Bullish Engulfing

FOREX

Group Coaching Session

THREE Group Coaching Session THREE

Program Summary Pro Trader Trading Trading Plan Psychology Execution

Price Bar Trade Price Action Pattern Trade Management Analysis Set-Ups Pro Trading

Extreme Strategies Initial Trend Same Bar OVB Running Entry Entry Patterns

Keltner Channel Moving Trend Change Volume Analysis Bands Averages Criteria Principles of

Market Trading Mastery Market Flow Support & Fibonacci Foundation & Analysis Method Resistance Retracements Building Blocks

Types of Orders Money Resources & Trader Business Trading Styles & Placing Management & Online FX Plan Orders Trade Sizing Brokers Trading Basics Trading Steps of a Traits and What is the Shorting the Thoughts & Successful Survival Skills FOREX Market FOREX Market Beliefs Trader Principles of Trading Mastery Summary Checklist “Key Foundation & Building Block Principles”

1. MFAM 5. PRICE ACTION – 3 Powerful Patterns • UP Trend = ALs Market Flow Price Bar UP Trend (@ Support) = BUYS Analysis Method • DOWN Trend = AHs Pattern Trade Set-Ups

2. FIBONACCI RETRACEMENTS

• Minor Retracements (38% and 50% Fibs) Fibonacci Retracements • Major Retracement (62% Fibs)

• Retracement Confluence DOWN Trend (@ Resistance) = SELLS

3. KELTNER CHANNEL BANDS

Keltner Channel • SUPPORT (Mid to Lower) in an UP Trend Bands • RESISTANCE (Mid to Upper) in a DOWN Trend • Moving Upside Mid Keltner Penetration thru Both MAs Averages • Downside Mid Keltner Penetration thru Both MAs • Extreme Upside Running Patterns (EURP) Extreme Running • Extreme Downside Running Patterns (EDRP) Patterns

4. SUPPORT & RESISTANCE LEVELS

Support & • SUPPORT = BUYING Opportunities Resistance • RESISTANCE = SELLING Opportunities • Minor Support & Minor Resistance Levels (Support becoming Resistance and Resistance becoming Support) Price Bar Pattern Trade Price Action Set-Ups

“Price Action – 4 Powerful Patterns”

UP Trend (@ Logical Support: Mid to Lower Keltner, MAs, and Fib Retracements) = BUY

BUOVB IVB Dbl Bar Low w/ Higher High / Close BUBOB Bullish Blow-Off Bar

DOWN Trend (@ Logical Resistance: Mid to Upper Keltner, MAs, and Fib Retracements) = SELL

Bearish Blow-Off Bar Double Bar High w/ BEBOB BEOVB IVB Lower Low / Close

Market Flow Market Flow Analysis Method Analysis Method (“MFAM”) “PRICE ACTION ANALYSIS the UP Trend Market Flow Process”

A series of “New Highs” (NHs) and “Active Lows” (ALs)

HIGH MRAL (Most Recent Active Low) AL

AL Three (3) Criteria for ALs: (Active Low) 1. PRICE: Market must pull down to at least LOW 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 Market Flow Analysis Method Analysis Method (“MFAM”) “PRICE ACTION ANALYSIS in the DOWN Trend Market Flow Process”

A series of “New Lows” (NLs) and “Active Highs” (AHs)

HIGH

AH (Most Recent Active High) LOW MRAH

Three (3) Criteria for AHs: NL 1. PRICE: Market must pull up to at least Mid to Upper Keltner Channel Bands NL 2. TIME: At least 4 to 6 bars in the pattern 3. Re-test of Prior Low

Market Flow Market Flow Analysis Method Analysis Method (“MFAM”) “An UP Trend Reversing Into A DOWN Trend”

Downside Penetration of the Most Recent Active Low (MRAL) in the MFAM

NH AH NH

MRAL (Most Recent Active Low) NL AL

AL The UP Trend is potentially Reversing into a DOWN Trend at the Downside Penetration of the MRAL Market Flow Market Flow Analysis Method Analysis Method (“MFAM”) “A DOWN Trend Reversing Into An UP Trend”

Upside Penetration of the Most Recent Active High (MRAH) in the MFAM

The DOWN Trend is potentially Reversing into an UP AH Trend at the Upside Penetration of the MRAH

(Most Recent Active High) NH MRAH

NL AL NL

Re-Test / Failure Keltner Channel Bands

Moving Averages

Keltner Channel Bands & 79 SMA / 89 EMA

Keltner Channel Keltner Channel Bands Bands

& 79 SMA / 89 EMA 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 Keltner Channel Bands Bands

& 79 SMA / 89 EMA Moving Averages 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.

Trend Change Criteria

Three Criteria for a Change in Trend

2 of 3 Criteria Required Trend Change “2 of 3 Criteria for a Change in Trend: DOWN to UP” Criteria

Trend Change “2 of 3 Criteria for a Change in Trend: UP to DOWN” Criteria

Price Bar Pattern Trade Set-Ups

Fibonacci Retracements

Powerful Price Patterns at Fib Retracement Levels Fibonacci Fibonacci Retracements Retracements BUY Retracements “Entering an UP Trend via Fibonacci Retracements”

HIGH BULL (BUY) Retracements:

1) 38%: (HIGH – LOW) (0.38) – HIGH 38%

2) 50%: (HIGH-LOW) (0.50) – HIGH 50%

3) 62%: (HIGH – LOW) (0.62) - HIGH 62%

LOW

HIGH HIGH

38% 38%

50% 50%

62% 62%

LOW LOW

Fibonacci Fibonacci Retracements Retracements SELL Retracements “Entering a DOWN Trend via Fibonacci Retracements”

HIGH

BEAR (SELL) Retracements: 62%

50% 1) 38%: (HIGH – LOW) (0.38) + LOW 38% 2) 50%: (HIGH-LOW) (0.50) + LOW

3) 62%: (HIGH – LOW) (0.62) + LOW LOW

HIGH HIGH

62% 62%

50% 50%

38% 38%

LOW LOW

Price Action Analysis

Vertical Bars TRANSLATION Candlesticks Price Action Price Action Analysis Analysis

“PRICE ACTION ANALYSIS Defined”

To Interpret what the OPEN, HIGH, LOW, and CLOSE did on a Particular Day and compare that criteria to the Previous Days Price Action, in order to make Intelligent Conclusions about the Market.

BAR CHARTS (Vertical Bars) or CANDLESTICKS

RANGE: Confirms Momentum…………………………

RANGE

CLOSE: Confirms Price Action

CLOSE CLOSE OPEN OPEN

OPEN OPEN CLOSE CLOSE

PRICE ACTION ANALYSIS helps a Trader… Identify insight into what the Market is likely going to do next. Price Action Price Action Analysis Analysis

“Nine (9) Types of Vertical Bars”

Single Bar Analysis

1. Bullish Vertical Bar (BUVB) 2. Bearish Vertical Bar (BEVB) 3. Neutral Vertical Bar (NVB)

Dual Bar Analysis

4. Outside Vertical Bar (OVB) 5. Inside Vertical Bar (IVB) 6. Expanded Range Vertical Bar (ERVB) 7. Weak Range Vertical Bar (WRVB) 8. Weak Inside Vertical Bar (WIVB) 9. Reversal Vertical Bar (RVB) Price Action Analysis

1. Bullish Vertical Bar (BUVB) / Bullish Candlestick

. CLOSE closes Above the OPEN and the MIDRANGE (Top Quarter) . Normal Buying Pressure (Buyers in Control) . The next Vertical Bar will more than likely take out the HIGH of the BUVB, or at least attempt to test the HIGH of the BUVB

2. Bearish Vertical Bar (BEVB) / Bearish Candlestick

. CLOSE closes Below the OPEN and the MIDRANGE (Bottom Quarter) . Normal Selling Pressure (Sellers in Control) . The next Vertical Bar will more than likely take out the LOW of the BEVB, or at least attempt to test the LOW of the BEVB

3. Neutral Vertical Bar (NVB) / Doji, Spinning Top

. Equal OPEN and CLOSE, or CLOSE within a few Ticks of OPEN . Uncertainty in the Market (Indecision) . The next Vertical Bar may lead to a Reversal in the Trend, or may likely resume the Original Trend in a Strongly Trending Market Price Action Analysis 4. Outside Vertical Bar (OVB)

Bullish Outside Vertical Bar (BUOVB) / Bullish Engulfing

. CLOSE closes Above the OPEN and the MIDRANGE (Top Quarter) and the LOW is Lower than the Previous Bar’s LOW and the HIGH is Higher than the Previous Bar’s HIGH . The next Vertical Bar should take out or at least test the HIGH of the OVB . Selling Pressure is Diminishing (Bull Strength) . Bullish Reversal Pattern when located at Support

Bearish Outside Vertical Bar (BEOVB) / Bearish Engulfing

. CLOSE closes Below the OPEN and the MIDRANGE (Bottom Quarter) and the HIGH is Higher than Previous Bar’s HIGH and the LOW is Lower than Previous Bar’s LOW . The next Vertical Bar should take out or at least test the LOW of the OVB . Buying Pressure is Diminishing (Bear Strength) . Bearish Reversal Pattern when located at Resistance Price Action Analysis 5. Inside Vertical Bar (IVB)

. The HIGH and the LOW both must be Inside the Previous Bar’s Range (the HIGH is Lower than the Previous Bar’s HIGH and the LOW is Higher than the Previous Bar’s LOW) . Uncertainty in the Market (Indecision) . Volatility typically Increases soon after the IVB

. Warns of three potential patterns in the Market: 1. A Reversal if the Market is near a HIGH or LOW 2. A Continuation if the Market is Trending 3. Indecision if the Market is Trading in a Range

. Longer Time Frames: Look for Potential Breakouts through the HIGH and/or LOW of the IVB

Inside Vertical Bar (IVB) / Bullish Harami

Inside Vertical Bar (IVB) / Bearish Harami Price Action 6. Expanded Range Vertical Bar (ERVB) Analysis

. The ERVB is roughly 250% Greater than the Average Range of the Previous 10 to 15 Bars . The ERVB may be an OVB (Bullish, Bearish, or Neutral) . Usually indicates the possibility of a Breakout . Volatility typically Decreases for a few bars following an ERVB . The LOW and/or HIGH of the ERVB may act as Support/Resistance

. Longer Time Frames: Calculate Fibonacci Retracements using the LOW and HIGH of the ERVB for determining potential Entry Levels into the Beginning of a Trend

RESISTANCE

SUPPORT

RESISTANCE

SUPPORT Price Action 7. Weak Range Vertical Bar (WRVB) Analysis

. The WRVB is the Smallest Range (High minus Low) Bar in the Previous 10 to 15 Bars . Weak Buying and/or Selling Pressure (Neutral) . A WRVB in a Trending Market usually indicates a Resumption in the Direction of the Trend . A WRVB in a Sideways Market usually indicates Indecision . Volatility typically Increases for a few bars following an WRVB

. Longer Time Frames: Prepare for a Potential Dynamic Price Move in either direction (Breakout)

BUY SELL

SUPPORT

BUY SELL

SUPPORT Price Action 8. Weak Inside Vertical Bar (WIVB) Analysis

. The WIVB is the Smallest Range (High minus Low) Bar in the Previous 10 to 15 Bars with the HIGH and the LOW both Inside the Previous Bar’s Range (the HIGH is Lower than the Previous Bar’s HIGH and the LOW is Higher than the Previous Bar’s LOW) . Uncertainty in the Market with Weak Buying and/or Selling Pressure (Neutral) . A WIVB in a Trending Market usually indicates a Resumption in the Direction of the Trend . A WIVB in a Sideways Market usually indicates a Potential Reversal if Market is near a HIGH or LOW . Volatility typically Increases soon after a WIVB

. Longer Time Frames: WIVBs Do Not Occur Frequently, however, look for a very Powerful Dynamic Price Move in either direction through the HIGH and/or the LOW (Breakout)

BUY

SELL

SUPPORT

BUY SELL

SUPPORT Price Action Analysis 9. Reversal Vertical Bar (RVB)

Bullish Reversal Vertical Bar (BURVB) / Bullish Piercing Line

. A BURVB is when the Market makes a Lower HIGH and a Lower LOW compared to the Previous Bar AND the Bar’s CLOSE is in the Upper Quarter of the Range Above the Previous Bar’s CLOSE . Indicates a Potential Short-Term Reversal . Bullish Reversal Pattern when the Market is Testing a Major LOW . May be found at Potential Double Bottoms

Bearish Reversal Vertical Bar (BERVB) / Bearish Dark Cloud Cover

. A BERVB is when the Market makes a Higher LOW and a Higher HIGH compared to the Previous Bar AND the Bar’s CLOSE is in the Lower Quarter of the Range Below the Previous Bar’s CLOSE . Indicates a Potential Short-Term Reversal . Bearish Reversal Pattern when the Market is Testing a Major HIGH . May be found at Potential Double Tops

Price Bar Pattern Trade Set-Ups PRICE ACTION – 4 Powerful BULLISH Reversal Patterns

UP Trend: @ Logical SUPPORT: Mid to Lower Keltner / 38%, 50%, or 62% Fibs = Trend Trade BUY

DOWN Trend: @ Logical SUPPORT: Re-Test of a LOW / Double/Triple Bottom = Counter-Trend (CT) Trade BUY

BUOVB IVB Double Bar Low w/ Higher High / Close BUBOB

Bullish Engulfing Bullish Harami Hammer

Price Bar Pattern Trade Set-Ups PRICE ACTION – 4 Powerful BEARISH Reversal Patterns

DOWN Trend: @ Logical RESISTANCE: Mid to Upper Keltner / 38%, 50% or 62% Fibs = Trend Trade SELL

UP Trend: @ Logical RESISTANCE: Re-Test of a HIGH / Double/Triple Top = Counter-Trend (CT) Trade SELL

Double Bar High w/ BEBOB BEOVB IVB Lower Low / Close

Shooting Star Bearish Engulfing Bearish Harami

Bullish Vertical Bullish Bearish Vertical Bearish Neutral Vertical Doji Spinning Top Bar (BUVB) Candlestick Bar (BEVB) Candlestick Bar (NVB) Candlestick Candlestick

Bullish Outside Bullish Engulfing Bearish Outside Bearish Engulfing Vertical Bar (BUOVB) Candlestick Vertical Bar (BEOVB) Candlestick

Inside Vertical Bullish Harami Inside Vertical Bearish Harami Bar (IVB) Candlestick Bar (IVB) Candlestick

Bullish Reversal Bullish Piercing Line Bearish Reversal Bearish Dark Cloud Cover Vertical Bar (BURVB) Candlestick Vertical Bar (BERVB) Candlestick Current Charts

USD/CHF 240M 11/22/2011

USD/CAD 240M 11/22/2011

USD/JPY DAILY 11/22/2011

Group Coaching Session FOUR

Program Summary Pro Trader Trading Trading Plan Psychology Execution

Price Bar Trade Price Action Pattern Trade Management Analysis Set-Ups Pro Trading

Extreme Strategies Initial Trend Same Bar OVB Running Entry Entry Patterns

Keltner Channel Moving Trend Change Volume Analysis Bands Averages Criteria Principles of

Market Trading Mastery Market Flow Support & Fibonacci Foundation & Analysis Method Resistance Retracements Building Blocks