Forex Market:

Cons/tu/on

Type Example Funds

Commercial and Central Bank JS Morgan, Dutch, HSBC, City Group Etc. 43%
Mul/ Na/onal Corpora/on, Some countries invest tax money in forex 33%
Sovereign Fund Manager, Small
Financial Ins/tute, Government
Brokers and Retailers Main Label: License Holder, 24%
White Label: Under Main Label

Daily Turn Over: 7.5 Trillion USD ~ 500 LCr INR

Types of users:

EBS ECN
Electronic Banking Services Electronic Communica/on Network
e.g. Big Banks e.g. Retailers

Trade execu/on in forex:

There is no exchange in forex.

Inter Bank System

EBS ECN
Major Banks Small Institutions

EBS can see ECN trades but ECN cannot see EBS trades unless paid premium subscrip/ons.

Major Currency Pairs:

1. EURUSD

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 2. GBPUSD
3. AUDUSD
4. NZDUSD
5. USDJPY
6. USDCAD
7. USDCHF

High Liquidity Assets:

1. XAUUSD
2. XAGUSD
3. BTCUSD
4. ETHUSD
5. US30
6. US Oil

Types of Trade:

Type Descrip/on Time Frame

Scalping Usually completes in 1 Hrs if not exit Draw on 5Min or 15 Min Chart
Intra Day Usually completes in 24 Hrs if not exit Draw on 30Min or 1 Hr Chart
Swing Usually completes in 10-30 days Draw on 4Hrs
Posi/onal Usually completes in 1 Yr to 5 Yrs Draw on 1week or 1 Day Chart

Money Managemnt:

For $1000 account Risk should be 10% i.e. $100

So 100/353 = 0.29 ~ 0.3

So divide trades in such a way that total lot size should not be greater than 0.3.

For a trade maximum risk should be 2% of equity.

Session Timings: (As per India Time Zone)

Sydney 3:30AM to 10:00AM

Tokiyo 5:30AM to 2:00PM

London 12:30 PM to 9:15 PM

New York 6:30PM to 3:00 AM

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London- Tokiyo Overlap 12:30PM to 2:00PM (High Liquidity Market)

New York – Europe Overlap 6:30PM to 9:15PM (High Liquidity Market)

Technical Analysis Best Time 5:30 AM to 10:30 AM

SMC/ICT Analysis Best /me 5:30 AM to 6:30 PM

Market Structure Mapping:

For making CHOCH

Up Trend 2HH should break 1 HL

Down Trend 2LL should break 1 LH

Entry Zones:
1. Order Block(OB)
2. Order Flow(OF)
3. Fair Value Gap(FVG) or Imbalance
4. Inducement Level(IDM)
5. Liquidity Grab Area(LGA)

1. OB: (Order Block)

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OB is present at every BOS and CHOCH.

OB is uppermost/ Lowermost Candle.

If Candle is big with big wicks consider only wick/body.

2. OF: (Order Flow)

OF is OB +1 Previous Candle

3. FVG: (Fair Value Gap) or Imbalance:

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FVG is formed when candle is not covered completely by previous and next candle.

4. IDM: (Inducement)

IDM is the resistance formed between CHOCH or BOS.

For future reference the market will try to cheat at this level and hence this level need to be
marked.

5. LGA: (Liquidity Grab Area)

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LGA is the region where generally the most people will put their SL. It’s the region where
market will spike to hunt the SL and get fuel. Once market gets fuel it will move strongly.

LGA is generally swing high and swing low.

LGA ang IDM forma/on is generally near

1. OB/FVG
2. Support/Resistance
3. Swing High/Swing Low
4. Trendlines

Difference between LGA and LGA:

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IDM is formed when market moves in opposite direc/on than current trend. IDM is always
within the swing where as LGA is on Swing High/Low.

SMC Trading Strategy:

1. Check Trend in 4Hrs chart

2. Draw SMC in 15Min or 1Hr Chart
3. Draw OB & OF
4. Draw FVG
5. Draw IDM
6. Draw LGA
7. Wait for price enters the zone
8. If price enters the zone shio to 4 /mes lower /me frame
9. Wait for CHOCH
10. Found CHOCH check for 5 confirma/ons.

1. OB

2. FVG

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3. Op/mal Trading Entry: (OTE)

4. Resistance

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 ICT
Market Structure Mapping:

Always map the market on 4Hrs chart to find out market direc/on.

This fake LL makes traders to think of trend change & traders go bearish but market is
uptrend.

Valid CHoCH:

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ICT Strategies: (Zones)

1. Buy Side Liquidity / Sell Side Liquidity (BSL/SSL):

BSL and SSL are present at the Swing High and Swing Low.

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 2. Discount and Premium Zone:

Steps:
1. Read Market structure for 4Hrs chart.
2. Iden/fy Swing High and Swing Low.
3. Draw BSL and SSL.
4. Draw Premium and Discount.
5. Draw fib retracement from down to up and iden/fy OTE in discount i.e. 0.705 Fib
Level.
6. Take trade on OTE. Target BSL. SL below SSL.
7. Always take trade on impulse and not on correc/on.

3. Fair Value Gap:

Fair value gap is the uncovered por/on of middle candle by previous and next candles and
shadows.

The FVG formed in bullish market is called Bullish FVG where as formed in bearish candle is
called Bearish FVG.

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When market comes back to Bullish FVG the price becomes bullish again from FVG and
when market comes back to bearish FVG price becomes bearish again from FVG.

If a candle has the FVG the market will definitely fill it in future.

FVG are used to take entry in market and not as Target as when market will fill FVG is
uncertain.

The center line of FVG is called Consequent Encroachment (CE).

FVG Trade:

Steps:
1. Draw FVG.

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 2. Draw CE
3. Wait for price come back to FVG.
4. Look for the test candle. Either Test Candle will spike in FVG or Body will
close in FVG. But Body will not cross CE.
5. Wait for next confirma/on candle. For bullish FVG confirma/on candle
will be bullish and vice versa.
6. If Confirma/on candle is valid shio to 4 /mes lower /me frame and wait
for CHoCH.
7. Take Trade aoer CHoCH. Target Swing High/Low. SL is FVG High/Low.

4. FVG Inversion:

FVG inversion happens when Bullish FVG is completely filled with body by Bearish candle or
vice versa called as Displacement candle.

In FVG inversion the market trend reverses.

Figure 1FVG Inversion 1Hrs Time Frame

Steps:
1. Draw FVG.
2. Confirm Displacement Candle and Inversion.
3. Draw CE.
4. Wait for price come back to FVG.
5. Look for the test candle. Either Test Candle will spike in FVG or Body will
close in FVG. But Body will not cross CE.
6. Wait for next confirma/on candle. For bullish FVG confirma/on candle
will be bullish and vice versa.
7. If Confirma/on candle is valid shio to 4 /mes lower /me frame and wait
for CHoCH.
8. Take Trade aoer CHoCH. Target Swing High/Low. SL is FVG High/Low.

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Figure 2 FVG Inversion Trade Entering 15 Min Time Frame

5. High/Low Probability OB:

High probability OB:

Body is 70% or greater than actual size of candle
Low probability OB:
Body is less than 50% of total size of candle.

6. Breaker Block

Bullish Breaker Block (BBB)

Low – High – HH – LL

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 • Draw Bullish Candle Body region between Low to High
• Draw FVG region in Higher Low to Higher High
• Only consider the overlapping region of FVG and Bullish candle body as Bullish
Breaker Block to find the entry
• As the price enters the Bullish Breaker Block region go to lower /me frame and wait
for CHoCH

Bearish Breaker Block

High – Low – HH - LL

7. Mi/ga/on Block

Bullish Mi/ga/on Block

Low – High -HL - HH

Bearish Mi/ga/on Block

High – Low – LH – LL

8. Internal Liquidity (IRL) and External Liquidity (ERL)

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Internal liquidity is nothing but FVG
External liquidity is nothing but Swing High Swing Low or BSL and SSL.

If market takes external liquidity it will travel towards internal liquidity and vice versa.

9. Quasimodo(QML)

Bearish:

In uptrend Market if Market makes LL with MSS then only price reverses on QML Zone.

Bullish:

Steps:
1. Check 4Hrs Trend
2. Draw ICT in 15 Min/1Hrs Chart
3. Draw BSL/SSL
4. Draw Premium and Discount
5. For Buy find OTE in Discount and for Sell find OTE in Premium
6. Find FVG, VI, GAP
7. Check FVG Inversion
8. Find High/Low Probability OB
9. Find IDM
10. Find Breaker Block/ Mi/ga/on Block (Unicorn Model)
11. Check MSS
12. Check Quasimodo (QML) Zone

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 13. Check Three Tap Concept TT3

Find at least 5 reasons before taking trade.

Strategies:

1. Daily Bias: (Strategy)

Works on Daily Time Frame

Time : 3:30 AM to 5:30 AM

Risk: 3% per trade of account size
Use fixed SL 90 pips
Use Separate Account
Read Candle liquidity properly

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 2. Power of three

Accumula/on Manipula/on Distribu/on

Steps:
• Draw Sessions by help of session indicator
• Use 15 Min TF
• Look for CHoCH in London (Manupula/on) 15 Min TF
• Draw Fib on CHoCH and take levels 2 and 4 as Targets

Wait for CHoCH in London Session

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Keep Trailing SL

3. MMXM

Steps:
• Timeframe 1 Day to 1 Hr to 15 Min
• Time: 6 AM to 9AM
• Iden/fy if the today’s candle has grabbed the liquidity of previous day candle
from any side
• The liquidity must be swapped, and previous day candle should have closed in
opposite direc/on
• If candle has swapped liquidity, then mark the liquidity swapped of previous
day candle
• Shio the Time frame to 1Hrs and mark FVG as Targets
• Check CHoCH or SMT in 15 Min Time Frame or Check for candle closing above
or below the liquidity marked line
• Take trade aoer SMT & MSS Targets as FVG and SL as below liquidity sweep

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For Targets 1Hr TF and Finding FVG
Red Candle close below Liquid Sweep line is one confirma/on for sell

LTF CHoCH and Entry

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 4. SMT
Check for co-related currencies.
hsps://www.myfxbook.com/forex-market/correla/on

The correla/on should be more than 75% and posi/ve.

Check for divergence in same candles in both corelated pair.

Select the pair in which the candle has grabbed liquidity

As GBPUSD candle has grabbed liquid from Sell Side The market will go Bullish.

Now go to GBPUSD Chart.

Make SMT line straight where liquidity sweep will be used as SL below Liquidity.

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Shio to lower /me frame 5 Min Wait for CHoCH or Next Candle should close above SMT Line
for Buy and Below SMT Line for Sell.

Example 2

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 AUD/CAD EUR/USD EUR/CHF EUR/JPY
AUD/JPY EUR/JPY EUR/CHF EUR/USD
AUD/JPY GBP/JPY EUR/USD AUD/CAD
AUD/USD AUD/CAD EUR/USD GBP/USD
AUD/USD EUR/USD BGP/CAD BGP/USD
AUD/USD GBP/USD GBP/JPY EUR/JPY
CHF/JPY AUD/JPY GBP/JPY AUD/JPY
CHF/JPY EUR/JPY
CHF/JPY GBP/JPY GBP/USD EUR/USD
EUR/CAD EUR/USD NZD/CAD EUR/USD
EUR/CAD GBP/USD NZD/CAD BGP/USD

5. Kill Zones
6. RSI

Keep the default setngs for RSI as 30 and 70.

Always Sell on Overbought Zone i.e. above 70.
Buy in Oversold Zone i.e. below 30.

Rules:
• Find divergence body to body
• Divergence must be at Overbought Zone or Oversold Zone
• Wait for confirma/on. For confirma/on use chart paserns. For example,
channel breakout
• Look for CHoCH in Lower Time Frame
• Look for Trend Change i.e. BOS-BOS-CHoCH in same TF
• Look for Demand/Supply, Bullish/Bearish OB, OF, FVG, IDM etc. at 2nd swing
• Confirm trend change and take trade

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LTF

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 7. Fibonacci Retracement

• Use Fib Levels 50% and 61.8%

• Use Fib Retracement at correc/on wave only
• Wait /ll price reaches at Fib Level
• Draw Key Level or Area of Value/ Confluence
• Use 50 or 100 EMA as confirma/on
• Draw Trendline
• Wait for CHoCH on LTF

LTF

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POI

POI refers to the Point of Interest.

POI is a zone where traders enter the market according to their analysis & believe that it is
high win probability zone.

Every OB is not POI.

There are two types of POI.
• High Probability
• Low probability
POI is zone which has taken out liquidity. It is created with single candle which sweeps
liquidity of above or below structure.

E.g.

If the OB is generated at the HH sweeping the liquid from all previous high and its
unmi/gated.

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Fake Breakouts

1. Volume Indicator
If volume bar is small breakout is fake
If volume bar is large breakout is real

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 2. Price Retest:

Wait un/l price will show breakout and then will be retraced to same zone where it will grab
liquidity of previous high/low. If price retest and takes liquidity, then breakout is real.
Otherwise, breakout is fake.

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 3. RSI Level:
If RSI level is in Over Bought and breakout is showing in Buy then its fake breakout.
If RSI level in in oversold and breakout is shown in Sell then its fake breakout.
4. Market Context:
Always follow 4 Hrs Market Trend. So any breakout against 4Hrs trend is fake.
5. Divergence:
If RSI or MACD Divergence is bullish then breakout shown in bearish is fake breakout and
vice versa.
6. FVG and OB
If breakout is shown in the direc/on of FVG or OB it can be fake breakout. Generally price
tests FVG or OB then price travels back in opposite direc/on.

The CHoCH generated at the /me of Fake breakout is Fake CHoCH.

Fundamental Analysis

1. hsps://www.inves/ng.com/

Technical Analysis

Check technical Buy or Sell

hsps://www.fxstreet.com/rates-charts/eurusd/forecast

Understand Direc/on

Watchlist
hsps://www.inves/ng.com/porvolio/?porvolioID=MDBlP2U3ZDwwYmBrYzI1Mg%3D%3D

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If sell check % change It should be less than +0.5% and vice versa

2. hsps://www.fxstreet.com/

Best blogs
News

Forcast Poll

hsps://www.fxstreet.com/rates-charts/forecast

Check for probabili/es for different commodi/es and currencies.

Check volume R & S

hsps://www.fxstreet.com/rates-charts/xauusd

3. Reading News

Search currency and news on google

hsps://www.fxstreet.com/economic-calendar/event/61b1d6bb-698e-41f7-8100-
dc668c635c8b

hsps://tradingeconomics.com/united-kingdom/monthly-gdp-mom

Data should match

4. hsps://www.myfxbook.com/

Correla/ons

hsps://www.myfxbook.com/forex-market/correla/on

Always analyze Doller Index first

• Check Day Time frame

Iden/fy Bullish or Bearish
Consider 2 digits aoer decimal for pips
• Check trend on 4Hrs trend
• Draw SMC, ICT etc on 1 Hrs
Lux Algo SMC

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 Pivot Tradi/onal Auto
EMA 50 Close
SMA 200 Close
Ellite Wave Absolute (premium access only)
EMA100 Close
• Check with EURUSD
• Check correla/ons with major pairs and select currencies accordingly

Sen/ments

hsps://www.myfxbook.com/community/outlook

Check trend and check long and short posi/ons

50%-50% Long short – Technical analysis will work effec/vely

COT Data

hsps://www.myfxbook.com/commitments-of-traders

hsps://www.tradingster.com/ Use this site COT Legacy Report

Commercial are hedgers

Look for Noncommercial

5. hsps://www.forexfactory.com/

News
hsps://www.forexfactory.com/news

Look for Hosest Stories

Economic Calander

hsps://www.forexfactory.com/calendar

6. hsps://currencystrengthmeter.org/#google_vignese

Strength Meter
Before entering in to trade check strength meter

NEWS

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Labour Data

• Non-farm Payroll
o NFP-USD 1st Friday/Month 6:00PM
o Most Import News Strong 200 pips candle
o Last 3 months data analyzed
• Unemployment Claims
o USD Weekly Thursday 7:00PM
• Unemployment Rate
o All currencies Monthly
o In USD it will be released along with NFP
• Claimant count change
o GBP Monthly

Infla/on Data

• CPI
o Strong news can move 200 pips in USD
o Consumer Price Index
o All currencies
o Every Month
• Manufacturing Index
o All Currencies
o Every Month
o If data comes above 50 its considered too good and hence a small increase
below 50 won’t give much change
• GDP
o Gross Domes/c Product
o Monthly
o All currencies
• Interest Rate
o All Currencies
o Per 45-60 days
• Core Retail Sales
o All currencies
o Monthly
• PPI
o Except Agri and Food other products like automobiles, electronics etc.
o Producers Price Index
o Monthly
o All Currencies
• FOMC
o Federal Open Members Commisee
o USD

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o Every 3-4 months
o CNBC Speech

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