Forex Cheat Sheet
Everything you need at a glance: pip sizes, lot sizes, the key formulas, session times, candle patterns, indicator defaults, order types and a pre-trade checklist. Bookmark this page.
Pip Sizes
| Pair type | Example | 1 pip | 1 pipette | Example move |
|---|---|---|---|---|
| Most pairs (4 decimals) | EUR/USD 1.0850 | 0.0001 | 0.00001 | 1.0850 → 1.0875 = 25 pips |
| JPY quote pairs (2 decimals) | USD/JPY 150.00 | 0.01 | 0.001 | 150.00 → 150.40 = 40 pips |
| Gold (varies by broker) | XAU/USD 2,400.00 | often 0.10 | 0.01 | Check your broker's spec |
Pips = (Price difference) ÷ (Pip size)
More: Pips & Pipettes.
Lot Sizes & Pip Values
| Lot | Units | Volume | Pip value, xxx/USD |
|---|---|---|---|
| Standard | 100,000 | 1.00 | $10.00 |
| Mini | 10,000 | 0.10 | $1.00 |
| Micro | 1,000 | 0.01 | $0.10 |
| Nano | 100 | 0.001 | $0.01 |
Pip value per standard lot (USD account, example prices)
| Pair | Price | Calculation | Pip value |
|---|---|---|---|
| EUR/USD, GBP/USD, AUD/USD | any | 100,000 × 0.0001 | $10.00 |
| USD/JPY | 150.00 | 100,000 × 0.01 ÷ 150.00 | $6.67 |
| USD/CAD | 1.3600 | 100,000 × 0.0001 ÷ 1.3600 | $7.35 |
| USD/CHF | 0.8800 | 100,000 × 0.0001 ÷ 0.8800 | $11.36 |
| EUR/GBP | 0.8545 | £10 × GBP/USD 1.2700 | $12.70 |
| GBP/JPY | 190.50 | ¥1,000 ÷ USD/JPY 150.00 | $6.67 |
Key Formulas
| What | Formula | Example |
|---|---|---|
| Pips | Price change ÷ pip size | (1.0910 − 1.0850) ÷ 0.0001 = 60 pips |
| Pip value (USD quote) | Units × pip size | 100,000 × 0.0001 = $10 |
| Pip value (USD base) | Units × pip size ÷ price | 100,000 × 0.01 ÷ 150 = $6.67 |
| Profit / loss | Pips × pip value × lots | 60 × $10 × 0.5 = $300 |
| Position size (lots) | Risk $ ÷ (stop pips × pip value per lot) | $100 ÷ (25 × $10) = 0.40 lots |
| Margin | Units × price (in account currency) ÷ leverage | 100,000 × 1.0850 ÷ 30 = $3,616.67 |
| Risk:reward | Reward pips ÷ risk pips | 60 ÷ 30 = 1:2 |
| Break-even win rate | 1 ÷ (1 + R) | R = 2 → 1 ÷ 3 = 33.3% |
| Expectancy (per trade) | (Win% × avg win) − (Loss% × avg loss) | 0.45 × $200 − 0.55 × $100 = $35 |
| Drawdown recovery | D ÷ (1 − D) | 20% loss → 0.20 ÷ 0.80 = 25% gain needed |
| Free margin | Equity − used margin | $10,000 − $3,617 = $6,383 |
| Margin level | Equity ÷ used margin × 100 | $10,000 ÷ $3,617 × 100 = 276% |
Drawdown recovery table
| Loss | 10% | 20% | 25% | 30% | 40% | 50% | 75% |
|---|---|---|---|---|---|---|---|
| Gain to recover | 11.1% | 25% | 33.3% | 42.9% | 66.7% | 100% | 300% |
Leverage caps (retail, major pairs)
UK (FCA), EU (ESMA/CySEC), Australia (ASIC): 1:30 · US (CFTC/NFA): 1:50. Minor pairs and gold have lower caps.
Session Times (UTC)
| Session | Northern winter (approx.) | Northern summer (approx.) | Busy pairs |
|---|---|---|---|
| Sydney | 20:00 – 05:00 | 21:00 – 06:00 | AUD, NZD |
| Tokyo | 00:00 – 09:00 | 00:00 – 09:00 | JPY, AUD |
| London | 08:00 – 17:00 | 07:00 – 16:00 | EUR, GBP, CHF |
| New York | 13:00 – 22:00 | 12:00 – 21:00 | USD, CAD |
| London–NY overlap | 13:00 – 17:00 | 12:00 – 16:00 | Most liquid hours |
The market opens Sunday ~21:00–22:00 UTC and closes Friday ~21:00–22:00 UTC. More: Trading Sessions.
Candlestick Patterns Summary
| Pattern | Candles | Signal | What to look for |
|---|---|---|---|
| Hammer | 1 | Bullish reversal | Small body at top, lower wick ≥ 2× body, after a decline |
| Shooting star | 1 | Bearish reversal | Small body at bottom, long upper wick, after a rise |
| Doji | 1 | Indecision | Open ≈ close; meaningful at key levels |
| Bullish engulfing | 2 | Bullish reversal | Green body fully covers prior red body |
| Bearish engulfing | 2 | Bearish reversal | Red body fully covers prior green body |
| Pin bar | 1 | Rejection | Long wick pointing into a level that was rejected |
| Inside bar | 2 | Continuation / breakout | Second candle's range inside the first |
| Morning star | 3 | Bullish reversal | Big red, small body, big green closing into first body |
| Evening star | 3 | Bearish reversal | Big green, small body, big red closing into first body |
| Three white soldiers / black crows | 3 | Strong momentum | Three strong candles in a row, small wicks |
More: Candlestick Patterns.
Indicator Defaults
| Indicator | Default settings | Key levels / signals |
|---|---|---|
| SMA / EMA | 20, 50, 200 (SMA); 9, 21 (EMA) | Price above 200 = long-term uptrend; crossovers |
| RSI | 14 | > 70 overbought, < 30 oversold, 50 = trend filter |
| MACD | 12, 26, 9 | Signal-line cross, zero-line cross, divergence |
| Bollinger Bands | 20, 2 std dev | Squeeze = low volatility; band walks in trends |
| Stochastic | 14, 3, 3 | > 80 overbought, < 20 oversold |
| ATR | 14 | Stops at 1.5–2 × ATR |
| Fibonacci retracement | 23.6, 38.2, 50, 61.8, 78.6% | 61.8% "golden ratio" |
| Fibonacci extension | 127.2, 161.8, 261.8% | Profit targets |
| Pivot points (classic) | P = (H + L + C) ÷ 3 | R1 = 2P − L, S1 = 2P − H |
Order Types
| Order | Placed | Use it when |
|---|---|---|
| Market | Fills now at best price | You want in immediately |
| Buy limit | Below current price | Buy a pullback to support |
| Sell limit | Above current price | Sell a rally into resistance |
| Buy stop | Above current price | Buy an upside breakout |
| Sell stop | Below current price | Sell a downside breakout |
| Stop loss | Against your trade | Cap the loss |
| Take profit | In favour of your trade | Lock in a target |
| Trailing stop | Follows price by a set distance | Protect profit in a trend |
| OCO | Two orders, one cancels the other | Trade a breakout either way |
Buy orders fill at the ask; sell orders fill at the bid. More: Order Types.
Pre-Trade Checklist
- Does this setup match my written trading plan?
- What is the higher-timeframe trend? Am I trading with it?
- Where are the key support and resistance levels?
- Any high-impact news in the next few hours? (Check the economic calendar.)
- Is the spread normal right now?
- Stop loss placed at a logical level, not just a round number of pips?
- Position size calculated for 1% risk or less?
- Risk:reward at least 1:1.5 (or matching my tested system)?
- Total open risk and correlated exposure within my limits?
- Am I calm, rested and not chasing a loss?
- Trade recorded in my journal?
Test Yourself With Exercises
What gain do you need to recover from a 40% drawdown?
- 40%
- 66.7%
- 80%
0.40 ÷ (1 − 0.40) = 0.40 ÷ 0.60 = 66.7%.
You want to buy EUR/USD at support, below the current price. Which order do you use?
- Buy stop
- Sell limit
- Buy limit
A buy limit is placed below the current price to buy a pullback.
Account $8,000, risk 1%, stop 20 pips on GBP/USD. What position size?
- 0.40 lots
- 4.00 lots
- 0.04 lots
- 0.80 lots
Risk = $80. $80 ÷ (20 × $10) = 0.40 lots.
What are the default MACD settings?
- 14, 3, 3
- 20, 2
- 9, 21
- 12, 26, 9
MACD uses a 12 EMA, a 26 EMA and a 9-period signal line: 12, 26, 9.