Copyright © 2007 Stephen Margison www.sm-forex.com “IT’S TIME TO GET MORE OUT OF LIFE” www.sm-forex.com Reading Charts 1
Copyright © 2007 Stephen Margison www.sm-forex.com
“IT’S TIME TO GET MORE OUT OF LIFE”
www.sm-forex.com
Reading Charts 1
Copyright © 2007 Stephen Margison www.sm-forex.com
The Forex Codes Chart Patterns
I do not teach “systems.” Mechanical systems do not work over the long term.
Many traders never really understand this point and lose.
I teach you how to trade using Technical Analysis (charts) and Fundamental Analysis (economic news)
Copyright © 2007 Stephen Margison www.sm-forex.com
The Forex Codes Chart Patterns
Copyright © 2007 Stephen Margison www.sm-forex.com
The Forex Codes Chart Patterns
Chart Pattern is one KEY to trading success
It is a Market “Fingerprint” or “CODE”
Use only the most basic and obvious chart patterns just like the Pros do!
Others will have spotted them hence more probability of success
Copyright © 2007 Stephen Margison www.sm-forex.com
The Forex Codes - Trends The TREND is your FRIEND until it ends.
UPTREND. – Higher highs and higher lows
DOWNTREND – Lower highs and lower lows
SIDEWAYS – Range bound highs and lows
Copyright © 2007 Stephen Margison www.sm-forex.com
The Forex Codes
Copyright © 2007 Stephen Margison www.sm-forex.com
The Forex Codes
Copyright © 2007 Stephen Margison www.sm-forex.com
The Forex Codes
Copyright © 2007 Stephen Margison www.sm-forex.com
The Forex Codes Trends within Trends
Copyright © 2007 Stephen Margison www.sm-forex.com
The Forex Codes Trends within Trends
Copyright © 2007 Stephen Margison www.sm-forex.com
The Forex Codes Swing High and Lows
Copyright © 2007 Stephen Margison www.sm-forex.com
The Forex Codes The Bulls and the Bears!
BULLS are optimistic and look for an upward market direction
So if someone is Bullish he thinks the market will rise.
BEARS are pessimistic and look for a downward market direction
So if someone is Bearish she thinks the market will fall
Copyright © 2007 Stephen Margison www.sm-forex.com
The Forex Codes The Bulls and the Bears!
Copyright © 2007 Stephen Margison www.sm-forex.com
The Forex Codes The Bulls and the Bears!
Copyright © 2007 Stephen Margison www.sm-forex.com
The Forex Codes The Long and the Short of it!
If you trade a position in which you BUY the market you are said to be LONG
If you trade a position in which you SELL the market you are said to be SHORT
Hence if you buy the market you must be bullish at that moment
If you sell the market you must be bearish at that moment
Copyright © 2007 Stephen Margison www.sm-forex.com
The Forex Codes Japanese Candlesticks (intro)
Copyright © 2007 Stephen Margison www.sm-forex.com
The Forex Codes Japanese Candlesticks (intro)
The Japanese began using technical analysis to trade rice in the 17th century. Candlestick charting first appeared sometime after 1850
Long bodies indicate strong buying or selling and a faster move. The faster buying or selling activity occurs, the longer the body becomes.
Copyright © 2007 Stephen Margison www.sm-forex.com
The Forex Codes Japanese Candlesticks (intro)
Copyright © 2007 Stephen Margison www.sm-forex.com
The Forex Codes Japanese Candlesticks (intro)
Copyright © 2007 Stephen Margison www.sm-forex.com
The Forex Codes Average Daily Range
Each currency pair has an Average Daily Range With the GBP/USD (commonly known as Cable)
it is about 140 Pips When the market pushes prices greater in excess
of the ADR then opportunities arise for trading retracements
It also helps as a guide to prevent you from getting into trades when the market is already stretched
Copyright © 2007 Stephen Margison www.sm-forex.com
The Forex Codes Highs and Lows
Copyright © 2007 Stephen Margison www.sm-forex.com
The Forex Codes Support and Resistance Very important to Professional Traders
Some expert traders can trade purely on S and R
The importance of S and R must not be underestimated!
Larger timeframes more important!
Copyright © 2007 Stephen Margison www.sm-forex.com
The Forex Codes Resistance
Copyright © 2007 Stephen Margison www.sm-forex.com
The Forex Codes Support
Copyright © 2007 Stephen Margison www.sm-forex.com
The Forex Codes Support becomes Resistance
The concept of Support becomes Resistance (and vice-versa) is very powerful and VERY trade-able
A firm support level (perhaps a major low) once it is broken will likely turn into a strong resistance level at a future date
Conversely a strong resistance level (perhaps a major high) may turn into a firm support level once it is broken
Copyright © 2007 Stephen Margison www.sm-forex.com
The Forex Codes Support becomes Resistance
Copyright © 2007 Stephen Margison www.sm-forex.com
The Forex Codes Support becomes Resistance
Copyright © 2007 Stephen Margison www.sm-forex.com
The Forex Codes - Timeframes Daily, 4hr, 60min, 30 min, 15 min and 5min are
the ones used by me
In general levels of S and R on larger timeframes are more important than on smaller timeframes
Pros will use 4hr and daily charts far more than the smaller timeframes
Copyright © 2007 Stephen Margison www.sm-forex.com
“IT’S TIME TO GET MORE OUT OF LIFE”
www.sm-forex.com
Reading Charts1