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

 GOLDEN PIPS FX

GOLD
TRADING
GUIDE

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