Controller FX — an initiative founded by full-time trader & online streamer Don Vo to bridge the gap between struggle and success for new traders in pursuit of more time, freedom and the bounties life has to offer.
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Welcome to Controller FX!
Forex, or Foreign Exchange, refers to the global financial market that allows individuals and businesses to trade currencies. It is the largest financial market in the world, with a daily trade volume of around $6 trillion.
Forex Trading: Understanding the Global Currency Market
First thing you need to understand are candles. Candles make up charts. Each candle is a specific unit in time. Charting tools such as Trading View allow you to view candles for many timeframes. You can look at a candle on the weekly, daily, 4 hour, 1 hour, 30 minute, 15 min, 5 min, etc etc.
Technical Analysis
The thin sticks above and below the main body of the candle are referred to as ‘wicks’. The upper stick,or commonly referred to as the top wick, is the highest point that the candle reached during that time frame. The lower shadow or bottom wick is the inverse. Wicks act in two ways:
The unit used to measure movement of candles is called a PIP. A “Pip" is an acronym for percentage in point or price interest point, the formula for a PIP is Pip value = (0.0001 x trade amount) / spot price.
Top down analysis is a method of analyzing charts by working your way down from the higher time frames. By first looking at the bigger picture of price direction, (the overall trend) and then zooming down to the smaller time frames to find exact areas for ideal setups.
A range is an area between a support level and a resistance level. In a range, you’ll find price action bouncing up and down before breaking above or below to the next range.
HL = Higher Low, LL = Lower Low
This and the “setups vs entries” section are the most important sections of the course. Pay attention. We have three fundamental market structure movements which almost all of ControllerFX is based on. Breakouts, fakeouts, retests, (rejection?)
A range is quite simply the area between a support & resistance.
Wick fills are when a previous candle's wick’s get “retested” or “filled”. Now that you understand how to read candles backwards, it’s easy to see why wicks get filled more often than not.
The optimal zones for trades
You already know a little bit about trends and how the market moves in terms of HH,HL,LH & LL. The market is in a constant cycle of either trending upwards, downwards or consolidating/ranging.
This is where ControllerFX sets itself apart and innovates. Although in a bullish trend having the previous low’s break is an indication of trend reversal.
When we refer to volume, we are talking about how much a currency pair is traded during a particular time.
Aggro Days: trading days characterized by high trading volume and an abundance of trading opportunities due to the increase of breakouts.
You have already learned this in the Market structure - Breakouts, Fakeouts and Retests. Refer to these if you need a refresher.
Taking Trades
Finally the fun stuff. How to take trade entries.
All this time you’ve been hearing of top and bottom wicks. Waiting for a steep wick waiting for a small wick. Do you wonder why?
Roughly 80% of candles will form a bottom wick and/or a top wick at some point during the forming period — that’s 4 in 5 every candles!
HTF shows clean traffic, lower timeframes show minor resistances
The most suitable currency pairs for traders in each region:
Fundamental Analysis & Sessions
Economic events and data releases vary in impact, so you’ll want to keep your eye on the economic calendar for mainly high impact (‘red folder’) news whenever possible. High impact news can swing the movement of XAUUSD by up to 300 pips in mere hours, if not minutes.
Profits are never just profits.
Psychology
When it comes down to it, the reason 80% of traders lose the majority of their capital is due to a lack of emotional control, which leads to poor decision-making. One poor decision can quickly spiral into ten and a blown account.
First off, and this is especially for the inexperienced, try to isolate yourself from the crowd during your dedicated trading period. External noise is mostly a disturbance — and this not only applies in the physical world, but in the virtual world too.
“If you fail to plan, you are planning to fail.” — Benjamin Franklin
You can’t expect the market to give you 100 pip runners on a daily basis.
When trading, choosing the right broker is key. Here are things you should be looking out for when choosing the right broker.
Choosing the Right Broker
When you set up a trading account with a broker, you should receive a set of MT5 login credentials to your email inbox. To get the two platforms connected, you can do either one of two things:
Goodbye, and see you tomorrow! By now, you should be well on your way to taking your first trades, and honing your trading skills. It's important to note that this course is an ongoing endeavor. We are committed to continuously updating and revising it to ensure it remains the best it can ever be, just like everything we do here at CFX.
See You Tomorrow!
