Powerful Forex Trading Setup
Technical Terms Explained
1. Candlestick Psychology: Understand the message of each candle. Bullish = buyer strength, Bearish =
seller strength, Wicks = rejection. Pin bars and dojis = reversal/indecision.
2. Chart Pattern: Repeated price structures like Head & Shoulders, Double Top/Bottom, Flags. These help
predict next market moves.
3. Price Action: Analyzing pure price movement without indicators. Focus on structure, key zones, and candle
behavior.
4. Volume: Measures trade strength. High volume on breakout = strong move. Low volume = weak or fake
breakout.
5. Smart Money Concept: Focuses on how big institutions trap retail traders. Concepts include liquidity grabs,
market structure shifts, and order blocks.
6. Trendline: Sloped support/resistance line based on highs or lows. Used for breakout, retest, and trend
direction.
7. Breakouts & Breakdowns: Breakout = price rises above resistance. Breakdown = price falls below support.
Needs confirmation.
8. Liquidity: Area where stop losses are placed. Price often moves to grab liquidity before real move begins.
Powerful Forex Trading Setup
Forex Trading Strategy
Powerful Forex Trading Setup: Liquidity Grab Breakout Retest Strategy
1. Identify Trend:
- Use 50 EMA or structure (HH/HL or LH/LL).
2. Find Liquidity Zone:
- Look for equal highs/lows or swing highs/lows. These are stop loss zones.
3. Wait for Liquidity Grab:
- Price breaks above/below the liquidity zone and quickly reverses. This is a fake breakout.
4. Break of Structure:
- After the reversal, wait for structure break confirming new direction.
5. Retest Entry:
- Enter on retest of broken structure or order block (candle before impulse).
6. Confirmation:
- Look for rejection candles, volume spike, or trendline confluence.
7. Target & Stop Loss:
- TP: Next support/resistance or equal high/low.
- SL: Above/below liquidity grab candle or OB.
Powerful Forex Trading Setup
This setup combines smart money, structure, and price action logic for strong entries.