Forex Virtual Learning Academy - Comprehensive Study Notes

ForViL Forex Virtual Learning Academy

Introduction

  • This program is dedicated to learning the Supply and Demand components thoroughly.

  • Intended for individuals seeking to learn and understand these concepts.

  • Acknowledgements to learners, wishing them the best.

Disclaimer

  • Educational purpose only; associated trading risks.

  • No responsibility for potential losses from using strategies described.

  • Message reiteration of accountability rests with the trader.

Rules and Fundamentals

  • Rule for Trade Setup: Every trade in Supply and Demand (SND) must be a complete setup. If all clues are not present, it may lead to misjudgment.

  • Risk vs Reward: No trading setup is infallible; claiming to have no loss trades is misleading.

  • Winning Strategy: Continuous practice and backtesting can enhance trade outcomes, increasing one's market reading ability.

Jargon in Supply and Demand

  • H - High

  • L - Low

  • HH - Higher High

  • LL - Lower Low

  • QM - Quasimodo

  • QM Level/QM Line - Defined levels within the QM setup

  • MPL - Maximum Pain Level

  • DP - Decision Point

  • SL - Stop Loss

  • TP - Target Profit

  • RBR - Rally Base Rally

  • RBD - Rally Base Drop

  • DBR - Drop Base Rally

  • DBD - Drop Base Drop

  • FTR - Fail to Return

  • FTB - First Time Back

  • Fakeout - A false breakout.

  • SR Flip - Support to Resistance flip.

  • RS Flip - Resistance to Support flip.

  • SSR - Significant Support/Resistance

  • SRS - Significant Resistance/Support

  • KINK - King Setup

  • Supply - Supply Zone or Sell Zone

  • Demand - Demand Zone or Buy Zone

  • TF - Time Frame

  • HTF - Higher Time Frame (D1, W1, MN)

  • LTF - Lower Time Frame (H4, H1, M30, M15)

  • STF - Small Time Frame (M5, M1)

  • CP - Compression

Table of Contents

  • Chapter 1: The Trends

    • The 2 Trends of the Market

  • Chapter 2: The Market Movements

    • The 3 Basic Moves

    • The 4 Movements

  • Chapter 3: The Introduction to Zones

    • What are the Zones?

    • The 3 Trade Locations

  • Chapter 4: The Setups

    • The Basic: Support & Resistance

    • The QM & Its Anatomy

    • The MPL

    • The Engulfing Setup

  • Chapter 5: Confirming the Trade with Clues

    • Role Reversal: SR Flip

    • Fakeouts

    • Special Fakeouts

    • Double Confirmation Using Custom Fibo

    • Simple Method for No Setup

Chapter 1: The Trends

Major Trends

  • Two Main Trends:

    • UPTREND (Bullish / Rally): Market is moving up, indicated by increasing prices and buyer empowerment.

    • DOWNTREND (Bearish / Drop): Market movement is downwards, indicated by decreasing prices and seller empowerment.

Chapter 2: The Market Movements

Market Moves

  • Three Basic Market Moves:

    • RALLY: An upward market movement.

    • DROP: A downward market movement.

    • BASE: Sideways movement, indicated as a pause in market direction.

Four Movements Created by Three Market Moves

  • The combination of RALLY, DROP, and BASE results in distinct patterns on the chart:

    • Rally Base Rally (RBR)

    • Drop Base Drop (DBD)

    • Drop Base Rally (DBR)

    • Rally Base Drop (RBD)

Zones Related to Market Movements

  • Demand Zone: Indicates where buying happens predominantly.

  • Supply Zone: Indicates where selling happens predominantly.

Chapter 3: Introduction to Zones

Identifying Zones

  • Three Zones to monitor:

    • Demand Zone (Buy)

    • Mid Zone (Potential to buy/sell based on market action)

    • Supply Zone (Sell)

How to Mark the Zone

  • Standard marking and long wick marking strategies:

    • Bearish: Mark from the first candle's low to the second candle's high; something should not exceed 25 pips.

    • Bullish: Reverse of bearish method, marking the opposite from highs/lows.

Chapter 4: The Setups

Focus Areas

  • Discussion on effective setups includes:

    • Quasimodo (QM)

    • Maximum Pain Level (MPL)

    • Engulfing Setups

Setups at Each Zone

  • Different setups correspond to each zone, influenced by market dynamics.

    • Top Zone: QM + MPL + Bearish Engulfing.

    • Mid Zone: Various combinations of setups.

    • Lower Zone: QM + MPL + Bullish Engulfing setup.

Chapter 5: Trade Confirmation with Clues

Role Reversal

  • Analysis of support and resistance flips, instances of fakeouts, and their significance in trade decision making.

Special Fakeouts

  • The different types and scenarios where special fakeouts occur, their relevance.

Double Confirmation Methods

  • Utilize custom Fibonacci overlays to validate trades, especially in lieu of setups.

Trading without Setups

  • Simple rules and methods to approach trading even in absence of setups.

Quasimodo (QM) Overview

Understanding QM

  • QM setups represent pattern structures on price action charts and are key indicators of trend reversals.

Maximum Pain Level (MPL)

What to Look For

  • Identifying MPL is pivotal; it lies within key QML markers indicating strong buyer or seller zones.

Engulfing Setup

Types of Engulfing Patterns

  • Detailed distinctions among bearish and bullish engulfing setups

    • Bearish Engulfing Type 1, 2, 3

    • Bullish Engulfing Type 1, 2, 3

  • Recognizing strength and momentum through subsequent candles to determine trade viability.

Momentum in Trade Setups

  • Identification protocols for strong vs weak engulfing patterns to enhance trading success.

  • Importance of liquidity; spots within MPL for optimal trade execution.