Full Trading System

Pips2Profit
Cameron Benson
 Very Important Into - PLEASE Listen
What To Expect By The End Of This Video

1. Small Origin story - Origin of the 3 Day Cycle - Where These Setups Come From Regardless of their name
2. Concepts explanation - Might confuse you, but it is IMPORTANT to understand, or at least hear about them.
a. DO NOT hyperfocus on this sections
3. Slightly less confusing explanation
4. Full Circle - Eye opening revelation - Bring everything together
5. Explain EXACTLY what to look for - Explain EXACTLY what to wait for
6. What on God's green earth is the “Once you see it, you can't unsee it!?” What is IT!?!?!
 Table Of Contents
1. Strategy Overview
a. Mindset of The System
b. Timing Window AND Timing Of Trades
c. Previous High and Low of the Month, Week, Day
2. Concepts
a. The ONLY 3 Things Markets Do
b. Consolidation, Trapped Volume and the 3 Push Pattern
c. Peak Formations
d. Opening Range
e. Initial Balance
3. 3 Levels Or Rise Or Fall
4. Breakouts and Measured Moves
5. 3 Types Of Opportunity - 2 Types Of Trade
a. First Red Day/First Green Day Signals 1. Trend Trade
b. Inside Day (Inside Bar on the Daily Chart)
c. 3 Days Of Breakouts
2. Reversal
d. 3 Day Cycle - Day 1, Day 2, Day 3 3 Day Cycle
Trade
e. Mon - Tue - Wed/Wed - Thu - Fri Weekly Template
George Douglas Taylor - Taylor Trading Technique
1. Book was written in the 1950s.
2. Original 3 Day Cycle
3. Noticed a constant rhythmic 1,2,3 of the market
4. Used this rhythm, and his studies in the pits while watching the big money, that became the “3 Day Cycle”.

Buy Day

● After 1-5 Days of decline, a market that has opened, made its low in the morning, and closed in the upper 3rd of the days range… (Day 1)

Sell Day - Covering the Long from previous day

● Day that trends aways from the buy days low, typically trading higher than the buy days high…..(Day 2)
● If The Sell Day Has A Strong Close - Follow through could occur the following day

Sell Short Day

● Could come immediately following the buy day, if the buy day behavior present in the opposite direction
● After the market moves higher for 2-3 day you can expect a sell short day (with the exception of strong breakouts, there might be an addition
few days added to the trend).
● After the market has moved higher for 2-3 days, the day will open, make its highs in the morning, and close near its lows in the lower 3rd of
the days range..

PAUSE: Read this. Read it again. Then read it again. Then remember THIS slide for the duration of this whole video.
This information is everything…
 System Mindset
Other Trading Systems: This Trading System:

1. Trade everyday, All Day. 1. Objective Levels.

2. Trade direction. 2. Recurring Templates.
3. Only trade with the trend. 3. Using Hindsight Signals to identify following day
4. Scalp in and out throughout the day. POTENTIAL Setups.
5. Hold trades for hours that barely move. 4. More Size Can Be Used Over Time.
6. Hold trades overnight. 5. Only at the computer for 2-3 hours a days or less.
7. Outsmart the market mindset. 6. Objective time of day to trade.
8. Favorite pair/instrument to trade. 7. Rely heavily on the clock to know when to enter.
9. Take Trades at all times of the day. 8. Basket of instruments to find the best template.

Perspective: Doctors, Lawyers and Engineers take years of schooling, just to enter into the profession and STILL make
mistakes along the way. Traders have little to no schooling, and expect to walk into the trading scene and just instantly be
successful. Study the markets like you are studying for the BAR, study yourself like you are studying for finals testing. Do not
lose faith in yourself, always keep pushing forward.
 Work Windows
All Times Are Eastern Standard Time (New York Time)

Day Beginning - Depends on the instrument - Turn on period separator on your trading platform - First candle that forms to the
right of the vertical line is when the day begins.

Asian Session- 8PM-11PM EST

London Session- 2AM-5AM EST

New York Session- 8AM-11AM EST

● Time of day is everything.

● Based on the templates, the trade
can occur in ANY session. The
important thing is, is it presenting in
YOUR session?
○ If Not, look elsewhere
 Timing Of The Trade Entries
1. New Hour Candle About to Open
a. Why: Engulfment on a lower time frame could cause hourly trader to become trapped in the last 5-15 minutes of the hour.

This same concepts applies to 4 hour

and 15 Minute Bars.
1H Candle at 1H Candle at 9:57AM
9:50AM EST EST

2. Beginning Of A New Hour

a. Why:
i. Situation 1: New Hour Opens - Trades through previous hour and reverses
ii. Situation 2: New Hour Opens - Traders already trapped - Market either Explodes up OR Collapses down
iii. Situation 3:
a. Market Pumps (In an already existing down move from an earlier session) - New Hour opens and collapses
b. Market Dumps (In an already existing up move from an earlier session) - New Hour opens and goes vertical

Next Slide For Picture Examples

 Timing Of The Trade Entries Cont.

Situation 1: New Hour Opens - Trades through previous hour and Situation 2: New Hour Opens - Traders already trapped - Market either
reverses Explodes up OR Collapses down

NAS 5M Situation 1 NAS 5M Situation 2

 Timing Of The Trade Entries Cont.

“Market Pumps (In an already existing down move from an earlier session) - New Hour opens and collapses”
 Timing Of The Trade Entries Cont.

“Market Dumps (In an already existing up move from an earlier session) - New Hour opens and goes vertical”
 3 Situations: When To Use Each One

Situation 1 and 2:

Trades being executed at or new the High of Day or Low of the Day.

Situation 3:

After the market has already traded away from High of Day or Low of the day, is in breakout mode, and the clock has confirmed
a trend trade.
 Previous Month, Week, and Days High And Low
1. Benefits :
a. Previous levels are OBJECTIVE and can give A LOT of information about the condition of the market.
b. These levels are the base of the entire trading system.
i. Identify Breakouts
ii. Identify FAILED Breakouts
iii. Identify Trapped Volume
iv. Help build a daily and weekly template
1. Template Begins to form-----> Signal Presents------> Leads to a Setup
 Failed Breakouts
Definition: A failed breakout, also known as a false breakout, occurs when a security's price moves through a support or resistance level, but then reverses
direction. This can happen when the price doesn't have enough momentum to maintain its direction, or when it retraces back toward the level it just broke
through. Source - Google

Importance:
1. Failed breakout/Peak formation at the HOW or LOW begins a new 3 Day Cycle.
2. Can become a First Red Day, or a First Green Day (Signal that can lead to a setup.)
3. Shows where volume (traders) are trapped going long or short into an extreme.

Picture to the right:

1. Market broke out to the high of

the current week and remained
in breakout.
2. Following day, market returned
into the previous days range and
CLOSED.
3. This restarts the 3 day cycle from
the day of the breakout as seen
in the picture.
 Failed Breakouts
Picture to the right:

1. Day 1: Market broke out to

the LOW of the current
week and FAILED IN THE
SAME DAY (Signal by the
close at the end of the day
back inside of the previous
days range).
2. Day 2 of the cycle goes
vertical to the High of the
current week.
3. Day 3: Either looking for
the market to begins
making higher highs for a
trend trade OR for the
market to begin to break
down (make lower lows)
for a vertical collapse.
Failed Breakouts - Start of a signal Day
 Lets Review - DEEP BREATHS
1. I am waiting for a template to form.
2. A template begins with 1 (or more) of 3 things
a. Signal Day - First Red Day (FRD), First Green Day (FGD), Inside Day (Inside Bar On The Daily Chart)
b. Failed Breakout at either the high or low of the week - This begins the 3 day cycle
c. Mon - Tue - Wed/Wed - Thu - Fri Weekly Template (which has not been discussed yet).
3. I am looking to enter the market either at the end of, or at the beginning of a new hour/15M bar.
4. I am only looking to take trades within my work window (Either Asia, London or New York Session).
5. If a template has setup, but the trade has already played out in a previous session, I will look elsewhere in order to NOT
chase movement.

Now take a step back and think of it in a different way…..on the next slide.
3 Things Markets Do
1. Breakout of a range/consolidation, pullback and trend.
2. Breakout of a range, failed and reverse.
3. Stay inside of a box AKA a trading range.

Why on EARTH does this matter?

1. If a breakouts fails, who is trapped? If those traders are trapped, the market will do everything it can to blow out their
account….
a. In simpler terms - Fast aggressive move in the other direction for either a deep retracement of a “trend” or go
back to the other side of the consolidation all together.
2. If a market BREAKS OUT of a level, that level may now act as an area of value for breakout, pullback, trend.
a. A market that is in strong breakout may be in a trend style of week and it is best to find a 3 day template IN LINE
with the original breakout.
3. Trading Range: Everything on the inside of a high and a low is consolidation. Therefor, if a market has not broke out yet,
there is a chance you are still trading on the inside of a consolidation (more likely to get chopped up) and it is best to let
the market BREAKOUT to give it a chance to setup for a 3 day template.

The following slides will show examples of each.

 Still feels complicated…
Normal Market Maker Cycles: I promise to tie this in later in the Trending Market Maker Cycle:
1. Peak formation presentation…once we get to 1. Peak Formation
2. 3 Levels of rise or fall identifying good templates, setups 2. 3 Levels of rise or fall
3. Peak formation ETC. 3. Peak formation RESET
4. Expect 3 more levels MINIMUM
3 Push Patterns - The Ideal Behavior of Price at a Level
● 3 Push patterns are a good indication of a market that is about to either reverse, or continue to trend in a direction.
● 3 Pushes is a way of the market trapping traders, attempting to trade in the wrong direction AT THE EXTREMES.
● You will find these patterns most effective when you are at the extremes (high/ low of the current and previous day,
week and month)

Types of 3 push patterns:

1. 1,2,3
2. Stair Stepping
3. 1,2 Pause 3
4. 1 pause 2,3
5. 1 Pause 2 Pause 3
6. 3 Levels Ending in a 1,2,3
7. Triple Tops/Triple Bottoms
8. Ramped Volume

Important slide takeaways: This is the behavior or price I want to see when I am looking for a certain set up on the day. This is
what tells me the trade may be getting close to being executed, in combination with the time of the day.
 3 Levels, Ending in 1,2,3
Identifiable by a noticeable stair stepping
patterns. Going into the 3rd level, note the 1,2,3
(3 strong bull candles) leading traders into an
extreme, before reversing aggressively.

Useful on days where you are expecting a

reversal due to:
-3 Days Of Rise or fall
-Yesterday was a Signal Day indicating either
long/short such as FRD or FGD.
-Downside Breakout Day(Weak Close) - HOD
Sell
-Upside Breakout Day(Strong Close) - LOD Buy
 Stair Stepping
Identifiable by the 3 burst from a low
vertically back into an extreme, in the
case the high of the current day.

Will appear like stair, leading traders

in what they believe to be a trend,
back into an extreme only to reverse
aggressively in the other direction.

Useful on days where you are

expecting a reversal due to:
-3 Days Of Rise or fall
-Yesterday was a Signal Day indicating
either long/short such as FRD or FGD.
-Downside Breakout Day(Weak Close) -
HOD Sell
-Upside Breakout Day(Strong Close) -
LOD Buy
 Ramped Volume
Best Identified at the extremes of the day and
week. Will be seen in the 3rd level to the high
or the low, and can indicate that a sharp fast
reversal is fast approaching. This is by far one
of my favorite presentations of price.

Price will be seen dragging traders in a

direction, forcing them to buy or sell into the
extremes. Usually the candles will have little to
no overlap, showing that the market has “a lot
of strength” heading in that direction. This is
the trap!

Observe in addition to the SETUPS on days

where higher or lower price is expected due
to a signal.

-HOW/LOW reversals

-HOD/LOD Trend Trades

 3 Pushes Important Takeaways

1. NOT to be traded as its own strategy.

2. Tool for objectively identifying what a good “behavior of price” is at the extremes.
3. Can keep you from trading in the wrong direction, having seen the market already move 2-3 levels of
rise or fall.
4. Helps to keep you from getting trapped in the 3rd levels, chasing price movement in a direction.
5. Help you to manage trades. If you have been in a trade and are in profit, and the market consolidates
in one of these patterns, it might be time to think about taking size off the trade.
6. These stair stepping patterns can be observed throughout the week, as well as the day!
a. Can help you identify what kind of weekly or daily template you are currently in.
 Peak Formations Half Batman
What is a peak formation:

1. Double Tops/Bottoms
2. Head and Shoulders
3. Half Batman
● Peak formations are found above or below previous days and weeks high and low.
● Peak formations are the beginnings of the level count (level 1,2,3).
● Peak formations help to identify what kind of daily or weekly template you are
currently in.
● Peak formations help to identify where traders are trapped.
● Can help identify a peak formation reset in a strongly trending market.

Shortened Double Bottom Extended Double Top Micro Shortened DB Micro Extended DT
 Opening Range And Initial Balance
Opening Range Definition - High and low of a given period after the market opens.
For this style of trading, the opening range is the high and low of Monday.

Initial Balance Definition - Market Profile concept which brackets the first two periods.
For this style of trade, the high/low combination of Monday and Tuesday will for the
Opening Range and Initial Balance for the week.

Simpler terms:
1. Monday creates a box (high and a low).
2. Tuesday will usually EXPAND either the high, the low, other both sides of the range. Tuesday could also turn into an
inside day, not expanding either side and trading completely on the inside of Mondays range.
3. It is common that either the high or low of the week will have been formed after Monday and Tuesday have finished
trading. One side or the other will usually act as either support or resistance.
REMEMBER THIS SLIDE: THIS IS A MASSIVE PART OF UNDERSTANDING THE TRADE SETUPS THROUGHOUT THE WEEK.
 3 Levels Of Rise Or Fall
1. Think back to the market maker template slide and the 3 pushes/levels slide.
2. DO NOT overcomplicate finding the levels. They will be obvious, and once the market is in level 3, I am just waiting for a
new peak formation to be put in place, for a signal day, or a HOD/LOD/HOW/LOW reversal to form.
3. This will be better incorporated once we start talking about the signals and weekly templates.
 Breakouts
Definition of a Breakout: When price leaves consolidation and succeeds to move either higher or lower.

Reminder, definition of consolidation is all price movements in a range between a high and a low.

Now think about what the opening range is.

Think about what the previous days high and low is.

Think about what the previous week and months high and low is.

When markets come out of consolidation, there is a potential for a measured move target. This measurement is found by
measuring the distance from consolidation high to consolidation low, and using equidistant ranges to either upside or downside
to find targets.
Works with smaller consolidations as well
 Feeling Overwhelmed?
1. Everything discussed so far has just been general knowledge. The basic
understanding of how price moves, and the framework needed to ACTUALLY
understand why the setups are so effective.
2. Everything talked about thus far is what will not only help you to identify great
trades, but to understand the “why” behind WHY you are looking for the setup.

I promise this is NOT how I am going to finish

the explanation: I am going to simplify it WAY
down from what you have seen thus far.
 Trade Setups Simplified
First Red And First Green Day

FRD:
1. Pumping day
2. 3rd level of rise
3. Peak formation high
4. Close below the open
Following day:
HOD Sell
HOS Sell
 Trade Setups Simplified
First Red And First Green Day

FGD:
1. Dumping day
2. 3rd level of Fall
3. Peak formation Low
4. Close above the open
Following day:
LOD Buy
LOS Buy
 3 Days Of Breakouts
1. 3 Days of breakouts - Caution: Sometime the
market is going to just keep going in that
direction. DO NOT think just because there are
3 days of breakouts, that means there will be a
trade.
2. Upside breakouts - You want to see the
market put a lower low on the inside and
pump back up.
3. Downside breakouts - You want to see the
market put in a higher high and dump back
down.
 3 Days Of Breakouts
1. 3 Days of breakouts - Caution: Sometime the
market is going to just keep going in that
direction. DO NOT think just because there are 3
days of breakouts, that means there will be a
trade.
2. Upside breakouts - You want to see the market
put a lower low on the inside and pump back up.
3. Downside breakouts - You want to see the
market put in a higher high and dump back
down.
 Inside Days
Inside day is an inside bar on the daily chart.

Inside day is also a consolidation.

The market will either breakout and execute a

measured move (trend) of the inside day OR

Breakout of the inside bar and FAIL.

Inside day is an inside bar on the daily chart.

Inside day is also a consolidation.

The market will either breakout and execute a measured move (trend) of the inside day OR Inside Days
Breakout of the inside bar and FAIL.
 Full Circle Back to Taylor Trading - 3 Day Cycle
This is the climax of my presentation: These next few slides are what I wanted to present that will bring ALL of the previous 37
slides together…
Although they have different “special names”, all of these setups come from the same place. So let's break it down more rules
based, in such a simple way that is would be very difficult to not know what to look for on any given day.
Buy Day - AKA Peak formation day - AKA First Green Day
- Could be expected after 2-3 days of down movement. Note: Similarities to our current understanding
- In a strongly trending market, might only be one day of decline of the market maker templates. “Peak
- Might be mistaken as a sell short day (First Red Day). formation low, 3 levels of rise, peak formation,
- Could be expected after one LARGE down day or outside day 3 levels of drop.

1 Day Of Large Decline - Anticipate following day to be a buy day. Define A Strongly Trending Market

1. Usually begins after transitioning from

breaking out of previous WEEKS lows
and closing, usually 2-3 weeks.
2. First week the market BREAKS OUT AND
CLOSES A WEEK TO THE UPSIDE COULD
INDICATED THE BEGINNING OF A
STRONG TREND.
3. Weeks that breakout of previous days
high and close, with one day of pullback
(mistaken for a sell short day/First Red
Day) that immediately continue to up
move the following day.
 Buy Day Continued (First Green Day)
Buy Day followed by an inside day
All part of the template
 Buy Day Cont. Examples
This is an example of 8
days of breakouts to the
downside. Friday finally
gives a buy day (First
Green Day).

Monday broke out of

the previous weeks high
giving the First Green
Day LOD Long in the NY
Session.

REMEMBER:
In a BREAKOUT market,
1 day of decline has a
good chance of being a
trap.
Proof of a STRONGLY UPTRENDING market, go back to slide 40
 From This What SETUPS were found??

1. Buy Day Friday (Signal)------> LOD Trend Trade Monday

2. 3 Days Of Higher Close/Breakouts from Peak Formation Friday------->HOD Sell Thursday Countertrend
3. Breakout market confirmed (Thursday still outside of Tuesday high and previous weeks high)------>Trend Trade On Friday
Case Study - Week of April 15th 2024 NAS
Context: Down moving market breakout of a large
pattern - 3rd week of breakout to the downside

Ramped Volume leading traders into

an extreme.
Case Study - Week of April 22nd 2024 NAS
Case Study - Week of April 22nd 2024 NAS
Case Study - Week of May 6th 2024 NAS
Case Study - Week of May 13th 2024 NAS
Case Study - Week of May 20th 2024 NAS
Case Study - Week of May 27th 2024 NAS
Case Study - Week of June 3rd 2024 NAS
Case Study- Week Of June 3rd 2024
Summary Slide
1. You do NOT need to trade everyday. WAIT FOR THE TEMPLATES!
a. Strong Trending Market to the Upside
i. Buy Day---->LOS/LOD Trade---->Wait
ii. LARGE RANGE Downclose day or Outside Day----->LOD/LOS------>Anticipate that to become buy day----->LOD/LOS Trade
iii. 3-4 weeks of breakouts ending in 3 Days of breakouts------>HOD/HOS Reversal
iv. Breakout Week---->1 Downclose Day (First Red Day/Sell Short Day TRAP)---->LOS/LOD if it present and anticipate a Buy
Day---->LOS/LOD Trend Trade
b. Strong Trending to the Downside
i. EVERYTHING FROM ABOVE BUT IN REVERSE
2. What does this translate to?
a. First Red Day/First Green Day
b. 3 Days Of Breakouts
c. Inside day
d. Peak formations, 3 levels of rise or fall (2-3 days of rise/fall/2-3 weeks of rise or fall) This is that, but simplified in a
e. Weekly template setups- Mon-Tue-Wed/Wed-Thu-Fri truly repeatable way of viewing
f. 3 Day Cycle the market.
Once you see it, it can't be unseen. Nobody can take this from you. Be patient. Do not overtrade. Only trade WHAT THE
TEMPLATE is telling you to look for. What is “it”? READ WHAT THE ARROW IS POINTING TO
Ranging Markets - Part 2 Coming Soon