In the Greek mythology, the Phoenix dies in a burst of flames combustion and rebirth by arising from the ashes of its predecessor.  Through the countless rebirth, the Phoenix generations has lived through ages as old as the universe. This is similar to our Entry Rule #1 - Color Changed of ThePhoenix System™.

There are only 3 simple Entry Rules and we only use M30 or D1 chart for trading

Rule #1

Color Changed (CC)

Rule #2

Opening Price (OP)

Rule #3

K Sentiment Indicator (KSI)

Rule #1 – Color Changed (CC)

There are only 2 colors on the ThePhoenix System Candlestick Chart – Red and Yellow. The colors are not associated with Bearish or Bullish. Look for Color Changed to enter a trade.

  • Color Change RED to YELLOW (CCRY) = Long

  • Color Change YELLOW to RED (CCYR) = Short

For instance, if you see a Red Bar first, then a completed Yellow Bar, we call this a CCRY.  This completed Yellow Bar is a Signal Bar to tell you that the Color Changed Red to Yellow has completed. Enter Long on the Open of the next bar after Yellow Signal Bar, we call this third bar an Entry Bar and the Open as Entry Price (EP).

On the contrary, if you see a Yellow Bar first, then a completed Red Bar, we call this a CCYR.  This completed Red Bar is a Signal Bar to tell you that the Color Changed Yellow to Red has completed. Enter Short on the Open of the next bar after Red Signal Bar, we call this third bar an Entry Bar and the Open as Entry Price (EP).

Rule #2 – Opening Price (OP)

Most often being ignored, but the Opening Price is the most important price for each trading day because it doesn’t change since the start of the trading day. OP is the Sentiment Pivot of the Day whereby as long as price remains above, the inclination that price will prevails. Inversely if price remains below OP, there exists selling pressure and odds are that price will either go down or face limited upside. This is used by the Big Boys for internal communication that if the OP is tested, they are signalling each other to get ready for a big movement.

  • Above OP = Look for CCRY

  • Below OP = Look for CCYR

The significance of Opening Price (OP) could never be ignored because it is the Big Boy’s Price for the Day. When price touches OP, it is usually followed by Color Changed and a sharp price rebound to the upside, or rejection to the downside from OP; and what follows is a big single directional move. When we say “Touch OP”,  we mean only the wick of the candle / tail of the bar pierce through OP and price retraces to close below or above OP. If the OP line is covered by the body of the candle/bar, it is NOT considered as a “Touch OP” setup. However, be doubly alert if sometimes it hovers up and down the OP line.

  • If price touches OP from top but fail to close below and did a CCRY (above OP) = Long Signal

  • If price touches OP from bottom but fail to close above and did a CCYR (below OP) = Short Signal

Rule #3 – K Sentiment Indicator (KSI)

K represents “Kanjō” (感情) in Japanese, or feelings / sentiment in English. KSI is an oscillating indicator in Green or Red to signal Big Boys’ Buying or Selling. There is no correlation between the price action on the chart to KSI. It is developed to track the Big Boy’s action of buying and selling that causes big volume of buys and sells leading to huge movement in price. With KSI, you are able to trade better with conviction when you know you are on the same side with the Big Boys and less affected by your feelings / emotions while on a trade.

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Students' Testimony

How Does ThePhoenix System™ Take Profit(TP)?

There are 3 ways to take profit

Fast In Fast Out (FIFO)

Chocolate Bar (CHOC)

Magical Blue Number (MBN)

Fast In Fast Out (FIFO)

This is the first profit target (TP1) to exit a position with a minimum pips/points of profit after entry. Thereafter, let the remaining position to run to TP2, TP3 etc by CHOC or MBN. Note that Fast has no indication to the duration taken to hit FIFO profit target. Below is the FIFO target for

  • FX: 8 ~ 10 pips

  • Crude: 25 ~ 30 cents

  • Gold: $1.50 ~ $2.00

  • Dow Jones: 25 ~ 30 points

Based on 6 years of statistical research, the possibility of seeing 8 ~ 10 pips from EP is above 65% in the FX market

  • Based on CC alone to hit 8 ~ 10 pips = 65%

  • Based on CC + OP aligned = 75%

  • Based on CC + OP + KSI aligned = 85%

Chocolate Bar (CHOC)

There are 2 types of Chocolate Bars, Dark and White. Similarly, there are also 2 types of “chocolate” bars in ThePhoenix System, Red and Yellow. The name comes from the feeling of bliss when one eats a chocolate bar, similar to when a CHOC profit target was hit on a trade.

The theory draws from the idea that the market goes up in a similar way to how it comes down because most of the trading are by high frequency trading (HFT) algorithm programmed by mathematicians. Look from Right to Left for ‘unblocked’ body of bar(s) and use its Open Price for TP. To qualify for ‘unblocked’, the Body of the Bar cannot be blocked by the both the Body or Tail of any of the bar(s) in front of it.

  • CCRLong, look to the left for Red Chocolate Bar and set TP at its OP

  • CCYShort, look to the left for Yellow Chocolate Bar and set TP at its OP

CHOC can only be used as a guideline for TP, it might not hit every TPs, therefore we should always close partial position by FIFO to lock in some profits and let the remaining position to run. We can keep looking to the Left to look for more CHOC bars but remember don’t be greedy and allow some buffer on the TP as there are spreads from the House. The beauty of reading Chart from Right to Left is, you will always have the latest ‘unused’ TP to use rather than looking at a void space in the Right.

Magical Blue Number (MBN)

A blue number on the Chart calculated by an algorithm designed to ascertain the Stop Loss levels placed by retail traders. MBN is not a Support or Resistance level that can be traded on by itself. MBN is where the Stop Orders are around, hence there will be heavy support or resistance as the market goes near it; very often price will rebound or reject after hitting the MBN.

All trading losses can be narrowed down to 2 reasons: (1) Overtrade either in lot size or trade frequency; (2) Stop Loss being triggered.

Overtrade can be overcome by (a) position sizing; (b) not trading every setup; (3) avoid early exit due to fear of giving back a small profit that misses on a bigger winning ride.

Stop Loss being triggered, more often than not, is a result from being hesitant to cut loss and take a leap of faith to pray that the price will turn around in favour. Many traders even shift the original Stop Loss level to avoid being triggered. Unknowingly to many new traders, these bad habits can lead to margin calls and account bust in extreme cases because what they are doing is actually allowing a small loss to become big.

Have you ever wondered why your Stop Loss orders being triggered by the market recover and move towards the original direction AFTER you were stopped out? WHY? Are you a Jinx? The face is 93% of the traders in the whole world laments about the same misfortune as you!

This is because the market is never our game from the beginning. It’s the Big Boys’ Game but they lure you into the game by setting up some signals, trace your entry to the Left to hunt for your Stop Loss either by support/resistance level, trendline breakout/rebound or some Candlestick / Western Pattern, and go for the KILL!

Wake up and think again! If you have not noticed after years of trading, the Stop Loss levels between two traders or even more, are not very much different! Why does so many traders use exactly the same Stop Loss level? It is because we are taught the same way from the same Source – the Technical Analysis we found from textbooks, internet, etc. From the start, the Boys poisoned the Source and hacked into our brain to win money by learning Technical Analysis.

Now that you gain the awareness that all these Stop Loss are pre-determined and can be traced one by one. The ONLY logical thing to do is to follow the Boys and use all these Stop Loss placed by most traders as Take Profit (TP) level, and this is the Magical Blue Number (MBN).

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ThePhoenix System™ Arrows


Arrows are specific Patterns based on price that appears on selected candles to tell you if more common traders will buy or sell. Arrows are NOT used as an entry signal. Arrows are either in Green or Pink color.

  • Green Arrows = Bullish, normally common traders will go into BUY mode

  • Pink Arrows = Bearish, normally common traders will go into SELL mode

Arrows are categorized as Real or Fake.

  • If the next bar closes above (below) the bar with Green Arrow, then this Green Arrow is Real (Fake);

  • If the next bar closes above (below) the bar with Pink Arrow, then this Pink Arrow is Fake (Real)

Confluence of Arrows happen when Green and Pink Arrow come within 2~3 bars. Normally such signal indicates an imminent bigger movement. Follow the Color Changed signal for entry or exit to cut loss. Do NOT be stubborn with your trade if you are on the wrong side.

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ThePhoenix System™ Stop Loss (SL)

Stop Loss

Stop Loss is never an art, it’s a science in ThePhoenix™ System. It is not set based on a certain number of pips or determined by support/resistance, trendline or any technical indicators. Every user of the system use the exact same Stop Loss.

There are 3 rules to Stop Loss –

  • Rule 1: Always read the Chart from Right to Left

  • Rule 2:

    • For Long, identify the nearest Lowest Point before Entry Bar (V-shaped valley);

    • For Short, identify the nearest Highest Point before Entry Bar (inverted V-shaped peak)

  • Rule 3: Always include Buffer from this point

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The 16-3-3 Classification

On average, each calendar month has 22 trading days and it seems that, 16 days will be Directional Day (DD), 3 days will be Swing Day (SW) and 3 days will be Doji Day (DJ). The 16-3-3 classification is to capitalize on potential days after Doji, whereby there is high chance of nice directional movement to ride on for bigger gains.

The 16-3-3 Classification can only be used to trade currencies. : Directional Day (DD); Swing (SW); Doji (DJ). We can use these patterns to aptly plan our trading to capitalize on the upcoming Directional Day after a Doji.

  • Directional Day (DD) usually occurs in 2~3 consecutive days

  • Doji Day (DJ) usually follows after a Swing Day (SW)

  • Directional Day (DD) usually follows after a Doji Day

Directional Day (DD): At the start of the day, it goes sluggish usually but it floats away from OP pretty nicely, then price begins to move very nicely in one direction when the big movement comes in the mid day and throughout the rest of the day without much swings or retracement in between and usually close at the high or low of the day. Normally we will see 2~3 DD before a SW or DJ appears. The body itself will take approximately 70% of the Day Range. The body is big as compared to the tail. Best for capitalizing to ride higher pips.


Swing (SW): Seemingly on the way up (down) initially causing the feel that the market is going to go up just like a DD but suddenly retrace all the way to cross the OP and closed below (above) OP. Technically, the distance from Opening Price OP to Day High DH is approximate OP to Closing Price CLP; or inversely Opening Price OP to Day Low DL is approximately equal to Opening Price OP to Closing Price CLP. Swing Day is usually followed by a Doji Day.

  • Day Open – Day Low ≈ Day Close – Day Open (Bullish Day)

  • Day High – Day Open ≈ Day Open – Day Close (Bearish Day)


Doji (DJ): Opening Price (OP) and Closing Price (CLP) are very near to each other. Market is indecisive for the day. Price went up, come down repetitively, no movement, no direction, the range is very small. Chances of a Directional Day on the next day is pretty high.

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