Lecture Notes: Successful Forex Trading with Daily Candle Strategy

Introduction

• Focus on using one daily candle for successful forex trading.
• Emphasizes the transformation and profitability this strategy offers.
• Response to viewer questions and an upgrade from a previous video.

Understanding Daily Candles

• Bullish Candle Characteristics:
  • Opens, makes a low, trades up, makes a high, and closes.
  • Indicates buyers are in control.
• Bearish Candle Characteristics:
  • Opens, makes a high, trades down, makes a low, and closes.
  • Indicates sellers are in control.

AMD Principle

• Accumulation, Manipulation, Distribution (AMD):
  • Accumulation: Retail traders accumulate orders at market open.
  • Manipulation: Institutional traders make false moves to mislead retail traders.
  • Distribution: Market moves in the opposite direction, taking out stop losses.

Strategy Overview

• Daily Candle Theory: Understanding market maker manipulations.
• Candle Range Theory: Explained in a separate video.

Trading Strategy Details

• Bullish Scenario:
  • Mark candle close and take trades from the intersection of the previous day's close and current day's shadow.
  • Entry confirmation through change of character and return to order block.
  • Stop-loss placed a few pips below the entry zone.
• Bearish Scenario:
  • Similar strategy using previous high and current shadow for entry.
  • Look for market pullback for entry confirmation.

Trading Rules

• Trade between 9 AM and 3 PM London time (4 AM to 10 AM New York time).
• Mark zones before the trading window opens.
• Utilize smart money entry confirmation or reversal patterns (e.g., double top, head and shoulders).
• Stop-loss set outside refined or unrefined zones.
• Take profit aligned with the high/low of the current day's candle.

Example Scenarios

• Bullish Entry: Enter at demand zone intersection, stop-loss slightly below, take profit at high before pullback.
• Bearish Entry: Enter at supply zone intersection, stop-loss slightly above, take profit at low before pullback.

Questions and Clarifications

• No wick on the current day’s candle: Look for demand/supply zones below/above previous day’s close.
• Inconsistent candle trends: No trade if previous and current day candles are not similarly bullish or bearish.
• Ranging market conditions: Prefer trend continuation when last two days show consistent direction.
• No pullback occurrence: Wait for the next trading day or look at other currency pairs.
• Price exceeding previous day’s high/low: Avoid trading as it might indicate a trend reversal.

Conclusion

• Encouragement to engage with the channel by liking, sharing, and subscribing.
• Information on a mentorship program offered for deeper learning and support.

Additional Resources

• References to previous videos for deeper insights into specific theories and strategies.
• Invitation to join a free telegram channel for further learning.

Note: This strategy is focused on daily candles and requires understanding of market behaviors and patterns.