
Forex-e-Learn Course
The ABCD Pattern
Key Notes: Forex Signals Learning Guides
•Each Price Bar contains four components, they are the ‘OPEN/HIGH/LOW/CLOSE’.
•When the market closes HIGHER than it opens, the bar is GREEN.
•The market closes LOWER than it opens, the bar is RED.
•Closed market at exactly the same price that it opened, the bar is either colourless or a colour set by
your trading platform.
Forex-e-Learn Course
Forex for Beginners
Module 2 – The Daily Chart
Key Notes:
•The initial thing to check is where price is at the moment, is it testing any areas of support or resistance?
• Make sure you identify which movement price is currently in (Movement A or Movement B), this is crucial to determining your long/short bias.
•Movement A is always in the direction of the major trend and is the bigger move, Movement B is the correction.
•Check to see where price closed in relation to the high/low as it shows how strong the buyers/sellers are.
•Support or resistance is only valid when price has tested the area at least 2 or 3 times.

the daily chart
Forex-e-Learn Course
What Is A Forex Trading Strategy?
Module 2 – The Daily Chart
(Support and Resistance)

support and resistance lines
Understanding Pivot Points
Module 2 – The Daily Chart
(Price Movements)
• Movement A is always with the dominant trend/Movement B is the correction ( In a downtrend, when the professionals are selling,
the price is moving down. They then need to take their profits and that causes Movement B)
• In a downtrend, when the daily chart produces a bar that has closed HIGHER than it opened, this signifies that the Movement A is
weakening and Movement B is about to start
• We must be aware what Movement price is going through so that we can trade in that direction, this also applies to the 1 hour chart

Price Movement
Charting Basics – Bars vs. Candlesticks
(Price Action Signals)
In the Forex market, ‘Price Action Signals’ refer to visual setups that occur at key levels of support and resistance which can
cause the market to change direction. If we can understand the signals, they can be enormously profitable when used correctly.
Below are some of the most important ‘Price Action Signals’ that we need to look for when trading (especially on the Daily
Chart).

price action signals
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