Introduction

Forex is:
• 50% Winning Psychology
• 20% Strategy
• 30% Money Management.
The trading psychology includes mindfully handling greed, fear, patience,
confidence and discipline. Learn to grow your account with discipline.
You have to stick with the rules of that strategy.
Many losses in forex come from bad risk management and greed.

Treating Forex like a Business

The most successful businesses don’t focus on the money. They focus on
the quality of their product – their mix; they focus on the factors that make
them money, not on the money itself (e.g. perfecting your strategy;
research; money management etc.). Moreover, they manage the money
they have in the business well: proper management of existing funds.
What is your plan to raise your business from an underdog firm to a six-
figure empire?

What is the Market?

The Market Makers are paid to collect VOLUME - where Liquidity is found.
In Forex, good entry is key. It is important to note that when you are
perfecting your strategy, pay special attention to perfecting your entries.
You target where the volumes are and you trade with the
Institutional traders because they collect volumes.
Once you can identify where volumes are, you have identified where the
MM trades from and you trade with them. Volume is where the money is.
As a trader, we can’t see volume, but we know where it’s found.
Trapped volume can be identified with pins from the bottom and pins
from the top and on areas of consolidation/accumulations on YH,YL, WH,
WL, MH , ML etc.

Also note that: the higher the timeframe, the higher the volume.
We only trade from areas where there is Volume.
 Remember, trading is 50% psychology, and part of that psychology is
patience. Be patient for the market to get to where there is volume.

We trade only from those areas where volume is trapped. In order to catch
these volumes, we focus our setups on the:
• Monthly High and Low
• Weekly High and Low
because these are the areas where volumes are found.

Psychology
How to deal with Emotions
Emotion Solution
Greed o Focus on market structure and
not the $$$.
Fear o Trade mechanically
Patience o Just wait for you setup; wait for
your TP.
Confidence o Back testing your strategy with
100 Flash cards
o Research and Development
Discipline o Creating rules that you follow
no matter what

Market Analysis for the Week Sunday Evening

Market Analysis for the Day Evening for the Day

Mindset: The more you chase money the more it runs away from you.
Desire means you don’t have. Don’t put out energy of lack into the
universe. Your energy will push away what you want. Fear will push away
what you want.

Principles
Market Analysis
ACTIVITY TIME
Setting Daily Objectives 12am
Meditation, Visualisation and Affirmation 4am
Market Analysis 4:30am

Rule of 100: Only trade something you have seen a hundred times before.
You should do all your assessments, first at night and then in the morning
by:
• Market Structure: (BTMM + Price Action)
• Assessing all possibilities and how you will respond to each of them.
State which trade you are taking there. What conditions are
necessary in order for you to take the trade in that pair.
• Journaling your analysis to prepare for the trading day ahead.
You need to have a strict system that you follow every single day for when
you do your market analysis.
Each pair will have 2 charts open:
• BTMM
• Price Action - Have a market profile chart that shows you key value
areas – where the most volume has been traded; the key turning
points

Your job as a trader is to make the best possible trades.

Is the market a bear market or a bull market? Everything else follows from
that. Know what kind of a market you are in. Whatever system you use,
you need to know which direction the market is going. Is your entry based
on a trending market or a ranging market?
RESEARCH -> ANALYSE -> INVEST
Top down analysis: W -> D -> H4 -> H1 -> M15 -> M5 -> M1
Choose one thing, one aspect of the MMM that you are going to master
and develop it. Know it so well that you are never mistaken. You should
never look to trade all MMM setups.

Initially aim for about 25-30 pips a day and then 45 - 50

At the end of the month -> read your Journals.
If you are in a level, write down what you expect to see – forecast and put
that on the chart.
PLAN THE TRADE ALWAYS. NO PLAN NO TRADE!!!
Plan for and forecast trades such that you enter what you saw coming.

You should be wrong (take a loss) because the market was either not
ready to move or the Market Makers came back for stop hunts to collect
more volume - NOT because you traded the wrong setup or you entered
in the wrong market structure or emotionally or bad timing.

One Trade Philosophy

One trade should not:
1. Break your account
2. Break your confidence
3. Break your spirit
4. Define you as a trader
5. Define you as a person
6. Break your belief system
7. Derail your success
8. Over excite you
Win or lose, one trade is simply one trade!!!

Create your own watchlist for the week. Look at the possibilities and go
for the possibility with the highest probability.

The idea and the belief is that if you can make $20, then you can make
$200; if you can make $20, you can make $2000. You just have to learn
how to make $20. You have to learn how to make that $20 consistently.

Whenever you enter the market – whether it is the first entry or it is to

scale a trade – always enter two positions so that you close at least one
and leave at least one running.
When your equity gets to a certain level – close all positions and start
working from the new balance (maybe close when equity is 3 times the
original balance)
Trade only the easiest setups - ALWAYS LOOK FOR THE EASIEST
THINGS IN THE MARKET
I know this kind of trade and it always presents itself this way.
Never force trades – if on a particular day your setup does not present, it
is a day off for you.
Don’t stick to one pair – analyse every pair – look at their setups – which
one is easier to trade
Clean setup with an easy entry. And make sure that you only trade that
pair.
Whilst you are swinging a pair – close some positions as it moves in order
for you to build equity.

Technical Analysis
Market Maker Zones
LEVEL DESCRIPTION
0 Major
1 Major
0.25 Minor
0.5 50% Minor
0.75 Minor
0.125 Pullback
0.375 Pullback
0.625 Pullback
0.875 Pullback
0.1875 Pivot
0.31 Pivot
0.4375 Pivot
0.5625 Pivot
0.6875 Pivot
0.8125 Pivot
0.9375 Pivot
0.0625 Pivot
So, you use Market Structure asking:
• What MM level are we in?
• Where is it likely to retrace?
• What is the bias in terms of Market direction?
Use these zones as confluence for part of your strategy. Have a separate
chart from your BTMM to mark your zones.
They leave M/W, railroad track, wicks at these zones.
Try see if you can use this to increase accuracy to M1 entries.
Looking for where price is likely to reverse. Look for confluence:
• Major EMA
• Reversal Chart Pattern
• Trendline retest
• Shark Fin
• Reversal Candlestick Pattern

How to Draw Zones

1. Go on a weekly timeframe and zoom it out. Look for the highest
point on the chart and the lowest point on the chart.
2. Look for where price is because this is where it is relevant.
3. Draw the Fib tool between two zones and mark the 50% Minor
Major Zones Most important Zones
Minor Zones Zones where the market hits the
most and turns at the most
Pullback Zones Where the market hits the most or
turns at the most or holds at these
zones the most
Pivot Points Where the market is currently at on
the daily timeframe 90-95% of the
time.
Using these zones you can predict a reversal before it happens
You will know where price is going to turn 90% of the time.

Price Action

Resets
There are 4 types of Intra-Day resets
Type A Type B

Type C Type D
Define your good quality and bad quality trades – have a Trade Quality
Score Matrix.

1. Consolidation

To be able to identify areas of consolidation.

2. Correction and Impulse moves with Levels count
 3. Consolidation -> Move – you should be able to anticipate the move
that the Market Makers will make

Consolidation: MM’s are accumulating contracts

4. M-Top Appears at the HOD + Liquidity Zone. If we don’t get the M
at a Liquidity Zone, we do not take it.
5. ILOD-IHOD spread <= 50 Pips.

ALWAYS TRADE AWAY FROM THE PEAK!!!

The peak is set. Your job as a trader is to always trade AWAY from the
peak!!! That is your assignment.
Questions to ask yourself:
1. On this day, where is the peak formation???
2. Where is the peak formation this week?
If you don’t see a visible stop hunt and peak formation ask yourself: Why
am I trading?
Every time you want to enter a position: Ask yourself why you are entering!

6. W-Pattern appears at LOD + Liquidity Zone. If we don’t get the W

at a Liquidity Zone, we do not take it.
7. Stop Loss should be there to say: if I am wrong, price would have
come to this price – it would have left a certain zone.
A: Market makers want to induce retail traders to trade in the wrong
direction
B: The W formation is to mess with traders psychologically and to hit the
stop losses
Always remember, when you are trading, ask what the market is telling
you: don’t assume that the Market Maker is forming this structure to trap
volume. There should be signals that tell you that the MM is trapping
volume and is about to reverse. Never assume that the MM is doing
something. Have a robust checklist that tells you that this is what the MM
is doing.

Golden Cross
A golden cross is a strong trend continuation. It happens when the
50/200/800 EMAs cross.
It forms on all timeframes form M1 -> Weekly
When you see the golden cross, after price crosses it, it will pull back to
the water/that crossover and you take the trade.

A: MMs hold this level

B: Show a continuation move before reversing.
Before anything, always know where you are in the cycle using Top-Down
Analysis

MAAW and WVVM

M and W – Peaks
A and V – Pullbacks – Resets on Lower Timeframes.

TRADE M, W, A AND V
A AND V – PULLBACK TO THE WATER AND SHARK FIN ON TDI – WRITE
MORE CONFLUENCE NOTES

M and W Variations
 • Choppy
• Triple Top
• Head and Shoulders & Inverse Head and Shoulders
A variation – M
V variation – W

Once you identify the MMs anchor lock for that week, trade away from it
for 2 ½ to 3 trading days.

1. Rules for trading an M

2. Rules for trading an W
3. Rules for trading an A
4. Rules for trading an V
Enter on M15 (I want to get to M1 entries) -> use higher timeframes to see
the bigger picture.

TRY – See the 2nd leg M/W forming on the H1 -> see it forming on the
M15 and see it forming on the M5 and M1. Look at TDI behaviour
throughout and which levels the market is respecting.

TDI Resistance Levels, Volatility Bands

Every time it pulls back to the 50 EMA – it is a reset on a lower timeframe.

The MMs have to complete the cycle on all timeframes. 3 levels on the
M1, 3 levels on the M5, 3 levels on the M15, 3 levels on the H1, 3 levels on
the H4, 3 levels on the Daily.
Focus on the H1, entries are on the M15 – Try to go the M1
You can trade the pushes once you identify the HOD or the LOD and the
MM trend direction. Each push is easy to identify as they usually bounce
or Trap to a Moving Average – RRT, LOW, Star Pattern. Wait for the
rejection of price before entering your trade. Once price is rejected, you
need to have a nameable pattern.
You are supposed to trade a setup. Do not make stuff up.

A W is a 1 2 3 pattern:
Look Left to be Right when it comes to peak formations and setups in
general.
Most level (As and Vs) stop hunts are done on Moving Averages. If you
don’t see the trap on the Moving average, do not take it.
e.g. if the anchor is locked on the M15 and we have had 3 levels of drop
on the M5, then we should expect a reset on the EMA.
Entry on the 1 2 3 pattern is where the price takes out 2:
If the trap move does not touch the expected EMA, then do not enter the
trade.

Do not enter when the trap move only comes close to the 50 EMA, only
enter when it touches the 50EMA and it closes below/above the 13EMA
and there is a very visible shark fin on the TDI

H1 should pull back to the 50EMA and on M15 see the nameable
pattern on the 200EMA. Research dialling down to the M5 and M1 –
Same story, on M15 pullback to 50EMA and Shark fin, you should see a
reset on M5.

Study level 1 drop on H1 -> M15 pushes and M5 and M1 entries

Divergence is clearer on the lower timeframes. Get divergence on the M1
then M5 then M15 would be added confirmation. Use divergence for
confluence.
Don’t force trades.
You need to give your trades enough space to breathe.
When you are marking your pushes, mark from the highest to the lowest
then the pullback.

Pins to the high/low (depending on the pattern) are a good indication of

a trap move.
Be very particular about your setups
Always trade away from the where the peak was formed
When the MM does stop hunt on a level, move SL to below the stop hunt.
 A pin bar is issued as a stop hunt to take out the stop
losses of those who got the correct direction of the
trend.

They cannot trap on pin bars

If the 200 EMA is too close e.g. 12 – 15 pips it’s not good - distance should
be 20+ pips in cases it does a pullback.

If the EMAs are too close together its because price is ranging and it is
not wise to trade at that place.
1st push on the 2nd leg at the 1 2 3 pattern, 2nd leg has to break 2.

Look at the different variations of the M’s and W’s. Learn to see M’s and
W’s before they form
The High-Low Drill -> the safest place to enter a trade is to enter at the
LOW or HIGH extreme -> on the second leg they came to the trap area.
This drill brings your stop loss tighter allowing for higher risk-reward ratio.
MMs tend to reset at levels where there is trapped volume

Focus and memorise your pattern and setups through your flash cards
and only take those trades that have proven themselves in history
There is one high and one low for the day -> wait for the high to set in
and take the trade short -> wait for the low to set in and take the trade
long -> remember HOD and LOD trade setups.
Stop taking bad trades in the middle of the range

When the dealer is making the peak, one of three things can happen:
Safety Trade Rules
1. PFH/PFL has formed – as HOW or LOW.
2. Price has moved away from the area and has confirmed the
formation
3. Level 1 consolidation is clear.
4. Dealer makes a visible stop hunt
5. Dealer issues second leg M/W – this locks the trade
If the level is hit a 3rd time, that is good.
 A: Blue Tracer
B: 25-70 Pips off the blue tracer

Only take the safety trades when the MM breaks the Asian Box

Moving Averages and Pivot Points add confluence

The only 3 plays for the anchor lock:

1. Straight Away
2. Safety Trade
3. 3rd Leg

Trade in line with the peak. The peak formation gives you a directional
bias. You want your safety trade to go below the Asian Box.
Day 1 is when the peak is formed.

At peak formation, one of three things you should look out for:
1. The crossing of the TDI and Signal Line
2. Divergence
3. Crossover (TDI and Bollinger Bands)

We are in the high probability trade setup business

Before you take a trade -> you have to treat it like Steve is sitting with you
and you would have to justify your entry to the entire group of MM FX
traders
Up your level of accountability. You have to be disciplined.

TDI
The TDI is used to:
1. Spot the right segments of the market
2. To stay the course
3. Add to a winner
4. Spot divergence
Understand the RSI to understand the TDI
RSI is based on the close -> it won’t fall for spikes
You can count levels inside the indicator
Market Base Line (Static) is the basis – it gives us the bias

Parameters of the RSI

Volume of the RSI 0-100
Normal Range 70/30
Bull Range 80/40
Bear Range 60/20
Overbought/Oversold 80/20
Midpoint/Basis Level 50

A: Imaginary Support
When the RSI forms e.g. a W
comes up (confirming level 3) and
goes above the MBL and pulls
back to just below the MBL, that is
a confirmation of a safety trade

PS: it could also find support on

the 50.
SAFETY TRADE CONFIRMATION CONFLUENCE
When the RSI gets to 50 or above you are likely in level 3 (Level 3
Confluence)
If you get the RSI in extreme oversold or overbought conditions on the
daily chart – you are guaranteed it’s going to reverse.
80/20 -> 60/20
Divergences
Bear Divergences
RSI Value Closing Price

Bull Divergences
RSI Value Closing Price

CONFLUENCE
e.g. Bull -> if you get a perfect W formation in the RSI at the extreme zone
but the dealer spikes to the low one more time and ends on, for example,
a however you got them – based on the RSI itself

So the dealer has divergence and the RSI crosses the 50, that is a good
setup.
When drawing the divergence line on the chart, draw on the spikes/wicks:
Divergence line is touching the ends of the wicks
Simply taking the 2nd leg M or W spread over 5 bars that presents itself
above or below the blue box within the appropriate times irrespective of
any other indicator or criterion is good for at least 80%. This percentage
starts to increase as you factor in other factors such as ADR, TDI, EMAs
etc.
Doing your homework ensures success ratio of 90%+.
Learn to use TDI on M15 chart.
Understand the TDI when the pattern presents -> this will take you to 90%
+
Always wait for the setup
If the dealer doesn’t do what you expect him to do DO NOT TRADE
Wait for the dealer to present you the signature setups
TDI can be used to scale in and add to a trade
-Study the RSI and pullbacks

TRADE SIGNAL LINE – it is a polling of the H1 chart brought into rear view
on the M15. Polls the H1 charts and brings it into the M15. When you get
a crossover of the RSI and the signal line, you will have a signal on the H1
chart.

MARKET BASE LINE – The standard is fixed. The new MBL is a Moving
Average that is lined up close to price action to give a dynamic baseline.
The MBL forecasts Market Reversals. RSI crossing the TSL and the MBL
provides confluence.
VOLATILITY BANDS – Bollinger Bands. Act as S/R. When the RSI line is
inside the bands after a break, it is divergent )usually in the stop hunt
segment). When viewed in the proper context, they can identify stop
hunts, scale ins and exits.

RESEARCH – Trend when the 200 is above the 50 and 50 is above the 13
and vice versa. Study the EMAs.

If you see a pin bar type candlestick o the 2nd leg, the it is a good signal.
Dealer went to hit the stops but closed below the previous peak.

Don’t look at price action in terms of dollars and cents. Look at it in terms
of behaviour; what the MM is doing and how it is acting at certain levels
Put aside the money and focus on the behaviour
PUT ASIDE THE MONEY – its clouds your judgement.

TDI Signals
1. Bands are tight – no activity doing the Asian Session
CONFLUENCE
2. RSI Line breaks out of the bands and moves right back -> shark fin
– dealer makes a vector candle which forces the RSI out of the
bands. The RSI line out of the bands.
3. Dealer pulls back off of the high or low and forces the RSI line to
come back in and creates the shark’s dorsal fin
Fin goes back under the water line inside the band and crosses the
signal line -> blood in the water

TDI CHART
The bollinger Asian session
bands are consolidation
tight 25-50 pips
 The RSI Vector candles
breaks out of coincide with
the Bollinger the RSI
Bands breakout
because of
the vector
candles

Shark fin Dealer pulls

blood on the back off of the
water LOD

The setups on the TDI must coincide with other indicators -> MUST BE IN
THE RIGHT PART OF THE CYCLE

What time is it? Is the blue box 25-50 pips? Is it the stop hunt zone?

Measure distance from HOD to the new HOD or ILOD and the New LOD.
Is it 25-50 pips?

YOU NEED A CONFLUENCE OF EVENTS

It is possible to get a pattern on the TDI – but remember – it has to be at
the right segment of the market
Good confluence -> shark fin blood on the water plus a
hammer/candlestick reversal pattern

Since the bands offer some sort of S/R, doing a stop hunt low, the first leg
is slightly below and the second leg isn’t.
CONFLUENCE: Entry is also when the RSI crosses the TSL
Outside the band inside the band, W or M with a confirmed divergence
on the TDI with the RSI

Scaling With The TDI

Use these markets to scale the trade (ALWAYS WITH CONFLUENCE
PLEASE)
1. You are in the right market segment – remember there are only 3
segments in the market -> L1, L2 and L3
2. Price is in the channel

3. The RSI line breaks outside the bands as a stop hunt – Reversal is
imminent, look for signals or setup.
4. Enter the trade – stop loss 25 pips above HOD
5. Add to the trade at the MB break and VB break
6. Exit all units at the VB return crossover
TDI offers a few key points to scale in with. After entry is made, add to
your trade on a MB cross. Add again on VB break. Exit all units at VB return

When the RSI line crosses the MBL, this should be a reason to stay in the
trade.
You can use these checkpoints to stay in the trade or scale in

HOMEWORK: Fins and identify the trade signals using TDI. Block out
price action and check on your knowledge. DON NOT SKIP!!! Record
your results. This will transform your trading. It will take your use of an
indicator to the next level. Use 25-50 pip stop loss. The point is to
understand the indicator.

Candlesticks on the H1 affect the H4 and so forth

So you should not exit on a lower timeframe confirmation only

4 phases of price action

Know your pairs in and out

Understand fundamentals and retracements

BMFG

1. Accumulation – set Initial High and Low

2. Stop hunt – false move against their real intention
3. Real trend move for 6 – 8 hours
4. Day end off of the high/low back into consolidation

11pm dealers set the high/low

2:30am – Asian session open – the price is to help to accumulate orders.
Sometimes, a pair does not move on a particular day because the MMS
have not accumulated enough orders
8am, 9am, 10am – aggressive move will be seen, extended initial high/low
of the day
Most often, the market direction on Friday is the direction it goes on
Monday
If on Monday it goes into consolidation for the whole day, it means the
market will still keep Friday’s direction

London Trapping Setup

Is when the second leg M/W is formed on the 8:45am, 9:45am and
10:45am candles which are:
1. Spinning Top
2. Inverted Hammer
3. Doji Types
4. Rail Road Track

Important Timings
Learn to identify the moves and formations at the appropriate time
1. 8:45, 9:45 and 10:45 -> London trapping setup
2. 2:45 and 3:45 pm -> USA trapping setup
Trapping Moves
The market can only move
• 200 pips a day
• 600pips a week
The daily and weekly pips help us determine the high volatility days of the
market
600/300 = 3 -> There are 3 high volatile days of the week:
1. Monday
2. Wednesday
3. Friday
That’s why we use the ADR to help us identify the HOD/LOD turning point

The Period Count

Based on trader’s psychology
The market forms zones to:
1. Trap traders
2. Book a profit
3. Hit the stops high/low
Sometimes it will be easy to identify and sometimes it won’t
There are 3 periods rise/drop for 3 days
At period 3, moves will be seen
1. First period rise/drop -> driven by the market makers
2. Second period rise/drop -> driven slow in the absence of the Market
Makers
3. Third period rise/drop -> driven fast by the MMs to create panic and
trigger the stops. Because they are setting traps for the turning
point

During these 3 periods, MMs will buy/sell from traders to create positions
with the heaviest volume being seen at the 3rd period

Consolidation and the Count

There is a consolidation for each and every one of the periods
The stops will be hit before the next period 25/30 pips can be seen
MMs are trying to hit the stops Hi/Lo to make easy work for the next
period
If you can count, the profit will be realised

Period Rise Labelling Period Drop Labelling

A: A:
Consolidation Consolidation
B: Rise B: Drop

4 Trades to Freedom
There are 4 trades, which are 95% accurate, that you should focus on:
1. Trap move to the high ‘M’ formation – London/US trap move setup
2. Trap move to the low ‘W’ formation – London/US trap move setup
3. Straight away Rise
4. Straight away Drop

Trading Zone Tips

1. For the pair to be tradeable the consolidation has to be 25-50 pips.
The pair automatically becomes untradeable when the
consolidation goes over 50 pips.
2. Fast move in the forex market is fake – it is to induce traders
3. When they are making the high you must look for short
opportunities. When they are making the low you must look for long
opportunities,
4. Stop trading every day. No setup, No trade. Work on becoming
highly selective.
5. Setup your trading hours as follows:
a. Trade London session for 4 hours
b. Trade US session for 2-4 hours

You must have a reason to enter the market:

• A setup
• Period Count
 • Trend Direction
• Buy/Sell
• Light out
CONFLUENCE OF EVENTS

If the 2nd leg of a W/M fails to take out the previous leg of the formation
and you end up with a RRT, it is a setup

Trading System
1. EMAs
2. Candlesticks and Patterns
3. Blue Box (Asian) and Red Box (US)
4. Pivot Points
5. TDI
6. ADR
7. Period Counts

Trend
Trends are set as 3 day periods:
DAY 1: Turning Point
Peak formation High/Low
DAY 2: Moving averages on M15 will cross
50/200 EMAs will cross
DAY 3: MM will show acceleration and separation form the MA
50/200 EMAs

Where there is more that 3 days trend

Trend reset is used by the MM to book a profit and not reverse direction
Reset will present a new peak formation
2/3 days can be expected on the original trend direction. However if no
one falls for it, they may reverse after only one more rise/drop

Once the reset peak is identified, the trend bias will be in line with the
peak for 2 or 3 days.
It is safe to only trade London/US trapping setup if you have identified the
period direction and trap moves
The peak formation must always be identified. Anticipated directional
move must line up with peak formation.
If a double formation appears on the H1, exit the trade immediately.

UPTREND DOWNTREND
WVVM MAAW

Price Action
Identify the market condition. Candles in the wrong Market condition are
meaningless
Candlesticks at HOD/LOD which are meaningful:
1. Hammers/Inverted hammers
2. Spinning Top
3. Doji
4. RRT

HOD/LOD
When the candle spikes at the appropriate time, it is extremely the Hi/Lo
of the session
A: Candle spike
B: Pullback
C: Fails to break high

SETUP

Why a reversal would fail: if they did not reach the trap volume they were
seeking, an extended trap move will be seen. When trap volume is not
met, the MM will have 2 moves left:
1. Hit the stops Rise/Drop
2. Hold the price and handle the cross pairs if price is held at the major
pairs
Trap zone trading tips
If you are caught by the trap move you must wait for the next level
rise/drop
Good setup present in the interval 30-90 to 2 hours
2 or 3 pins to the high/low is a sign of a rise/drop
2 or 3 pins to the 200EMA is a sign of a rise/drop (depends on the
direction of the trend)

HOD/LOD
How to anticipate the High/Low
1. MMs act volatile at these price points
2. High/Low (initial) are extended quickly to trigger the stops and
create panic in the market. The MM will act the initial HOD/LOD in
3 swipes to change the Market psychology
Induce you to change your direction and recommit your funds in the
wrong direction
3. The spread will open up
4. These zones will be worked for 30-90 to 2 hors. The market seems
fast but won’t rally move. Once their goal is achieved they will shift
off the HOD/LOD in one bar
5. Once the HOD/LOD is established there will be a big pull back 25
to 50 pips, stop all the weaker traders out, hit the stops both ways
to confuse traders

Simply buy/sell the 3rd period stop triggers on the 2nd leg of the M/W
formation
Buy/Sell peak formation at period 3 only trade closed candles with
MULTIPLE CONFIRMATION
Always buy/sell the consolidation levels when the market comes to rest.
Buy/Sell upward and downward trap moves only after the market
consolidates. When the signal appears, trade without fear.

If they hit the stops to the HIGH -> you SELL

If they hit the stops to the LOW -> you BUY

Some peak formations on a timeframe may look like this:

But on a lower timeframe, the formations will appear this way:

It will be a peak-reset-peak to form an M or a W on a higher timeframe –

and usually the reset happens on the 200 EMA.

Peak Formation:
A: New High
B: Retest of the new high creates
the peak

Some levels are not so clear – you could do lower timeframe analysis to
confirm a level

Remember: 1 candle on the D = 6 candles on the H4 = 24 Candles on the

H1
Downtrend Variations:
1. Lower lows and lower highs
2. Support levels are broken with each low
If R is broken, structure is broken
and trend is lost

If the MM sll on Friday and consolidate on Monday, they are likely to sell
on Tuesday

A: Reset becomes new peak

Levels -> consolidation drop, consolidation drop

Resets usually happen on EMAs, usually the 50EMA or the 200EMA
If you draw levels on D1, draw on H4 as well.
Each level on D1 has a reset on the H4. The pullback to the 50EMA is
usually the reset
Macro and Micro view – what happens on a smaller timeframe is likely to
happen on a larger timeframe
Level is Consolidation + Drop or a rise – depending on the MM trend
Resets are used by MMs to book profits and not to change the direction
of the trend
Resets are usually crossing of all EMAs or happens on the 200EMA
A lower timeframe reset happens on the 50 of the higher timeframe
W Formation

Daily
W-Formation + Pullback is equal 3 levels and a reset
to->

Reset is for trend continuation

No reset means a trend reversal

Drop -Downtrend (LH & LL)

-Once structure is broken – consolidation

RESET SIGNS
• Rejection at 200/50EMA
• Crossing of EMAs

Complete Daily Cycle:

3 levels of drop + reset
3 levels of drop + reset
3 levels of drop + reset

Confluence
Very important elements of this method:
1. Timing
2. Pattern
Develop flash cards from the indices that you trade and pick a perfect M
and W.
Compile your signature trades.
What confluences are there to justify entry? Is the pair behaving and
playing by the rules.
Levels are very important on this strategy.
Confluence of events will make your entry/pattern stronger.
Ask yourself questions about what is happening at each point in time.
Write down all possible moves and the move that you will trade based on
your well researched setups.

Risk Management
Create a risk management system that covers:
1. % risk per trade
2. Recommended lot sizes – depending on money in your account –
create a lot size chart. Remember, it has to go along with your trade
score matrix – higher rated trades get higher risk %s.
Have a strategy that manages risk
Your overall exposure should be 2%
When analysing look at the loss first
Risk Management is based on the person’s skill level and the market itself.
How well you know the pair is also important.

Psychology
Change your self-image to improve your trading. Remember, you cannot
perform in a way that is inconsistent with the way you view yourself.
Come up with visualisation techniques to get rid of your bad trading
habits. See yourself saying no to bad trades. See yourself taking good
trades. See yourself being patient, fearless and confident.
Set profit targets for the day and visualise yourself getting those wins.
Never trade when you are in the wrong mind state. If you are wishing and
hoping and praying that the market will go a certain way, cut all positions.
ALWAYS BE OBJECTIVE
After you have completed a trade, forget about it completely because it
will have nothing to do with the next one.
There is no reason for a single loss or even two consecutive losses to rattle
you.

Graphics
These are the colours used to mark charts for consistency.
Price Action & Market Maker Zones Chart Settings

Long/Short Position P/L

Stop Loss Box

Take Profit Box

Background of level – White smoke – 245,245,245

MARKET ANALYSIS CHECKLIST

What is the long term trend?
What is the short term trend?
Where were orders accumulated? Where are the volumes?
What level are we in?
Where is the peak formation?
ID50 TRADE CHECKLIST
1. Validate the peak formation