95% Winning Forex Trading Formula

95% Winning Forex Trading Formula
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Welcome to the introduction to the Forex Master Pattern and basic strategy. Today, I’ll share a crucial aspect that forms the backbone of our methodology. Pay close attention, as understanding this pattern is fundamental to successful trading.

In this lesson, you’ll discover the Forex Master Pattern and learn how to identify it on any chart, regardless of the timeframe. This pattern is integral to understanding all movements in forex, and it’s often concealed by traditional indicators and technical analysis. I’ll guide you on seeing through the noise to uncover the truth of the market.

The Forex Master Pattern consists of three phases: contraction, expansion, and profit-taking or the trend phase. Let’s delve into the mechanics of each phase:

Contraction Phase:

  • This is the setup of the market, characterized by the tightening of the market.
  • It occurs due to low institutional volume, resulting in mostly sideways movement.
  • This phase is best avoided for trading, but understanding it is crucial for navigating the overall pattern.

Expansion Phase:

  • This phase involves increasing institutional volume, with the range opening up.
  • Smart money accumulates positions at discounted prices.
  • Dumb money often gets trapped in this phase, leading to losses for less experienced traders.

Profit-Taking or Trend Phase:

  • Institutional traders start taking profits, causing the market to move to higher or lower prices.
  • The market exploits fear of missing out (FOMO) to exit accumulated positions.
  • Most retail traders make temporary profits in this phase but often give them back in subsequent contraction and expansion phases.

Understanding these three phases is crucial for effective trading. Traditional indicators often mask this pattern, so clean charts are recommended for accurate analysis. Now, let’s explore why this pattern is essential:

  • This pattern is always unfolding, influencing trading decisions whether traders are aware or not.
  • It is observable on all time frames, providing a universal understanding of market behavior.
  • Having a clear grasp of this pattern offers a consistent and unchanging trading plan, eliminating the need for constant adjustments.

Ninety percent of traders lose money because they fail to grasp this pattern. Smart money traders capitalize on this lack of understanding, making it crucial for you to master the Forex Master Pattern.


Markets are belief-driven, with the current and future prices reflecting the beliefs of traders. Analyzing these beliefs, rather than focusing solely on prices, is key to successful trading. The market’s business model involves exploiting the beliefs of traders, and your goal is to align with smart money’s strategy.

The three phases of the market cycle are continually repeating. Each candle on a chart can be classified into one of these phases, providing a roadmap for understanding market movements.

Effectiveness as a trader depends on recognizing the current phase and interacting with it correctly. Your goal is to stay out of the contraction and expansion phases and focus on trading during the trend phase, where consistent profits can be achieved.

Now, let’s address some common questions:

Q1: Does news affect the pattern?

Scheduled news releases like NFP and GDP accelerate the pattern but don’t interrupt it. Unscheduled catastrophes may cause temporary market spikes, but the pattern typically resumes immediately.

Understanding the Forex Master Pattern and its three phases is foundational to our methodology. It equips you with the tools to navigate the market successfully and make informed trading decisions. In the next part, we’ll delve into the multi-time frame approach and explore strategies for interacting with these phases effectively.


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