Buy Now
Part 1 · Read the market

02The strategy on one page

The whole practice plan, from chart to order, in a single view.

Use an H1 chart (each candle is one hour) with an SMA50: the average of the last 50 closing prices. It is a lagging summary and cannot forecast the next candle.

  • Horizontal levels every 25 pips.
  • Stop-entry orders 3 pips beyond a qualifying level.
  • A 30-pip stop and a 50-pip target, measured from the actual fill.
  • Reward-to-risk about 1.67.

These are practice assumptions for study, not proven values.

The decision flowchart

  1. 1
    In the review window?Yes → next No → no trade
  2. 2
    No news?Yes → next No → no trade
  3. 3
    Close above (below) SMA50 and slope agrees?Yes → next No → no trade
  4. 4
    Level at least 10 pips from SMA50?Yes → next No → no trade
  5. 5
    Position size fits?Yes → next No → no trade
  6. Place order
Honest note
A clear rule is testable. A testable rule is not automatically profitable. Use this book to investigate the method, not to assume it works.
Key takeaway

Every order must pass the same five questions, in the same order, every time.

Try it
Say the five questions aloud from memory, then check them against the flowchart.