Trend continuation
Higher lows, pullback hold, then continuation.
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Range rejection
Support and resistance define the trade area.
Breakout and retest
The retest is where risk becomes cleaner.
Event spike
News can invalidate technical setups fast.
Risk map
Entry, stop and target must fit before action.
Energy shock
Oil headlines can move inflation and FX expectations.
Investor concepts library
Fast definitions, practical examples and simple chart sketches. Use this as a desk reference before asking Milo for a live read.
Market Basics
Bid and ask
The bid is where buyers pay. The ask is where sellers offer.
Example: If EURUSD is 1.1000 / 1.1001, the spread is 0.1 pip.
Spread
Spread is the cost between bid and ask.
Example: A tight EURUSD spread helps short-term trades more than a wide exotic spread.
Pip
A pip is the standard FX price step.
Example: EURUSD moving from 1.1000 to 1.1010 is 10 pips.
Point
A point is the smallest price movement on some CFDs.
Example: Gold moving from 2350.10 to 2350.20 is one 0.10 point move.
Lot size
Lot size controls exposure.
Example: A larger lot makes the same 20-pip move worth more money.
Leverage
Leverage increases exposure without paying full notional value.
Example: High leverage can make a normal pullback become a large account loss.
Margin
Margin is capital locked to hold a position.
Example: If margin is too high, you have less room for other trades.
Margin call
A margin call means account equity is too low for open exposure.
Example: A losing gold position can force closure if equity falls below broker rules.
Liquidity
Liquidity is how easily a market trades without large price jumps.
Example: EURUSD is usually deeper than a small equity CFD.
Volatility
Volatility measures how far price moves.
Example: Gold may need wider stops than EURUSD during geopolitical headlines.
Session
Sessions shape liquidity and volatility.
Example: London often brings stronger FX flow than late New York afternoon.
Rollover
Rollover is overnight financing on leveraged positions.
Example: Holding a carry position for weeks can add or subtract meaningful cost.
Slippage
Slippage is the difference between expected and filled price.
Example: News orders can fill worse than planned during a fast CPI print.
Market order
A market order prioritizes execution over price.
Example: Useful when exit speed matters more than perfect entry.
Limit order
A limit order waits for a chosen price.
Example: Buying EURUSD only if it retests support avoids chasing.
Price Action
Trend
A trend is repeated directional pressure.
Example: Higher highs and higher lows show buyers remain in control.
Range
A range is a market rotating between support and resistance.
Example: Fade edges only if the middle is avoided.
Breakout
A breakout is price leaving a known range.
Example: A close above resistance matters more than a quick wick.
False breakout
A false breakout traps late traders.
Example: Price breaks R1, fails, then closes back inside the range.
Retest
A retest checks whether a broken level now holds.
Example: Old resistance becoming support is a cleaner long location.
Support
Support is a zone where buyers previously defended price.
Example: Gold holding the same low twice can create a reaction zone.
Resistance
Resistance is a zone where sellers previously capped price.
Example: Repeated rejection near 1.0900 can define EURUSD supply.
Higher low
A higher low shows buyers stepping in earlier.
Example: A pullback that holds above the prior low supports bullish bias.
Lower high
A lower high shows sellers defending earlier.
Example: A failed rally below the prior high supports bearish bias.
Momentum
Momentum shows the speed of price movement.
Example: Fast candles through resistance need confirmation before chasing.
Exhaustion
Exhaustion appears when a move stretches and stalls.
Example: A strong gold rally into resistance may need a retest first.
Wick rejection
A wick shows price rejection from a level.
Example: A long upper wick near resistance warns buyers lost control.
Close confirmation
A close filters noise better than an intrabar spike.
Example: An H1 close above pivot is stronger than a one-minute pop.
Inside bar
An inside bar shows compression.
Example: Breaks after compression can expand quickly.
Engulfing candle
An engulfing candle shows one side taking control.
Example: A bearish engulfing at resistance can mark a reversal attempt.
Gap
A gap is a price jump between sessions.
Example: Weekend geopolitical news can gap gold at open.
Pullback
A pullback is a pause inside a trend.
Example: Buying a pullback to EMA support can improve risk reward.
Mean reversion
Mean reversion expects price to return toward average.
Example: A stretched M15 move may drift back to VWAP.
Continuation
Continuation means trend resumes after pause.
Example: A bull flag that holds support can continue higher.
Structure break
A structure break changes the market map.
Example: Losing the last higher low weakens the bullish case.
Risk
Risk per trade
Risk per trade is the amount you accept losing.
Example: A 1% risk rule keeps one bad trade from damaging the account.
Stop loss
A stop loss defines where the idea is wrong.
Example: A long below support should usually fail if support breaks.
Invalidation
Invalidation is the condition that cancels the trade idea.
Example: If H1 closes back below pivot, the long setup is invalid.
Position size
Position size converts stop distance into account risk.
Example: A wider gold stop needs smaller size.
Risk reward
Risk reward compares possible loss with possible gain.
Example: Risking 20 pips to target 60 pips gives 1:3.
Drawdown
Drawdown is account decline from peak equity.
Example: A 10% drawdown needs 11.1% gain to recover.
Correlation risk
Correlation risk is hidden exposure across similar trades.
Example: Long EURUSD and short USDCHF both lean against USD.
Event risk
Event risk is loss from scheduled or surprise news.
Example: CPI can break a good technical setup in seconds.
Gap risk
Gap risk appears when price opens far from prior close.
Example: Weekend gold positions can open beyond the planned stop.
Liquidity risk
Liquidity risk rises when order books thin.
Example: Late Friday or holidays can widen spreads.
Overexposure
Overexposure means too much account risk is open.
Example: Five small USD trades can become one large USD bet.
Hedging
Hedging reduces or offsets directional exposure.
Example: A gold short can be partially hedged by reducing size or adding offsetting exposure.
Scaling in
Scaling in adds exposure after confirmation.
Example: Add only after a retest holds, not while chasing.
Scaling out
Scaling out locks part of the trade as price moves.
Example: Taking partial profit at R1 reduces emotional pressure.
Trade expectancy
Expectancy combines win rate and reward.
Example: A 40% win strategy can work if winners are much larger than losers.
Macro
Interest rates
Rates influence currency value and equity multiples.
Example: A hawkish Fed can support USD and pressure gold.
Inflation
Inflation changes central bank expectations.
Example: Hot CPI can lift yields and move USD pairs quickly.
Central bank tone
Tone matters as much as the rate decision.
Example: A hold with hawkish language can still move the currency higher.
GDP
GDP shows economic growth.
Example: Weak growth can pressure a currency if rate cuts become likely.
Jobs data
Employment affects rate expectations.
Example: Strong payrolls can support USD if yields rise.
PMI
PMI shows business activity.
Example: Weak Eurozone PMI can pressure EUR crosses.
Retail sales
Retail sales measure consumer demand.
Example: Strong UK sales can support GBP if rate expectations firm.
Trade balance
Trade balance affects currency flow over time.
Example: Persistent deficits can weigh on sentiment.
Risk sentiment
Risk sentiment shows market appetite for exposure.
Example: Risk-off flows can lift USD, JPY and gold.
Safe haven flow
Safe havens attract demand during stress.
Example: Gold can rise when geopolitical risk increases.
Yield spread
Yield spread compares rate advantage between economies.
Example: Wider US-German spreads can support USD against EUR.
Oil shock
Oil moves inflation and energy-sensitive currencies.
Example: Higher oil can support CAD but pressure importers.
Geopolitical risk
Geopolitics can override technicals.
Example: Escalation headlines can push gold through resistance.
Forward guidance
Forward guidance tells markets what policy may do next.
Example: Cut-delay language can be more important than the current rate.
Data surprise
The surprise versus forecast drives reaction.
Example: A small beat may matter less than a big forecast miss.
Repricing
Repricing means markets adjust expectations.
Example: A shift from two cuts to no cuts can move USD for days.
Real yields
Real yields adjust nominal yields for inflation.
Example: Higher real yields can pressure gold.
Dollar index
DXY tracks broad USD strength.
Example: A rising DXY can cap EURUSD and gold rallies.
Risk premium
Risk premium is extra price for uncertainty.
Example: War risk can add premium to oil and gold.
Liquidity window
Important news matters more when liquidity is high.
Example: London and New York overlap can amplify moves.
Instruments
EURUSD
EURUSD is the most liquid FX pair.
Example: It often reacts to Fed, ECB and yield-spread changes.
GBPUSD
GBPUSD is sensitive to UK data and risk tone.
Example: Cable can move sharply around BoE pricing.
USDJPY
USDJPY tracks yield spreads and intervention risk.
Example: A fast rally can reverse if Japanese officials warn markets.
USDCHF
USDCHF often reflects risk and European flows.
Example: Safe-haven CHF can strengthen during stress.
AUDUSD
AUDUSD responds to China, commodities and risk appetite.
Example: Weak China data can weigh on AUD.
USDCAD
USDCAD reacts to oil and rate spreads.
Example: Rising oil can support CAD if USD is not dominant.
Gold
Gold responds to real yields, USD and risk.
Example: Higher real yields can cap gold unless haven demand dominates.
WTI oil
WTI reacts to inventory, OPEC and demand expectations.
Example: Supply cuts can support oil into resistance.
Brent oil
Brent reflects global crude benchmarks.
Example: Middle East headlines can widen risk premium.
Stock CFD
Stock CFDs track company price action with leveraged exposure.
Example: A stock CFD can gap around earnings or guidance.
Index CFD
Index CFDs reflect broad equity baskets.
Example: A risk-off day can drag most index constituents lower.
Cross pair
A cross pair removes USD from the quote.
Example: EURGBP depends on relative euro and sterling strength.
Commodity currency
Commodity currencies react to resource prices.
Example: CAD can move with oil; AUD can move with metals and China data.
Defensive stock
Defensive stocks may hold better in stress.
Example: Utilities can outperform during equity weakness.
Growth stock
Growth stocks are sensitive to rates.
Example: Higher yields can pressure long-duration equities.
Execution
Trade plan
A trade plan defines entry, stop, target and reason.
Example: No plan means every candle can change your mind.
Entry zone
An entry zone is an area, not one magic price.
Example: Buying near support gives better risk than chasing mid-range.
Trigger
A trigger confirms when to act.
Example: A close above resistance can trigger a breakout plan.
Confirmation
Confirmation reduces false entries.
Example: Wait for retest hold before entering after a breakout.
Chasing
Chasing means entering after price already moved too far.
Example: A late gold long into resistance has poor risk reward.
Patience
Patience means waiting for location.
Example: No trade is better than a trade with unclear invalidation.
Timeframe alignment
Alignment improves confidence.
Example: M15 long setup is stronger if H1 structure also supports it.
Top-down analysis
Top-down starts with higher timeframe context.
Example: Daily trend plus H1 trigger gives cleaner planning.
Multi-timeframe conflict
Conflict means timeframes disagree.
Example: Avoid forcing M1 longs into H1 resistance.
Watchlist
A watchlist reduces decision fatigue.
Example: Track EURUSD, gold and oil instead of scanning everything blindly.
Journal
A journal records decisions and outcomes.
Example: Reviewing screenshots shows if you chase or wait.
Partial close
Partial close reduces open risk.
Example: Take some profit at first resistance and let the rest work.
Break-even stop
Break-even stop removes downside after movement.
Example: Move too early and normal pullback can stop a good trade.
News filter
A news filter blocks trades near high-risk events.
Example: Avoid fresh entries minutes before CPI unless planned.
Session close
Session close can change liquidity.
Example: Do not assume late-day moves have the same quality as London flow.
Mindset
Discipline
Discipline means following the plan under pressure.
Example: Cut when invalidated instead of hoping.
FOMO
FOMO is fear of missing out.
Example: If price already ran into resistance, wait for the next setup.
Overtrading
Overtrading means taking low-quality setups.
Example: Three clear trades beat ten emotional clicks.
Bias
Bias is your market lean, not a guarantee.
Example: Bullish bias still needs a valid entry and stop.
Confirmation bias
Confirmation bias ignores opposing evidence.
Example: A long idea must still respect bearish news and resistance.
Loss acceptance
Loss acceptance keeps one trade small.
Example: A planned stop is business cost, not a personal failure.
Process focus
Process focus values decision quality.
Example: A good loss can be better than a lucky win.
Patience after loss
Do not revenge trade after a stop.
Example: Wait for the next clean location.
Confidence
Confidence comes from repeatable rules.
Example: Know what must happen before you enter.
Review
Review turns trades into learning.
Example: Save the chart, the reason and the outcome.
Use the concepts with live market context.
Ask Milo about FX, stock CFDs, gold or energy. Get scenarios, invalidation, news context and risk levels before you act.
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