Learn the Most Important Trading Strategies in Under 18 Minutes

[00:01] this video, we'll talk about some simple strategies you can use for daily analysis and trading. The first method we'll discuss is the Fibonacci method. First, you look at the trend or direction your market is moving in. For example, in the current situation, we had a bottom, and

[00:14] then the price started to rise. So, we have a peak and a trough. Now, we start to see how the market is moving. I see that it's following an upward trend, so I start thinking about buying during the correction. Now, Fibonacci is simply about taking the

[00:28] usual Fibonacci ratios. You draw them from the trough to the peak and wait for the first pullback or correction the market makes up to your important ratio levels, which are 30%, 50%, or even

[00:40] 61%. These are the expected levels from which the price is likely to start to retrace. You also need to see that the correction is falling in a three-sided pattern: 1. Where, 3. No As we did here, you start thinking about buying in this case. The market is moving at the 50% level, and this is a good market reaction. So, this is the first

[00:56] method we can talk about: the Infobnac method. It's one of the most powerful methods, and everyone uses it, especially when you know how the trend is moving. The first thing you see is a trend starting to change direction using the methods you know, like price action and

[01:10] market structure. Okay, we don't buy immediately after the rise; we wait for the first pullback or the first correction. The first correction is usually around the 50% level, which is the usual percentage for trend corrections. Of course, the market has to be down in a three-period pattern. You start thinking from here and go with the trend again. The

[01:25] This is also a well-known method used by all analysts. It involves seeing the price moving sideways, like in the case we have here. Okay, there was a previous trend, and it's preferable for it to move in the same direction as the previous trend. This means the previous trend was

[01:39] upward, so you'll enter a sideways trend like this. Then you'll consider buying after a breakout or upward breakout to continue with the previous trend. So, what does this method involve, how do you identify entry points, and how do you set stop-loss orders? First, you identify the

[01:53] sideways zone we discussed earlier. Then, you wait for a genuine upward breakout— not just a single candle followed by a false breakout. It needs to be a strong breakout with one or two candles, followed by a hold or consolidation above the

[02:06] breakout zone. Then, you start buying and place your stop-loss order below the beginning of this sideways zone. Follow your target or your upward movement. Here, the same principle applies: the price was moving upwards, then it started moving

[02:20] sideways for a long period. You know that this During consolidation, a breakout will inevitably occur. The breakout must ideally align with our previous upward trend. A downward breakout can be risky for entry, but it's preferable to

[02:32] follow the trend preceding this sideways movement zone. Buy on a genuine breakout, not a false one, and ensure consolidation, as seen here. The breakout should stabilize gradually over several

[02:46] candles. This is a five-minute timeframe, but the principle applies to any timeframe. Consider buying and follow the upward trend again. This method doesn't follow the same pattern; there are many breakout patterns. The pattern you might encounter could be a triangle, meaning the upward movement continues, followed by

[03:00] pattern you might encounter could be a triangle, meaning the upward movement continues, followed by form a triangle, and then the price would rise again. Alternatively, it could be a descending flag pattern, where the

[03:12] price moves sideways within the flag. Breakout patterns work upwards, and it can be done like we did, which is a rectangle shape that moves sideways and then starts to move common patterns in this topic, and also in the Wig pattern. So,

[03:24] these are considered the most common patterns in the breakout method. We will talk about the next method, the reversal pattern, or reversal patterns, which are the patterns you may be familiar with, like the double top or double bottom, which is shaped like the letter W.

[03:37] This is the double bottom, and its opposite, which is the double top. There are patterns like the head and shoulders, which are famous classic patterns. It works like this: the price is down, then moves in a head and shoulders pattern, this is the famous pattern, and then it starts to reverse upwards again. Okay, as we

[03:51] said, there is the black bottom, and the triple bottom, which makes three peaks or three troughs, or the triple top, which is this, and then the price starts to move in the opposite direction. Let's look at an example of the patterns, which are: This reversal pattern we're seeing here is the triple

[04:05] bottom. It's similar to a triple bottom or a head and shoulders pattern. Here, you start drawing the wedge line, or the dot line, connecting these two points. This becomes your breakout zone. The price

[04:19] must be down before this point and up afterward because it's a reversal pattern. The movement before and after this point must be different. You start buying with the new trend. We've discussed this pattern before on the channel. The V- Shape pattern is when the price moves

[04:33] erratically, then suddenly drops and then rises again at the same speed. You start buying after this movement. You buy at this point and place your stop-loss order at the bottom. We talked about this in a previous video on the channel, which I'll leave in the description. The same thing happened here with

[04:46] this currency. On the index, it was moving in this way. My side, then a drop, and right in the gap, you're here to buy. You put your support here and follow the trade. The price is moving well with us. This is also one of the methods of reversal patterns, and this is an example of

[04:58] reversal patterns, which is the double. As we said, the double top is two peaks close together, and the price starts to break the neckline, which is here. After that, you'll find that the price starts to move in a direction. The direction could be strong or weak, but it's moving in the same direction with the same

[05:13] movement. Okay, of course, your target in the double bottom or double top issue is you measure the height of the wave, which is this height, and project it forward, which is your target in the wave. The method that we will talk about next is one of the

[05:27] important methods, which is the Elliott Wave method. Of course, this method is not very simple, it is a big field, but let's talk about it simply. How does it work in waves? Elliott Waves tell you that the market usually moves in the pattern you see here, which consists

[05:41] of five waves. If it's an uptrend, the price will start with wave one, then wave two, then rise in wave three, then move into a corrective wave (wave four), then rise in wave five. Your goal as a trader is to determine your

[05:53] current position in the market. Are you in wave one, wave two, wave three, wave four, or wave five? Each wave has an entry point, a common entry point or zone. The entry zones in this pattern are all based on the fact that you're in an uptrend, so

[06:07] naturally you want to think about buying. So you're thinking about buying, meaning you want to identify wave two to start buying from, with your target being wave three. The second entry point is when you want to buy from wave four, with your target being wave

[06:22] five. These are the main zones in an uptrend. Let's look at the following example in this topic. The same applies to the EUR/ USD. The price started moving in wave one. You're thinking of buying in wave two. Wave two could reach 99% of the correction of wave one.

[06:36] If we draw the Fibonacci ratio on wave one, where did that wave go? 78% or 80%. Of course, it could reach 99%, but it can't break the bottom of wave one. That's what happened in this case: the market dropped almost 80% of wave one. This is when you should have

[06:52] exact 50%, as we said before. But no problem, your stop loss is the bottom of wave one. So your numbering is correct; wave one is this, so your stop loss must be at the bottom of wave one. In this case, the price compressed a bit, but it didn't

[07:07] hit your stop loss, and the price started to accumulate again and began to rise in wave three. So, your target in this wave, wave three, is to break out of your target, which is wave three. That's how the game works. This account is considered your main target. The

[07:20] second entry point we discussed is the fourth wave, which we numbered here as wave number four. If we plot wave four using Fibonacci ratios of two to three, you'll find it's close to 38%. This is also the common Fibonacci ratio;

[07:35] you accumulate at the 38% level. This is the second entry point for the wave analyst: to buy at the fourth wave. As we said, they buy at the second wave. Your target here is the fifth wave, meaning your goal is to create

[07:49] wave number five on the EUR/USD. This is just a simple explanation. Waves have many rules and a lot of information; it requires entire courses on the subject. But let's keep everything simple in this video. We'll talk about the method next, which is called the Fair

[08:03] Value Gain. Simply put, when you have a candle, of course... (the candles) In the Japanese method, you have a candle, let's say a green candle like this, with no tails. Before it, there was a candle with a tails. Before it, there was a candle with a tail, and after it, another candle with a tail, like this. So you

[08:16] do something called the False Gap. What you do is draw a horizontal line across the tail above (dot) you do is draw a horizontal line across the tail above (dot) to define the zone. The potential buying zones are here and here (the tail dot and this tail). This is your zone.

[08:30] If the price then starts to move and falls to this zone, it's a buying zone, and then it goes up, as happened here. We can set our zone at the tail dot and this zone at this tail. This shaded zone is the area that could be a buying accumulation zone. This is what happened: the price reached

[08:44] this zone. Of course, there needs to be good price action. There was good price action, and then it started to go up. This is the False Gap method. This is for the same idea. And keep in mind that the candle itself must be a strong candle. It's okay if it has a tail below or above. But its main condition is

[08:57] that the candle must be strong compared to the candles before it. This is an example on the weekly timeframe. Pay attention to which timeframe it works. Okay, this is the candle we called the strong candle. We'll draw a horizontal line on the

[09:10] area before it. The candle before it has its swing high, which is here, and the candle after it also has its swing high, which is here. Okay, and this is the zone we will start to respond that this is what happened. Keep in mind that this is a weekly timeframe, meaning a large timeframe, but the trade

[09:24] will be strong. The price started to accumulate, then dropped and tested the zone, the zone which is here, and then started to rise again. We will talk about the next method, which is the Japanese candlestick method. This is also one of the very famous methods that has been around for a long time, and traders start to

[09:36] look at the conditions for forming some candlestick patterns that allow you to predict what might happen in the future. For example, We're talking about engulfing candles, or engulfing candles. engulfing candles, or engulfing candles. You have a bearish candle, followed by a

[09:49] strong green candle that engulfs the previous one. Then there's a bullish candle that breaks through the high of the previous candle. We can consider this candle like the one before—a bearish candle or a Doji. Then there's a strong green candle that engulfs the previous one. You start by placing your stop-loss order at the low of the Doji candle and follow the

[10:03] direction that will change next. The same applies in this image as well. There's a candle in the opposite direction—a bullish candle—followed by a applies in this image as well. There's a candle in the opposite direction—a bullish candle—followed by a strong candle we mentioned that engulfed the previous candle. This means that the

[10:19] reversal pattern, or the bullish trend, will start to enter a downward wave, and you follow this process. Talking about the Polish Angalvin candles, which is the engulfing candle. As you can see, the candles go down, one candle, and after that another candle. The

[10:34] whole of the previous candle, which is this. I consider this to be a previous candle. The second candle must swallow its high. I mean, this is the previous candle, so it must be the candle after that. It swallows them all completely and continues above them as well. This is what happened here. You find here the high candle

[10:49] the high of the falling candle. This is considered to be the action of the Engalvin bullish candle, or the engulfing candle will remain after that in a change in direction. Of course, stopping this deal or stopping, the bottom of this engulfing candle remains complete and

[11:02] bottom of this engulfing candle remains complete and then goes in the upward direction after that. Of course, these are the most important models for candles in Reversal candles This is the view of the reversal candle Its For example, in a downtrend, you'll find a candle with a strong downward tail that closes with a

[11:18] small body, resembling a hammer or a sledgehammer. This is called a reversal candle. In this decline, then a reversal candle, followed by an upward move.

[11:30] very strong upward movement. This can happen within two days, or of course, this is a daily timeframe, meaning two full days of upward movement. It depends on your understanding of the trend and how the market is moving. But here, the same pattern or market reaction occurred after this candle. The candle is bearish, and with the

[11:46] main trend, the opportunity is stronger. Afterwards, there was also an engulfing pattern, an engulfing bullish candle, and a doji candle before it. The doji candle has a shape; its body is a line, and there's a tail. The upper and lower wicks are close together, which means a wavering

[12:00] candle. This indicates uncertainty about the direction. When it appears after a downtrend, there's uncertainty, meaning there's a possibility of an upward reversal, but there needs to be confirmation afterward, like an upward engulfing candle. That's what happened here: a candle that's considered a Doji, then a bearish candle, then the

[12:14] engulfing candle we discussed earlier. It started breaking through the high of the previous candle. The stop loss is here, and the trade starts moving in the new direction. Of course, an engulfing candle also appeared here. new direction. Of course, an engulfing candle also appeared here.

[12:29] decline. There was a drop on the daily timeframe for a period of two or three weeks. So, this trade also reached about next is the moon phases method, which is more accurately the full moon or new moon.

[12:42] Of course, some people might be surprised by all this, but you can find research on it in Bankhead and large investment companies in America conducted research on the topic of Full Moon and New Moon. This is a quick application of the program, similar to Optima. The program provides you with a method called Moon

[12:57] Phenomenons, and you select the scenarios you want. For example, I want New Moon and Full Moon. New Moon is represented by this shaded circle on the candles, and Full Moon is represented by this white circle. This indicates the timeframe: a Full Moon occurred here, and a

[13:11] New Moon occurred here. There are slight changes in the market; there might be a change in the upward trend here, or a change in the downward trend here. Here, you start thinking about the price patterns we discussed. Then you begin to analyze the Full Moon. This could be the beginning of a new trend

[13:24] or the start of a sideways movement, and so on. This program then provides you with all future Full Moon and New Moon patterns because, as we mentioned, it uses fixed calculations; the equation is well-known, so it's not something new. Therefore, we can predict Full Moon and New Moon patterns for

[13:39] hundreds of years into the future. Of course, it's preferable that you The Full Moon and New Moon areas connect with the pattern. For example, here a Full Moon occurred, and we find that the price started to give price action here, as we said, an engulfing pattern. Then it started to give an upward shape in the medium term, but it also has

[13:53] speculative aspects. The same thing applies to a downward trend. It started to give a sideways pattern, and then it started to reverse upwards, and so on. So you think about these patterns, but you won't follow them alone. No, you have to follow them with reading the conditions or price patterns in front of you. The method that we will talk about next is the

[14:07] MACD method, or divergence. Of course, I use it on the MACD or any indicator, but I like to use it on the MACD. It is available on all trading platforms. The MACD simply tells you whether the trend is strong or weak. So, we'll consider this MAK to be

[14:21] strong or weak. So, we'll consider this MAK to be below the target. Under this condition, everything is fine, and my price is moving. It made a peak, then made another peak higher than it. If you look at this MAK in the indicator below, you'll find this MAK made a peak, then a lower peak. This movement tells you

[14:35] that this upward movement isn't the true upward movement; there's weakness in the trend, liquidity is leaving the market. Of course, you'll find this MAK looking downwards, so its trend or indicator is downwards. Here, you'll find the stock or currency

[14:49] rising upwards, and this MAK is rising downwards. This means there's what's called a divergence, or a difference in something in the market, like what happened here with Bitcoin at its famous peak in 2022. When we look here, we'll find that the price was rising, but the indicator was telling you, "No, be careful,

[15:05] this rise has less momentum." Even though the market made a new peak above the previous one. But here, the MAG (Magic) indicator didn't create a new peak above the previous one. On the contrary, it new peak above the previous one. On the contrary, it created a peak lower than the previous one. This is a

[15:17] market indicator telling you to be careful, as there's doubt here that the market might continue to decline and that this rise was a false one, not the true upward movement that will continue. And indeed, Bitcoin experienced a sharp decline for a very long period afterward because of something as simple

[15:29] as this. So, pay attention to divergence when you analyze the market. If we look at this currency here, we'll see the same thing. Here, the currency is making upward momentum like this, but here the divergence or MAG is giving you a

[15:42] downward momentum. So, it's telling you to be careful, as there's an area where there's doubt that the market will continue in this way. And that's what happened. Here, you'll find that the price started to break through the previous peaks, but then it fell sharply and started to move in a downtrend or a sideways trend to absorb the

[15:56] movement that occurred here. But Magdy told you that Here, be aware that this rise isn't a true rise; it's a false rise because this peak is lower than the previous peak, but this peak is higher than the previous peak. If a difference or divergence occurs in the market, what we'll discuss

[16:10] is the structure or construction of the market. I want to see if this trend is upward or downward. The market does a few things that people recognize when the trend is about to change. First, if the trend was downward before, the price starts to make higher rallies than the previous rallies. This

[16:24] means a trough has been reached. This is the lowest point. Then there's a slightly higher trough. So, we're at a peak, and I need to see a slightly higher peak. This peak is slightly higher than the previous one. Here, we start to see that this peak is higher than this peak, and this trough is higher than this trough. We'll look at the structure.

[16:37] trough, and the price starts to rise. Here, I see that the structure is complete, and the price... This will start to form a rising trough, and we'll start buying after that, moving with the market. This is the basic structure or building block of the beginning of an upward trend.

[16:51] same thing happens in a downward trend; these things start to form, but in reverse. You'll see that the these things start to form, but in reverse. You'll see that the market makes a peak, then starts to fall, then makes a peak lower than the previous one, then starts to fall again and makes a trough

[17:06] lower than the previous one, and so on. From here, the market starts to move. As soon as you see this formation, you'll start to think that we're about to enter a downward trend. If it's in the medium term, there will be another drop after this formation. If it's a major trend, there will be a

[17:19] sharp drop. But if this drop is a corrective drop of a higher degree, then there will be a drop of moderate strength. But as soon as you focus and see all this movement, a rising trough lower than the previous resistance, you'll know that there is a There's a change in the market structure and a change in direction, and you can

[17:32] base your decisions on this pattern. Let's apply the same idea here. You'll see a peak followed by a decline and then a trough. Now, let's look at the next peak. This peak is lower than the previous one. So, will this trough break and form a new low? We see that it did

[17:44] break, forming a lower low than the previous one, and then it rose and formed a peak. Now, will this peak break this one? It formed a peak, then fell again and broke the previous low. This point specifically indicates the beginning of a downtrend, even if it's in the medium term, because we've fulfilled all the

[17:57] in the medium term, because we've fulfilled all the conditions we discussed: the swing high is lower than the previous swing high, and the swing low is lower than the previous swing low. So, this is the formation of a downtrend. You start moving in this direction. Of course, based on your previous analysis, you can determine whether

[18:10] this trend will be strong or weak. Here, it has been moving for a period of you, but It will make a difference to you that here we are at the beginning of a trend change, even if it's in the medium term. These are the most important ideas I wanted to gather for you in one video. Of course, there are

[18:24] many other ideas. If you'd like me to continue with these ideas in a new video, please leave a comment below this video. And of course, like this video and share it with your friends so it reaches everyone.