let me just read them. Slight variation. Oops. This one. Okay. Why slight relation. Could you can see that? You know, the recruitment is deeper. Okay, so let me draw some variations for you. Okay? What? These variations can be okay. One variation, second variation. Okay. Toward creation. Okay, but this is a powerful these two Perevi again. This pattern you will see in any instrument do trait turn trade fourth grade fifth. Dig This. This is This is precisely okay. Let me just put it away. This one, okay? Precise injury. Short said the break of two previous swing parts. Okay, that's your stop loss. Stop loss will go the highest point above. Okay, not your 3%. There's another trade there. Okay, so what I'm trying to say Let's recap this bearish yourself. These are the patrons you're looking for. This is the one Price section Patron with a slight variation. Okay, but you have to train your brain once you will be able to draw lines. You can easily pick this, Patrick. Okay. As you can see, these patrons are basically price reversal. Sometimes you will see there will be a whips up. Sometimes you will see you take a look at this one. Okay. And again, I'm not saying 100 times if this pattern locker 100 times, it will work 100 times. Okay, but this is a high probability patron, you know, and creating. What do you want? You want the probability off winning towards your side? You don't say that. I 100% willing because that's never happened. Won't happen. Okay, Because old patrons will fail. What you want The winning probability toward your side or high probability setups So you can have a Morville. Immigration could take a look. This one, uh, maybe this. Okay, short said it, but what happened? Look, the market has taken out the previous hearts. Your stop loss is hit. So you feel this pattern doesn't mean the strategy and gonna work. You feel there, you will start judging your strategy on what will happen. Look how many opportunities you will miss just because you're looking for the Holy Grail. Okay, Just before, because you want to see something that will never lose you Any single trade, okay? It won't happen, period. So train your brain, asper the rules off engagement and then stopped and drying these, Patrick, and you will see how powerful these patterns are. Okay? Particularly this one. You know, it's just these are just a variation. So it's just one pattern 30 just said, uh, patrons. They okay, so this is basically the market is in a bullish trend on the Berisha Verceles. Okay, so this one gives us multiple points again. This pattern occurs on the small time frames as well, Guys on the reason I'm drying it on a higher time frame so you can easily see the candles on small time frames. A lot of lips are so you gotta be trained like a hawk like eagle. You know, there is a continuous involvement in the screen is required. Okay, But here on the largest timeframes, you can draw your analysis. And, you know, you can let the like your trip go rather than to keep monitoring it. Okay, so let's take a look into the The market is in a bearish trend, and then there is a bullish move. Okay, Um, what about this? You would take that. Okay. Right. Let's do that here. I'm gonna draw the lines quickly. Okay? Because we can see the market is bearish, and then there is a trend reversal. Okay, so let's draw some lines. Yeah, we change it to blue. That small one, uh, addicted todo right. This is boring. Bar. Put again. You know, you gotta love your craft. Otherwise, there's no point spending time in front of screens. A few are not loving what you are doing. Okay, so this is basically me crying it quickly. Forgive me if I miss any part, okay? Because it just wanted do, uh, gives you an idea about bullish reversals. Okay, so the market was heavily bearish. What? We said let me show you, show you the trying we made previously. This isn't Okay, this is it. We said the market, Hoster, dig two previous lower highs, and this will give us a bullish reversal sign. OK, so now let's check this out. Okay? Whoops. What about this guy? It's Let's do it. I'm very excited. Okay. Right. So let's change the color to purple, make it a little bigger. Okay? Can you see something? Okay to Okay, Looks ugly. But Dr Backer, okay. This is what it is. Okay? Yes. The stop loss is a way bigger. It's fine. It's fine. Okay? Not comfortable with this. Take the trade and wish you have a low stop loss. Okay. On market will give you this opportunity again. Let me share with you. Where? Okay, we are. See that I was drank any quickly. According to rules off engagement. This is our swing point. Okay? Trade. Okay. Trade on a local. Okay, I let it go. Got this one. Have anything here? Yeah, this one. Red candle highs be taken out. Okay. Or this one. Okay. Or see this one. Okay. Failed, marketer. Worse. That's fine. It's fine on this is called, you know, creating a fear factor in the market. Okay, because this entire bullish mood seat out and are bullish move. They have to fake the market before doing okay. I will be releasing a short course sooner about the market manipulation. Actually, if I can capture it there. How about this one? Okay, what about this one? Okay. You see the pattern you treated that said, OK, that's how you have to train your brain. So look. Opportunity, opportunity, opportunity, opportunity On so and so forth. Okay. Amazing. Yes. This pattern will fail sometimes, but there's no pattern that's gonna work 100%. Now, you know this price reversal pattern, which is basically this for the bearish move and this for the bullish move. Okay, so this is our pattern. Let's understand some concept off risk management who will look into the lot sizes for the money management as well. And also, as a bonus back, I'm gonna introduce my millionaire money management strategy. That's the separate course, but have included this course for you guys so you can take full leverage, OK? The idea is not to make money from you guys. The idea is to give you as much knowledge as I have, so you can be profitable. Okay, so let's move on to the next life. 4. Risk Management: Hello and welcome back. Now let's talk about risk management. This is very important aspect of creating and valued 30% off your success. It is absolutely essential to understand your exposure to the market. There is a list off seven major pairs. You need to select only two pairs to start with. Create them for six months by risking 1% off your total equity for trade. I'll explain you later how to properly select the Lord size with your risking money. Since you have selected to bears and traded them for a least six months, you can add the third pair to your portfolio only if you have earned more than 3000 tapes possible. And then you create those three pairs for six months, or unless you double your pips, which will be 6000 and again this is possible. Now let me explain to you why it is important to limit your exposure to the market by trading only two pairs. Initially, as I mentioned in the plan, you only risk 1% each time you open a new trade. Let's say you are creating all seven pairs at the same time by risking 1% off your equity. Our trade. Alexey, this is one of those days when nothing worked. You will lose 7% off your equity straightaway. It will not only affect you financially, but psychologically as well. So our plan is to minimize the risk till we become profitable and diversify our portfolio with the profits. So two pairs, six months and one person trace. Let's talk about money management. 5. What is pip ?: So what is Pip? A paper is a fractional change in price after the decimal point. Okay, let's take an example for the U S. D. J P Y pair. Currently it is trading or its exchange rate is 104.83 So the decimal point movement from 104.32104 point 084 will count as one paper move. Let's see how. Okay, here is an example. This is an exchange rate. So the current exchange rate off us GDP y is 104.83 So if the price move from 0832084 we will call 81 pip Move on. This is how we represented. And similarly the second example the prices moved five. Perhaps on this is how will represent it. The important thing we need to remember. This changes from broken to broker. Let's see how so considering fxc em as a broker the broker that I use decode two digits after the decimal point for the J. P y pairs so us T j p y g b p J P Y Cab GP wire New Zealand GP y etcetera The papal mint would be 0.1 Okay, so all yen pairs are quoted as 0.1 So for known in pairs day court, four digits after the decimal point, take an example off euro US state. So the current exchange rate is 1.1234 for the EUR USD. If this payers move the five Pips which will be 1.1239 we will represent it 0.5 So after the decimal point, the four digits will be our people. So in this example 0.5 which is basically the five pipe movement for the Euro USD. Okay, so do things that we need to remember. And again, this changes from broker to broker for FX CM broker. I'm particularly talking about because this is what I'm using. Ah, day cord. Two digits after the decimal for the yen bears. That's the paper move. And for the known yen pairs, they caught four digits after the decimal point. Okay, Celeste, before 6. How to calculate pip value ?: No, let's talk about how to calculate the value. In order to answer this, we need to know the type off our account on the denomination. For example, the account types can be standard mini or micro. Okay, I will explain in a minute. Under denomination is basically the currency used to open an account. For example, I'm living in Britain, so I will open an account in the G B p an extended account. When we press one behind the scene, it is trading 100,000 units. So in many account, when we press one or reflect the amount one behind the scene, it will create 10,000 years. And for the micro account, it's a 1000 unit. So for the standard account, the pit value would be $10 perfect, and in many account, the pip value would be $1 on. In a micro count, it will be 10 cents on again. We're talking about our account denomination is in dollar and if your account denomination is in a different currency, not dollar, this calculation will change and I'll explain to you. Okay, just bear with me. Let's say you are in the UK on You're gonna open an account in GDP. Let's calculate some stuff. So here we go. We have open an account with £1000. Our account type is micro, which means when we will select one Lord, we will be trading 1000 units behind the thing. Okay, so take an example off us. D J p Y pair on the broker is fxc em. As I said, fxc m cord two digits after the decimal for the young pairs. So us d. J p y. Repair the pip move would be 0.1 So here's a calculation. The paper value would be equal to 0.1 multiply but 1000 units again. This is a micro account divided by the exchange rate over us D j p R. This will give us a value off $0.960 again going back to the start. Our account denomination is GDP or sterling. We have open account any GBP currency, but the people value we are receiving at the movement is in dollar. So in order to convert this into a pound, we will divide it with the exchange rate off GBP USD pair on this will give us the pip value in pound, which is £0.6 difficult. Don't worry. Okay? We will do these calculation a lot. Most of the time, the brokers calculate the spit value for you on your trading platform so you don't have to do it just in case. If they don't, this is how you do it, right? So here is a detail example off how to calculate a pip value. Considering your account denomination is sterling or pound, you have open account with a £1000. So in this example, which is a Euro USD example, the pit value for the standard mini and micro count is as follows We take the pip move, which is the fractional price difference between two prices as we already know that fxc em court four digits after the decimal for the known yen pairs on known J B y pairs. Okay, we are talking about your years state. So the pip move is 0.1 on you multiply with 100,000 units which is a standard account on divided with the exchange rate off EUR USD, this will give us a pep value in Euro. Considering our account denomination is GDP or Stelling, we need to convert these euros any GBP. So how we will do it, we will multiply it with a euro GBP exchanger it on. This will return us the value in GBP. So which is 6.9 if we around it. So it's a £7 for the standard account on £0.7 for the 1,000,000 account on £0.7 for the micro account. So here's a question why we have multiplied it with a euro GBP. Okay, we need to understand it. Let me break it down for you. Okay, so your account base is in pound. You are trading a pair euro USD. We are buying and selling euros against dollar, but your base account is in pound. Okay, so the conversion need to be happened. You will convert the euro values into pound. And how you do that You check the exchange rate off euro GBP. Okay, Here is the formula. If the GDP comes at the right hand side or as a courted currency for exchange rate conversion, Okay, you multiplied. If the GV becomes at the left hand side you divided. Okay, let's take another example and I will explain this to you. Okay, so this is a different example Again, we have open an account and in GDP starlet, it's £1000 account. Onda, We are trading Aussie dollar pair. We will be buying and selling off the dollar against U S dollar. This is how we do the co collection. We know the pip movement for the known GP by pair X a 0.1 for standard account with multiplied with 100,000 units and then divided with the Aussie dollar exchange rate on this will return US value in Ozzie dollar. Okay, In order to convert Aussie dollar value into pound, we need to check the exchange rate off GpB Aussie dollar. If you see in that here is the GBP is not the courted currency. It's a base currency, so we will divide it. So we'll divide this entire formula with the GDP Aussie exchange rate. This will give us a value in a pound. So for the standard account, it's the sound pound for many count it not 0.7 on for the micro account. It's not point not seven. I hope now you can calculate the paper value confidently. I have also created an axle calculator. Let me share with you. Okay. So I will be giving you this excellent teacher. You don't have to worry about the calculations. So the standard mini and micro account. Um Andi, if you click on these cells, it will give you the formula. That how I'm calculating the micro men, your standard account pit values. As I said, most of the time, the brokers, they calculate this value for you in the trading platform. But if not, this is how you calculated. Now we know what is a paper on how to calculate a paper value next move forward. 7. How to define Risk: now important bit how we calculate our rest. How we define our risk is that MT we're willing to trade or willing to lose at any point. Okay, The recommended risk exploiter is one person or 2% off your total equity portrayed. So whenever you are entering in the market, you are only risking 1% or 2% off your account balance. Okay, let's say your account balance is $10,000 okay? And you're risking to person off your equity, which will be $200. So now you know that at any given bind, your only risking $200 off your total equity. Okay, let's map it. 8. How to identify stop-loss and calculate pips: Okay. Now let's define what is stop loss. This is a level or a price on which you are willing to exit from the trade. Okay, considering this US D. J. B. Y. Example, this is a short trade on our trade plan wars. The break off the previous week low. We are expecting market will go down again. Okay, That's our trade plan. What if we will be wrong? At what level? We want to be exit from the straight. Okay. We cannot jump in a market without defining that level. Okay, that level is called stop loss. Sometimes we use swing low or swing high for stop loss point or sometimes previous scandal low and high. Okay, Now we need to know what is our stop loss price on what is our entry price, Considering this example, our enterprise is once you're 7.0. Trade zero on our stop loss is a previous swing high, Richards ones or 7.174 So if it will subtract the higher price from the lower price, we will receive 0.144 now going back to what I said FXC in court. Two digits after the decimal point for the yen pairs on. As I said, this is a U S D. J P. Y. Example. So we will pick 0.14 in this case. So the difference between your enterprise and stop loss is called your stop Los Pepes. Okay, so in this example, it is 14 Peps. Now, this is another example. This is a long trade and this is a GBP USD pair again, this is a known again Pair on the pit move would be 0.1 Okay, take this example. Our entry price was 1.43820 on again. The idea was the break of previous high. We will go along. Okay, So we define our stop loss is the previous swing low. So the stop loss price is 1.4 33 to 4. And that's the point where we are thinking if the market reverse, you know we want to be except we don't want to be in this trade. So the difference between your enterprise and your stop loss is 0.49 This will give the 49 pips as a stop loss 9. How to calculate LotSize: Now this is the final piece off the sticks A puzzle how to calculate lord size. Let's bring everything together, OK, we know how to define our risk. We said 1% or 2% off our equity on we know how to calculate the stop loss and peps which is the paper we are risking and we know how to calculate the paper value. So the formula is the percentage off Total equity divided by the Pips were risking and multiply by the paper value. So combining this together $200 this is a two person off arbor total equity divided by the paper you are risking, for example, 23 if you multiply with the 0.6 which is the paper earlier, for example X a pep rally of order GBP, usd, and this will give us a lot site not let me share with you An excel suit on it will calculate the lot sizes for you automatically. Okay, here we have this excel sheet again. As I said, you know, I will provide you guys who don't worry about the mathematical calculation. Here is an example. You have a total equity off $10,000 you're risking 2% which is $200. The Pips. You are risking our 23 on the paper value. Now here is the thing because our total equity is 10,000. It's not a micro account, it's a mini account. Okay, so the paper value would bay. According to this calculator for EUR, USD is 0.71 on this will give us the lot calculation automatically. If you will select the cell, it will show you the formula. Okay, For double click it, it will show you which values we are multiplying and dividing etcetera. OK, this will calculate lot sites for you. Okay, let's take an example often, micro can let's say we have a micro account off $1000 on We're risking one person to offer our account which will be $10. Okay, there Pips were risking 23 for a micro account. The paper value for the U. S. GDP by Pierre is 0.77 Your 0.7 they say that's the pair were creating on. It will give us Lord size off 6.21 round figure. We can use six micro lords to create us T. J. P Y. I hope I have made this simple for you. If there is a still confusion, you can ask me question. I'll be more than happy to answer your question. I help. You are confident now how to get clipped, the large size Let's stay an example and combine everything what we learned, really. 10. Short Trade Example and Hands on practice: and I'm using Charlyne website called trading the dot com. It's a brilliant what it does. Onda Uh, let's quickly have a look at the G B b usd example. Okay, so this is GDP US day. Let's say we are conducting our analysis here. Okay? We don't know what's gonna happen in the future. Okay? So our creating strategy waas we said the break off previous low, we will sell it. Okay, so at this point, the market broke the previous structure. We said this is our cell. We hit the sell button. Let me just, uh, put a line there. So this is our entry price. Our stop loss is a previous swing high, this one. Okay, so we said, This is our Andrew Price, and this is our stop loss. Okay? And I said difference between the entry price and the stop loss will be the Pips that we're risking. Let's quickly calculate them. So it's 100 pips move. So the tapes were risking stop loss in peps physical 200. Okay, so our risk to reward ratio or the minimum gain we want is 3%. So let's see if that was our short entry and this was our stop loss. Our 3% should have bean there. Roughly there. Okay, so this is our target Target 3%. Okay, so this is how we managed trade. The break of previous swing low on the previous ring high was over. Stop loss on entry. We calculate our stop loss on this is the 2% our target. Let's calculate the Lord size. Okay, so here is our lord size calculator for the GBP USD. It's $1000 account or next say it's £1000 account. Our denomination is sterling and it's a micro account for the micro account. The calculation off the paper value would be 1000 multiplied by 10000.1 divided by GDP USD exchange rate. Okay. And this will give us a value in pound because we are buying and selling pounds against dollar. Okay, so the value would be 0.7 So let's put that it's 0.7 risking 1% and the pips we are risking with calculated 100. So our Lord size is automatically calculated, which is 1.43 so we can open one lot or 1.5 Lord it around it to trade one person off our equity. Difficult. You don't think so? Okay, this is a short example. Let's take a long example as well and change the pain. 11. Long Trade Example and hands on practice: Okay. We are an Aussie dollar pair. Okay, It's a one hour charge. Um, and let's find a long example. I think it's a brilliant let's use. Yeah, let's use a harmonic. Okay, this time you're started, you walls. Harmonic. Okay, this was a pattern you were trading. If you want to know more about Patron, now have a complete course on the patrons. Uh, so if that's that was a pattern you were trading. So your entry was this D point around about there? You're stop laws was below this x point. They're so that's that's labour late. I can't. It's Ah, enter point. This is your stop loss. And if you mayor the difference off distance, that's the 14 pips. Move. Okay, so our SL and pips physical to 14 peps. Okay, so this is or entry stop lost foreign pips. The target would be, you know, we were anticipating This is how this is where our risk as 1% on. That's where you know, we should have been exited on the 3% basis. OK, start something great, Andi. Now let's calculate the Lord size. This is a £1000 account and we're creating Aussie donor. Okay, so for Aussie dollar, I think I have put some coalition there. Yeah, so for Aussie dollar, because it's a micro account, there's a 1000 multiply. But the Pape, which is 10000.1 divided by the Aussie dollar exchange rate. Okay. And the outcome would be in Aussie dollars. Okay, because our account denomination is in a pound, We have to convert it on how we converted. We are going to use GDP, Ozzie, because GDP is a base currency in exchange rate. So we will divide it rather than to multiply. Okay. We divided with exchange rate off GDP. Aussie, which is 1.94 double Director Bowman on the paper value would be 0.69 rounded 0.7 That will be the paper value for the Aussie U. S dollar. We'll put here 0.7 Was the dollar paper value our pips we calculated I believe it was 14. Yeah, 40 was forging. We're risking 1%. And there you go. This is our lot size. So we can use 10 micro lords to trade Aussie dollar pair. Simple. Is it difficult? I don't think so. If you're still confused, if you still have a question about this concept, please do ask and I will be happy to help you. 12. Millionaire Money Management part 1: Now, this is the fun part. This is my money management strategy that I use for trading. I'm going to share with you. So let's say your total account balance was $10,000 when you started. Okay, so what you do first you divide your total equity by two. So in this case, you will have to 5000. So you have a 5000 for your margins and for your positions, and you have 5000 for trading. Okay, so the 5000 you have for the trading you will only invest one person off it. Okay, which is a $50. Okay, so now you have a $5000 for a margin on 5000 for the trading and ritual arrest. Only one person, which is $50. In this example, you have a capacity to make 100% and 100 trades. Let me explain you how so No matter what strategy you are using other, you're using the breakout patrons demand and supply divergence, harmonics, astrology, or even flipping the quite you know, whatever the strategy you are using, your risk to reward ratio should be 1 to 5. This means you are investing one person to gain 5%. Okay, considering the example, you are investing $50 to gain $250. Okay, so you have a capacity to make 100% in 100 trades. Let's do some mathematics. Let let me make it easy for you. 13. Millionaire Money Management Part 2: Let's say you have a strategy and he started. You have explained for okay, on your vending ratio is a 40% and you're losing Gray Show is a 60% so considering you have 100 traits to take on, your risk to reward is 1 to 5, which means each time you're risking 1% to gain five person. This is how the mathematics would look like you will take 100 trades in which 60 off them you will lose, which is 60 times and portrayed amount would be 50 that we calculated before. If we calculate this 60 into 50 there's a $3000 we will lose If we went 40 times or Alexa in those 100 crates, we have only one 40 times, so the calculation would be 40 multiplied by the incredible amount, which is a $50 multiply by five. This Fife is basically your game, you know, when we said race to reward ratio 1 to 5. So whenever you Arvin ing, you are winning five times more than what you're investing. Okay, so the calculation would be $10,000. So if we subtract the game from the losses were still up $7000. Okay, Surprise. This is just a mathematics. Okay, let's look into the compounding 14. Compounding and Final Note: the combining is basically as soon as you will achieve 100% which is a 5000. In this example, the balance will look like $15,000. This is your new balance. So the $10,000 your initial account balance plus the 5000 you made. Okay, so now the credible amount would be the same calculation you divided by two, which is 7500. So you have to 7501. You will keep for your margins and for your position. Another one you will trip so you will risk 1% off 7500 which is $75. And now, instead, off $50 you will invest $75 to gain 375 on you will aim to gain five time in any particular trade. So repeat it. Deal. You become a millionaire, Bhola. And that's the strategy I'm using. I hope once you will implement it like in a proper mechanical way, you will see tremendous results. If you're looking into the strategies with higher probabilities off winning ratios, I do have a separate course. Please, to look into on a wish you good luck for your training. If you have still any questions but all men, you can ask it and would be happy to help you Have a good time. 15. Price Action Reversal - Long setup example (A-to-Z): Okay, guys, let's sum up everything together. So what we have learned so far, we are going to look into a couple of examples and we will put all the theories in a practice. Okay, so let's have a look into the long set up first for a long trade. Okay, so we discussed the pattern. We are looking into this, and this is a short time for him. This is the one over chart. Okay? Just make it a bigger for you so we can look into other. We are trying it properly or not. Okay, so the Red Candle High has been taken out here, and that's where at this level are pending by would be this level. Okay, so this green candle will trigger over pending Goodbye. Okay, Now, our stop loss will be under this point. That's changes. Color to read. Let's label eight with stop loss. Okay. And this is other by entry. I'm going to change its color to green. Let's level in spending by entry. Okay, so let's calculate the difference. The pips we're going to risk. OK, so we're talking about hair approximately 50 lips. Okay, that's a 50 pips difference now we're gonna pull our calculator. There we go. So right, let's say we have $10,000 a town risking. Obviously, we'll divide it to to ask for over strategy. Money matters will start to do Onda, uh, one person off this half off the amount of going invest. So that would be a $50 again, the paper risking its 50 pips we just calculated. And this is our pick value. We know how to calculate that. And as I said, most of the time brokers to do offer this price in the trading platform, so the lot size would be 14 0.29 So we will select 14 in our amount or not size. Andi, our minimum target would be 5%. Okay, If that's over trade at 3% we will move our stop loss to break of it. Okay. And off course, at 5% were out of the trade. Five person, roughly there. Okay, again, as you can see, that you will have multiple opportunities along the way. So it's not one trade multiple creates. Okay, so, yeah, it's a powerful strategy. That's alongside 16. Price Action Reversal - Short setup example (A-to-Z): Let's take a look at the short side, Actually. Take a look. This one, it's a easy So just drawing for you. Whoops. Sorry about this, guys. Okay, so this is on a short example. It seems set up. I talk about pending cell will be here at this level. Our stop loss will be here. Let's little it. So this is our trump lows on this is our enterprise again pending gonna Andi, That's calculate the risk. So we're here about 30 pips, roughly. That's how it will We are short trade Stop losses there and they will go for minimum 5% again at 3% Move, Stop close to break even on 5%. That's your 5% there. Okay, so you know that that's how you trade. So either. Two examples Look into how we're gonna calculate our stop loss on this patron in action. I hope. Guys, you haven't. You had this short course on please practice this. Andi, um let me know what your feedback and I have also some courses on very powerful patrons. The high probability patterns. If you're interested, you can look into that. Thanks a lot for joining on to have a good day