BeatBen Knowledge

So you don't get confused a little lesson at a time. Understand this first, we continue tomorrow.

The chart above shows us a tweezers bottom that occurs in a downtrend, the bears pushed the market downward on the first session; however, the second session opened where prices closed on the first session and went straight up indicating a reversal buy signal that you can trade if you have other elements that confirm your buying decision.

6. Tweezer Bottom The tweezers bottom happens during a downtrend, when sellers push the market lower, we feel that everything is going all right, but the next session price closes above or roughly at the same price of the first bearish candle which indicates that buyers are coming to reverse the market direction. If this price action happens near a support level, it indicates that a bearish reversal is likely to happen.

5. Dragonfly Doji The Dragonfly Doji is a rare bullish candlestick pattern that occurs at the bottom of a downtrend. It is very similar to the Bullish Hammer Pattern, except on a Dragonfly Doji the opening and closing prices are nearly identical or same with no body. In the chart above, the market was testing the previous support level that caused a strong rejection from this area. The formation of the Dragonfly Doji with the long lower tail shows us that there is a high buying pressure in the area. If you can identify this candlestick pattern on your chart, it will help you visually see when support and demand are located. When it occurs in a downtrend, it is interpreted as a bullish reversal signal.

4. Hammer The hammer candlestick pattern is formed of a short body with a long lower wick, and is found at the bottom of a downward trend. A hammer shows that although there were selling pressures during the day, ultimately a strong buying pressure drove the price back up. The colour of the body can vary, but green hammers indicate a stronger bull market than red hammers. As you can above the market was trending down, the formation of the hammer (pin bar) was a significant reversal pattern. The long shadow represents the high buying pressure from this point. Sellers was trying to push the market lower, but in that level the buying power was more powerful than the selling pressure which results in a trend reversal.

3. Piercing Line The piercing line is also a two-stick pattern, made up of a long red candle, followed by a long green candle. There is usually a significant gap down between the first candlestick’s closing price, and the green candlestick’s opening, indicating a strong buying pressure.

2. Morning Star The morning star pattern is considered as a bullish reversal pattern, it often occurs at the bottom of a downtrend and it consists of three candlesticks: -The first candlestick is bearish which indicates that sellers are still in charge of the market. -The second candle is a small one which represents that sellers are in control, but they don’t push the market much lower and this candle can be bullish or bearish. -The third candle is a bullish candlestick that gapped up on the open and closed above the midpoint of the body of the first day, this candlestick holds a significant trend reversal signal. The morning star pattern shows us how buyers took control of the market from sellers, when this pattern occurs at the bottom of downtrend near a support level, it is interpreted as a powerful trend reversal signal.

The example above shows us clearly how the market changes direction after the formation of a bullish engulfing bar pattern. The smaller body that represents the selling power was covered by the second body that represents the buying power.

1. Bullish Engulfing The bullish engulfing bar consists of two candlesticks, the first one is the small body, and the second is the engulfing candle. The bullish engulfing bar pattern tells us that the market is no longer under control of sellers, and buyers will take control of the market. When a bullish engulfing candle forms in the context of an uptrend, it indicates a continuation signal. When a bullish engulfing candle forms at the end of a downtrend, the reversal is much more powerful as it represents a capitulation bottom.

Bullish patterns may form after a market downtrend, and signal a reversal of price movement. Don’t try to trade the market using this candlestick patterns alone, it is important to remember that although they are great for quickly predicting trends, they should be used alongside other forms of technical analysis and/or other factors of confluence to confirm the overall trend. Take note.

Our lessons continues from here

With reference from the above, can you tell me why it is impulsive to close a trade at the least minus? If you still don't understand no worries let me explain. 1. Closing trades at the least minus is considered impulsive because before you enter/place trade you should have agreed on an amount to risk (lose), this amount will then be used to calculate your Lot Size, you have also made a decision that if trade goes wrong then you will accept the loss and exit at a particular level, this level is known as the Stop Loss. Having a fore knowledge of this is very necessary; so why would you close trades at the very least minus? You agreed and you are okay losing -$20, trade is in action you are at -$4 at the moment, your heart cut so you close the trade sharrpp🥵. Did you lie to yourself ? No be you who said ''ah odeshi I can lose -$20 😎'' or you changed your mind? Immediately you closed the trade you realise the trade in now in profits, kpele oo, sorry oo Sir/Madam 😂😂. Remember not all trades jump into profits quickly, some will retrace before going in your predicted direction so have patience and control your emotions. 2. Moving Stop Loss to Entry/Breakeven It means moving your stop loss to the same price as your trade entry level when price is at significant level. Eg, you're at +$10, you can delete your initial stop loss and replace it with the price at which you entered the trade. This way you trade risk free, if you get stopped out, unless there is slippage, there is no way you will lose any money except for the spread and commission. The good thing in trading Synthetic/Volatility indices is you don't have to worry about spreads and commission (but there will be swaps if you keep trades running overnight) 3. Taking Partial Profits Once a trader has executed a trade, and becomes profitable, the primary goal is to keep as much of the profit as possible and avoid it becoming a loss. To prevent this from happening, the trader can move his/her stop-loss order to a level that protects at least part of the unrealized profits. Example: Ohemaa aims to make $40 on a signal Trader Ben gave, as the trade moves in her favour she can move the stop loss to a level to secure say $25 of her targeted profit so should price not hit the targeted profit, it is still a win for her. She can also take partial profits using this method explain in our previous lesson. Find it here https://t.me/beatbenknowledge/50 attached is a video illustration.

Before placing your trades, your mind, body and soul should have agreed on the amount you are risking, so just assume you have misplaced that amount, embrace your risks. Places your trades, close MT5, go read a book, continue with your duties, assignments, concentrate on that lecture you have, go and play outside, have your fun. If you think doing all these calculations is stressful, try doing manual, keep saying my risk amount is in my head so use any lot size with the thoughts you will stop the trades before it goes beyond your risk amount, what if you forget to monitor la wu for your account 🤣🤣🤣 . Again, keep staring at your trades when you are in class, when you are crossing the road, when you are eating, when you've to meet the deadline of that task, keep on till it either hits Stop Loss or Take Profit. What is stressful than this ? Always, set your Stop Loss, Accurate Lot Size and Take Profit, one way of keeping your emotions in place.

Still using the instance above, if you want to take this signal: 1. Know the amount you want or you can afford to risk 2. Calculate your lot size using this formula: Amount -------------------- SL - Price In my case, I am very okay losing -$20 so this is how I will calculate for the lot size I will use: $20 $20 ------------- = ---------- = 9.38 8570.63 - 8568.50 2.13 Therefore Lot Size is 9.38 So this is the lot size I have to use, should the trade go wrong I will lose just $20 of my account balance. NB: for the sake of time and because some signals would be instant market execution and not always pending orders (limits) you can input these in the parameters after that you calculate for the Take Profit, with your answer long press on the trade and click on Modify Position then insert your Take Profit. 3. Calculate your take profit according to the Risk to Reward you want to use e.g. 1:1, 1:3, 1:5 etc. Use this formula: (Stop Loss - Price ) x Reward Factor. I want to make 3x my risk in this trade - 1:3 (8570.63 - 8568.50) x 3 = 2.13 x 3 = 6.39 Now because it is a Sell Signal, I have to subtract the 6.39 from Price (i.e. 8568.50 - 6.39) = 8562.11. Therefore my Take Profit is 8562.11. If the trades goes as planned hits my targeted Take Profit level, my returns or profits will be $60. NB: if it is a Sell Signal you subtract and if it is Buy Signal you add.