AN INTRO TO

An introductory guide to [this topic] and

how to succeed at it.

AUTHOR NAME
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 Disclaimer

The information provided within this eBook is for general informational

purposes only. While we try to keep the information up-to-date and
correct, there are no representations or warranties, express or implied,
about the completeness, accuracy, reliability, suitability or availability
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 Who is Forexloveu ?

Hi, welcome to Forexloveu. Firstly, a word of warning: this is not a get rich
scheme, if you are looking for a trading way that able to get rich quickly, then
you are in a wrong place. Our method requires investment of time and effort to get
started. As long as you are willing to put in the effort and follow our guidances, you
will reap the reward. Before we proceed, I would like to do a simple introduction
about my team and what are we actually doing. Just like others traders, we were
facing many difficulties along your trading path since the year we started. I
remembered when we first started trading in 2013, we managed to generate 400%
return of our capital just in 3 weeks time. However, the trading account blew out in
the following week due to overtrading and some emotional distraction. Over the
years, we had tried several trading methods, spending for EA and customized
indicators but all these just came to no avail.

However, throughout years of trial and errors, we managed to discover a straight

forward yet profitable trading setups, derived from price actions and supply and
demand theory. We have been coaching students from all over the world and we
shared our experience with them to provide them a better exposure before they step
into the real trading market and hence simplify the learning process and losing
probability for them. So, are you ready to get started ?

For more information, please visit our webpage at

www.forexloveu.com

or like our Facebook page at

www.facebook.com/forexloveucom
Table of Contents

Chapter 1 – Price Action and Swing Trading

Chapter 2 – Trading with Dominant Candle

Chapter 3 – Market Direction

Chapter 4 – Dominant Candle & Breakout

Chapter 5 – Important Chart Reversal Patterns

Chapter 6 – Trade with Point and Figure

Chapter 7 – Backtesting Software

 1
CHAPTER ONE

Price Action and

Swing Trading
 What is Price Action ?

Price action is one of the trading ways where the traders only focus on the price
movement and keeps his charts as clean as possible, or called as trade with naked
chart. Those who practice in price action trading must able to read the market
characteristics based on the price movement and the movement is often analyzed
with respect to price changes compared to the past.

In other words, price action allows traders to read the market and make subjective
trading decisions based on the price movements instead of relying on technical
indicators. Since price action trading is based on recent and past price movements,
fundamental analysis factors will be ignored. This trading strategy will be
dependent on technical analysis tools like support and resistance, candlesticks
patterns, chart patterns etc.
What Is Swing Trading and Why?

There are over 8 billion people in the world and none of them are completely
identical to each other. The same scenario goes to Forex trading as well. There
are many types of traders and millions of trading techniques were being
applied. However, we can still categorize the trading types into four respective
styles of trading, which are, scalping, intraday trading, swing trading and
position trading. In Forexloveu, we will be discussing and practicing on about
swing trading.

Compared to scalping and intraday trading, swing trading is a trading style that
requires longer term and patience to hold your traders for several days at a time.
It is an ideal trading style especially for those who cannot monitor the markets
all the time but able to dedicate a couple of hours analyzing the market every
night, e.g. retail traders who have a full time job.
The big players in market like banks, hedge funds etc know very well where
retail traders like us place our order and how do we trade in the market,
especially those intraday trading strategies, and it has been a fact that they
enjoying taking your money from market every day. I am not denying that
intraday trading does not generate profits, however, intraday trading requires
more self-emotional control as the number of trades executed will be definitely
more compared to swing trading. An improper or tight stop loss will always
lead to unnecessary loss.

With swing trading, we will only be dealing with higher timeframe charts like
H4, daily or even weekly. Looking on a higher timeframe charts will provide
traders a huge advantage, i.e. all the market “noise” in small time frames will
be filtered. With high timeframe, we can easily spot the right direction and
swing point, placing proper stop loss outside of the market reach and hence,
providing us a greater “holding power” so that we can stay in the market for a
longer period.

In short, swing trading is a method of technical analysis to help you spot strong
directional moves in the market that last on average, two to six days. Swing
trading allows individual traders like us to exploit the strong short-term moves
created by large institutional traders who cannot move in and out of the market
as quickly.
 2
CHAPTER TWO

Trading with
Dominant Candle
Alright, before we proceed to the trading setups, I would like to share some
thoughts with you. I strongly believe that most of the traders begin their careers as
so called “traders” with a very high expectations and full tank of hope, imagine
themselves escaped from the 9 to 6 job and earning both money and freedom by
drawing trend lines and referring to indicators in the trading platform. However, all
these thoughts faded off immediately when they started to face loss in their trading
path. Thus, if trading seems frustrating and complicated to you, don’t worry and
most importantly, don’t give up, you are not alone.

I always believe that in order to achieve successful in trading, we have to get the
3M’s right: Method, Mindset and Money Management. In this topic, we will be
focusing on the first M, which is “Method”. Some traders just trade for the sake of
trading, without further research or improve with their current trading method.
Always remember that the same method will not lead to same trading results
between two traders, unless both of them share the same mindset and perception in
money management. Hence, finding a suitable trading method is a must. Do not
expect to make money if you are practicing the wrong method all these times. Well,
I am about to introduce you one of my most successful price action setups in next
page, which will provide you the best chance to higher probability of winning
trades, so let’s get started
 3
CHAPTER THREE

Market Direction
 Market Direction

Most of the amateur traders are losing money in trading because they just entered
the market without knowing the current market trend, just like a foolish soldier who
blindly rushes into a battlefield without know the surround environment.

“The trend is always your friend” Does this quote sounds familiar to you? In fact,
determining the market trend is the mandatory checklist before traders proceed to
their entry. Just like in warfare, we need to know what kind of environment are we
in before executing the following step.

Basically, the market can be categorized into 3 different types of trend, which are:
•Uptrend
•Downtrend
•Sideways/ Ranging

Please refer to the chart next page for more detailed explanation.
As seen above, when market is in uptrend, we can see the price is continuing to
form higher high (new high price) and creating a higher low during pullback. While
during downtrend, the market will be forming a lower low (new low point) and
create a lower high during retracement. While in sideway, the price is neither
uptrend nor downtrend. Instead, it will be oscillating between a relatively narrow
range, without forming any different trends.

Although most of the traders are aware that determining trend is mandatory in
market analysis, most of them are still have their stop loss triggered. This is mainly
due to they have difficulty in identifying the market trend correctly. They used to
confuse between trending and retracement thus making a wrong trading decision.
You are welcome to subscribe our premium membership if you wish to learn in
distinguishing market direction in details.
 4
CHAPTER FOUR

Dominant Candle &

Breakout
 Dominant Candle &
Breakout
A dominant candle is the first candle in the pattern with long body within its
defined trend and it contains a series of small bodies candlesticks that trade within
the range of the dominant candle. The breakout candle with body closed above the
range of dominant candle creating a new high/low means that buyers/sellers are
back in control. Please take note that a dominant candle formation is
only VALID with at least 2 candlesticks that trade within the body followed by one
breakout candle and bull/bear dominant candle must be broken by bear/bull candle
 Some examples

Now, try to identify dominant candles in the chart next page

Do you get them correctly ?
Do you ever notice that after a dominant breakout candle occurred, the
market will move in the breakout candle directions.

Market shoots up after bearish dominant is broken

Market dropped after bullish dominant candle is broken

Now, you must be able to identify dominant candles before we started in
the entry topics. If you are still unsure about dominant candle, please click
here for revision.
 Type of Entries

Basically, the type of dominant candle breakout entries is pretty straight forward, it
can be categorized into

•Instant execution
•Entry after pullback/ retracement

And we are going to discuss more about entries after pullback

For those who are new to trading, we strongly recommend you to trade with
pullback. This is to ensure that all the trades executed will be having a great ratio of
risk versus reward, i.e. minimizing the losses and maximizing the profits

We can always use Fibonacci tools to measure the level or retracement after a solid
dominant breakout, drawing the trendline from the breakout candle body to the
previous swing low, and set a pending order at 78.6 level.
Caption and Photo Credit: Use this space to provide credit
to the original photo or graphic creator and provide context
on its meaning.

“ When you genuinely accept the risks,

you will be at peace with any outcome.

– Mark Douglas
“
For those who are new to trading, we strongly recommend you to trade with
pullback. This is to ensure that all the trades executed will be having a great ratio of
risk versus reward, i.e. minimizing the losses and maximizing the profits

We can always use Fibonacci tools to measure the level or retracement after a solid
dominant breakout, drawing the trendline from the breakout candle body to the
previous swing low, and set a pending order at 78.6 level.
 5
CHAPTER FIVE

Important Chart
Reversal Patterns
In this topic, we are about to discuss about reversal chart patterns. Reversal patterns
are those chart formations that signal the ongoing trend is about to end and change
direction. It serves as an important signal to avoid traders from overtrading and
reanalyze the market.

If a reversal chart pattern is seen during an uptrend, it means that the trend is going
to reverse and the price will be heading down soon. If the pattern is seen during
downtrend, it is indicating that that price will move up later on.

The most common chart reversal patterns is

•Head and shoulder
•Double bottom/ top
 Head and Shoulder

Our of my favorite reversal chart patterns is the Head and Shoulders as it clearly
describes price action and notifying traders on what is going on.

The head and shoulder chart pattern consists of a head, right shoulder, left shoulder
and neckline. The head often shows a higher high/ lower low, which is aligned with
the current trend. However, the right shoulder will be showing a lower high (in
uptrend) or higher low (in downtrend), indicating a potential direction reversal.
When a lower high is formed during an uptrend, it means that the buyers volume
are not as much as previously and sellers have came in.
When we see a potential of forming head and shoulder in market, we will
not enter any trades until a clear signal/ direction is seen.

The example below shows a false dominant break signal during an inverted
head and shoulder. At the end of downtrend, an inverted head and shoulder
is formed and market changes it direction. The forming of the dominant
breakout signal is not valid as market major direction is about to reverse
 Double Top/Bottom

The double bottom/ top is a bullish/bearish reversal pattern commonly found on

markets. At its name implies, the pattern is made up of two consecutive troughs that
are roughly equal with a moderate peak in between. This chart pattern is very
popular among traders as this shows a successful test and rejection of market before
forming a new high/low.
Similar to head and shoulder, we will stay out of the market and seek for potential
entry when a double bottom/top is seen when a downtrend/uptrend is about to end.
The chart below shows market turns into uptrend after a double bottom is formed.
We can always combine our price action with the trend reversal chart pattern. The
AUD/USD chart below shows an example of combining double top chart pattern
with dominant breakout entry. As shown, double top was formed during an uptrend
and the bullish dominant candle was broken by a strong bearish candle, thus
creating double confirmation of market going to reverse and we can start hunting
for short signals.
 6
CHAPTER SIX

Trade with
Point and Figure
 Introducing

Point and Figure Charting

Software

Developed by In partnership wth

 About the software designer – Neil Callard

Neil Callard was an experienced bank traders with 30

years of trading experience. He has spent 25 years in
market making with investment banks and actively
involved in almost major financial events since 1980. He
has been trading with only point and figure and in year
2017, he has started EightDragonsCapital and launched
the PnF charting software
 A Point and Figure Chart looks like this

Point and Figure chart provides you a better visual on market

overview, by just showing either buyers and sellers momentum
without any interference of timeframe. In others, in PnF there
will be no timeframe but only market movement.

To read a PnF chart is extremely simple:

O = Price goes down

X = Price goes up
PnF shows you the exact buy and sell signal,
without any timeframe
Some trade examples

USD/JPY
Some trade examples

USD/CAD
Besides, PnF also able to provide you a better insights on
trade management, e.g. Risk and Reward management. We
will be able to secure trades with minimum risks and
maximize the rewards with point and figure charts

PnF shows us the exact entry signals and tells us where and
when to change position from long to short or vice versa.

For more info, please visit www.forexloveu.com/point-and-figure

 7
CHAPTER SIX

Backtesting Software
We are about to introduce a backtest software that used by most of the advanced
traders.
•Do you ever think of how is your new or existing trading strategy performance?
•Are you still trading with demo account to test your strategies outcomes?

Today, we have an ultimate solution for you! Forex Tester is a software that
stimulates trading in forex market. It enable you to test and refine your trading
strategy for more than 10 years of market history. With this software, you will be
able to gain more confidence about your setups and become an experienced trader
in lesser time.

Interested ? Click here to know more.

“ Time is more valuable than money.

You can get more money, but you
cannot get more time.
“
- Jim Rohn
Final Words
Congratulations, you have made it. Hope you enjoy reading it and start practicing
on what you have learnt. Check out our trading articles about dominant setup at:

http://www.forexloveu.com/trading-articles/

In you have any doubts, you are always welcome to join our telegram discussions
group at:

https://t.me/loveswingtrade

If you find this ebook is useful, please give us a like on our facebook page at:

www.facebook.com/forexloveucom

Happy profits and have an awesome day.

Cheers
Forexloveu Team