Smart money concepts forex PDF- A strategy for Individual Traders- The main goal of this study was to create a simple profitable trading strategy for new traders using smart money concepts in the Forex Exchange (Forex) market. The author has a strong passion for this market. The author has tested and tried many different strategies and has found this smart concept strategy to be most useful and profitable.
Free Download link: At the end of the post
Introduction Smart money concepts forex PDF
The foreign exchange market, Forex is the most liquid and the most popular market. The main goal of this study was to create a simple profitable trading strategy for new traders using smart money concepts in the Forex Exchange (Forex) market. The author has a strong passion for this market. The author has tested and tried many different strategies and has found this smart concept strategy to be most useful and profitable.
The thesis consists of an introduction, and the theoretical and empirical research parts. The thesis gives us the introduction to the forex market and terms used in forex trading, the movement behind the price in the market, the analysis, and the risk and capital management in the currency market. The empirical part consists of a trading strategy which was created combining various smart money concepts and strategies found on the internet along with the experience of the author trading forex.
The complete strategy was kept and explained in a simple way along with the methods to implement it.
With lots of different strategies online, the author found out this smart money concept strategy to be the most successful. The risk management in the strategy is developed in a way that the traders will be profitable even if their ratio of losing trade is bigger than their winning trade. The main points to consider using this strategy is to get a good knowledge of the market structure, supply and demand, and risk management and practice it a lot in a demo account before using it to trade with real money.
Contents
1 INTRODUCTION.1
2 UNDERSTANDING THE FOREX MARKET 2
2.1How does the market move? .2
2.2Forex Terms.3
2.2.1 Currency Pairs 3
2.2.2 Leverage 3
2.2.3 Bid/Ask price & Spread .4
2.2.4 Long/Short position 5
2.2.5 Margin 5
2.2.6 Pips 5
2.2.7 Lot size 6
2.2.8 Bullish and Bearish trend.6
2.2.9 Stop-loss and Take profit order .7
2.3 Forex vs Stock markets .7
3 TECHNICAL ANALYSIS AND PATTERNS .9
3.1 Support and resistance 9
3.2Trend line.10
3.3Head and Shoulder 11
3.4Pennants.12
3.5Flags.13
3.6Wedges.14
3.7Triangles 15
3.8 Double Top and Double Bottom .16
4 FUNDAMENTAL ANALYSIS.19
5 SMART MONEY 21
6 MARKET CYCLE23
6.1Accumulation Phase 23
6.2Mark-up Phase 23
6.3 Distribution Phase .23
6.4 Mark-down Phase 24
7 MARKET STRUCTURE .25
7.1Break of structure26
8 IMBALANCES .29
9 SUPPLY AND DEMAND ZONES.31
9.1Finding a Supply and Demand Zone 32
9.2Refining the Supply and Demand Zones 34
10 MULTIPLE TIMEFRAME ANALYSIS36
10.1 Lower timeframe Structure 39
11 SUPPLY AND DEMAND PATTERNS 41
11.1 Rally-Base-Drop 41
11.2 Rally-Base-Rally42
11.3 Drop-Base-Rally 42
11.4 Drop-Base-Drop 43
12 SMART MONEY TRADING IN SUPPLY AND DEMAND ZONES 45
12.1 SUPPLY AND DEMAND BOUNCE46
13 COMPILING THE STRATEGY .47
13.1 Trend continuing patterns 47
13.2 Reversal of the trend .49
14 LOWER TIMEFRAME CONFIRMATION .51
15 TRADING STRATEGY .53
16 CAPITAL MANAGEMENT 56
17 RISK MANAGEMENT 57
17.1 Stop-loss order.57
17.2 Risk to Reward Ratio 58
18 CONCLUSIONS 60