📚 Revision Cards
Key concepts and essential formulas for each module
Market Types
Essential basics
- Forex - Currency market, 24h/5d, major pairs (EUR/USD, GBP/USD)
- Indices - Nasdaq, S&P500, Dow Jones - reflect the economy
- Commodities - Gold (XAU/USD), Oil - safe haven assets
- Crypto - BTC, ETH - high volatility, 24h/7d
Trading Sessions
Important hours (UTC)
| Session | Hours (UTC) | Characteristics |
|---|---|---|
| 🌏 Asia | 00:00 - 09:00 | Low volatility, ranges |
| 🌍 London | 08:00 - 17:00 | High volatility, breakouts |
| 🌎 New York | 13:00 - 22:00 | Max volume, strong moves |
Kill Zones: London Open (08:00-11:00) and NY Open (13:00-16:00) = best trading times
Candlestick Types
Reading candles
- Bullish Engulfing - Green body engulfs previous red → bullish reversal
- Bearish Engulfing - Red body engulfs previous green → bearish reversal
- Doji - Indecision, very small body → wait for confirmation
- Pin Bar / Hammer - Long wick = price rejection → likely reversal
- Marubozu - No wicks = strong momentum
Timeframes
Multi-timeframe analysis
| Timeframe | Usage |
|---|---|
| Monthly/Weekly | Long-term directional bias |
| Daily/4H | Main structure, key zones |
| 1H/15M | Confirmation, entry timing |
| 5M/1M | Precise execution |
Golden Rule: Always analyze from highest to lowest timeframe (Top-Down Analysis)
Market Structure
HH, HL, LH, LL
Uptrend (Bullish): Series of Higher Highs (HH) and Higher Lows (HL)
Downtrend (Bearish): Series of Lower Highs (LH) and Lower Lows (LL)
- Identify the last HH/LL to determine the trend
- A BOS (Break of Structure) confirms continuation
- A CHoCH (Change of Character) signals potential reversal
Break of Structure (BOS)
Trend continuation
- Bullish BOS: Price breaks the last Higher High
- Bearish BOS: Price breaks the last Lower Low
- Confirms that the current trend continues
- Look for entries on the pullback after BOS
Uptrend: Price > Last HH = Bullish BOS ✓
Downtrend: Price < Last LL = Bearish BOS ✓
Change of Character (CHoCH)
Trend reversal
- Bullish CHoCH: In downtrend, price breaks the last LH
- Bearish CHoCH: In uptrend, price breaks the last HL
- First sign of trend change
- Wait for confirmation with a BOS in the new direction
A CHoCH alone is NOT enough to enter. Wait for confirmation!
Key Structure Points
Swing Points
- Swing High: High point with lower highs on each side
- Swing Low: Low point with higher lows on each side
- Strong High/Low: Created a BOS - confirmed trend
- Weak High/Low: Not yet tested - potential target
Structure Rules
- Never trade against HTF (Higher Timeframe) structure
- Weak Highs/Lows are targets, not bounce zones
- Wait for candle close to confirm a break
Order Blocks (OB)
Institutional zones
Order Block: The last opposite candle before an impulsive move that creates a BOS
- Bullish OB: Last bearish candle before bullish impulse
- Bearish OB: Last bullish candle before bearish impulse
- Entry zone: 50% of the OB (Equilibrium)
- Invalid if price completely passes through the OB
Valid OB = Opposite Candle + BOS + Unmitigated
Fair Value Gaps (FVG)
Imbalances
FVG: Gap between candle 1's wick and candle 3's wick (candle 2 doesn't cover them)
- Bullish FVG: Gap left during a fast bullish move
- Bearish FVG: Gap left during a fast bearish move
- Price tends to come back to "fill" the FVG
- 50% of FVG = optimal entry zone (CE - Consequent Encroachment)
FVG + OB in the same zone = Very strong confluence
Liquidity
Buy Side & Sell Side
| Type | Location | Contains |
|---|---|---|
| Buy Side Liquidity (BSL) | Above highs | Short stop-losses + Buy stops |
| Sell Side Liquidity (SSL) | Below lows | Long stop-losses + Sell stops |
Key Concept
- Smart Money hunts liquidity BEFORE moving
- Equal Highs/Lows = Obvious liquidity pools
- Liquidity Sweep = Potential entry signal
Premium & Discount
Optimal buy/sell zones
Equilibrium (50%) = (Swing High + Swing Low) / 2
Premium = Above 50% → Sell zone
Discount = Below 50% → Buy zone
- Buy: In Discount zone (0-50%) during uptrend
- Sell: In Premium zone (50-100%) during downtrend
- Optimal Trade Entry (OTE): 62-79% Fibonacci retracement
Breaker Blocks
Inverted OBs
Breaker Block: An Order Block that failed (price passed through it) and becomes an inverse support/resistance zone
- A broken Bullish OB becomes a Bearish Breaker
- A broken Bearish OB becomes a Bullish Breaker
- More reliable than the original OB as it proved the trend change
Mitigation
Return to zones
- Mitigated: Price has returned to the zone → less likely to react again
- Unmitigated: Fresh zone, never retested → high probability of reaction
- Prefer unmitigated zones for entries
- A zone can be partially mitigated (50%)
An OB mitigated multiple times loses validity with each touch
Position Sizing
Calculating position size
Lot Size = (Capital × Risk%) / (SL in pips × Pip Value)Example:
Capital = $10,000
Risk = 1% = $100
SL = 20 pips
Pip Value = $10/lotLot Size = $100 / (20 × $10) = 0.50 lots
Golden Rules
- Never risk more than 1-2% per trade
- Calculate BEFORE entering a position
- Adjust size, not stop-loss
Risk:Reward Ratio
R:R or RRR
R:R = TP Distance / SL DistanceExample:
Entry = 100
SL = 95 (5 points risk)
TP = 115 (15 points profit)R:R = 15/5 = 1:3
| R:R | Required Win Rate for BE |
|---|---|
| 1:1 | 50% |
| 1:2 | 33% |
| 1:3 | 25% |
| 1:4 | 20% |
Minimum recommended: 1:2 R:R
Expectancy
Mathematical expectation
Expectancy = (Win% × Avg Win) - (Loss% × Avg Loss)Example:
Win Rate = 60%
Avg Win = $150
Avg Loss = $100E = (0.60 × $150) - (0.40 × $100)
E = $90 - $40 = +$50 per trade
- Positive expectancy = profitable strategy long term
- Negative expectancy = mathematically losing
- Calculate over minimum 100 trades
Drawdown & Recovery
Losses and recovery
| Drawdown | Gain Needed to Recover |
|---|---|
| -10% | +11% |
| -20% | +25% |
| -30% | +43% |
| -50% | +100% |
| -75% | +300% |
The larger the drawdown, the harder it is to recover. Protect your capital!
Management Rules
Money Management
Strict Rules
- Max 1-2% risk per trade
- Max 5-6% total open risk
- Max 2-3 consecutive losing trades → pause
- Max 5% daily loss → stop trading
- Max 10% weekly loss → review
Compounding: Capital × (1 + R%)^n$10,000 × (1.05)^12 = $17,959
(+5%/month for 12 months = +79.6%)
The 3 Pillars of Trading
Strategy, Risk, Psychology
- Strategy (30%): Analysis method and entry/exit rules
- Risk Management (30%): Capital and position management
- Psychology (40%): Discipline, emotions, mindset
Psychology is the #1 factor that differentiates profitable traders from losers
FOMO & Emotions
Emotional traps
| Emotion | Danger | Solution |
|---|---|---|
| FOMO | Entering without setup | "There's always another trade" |
| Revenge Trading | Overtrading after loss | Mandatory break |
| Greed | Not taking profit | Strict exit plan |
| Fear | Exiting too early | Trust the plan |
Process vs Outcome
Winning mindset
Process-Oriented: Focus on perfect plan execution, not individual trade results
- A losing trade with good setup = Good execution ✓
- A winning trade without setup = Bad execution ✗
- Judge over 50-100 trades, not 1
- Short-term results are random
Trading Journal
Tracking and improvement
Elements to Record
- Date, Pair, Timeframe
- Setup used (OB, FVG, etc.)
- Entry, SL, TP, R:R
- Screenshot before/after
- Emotional state (1-10)
- Plan followed (yes/no)
- Lessons learned
Trading Routine
Daily checklist
- Pre-session: HTF analysis, mark zones, written plan
- Mental check: Am I calm? Well-rested? Focused?
- During: Follow the plan, no impulsive decisions
- Post-session: Journal, review, lessons
- Weekly: Stats analysis, adjustments
If mental state < 7/10 → Don't trade that day
Realistic Expectations
Reasonable goals
| Metric | Unrealistic | Realistic |
|---|---|---|
| Monthly Return | 50-100% | 3-10% |
| Win Rate | 90%+ | 40-60% |
| Trades/day | 10+ | 1-3 |
| Time to profitability | 1-3 months | 1-2 years |
OTE - Optimal Trade Entry
Optimal Fibonacci zone
OTE Zone = 61.8% - 78.6% Fibonacci RetracementSweet Spot = 70.5% (middle of OTE zone)
- Draw Fib from swing low to swing high (or reverse)
- Wait for price to retrace into the 61.8-78.6% zone
- Look for confirmation (OB, FVG, reaction)
- SL below/above the swing low/high
Liquidity Sweep + OB
High probability model
- Step 1: Identify liquidity (EQH, EQL, obvious highs/lows)
- Step 2: Wait for the liquidity sweep
- Step 3: Look for CHoCH on LTF
- Step 4: Enter on the OB created after CHoCH
- SL: Beyond the sweep
- TP: Opposite liquidity
FVG Entry Model
Imbalance entry
- Setup: FVG created by impulsive move with BOS
- Entry: Limit order at 50% of FVG (CE)
- SL: Below/above the complete FVG
- TP: Opposite structure or liquidity
FVG must be in an appropriate Premium/Discount zone
AMD Model
Accumulation, Manipulation, Distribution
| Phase | Description | Action |
|---|---|---|
| Accumulation | Range, consolidation (Asia) | Identify extremes |
| Manipulation | Fake breakout, sweep | Wait for the trap |
| Distribution | True directional move | Enter with the flow |
Judas Swing: The manipulation move that traps traders before the real move
Breaker + FVG Confluence
High probability setup
- Breaker Block = Failed and inverted OB
- Look for an FVG that overlaps with the Breaker
- Entry at the confluence zone
- More reliable due to double confirmation
Confluence = Breaker + FVG + Discount/Premium Zone
= A+ Setup (very high probability)
Entry Checklist
Before each trade
All these elements must be present:
- ☐ Clear HTF bias (Daily/4H)
- ☐ Aligned structure (BOS confirmed)
- ☐ Value zone (OB/FVG in Discount/Premium)
- ☐ Liquidity taken or to target
- ☐ LTF confirmation (CHoCH, reaction)
- ☐ Minimum 1:2 R:R
- ☐ Active Kill Zone
Delta Basics
Buy/Sell difference
Delta = Buying Volume - Selling VolumePositive Delta = More aggressive buys
Negative Delta = More aggressive sells
- Candle UP + Positive Delta: Healthy move, likely continuation
- Candle UP + Negative Delta: ⚠️ Divergence, possible reversal
- Candle DOWN + Positive Delta: ⚠️ Divergence, possible reversal
- Candle DOWN + Negative Delta: Healthy move, likely continuation
Cumulative Delta (CVD)
Cumulative delta
CVD: Cumulative sum of delta over time, shows overall buying/selling pressure
| Price | CVD | Signal |
|---|---|---|
| ↑ Rising | ↑ Rising | Healthy trend ✓ |
| ↑ Rising | ↓ Falling | Bearish divergence ⚠️ |
| ↓ Falling | ↓ Falling | Healthy trend ✓ |
| ↓ Falling | ↑ Rising | Bullish divergence ⚠️ |
Footprint Charts
Reading footprints
Format: BID × ASK
Example: 500 × 2000Delta at this level = 2000 - 500 = +1500
(Dominant buying pressure)
- Imbalance: Ratio >300% between bid/ask = directional force
- Stacked Imbalances: 3+ consecutive imbalances = strong zone
- Absorption: Large volume without price movement
Volume Profile
Volume distribution
- POC (Point of Control): Price with most volume = fair value
- VAH (Value Area High): Upper limit of value area (70%)
- VAL (Value Area Low): Lower limit of value area (70%)
- HVN (High Volume Node): Consolidation zone, support/resistance
- LVN (Low Volume Node): Low interest zone, price moves quickly
Price tends to return to POC (mean reversion)
Order Book / DOM
Depth of Market
- Bid: Pending buy orders (support)
- Ask: Pending sell orders (resistance)
- Spoofing: Fake orders to manipulate (illegal but exists)
- Iceberg Orders: Hidden large orders, only part visible
- Absorption: Large limit orders that "absorb" market orders
Order Flow Tools
Recommended platforms
| Platform | Specialty |
|---|---|
| Sierra Chart | Advanced footprint, customizable |
| ATAS | Cluster charts, analytics |
| Bookmap | DOM visualization, heatmaps |
| Quantower | Multi-asset, volume profile |
| Exocharts | Crypto specialized |
Demo to Live Transition
Progression steps
Criteria Before Going Live
- ☐ 3 consecutive profitable months in demo
- ☐ Minimum 100 journaled trades
- ☐ Stable win rate (40%+ with good R:R)
- ☐ Max drawdown controlled (<15%)
- ☐ Risk management rules followed
- ☐ Emotions under control
Starting Capital
Recommendations
- Use ONLY money you can afford to lose
- Start small: $500-$2000 recommended
- Micro-lots (0.01) to limit risk
- Increase gradually with profits
Never borrow to trade. Never trade rent money.
Trading Plan
Mandatory document
Plan Elements
- Pairs/instruments traded
- Timeframes used
- Authorized setups (with precise criteria)
- Entry rules (checklist)
- Exit rules (TP, SL, trailing)
- Risk per trade (1-2%)
- Max trades per day/week
- Trading hours (Kill Zones)
- Rules if losing streak
Common Mistakes
Absolutely avoid
- Overtrading: Too many trades = too many fees + errors
- No SL: "It will come back" → account blow up
- Moving SL: Hope ≠ Strategy
- Excessive size: 5-10% per trade = gambling
- Revenge trading: After a loss → take a break
- Ignoring the plan: The plan exists for a reason
- Changing strategy: Test 1000 trades before judging
Metrics to Track
Trader KPIs
| Metric | Formula | Target |
|---|---|---|
| Win Rate | Wins / Total Trades | >40% (with good R:R) |
| Profit Factor | Gross Profit / Gross Loss | >1.5 |
| Avg Realized R:R | Avg Win / Avg Loss | >2.0 |
| Max Drawdown | Peak to Trough | <15% |
| Expectancy | (WR×AvgW)-(LR×AvgL) | Positive |
Pro Trader Mindset
Winning attitudes
- "I am a risk manager, not a predictor"
- "Losses are part of the game"
- "I trade my plan, not my emotions"
- "Consistency beats intensity"
- "I focus on process, not outcome"
- "The market is always right"
- "Preserving capital = priority #1"
Trading Success: Following your plan with discipline for years, not getting rich in 1 month