okay so now before i share with you my own trading strategy and look at some real world trading examples i think it's important right to take a step back and actually do a recap to all the things that you've learned up to this point so let's get started so number one right the first thing about this technical analysis training is to share with you right market structure and this is important because if you can define the market structure then you know what to do if the market is in an uptrend you know you should be looking for buying opportunities not selling because you don't want to be trading against the trend you want to be trading along the path of this resistance to be trading in the direction of the trend so that's what market structure does it helps you define what's the trend so you can trade in the direction of it so if the market is in a downtrend then of course you look for selling opportunities so next thing we covered is area of value and this is important because just because the market is in an uptrend doesn't mean you want to blindly hit the buy button because the market could be overbought it could be getting ready to make a pullback or a complete reversal so this is why we want to be trading from an area of value this could be things like support and resistance or moving average so for example if the market is in an uptrend we want to be looking to trade at support around support area then this brings us to the third section right entry trigger so once the market is in an uptrend it's at an area of value then we look for a specific price pattern called an entry trigger to tell us when exactly to enter a trade the entry trigger gives us some uh trigger right to tell us that hey you know at this point the buyers they are in control they are starting to you know turn up the heat right it's a good time right to now enter our trade and to to time our entry so once we have the entry trigger covered we then look to cover our exits right what if the market moves against us where do we cut our loss what if the market moves in our favor where do we take profits and that could be you know depending on whether you want to be a swing trader or trend follower so we covered all these different techniques so in essence right what you're trying to do as a technical trader as uh there are many ways to this but this approach that i'm sharing with you is to trade with the trend so again number one let's say we have an uptrend series of higher highs and higher lows next thing we look for is for the market to come into an area of value so in this case we've let's say the market come into this previous resistance which becomes a port the third thing we look for is a valid entry trigger so let's say we have something like a hammer right to tell us that the buyers are in control and we can look to enter on the next candle open so once we have it dead right we want to cover our downside and to know where to exit the trade you know if the market moves in our favor so that's where we set our stop loss which is beyond the price structure somewhere here and for targets could be just before this swing high over here so at this point you can see that you know we have defined the market condition that we are trading we know when to enter we know when to exit if we are wrong and we know where to exit if we are right so if you think about this this entire training on technical analysis is sharing with you this trading strategy call it's like a formula i call it m a e e the may formula and this trading strategy is not cast in stone it is robust because you don't have to just trade up trend you can trade downtrend you don't just have to use support resistance as your area of value you can use things like moving average you don't have to use candlestick patterns right for entry trigger i share with you the moving average break that you can use as well you don't have to be a swing trader if you don't want to you can also be a trend follower you know to write massive trends so you can see that this trading strategy it's robust in a sense that you know you can tweak it right to your needs and of course there are more techniques and concepts that you can use as a trader just that i share with you over here are the ones that i personally use right of course if you want to use different methods to define your entry trigger like you know chart patterns and whatnot it's entirely up to you so right now what i'm going to do is to share with you some real world trading examples and see how this may formula to see how this trading strategy can help you profit in bull and bear markets so let's get started so first one here is uh the chart of canadian against the japanese yen this is the daily time frame so remember the may formula so first thing we are looking for number one is m what is the market structure uptrend downtrend or range so i'm sure you can agree with me that this market is in an uptrend right a series of higher highs and higher lows so uptrend so once you know that the trend is up do you want to be buying or selling i'm sure you can agree that you want to be a buyer so where do you want to trade from where do you want to buy from an area of value and in this case the price is at this area of value right at this support so let's call it the area of value is that support entry trigger do we have a valid entry trigger that tells us the buyers are temporarily in control and the market could hit higher and in this case we have a bullish engulfing pattern on this candle here so i'll call this uh yes call it be bullish engulfing pattern what about exits right do you know where to exit if you are wrong so if we are wrong right i want to set my stop loss one atr below this low which is somewhere about here as for target i can set it right just before this swing high which is possibly around the 88 price point so you can see at this point we have covered the market condition that we are trading the aerial valley we know where to enter from we know when exactly to enter our trade and when exactly to exit right if the market moves in our favor or against us so i'm going to go one step further and share with you know where exactly to set your stop loss and target so just to do a quick recap when we set stop loss right for me personally it's always you know one atr below the uh area of value so this is the extreme low in this area of value i find out what is this value and minus one atr atr stands for average true range so you can see over here this atr value currently is about 0.7 about 70 pips and this low of this candle right from what i last checked this is about 85.42 so i'm going to take the this low over here okay 85 0.42 and i minus 70 pips that gives me okay trusty calculator is here 85.42 minus 0.7 that gives me 84.72 that is my stop-loss level on this trade so let's say the market you know open on the next candle open okay over here i will let me just share with you where our you know set my entry stops and exits okay so let's call this entry which is the open of the next candle i'll change this to let's say green okay so that's my entry point now what about my stop loss we just calculated it your stop loss will be at 84.72 let's put it to rate okay let me just change this to 84.72 that is my stop loss okay and let's say we want to go with a swing trading approach we want to exit right and capture just one move in this market so for this one here we can exit just before this recent swing high i'll put it let's say around the 88 price point let's set this to blue okay and there you have it right so from this strategy right you know exactly where to enter where is your stop loss and where to take profit if the market moves in your favor and you know you're trading in the direction of the trend from an area of value i hope this makes sense now let's move on to the another example okay now let's have a look at example two right and see how this trading strategy right can be tweaked right using the techniques that i've just shared with you so again once again applying the may formula okay market structure this one here again it's in an uptrend area of value you can see that this right now the price has re-test previous support i mean sorry previous resistance resistance resistance resistance which could become support okay so we have this over here and an entry trigger okay do we have a valid entry trigger to go along so let me share with you instead of let's say using bullish reversal candlestick patterns right we can also use the moving average break technique that i've shared with you so let me just overlay with the five period moving average as you can see over here and notice that this candle has break and close above the five period moving average this candle here has break and close above the five period moving average so we have a valid entry trigger to go along what about exits again we can set our stop loss one atr below this low and target just before this swing high over here so let me again share with you how to set your stop loss and target so you can see i know how where exactly is your entry stops and target so let's say we enter the next candle open it will be over here okay this candle open let's change this to grid let's say our stop is uh 180r below this low so find out what is the atr value at this point it's about 53 okay let's looking let's get let's say on this candle here the atr value is about 53.5 find out what is this low the low price over here it's one one one oh so quite simple you just take one this extreme low over here is one one one oh minus 53.5 oh sorry minus 53.5 okay one one one zero minus 53.5 and that will give you one zero five six point five one zero five six point five so what you're gonna do is to set your stop loss at one zero five six point five and let me just share with you over here say stop-loss is rate and the level that we are used is at one zero five six point five there you have it our stop-loss what about target so again let's say we are going to go with the swing trading approach we want to capture one move and for a swing trader you usually want to exit your trade before opposing pressure comes in so where might opposing pressure come in well you can see that there is this swing high over here so it would be prudent conv conservative right to exit before this high over here so i would say you know a good level will be somewhere about here one two nine three one two nine five okay let's change this to blue okay so let's let's say uh one two nine one two nine four okay and there you have it right so in the game in this example you know where exactly to enter your trade so let's let's do a quick recap market structure is up we are trading from this area of value where previous resistance becomes support we have a moving average break as our entry trigger so we enter here on the next candle open which is on this candle here we enter here our stop loss is one atr below this lows which is here and our target right is just before this most recent swing height which is this blue line over here and once again right i'm using the same strategy that i've shared with you the main formula the only difference is right we have changed our technique right for the entry trigger we use the moving average break to enter our trade so now let's move on and look at another example okay so example three right this time round let's look at a downtrend shall we so we can see that you can make money in bull markets and even bear market so in this case this time around you can see this market dollar against the chinese un this one is on the eight hour time frame let's apply the may formula and you know see how we can treat this market so again market structure you can see this time around it's in a downtrend okay so market structure is now area of value okay so this one is uh interesting stuff because if you look at this area of value you will realize that hey the market has re-test previous resist support support support which became resistance resistance and possibly this area of resistance again so area of value and resistance and another thing is if you overlay with the 50 period moving average you would realize that this market also seems to be respecting the 50 period moving average right it tested a number of times you know somewhere here although it exited by quite a little bit right but i was still considering this you know the moving average as an area and it had a bounce right a number of times here here here here and now we're back here again so you can see that the 50 period moving average is also acting as a confluence right at the area of value so your area of value is kind of stacked right now you have the resistance and 50 period moving average so that makes the area even more powerful then what about entry trigger so if you look at this entry trigger we have something a bearish price rejection it's not a shooting star it's not a bearish engulfing pattern the exact term is called a dragonfly doji but again the name is not important what's important is that you can see right that the sellers are in control as you saw the price right being rejected higher at one point in time right the buyers were in control and the price was trading near these highs and then the sellers took control and pushed the price down lower and back to the opening price and closing right near the lows of the day so this to me is a bearish price rejection okay if you are not sure about it you can you know wait a couple of days and see and watch the price action and you will realize that what happened next all right was that this market is bullish and then followed by a bearish engulfing pattern over here so if this one you know made you undecisive right this one should have sealed the deal because this tells you that the buyers the sellers are in control it's a bearish engulfing pattern the body of this candle has engulfed the body of the previous day candle sellers closing near the lows of the day okay so this right would uh serve as an entry trigger for you to go short on the next day open so let's say you go shot on the next day open which is let's say here okay shot here at the opening price let me just change this to uh green again to be consistent right green for our entry as for stop loss right i am going to be quick about this i'm not going to go through the entire atr calculation because you should be a pro by now so i would say your stop loss right would possibly be one atr above this high somewhere about here is your stop loss okay let's call it s and your target can be just before the swing low so let's say this swing low you're referencing this could be your target okay so this let's call it t the green over here this level here is your entry let's call it e okay so if your entry price you know where to set your stop loss and this is your target so now let's move on to another example okay so for this one here is the chart of aussie against the swiss franc this is the eight hour time frame so let me know again walk you through the trading strategy market structure you can see that this market structure is in an uptrend so market structure uptrend what about area of value so once again right this is at an area of support and on top of it if you overlay with the 50 period moving average you can see that it tested once on the 50ma twice and then a third time over here and now we're back here again so you can see that this again is a powerful area it has the confluence of support and the 50 period moving average which is respected by this market and on this time frame what about entry trigger we can see a bullish engulfing pattern over here and if you want to go with a candlestick pattern as your entry trigger you can use the moving average break in this case the five period moving average you can see the price also break and close above the five period moving average so that's another valid entry trigger depending which one you want to use whether you go with a moving average break or a bullish reversal candlestick pattern both right will give you the signal to go low so stop loss again simple stuff right we will set our stop loss one atr below this low so let's say we enter a next candle open which is here stop loss one atr below this low probably somewhere here as for target before this area of resistance possibly somewhere about here okay so again we have our entry we have our stop loss and without we have our target and in this case right this trade pretty much when in our favor and then collapse and hit our stop-loss so you can see this part here it went in our favor and then collapse and hit our stop-loss and the message behind this is to share with you that you know when you trade all the stars can align right and that kid that trade can still end up being a loser so you have to be prepared for this you have to practice sound risk management don't go all in and you know risk 50 of your account 100 of your account on one trade because these things can and do happen so be prepared for it now moving on next example okay so another example this one here is the trait of copper so i want to say the may formula but you probably get sick and tired of it right now me me irritating me so so yeah the may formula and again let's have a look at this right market structure no-brainer this is in an uptrend okay we both get it area of value so in this case uh this one here you can see the price coming slightly into this swing low the support fair enough and on top of it you also have the 50 period moving average as what i'll show you right now so you can see over here the market has tested the 50ma once twice three times and now back here for fourth time as well as well as having this area of support then entry trigger okay so let's say we go with the candlestick pattern we have a bullish hammer that is formed on this candle here okay market close higher for the day so we have our market structure we have our area of value we have our entry trigger what about exits where is our stops and targets so let's say stop loss again one atr below this low let me just walk you through okay so so what's gonna happen is that you will enter on the next day open over here stop loss one atr below the low let's say somewhere here so this is s and this is uh e entry okay i'm not gonna work out with you where to set the exact stop loss level because you should be a pro by now i did a number of examples so go through the earlier training if you forgot about it and now what about target what if the market moves in our favor where do we exit our trade so if you recall right i shared with you two techniques swing trading and trend following so earlier examples has been solely focused on swing trading so now what if we want to write a trend so what you can do is you can use a moving average like the 50 period moving average right to trail your stop loss so this means right only when the market breaks and close below the 50 period moving average then you exit your trade so you can see for this example over here the market uh did uh went up higher right and hasn't closed below your 50 period moving average well in fact it did right it did close you know the 50 ma here at this point okay but remember your initial stop loss is actually 180 below this load which is somewhere here so your initial stop loss is not hit so of course right for me i will add here to the original stop loss rather than exiting the trade prematurely and once it moves in your favor right you can start trailing your stop loss using the 50 period moving average until now uh the market is still moving in your favor so of course this is a cherry pick example but it's to illustrate to you how you can actually you know trail your stop-loss to the right massive trends so in this case let's say what happened now is that let's say the market suddenly like collapsed and you know breaks and close below this uh 50 period moving average which is this blue line over here then you'll exit your trade the next day so this is how you trail your stop loss to write trends in the market now moving on to another example okay so this one here is a stock trading example and the reason why i'm sharing this with you is to sh to let you know right there the concepts the strategies and techniques that you've learned can be applied right across different markets forex stocks commodities futures etc so this one this stock here is uh fcx the thicker so again same concept market structure is up uptrend price has retraced into this area of value right previous resistance which became support previous resistance now becomes support support and back here once again let's say our entry trigger we go with a moving average break so let's pull out the five period moving average and you can see that this candle over here has break and close above the five period moving average so you enter on the next day open so next day open market here so this candle you enter on the next day open over here stop loss 1atr below this low which is somewhere about here and let's say this time around you want to write a trend and you decide to write a longer term trend so what can you do you can trail your stop loss using a 100 period moving average so let's see what happens so let's say the market moved in your favor in this case of course because i cherry-picked this chart and and you overlay with the 100 period moving average so you can see over here right the price has is still above the 100 period moving average so only right when the price breaks let's say breaks and close below this 100 period moving average only then will you exit this trade if not you will hold this long position right till the trend right hits your trailing stop loss so of course you can imagine right as a trend follower in this case it's a long term trend following a stop loss right you will be in this rate for a much longer period compared to someone who is trying to capture a short-term trend or someone who is trying to capture a swing so again something that you have to be prepared for and finally all right let me share with you a few examples of trade that i do not want to take okay now let's have a look at this chart and find out why this is a trade there or rather this is a market that i'm not interested in trading right now so again using the same formula market structure it's up area of value it's somewhere about here okay around the 42 price point is the price at this area of value not quite so let's give it one x all right no entry trigger do we have a valid entry trigger at this point we have kind of like a like you know a bearish looking candle right i am interested to buy i don't want a bearish reversal candlestick pattern so entry trigger is no as well so if you don't have an area of value that you're trading from if you don't have any valid entry trigger to enter a trade you have no business trading so this is a trade it's a no-go and let's move on to something else so usually it's gonna be very quick right once you realize that price is not an area of value you can skip it all together you don't even need to bother whether there's a valid entry trigger or not because if it's not an area of value why do you want to bother you know taking such sub-optimal trade so quickly you can move on into something else so if you look at this chart another example pound against the japanese yen you can see this one here market structure is up area of value is here at this point the price is kind of like in the middle of nowhere it's not near any area of value and i have no business or i have no interest wanting to trade this because again the price is not at an area of value why do i want to force a trade yes it's in an uptrend but from the looks of things right it's currently you know seems to be wanting to make a pullback right and to reverse lower so if i were to buy right now i'm putting myself in such you know unfavorable you know situation does it make sense hey hey what's up my friend so at this point right you have learned a lot about technical analysis we talk about things like market structure support resistance entry trigger stops target swing trading trend following etc and to be honest right all this will give you a strong foundation but we are just you know scratching the surface there's a lot more that you can dive deeper right if you want to be proficient to master technical analysis and that's what you want right then i recommend right you get a copy of this book over here it's called price action trading secrets i'll put the link somewhere below this video or you can go directly to this link over here price action trading secrets.com this is a 140 page physical color trading book where i'll share with you right price action trading strategies and techniques right that you 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