Course Objectives:
Forex trading.
2) Formulate and execute technical trading strategies based on the
candlestick formations
, indicators, and patterns.
3) Identify the levels of support and resistance in a currency pair to
manage risk and maximize profit with viable risk/reward ratio.
4) Understand how to acquire disciplined trading with correct trading
psychology, with a clear edge.
Class Schedule
Week / Chapter Activity Assessments
Week 1: Chapter 1
Getting Started-Basics:
What is Trading, How does Forex Trading Work? , What is the Forex?
, What are Advantages of Forex Trading?, When to buy?, When to
sell?, When can currencies be traded?, What is a lot?, How do traders
get paid?, What is spread?, What is Leverage?, What is Margin?, What
is Hedging?, What is a stop loss, What is a profit target?, What is
rollover/swap, Positive rollover, Negative rollover, What is a chart?,
Types of charts, Candlestick chart, Line chart, Bar chart.
Quiz
Week 2: Chapter 2
How candlesticks tell you part of the story?
Candlestick formation, Candlestick patterns, Candlestick basics,
Components of candlesticks, Who is in control, Bullish candlesticks,
Bearish candlesticks, Bullish or Bearish, Candlestick development,
Candlestick addition, Pre-requisite for using candlestick pattern,
Timeframe of influence, Entry signal for high probability trade,
Bearish reversal pattern, Candlestick reversal patterns, Entry signal
for high probability long trade (bullish reversal pattern), Continuation
pattern, Entry signal, Shooting star, Hanging man, Setup,
Confirmation, Hammer, Setup, Confirmation, Inverted hammer, Doji,
Types, Dragonfly-Doji, Gravestone Doji, Dark cloud cover, Bearish
engulfing pattern, Bullish engulfing pattern, Evening star, Morning
star.
Quiz
Week 3: Chapter 3
Basic Facts used in trading:
What is your edge in trading?, How to calculate expectancy, Law of
large number, Can trading replace your day job, What moves the
market?, Support, Resistance, Role reversal, An example of support
becoming resistance, vice versa, Dynamic support and Dynamic
resistance, What are impulse move and corrective move?, Market
phases, An example of trend to range, An example of range to trend,
Trend and timeframe, How do you know market is trending?, 2 ways
you may define a trend objectively, Structure of markets, Moving
Average, How to tell market is ranging?, How to define
strength/weakness of trend, Using slope?, Using candlestick sizes, 4
things to know about candlestick, Wick, Length of the wick, Size of the
candle, Close of the body.
Quiz
Week 4: Chapter 4
Pattern Trading:
Pattern formations, Double top, Head and Shoulders, Double bottom,
Inverse head and shoulders, Continuation pattern, Reversal pattern,
Triple bottom, Triple top, Falling wedge, Rising wedge, Bullish
rectangle, Trading pennant, Symmetrical triangle, Breakout,
Ascending triangle, Descending triangle, Trading cup and handle.
Quiz
Week 5: Chapter 5
Trading with Indicators
Technical Indicators, Types of indicators, Indicators for trend,
oscillators, volatility, volume, SMA, EMA, Directional Movement
System, Parabolic SAR, CCI, MACD Crossover, Stochastic oscillator,
RSI, Average True Range, Bollinger band, MVA Strategy. Use of
indicators in demo account.
2 day practice in demo account.
Week 6: Chapter 6
Build a trading system for life:
Trend trading, Swing trading, Mean Reversion, Scalping, 4 Steps
approach to Trading system, Setting your trading goals, Choosing your
stock trading strategy, Building your stock trading system, Document
your trading plan, Components of trading system, Back testing, How
long should you back test a trading strategy, Should you consider
paper trading before using real money, Paper trading (demo account),
What paper trading don’t tell you?,
Quiz
Week 7: Chapter 7
Risk Management:
What exactly is risk? , Why Stop loss, How to set stop loss to reduce
risk?, Volatility Stop loss, Time Stop, Structure stop, M.V.As, Pattern
based Stop loss, Average true range, Stop loss based on dynamic
support/resistance.
Quiz
Week 8: Chapter 8
Trading Psychology:
Psychology, Dopamine, Trading emotions, Overconfidence, Greed,
Denial, Revenge/Catch up trading, Boredom, Few other trading
emotions, Fear, Panic, Indecision, What are deadly mistakes in trading
you must avoid?, Mistake # 1, Mistake # 2, Mistake # 3, Mistake # 4,
Mistake # 5, Mistake # 6, Mistake # 7, Is there a way to overcome your
destructive emotions? Right mindset for a trader, How to approach
the market, Trading process, Market analysis,
Risk/Reward/Entry/Exit