Chapter 1: My Forex Journy

What are Timeframes Used for ?

For Spotting the trend of For Spotting AOI in the For entry
the market market signals
What is trend ?

A trend in Forex is the usual direction a currency's price is moving—either going up,
going down, or staying mostly the same. Traders look at trends to decide the best
time to buy or sell.
What is Area of Interest ( AOI ) ?

In Forex, AOI stands for Area of Interest. It’s a price level or zone on the chart
where a trader is interested in making a buy or sell decision based on expected
market reactions, and remember that a valid AOI is the one which has 3+ touches.
What is Entry ?

In Forex, an entry is the point at which a trader buys or sells a currency pair to
start a trade.
How do we spot trend ?

Identify Higher Highs and Higher Lows (for an uptrend, bullish)

Identify Lower Highs and Lower Lows (for a downtrend, bearish).
How do we spot AOI ?

HH

1 2 3
AOI
4

HL

We spot an area that has 3 - 3+ touches inside the box of HH, HL, or LL, LH.
There can be no AOI inside the box and there can be x amount of AOI.
Do not make AOI bigger than 60 pips
Snack Trick for identifying HH,HL and LL,LH :

This is the HL, because the

snack curved and turned.
What is Indictor ?

Indicators are tools that can be applied to your chart to give you some sort of
reading or indication about what the market maybe ready to do next.

We have too many indicators, but we use only 50 EMA

What is 50 EMA ?

EMA is an indicator shows the market movement, or we can say: EMA is a dynamic support and
resistance. When the price is above the EMA it acts as a support and when price is down the
EMA it acts as resistance. The line is created according previous data average calculation.

The 50 EMA refers to the Exponential Moving Average calculated over the last 50 periods
(like 50 minutes, hours, or days, depending on the chart’s timeframe) = 50 bars ( candlesticks )
on a specific timeframe
Note:

For spotting Trend we use “ Weekly, Daily, 4H “ timeframes.

For spotting AOI we use “ Weekly, Daily “ timeframes.

For Entries we use “ 4H, 2H, 1H, 30min, 15min “ timeframes.

The only indicator to be used is 50 EMA.

For indicating the market trend with HH, HL, or LL, LH use the snack trick .

A HH can not be without a HL, and the same a LL can not be without a LH .
What is session ?

A session in Forex is a specific time period when trading activity is highest in a

particular global financial market.
Number of Sessions :

Sydney Session Tokyo Session London Session New York Session

Starts: 7:00 AM Starts: 9:00 AM Starts: 8:00 AM Starts: 8:00 AM

Ends: 4:00 PM Ends: 6:00 PM Ends: 5:00 PM Ends: 5:00 PM

Australian time Japan time UK time USA time

Best Sessions for Trading :

London-New York Overlap

London Session New York Session (8:00 AM to 12:00 PM EST)

This is the most active and

High volatility and liquidity Overlaps with the end of
liquid period, as both
due to European market the London Session,
London and New York are
activity. increasing trading activity.
open.
Many currency pairs Significant price Ideal for short-term traders
involving the EUR, GBP, movements, especially with due to high price movement,
and CHF are highly active. USD pairs. creating more trading
opportunities.
Note:

We are only interested in taking a trade for the beginning of London session up
to 2 hours before the ending of New York session.
What is market structure/ Price action/ Charts ?

In Forex, market structure refers to the way price moves and forms patterns over
time, showing the behavior of buyers and sellers. It helps traders understand the
direction and stages of the market by identifying trends, reversals, and ranges.
for example: HH,HL creation ( showing up trend ) and etc..
Types of the market :

Trending Market Trending Market

Ranging Market Choppy Market
( uptrend ) ( downtrend )
What is Uptrend ?

An uptrend is when a currency’s price keeps rising, marked by higher highs and
higher lows, showing buyers are stronger the sellers.

HH ( Higher High ) : Each new peak in price is higher than the previous peak.
HL ( Higher Low ) : Each new dip in price is higher than the previous dip.
What is downtrend ?

A downtrend is when a currency’s price keeps falling over time, marked by lower
lows and lower highs. It shows that sellers are stronger than buyers, pushing the
price downward.

LL ( Lower Low ) : Each new low in price is lower than the previous low.
LH ( Lower High ) : Each new high is lower than the previous high.
What is Ranging Market ?

A ranging market is when a currency’s price moves sideways within a set

range, rather than trending up or down. Showing the indecision between
buyers and sellers, it only touches support and resistance areas. this market
does not create new HH,HL or LL,LH
What is Ranging Market ?

A choppy market is when prices move up and down randomly without a clear
trend, often without clearly touching support and resistance levels. This creates
unpredictable, messy movements that are hard to trade.
Note:

In uptrend we are only looking for buys. Enter ( buy ) when price forms a higher
low and starts moving up, Close position near a higher high or resistance level.

In downtrend we are only looking for sells. Enter when price forms a lower high
and starts moving down, Close position near a lower low or support level.

In ranging market we can look to either sell or buy because buyers and sellers are equal in
the market. Buy At support (bottom of range), sell at resistance (top of range).

Candlesticks are the market structure not wicks.

You only analyze the market in the beginning of the week.
You never enter in choppy market
Note:
In a ranging market, there are three main types of entry opportunities:

1- Support and Resistance Entry:

Buy at the support level (bottom of the range).

Sell at the resistance level (top of the range).

2- Breakout Entry Above Resistance:

Enter a buy position when the price breaks above the resistance level and the
candle closes above it, indicating that buyers are stronger and pushing the market
upward.

3- Retest Entry After Breakout:

Enter confidently when the price breaks above the resistance, closes above it, and then
retests the previous resistance level. After the retest, enter a buy position, as this setup
has a higher probability of an upward continuation.
 - Top Down Analysis -

Top-down analysis is an approach where you analyze the market by starting with
higher timeframes and gradually working down to lower timeframes. This method
allows you to first understand the broader market trends and key levels, providing
a solid foundation before honing in on finer details for specific trade setups on
shorter timeframes.
 Two types of top down analysis

From weekly timeframe all the way From 4H timeframe all the way down to
down to 4H timeframe 15min timeframe
 1- from Weekly down to 4H

For spotting the trend of the market we analyze For spotting the AOI we use Weekly and
Weekly, Daily and 4H timeframes to find two Daily timeframes, we spot weekly AOI and
consecutive in sync bullish or bearish timeframes then Daily AOI
Note:

If two consecutive timeframes are bullish then the market is bullish and we are
looking for buys, if two consecutive timeframes are bearish then the market is
bearish and we are looking for sells.

With top down analysis we see what the market is doing and what we want to
do with it. From type one top down analysis we determine whether we go for
type two top down analysis for that specific market or not.

4H
Weekly 2H
what the market is doing and
Daily 1H For entries
what we want to do with it.
4H 30min
15min
What is fake out ?
fake out

A "fake-out" in trading is when the price briefly breaks through a key support or resistance
level, making traders think a new trend is starting. But instead of continuing, the price quickly
reverses back, often leading to losses for traders who expected the breakout to hold.

For example, in Forex, a fake-out might look like the price breaking above resistance but
then dropping back down, trapping those who bought expecting an uptrend.
 - Market Patterns -

Market patterns are specific, recurring shapes or movements in price charts

that traders use to predict future price movements. These patterns are based
on historical price action and often indicate potential trends or reversals.
Patterns that Alex Teaches :

Head

Left shoulder Right shoulder

- Break and retest - - Head and shoulder - - Double top -

Trend continuation pattern Trend reversal pattern Trend reversal pattern
Break retest pattern :

A break and retest pattern is a trading setup where the price breaks through a key level
(like support or resistance) and then comes back to "retest" that level before moving in the
new direction. This pattern helps traders confirm that the breakout is real and that the
price is likely to continue in the new trend.
Head and shoulder pattern :

Head

Left shoulder Right shoulder neckline

Left shoulder Right shoulder

neckline

Head

A head and shoulders pattern is a chart formation that signals a potential trend reversal. It
has three peaks: the middle peak (the "head") is the highest, with two smaller peaks on
either side (the "shoulders"). When the price breaks below the "neckline" (a line drawn
through the two lows or highs between the peaks), it suggests the trend may reverse from
an uptrend to a downtrend or from a downtrend to an uptrend.
Double top/down pattern :

neckline
neckline

A double top/down pattern is a chart formation that signals a possible trend reversal from
an uptrend to a downtrend or from a downtrend to un uptrend. It appears as two peaks at
about the same price level, with a slight dip in between. When the price falls below/above
the level of the dip (the "neckline") after the second peak, it indicates that the price may
continue to move downward or upward.
Note:

The higher the timeframe the pattern is in, the more respected the pattern
would be.

A valid head and shoulder or double top/down pattern is the one that breaks
the neckline and candle closes below or above the neckline.

shoulders can be, big, small or equal.

The regular head and shoulder, and double top/down happen at the top or
down of the trend

The head and shoulder at the bottom of the trend is called inverted head and
shoulders that indicate the trend reversal
What is Round psychological Level ?

A round psychological level in Forex is a price point ending in whole numbers, like
( 000, 750, 500, 250 ) , which traders often view as key support or resistance.

We call these levels "round" because they represent numbers that are visually
and mentally straightforward, ending in zeroes, which creates a “rounded”
figure.
Logic Behind Psychological Levels :

Human Psychology: People find round numbers more important because

they're easy to see and remember. This makes more traders buy or sell around
these prices.

Order Placement: Many traders, including large institutions, set orders around
these levels. For instance, someone might set a target price or stop-loss at
1.0000 rather than 1.0027, simply because it feels more "complete."
What is Leverage ?

Leverage in Forex is like borrowing money from your broker to control a larger position
than you could with just your own funds. It allows you to trade with more money than
you actually have, amplifying both potential gains and potential losses.
For example, if you have $1,000 and use 10:1 leverage, you can control a $10,000
trade. However, while leverage can increase profits, it also increases risk, as losses can
be larger too.
Note:

Alex uses round psycho level every 500.

In personal account you do not use more than 1:100 leverage, but in flipping
account you can use 1:500 leverage. ( for risk management purpose ).

You do not need more than 1 year to look back for analyzing the market on the
daily timeframe, and when looking, in weekly timeframe max is 2 years ( for
spotting the AOI ), a simple tip is to zoom until you have clear vision, because it
is the market of vision.
Pairs that Alex is looking for !

USD/CAD NZD/USD NZD/CAD GBP/NZD

USD/CHF AUD/JPY AUD/CAD GBP/USD

AUD/USD GBP/CAD GBP/JPY CAD/JPY

USD/JPY EUR/USD GBP/CHF EUR/AUD

EUR/JPY
Alex Strategy

#Setandforget