GOLDEN PIPS FX EDUCATION
Gold
Trading
Guide
By Ryan GPFX
TABLE OF CONTENTS
CHAPTER 1
• Types of Chart
• Open High Low Close
• Candlestick Pattern
CHAPTER 2
• Cycle Of Market
• Types of Market
• HH, HL, LL, LH
• Buy Low Sell High
• Support & Resistance
• SnR Characteristic
• Finding SnR
• Strong or Weak SnR
• Support & Resistance Flip
• Breakout
GPFX | Gold Trading Guide
TABLE OF CONTENTS
CHAPTER 3
• Trendline
• Types of Trendlines
• How To Draw Trendlines
• Major Minor Trendline
• Trendline + SnR Flip
• Trendlines Breakout
• Chart Pattern
GPFX | Gold Trading Guide
CHAPTER
1
GPFX | Gold Trading Guide
TYPES OF CHART
Line Chart:
A simple line -shaped chart, which is a line linking from
one previous closing price to the closing next price. By
looking at the series of lines, we can see the general
price movement of a currency pair over a period of
certain time.
Bar Chart:
A simple line -shaped chart, which is a line linking from
one previous closing price to the next closing price. By
looking at the series of lines, we can see the general
price movement of a currency pair over a period of
certain time.
GPFX | Gold Trading Guide
TYPES OF CHART
Candlestick Chart:
Shows the same price info as the Bar Chart, but inside
a more perfect graphics format. Candlestick Chart also
shows the highest price range to the lowest price is not
with a vertical line, rather stem -shaped. However, in
he candlestick chart, the stem (or body) indicates the
range between the opening and closing prices.
GPFX | Gold Trading Guide
CANDLESTICK
PATTERN
One of the most powerful trading
concepts, easy to identify and is a
profitable ‘Trading Setup’. Studies
that have been done confirm that
this PATTERN has high predictive
value. This candlestick pattern is like
a language for us to understand
about the market that has taken
place.
GPFX | Gold Trading Guide
CANDLESTICK
PATTERN
Bullish Engullfing
The "Bullish Engulfing Bar" tells us the market
is no longer under seller control. Buyer will
dominate the market. When the Bullish
Engulfing candle is formed while being
UPTREND, it indicates continuation signal and
when Bullish Engulfing candle formed during
the DOWNTREND, most likely that changes
a trend to an UPTREND can occur. The
picture above shows us how the market is
changing direction after the formation of the
Bullish Engulfing Bar pattern. The small body
shows the selling power is protected by the
second body which represents buying power.
GPFX | Gold Trading Guide
CANDLESTICK
PATTERN
Bearish Engullfing
This is how the 'Engulfing Bar' looks on the
chart. If 'Bearish Engulfing Bar' formed, it
tells us that the seller is controlling the
market. When this pattern occurs at the end
of an uptrend, it tells us that the Buyer is
swallowed or controlled by the Seller
showing the signal of trend reversal.
As in the picture, we can see the ‘Bearish
Engulfing’ occurs at the end of the uptrend.
So from here we can predict that the market
is going to make a REVERSAL TREND because
the buyer can't control the market and the
seller tries to push the market to go down.
GPFX | Gold Trading Guide
CANDLESTICK
PATTERN
The Hammer (Pin Bar)
This pattern is created when the open high
and close are almost at the same price.
Another feature is the long lower shadow
which indicates bullish rejection from
buyers and they want to push the market
higher.
Hammer is a reversal candlestick that occurs
at the end of a downtrend. This candle is
formed when the seller forces the market to
go low price after opening but the buyer
pushes the price so that the market closes
higher.
GPFX | Gold Trading Guide
CANDLESTICK
PATTERN
Shooting Star (Bearish Pin Bar)
Occurs when OPEN is low and CLOSE is
almost equal to OPEN. This candle has a
small body and a long upper shadow. It is a
version ‘Bearish Hammer’. When this pattern
occurs in an uptrend, it indicates a ‘Bearish
Reversal Signal '.
The formation of this pattern marks the end
of the uptrend and the beginning pof a
downtrend. This pattern can be used with
support & resistance, supply & demand.
GPFX | Gold Trading Guide
CANDLESTICK
PATTERN
Morning Star
The Morning Star pattern is considered a
Bullish Reversal Pattern, it always occurs at
the bottom of the downtrend and has 3
candlesticks:
- First candle is a decline that indicates that
the seller is still in the market.
- A small second candle indicates the seller
is in control, but they don’t push the market
down.
- Third candle is a bullish candlestick that
gaps up when OPEN and CLOSE above the
middle price point/level at the first, this
candlestick signaling a trend reversal signal.
GPFX | Gold Trading Guide
CANDLESTICK
PATTERN
Evening Star
Considered as a 'Bearish Reversal Pattern'
that usually occurs above uptrend. This
pattern has 3 candlestick patterns:
- First candle is a bullish candle. (Bulls are
still pushing the market higher)
- Second candle is a small candle, it can be
bullish, bearish, doji or another candlestick. It
is uncertain. (Buyers are still in control but
they are not as powerful as they were)
- Third candle is a large bearish candle. In
general, evening star.
This pattern is a bearish version of the
morning star pattern. (Buyer’s domination is
over, and a possible bearish trend reversal is
likely to happen)
GPFX | Gold Trading Guide
CHAPTER
2
GPFX | Gold Trading Guide
CYCLE OF
MARKET
One strategy is to buy after the price moves away
from the resistance level (Buy/Sell on breakout).
This is Wyckoff’s market cycle theory.
Accumulation Phase:
Smart Money (SM) has identified low/ cheap
prices and started collect in large quantities.
Usually the price will be in the state of "sideways"
(horizontal) and this phase takes a long time, can
last for years.
Mark Up Phase:
At this point the currency collected by BC has
started to move up after passing the resistance
stage of a price. During this phase BC will let the
market rise neutrally.
GPFX | Gold Trading Guide
CYCLE OF
MARKET
Distribution Phase
At this phase, BC will find the price is already at
its peak price and began to release their grip. The
bullish momentum will be decrease / disappear
due to currency release activity by them. Usually
buyers who pass by will be stuck here.
Mark Down Phase
After BC released all their currency holdings, the
price will start to go down because there is no
more interest in buying the currency on a large
scale. BC will wait for the price to fall at their
price consider low to regroup. The collection
process will take long -term.
Using this theory, the volume bar indicator is very
important for validation price movements because
they are closely related to "demand" and "supply".
Price movements relative to volume are very
important for knowing the direction of currency
price movement.
*To check volume, use ATR indicator with default
setting.
GPFX | Gold Trading Guide
TYPES OF MARKET
BULLISH Market:
When the Bulls are in power in the market,
people are looking to invest money,
high confidence and risk acceptance are
generally increased.
BEARISH Market:
The declining market follows a downtrend as
investors sell assets which is more risky.
Traders can take advantage of both because
of the Forex market is a two-way market.
GPFX | Gold Trading Guide
HH, HL, LL, LH
Price movements are based on three types of
trends, namely Bullish (uptrend), Bearish
(downtrend) and Sideways. This trend analysis is
one way to determine the trend of a price
movement.
Before determining the trend of a price, the
trader must know what it is referred to in the
terms below.
Higher High (HH): The peak price point (Peak) that
exceeds the peak before.
Lower High (LH): Peak of a price lower than the
peak before.
Lower Low (LL): The lowest point of all before.
Higher Low (HL): Higher than the previous point.
GPFX | Gold Trading Guide
BUY LOW SELL HIGH
We can make a profit when we Buy / Sell a
currency.
Buy at a LOW price.
Sell a t HIGH price.
Sell w hen the price is high, will get a profit if
the price decreases. Will loss if the price
goes up.
Buy when the price is low, will get a profit if
the price goes up. Will loss if the price drops.
GPFX | Gold Trading Guide
BUY LOW SELL HIGH
BULLISH MARKET
You need to find a LOW price to BUY. To
avoid counter-trends.
BEARISH MARKET
You need to find a HIGH price to SELL. To
avoid counter-trend
GPFX | Gold Trading Guide
SUPPORT & RESISTANCE
Support & Resistance (SNR) is a zone.
The simple language is Roof
(Resistance) and Floor (Support). The
strength of SNR can be seen through
the frequency of price return (Retest)
in that zone. If so, it means that the
breakout zone is not strong. Make sure
it is in a fresh zone. Try to do a
backtest to see the previous SNR level.
Support = Zone below the market price
(LOW). Buy at Support!
Resistance = Zone above the market
price (HIGH). Sell a t Resistance!
NOTE: ALWAYS LOOK LEFT FOR THE
NEAREST SNR!
GPFX | Gold Trading Guide
SUPPORT & RESISTANCE
CHARACTERISTIC
PRICE BOUNCE
A red circle indicates a price that
bounced or changed direction at that
level, and a blue circle indicates each
time the price returns to that level it
will survive in Support.
PRICE HOLD
A red circle indicates a price that has
persisted at that level for quite some
time before the market goes down.
Then each time the price returns to the
level it will survive as Resistance.
GPFX | Gold Trading Guide
FINDING SNR
What can we see from the image above to
determine the Support & Resistance?
If the SnR area is always tested, and the
price can't breakout, then the area is strong
and can be called as major Support / major
Resistance area.
Price is currently in the area between major
Support / major Resistance. There must be
an area that will also be a turning point,
can be called as a minor Support / minor
Resistance area.
When the Resistance area is successfully
breakout, then the area has the potential to
become a Support area. Vice versa.
GPFX | Gold Trading Guide
STRONG OR WEAK
SUPPORT & RESISTANCE
How to identify STRONG or WEAK SNR?
1. There is a lot of rejection at the key price
level. LOW or HIGH. (Rejection means there is
a long tail/shadow on the price)
2. Available on BIGGER timeframes - H1, H4,
Daily, Weekly or Monthly.
3. The bigger the timeframe, the stronger the
SNR.
4. STRONG SNR is valid on bigger timeframes
H1 and above.
5. WEAK SNR is at timeframe M30 and below.
6. Price need to breakout SNR (body CLOSE
over SNR areas). If only the shadow breakout,
it cant be consider as a breakout but a
rejection.
GPFX | Gold Trading Guide
STRONG OR WEAK
SUPPORT & RESISTANCE
STRONG SUPPORT DAILY
STRONG RESISTANCE DAILY
GPFX | Gold Trading Guide
STRONG OR WEAK
SUPPORT & RESISTANCE
WEAK SUPPORT H4
WEAK RESISTANCE H1
GPFX | Gold Trading Guide
SUPPORT &
RESISTANCE FLIP
RESISTANCE BECOMES SUPPORT (RBS)
The trend changes from sell to buy. RBS is a
switched resistance level become support
when the price manages to break that level.
SUPPORT BECOMES RESISTANCE (SBR)
The trend changes from buy to sell. SBR is an
switched support level becomes resistance
when the price manages to break that level.
GPFX | Gold Trading Guide
BREAKOUT
BREAKOUT can only occur after the
candlestick body has closed passed
the highest price or the previous lowest
price.
If we want to use the shadow as a
BREAKOUT signal, we need to
go to a lower timeframe until you find a
candlestick who managed to close above
the previous highest price or lowest price.
But, this method is very risky because of the
smaller timeframe used, the
more risk of "false signals".
Important points in identifying BREAKOUT:
1. BREAKOUT occurs after the candlestick
body successfully closes past the price of
previous highest or lowest price.
2. BREAKOUT of previous highest price =
BUY SIGNAL
3. BREAKOUT of previous lowest price =
SELL SIGNAL
GPFX | Gold Trading Guide
BREAKOUT
Why is BREAKOUT important?
Is the initial signal of the next price
direction. When a breakout happens, the
market is telling where the price is going to
go after this.
But, keep in mind that a breakout is not a
confirmation for the market according to
the breakout signal.
Several other things need to be taken into
account as confirmation for determining
whether the breakout is valid or not
depends on the technique used to analyze
the market.
Can or can't BREAKOUT only with shadows?
The answer is NO.
Breakout must occur by means of a close
candlestick body exceeding the highest
price before or the lowest price before.
GPFX | Gold Trading Guide
CHAPTER
3
GPFX | Gold Trading Guide
TRENDLINES
Trend line is the line where we mark the
formation of a trend. Either to predict an
uptrend or downtrend. It includes market
movement.
There are 3 Types of Trends:
1. Uptrend
The upward direction of the market
movement, also known as ‘Bullish’
2. Downtrend
The downward direction of the market
movement, also known as ‘Bearish’
3. Sideways
The direction of horizontal (sideways) market
movement, also known as ranging.
GPFX | Gold Trading Guide
TYPES OF TRENDLINES
Trendline + SNR is divided into 4 types:
1. Trendline SNR
i. Trendline Support (TLS)
ii. Trendline Resistance (TLR)
2. Trendline SNR
i. Trendline Support become Resistance (TLSR)
3. Trendline RBS
i. Trendline Resistance become Support (TLRS)
4. Trendline Breakout
i. Breakout trend either in the TL Support area or
in the TL Resistance area
To identify trends and entry zones, it is necessary
to understand that the trendline divided into 2
types:
A) Major Trendline
- Draw on the Big TF to see the trend. For
example:
i. M30 for scalping
ii. D1 for intraday
iii. MN for swing
B) Minor Trendline
- Draw on the small TF to find the entry. For
example:
i. M1, M5 and M15 for scalping
ii. H1 and H4 for intraday
iii. D1 and Weekly for Swing
GPFX | Gold Trading Guide
HOW TO DRAW & ENTRY
TRENDLINE + SNR
How to draw a trendline:
Pull from HIGH to HIGH for Resistance.
Pull from LOW to LOW for Support.
Draw Body to Body
- High risk and floating will be more.
Draw Shadow to Shadow
- Low risk and floating will be less.
Marking Zone - A specific zone.
The entry method is to wait for the price to
touch the trendline:
In Trendline Resistance for SELL
In Trendline Support for BUY
In Trendline SBR for SELL
In Trendline RBS for BUY
But a candlestick cannot go out of trendline.
If out (BREAKOUT) you need to cutloss / close
order.
NOTE: Valid for all pairs. ALWAYS LOOK THE
NEARST SNR!
GPFX | Gold Trading Guide
MINOR & MAJOR
TRENDLINES
A) Major Trendline
Major Trendline is a trendline drawn on a bigger
timeframe to see main direction.
B) Minor Trendline
Minor Trendline is a trendline drawn on a smaller
timeframe to find a sharp entry and less floating.
Step by Step to draw Trendline!
Step 1 (Major Trendline)
- Draw trendline on bigger Timeframe according to
the Scalping entry method, Intraday or Swing.
Example:
Scalping: Draw on Timeframe M30 or M15.
Intraday: Draw on the Daily Timeframe.
Swing: Draw on Weekly or Monthly.
Step 2 (Minor Trendline)
- Draw the trendline on the small Timeframe to find
the entry by way of Scalping, Intraday or Swing entry.
Example:
Scalping: Draw on Timeframe M1 or M5
Intraday: Draw on H1.
Swing: Draw on Daily.
Third (SNR)
- After drawing everything. Wait in the Trendline Zone
and SnR for entry
GPFX | Gold Trading Guide
TRENDLINE AND SNR FLIP
The RBS trendline is a trendline for price to
retest/retrace after breakout.
How to draw this trendline?
You need to draw from HIGH to HIGH
1. RED Line - Trendline Resistance
2. BLUE box - Retest/Retrace area
3. The RED Line is the Resistance Trendline that
changes to Support after the price breakout.
4. Entry area is in the BLUE Box where the price
touches again the Trendline.
SBR trendline is a trendline for price to retest/retrace
after breakout.
How to draw this trendline?
You need to draw from LOW to LOW
1. BLUE Line-Trendline Support
2. BLUE box-Retest/Retrace area
3. The BLUE Line is the Trendline Support changed to
Resistance after the price breakout.
4. Entry area is in the BLUE Box where the price
touches again the Trendline.
GPFX | Gold Trading Guide
TRENDLINES BREAKOUT
A trendline breakout occurs when a
trendline is underlined, broken by
market price. when a breakout occurs, then
the market will change trend.
If the market is UPTREND and there is a
breakout, the market will change to
DOWNTREND.
If the market is DOWNTREND and there is a
breakout, the market will change to
UPTREND.
GPFX | Gold Trading Guide
TRENDLINES BREAKOUT
There are 3 Trendline breakout probabilities:
BREAKOUT & RETEST
CLEAN BREAKOUT
FALSE BREAKOUT
GPFX | Gold Trading Guide
CHART PATTERN
Chart Patterns are an important element in technical
analysis. Every investor and traders must know the
science of Chart Pattern as a guide for them to
analysis the market price movements.
Chart Pattern is a pattern formed from price
movements and can helps us to determine the
direction or direction of the price next. This price
pattern is guided by the previous price.
CONTINUATION PATTERN signals where the market
price will be continue to rise according to the current
price trend.
For example when the stock price of a company
moves in uptrend condition, it will make a correction /
retracement.
During this retracement, the Chart Pattern will be
formed.
If what is formed is a Continuation Pattern, then
the market price will continue to rise according to the
trend before.
GPFX | Gold Trading Guide
CHART PATTERN
REVERSAL PATTERN gives a signal that can tell us that
the market is in a sluggish state or the momentum is
no longer strong and could likely change direction
from uptrend to downtrend or vice versa.
For pattern reversal, the best way to use it is with a
combination of Support & Resistance.
GPFX | Gold Trading Guide
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