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