First trend phase is called market accumulation. This is a trend period when market makers are taking their
positions. At this faze further direction of movement is unknown.

Second trend phase is called market distribution. This is a moment when market makers are done with taking positions and they wish that the price start to move  in desired direction. At the distribution faze direction of further price movement is known. And traders are getting into positions.

Third trend phase is market acceleration which is caused by large speculative firms like investment banks, retirement funds, large private investment firms, hedge funds,etc.

Fourth and the last trend phase is called market consolidation which is caused by closing the
positions(profit taking). So market maker have decided to take the profit. Large sum of money will stop the market at the moment and start to go sideways.

After that cycles starts all over again! If you wish to learn more about market maker affect on the market then

The best way to get in and out of a position is as it is shown on a picture. (But don't be greedy!)

For central line you can use exponential moving average.


There is a belief that trading Forex is opposite from every-day job. At regular job you are working every day for little salary. But in Forex is opposite, it's enough to trade one day per a week only if you see a good chance for trade setup.

I like to trade GAP'S!

Trading gap's is an old and not so popular, but profitable trading strategy.
On the Forex market we can find gap's on Sunday opening.

First of all, I need to say that there is half gap and full gap.

Half gap is when price is open only half of way.

Full gap is when price is open all the way.

What does it mean "price is open"?

On the market opening at Sunday (FOREX case) starting price is different from the
last week which means that gap is open.
There is a belief that price would come back to previous price which means that gap is closed.

In my opinion, there are 4 different GAP'S.

There is certain place where gap can appear:

If we have turning point:

-Price can gap in a direction of a new trend and such gap does not have to close because
it started a new direction.

-Price can gap in same direction, testing the old turning point, and such gap will close because
it's in an extreme position.

If we have price movement:

-Price can gap in the started direction busting up the trend (acceleration) and such gap doesn't
need to close.

If we have side-way trend:

Such gap will probably close and my best experience is to trade SELL when gap is up open and
to BUY when it's down open, for closing.

There is one more thing. When price gap's up or down I do not enter in a position right away, but
wait for a little bit and when price goes further more in a gap direction for 20-30 pip's
then I put order in a place for gap closing. I do that because this extra 20-30 pip's gives me advantage.
I have noticed that if gap didn't close, it would go back to the gap opening price.

I hope that I didn't reveal to much for you!


When we analyze FOREX market we find that there is no fixed price or area that indicates overbought or oversold.
New trader always have difficulty with that. Because what once was overbought area the second time is oversold area. How to know which area indicates what and in what time?

If I use Exponential Moving Average(EMA), everything starts to get simple.
I will use EMA100(white) which is much slower than the price and is showing current average price.
Price can be above or under the EMA100 (white).
In a long term period you will notice that price is oscillating equally above and under the EMA100(white).
If price goes high above or low under the EMA100(white), it would be in an extreme area.
I have shown you how to make fixed line around which price would oscillate all the time.

This is rough setup because EMA100(white) is a slow moving average.
If we want to filter this extreme position additionally, we should add EMA20(yellow).
You will notice that EMA20(yellow) is much closer to the actual price, but it is slower then price and faster then EMA100(white).
If you look a little better on your chart you will notice that EMA20(yellow) also oscillates around EMA100(white) in a long term period.
Now it's much easier to define the extreme!
 If EMA20(yellow) high above EMA100(white), it indicates overbought area and the other way round.
In a case you wanted to filter the situation a bit more, you can add two, even faster EMA10(blue) and EMA5(red).
In a case EMA20(yellow) is high above EMA100(white), EMA10(blue) above EMA20(yellow), EMA5(red) above EMA10(blue) and the price above EMA5(red), you have filtrated, overbought area which is valid the other way round.

EMA analysis is combined with TREND STRATEGY and you can use it if you wish to TRADE GAP!

Target 1 the price is touching EMA5
Target 2 the price is touching EMA10
Target 3 the price is touching EMA20
Target 4 the price is touching EMA50
Target 5 the price is touching EMA100

This type of analysis is necessarily being used on all time frames.


I wish to talk about time analysis
There is price analysis and somehow I have a feeling that new traders have more focus on price then on a time

We can split time analysis  on high volatility and low volatility.

On intra-day basis we can find:
High volatility time (session opening, relevant news publishing, large speculative and hedge companies working hours and their mistakes(FAT finger of Wall street), session closing).

Low volatility  time(when session are over and there are no relevant news on schedule,holiday's).

High volatility time is most suitable for intra-day up or down trend to show up!

Low volatility time is most suitable for intra-day side-way trend to show up!

There are cycle's! Lot's of peoples told me that price does not have cycle's. 
I don't agree with them!

Trader's make a decision's: Buy or Sell. Trader's are humans and humans live in the cycle's! 
They are waking up at a certain time and go to work. They have lunch break at certain time every day. They have children and they have to pick them from kinder garden at certain time. At certain time of day they have working hour over. Then coming home, have time for themselves....  Their every working week has a weekend off, every working year has a planed vacation! 

Which trader are you when it's about time analysis ?


To become profitable trader, first you need to find an answer to one question.
The question is: What are big players doing? (How are they trading?)
I know that many of you will ask: Who are the big players?
Are they the investment banks, hedge fonds, investment companie, individuals with immense capital,...
The answer is simple. The big players are market makers! The next question is: How are they trading (with large amounts of money)?

The answer to that question can't be seen on the charts immediately. New traders usually don't see further from the chart.They think that everything is shown in the price. It's true that everything is shown in the price if you know where to look. To understand how the big players (market makers) trade with large amounts of money, you need to know that behind the graphs is the entire industryThe cycle which is constantly repeated on the market is made of three phases:

    1. phase is Accumulation
    2. phase is Manipulation
    3. phase is Profit Taking

You are on the one side of the chart and on the other side are market makers. You see the chart and they see all your pending orders. That way market makers can easily make decision when to buy so it could be sold to your pending orders later. This kind of industry is decades old and is constantly doing the same
cycle repeatedly.


    To understand the accumulation, first you need to know how quoting operates on the market. When a trader with a small amount buys or sells on the market, it doesn't have much of an influence on price while trading with large amounts has influence.

 For Example!
     Let's say that we have $10 million and we want to buy a trading instrument at the price of $100.
     However, BID volume on the price of the $100 is $1 million so it would be closed only one
     transaction of $1 million and then we would get requote, for example $101 with belonging volume.
     Now we have two options:
     1. option is to continue buying and the price will continue to rise.
     2. option is to wait for  price to touch $100 level again and then to buy belonging volume again.
         We need to repeat that continuously until we spend $10 million which are designated for investing.
         (On the market that would be recognized as testing $100 level.)


After we have invested $10 million into a trading instrument at a price of $100, we want  price to rise at $120.
$120 should have high liquidity so we could sell all $10 million and make the profit of 20 percent.
If $120 won't have high liquidity, the price will fall and we will have to manipulate the price to rise again. To explain the price manipulation, first I need to tell you why is price moving. Many of you will tell that price is moving because of many factors, for example bid, ask, politics, change of  interest rate, unpredictable weather, various news publishing,etc. It's much simpler than that. The price is moving only because of two main reasons and they are believes and news.
    I know that many of you will say: Nonsense!

However, try to imagine that your best friend is explaining to you a situation in some firm with details and he makes you believe that firm's stocks will rise. If you believe that stocks will rise, you will buy those stocks. By buying stocks you will influence the rise of stocks. If you don't believe what your friend is telling you then you won't buy those stocks.

I hope that from this example you can understand that price is driven by believes.

Why am I even explaining you that the price is driven by believes?
Because market makers are aware that it's much easier to manipulate the believes than the price itself.
To move the price up or down costs a lot of money and to make a reporter say whatever you want is free. After reporter publishes the article, people will believe that the price will rise and they will start buying.

OK, I know that many of you will say now:" I disagree with you! It's not easy to control the media!"
    So lets go trough this example:
    A reporter gets a task to write an article about situation on the steel market.
    Considering that reporter doesn't know much about the situation, he will go to the steel factory (company).
    He will ask questions about conditions, predictions, price at the moment, etc.
    Maybe he will go and visit more steel companies and make conversations with experts in that field.
    Later he will write an article based on the information's gathered from steel companies. However,
    only the one who gave those information's knows the truth about information.
    Reporter isn't competent person to make a quality evaluation of gathered information's.
    One thing is certain, to write an article, reporter won't ask  a fireman, police officer, baker, etc. questions
    about situation on the steel market.

Look on TV and check in the newspaper where are market information's coming from. They are coming from the market makers! Market makers have published tons of trading books (Forex e-books). This books are about trading Forex or trading stocks and they are providing free trading courses!


Market makers wish to program you so you can provide them large liquidity at the certain moment (time and price). They need large liquidity to get out from their positions ($10 million).  It doesn't cost much for market makers to manipulate the price in a short time period in a way to make most indicators indicate the same thing. When indicators indicate the same thing and the price is in a certain position that will cause a mass effect and people will start buying.


    When price comes to a certain price level ($120), market makers start closing their positions and all others start buying (providing liquidity to market makers). That's why every action has a reaction which is defined with Fibonacci retracements. If they don't get rid of all volume ($10 million) in a first try and price touches Fibonacci golden ratio (61,8%) then they start buying again to make the price rise again. They will start a trend to get rid of volume ($10 million). Trend ends when volume of $10 million is sold.
    Then everything starts all over again: Accumulation, Manipulation and Profit taking.

   ($10 million, $100,$120  are just for example purpose and not as a guide)



    Cycle is being repeated over and over again. It will never end.
    It will end only when market makers decide not to take profit for themselves.
    That will never happen!

The cycle of market emotions

Optimism - trading starts with optimism.
Excitement - everything goes well!
Thrill -"wow I feel great about this investment!"

Euphoria-point of maximum financial risk.

Anxiety - what is going on?
Denial - "temporary setback. I'm a long term investor!"
Fear - just don't go against me!
Panic - it's going against me!
Capitulation- "Maybe the markets just aren't for me."

Depression - Between this two is point of maximum opportunity.

Hope - it would come back!?
Relief - it is coming back!
Optimism - trading ends with optimism.


ABC Trend trading strategy is a great trading tool!
I enter the position after turn C is finished!
I put Stop lose under point C when trading up trend.
I put Stop lose order above point C when trading down trend.

For target I use money managment 1:2,1:3.
If target is not touched and turn B is over, must flat the position.

1-2-3 trading strategy  is breakthrough strategy. But ABC TREND trading strategy is to find entry into position near support or resistance line by using small time-frame to find bounce. Wave from C to B is the larger and we expect next B to be higher high if it's UP trend.Or lower low if it's down trend. Target could be money managment 1:2 or 1:3, or up-trend resistance line. But if we see that turn B is over and it didn't touch neither MM, or up-trend resistance line then we must close the position no mater what!

It is all visual, there is nothing to calculate!

Compare B1 and B2 in UP TREND (B1 is high but B2 is higher high then B1)
Compare C1 and C2 in UP TREND (C1 is low but C2 is higher low then C1)  

                                *when we have UP trend there is a rule:


                                     *when there is DOWN trend rule is :


If you compare  price of B1 related to B2  you will find equation that B1 price  is greater ,higher or larger price number then B2 price when we have down trend and it is reverse equation for an UP-trend.
If rule is broken then trend is over!  (see larger time frame to get clue what is going on, zoom out)

You can see that trend is all about action and reaction.
Action is larger move then reaction when we have trend!
To find out more about predicting action and reaction you can read topic:" PREDICT REACTION "
To find a spot where action can start you can use Fibonacci retracements!

When you draw a line always start to draw a line from A and recline to C1 .
That would be slow trend line!
Then draw a line from C1 and recline to C2. That would be faster trend line.
Next draw a line from C2 and recline to C3. That would be even faster trend line, etc.

If it is UP trend then those lines would be called trend support lines and if it is DOWN trend then
those lines would be called trend resistance lines.

Every trend has four phases so I recommend to read topic "TREND BEHAVIOR"

Turn C is called MOF!
MOF Definition  is Money On the Floor.
The lowest risk is on C2 turn!

You can use indicators for confirmation only!
You can use stochastic for crossover in area 20 and 80 just to confirm reversal, but first you must wait
for price to come into sector of rotation. Further you can use MACD for divergence as early sign of trend ending. Then you can use exponential moving average to see average price in the market trend, and Bollinger Bands for volatility.
I think that this would be enough because it ain't good if you complicate to much.

Sector of rotation is place where price on the market will turn in the other direction (change the course)!

ABC trading analysis EXAMPLE! on .