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eaglestar Nov 7, 2015 12:35pm | Post# 1

The One: Price Action and Reaction
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I am creating this thread to teach and work together as a team to make trades based on the major pairs. We will start with only horizontal lines, then progress to using more advanced line techniques.

This thread is meant to be as simple as possible, and to create the most profit as possible for its readers.


There are many threads here on forexfactory to learn from. I have learned a lot from these threads, in no particular order.
Price is Everything
Median Line
No Brainer Trades


I would like to dedicate this thread to Timothy Morge Shane Blankenship and Dr. Alan Andrews, Redsword11, KennyZ, Ifmyante, BillyRayVal, and pipeasy.

Special Thanks to the Fibonacci mentors
Larry Pesavento, Carolyn Boroden, Joe DiNapoli, and Mr. Pip from here on forexfactory.

Also to one of my original Mentors by book and voice, the late Napoleon Hill. His work Think and Grow Rich and The Law of Success on personal achievement has created more milionaires than any other book. Thank you for giving back.

Napoleon Hill Resources
The Law of Success
Think and Grow Rich
Also good to read
The Science of Getting Rich
The Master Key System
The Book of Five Rings
The Emerald Tablet Of Hermes

Translation of Issac Newton c. 1680.

  1. Tis true without error, certain & most true.
  2. That which is below is like that which is above & that which is above is like that which is below to do the miracles of one only thing
  3. And as all things have been & arose from one by the mediation of one: so all things have their birth from this one thing by adaptation.
  4. The Sun is its father, the moon its mother, the wind hath carried it in its belly, the earth is its nurse.
  5. The father of all perfection in the whole world is here.
  6. Its force or power is entire if it be converted into earth.
  7. Separate thou the earth from the fire, the subtle from the gross sweetly with great industry.
  8. It ascends from the earth to the heaven & again it descends to the earth & receives the force of things superior & inferior.
  9. By this means you shall have the glory of the whole world
  10. & thereby all obscurity shall fly from you.
  11. Its force is above all force. For it vanquishes every subtle thing & penetrates every solid thing.
  12. So was the world created.
  13. From this are & do come admirable adaptations whereof the means (or process) is here in this. Hence I am called Hermes Trismegist, having the three parts of the philosophy of the whole world
  14. That which I have said of the operation of the Sun is accomplished & ended.

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This thread has changed a bit since beginning, but here are the original rules. I will put together a list of advanced rules soon.
Trading Rules
Rule 1: Take time to draw and observe.
Rule 2: Use only 150 bars or less on your chart.
Rule 3: Use 3:1 risk reward or greater.
Rule 4: If you don't see a trade, wait, and go on to the next chart.
Rule 5: Trade no more than 5 instruments.
Rule 6: Old lines are old lines. New lines are new lines. Trade in the moment, as price action forms.
Rule 7: Refresh your charts everyday, be in tune with the market
More to come as I can think....

As I had posted almost entirely recently in the Median Line thread, I had also shared some links there that are helpful and free. Here are some free videos by Tim Morge that go into detail about using Median Line and Andrews Pitchfork.
Start with the oldest first, as they build on each other.


Important: To understand completely the more advanced subjects in this thread that include Median Line work, YOU MUST read this course that is found here and go through the first video below on Median Lines from Tim Morge. Also, I recommend going through ALL SLIDES and ALL ARTICLES at and on the free Interactive Brokers Videos. These are all free materials.

And Action Reaction Course

This free webinar should help to understand the basics of Median Line work, that I go into later in the thread.

To view other Free webinars from Tim Morge click on Industry Sponsored, and choose Tim Morge as the speaker. Start from oldest first.
Click on CME - Using Median Lines & Pitchforks for High-Probability Trading

direct link


Here are some free worksheets

more free


I have added indicators that I use with template. Q spread may need some x, y adjustments to look correct. I usually use basicgreenalert. You can modify Alerter4U2 to be able to play different sound files for each template, which I also use this to email to my phone using smtp under Tools -> Options -> Email

Over the past week, on the Euro, there have been many possible entry points. Do you see them?
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eaglestar Nov 7, 2015 12:40pm | Post# 2

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eaglestar Nov 7, 2015 1:00pm | Post# 3

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What is noticeable on this chart?
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eaglestar Nov 7, 2015 1:02pm | Post# 4

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And here on the USDCAD
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eaglestar Nov 7, 2015 1:03pm | Post# 5

This is not just another support resistance or supply demand thread. This is a progressive process for realizing how the market moves, who is involved, and it is a KIS (keep it simple) method for trading that you can use whether you are a full time trader or work and trade part time.

eaglestar Nov 7, 2015 1:53pm | Post# 6

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Where are prices turning? They are turning at previous highs or lows near pivot extremes.
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eaglestar Nov 7, 2015 2:52pm | Post# 7

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You can spot the order flow on any chart. These are past charts on the Euro.
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eaglestar Nov 7, 2015 3:01pm | Post# 8

Here is a video on drawing the levels. You can position your 1h chart to any pair and start to draw and practice like this. Where does price turn?

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itmehedi Nov 7, 2015 10:49pm | Post# 9

Interesting. I hope more experience trader will join here and we will get clear instructions about market movement.

One question.
What do you mean <0:0:15 in your chart?

eaglestar Nov 8, 2015 2:20am | Post# 10

Interesting. I hope more experience trader will join here and we will get clear instructions about market movement. One question. What do you mean <0:0:15 in your chart?
That is an indicator for timing the ending of each bar.

eaglestar Nov 8, 2015 2:34am | Post# 11

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Another example. Do you begin to see any patterns?
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eaglestar Nov 8, 2015 2:44am | Post# 12

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And another more complex on NZDUSD.
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eaglestar Nov 8, 2015 2:47am | Post# 13

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Another on USDCHF.

We will begin to start to set up a formula for sl tp and entry shortly, but first we must understand how the market moves.
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eaglestar Nov 8, 2015 2:51am | Post# 14

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Level to level and back. Like the waves of an ocean.
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AlexC Nov 8, 2015 3:03am | Post# 15

Very nice Eaglestar!

MCFly Nov 8, 2015 7:37am | Post# 16

I liked the star wars title better Probably it lasts 5 seconds until the lawyers are calling FF...

What you are doing is part of my trading too. It's a strong tool in the arsenal.

eaglestar Nov 8, 2015 1:39pm | Post# 17

I liked the star wars title better Probably it lasts 5 seconds until the lawyers are calling FF... What you are doing is part of my trading too. It's a strong tool in the arsenal.
Yes we had the same thought.

mathematician Nov 8, 2015 2:13pm | Post# 18

You really don't need much more than horizontal lines.

I'm a little concerned that you already have plans to use "more advanced" methods. Simple is good! At least you said more advanced line techniques, and not just more advanced techniques in general.

Actually, the fact that you are focused on lines is a big clue: It means that you've already found your style of trading (or at least you've started to narrow it down). Don't stray far from this. You may run into some difficulty or you may not make as much as you thought you would, and then end up going on a long search for some new technique, trying all kinds of ideas out there. That happened to me, but then I started to realize something: I would frequently come back to some sort of line techniques; those are the ones that I felt most comfortable with. Ever since I made that realization, I've stuck with this style of trading and just continued to focus on that.

It sounds like you're already found your milieu, so remember this the next time you think about straying. Rather than changing to something else where you'll start as a beginnger again, stick with this. The time will be better spent making you more of an expert at this style, which you already know is a good fit for you. Well done!

tombombadill Nov 8, 2015 2:36pm | Post# 19

Hi eagle, thx for sharing your knowledge; looking forward to more content.

eaglestar Nov 8, 2015 4:52pm | Post# 20

Hi eagle, thx for sharing your knowledge; looking forward to more content.
Your welcome Tombombadill, I hope that I can help others to see something clearly here. It will be a progression.

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