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About Us
Chart-Master FX

CMF is a forex trading company based in South Africa.

Kudakwashe Mazibisa (Chart Master) is the author of this book
and the co-founder of CMF. The goal of CMF is to help traders
understand price movement with precision. CMF believes in
teamwork, research, and hard work. The CMF trading style is
rooted in RTM.

[email protected]

Available as Chart-Master FX on

Telegram, YouTube, Instagram, and Facebook

CMF Research 2
 Copyrights
Copyright © 2021 CMF | All rights reserved
The anatomies and flashcards in this book are exclusively
owned by Chart-Master FX. This book or any portion thereof
cannot be distributed, transmitted, or broadcasted without the
express written permission of the author.

CMF Research 3
 Acknowledgements
My sincere gratitude goes to the founder of RTM (If Myante),
his discoveries in forex trading will forever be cherished. The
compression concept is so deep both theoretically and
practically. If Myante did a lot of work in this subject. The
standard operating procedures presented in this book were
constructed based on the fundamental ideologies of IF Myante.

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 Disclaimer
No liability will be assumed to Chart-Master FX for any losses
incurred, as a result of using the standard operating procedures
in this book. Forex trading carries a high level of risk and is not
suitable for all persons.

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 Book Synopsis
The book focuses on compression. Compression price action is
broad with a wide application in the forex market. It is often
used as a price approach. There are two important levels of
compression; Pre-Compression and the Tip of Compression.
These two levels are the building blocks of this book.

The book mainly concentrates on the application of PCP engulf,

CP Approach, Quasimodo CP, PCP Blind Spot, and PCP Kink.
The author started by theoretically explaining compression
within the institutional trading framework. Various anatomies
and chart examples were presented to give readers a better
understanding of how to trade compression price action zones.

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 List of Abbreviations
AB Description AB Description AB Description
BE Bearish/Bullish Engulfing FL Flag Limit SR Support and Resistance

CBO Clean Break Out FTB First Time Back TCP Tip of Compression

CCC Cho-Cho-Cho HB Hidden Base TG Target

CP Compression LS Left Shoulder UD Untested Demand

CPLQ Compression Plus Liquidity MM Mera-Mera US Untested Supply

MPL Maximum Pain Level V1 MM Version 1 Momentum

DBR Drop Base Rally

DBD Drop Base Drop OC Orders Cleared V2 MM Version 2 Momentum

D-ENG Deep-Engulf P-ENG Pin Engulf WBS Wick Body Separator

D-QML Double QML PCP Pre-Compression

DJ Doji QML Quasimodo Level

DP Decision Point RBD Rally Base Drop

ENG Engulf RBR Rally Base Rally

IQML Ignored Quasimodo SL Stop Loss

CMF Research 7
 Definition of Terms
Blind Spot: a blind spot occurs when price ignores support or Left Shoulder: it is a swing point that does not have the engulf price
resistance by creating a Marubozu candle. action.

Decision Point: a decision point (DP) is a level or zone where there is PCP is a shortcut for Pre-Compression which simply means the
a possibility of price reversal on FTB. There are various types of DPs beginning of compression.
such as QML, iQML, FL, SR, or SnD.
Quasimodo Level: it is a left shoulder with an engulf price action.
Flag Limit: a flag limit is a reaction of price along a resistance or
support line. The flag limit can be classified as narrow or wide. A flag
limit with a deep retracement is classified as wide whereas a flag limit TCP is a shortcut for Tip-Compression which simply means the end of
with a small reaction is classified as narrow. compression.

Kink: a kink is a flag limit that manifests itself along a resistance or

support line. The kink is usually a single candlestick in the form of a DJ,
BE, MM, or HB.

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 Contents Page
Compression Theory 10
Compression Anatomies 15
Decision Points 22
Compression Mapping 29
Pre-Compression Engulf 38
Compression Approach 62
Pre-Compression Trading 131
Quasimodo Compression 185

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CMF Research 10
 Theory
The consumption of orders as the price approaches a zone of interest It is of paramount importance to check if there is a valid decision point
allows the price to cover the CP-PAZ in a short period of time. In other where the price is heading too. We cannot talk of compression unless there
words, compression creates a path with little or no barriers. is a significant zone of interest where the price is more likely to react.

The clustered order blocks make it easier for the price to freely travel The price looks for a fresh supply or demand first before it drops or
all the way to the origin of the move, which is called the Tip of ascends massively covering the compressed zone. After finding a proper
Compression. supply or demand the price is expected to drop (Sell scenario) or ascend
(Buy scenario).
If there are some fresh demand or supply zones in the CP-PAZ, there
is a high possibility that the price might react to that zone. This is why
it is important to check if all orders have been consumed to allow the
free flow of price.

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 Theory
There are various definitions of compression. Below are some of the Compression in simple terms is a collection of clustered order blocks that
fundamental definitions of compression. overlap each other.

According to IF Myante, compression is the taking away of MPLs as the Theoretically, compression occurs when the big institutions hurt retail traders
price will be approaching a zone of interest. with the follow the trend myth. In other words, compression is a process where
ITs take orders to drop or push price.
On the other hand, Redsword11 defined compression as the clearing of
orders through the creation of shadows to the south (Compression to supply) In the case of a buy scenario, the price can be seen going to a demand
or to the north (Compression to demand). decision point where price absorbs supply orders whilst moving down. Its
clears supply orders on its way down to make way for a long whilst using the
In my own understanding, my definitions of compression are as follows; sell orders to fill their long positions. Once the last supply level has been
absorbed, price will often rally quite easily through the compressed area.
Upward compression is the spiking of price southwards as the price will be
moving steadily towards northeast to a valid decision point. The same compression price action applies to a supply decision point. The
price absorbs demand orders whilst moving up towards a valid supply decision
Downward compression is the spiking of price northwards as the price will point. The price clears demand orders on its way up to make way for a short
be moving steadily towards southeast to a valid decision point. position whilst using the buy orders to fill their short positions. Once the last
demand level has been absorbed, the price will often drop easily through the
Compression is a cluster of overlapping order blocks that occur as the price compressed area.
moves northeast to a valid decision point.

Compression is the acute movement of price (less than 45°C) towards a

valid decision point.

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 Theory
Compression to Supply Compression to Demand

Compression is defined as the collection of buy orders as the price will Compression is defined as the collection of sell orders as the price will
be approaching the zone of interest. be approaching the zone of interest.

As the price approaches a supply zone, the consumption of supply As the price approaches a demand zone, the consumption of demand
orders is not important. The focus should be on the consumption of orders is not important. The focus should be on the consumption of
buy orders. sell orders.

Compression is considered as the filling of small demand pocket of Compression is the filling of small supply pocket of orders as the price
orders, as the price will be waiting to trigger the big packet of orders at will be waiting to trigger the big packet of orders at a significant
a significant supply zone. demand zone.

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 Theory
Evaluation of Compression
In a nutshell, compression is a price behaviour with the property of
clearing of supply and demand. It is important to evaluate the validity of compression. These are the
questions that one should ask before concluding whether the zone is
There is also another type of compression called CPLQ. CPLQ which compressed or not.
stands for compression plus liquidity occurs when the price starts with
compression price action and finishes with an acceleration. In the case of a Sell setup. These are the questions that matter.

Below are some of the reasons why ITs fill in the small pocket of 1. Has the price consumed all the demand zone?
orders during the compression process;
2. Are the demand zones still fresh?
1. Because the small pocket of orders will make it possible for the
price to reach the significant zone of interest. 3. Can the price drop easily without difficulty?

2. To allow the quick movement of price after reaching the significant

zone of interest.

3. To generate enough liquidity to fill their big orders.

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CMF Research 15
 Spaced CP

This type of CP is not defined by the taking away of demand orders

or MPLs orders. It can be judged by eyes. Lows nearer to each other
are considered compressed. The same applies to highs as well when
dealing with a bearish CP scenario.

This compression is considered Spaced if there is space between the

lows.

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 Clustered CP

The clustered CP is a collection of lows that are nearer each other. In

the case of bearish compression; the highs will be nearer to each
other.

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 True side of CP

This anatomy seeks to show the true side of compression. In the

event of bullish compression; compression is to the lower side of the
chart.

On the other hand, if we are dealing with bearish compression. The

true side is inside as shown in the chart example.

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 Equilibrium CP

This type of compression occurs from both sides. The price will be
compressing both ways.

It can be a challenge to trade this setup because it is not known

which side of compression will be covered by the price.

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 MPL CP

According to the definition of IF, compression is the taking away of

MPLs. In this regard, the MPLs have to be taken out in order to
qualify the compression as valid.

The drawback of this definition is that it is difficult to identify such a

type of compression in the market. Usually, compression that
involves the taking away of supply or demand zones is the practical
one.

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 V1 and V2 Momentum

V1 Momentum
V1 MM is momentum that is characterized by a straight pole. The
momentum depicts that buyers (Bullish Momentum) or sellers
(Bearish Momentum) are in control at that moment.

V2 Momentum
V2 MM is characterized by two rallies (Bearish Momentum) or two
drops (Bullish Momentum). This price action shows that buyers
(Bullish Momentum) or sellers (Bearish Momentum) are in control at
that moment but to a lesser degree.

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CMF Research 22
 Four DPs

There are mainly four candlestick patterns used in this book namely
the Hidden Base (HB), Bearish Engulfing (BE), Doji (DJ), and
Mera-Mera (MM).
Hidden Base
In both the bullish and bearish scenario, the candles need to be of
the same family. Both candlesticks should have small wicks not
bigger than the body candles.

Bearish/Bullish Engulfing
In a BE scenario, the candles should be of different families. In a
bearish engulfing scenario, the bearish candle should engulf the
small bullish candle.

Doji
A Doji can occur at DBD, DBR, RBR, or RBD. The Doji condition
should be met. A Doji should be in the shape of a plus sign as
depicted in the anatomy. However, some Doji candlesticks can have
bodies. Nevertheless, the bottom line is that the body of the DJ
should be less than 50%.
Mera -Mera
In order for an MM to be valid. The candles should be of the same
color. Both the wick and the body of the first candlestick should be
engulfed by the wick of the second candle.

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 SR DP

The SR decision point often occurs at PCP. In other words, a PCP

level is also an SR level. The SR is also called a Swap Zone. This
is where resistance turns to support or support turns to resistance.

This decision point can be more effective if we take into

consideration factors such as the sharpness of the V/A, and the
candlestick pattern depicted at the apex of the swing point.

The anatomy shows a Buy setup. The same principles depicted in

this anatomy apply for a Sell setup.

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 QML DP

The QML decision point is considered valid if the engulf price action
of the low or high has been met.

The QML might be associated with a BE, HB, MM, or DJ.

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 FL DP

A kink is a reaction that occurs at an SR. The kink can manifest itself
in the form of a DJ, MM, HB, or BE.

In some cases, the SR might not have any special kink such as DJ,
MM, HB, or BE.

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 iQML DP

The expectation is that the price should bounce at a QML. If the

price does not make a decent reaction on the QML it then
becomes an ignored level.

These ignored levels are powerful trading opportunities. Usually

when a QML is ignored for the first time, we expect it to be
respected by price on its way back.

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 WBS QML

A QML is considered a WBS QML if the QML separates the wicks

and the bodies of the candles. The QML divides the WBS into two
sections. The first section becomes wicks then the second section
becomes body candles.

Sell Scenario
For a Sell setup, the wicks should be to the northern side of the
QML whereas the bodies should be on the southern side of the
QML.

Buy Scenario
For a Buy setup, the wicks should be on the southern side of the
QML whereas the bodies should be on the northern side of the QML.

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 Compression Mapping

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 CPM

CP Mapping
CP mapping is a good
practice that can help an
individual to understand CP
Price Action Zones.

Trade Analysis
A compressed zone is
usually followed by a
liquidity spike covering it.
The reason why we cannot
trade CP alone is that we
don’t know when the CP will
come to an end. Hence, a
CP can only be tradeable if
it is approaching a
significant demand or supply
zone.

Untested Supply and Demand Zones Clustered and Spaced CP

It is imperative to also mark untested supply and demand zones during There are two types of compression; Clustered CP and Spaced CP.
compression mapping. Often price bounces at the untested demand or
supply zones.

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 CPM

Trade Analysis
The chart shows various
compressions that
manifested during price
movement. Marking
compressed zones can help
an individual to understand
the dynamics of price
movement at that particular
time.

Untested SnD Zones

It is also imperative to mark
untested demand and
supply zones. These are
areas where orders will still
be available. Hence, the
price is more likely to react
to these fresh zones.

Trade Analysis Trade Analysis

If the price returns to an untested demand or supply and makes a If the price fails to respect an untested supply or demand zone then the zone is
reasonable reaction, then the zone is considered as OC (Orders still classified as untested until the orders have been taken out. For instance, in
Cleared). this flashcard, there is an ignored demand (ID) that was ignored by price on FTB.
The ID then turned to a supply later on.

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 CPM

Trade Analysis
There are two compressed
zones depicted in this chart.
The compression to the left
side of the chart shows that
the price covered the
compressed zone and went
to collect orders on the
untested demand. The price
reacted for a while before
going further down.

Trade Analysis
The second CP is an
approach (right side) to an
untested supply. Upon
arrival, the price dropped
covering the compressed
area. The price was held by
an untested demand and
went upwards after the CP
has been covered.

Targets Trade Analysis

Untested demand and supply zones can be used as potential targets. The disadvantage of trading CPs is that it is not known when the CP will end.
The SnD can be in the form of a DJ, MM, HB, or BE. Therefore, there is a need to always look for a significant decision point first
before trading CP.

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 CPM

Spaced and Clustered CP

The first CP (left side) is
classified as spaced CP. On
the other hand, the second
CP is classified as clustered
CP.

Third CP Analysis
The third compression is
classified as spaced
compression. The price
managed to cover the CP
zone in a short period of time.
This gives a confirmation that
the zone was really
compressed.

Third CP Analysis Side of CP

The price made a reaction on PCP which is the beginning of CP. After a If the price is moving southwards, compression happens inwards not outwards.
small reaction, the price went up with heavy acceleration covering the The opposite is true when the price is moving northwards.
compressed zone.

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 CPM

Spaced Compression
The first CP to the left side is
known as spaced CP.
Spaced CP is identified by
gaps between the highs. The
price managed to cover the
CP PAZ by making a liquidity
spike.

Clustered Compression
The price made a second
compression. This type of
compression is known as
clustered CP. The price then
made a liquidity spike
covering the compressed
zone.

Trade Analysis Trade Analysis

The price made a third CP, after approaching an RBR. The price It might be difficult to distinguish between an area that is compressed or not. The
bounced to the extent of covering the CP PAZ. liquidity spike might act as a confirmation that the zone was indeed compressed.

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 CPM

Trade Analysis
The price managed to cover
the compressed zone and
came to an untested
demand then bounced there.
The sharp movement of
price during the covering of
the CP PAZ is known as
liquidity.

Liquidity
Most of the time liquidity
spikes occur after the price
had made a CP PAZ. This
price action is caused by the
clearing of orders during
compression.

Post CP Trading Liquidity

Usually when the price covers the compressed zone with a liquidity spike. A liquidity spike is often a confirmation of a compressed zone. Take note that
There are some orders that are left at extreme points of compression. liquidity spikes can also occur even when compression is not present.
These zones can also be tradeable. This is known as post trading of
compression.

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 CPM

Trade Analysis
A compressed zone is easier
to spot if the price had
managed to cover the CP
zone in the form of heavy
acceleration. The CP zones
were confirmed by looking at
how the price covered the
compressed zone.

Trade Analysis
A CP price action zone can
be tradeable if the price
compresses its way to a
valid decision point that has
not been tested before.

Clustered VS Spaced CP Trade Analysis

The first marked CP PAZ to the left side of the chart is known as a As soon as the price breaks into compression, the price often retraces to the PCP
clustered compression zone whereas the second CP is known as a level before completing the CP PAZ.
spaced compression zone.

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 CPM

Trade Analysis
The chart shows a combination of compressed zones and untested
zones. The price is more likely to respect a zone that is untested
when it is approaching it in a compression manner. As soon as the
price reaches an untested zone the expectation is that the price
should cover the compressed area.
Trade Analysis
It is evident that as the price reached a UD zone in a compressed
manner, the price bounced and managed to cover the compressed
zone. The easiest way to identify if the zone was compressed or not
is to check the speed of price during the covering of the anticipated
compressed zone.

Trade Analysis
After covering the compressed zone, the price was attracted to an
untested demand beneath. Upon arrival, the price bounces and
compresses towards a hidden base. The HB managed to hold the
price on FTB. Thereafter, the price went past UD.

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 Pre-Compression Engulf

CMF Research 38
 PCP ENG

The engulf price action is usually in the form of a pin engulf. Once
the engulf price action has been satisfied the price retraces to a
decision point beneath the PCP. The DP can be in the form of an
iQML, SR, QML, or FL.

In order for the engulf price action to be considered valid. The price
should retrace back to the PCP level or to a decision point beneath
before reaching TCP. The gap between the depth of engulf and TCP
is what is called SPACE.

The trade can be invalidated if the price hits the target before
retracing back to the PCP level or to a decision point beneath.

CMF Research 39
 PCP ENG

The flashcard shows a sell version of the pre-compression engulf

price action. The main condition is that there should be SPACE
between the depth of PCP engulf and the end of compression (TCP).

The moment the price satisfies the engulf price action. You should
look for a decision point where the price is more likely to retrace too.

There is a possibility that the price can complete the whole CP PAZ
without making a retracement to a potential decision point.

CMF Research 40
 PCP ENG

Decision Point
The DP is in the form of a QML.

Trade Analysis
The price managed to engulf the PCP level and retraced back to the
QML DP.

Trade Analysis
The price then decided to cover the compressed zone and dropped
to the extent of hitting the QML target.

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 PCP ENG

Pin Engulf
The price managed to make
a pin engulf to the CP PAZ.
The price then retraced by
compression to a DJ
decision point.

Clustered and Spaced CP

The main CP is classified as
Spaced. After the engulf
price action was made the
price compressed to a DJ
decision point. The
compression approach is
classified as clustered CP.

Decision Point Trade Analysis

The DP is in the form of a DJ. The price managed to respect the DP on Upon arrival to the conservative target, the price retraced a little bit and continued
FTB. The price then went upwards to the point of reaching TCP which is its journey northwards.
the conservative target.

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 PCP ENG

Decision Point
The DP is in the form of a QML. The QML is aligned with a BE
candlestick pattern.

Pin-Engulf
The price managed to make a pin-engulf price action. The price
retraced back to the QML before completing the CP PAZ.

Trade Analysis
The price traveled northwards and upon arrival to the DP, the price
made a U-turn and went on to cover the whole CP PAZ.

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 PCP ENG

Space
One of the conditions that
need to be satisfied when
dealing with PCP Engulf is
the Space between the
engulfed PCP and TCP. If
the price hits the TCP target
before retracing then the
PCP ENG trade becomes
invalidated.

Drawback
The disadvantage of trading
PCP engulf is that we don’t
know where the price will
retrace too before
completing the CP PAZ. The
only guarantee we have is
that the price will come to
complete CP.

Decision Point Trade Analysis

In this example, the price managed to retrace to a QML. The QML was The price then dropped and managed to complete the CP PAZ. Upon arrival to
respected to the pip by price on FTB. TCP, the price retraced a little bit and continued its journey southwards.

CMF Research 44
 PCP ENG

Momentum
The price engulfed PCP by making a V1 MM. Soon after the PCP
engulf price action has been satisfied, the price retraced to a BE
decision point beneath.

Spaced Compression
The compression depicted in this chart is classified as Spaced
Compression.

Trade Analysis
After the price was held by the BE decision point. The price went
upwards to the extent of hitting the untested supply.

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 PCP ENG

Decision Point
There is a QML DP aligned
with a DJ.

Trade Analysis
The compression is
classified as clustered. The
momentum before the price
came back to the QML DP is
classified as V1 MM.

Trade Analysis Trade Analysis

The price covered the engulfed CP zone but failed to reach the tip of The price managed to respect the QML DP and went on to complete the CP PAZ.
compression. Hence, the engulf price action was satisfied.

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 PCP ENG

Engulf
The price managed to satisfy the engulf price action. There is space
between the depth of engulf and the tip of CP. This implies that when
the price made a retracement after the engulf of PCP the trade was
still valid.

Decision Point
The price retraced to the QML area and dropped thereafter. The
price was able to drop to the extent of hitting the conservative target
TCP.

Trade Analysis
This trade might have been invalidated if the target had been hit
before the price made a retracement to a QML.

CMF Research 47
 PCP ENG

Decision Point
The decision point in this
chart example is in the form
of a QML, the QML is
aligned with an HB kink.

Engulf
The price managed to make
a pin engulf price action.

Momentum Trade Analysis

The momentum of price is classified as V1 MM (Good Sign). The price managed to respect the HB kink and dropped to the extent of hitting an
untested demand zone.

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 PCP ENG

Stop Loss
The bearish engulfing candlestick pattern was used to determine the
position of placing the stop loss.

Engulf
After the engulf price action has been satisfied, the price managed
to make a quick retest at PCP and went on to hit an untested
demand zone which was the target.

Approach
The price approached the PCP level in a compressed manner (Good
Sign).

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 PCP ENG

Momentum
The price managed to make
V1 MM during PCP engulf.

Decision Point
The price made a quick
retest to the PCP. The PCP
is aligned with a DJ.

Stop Loss Trade Analysis

The stop loss would have been placed below the DJ. The price managed to cover the CP PAZ and went straight to an untested supply
above the CP. The untested supply could have been used as the final target for
this trade.

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 PCP ENG

Momentum
The price engulfed the PCP
and retraced to an HB DP.

Space
There was space between
the depth of the engulf and
TCP. The price was able to
cover the space as expected.

Stop Loss Trade Analysis

The stop loss could have been placed above the HB decision point. The price reacted on an HB decision point and went on to hit the conservative
target which is the tip of CP.

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 PCP ENG

PIN-ENG
The price pin engulfed PCP
and retraced to a QML.

Space
There was space between
the depth of engulf and the
end of compression. In order
to consider the trade valid,
there should be space
between the apex of PCP
engulf and TCP.

Trade Analysis Trade Analysis

The price approached the QML-DP in a compression manner. The QML Upon arrival at the target, the price bounced for a while and went further beyond
was respected by price to the pip. the TG area.

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 PCP ENG

Decision Point
The decision point is in the form of a hidden base.

Momentum
The momentum of price is classified as V1 MM. As the engulf price
action was satisfied, the price retraced to the DP and dropped
thereafter. The price was able to go beyond TCP. The price bounced
at a fresh SR and returned to the entry-level.

Trade Analysis
The price managed to respect the HB decision point and dropped to
the extent of hitting the SR target.

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 PCP ENG

Decision Point
There is an HB decision
point in this example.

Space
There is space between the
depth of engulf and TCP
(Condition Satisfied).

Stop Loss Trade Analysis

The stop loss would have been placed above the HB DP. The price respected the HB DP and dropped. The price made a pause along the
ENG area. Thereafter, the price continued its journey to the downside to the point
of hitting TG. The price then bounced at the TCP target for a while and continued
its journey southwards.

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 PCP ENG

Decision Point
The DP is in the form of a QML.

Engulf
The price was able to satisfy the engulf price action. Thereafter, the
price compressed back to the QML and dropped upon return.

Trade Analysis
Upon arrival at the QML, the price dropped heavily and covered the
two compressed zones.

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 PCP ENG

Decision Point
The DP in this example is in the form of a BE decision point.

Trade Analysis
The engulf price action was satisfied. The compression made by
price is classified as clustered. The price managed to retrace back
to a BE DP after satisfying the engulf price action.

Trade Analysis
The price managed to respect the BE decision point and went to hit
the conservative target which is the apex of CP. The price went
beyond TCP to the point of reaching an untested QML. Upon arrival,
the price made a deep retracement before continuing its move
northwards.

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 PCP ENG

Decision Point
The decision point is in the
form of a DJ candlestick
pattern.

ENG
As the price made an engulf
price action, the price
retraced to a DJ DP.

Trade Analysis Stop Loss

The price managed to respect the DJ DP and went upwards to the point The SL could have been placed below the DJ zone.
of hitting TCP. The price then made a quick retest to TCP and continued
its journey upwards.

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 PCP ENG

Trade Analysis
Quasimodo Level

Engulf
The price was able to satisfy the engulf price action. The price then
retraced to the QML and respected it on FTB.

Trade Analysis
The price managed to respect the QML and dropped to the extent of
hitting the conservative target.

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 PCP ENG

Decision Point
There is a QML aligned with a DJ.

Engulf
The pin engulf price action was satisfied. The price made a retest to
the QML DP.

Trade Analysis
The price managed to cover the compressed zone to the extent of
hitting TG. The price retraced thereafter upon reaching TG.

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 PCP ENG

Decision Point
There is a bearish engulfing
decision point in this chart
example.

PIN-ENG
The price managed to make
a pin engulf price action.
After satisfying the pin
engulf price action, the price
made a quick retest to the
BE DP.

Trade Analysis Trade Analysis

There was space between the depth of the engulf and the target. The price managed to respect the BE-DP and went on to hit the target. The price
bounced at TG and retraced back to the BE DP area. Thereafter, the price went
southwards.

CMF Research 60
 PCP ENG

Decision Point
The DP is in the form of a QML. The QML has an HB confluence.

Pin-Engulf
The price pin engulfed the CP PAZ and retraced back to the QML.

Trade Analysis
Upon arrival at the QML, the price dropped to the extent of reaching
the apex of the compressed zone.

CMF Research 61
 Compression Approach

CMF Research 62
 CP APPROACH

The chart example shows a compressed price approach.

Compression only occurs to one side of the chart. The side marked
CP is the side where compression occurs. The other side cannot be
used to determine whether the price is moving in a compressed
manner or not.

Compression can be tradeable if the price is approaching a decision

point such as a QML/iQML/SR or any other form of a
supply/demand zone.

When the price is compressing, we do not know where the

compression will end. This is why we need to look for a decision point
before making a decision to place a trade.

CMF Research 63
 CP APPROACH

The demand orders should be taken as the price will be approaching

a significant decision point. Assuming that all orders have been
consumed. We expect the price to cover the compressed zone
without any pauses along the way.

CP can only be tradeable if it is approaching a valid decision point.

When the price is approaching a supply decision point, compression
is considered to be happening inside as depicted in the chart.

The supply can be in the form of an SR, FL, QML, or iQML. Upon
arrival to the supply, the price is expected to drop covering the
compressed zone.

CMF Research 64
 CP APPROACH

Decision Point
The decision point is in the form of a QML.

Approach
The price approached the QML in the form of clustered CP.

Trade Analysis
The stop loss could have been placed above the head of the QM
setup. Upon arrival at the QML, the decision point was respected by
price. The price managed to make a liquidity spike covering the
compressed zone as anticipated.

CMF Research 65
 CP APPROACH

Decision Point
There is a DJ-kink aligned with PCP. The decision point is in the form
of a flag limit.

Approach
The price approached the DJ-kink in the form of CP. The CP is
classified as clustered.

Trade Analysis
Upon arrival at a decision point, the price covered CP and went to hit
the QML target. The price bounced at the QML target and made a big
retracement.

CMF Research 66
 CP APPROACH

Trade Analysis
Two trades opportunities might have been capitalized in this trade.
The price made a CP approach to a BE supply. The price was able
to respect the decision point and dropped to the point of engulfing
PCP.

Trade Analysis
The price then retraced to an HB-kink. The price reacted at the HB-
kink and dropped massively to the extent of hitting TCP.

Trade Analysis
Upon arrival at TCP, the price bounced for a while and continued
its journey southwards.

CMF Research 67
 CP APPROACH

Decision Point
There is a BE-kink decision point in this chart.

Approach
The price approached the BE-kink by making a spaced compression
approach.

Trade Analysis
Upon arrival to the BE-kink. The price dropped covering the
compressed area. The conservative target could have been placed
at the apex of CP.

CMF Research 68
 CP APPROACH

Decision Point
The decision point is in the
form of a QML.

Momentum
The momentum is classified
as V1 MM.

Approach Trade Analysis

The price approached the DP in the form of a CPLQ. The price was able to cover the compressed PAZ. The first conservative target
would have been placed at the CP-LQ intersection. The price returned to the QML
DP and dropped to the extent of hitting the second TG.

CMF Research 69
 CP APPROACH

Decision Point
The DP in this chart is
known as a DJ-Kink.

Approach
The price managed to
approach a DJ-kink in a
clustered compression
manner.

Trade Analysis Stop Loss

The decision point was respected by the price on FTB. The price then The stop loss could have been placed above the DJ-kink.
dropped covering the compressed area towards an untested demand.
The price bounced at the UD target.

CMF Research 70
 CP APPROACH

Decision Point
The decision point is in the
form of an HB. The HB is
allocated just above the PCP
level.

Approach
The price approached the
HB in the form of
compression.

Target Momentum
The price covered the compressed area and went on to hit the The momentum is classified as V1 MM.
conservative target.

CMF Research 71
 CP APPROACH

Decision Point
The decision point is in the form of a QML.

Trade Analysis
The CP condition was met. The price approached the QML in the
form of compression. The acceleration to the downside is classified
as V2 MM.

Trade Analysis
The price managed to react at the QML decision point and dropped
to the extent of covering the compressed PAZ.

CMF Research 72
 CP APPROACH

Decision Point
The decision point is in the form of a QML. The QML is associated
with a BE candlestick pattern.

Approach
The price approached the BE decision point in the form of
compression. The compression is categorized as clustered.

Trade Analysis
The price managed to drop to the extent of hitting TCP. The price
managed to go beyond TCP.

CMF Research 73
 CP APPROACH

Decision Point
The DP is in the form of a
double QML with an
associated BE candlestick
pattern.

Trade Analysis
The momentum is classified
as V2 MM. The price then
retraced back to the
decision point by
compression.

Trade Analysis Trade Analysis

A QML target was used in this example. The price respected the D-QML and dropped as anticipated to the point of hitting
TG.

CMF Research 74
 CP APPROACH

Decision Point
The DP is in the form of an
SR. The price managed to
approach the SR by CPLQ.

Target
The first conservative target
could have been placed at
the intersection of CP and
LQ. Price often bounces at
that level. The second target
must have been placed at a
left shoulder around the
apex of TCP.

Trade Analysis Trade Analysis

It is important to take note that if the price engulfs the intersection of CP If the price fails to engulf the CP and LQ intersection then chances are the
and LQ then the price is more likely to complete its move to TCP. price will hit your stop loss before completing the CPLQ PAZ. Therefore, it is
advisable to take partial profits at the intersection of CP and LQ.

CMF Research 75
 CP APPROACH

Decision Point
The chart shows a D-QML decision point.

Approach
The price approached the D-QML in the form of clustered
compression.

Target
The price managed to respect the decision point and covered the
compressed area until reaching the TCP target.

CMF Research 76
 CP APPROACH

Decision Point
The DP is in the form of a BE candlestick pattern.

Approach
The price approached the BE demand zone by clustered
compression.

Trade Analysis
The price managed to cover the compressed area to the extent of
hitting TG. The price was able to go beyond TG.

CMF Research 77
 CP APPROACH

Decision Point
The decision point is in the form of an MM-kink.

Trade Analysis
The price compressed to the MM-kink. The compression is classified
as Clustered.

Trade Analysis
After reaching the MM-kink, the price dropped to the extent of hitting
TG. The price then made a quick retest to the TG and went further
down.

CMF Research 78
 CP APPROACH

Decision Point
The DP is in the form of a D-
QML.

Approach
The price approached the D-
QML by compression. Upon
arrival, the price respected
the decision point and
covered the compressed
area.

PCP Trade Analysis

After covering CP, the price came for a retest to PCP and went upwards. It is evident from this chart that there were two possible buying opportunities that
The PCP was approached by clustered compression. might have been utilized. The opportunities are at D-QML and PCP.

CMF Research 79
 CP APPROACH

Decision Point
The decision point is in the
form of a QML.

Trade Analysis
The price approached the
QML in the form of clustered
compression.

Trade Analysis Trade Analysis

The left shoulder was used as a target which is at the tip of The price was able to make a U-turn upon arrival to the QML and dropped as
compression. anticipated.

CMF Research 80
 CP APPROACH

Decision Point
The decision point is in the
form of a BE supply.

Approach
The price approached the
BE supply zone by
compression.

Target Trade Analysis

The apex of CP was used as a target. The moment the price engulfs The price respected the BE supply and dropped as expected to the point of hitting
PCP, it increases the chance of price completing the CP PAZ. the conservative target.

CMF Research 81
 CP APPROACH

Decision Point
The decision point is in the
form of an SR. The swing
point is classified as a BE.

Approach
The price approached the
SR decision point by
compression.

Momentum
The version one momentum
depicted in this chart is
questionable because it is
not in the form of a straight
pole.

Stop Loss Trade Analysis

There was no definite place in this trade to put the stop loss. Hence, the The price respect the SR and went up to complete the compressed PAZ.
SL can be placed somewhere below the SR.

CMF Research 82
 CP APPROACH

Decision Point
The decision point is in the
form of an SR. The setup is
also known as a blind spot
setup.

Momentum
The momentum of price is
known as V1 MM.

Trade Analysis Trade Analysis

The price compressed its way to the SR aligned with a CBO. Upon arrival at the CBO, the price dropped to the extent of hitting a QML target
that had not been tested before. The price made a retest at the QML and went
further down.

CMF Research 83
 CP APPROACH

Decision Point
The decision point is in the
form of an SR. The SR is
classified as a blind spot.

Approach
The price approached the
SR in the form of CP. The
CP is classified as clustered.

Target Trade Analysis

There was an untested demand target in this example. The first target The price was able to respect SR DP upon arrival and dropped as anticipated to
would have been at the apex of CP and the second one at UD. the extent of hitting both TG1 and TG2.

CMF Research 84
 CP APPROACH

Decision Point
The decision point is in the
form of a QML.

Approach
The price approached the
QML decision point in the
form of clustered
compression.

Trade Analysis Trade Analysis

The price was able to respect the QML and dropped thereafter to the The price managed to go past TG2 and made a quick retest to TG2 before
extent of hitting both TG1 and TG2. continuing its journey southwards.

CMF Research 85
 CP APPROACH

Trade Analysis
There is a QML DP aligned
with an MM candlestick
pattern.

Approach
After the price had made a
V2 MM. The price
approached the QML DP in
the form of compression.

Stop Loss Trade Analysis

The stop loss could have been placed above the Mera-Mera The TG was missed by a few pips on the first visit of price. After the miss, the
candlestick pattern. price retraced before coming back to hit the target.

CMF Research 86
 CP APPROACH

Decision Point
The decision point is in the form of an SR. The SR is aligned with an
HB-kink.

Approach
The zone of interest was approached by clustered compression.

Trade Analysis
The price managed to make a liquidity spike after arriving at a
decision point.

CMF Research 87
 CP APPROACH

Decision Point
There is an SR DP in this
chart example. The breakout
at the SR was clean.

Momentum
The momentum of price was
very strong to the downside
(V1 MM).

Approach Trade Analysis

The price approached the SR in the form of Spaced Compression. The price respected the decision point on FTB. The price managed to drop to the
extent of hitting the conservative target. Upon arrival to TG, the price retraced a
little bit before continuing its journey southwards.

CMF Research 88
 CP APPROACH

Decision Point
The DP is in the form of an
SR.

Approach
The price approached the
SR by clustered
compression.

Trade Analysis Trade Analysis

The price respected the SR decision point and dropped to the extent of After a while, the price decided to come back to the SR and continued dropping
going beyond the TCP level. down.

CMF Research 89
 CP APPROACH

Decision Point
There is an SR decision point in this chart example. The price
managed to make a clean breakout.

Approach
The price approached the decision point in the form of compression.
The compression is classified as Spaced.

Trade Analysis
The momentum of price is classified as V1 MM. Upon arrival to the
blind spot level, the price dropped to the extent of hitting the LS
target.

CMF Research 90
 CP APPROACH

Decision Point
The DP is in the form of a
BE-kink. The kink is in the
form of a flag limit.

Approach
The price approached the
BE-kink by compression.

Momentum Trade Analysis

The movement of price to the downside was very strong (V1 MM). The price respected the BE-kink and dropped to the extent of hitting the
conservative TG.

CMF Research 91
 CP APPROACH

Decision Point
The decision point is in the
form of a flag limit.

Trade Analysis
The compression is depicted
in this flashcard is classified
as Spaced. There was also
a 3D confirmation which is a
good sign.

Trade Analysis Trade Analysis

The price managed to respect the decision point on FTB. The price moved at the extent of hitting TG. Upon arrival to the TG, the price
bounced and went further north.

CMF Research 92
 CP APPROACH

Decision Point
There is a double QML
decision point in this
example.

Approach
The price approached the
decision point by clustered
compression.

Trade Analysis Trade Analysis

Upon arrival, the price respected the decision point and went The compression was in form of a decreasing consolidation price action.
northwards. The price struggled to cover the compressed area.

CMF Research 93
 CP APPROACH

Decision Point
The decision point is located at the apex of compression. The
decision point is in the form of a bearish engulfing candlestick pattern.

Trade Analysis
The compression depicted in this chart is known as clustered. The
momentum of price is classified as V1 MM.

Trade Analysis
The price respected the BE decision point and dropped to the extent
of hitting the target which is TCP.

CMF Research 94
 CP APPROACH

Decision Point
The DP is in the form of a QML. The stop loss could have been
placed above the head of the QM setup.

Approach
The price approached the QML in the form of CPLQ. It is advised to
take partial profits at the intersection of CP and LQ.

Trade Analysis
The price managed to respect QML DP and dropped to the extent
of hitting TG2 which is at the apex of compression.

CMF Research 95
 CP APPROACH

Decision Point
The DP is known as a DJ
supply.

Approach
The price approached the
DJ supply by compression.

Stop Loss Trade Analysis

The stop loss could have been placed above the DJ supply. The price managed to respect the zone of interest and dropped to the extent of
going beyond the CP area.

CMF Research 96
 CP APPROACH

Decision Point
The decision point is in the
form of a QML. The QML is
aligned with a DJ candlestick
pattern.

Approach
The price approached the
DJ decision point by
clustered compression.

Trade Analysis Trade Analysis

The momentum of the price to the downside was strong (V2 MM). The price managed to respect the DJ upon arrival and dropped to the extent of
reaching the apex of compression.

CMF Research 97
 CP APPROACH

Decision Point
The DP in this chart is in the
form of a QML, the QML is
aligned with a BE.

Approach
The price approached the
DP by compression.

Trade Analysis Trade Analysis

Upon arrival to the DP, the price dropped to the extent of hitting TG. The price made a retest to TG and went further south.

CMF Research 98
 CP APPROACH

Decision Point
There is a Doji in this chart example that is located along PCP. The
Doji is classified as a flag limit.

Approach
The price approached the DJ by clustered compression.

Trade Analysis
Upon arrival at the DJ decision point, the price was able to drop
significantly to a point of hitting TG1 which is the tip of compression.

CMF Research 99
 CP APPROACH

Decision Point
The decision point is in the
form of a BE supply.

Approach
The price managed to
approach the BE supply by
clustered compression.

Target Trade Analysis

A left shoulder was used as a target in this chart example. There was a On FTB, the price respected the BE zone and dropped as anticipated to the point
small reaction that happened on TG. Upon arrival at TG, the price of hitting the target.
created a kink and went down heavily. The price then decided to visit
this zone once more before continuing its journey southwards.

CMF Research 100

 CP APPROACH

Trade Analysis
There are two trading
opportunities depicted in this
chart.

Approach
The price managed to
approach the QML from
both sides in the form of
compression.

Trade Analysis Trade Analysis

The price managed to respect the QMLs from both sides. Both compressions are classified as Clustered.

CMF Research 101

 CP APPROACH

Decision Point
The decision point is in the form of a Doji Kink.

Trade Analysis
The compression is classified as Clustered. The momentum of price
southwards is classified as V1 MM.

Trade Analysis
The price managed to respect the decision point on FTB. The price
dropped to the extent of hitting the apex of compression. Upon
arrival to the TG, the price bounced and went northwards.

CMF Research 102

 CP APPROACH

Decision Point
The decision point is in the
form of a QML. The QML is
aligned with an HB.

Approached
The price approached the
decision point in the form of
compression. The
compression is classified as
Spaced.

Trade Analysis Trade Analysis

The price managed to cover the compressed zone by making a liquidity The price made a small reaction at the TCP and continued its journey southwards.
spike.

CMF Research 103

 CP APPROACH

Decision Point
There is a BE supply
decision point.

Approach
The price was able to
approach the BE supply in
the form of clustered
compression.

Target Trade Analysis

The left shoulder was used as a target. The acceleration of price is strong (V2 MM) to the downside.

CMF Research 104

 CP APPROACH

Decision Point
The decision point is in the form of a QML. The QML is aligned with
a bearish engulfing candlestick pattern.

Approach
The approach to the decision point is in the form of a CPLQ.

Trade Analysis
The first target would have been at the intersection of CP and LQ.
Additionally, the second target would have been placed at the apex
of compression.

CMF Research 105

 CP APPROACH

Decision Point
The decision point in this example is in the form of a general supply.

Trade Analysis
The momentum of price is classified as V1 MM. The price
approached the supply zone in the form of compression.

Trade Analysis
As the price reached supply, the price respected it and dropped as
anticipated, covering the compressed area. The price managed to
make a decent bounce at the target.

CMF Research 106

 CP APPROACH

Decision Point
There is a QML decision
point in this chart example.
The QML has a WBS
condition.

Approach
The price approached the
QML by clustered
compression.

Trade Analysis Stop Loss

Upon arrival at the QML decision point, the price dropped to the extent The stop loss could have been placed above the WBS.
of hitting the apex of compression.

CMF Research 107

 CP APPROACH

Decision Point
The DP is in the form of a
bearish engulfing candlestick
pattern.

Approach
The price approached the
BE supply in the form of
compression.

Risk Management Trade Analysis

The stop loss could have been placed above the BE supply. The price was able to cover the CP and went on to hit TCP.

CMF Research 108

 CP APPROACH

Decision Point
The decision point is in the form of a DJ candlestick pattern.

Approach
The price approached the DJ decision point by spaced compression.
There was also a 3D confirmation.

Trade Analysis
The price managed to respect the DJ and went on to hit the target.
The price made a retest to the TG level and went upwards.

CMF Research 109

 CP APPROACH

Decision Point
The decision point is in the
form of an HB kink.

Approach
The price approached the
decision point in the form of
CPLQ. The first target would
have been at the
intersection of CP and LQ.

Trade Analysis Stop Loss

The price managed to respect the HB kink and dropped to the extent of The stop loss could have been placed above the HB-kink.
going beyond the intersection of CP and LQ.

CMF Research 110

 CP APPROACH

Decision Point
There is a CBO condition in
this setup. The DP is in the
form of an SR.

Approach
The price approached the
SR by clustered
compression.

Trade Analysis Trade Analysis

The price reacted nicely upon arrival at the decision point. The price The price bounced at the TG and consolidated for a long time.
managed to drop to the extent of reaching the apex of TCP.

CMF Research 111

 CP APPROACH

Decision Point
The decision point is in the
form of a QML.

Approach
The price approached the
QML DP by clustered
compression.

Trade Analysis Trade Analysis

A left shoulder was used as a target at the TCP area. The QML DP was respected by price upon arrival. The price was able to cover the
compressed area to the extent of hitting the TCP level.

CMF Research 112

 CP APPROACH

Decision Point
There is an SR decision
point. The SR is aligned with
a bearish engulfing
candlestick pattern.

Approach
The price approached the
decision point and respect it
on FTB.

Risk Management Trade Analysis

The stop loss must have been placed above the BE. The price was able to hit both TG1 and TG2.

CMF Research 113

 CP APPROACH

Decision Point
The decision point is in the
form of a BE supply.

Momentum
The momentum of price is
classified as V2 MM.

Approach Trade Analysis

The price approached the BE supply by compression. The price managed to respect the BE supply and went on to hit TCP.

CMF Research 114

 CP APPROACH

Trade Analysis
The decision point is known
as a BE demand.

Approach

The approach is known as

clustered compression.

Stop Loss Trade Analysis

The stop loss must be below the BE demand. The price respected the BE demand and went on to hit TCP.

CMF Research 115

 CP APPROACH

Decision Point
There is a QML decision
point.

Approach
The compression depicted
in this example is called
clustered compression.

Trade Analysis Trade Analysis

The price struggled to complete the compressed zone. The price was able to bounce at QML and dropped southwards.

CMF Research 116

 CP APPROACH

Decision Point
There is a DJ decision point
in this example.

Momentum
The momentum of price is
very strong to the downside
(V1 MM).

Approach Trade Analysis

The compression is classified as clustered. The price was able to react at the TG level and dropped further down.

CMF Research 117

 CP APPROACH

Decision Point
There is a BE demand in this
example.

Approach
The price approached the
BE demand by clustered
compression.

Target Trade Analysis

The price managed to hit the target. Upon arrival at TG, the price The BE decision point was respected by price on FTB. The price went on to hit
retraced and went further north. the target.

CMF Research 118

 CP APPROACH

Decision Point
There is a BE demand in this chart example.

Approach
The approach of price is known as clustered compression.

Trade Analysis
The momentum of price to the upside is known as V2 MM. The price
reacted upon arrival to the BE demand and went upwards to the
extent of hitting TG.

CMF Research 119

 CP APPROACH

Decision Point
The decision point is known as a BE kink.

Stop Loss
The stop loss must have been placed below the BE-kink.

Trade Analysis
The price respected the BE-kink at the first visit. The price then
went northwards to the extent of covering the compressed zone.

CMF Research 120

 CP APPROACH

Decision Point
The decision point is in the
form of a DJ-kink.

Approach
The price approached the
DJ-kink in the form of
clustered compression.

Target Trade Analysis

The conservative target was hit successfully. The decision point was respected by price on FTB and went southwards to the
extent of going beyond TCP.

CMF Research 121

 CP APPROACH

Decision Point
The DP is in the form of a
bearish engulfing candlestick
pattern.

Approach
The price approached the
decision point in the form of
clustered compression.

Target Trade Analysis

The price respected the BE supply and covered the compressed area. The target was hit as anticipated and retraced a little bit before continuing its
journey southwards.

CMF Research 122

 CP APPROACH

Decision Point
The decision point is in the
form of a BE supply.

Momentum
The acceleration of price
was very strong to the
downside (V1 MM).

Approach Trade Analysis

The price approached the BE supply by clustered compression. The price managed to respect the decision point and dropped to the extent of
completing the CP. Upon arrival to the TG, the price retraced to TG and went
further down.

CMF Research 123

 CP APPROACH

Decision Point
There is a general supply
decision point in this chart.

Approach
The price made a clustered
compression approach.

Trade Analysis Trade Analysis

The price managed to go beyond the TG. The price then decided to It is always good to take profits at the end of compression.
make a retest to the TG and continued further down.

CMF Research 124

 CP APPROACH

Decision Point
The decision point is
classified as a BE supply.

Approach
The approach of price is
known as clustered
compressed.

Stop Loss Trade Analysis

The stop loss might have been placed above the BE supply. The price managed to respect the BE decision point and dropped to the extent of
going beyond the TCP level.

CMF Research 125

 CP APPROACH

Decision Point
The decision point is in the
form of a Doji Supply.

Approach
The price approached the
DJ supply by Spaced
Compression. There was
also a 3D additional
confluence (Good Sign).

Target Trade Analysis

The target was hit as anticipated. The price managed to cover the The stop loss could have been placed above the DJ supply.
compressed zone. Upon arrival at TCP, the price bounced and went
upwards for a while.

CMF Research 126

 CP APPROACH

Decision Point
The decision point is in the
form of a DJ. The DJ is just
above PCP.

Approach
The price approached the
supply by spaced
compression.

Momentum Trade Analysis

The momentum of price is classified as V1 MM. The price was able to respect the DP and dropped to the extent of covering the
compressed zone.

CMF Research 127

 CP APPROACH

Decision Point
There is a QML DP aligned
with a bearish engulfing
candlestick pattern.

Momentum
The momentum of price to
the downside is classified as
V2 MM.

Target Trade Analysis

The price managed to respect the TCP and bounced upon arrival. The price reacted at the DP as anticipated and dropped. Both targets were hit by
price as expected. The reaction of price at the second target was significant.

CMF Research 128

 CP APPROACH

Decision Point
The decision point is in the
form of an SR. The SR is
aligned with a CBO condition.

Approach
The approach is classified
as spaced compression.

Target Trade Analysis

The price was attracted to an untested demand. Upon arrival to UD, The SR DP was respected by price on FTB.
the price failed to make a descend reaction at the UD.

CMF Research 129

 CP APPROACH

Decision Point
The decision point is in the form of an SR. The SR has a clean
breakout condition.

Trade Analysis
The price approached the SR by clustered compression. The
momentum is classified as V1 MM.

Trade Analysis
The price was able to make a reversal upon arrival to the SR. The
price dropped as anticipated until hitting TG.

CMF Research 130

 Pre-Compression Trading

CMF Research 131

 PCP

The anatomy shows a PCP with a CBO condition. The candle that
breaks the PCP should be in the form of a Marubozu candle.

The price should cover the compression PAZ by making V1 or V2

MM. A trade should be placed at PCP on the first visit.

The disadvantage of trading the Blind Spot PCP is that there is no

definite place to put the stop loss. Nevertheless, the stop loss can be
placed anyway below PCP.

CMF Research 132

 PCP

The flashcard shows a sell setup of a blind spot PCP.

The momentum should preferably be in the form of V1 MM.

The price usually ignores all the lows that are located within the CP
PAZ. It often reacts at the extremity of CP PAZ, which is PCP.

CMF Research 133

 PCP

This setup is almost similar to the Blind Spot PCP except that a kink
is created along PCP instead of CBO.

The price should complete the compressed zone by V1 MM most

preferably. The price is expected to react at PCP on FTB.

The kink can be in the form of a DJ, MM, HB, or BE.

CMF Research 134

 PCP

The anatomy shows the sell version of a PCP kink. The kink can be
in the form of a DJ, MM, BE, or HB.

The momentum that covers CP PAZ can be in the form of V1 MM

most preferably.

The price usually comes to PCP and react on FTB. The lows within
CP are usually ignored.

CMF Research 135

 PCP BLIND SPOT

PCP
The price managed to cover
the CP PAZ and retraced to
the PCP. Along the PCP
there was a CBO condition.
Hence, this trade can be
classified as a CP Blind Spot
Trade.

Momentum
The momentum of price was
very strong (V2 MM).

Approach
The price approached the
PCP area in the form of
compression.

Stop Loss Trade Analysis

When there is a CBO condition, it is very difficult to find a well-justified The price was able to respect the PCP decision point and went upwards to the
place to put the stop loss. Nevertheless, the SL should be placed extent of hitting the target.
somewhere below CBO.

CMF Research 136

 PCP KINK

Decision Point
There is a flag limit decision
point.

Momentum
The momentum of price is
classified as V1 MM.

Stop Loss Trade Analysis

The stop loss could have been placed above the flag limit zone. The price managed to respect the flag limit decision point upon return and
dropped the extent of hitting the conservative target.

CMF Research 137

 PCP BLIND SPOT

Decision Point
The PCP decision point is
aligned with a CBO condition.

Trade Analysis
The CP condition was
satisfied.

Trade Analysis Trade Analysis

The PCP level was respected by price on FTB. The price was able to hit both TG1 and TG2.

CMF Research 138

 PCP BLIND SPOT

Decision Point
The decision point is in the form of an SR. The SR is in the form of a
blind spot.

Momentum
The momentum of price after breaking PCP was very strong (V1
MM).

Trade Analysis
The price managed to move to the extent of arriving at an untested
supply target.

CMF Research 139

 PCP BLIND SPOT

Decision Point
The PCP has a CBO
condition.

Trade Analysis
There was no definite place
to put the stop loss. The SL
must have been placed
somewhere below CBO.

Target Trade Analysis

A double QML was used as the target. The price bounced upon arrival The PCP level was respect by price. The price went southwards as anticipated.
at TG.

CMF Research 140

 PCP BLIND SPOT

Decision Point
The decision point is in the form of a blind spot PCP.

Trade Analysis
The momentum of price is classified as V1 MM. The approach to
PCP was in the form of clustered compression.

Trade Analysis
The price was able to respect the PCP level and went on to cover
the compressed area.

CMF Research 141

 PCP KINK

Decision Point
The DP is in the form of a DJ kink. The decision point is considered a
valid flag limit.

PCP
The DJ kink is aligned with a the Pre-Compression Level.

Trade Analysis
The DJ kink managed to hold the price successfully. The price
dropped to the extent of reaching the conservative target. The price
decided to go beyond the TG and retraced back to TG before
continuing southwards.

CMF Research 142

 PCP BLIND SPOT

Decision Point
The PCP has a CBO
condition. As a result, this
setup is classified as a blind
spot trade.

Approach
The price approached the
PCP level by compression.

Trade Analysis Trade Analysis

Upon arrival to PCP, the price managed to drop as anticipated to the The price made some pauses as it was covering the compressed area. This may
extent of reaching the tip of compression. give a clue that there were some orders left that hindered the smooth movement
to the downside. Nevertheless, the price was able to finally hit the target.

CMF Research 143

 PCP BLIND SPOT

Decision Point
The PCP level has a CBO condition.

Trade Analysis
The historical CP condition was satisfied. The momentum of price is
classified as V2 MM.

Trade Analysis
The target was hit as anticipated. The price went beyond TG and
attempted to come back to TG before continuing southwards.

CMF Research 144

 PCP KINK

Decision Point
The DP is aligned with an
MM candlestick pattern. The
candlestick pattern is
classified as an MM kink.

Momentum
The momentum of price to
the downside is classified as
V2 MM.

Reaction Trade Analysis

The price reacted on the MM kink as anticipated. Thereafter, the price The target was hit by price. Upon arrival to the target the price bounced for a little
dropped to the extent of hitting the QML target. bit and continued going southwards.

CMF Research 145

 PCP KINK

Decision Point
The PCP is aligned with a
BE candlestick pattern.

Approach
The approach of price to the
zone of interest was good.
The price approached the
DP in the form of clustered
compression.

Momentum Reaction
The momentum of price was very strong (V1 MM). The price reacted at the decision point as anticipated and went northwards.

CMF Research 146

 PCP BLIND SPOT

Decision Point
The PCP is aligned with a
CBO price action.

Trade Analysis
The price managed to cover
the compressed zone and
retraced to PCP.

Trade Analysis Trade Analysis

The target was hit as anticipated, the price came for a retest to the TG In most cases when the price does not react at the target, the price usually comes
and went further down. for a retest then continues its journey southwards..

CMF Research 147

 PCP BLIND SPOT

Decision Point
The PCP meet the CBO
condition. In this regard, the
setup is classified as blind
spot PCP.

Trade Analysis
The compression depicted
in this chart is called Spaced
CP. After the price had
covered CP. The price came
back to PCP.

Trade Analysis Stop Loss

Upon arrival to PCP, the price respected the zone of interest as There is a possibility that the SL might have been hit on the third visit.
expected and came back for the second and third time.

CMF Research 148

 PCP BLIND SPOT

Decision Point
The DP is in the form of a
PCP blind spot.

Trade Analysis
The price approached the
PCP level by clustered
compression.

Target Trade Analysis

The price was able to make a clean break out at TG and came for a The price managed to respect PCP and went northwards as anticipated.
retest before continuing southwards.

CMF Research 149

 PCP KINK

Decision Point
The PCP is aligned with a
flag limit. The flag limit is in
the form of a Doji candlestick
pattern.

Trade Analysis
The compression is
classified as Spaced.

Stop Loss Trade Analysis

The stop loss must be placed below the DJ kink. The price respected the DJ-kink and went northwards. The price managed to go
beyond the conservative target which could have been placed at the origin of the
move (previous high).

CMF Research 150

 PCP KINK

Decision Point
There is a PCP decision
point with a DJ candlestick
pattern just on top of it.

Momentum
The momentum is classified
as V2 MM.

Trade Analysis Trade Analysis

Upon arrival to the PCP level the price was able to drop to the extent of The price managed to hit TG and made a significant reaction before further going
hitting the target. southwards.

CMF Research 151

 PCP BLIND SPOT

Decision Point
There is a PCP decision
point in this chart.

Trade Analysis
The price was able to visit
the PCP level and bounced
there at the first visit.

Target Trade Analysis

The price was able to ascend to the extent of hitting TG. The price bounced upon arrival and dropped for a while before continuing its
move upwards.

CMF Research 152

 PCP KINK

Trade Analysis
There is a BE-kink decision point at PCP.

Momentum
After the price had made V1 MM, the price came back to the zone of
interest and respected it upon arrival.

Trade Analysis
The price managed to cover the compressed area to the extent of
reaching TCP. The price reacted at PCP and retraced back again
after a further push upwards.

CMF Research 153

 PCP BLIND SPOT

Decision Point
Blind Spot PCP.

Momentum
The momentum of price is
classified as V1 MM.

Approach Trade Analysis

The price approached the PCP decision point by clustered compression. The price managed to complete the CP PAZ and went beyond TG.

CMF Research 154

 PCP BLIND SPOT

Decision Point
CBO PCP.

Trade Analysis
The CP price action was
satisfied.

Momentum Trade Analysis

The momentum of price to the downside is classified as V1 MM. The price managed to make a quick retest to the zone of interest and continued
moving downwards.

CMF Research 155

 PCP KINK

Decision Point
The DP is in the form of a
flag limit. The flag limit is not
associated with any valid
candlestick pattern.

Approach
The price decided to
approach the flag limit
decision point by clustered
compression.

Trade Analysis Trade Analysis

The flag limit DP was respected by price on FTB. The price dropped as anticipated to the extent of going beyond TCP.

CMF Research 156

 PCP BLIND SPOT

Decision Point
The decision Point is in the
form of CBO PCP.

Trade Analysis
The price was able to cover
the compressed area. Later
on, the price made a visit to
the zone of interest.

Momentum Trade Analysis

The momentum is classified as V2 MM. Upon arrival to PCP, the price respect the SR PCP to the pip and went northwards.
The price did not react at TG, it decided to make a retest to the target and went
upwards again.

CMF Research 157

 PCP BLIND SPOT

Decision Point
There is a PCP blind spot
decision point.

Momentum
The momentum of price is
classified as V1 MM.

Trade Analysis Trade Analysis

The price was able to make a quick retest to PCP and went further The price reacted a little bit at the target which is the apex of V1 MM. The price
down. then decided to continue its journey southwards.

CMF Research 158

 PCP BLIND SPOT

Decision Point
The PCP is aligned with a Doji candlestick pattern.

Trade Analysis
The momentum of price was very strong (V1 MM). The price
managed to retrace back to PCP after completing V1 MM.

Trade Analysis
The PCP level was respected by price on FTB. The price dropped
thereafter to the extent of hitting the conservative target which is at
the apex of V1 MM.

CMF Research 159

 PCP KINK

Decision Point
There is an HB decision point aligned with PCP. The HB is classified
as a flag limit.

Momentum
The momentum of price is considered to be strong (V2 MM).

Trade Analysis
The price managed to make a U-turn on its first visit to the HB kink.
The price went upwards to the point of hitting the target.

CMF Research 160

 PCP BLIND SPOT

Decision Point
The DP is in the form of an
SR.

Momentum
The momentum of price is
considered very strong (V1
MM).

Trade Analysis Trade Analysis

The price managed to respect the SR decision point and dropped to the Upon arrival to TG, the price bounced to the extent of changing its direction
extent of hitting TG. entirely.

CMF Research 161

 PCP KINK

Decision Point
The DP is in the form of a
BE located inside a wide
range flag limit.

Approach
The price approached the
BE flag limit in the form of
clustered compression.

Trade Analysis Trade Analysis

The BE flag limit was respected by price on FTB. An untested demand was used as the conservative target. The price managed to
hit the target as anticipated.

CMF Research 162

 PCP BLIND SPOT

Decision Point
The decision point is in the
form of PCP with a CBO
condition.

Momentum
The momentum is classified
as V1 MM.

Trade Analysis Trade Analysis

After the price had completed the CP PAZ, the price came back to PCP The price was able to hit the target and went northwards.
and bounced upon arrival.

CMF Research 163

 PCP BLIND SPOT

Decision Point
There is a PCP aligned with
a CBO condition.

Trade Analysis
The price made a touch
trade to the PCP level.

Target Risk Management

The price was able to hit the target as projected. The stop loss could have been placed somewhere above PCP.

CMF Research 164

 PCP BLIND SPOT

Decision Point
The PCP is aligned with a CBO.

Momentum
The momentum of price to the downside is classified as V2 MM.

Trade Analysis
The PCP level was respected by price upon arrival. A QML was
used as target. The price bounced at TG and went back to entry
point.

CMF Research 165

 PCP KINK

Decision Point
The HB is located along PCP.
The HB is in the form of a
flag limit.

Momentum
The momentum is classified
as V2 MM.

Trade Analysis Trade Analysis

The price managed to respect the HB and dropped to the extent to The price managed to bounce at TG and continued its journey southwards.
hitting TG.

CMF Research 166

 PCP KINK

Decision Point
There is a PCP decision point aligned with a hidden base.

Trade Analysis
The compression to the downside was weak before the first visit to
PCP.

Trade Analysis
The price managed to respect the decision point and dropped as
anticipated.

CMF Research 167

 PCP KINK

Decision Point
The decision point is in the
form of a hidden base. The
hidden base is aligned along
the PCP.

Momentum
The momentum of price is
classified as V2 MM.

Trade Analysis Trade Analysis

The DP was respected by price on FTB. A QML was used as target. The price managed to make a retest at the ignored
QML and continued its journey southwards.

CMF Research 168

 PCP KINK

Decision Point
There is a DJ-kink decision point.

Momentum
The momentum of price is classified as V2 MM.

Trade Analysis
The price was able to make a U-turn upon arrival to the DP. The
price went northwards to the extent of hitting TG.

CMF Research 169

 PCP KINK

Decision Point
There is a BE decision point
in this chart example. The
BE is in the form of a flag
limit which is located at PCP.

Approach
The price approached the
BE DP by clustered
compression.

Trade Analysis Trade Analysis

There was an untested supply which was used as the target. The price managed to respect the target and reacted a little bit before
continuing its move upwards.

CMF Research 170

 PCP KINK

Decision Point
The DP is in the form of a
Flag Limit.

Momentum
The momentum is classified
as strong (V2 MM).

Target Trade Analysis

The stop loss could have been placed below the flag limit. The target was reached and the price went beyond TG.

CMF Research 171

 PCP

Decision Point
There is a PCP decision
point.

Momentum
The momentum of price is
classified as very strong (V1
MM).

Trade Analysis Trade Analysis

The price managed to make a U-turn upon arrival to PCP and dropped There was no definite place to put the stop loss.
to the extent of hitting the target.

CMF Research 172

 PCP KINK

Decision Point
There is an HB decision
point located just above the
PCP.

Momentum
The momentum of price is
classified as V1 MM.

Trade Analysis Trade Analysis

The stop loss could have been placed above the HB. The price dropped as anticipated and went on to hit TG. The price made a
reaction at TG and continued its journey southwards.

CMF Research 173

 PCP KINK

Decision Point
The PCP decision point is aligned with a CBO condition.

Momentum
The momentum was very strong to the downside (V1 MM).

Trade Analysis
A left shoulder was used as TG. The price bounced upon arrival to
the TG.

CMF Research 174

 PCP KINK

Decision Point
There is a PCP kink decision point in this chart example.

Momentum
The momentum of price is classified as V1 MM.

Trade Analysis
The price managed to respect the PCP kink and dropped to the
extent to reaching the conservative TG.

CMF Research 175

 PCP

Decision Point
There is a BE decision point just above PCP.

Trade Analysis
The compression condition was satisfied. The compression is
classified as clustered.

Trade Analysis
The price managed to respect the DP on the first visit. The price
dropped as anticipated and managed to hit the target.

CMF Research 176

 PCP BLIND SPOT

Decision Point
The PCP decision point has
a CBO condition.

Trade Analysis
The price managed to cover
the compressed area and
came for a quick retest to
the SR DP.

Momentum Trade Analysis

The momentum of price is considered strong (V1 MM). At the price visited the PCP level for the first time, the price went southwards

CMF Research 177

 PCP KINK

Decision Point
The PCP is aligned with an
HB. The HB is in the form of
a flag limit.

Momentum
The momentum is classified
as V1 MM.

Trade Analysis Stop Loss

The price was able to make a quick retest to the HB and dropped upon The SL could have been place above the HB kink.
arrival to the decision point.

CMF Research 178

 PCP KINK

Decision Point
The decision point is in the
form of a flag limit. There is a
BE engulfing candlestick
pattern inside the wide range
flag limit (Good Sign)

Approach
The price approached the
flag limit by clustered
compression.

Trade Analysis Trade Analysis

The price managed to cover the compressed zone to the point of hitting The price reacted at TG for a while and continued its journey southwards.
TG.

CMF Research 179

 PCP KINK

Decision Point
The decision point is in the
form of a BE supply. The BE
is located inside a wide flag
limit.

Momentum
The momentum of price is
classified as V2 MM.

Trade Analysis Trade Analysis

The price managed to revisit the BE zone and dropped upon arrival. The target could have been placed at the depth of V2 MM. On the other hand, the
stop loss could have been placed above the BE decision point.

CMF Research 180

 PCP BLIND SPOT

Decision Point
The PCP is also an SR
decision point. The SR in
this case has a CBO
condition.

Approach
The price approached the
PCP by clustered
compression.

Momentum Trade Analysis

The momentum of price is classified as V2 MM. The price reacted upon arrival to PCP and went on to hit the QML target.

CMF Research 181

 PCP KINK

Decision Point
There is a DJ decision point
aligned at the PCP level.

Trade Analysis
There are two types of
compressions in this
example.

Trade Analysis Trade Analysis

The momentum of price was good soon after a DJ kink was created. The price covered the first compression and came back to collect orders at DJ.
Thereafter, the price managed to cover the second CP PAZ.

CMF Research 182

 PCP BLIND SPOT

Decision Point
The decision point is in the form of PCP with a CBO condition.

Trade Analysis
The momentum of price is classified as very strong (V1 MM).

Trade Analysis
The price made a quick retest to PCP and went on to hit the apex of
TG. The price reacted for a while at TG before continuing its journey
northwards.

CMF Research 183

 PCP BLIND SPOT

Decision Point
The PCP decision point has a CBO condition.

Trade Analysis
The momentum of price is categorized as V2 MM.

Trade Analysis
The price was able to come back to PCP and went further north to
the extent of breaking all the significant highs.

CMF Research 184

 Quasimodo Compression

CMF Research 185

 QML CP

The chart shows the anatomic structure of the QML CP.

Instead of the price making a complete U-turn on PCP. The price

often comes to the QML of the PCP.

The QML is usually associated with a certain candlestick pattern such

as a BE, DJ, HB, MM, WBS, or D-QML.

CMF Research 186

 QML CP

The anatomy shows a Sell example of the QML CP.

In addition to the PCP reaction level, there is also a possibility that

the price can come to the QML and make a decent reaction.

The QML can be considered strong if it is associated with a kink

such as a DJ, BE, MM, or HB.

CMF Research 187

 QML CP

Decision Point
There is a PCP decision
point in this example.

Trade Analysis
The compression in this
chart example is considered
a two spaced compression.

Trade analysis Target

The PCP level was respected by price on FTB. The price dropped An RBR bearish engulfing candle was used as a target.
as anticipated after reaching the decision point.

CMF Research 188

 QML CP

Decision Point
The DP is in the form of a
QML, the QML has a WBS
condition.

Approach
The price approached the
DP by making a spaced
compression price action.

Trade Analysis Trade Analysis

Upon arrival to the QML, the price respected the DP and dropped to The price bounced upon arrival at QML and retraced for a while before
the extent of hitting the QML target at the apex of compression. continuing its journey southwards.

CMF Research 189

 QML CP

Decision Point
There is QML in this
example with multiple
resistance touches. This is
where the price was able to
retrace too. This kind of
setup is known as the The-
Can-Can (TCC) setup.

Momentum
The momentum of price is
classified as V1 MM.

Stop Loss Trade Analysis

The stop loss can be placed at a reasonable position above the QML to Upon arrival at the decision point, the price dropped to the extend of hitting the
allow the trade to breathe. conservative target.

CMF Research 190

 QML CP

Decision Point
The DP is in the form of QML.

Trade Analysis
The compression condition was met. As the price covered the
compressed PAZ by making V1 MM. The price managed to come
back to the QML DP.

Trade Analysis
The price managed to respect the DP and went southwards.

CMF Research 191

 QML CP

Decision Point
There is a QML decision
point in this example. The
QML is aligned with a DJ
candlestick pattern (Good
Sign).

Trade Analysis
The price was able to satisfy
the compression priced
action.

Trade Analysis Stop Loss

The price managed to respect the QML on FTB. Thereafter, the price The stop loss could have been placed above the DJ candlestick pattern.
dropped and went to hit the target.

CMF Research 192

 QML CP

Decision Point
There is a double QML DP.

Trade Analysis
The CP price action was
satisfied.

Trade Analysis Trade Analysis

The stop loss could have been placed above the Head of the QM The decision point was respected and the price went to hit the target.
setup.

CMF Research 193

 QML CP

Decision Point
The DP is in the form of a QML.

Trade Analysis
The CP PAZ was satisfied. The price completed the CP and went
back to the QML DP.

Trade Analysis
The price dropped upon arrival to the QML and dropped as
anticipated to the extent of hitting the target.

CMF Research 194

 QML CP

Decision Point
There are two trading
opportunities depicted in this
chart.

Buy Opportunity
The first trading opportunity
is at the QML. The
compression price action
was satisfied. This created a
trading opportunity at the
QML.

Sell Opportunity
The price approached the
target (left shoulder) in the
form of clustered
compression. The sell trade
might have been placed at
TG since the approach was
valid.

Trade Analysis Trade Analysis

The price managed to respect both decision points. The Sell opportunity is the main setup in this chart.

CMF Research 195

 QML CP

Decision Point
The decision point is in the form of a QML.

Trade Analysis
The CP is categorized as clustered. The momentum of price after
creating the QML is classified as V2 MM.

Trade Analysis
The price managed to respect the QML decision point and went
northwards to the extent of hitting the QML TG.

CMF Research 196

 QML CP

Decision Point
There is a QML DP in this
example.

Trade Analysis
The price approached the
QML by clustered
compression.

Trade Analysis Trade Analysis

The acceleration of price was strong (V2 MM). This led to the shift of The price was able to respect the QML and drop to the extent of hitting the TG.
momentum from strong to weak. Upon arrival to TG, the price bounced and continued its journey southwards.

CMF Research 197

 QML CP

Decision Point
There is a QML decision
point aligned with a BE
candlestick pattern.

Trade Analysis
The price compressed its
way to the entry-level. The
compression depicted in this
chart is classified as
clustered.

Trade Analysis Trade Analysis

The acceleration of price to the downside was very strong (V1 MM). The price managed to hit the target as anticipated. Upon arrival to the target, the
price retraced back to PCP and continued moving further down.

CMF Research 198

 QML CP

Decision Point
The DP is known as a
Quasimodo Level.

Approach
The price approached the
QML by compression. The
compression manifested
itself in a clustered manner.

Trade Analysis Trade Analysis

The price was able to cover the compressed area. The price approached the QML by compression. The QML was respected on FTB
and the price went northwards.

CMF Research 199

 QML CP

Decision Point
The DP is in the form of a
QML. The QML is aligned
with a flag limit.

Trade Analysis
The price approached the
flag limit in the form of
clustered compression.

Target Trade Analysis

The price managed to drop upon arrival to the QML and dropped the The price bounced upon return to the QML and continued its journey southwards.
extent of hitting a QML target.

CMF Research 200

 QML CP

Trade Analysis
The DP is in the form of a
QML.

Target
A QML was also used as a
target.

Trade Analysis Trade Analysis

The momentum of price to the downside is classified as V1 MM. The price managed to respect the QML DP upon arrival and dropped to the extent
of hitting the QML TG.

CMF Research 201

 QML CP

Decision Point
Quasimodo Level.

Momentum
The momentum was very
strong to the upside (V1
MM).

Trade Analysis Trade Analysis

The compression price action was satisfied in this chart. The price was able to come back to QML after completing V1 MM. The price then
bounced at the QML on FTB and went northwards.

CMF Research 202

 QML CP

Decision Point
There is a QML DP aligned
with a flag limit.

Trade Analysis
The CP price action was
satisfied.

Trade Analysis Risk Management

The price was able to reverse within the flag limit zone. The price The stop loss could have been placed above the entire flag limit.
decided to react at the QML and dropped to the point of hitting the
conservative target.

CMF Research 203

 QML CP

Decision Point
The QML is aligned with a wide range flag limit.

Trade Analysis
The compression condition was satisfied. The price managed to
cover compression which qualifies this trade as a post-compression
trade.

Trade Analysis
The price respected the flag limit and went northwards as anticipated.

CMF Research 204

 QML CP

Decision Point
The is a double QML decision point in this example.

Trade Analysis
The CP price action was satisfied. The price was able to cover the
compressed zone by making V2 MM.

Trade Analysis
Upon return to D-QML, the price dropped for a little bit and came back
again to the entry point. Upon return for the second time, the price
managed to drop within the QM area and managed to hit TG.

CMF Research 205

 QML CP

Decision Point
There is a QML aligned with a BE candlestick pattern.

Trade Analysis
The CP condition was satisfied. The price covered compression but
failed to reach the tip of it. The price then decided to retrace to the
QML. The momentum is classified as V1 MM.

Trade Analysis
The QML DP was respected by price. The price dropped to the extent
of hitting the target.

CMF Research 206

 QML CP

Decision Point
The DP is in the form of a
QML.

Trade Analysis
The CP price action was
satisfied.

Target Trade Analysis

A left shoulder was used as a target in this chart example. The price was able to make a U-turn upon arrival at the QML. The price dropped
as anticipated and was able to hit the conservative target.

CMF Research 207

 QML CP

Decision Point
There is a QML decision
point aligned with a BE
engulfing candlestick pattern.

Trade Analysis
The compression price
action was satisfied. The
price covered the
compressed zone and went
back to the QML.

Trade Analysis Trade Analysis

A QML was used as a target. Upon arrival at the QML target, the price The decision point was respected by the price on FTB. The price then dropped
bounced and went back towards the entry point. as anticipated to the extent of hitting the target.

CMF Research 208

 QML CP

Decision Point
Quasimodo Level.

Trade Analysis
The CP condition was
satisfied.

Trade Analysis Trade Analysis

The price decided to make V1 MM. The price retraced back to the QML and dropped for a while. The price then
came back for a retest to the QML and went southwards until hitting the QML
target.

CMF Research 209

 QML CP

Decision Point
There is a QML decision point. The QML is aligned with a bearish
engulfing candlestick pattern.

Trade Analysis
The price approached the QML by CPLQ. The first target could have
been at the intersection of CP and LQ.

Trade Analysis
Upon hitting the conservative target, the price compressed its way
back to the DP before continuing its journey southwards.

CMF Research 210

 QML CP

Decision Point
There is a QML aligned with the WBS condition.

Trade Analysis
The CP condition was met. The price then decided to cover the
compressed zone and came back to the QML DP.

Trade Analysis
The price bounced upon return to the DP and went on to hit an
untested supply which was the final target.

CMF Research 211

 QML CP

Decision Point
There is a QML DP in this
chart example.

Momentum
The momentum of price to
the downside is classified as
V1 MM.

Trade Analysis Trade Analysis

The CP price action was satisfied. The price managed to drop upon return to the QML and compressed its way
southwards until hitting the LS target.

CMF Research 212

 QML CP

Decision Point
Quasimodo Level.

Trade Analysis
The momentum was strong
(V2 MM).

Trade Analysis Trade Analysis

The price came back to the QML and dropped to the extent of hitting The stop loss could have been placed above the high of the QM setup.
the conservative target.

CMF Research 213

 QML CP

Decision Point
There is a double QML
decision point in this chart.

Trade Analysis
The CP price action was
satisfied.

Trade Analysis Stop Loss and Target

The price managed to respect the D-QML to the pip and dropped The stop loss could have been placed above the head of the QM setup. On the
heavily as anticipated. other hand, the target could have been placed at TCP or at the swing low that
was created before the price came back to the entry-level.

CMF Research 214

 QML CP

Decision Point
Quasimodo Level.

Trade Analysis
The CP condition was met.
The price was able to
respect the PCP level before
retracing back to the QML.

Trade Analysis Trade Analysis

The decision point was respected by price on FTB and managed to hit The DP was respected by the price on FTB, The price dropped to the extent of
the target as anticipated. hitting TG. Upon arrival to the TG, the price bounced for a while and continued
its journey southwards.

CMF Research 215

 QML CP

Decision Point
There is a QML DP aligned
with an HB condition.

Trade Analysis
The CP condition was
satisfied.

Trade Analysis Trade Analysis

The price managed to hit the SR target and reacted for a while before The stop loss could have been placed above the HB.
continuing its move southwards.

CMF Research 216

 QML CP

Decision Point
There is a QML DP aligned
with a DJ candlestick pattern.

Trade Analysis
The compression PAZ was
completed and the price
came back to the QML and
went northwards.

Trade Analysis Trade Analysis

The momentum of price was very strong (V1 MM). The price managed to come back to the entry zone and went on to hit the
target. The price created an HB along TG and went northwards.

CMF Research 217

 QML CP

Decision Point
Quasimodo Level.

Trade Analysis
The compression depicted
in this chart is classified as
clustered.

Target Trade Analysis

The target is in the form of an untested demand. The price respected the DP and dropped to the extent of hitting the target. The
price reacted upon arrival to the target and retraced for a little while before
continuing its journey southwards.

CMF Research 218

 QML CP

Decision Point
There is a QML decision
point. The QML is aligned
with a DJ.

Momentum
The momentum is classified
as V1`MM.

Trade Analysis Trade Analysis

The CP in this chart example is in the form of clustered compression. The price came back for the first time and dropped for a little while. The price
then came for the second and third time to a DP.

CMF Research 219

 QML CP

Decision Point
The QML is associated with a WBS condition.

Trade Analysis
The CP condition was satisfied. The price was able to complete the
CP and came back to the QML DP.

Trade Analysis
The price managed to drop as expected to the extent of hitting TG.

CMF Research 220

 QML CP

Decision Point
Quasimodo Level.

Trade Analysis
This compression depicted
in this chart is known as
spaced compression.

Trade Analysis Trade Analysis

The price managed to cover the compressed zone and retraced back to The price visited the QML and dropped upon arrival to the extent of hitting the
the QML. There was an untested demand beneath CP which was used target which is a demand that was not yet tested.
as the target.

CMF Research 221

 QML CP

Decision Point
Quasimodo Level.

Trade Analysis
The CP is classified as
clustered compression.

Trade Analysis Trade Analysis

The decision point was respected by the price on FTB and dropped The price failed to make a decent reaction on the QML TG and dropped heavily
heavily to the downside. southwards.

CMF Research 222

 QML CP

Decision Point
There is a QML DP in this chart example.

Trade Analysis
The CP condition was satisfied. The momentum of price to the
downside is classified as V1 MM.

Trade Analysis
Upon arrival at QML, the price dropped as anticipated to the extent
of reaching the apex of the V1 MM.

CMF Research 223

 QML CP

Decision Point
The DP is in the form of an Ignored Quasimodo Level.

Momentum
The price completed V1 MM price action and retraced back
immediately to an ignored QML.

Trade Analysis
As the price retraced back to iQML, the price dropped and managed
to hit the target. The price then decided to make a retest to TG and
continued its journey southwards.

CMF Research 224

Thank You
…for reading this book.
[THE END]

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