Table of Contents
To study how the market price moves, you need the underlying currency pair’s historical and current price behavior.
A price chart is, therefore, a visual representation of a currency pair’s price over a set time.
Types of charts
There are three charts, including;
1. Line Charts: This help to identify big-picture trends for a currency. You can use the information contained in a trend line to identify strong support and resistance levels.

2. Bar Charts: These represent specific trading periods and offer more price information than line charts.Â
Each bar chart represents one trading day and contains a trade’s opening, highest, lowest, and closing prices (OHLC).Â
A dash on the left represents the day’s opening price, and a similar one on the right represents the closing price.Â

Candlestick Charts: Candlestick charts are a more visually appealing and easily comprehensible form of charting than other types.
A candle that appears to be descending, or a “down candle,” signifies a period of decreasing prices. Conversely, an “up candle,” which appears to be ascending, indicates a period of rising prices.
The formations and shapes displayed on candlestick charts depict price action and can be utilized to identify the direction and movement of the market.
Some of the commonly recognized formations in candlestick charts include the following;
– Engulfing candle
– Pin bar
– Doji
– Double Marubozu
– Hanging man
– Shooting stair


Introduction to Institutional Candlestick ReadingÂ
In our courses and strategies, we stalk the market with the help of institutional levels such as order blocks.
We need to identify a footprint the institutions leave behind when they make their orders.
Therefore, not all candlesticks are order blocks, and not all levels are institutional levels.
In this beginner course, I will introduce you to institutional candlesticks, or institutional order blocks, that you need to know in the market.
These institutional order blocks form in any market, including forex, stock, synthetics, etc.
Institutional Order Blocks/CandlesticksÂ
The beauty of the Forex market is that you can decide to trade reversals or continuations depending on the institutional order flow.
Reversal setups are high risk though they come with tremendous rewards. To trade reversals, you need HTF confirmation.Â
Reversal Institutional Order Blocks/Candlesticks
Reversal institutional order blocks/candlesticks are another important candlestick pattern used in forex trading. These candlesticks indicate a potential reversal of the current trend.
Some of the most common reversal institutional order blocks/candlesticks include;
1. Engulfing Order Block
An engulfing order block is an institutional candlestick pattern formed when a large candle completely engulfs the previous candle. This pattern can indicate a reversal of the previous trend if it appears at the extreme part of the curve (Trading range), suggesting that the buying or selling pressure has shifted significantly in one direction.
You can use engulfing order blocks to identify potential trading opportunities by looking for large, high-volume candles that completely engulf the previous candle, indicating a strong shift in market sentiment.


2. Double Maru
Double Maru candlesticks can indicate a potential reversal in price direction. The pattern consists of two consecutive Marubozu candlesticks, which are characterized by having smaller or no shadows or wicks.
I) One type of Double Maru candlesticks that indicates a possible reversal happens in a manipulation pattern, eg, a bullish double maru forming at the supply zone, a concept we will learn



II) Another type of Double Maru happens as a continuation candlestick at the extreme of curve



3. Doji
A Doji candlestick pattern occurs when an asset’s opening and closing prices are very close to each other, often within a small range. This creates a candlestick shape resembling a cross or a plus sign.



4. Hammer/Pin Bar
These are candlesticks with small bodies and a long wick on one side. The wick represents a failed attempt to move in a certain direction before reversing, and the pattern can be either bullish or bearish, depending on the direction of the wick.Â



Tips
To trade institutional reversal candlesticks, you need to wait for reversal confirmation by looking for additional bullish or bearish signals on the Higher Time Frame (HTF), such as Market Directional Imbalance, a break of market structure or rejection on the HTF key zone. You can also use other smart money indicators, such as support and Resistant, Liquidity raid, Fair Value Gaps (FVG) etc.
We will discuss these confluence factors in our advanced courses.
Continuation Institutional Candlesticks
Continuation institutional candlesticks indicate a continuation of the current trend in the market rather than a reversal. These candlesticks appear after the market has reversed, so only locate them after reversals (on a continuous market).
Several types of continuation institutional candlesticks exist, including;
1. Engulfing




2. Double Maru



3. Doji or Pinbar



Introduction to Supply & Demand in Forex Trading
Supply and demand trading is a trading strategy that seeks to identify areas of imbalance in the markets and capitalize on them.Â
The basic premise of the strategy is that markets move in cycles, with prices rising and falling due to supply and demand imbalances. By studying the characteristics of these cycles, you can attempt to identify the prices at which supply and demand are out of balance and then trade accordingly.Â
This type of trading is based on the idea that prices move back to their equilibrium point, so if you can identify an area of imbalance, you can take advantage of it.Â
You can trade using supply and demand in any market, including stocks, commodities, currencies, synthetics, etc.
Supply and demand zones are areas on a forex chart representing price levels with abundant buyers and sellers, respectively.Â
Supply zones have many sellers, and the price has difficulty increasing.Â
On the other hand, demand zones are areas where buyers are abundant, and the price has a problem decreasing.Â
You can use supply and demand zones to identify potential entry and exit points in the forex market.
Types of Supply and Demand patterns
1. Supply Zone
A supply zone is a price range with a high supply or selling pressure concentration. In other words, it is an area where sellers are likely to enter the market and sell their assets, causing the price to drop.
A supply zone is usually identified by looking for a price level at which the price has previously reversed from an uptrend to a downtrend. This is because, at that level, the market makers were likely to take significant amounts of orders, resulting in selling pressure.



2. Demand Zones
A demand zone is a price range with high demand or buying pressure concentration. In other words, it is an area where buyers are likely to enter the market and buy their assets, causing the price to rise.
A demand zone is usually identified by looking for a price level at which the price has previously reversed from a downtrend to an uptrend. This is because, at that level, the market makers were likely to take significant orders, resulting in buying pressure.



Basic Institutional Support & Resistant
Basic institutional support and resistance refer to the price levels at which institutions, such as banks and large hedge funds, are likely to buy or sell their orders. These levels are determined based on historical price movements and other market factors and are considered significant because of the large volumes of trades that institutions carry out.
Support levels are price points at which institutions are expected to buy, leading to increased demand and a subsequent price increase. On the other hand, resistance levels are price points at which institutions are expected to sell, leading to a decrease in demand and a subsequent decrease in price.
You can use the knowledge of institutional support and resistance levels to make informed trading decisions.




Fundamental Analysis
This passage introduces the concept of fundamental analysis as an alternative approach to technical analysis in the forex market.Â
Unlike technical analysis, which focuses on price movements and trends, the fundamental analysis considers various political, social, and economic factors to determine the intrinsic value of a currency or asset. Key indicators such as interest rates, GDP, and inflation are used to evaluate trading conditions. To utilize this method effectively, you must possess analytical skills related to statistical and economic data. The combination of price action and fundamental analysis can be particularly beneficial in taking advantage of high-impact news events.

Some essential economic signals that can help you analyze the economy’s situation include;
1. Inflation
Inflation is a phenomenon with a sustained rise in the prices of goods and services, typically measured using the Consumer Price Index (CPI) and the Producer Price Index (PPI). As inflation increases, a currency’s purchasing power declines, which has implications for the Forex market.Â
Suppose the inflation rate in one country is higher than that in another. In that case, the currency of the former will typically lose value relative to the latter. To mitigate this, central banks in countries with high inflation rates often raise interest rates to control inflation, which can impact the value of their currency in the Forex market.
2. Interest Rates
Interest rates refer to the expense associated with borrowing money, and their determination lies with the central banks of individual countries. These rates play a crucial role in influencing individuals’ borrowing and spending habits.Â
Lower interest rates generally encourage people to borrow money, increasing spending and economic expansion. Conversely, higher interest rates often lead to savings, reducing spending and economic contraction.Â
The forex market is significantly affected by interest rates as changes made by central banks in this regard often cause appreciation or depreciation of a country’s currency concerning others.
For instance, a rise in interest rates may attract investors seeking a haven, increasing the demand for that currency. In contrast, lower interest rates may discourage investors, leading to decreased demand and potentially driving them to look elsewhere for better returns.
3. Gross Domestic Product (GDP)
Gross Domestic Product (GDP) is a widely used indicator of economic growth and health, measuring the total market value of all goods and services produced within a country during a specific period.Â
This measure is critical in assessing a nation’s overall economic performance and its potential for future growth. In the foreign exchange market, fluctuations in GDP can have significant implications for currency valuations. Investors often use GDP as a key factor when deciding whether to buy or sell a currency.Â
A rise in GDP leads to increased demand for a currency and a subsequent rise in value. At the same time, a decrease in GDP may result in a decrease in demand and a corresponding decline in value.
Institutional and Smart Money Forex Trading Strategies
Selecting an appropriate forex strategy is crucial, as traders have multiple options. In our intermediate and advanced courses focused on institutional trading, our recommended strategy will be based on the following factors:
- To enter the market, traders must determine the optimal time to do so.
- Developing clear rules for exiting the market and managing losing positions is also important.
- Traders must consider their availability, as day trading and scalping may not be feasible for those with full-time jobs.
- Personal preferences should also be considered when choosing a trading style.
- Position trading may be preferable for those seeking larger gains but with a lower win rate.
- Swing trading may be better for those seeking a higher win rate but smaller gains.
Common Institutional Forex Trading strategies include;
1. Range Trading Strategy
In this strategy, you need to identifies the range at which price creates an imbalance when the market structure.Â
Other aspects like institutional support and resistance levels are also essential in this strategy to help determine where the price will likely end its mitigation.Â
This strategy works well when there is a clear market direction. It’s easier to take your profit at Lower Low (for a Bearish market) or Higher High for Bullish market). As we will learn in our advanced institutional trading course, you can trade any setup created inside the range.Â
SOPs,
e.g., with a Bearish Market
– Find the Range and mark the highest (LH) and lowest (LL) points within the market structureÂ
– Divide the range into Premium & Discount (0%, 50% & 100% Fib levels)
– Find sell entry on the premium zone in line with Higher Time Frame confirmation, which we will learn in our institutional trading intermediate course.


2. Trend Trading Strategy
In this strategy, it’s easier to profit by analyzing institutional order flow (trends). The strategy simply involves identifying the market’s bullish or bearish institutional order flow.
Therefore, based on Higher Time Frame Confirmations, you can easily identify Lower Time Frame Setups and leverage on taking small profits as the market trend.Â
SOPs
– Identify imbalance on HTF
– Identify and mark the market structure on LTF.
– Determine the trending range on LTF.
– Wait for the market to form your setup.


3. Pairs Trade Strategy
A pairs trading strategy is one of the most popular strategies for finding trading opportunities between two currency pairs or stocks that are correlated or co-integrated.
This is a neutral trading strategy, i.e., it doesn’t matter whether the market is trending upwards or downwards; the two open positions for each asset hedge against each other.
SOPs
*In this strategy, it’s essential to identify the HTF imbalance and market structure of the two pairs and wait for them.
Example of correlation higher than 70% on H4 as at 3rd March 2023.


Here is where you can get some correlated pairs for your in-depth comparison.
4. SMT Divergence Strategy
Smart Money Technique Divergency strategy is an ICT method (much credit to ICT MJH) that focuses on two historically correlated pairs, where you can buy one asset and sell a similar asset for a higher price or use one pair currency to buy or sell its correlated pair.
the two are different.
SMT patterns appear at the beginning of sessions in Asia, London, and New York. It is a change in the flow of money where the algorithm books the market. It is also a warning sign of things to come.
There are also 2 SMT divergences;
- Determining bias by looking at the DXY dollar for US Markets. The dollar index DXY shows where the flow of money is.Â
If DXY is going down, then Indices Markets are going up.
The second SMT is between the three indexes, Nasdaq US30 and S&P.
The 2 of them will often follow each other, and the third will need to be faster to react. Never all three at once.Â
This is called the leading index and delayed index. This is because buyers are loading up on one, and the other two are facing distribution to the opposite side.
SOPs
– This method is discussed in our intermediate and advanced courses in detail.
4. Price Action Trading
This strategy involves a technical comparison of historical prices to the current behavior of a currency pair or quote prices.Â
The most commonly used price action indicator includes the institutional price candlesticks, aka Institutional Order Blocks, and other aspects like old high/low and support and resistance to determine trading patterns, stop-losses, entries, and profit target levels.Â
You can also blend this trading method with technical indicators like support and resistance levels.


5. Breakout & Support & Resistance Trading Strategy
Most retail traders engage the market in two ways;
– They place stop orders in hopes that the market will activate them when the price makes a significant breakout of support or resistance levels.
– They place limit orders at support or resistance levels, often retested, assuming that these levels are strong enough to make prices respect them.
In contrast, the market makers manipulate these levels, and we can take advantage of engaging them at the right time.


6. Momentum Trading
This strategy involves engaging the market according to the strength of recent prices, in line with Institutional Order Flow.Â
The basis for the momentum strategy is that an asset price creating an imbalance on one side of the market will move powerfully in that direction and come back to mitigate before moving in the same direction until a certain point where institutional flow loses strength.


8. Fundamental Analysis
This strategy involves analyzing the economic, social, and political forces that may affect the supply and demand of an asset.Â
Here, you can use supply and demand zones (together with other price action techniques) to gauge which direction the price is likely to head.Â
The Fundamental analysis strategy then analyzes any factors affecting supply and demand. By assessing these factors, you can determine markets with a good economy and those with a bad one.


The Best Forex Strategies if You’re a Beginner
The secret of trading forex is to keep everything simple. You don’t need to learn everything to get money from the forex market.
And as a beginner, you must invest your time in getting the skills. You can only get the skills when accessible to suitable materials and mentors.
In our intermediate and advanced courses for institutional trading, we have blended the above strategy into a simple package that will make it easier to understand and gain the confidence to engage the market without fear.