Course Prerequisite

  1. Forex Demo Broker Account (See below if you do not already have one)
  2. Passport or Identity Document and Proof of address not older than 90 days (You will need these documents for verification purposes)
  3. Your full attention
  4. Practice, practice practice!!!

 

Forex Broker Demo Account

In order to be able to practice the exercises in this course, you will need to open a demo account. A demo account is a practice account where you are able to trade live using fake money and not your own money.

Once you are comfortable with a demo account, you can then deposit real money and apply what you learned while using a demo account.

 

Here are the steps to follow when opening a demo account:

 

Click on this link (Non-US learners):

Recommended broker.

 

For the United States learners, follow this guide:

Recommended US broker

 

For the rest, let us continue.

 

Click on the “Open Account” button at the top of the screen.

FXTM broker

 

Fill in your details

  • First name(s) – As per your Identity document
  • Last Name – As per your Identity Document
  • Country of residence – Should be chosen automatically if you are not using any proxy or VPN
  • Mobile phone – Enter the correct number as this will be verified
  • E-mail – Enter the correct e-mail address as this will also be verified
  • Password – Choose a strong password with Letters, Numbers and Symbols (This will be your broker password on ForexTime.com)

Click on “Send Pin” – A PIN will be sent to your cellphone and E-mail address. You may use any of the two PINs for verification.

Enter the pin, accept the marketing consent and then click on “Register Now”.

On the next page, enter all the necessary details to the best of your ability, Accept the agreements and click “Submit”

FXTM Broker

On the next page, select as follows:

  • Account type – FXTM Standard
  • Account currency – Any that you prefer
  • Account leverage – 1:2000
  • Trading Account Password – Enter a strong password twice (This is different from your ForexTime portal login account that you set earlier. It will be your password to your MetaTrader account, more on this later)

Click “Open Account”

 

Next: Click on “Download platform”

FXTM Broker

 

Select the “Metatrader 4 Trading Terminal for PC” or “Metatrader 4 Trading Terminal for MAC” depending on your Operating system. Download and install the application.

Go to your Desktop, you will see a ForexTime (FXTM) MT4 icon (Windows). Double click the icon and login. To find your login details, go to the e-mail that says “Congratulations! Your new trading account is now open”. Metatrader login (at the bottom of the e-mail) and use the Trading Account Password that you entered above.

Should you need to install one for your phone, hover your mouse over the QR code, scan the QR code with your phone to download the platform.

Go to your e-mail account that you used for registration. Open the e-mail that says “action required with regard to your verification” – see below!

Click “upload”

FXTM broker

Upload your Identity document as per the e-mail and your proof of address.

 

Open a Demo account

Click on “My Accounts” on the left-hand side, then select “Open New Account”

FXTM broker

Select Demo Account.

Account type – FXTM Standard

Choose currency

Account Leverage 1:2000

Complete the passwords fields

Initial balance – any amount, I suggest 20000 USD

Click “Open Account”

FXTM broker

Your Metatrader Login details will be displayed

Download the Platform just as you did above and login using the details given.

You are now ready to continue with the course content.

Introduction

 

The Forex Masters Course is based on a forex system based solely on reading the price action. It is a trend following system that focuses on points in the market where the trend is about to change its direction, enters the market trying to ride the newly formed trend all the way to its finish line.

By doing this in the correct way, this system has the potential to deliver thousands of pips in the long run because shortly after a trend ends, usually another one emerges preceded by a small period of consolidation.

It sounds simple, but the key component of this price action system is to correctly identify the current trend, know when a change in direction of the trend is about to take place and then manage the new developing trend in a way that allows you to ride it until it ends.

All of this is done by carefully reading the price action without the use of any technical indicators, magical formulas and other nonsense like that.

This is not a very easy thing to do as you must pay great attention to every single detail of the price action, but once you get the hang of it trading this way will make you very profitable in the long run.

This Forex Masters Course explains with very great detail all of the above and gives you the complete trading system with clear entry, stop loss and exit rules, rules that if respected to the letter, can bring you hundreds of pips for every trade you make. Let us move on now to the core part of this forex system which is the trend.

 

Trend

 

You’ve probably heard a million times by now the saying “the trend is your friend”.

Well, you’ve heard it because it is true, if you want to be profitable in trading you must always know what the trend is because the trend signifies strong conviction from the vast majority of market participants that the fair price, fair value of a specific currency pair should be above or below the current level.

At that time so they all join forces and push the price up or down creating a trend this way. But let us see what a trend actually is from a technical point of view.

A trend is a series of impulsive strong moves in one direction, each of them followed by small corrections or retracements. Let’s visualize a textbook trend:

Forex Masters Course 2020 - Follow Price Action Trends 1

We have in the above pictures an ideal uptrend and a downtrend. As you can see they consist of strong directional moves followed by smaller moves in the opposite direction which are in fact formed by traders taking some profit from their positions.

This alternation of impulsive moves with correctional ones gives birth to what is known as the highs and lows of a trend.

For an uptrend, the high is formed when the correctional move starts and the low is where the same move ends and price resumes the trend.

For a downtrend, things work the other way around meaning that a low is formed at the beginning of a correction and a high take form at the end of the same correction and price resumes the downtrend.

In the examples above you can see that these highs and lows can easily be connected with a trend line. So, to conclude this, we have an uptrend when the price starts to make higher highs (HH) and higher lows (HL) and we have a downtrend when the price is making lower highs (LH) and lower lows (LL) just like in the pictures above.

Unfortunately, trends so simple and clear like those above are very rare in real market conditions. Let’s see some real trends:

Forex Masters Course 2020 - Follow Price Action Trends 2

Forex Masters Course 2020 - Follow Price Action Trends 3

We have one uptrend and one downtrend. This is just about the closest that real market trends can get to resemble those ideal textbook trends. It doesn’t get any easier than this in real market conditions.

However, trends like these two above are rare especially in the forex market which is known to be a very volatile market.

Even in these clear trends, you can see that there are some variations, there are some smaller trends contained in the bigger trend. Let’s see now how a more common trend for the forex market can look like:

Forex Masters Course 2020 - Follow Price Action Trends 4

This is a downtrend but you can tell it is more complicated than the previous ones just by looking at it. There are some important rules I designed to help you correctly identify and mark the components of a trend. Here is the first one.

 

Corrections

 

Please follow this Forex Masters Course in full while on the way to becoming a master forex trader.

Corrections or retracements can also exist in the form of a trading range that has an upper and a lower boundary where price stalls for a period of time and take a breath before resuming the trend.

Forex Masters Course 2020 - Follow Price Action Trends 5

As you learned before, a correction move happens when traders start to make some profit out of the market and, as a consequence of that, the price goes for a short period of time in the opposite direction only to resume the trend later on.

In this particular example, we have a downtrend and the people that are short are starting to take profits. When these sellers start to do this, the people that are convinced that this pair will go upwards from here decide that this is a good level for them to buy this pair.

So, in general, a correction move begins because some traders decide to mark some profits and at the same time other traders enter the market in the opposite direction. In the case

above, there weren’t many people buying this pair at the level where the correction started to unfold and so the price did not make a classic correction.

When a correction looks like a consolidation range it means that the current trend is very strong and it is very likely that it will continue further.

Forex Masters Course 2020 - Follow Price Action Trends 6

In the above example you can see that in the same trend further down we have a different form of correction that basically has its own highs and lows.

It has a first impulsive move opposite to the trend direction and at that point you could very well say that this is a classic correction but, as you can see it makes a small correction and then another impulsive move upwards.

Because this correction has its own highs and lows you could make the mistake to consider it as a trend change. However, it stays very well confined into the territory of the last impulsive move down of our trend. It stays well below the last lower high of our trend so it is still a correction even if it develops a

Forex Masters Course 2020 - Follow Price Action Trends 7

higher high. But you will learn more about this we get to the change of trend section. Corrections can take a lot of forms, these are just the most common ones, the important thing to remember is that for a correction move to be valid it must not be bigger than its impulsive move, it must not surpass the beginning of the impulsive move. Let’s see some examples:

Forex Masters Course 2020 - Follow Price Action Trends 8

You can see on this chart that the correction move has to always be smaller than the last impulsive move. At the bottom of the chart, you see an impulsive move but it is followed by a larger move in the opposite direction so that it cannot be considered a correction.

This is how a trend usually changes direction but we will learn more about this later on. Okay, I think it is pretty clear what a correction is by now it is not hard at all to see it. Now let us go to the second important rule of a trend and that has to do with correctly identifying highs and lows.

 

Confirmation according to our Forex Masters Course

 

The rule is that any high or low must be confirmed by the subsequent price action. We know from the above pages that highs and lows are formed at the beginning and finish of a correction move but, for those highs and lows to be valid price has to make another strong impulsive move in the direction of the trend.

By strong impulsive move, I mean price has to go well beyond the beginning of the correctional move that made these potential highs and lows.

Only after this strong impulsive move happens we can label those potential highs and lows as new valid, confirmed highs and lows in our trend. If this impulsive move does not happen or it is not strong then our potential highs and lows are not confirmed, they are not valid.

Valid highs and lows remain the previous ones that have been confirmed by subsequent price action. Let’s see a chart so you can better understand this:

Forex Masters Course 2020 - Follow Price Action Trends 9

You can see in this chart above that what we have to do to correctly identify the highs and lows of our trend.

As the trend unfolds in real-time we mark every level where there has been a change in direction as a potential high or low and then we wait for the next impulsive move down, in this case, to tell us if our potential high/low has been confirmed and it is valid.

If the next move down doesn’t go well past the start of the correction then we disregard these levels that we marked as potential high/low and we wait for price action to make its next move and show us where the new and confirmed high and low will be.

Let us see another example:

Forex Masters Course 2020 - Follow Price Action Trends 10

Here we have an uptrend, the price makes two HH and two HL and then when it looks like it is preparing to make the third pair of HH-HL the pair starts a series of quick up and down moves almost equal in length.

None of these can be considered as a new HH-HL because price doesn’t go up at all, it just stays there and consolidates and so we do not have a new pair of HH-HL here.

After this, you can see that the price does go up with a pretty strong move past the point where correction began but doesn’t go far and retraces back down. We still don’t have a confirmed pair of new HH-HL.

In the end, finally, the price goes very strongly upwards with a massive impulsive move, thus confirming our trend’s new HL and HH. Things like this are pretty tricky to manage in real-time but with the help of this Forex Masters Course and with practice it will become easy in time. Let’s see some other examples:

Forex Masters Course 2020 - Follow Price Action Trends 11

In the chart above we have the same situation as in the previous chart. Okay, now let’s see a more complicated one:

Forex Masters Course 2020 - Follow Price Action Trends 12

In the downtrend above you can see that we have a strange trend that has the first and the last two pairs of LH-LL very close to each other.

You saw in the earlier examples on this forex masters course that we disregard our potential highs and lows if the next impulsive move does not go past the starting point of the correction move or it goes past just slightly.

In situations like in the chart above where things are somewhere in a gray area, meaning that the impulsive move goes past a little bit more than slightly;

But still not enough to confirm the pair of LH-LL, we do not disregard this pair of LH-LL, we take note of it and after the price makes another pair of potential LH-LL and it is finally confirmed by a strong impulsive move, we label the first pair as well as LH-LL.

So we have two pairs of LH-LL close to each other in situations like these two in the chart above. Let me explain better so you can understand when to disregard a pair and when not to.

From my experience, I have come to the conclusion that the impulsive move that comes after a correction to continue the trend has to have the length, size of approximately two times that of the correction move

for me to consider it as a strong impulsive move that confirms and validates any potential high or low. Remember: strong impulsive move is a move with the length of approximately 2 times that of the correction or more.

Moderate impulsive moves are those two in the last example where we had to label 2 pairs of LH-LL close to each other. Let’s go to that chart again and see what was the size of these moves with respect to their preceding corrections:

Forex Masters Course 2020 - Follow Price Action Trends 13

This is the same chart with the same trend but it is zoomed in so you can better see what is going on with those first 2 pairs of LH-LL we talked about.

You can see the correction move has a span of approximately 260 pips and moderate move down as I call it is 380 pips in length. This means it surpasses the start of the correction by almost have of the correction move length.

If the amplitude of the move down would have been 500 pips or so then this would’ve been a strong correction move and we would have labeled the first pair of LH-LL right after the move, we wouldn’t have to wait for that huge

move down after the second pair. Let’s see on the same trend the last two pairs of LH-LL which have identical dynamics as these first two:

Forex Masters Course 2020 - Follow Price Action Trends 14

Here the impulsive move is not that big compared to the correction move like in the previous example but it is still 30% bigger in length so this is also a moderate impulsive move.

Forex Masters Course 2020 - Follow Price Action Trends 15

Here is another moderate impulsive move.

Forex Masters Course 2020 - Follow Price Action Trends 16

And another one:

Forex Masters Course 2020 - Follow Price Action Trends 17

And yet another. You can see here that the subsequent strong move down never came so our potential pair of LL-LH was never confirmed.

Forex Masters Course 2020 - Follow Price Action Trends 18

This is a strong impulsive move down, it is almost two times bigger than the correction in length.

Forex Masters Course 2020 - Follow Price Action Trends 19

This is a very small impulsive move that passes the start of the correction by only a few pips. We definitely do not have a pair of LH-LL here

Forex Masters Course 2020 - Follow Price Action Trends 20

We don’t have a pair here either. We do not consider that potential LH and LL. You can see this was a very good thing to do as price later rose back up and passed our potential LH by a few pips. We will see later when we get to the stop loss placement why this is important. The exact same thing happened in the previous example.

Forex Masters Course 2020 - Follow Price Action Trends 21

This example is one of the best as you can see a series of potential pairs of HL-HH that were never confirmed and had to be disregarded as the move upwards right after each one of them was not strong at all and not even moderate.

Okay, I think you have a clear idea now on how to correctly label the highs and lows of a trend. After reading all this, you should pull up a chart and start to practice on past price action.

Let us go now to the third important rule of a trend which is the degree. This is perhaps the most important part when trying to correctly identify the highs and lows of a trend.

 

The Degree

 

You’ve learned by now that a trend is composed of impulsive moves and their corresponding corrective moves. Let’s put together the impulsive move with its corresponding correction move and call it a wave, like in the charts below:

Forex Masters Course 2020 - Follow Price Action Trends 22

Forex Masters Course 2020 - Follow Price Action Trends 23

When trying to identify the correct highs and lows of the trend that are basically formed by these waves you have to make sure first that the waves you want to mark like a pair of high-low are of approximately the same degree, measure, extent, amplitude, size like these in the above charts. Look at the following chart:

Forex Masters Course 2020 - Follow Price Action Trends 24

We have two big waves followed by a very small wave compared to the first two. This is not of the same degree or size as the first two. Do not consider this pair the new HH and HL. You wait for a wave of about the same amplitude to label as new HH and HL. If it does not come as it happened with the trend in this chart, the last pair of HH-HL remains that of the last big wave.

Forex Masters Course 2020 - Follow Price Action Trends 25

Another example like the one above:

Forex Masters Course 2020 - Follow Price Action Trends 26

And another one:

Forex Masters Course 2020 - Follow Price Action Trends 27

Yet another one. As you can see in these examples this is not an exact science, but with practice, you will easily know what to label and whatnot. Okay, know you have a very good idea of how to identify the trend, how to identify its corrections and impulsive moves, how to correctly label the highs and lows taking into account the subsequent price action movement and the degree of the waves that form the trend. Thank you very much for following the Forex Masters Course so far; you are on the way of becoming a master forex trader.

 

Trend change

 

In short, a trend changes direction when price action makes a wave in the opposite direction of the trend near the zone of the last lower high of a downtrend or the last higher low of an uptrend.

The trend is considered to have reversed its direction when, after the wave in the opposite direction, price action penetrates that last lower high in a downtrend or the last higher low in an uptrend. Let us see an example:

Forex Masters Course 2020 - Follow Price Action Trends 28

We have a downtrend here. The red horizontal line is where the last lower high of the downtrend is placed. Price makes an impulsive move upwards that penetrates the last LH and then a small correction.

The impulsive and corrective move put together is the wave near the last lower high I talked about just earlier. When this small correction finishes and price comes back

Forex Masters Course 2020 - Follow Price Action Trends 29

up passing the start of the correction is when the trend changes from downtrend to uptrend. This is the exact place where we will enter our trades. Let’s see more examples of trend changes:

Forex Masters Course 2020 - Follow Price Action Trends 30

The same thing happens here. Last LH gets penetrated and price continues upwards after a small correction. You can see from this chart where we will enter our trade and also where do we set our initial stop loss.

As a rule, the initial stop loss will always be placed like in the chart above, at the level where correction ends, preceding the price move past the breach of last LH/HL level.

The entry-level has variations but in this example, we enter a buy stop order at the level shown in the chart after we see that price starts to make a correction at that level.

Forex Masters Course 2020 - Follow Price Action Trends 31

In this example, we have a different situation. The wave in the opposite direction does not breach the last lower high but it is in the zone of it.

In this case, we enter the buy stop order right after the price comes up after the correction and passes the level of the last lower high. Remember, in this situation we don’t enter the trade at the start of the correction because that level is still below the last LH, it did not breach the LH like in the examples above.

These are the only two situations where we have to manage our entry point. If the wave breaches the last LH/HL we enter at the start of the correction because that level already penetrated the LH/HL.

If the wave does not breach the last LH/HL like in the example above, we enter the trade as explained above and shown in the chart.

Forex Masters Course 2020 - Follow Price Action Trends 32

Another example:

Forex Masters Course 2020 - Follow Price Action Trends 33

Uptrend changes into a downtrend.

 

Forex Masters Course 2020 - Follow Price Action Trends 34

You have here another example of a trend change. Now let’s see how we manage our stop loss level so we can get as many pips as we can out of every trade we make. The stop loss will be trailed manually under every valid HL if we are buying and above every valid LH if we are selling.

Remember that there are different strategies of analysing trends; the strategies used by our Forex Masters Course, have been tried and tested.

 

Trade setup according to our Forex Masters Course

 

We will enter trades based on the trend of the 1-hour chart zoomed out to the maximum. This is the most suitable time frame for this strategy because the trend here changes direction frequently, therefore you will be in the market

80-90% of the time using this timeframe and you will not have to hold a trade open for weeks as you would do if you traded with this method on the 4h chart or the daily one.

I am not saying to trade on a higher time frame with this system, in fact, that will be more productive in the long term, I am saying stick with the 1h chart if you do not have it in you to hold a trade open for weeks at a time.

Now, there is a very important rule here: when the trend changes like in the examples above, before we enter a trade in any direction, we always make sure that the trend on the 4 hours timeframe is in the same direction that we will enter our trade-in on the hour chart.

Always remember this rule. Let me show you what happens if you do not respect this rule:

Forex Masters Course 2020 - Follow Price Action Trends 35

Trend changes from down to up, we enter, set the stop loss, the price goes just slightly in our favor and then retraces quickly and hits our stop loss. Why? Look as this:

Forex Masters Course 2020 - Follow Price Action Trends 36

This is the bigger timeframe chart. You can see that here the trend is clearly down. Always look at the 4h chart to confirm that the trend there is in the direction of the trade you are about to enter on the 1h chart.

 

Trading system step by step

 

Go to the 1h completely zoomed out the chart and find the trend using what you learned here. Don’t be shallow with this part of chart analysis. Be very meticulous, this step is the most important.

Forex Masters Course 2020 - Follow Price Action Trends 37

 

Wait for this trend to change like discussed in the trend change section. When the trade setup happens to go to the 4h chart and make sure that the trend on that timeframe has the same direction as the trade you are about to enter on the 1h chart. If this is not the case, do not enter the trade.

If the 4h timeframe trend confirms your trade direction enter the trade on the 1h chart and set your initial stop loss level as discussed above.

Trail your stop loss manually below every valid HL that the new uptrend makes or above every LH that the new downtrend makes.

You can also use this system to trade the changes in trend on the 4h chart with confirmation of trend direction from the daily chart and you can use it on the daily chart with confirmation of trend direction from the weekly chart.

The higher the timeframe, the bigger the profits will be

.

Trade examples

 

Forex Masters Course 2020 - Follow Price Action Trends 38

We enter the trade here on the change of the trend. Let’s see what happens next:

Forex Masters Course 2020 - Follow Price Action Trends 39

You trail the stop loss only at valid HL’s. The trade ends at the SL 3 level.

Forex Masters Course 2020 - Follow Price Action Trends 40

Another trade just a few hours after we exited the first, SL2 is the level we exit this one.

Forex Masters Course 2020 - Follow Price Action Trends 41

We exited on SL2 but the trend did not change there, it goes down a little bit more. There is nothing we can do but wait for the trend to change.

With the help of that square, you can see how long we have to wait before the next change of trend occurs. Of course, keep in mind that you always have to check the 4h trend before you enter any trade.

Forex Masters Course 2020 - Follow Price Action Trends 42

You exit at the SL4 level.

Forex Masters Course 2020 - Follow Price Action Trends 43

In this example, you set your sell stop order at the entry-level but the price fails to confirm the trend change and continues the uptrend for a while. There is nothing you can do here.

This is it.

 

Are you ready to trade on a real account?

 

Go to forextime.com and login into your account.

Click “My Accounts” and then “Accounts overview”

 

FXTM

Under My Demo Accounts, click on the down arrow and select “Delete Account”. We would like to delete the Demo account so that we do not confuse it with our real accounts.

 

FXTM

Under My Trading Accounts, click on the Deposit button (Minimum 100 USD).

FXTM

Choose your deposit method and follow the instructions.

 

Remember to deposit using your Credit card or Debit card (e.g. A cheque/current account) select the Credit/Debit Cards option depending on whether your card is VISA or Mastercard.

Once the money deposited reflects on your account, you may trade real money the same way you have been trading with a demo account.

 

This forex masters course is a great start towards learning how to trade forex. Should you be interested in free full video courses, click below:

Video Courses

Forex Masters Course 2020 - Follow Price Action Trends 29

Video Courses Link
Ultimate Forex Trading Training Videos – Level 1 https://videos.xyzpocket.com/
Best forex trading videos – Level 2 Advanced https://videos.xyzpocket.com/best-forex-trading-videos-level-2-advanced/
Complete Forex Trading – how to do Forex trading https://videos.xyzpocket.com/complete-forex-trading-how-to-do-forex-trading-1/
Easy Forex Trading for Beginners https://videos.xyzpocket.com/easy-forex-trading-for-beginners-1/
Forex courses online – Trading Forex indices https://videos.xyzpocket.com/forex-courses-online-trading-forex-indices-2020/
Learn Fundamental Analysis – Best Forex Training Online https://videos.xyzpocket.com/learn-fundamental-analysis-best-forex-training-online-2020/
Winning Forex trading learning with Live Trading Examples https://videos.xyzpocket.com/winning-forex-trading-learning-with-live-trading-examples-2020/

 

Written Courses Link
   
50 Pips A Day https://www.xyzpocket.com/forex-trading-training-50-pips-a-day/
Forex Academy – The Ultimate Price Action https://www.xyzpocket.com/forex-academy-the-ultimate-price-action-2020/
Forex Masters Course 2020 – Follow Price Action Trends https://www.xyzpocket.com/forex-masters-course-2020-follow-price-action/
Forex Trading School – Best Day Trading Forex https://www.xyzpocket.com/forex-trading-school-best-day-trading-forex-2020/
Free Forex Training – The Ultimate Basics https://www.xyzpocket.com/free-forex-training-the-ultimate-basics-2020/
Master in forex trading – 15 minutes a day https://www.xyzpocket.com/master-in-forex-trading-15-minutes-a-day/
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