Everyone should do this. You make PIPS and learn It doesn't get any better. In learning to become a successful forex trader it can be easy to get discouraged and frustrated and I have found the signal classes give me inspiration and fresh enthusiasm to keep moving forward. Keep up the good work Steve. The signals program has helped me put my own trade set ups into perspective by allowing me to have extra sets of eyes.

Very informative and a huge help to rookies like myself. For inquiries, questions or commendations, please call, schedule a booking, or fill out the following form:. Thanks for submitting! Email: steve tradingwithsteve.

Call or text: Trading With Steve LLC is a legal registered entity in Utah, U. PROFIT OR YOUR MONEY BACK THE WAY FOREX SIGNALS SHOULD BE. Get Free Signals. With an awareness of the longer cycle and assuming you are in the correct place within the cycle, it is possible to convert a spot trade to a swing trade from one of the 3 day cycle peaks to the other given an appropriate entry.

This would involve going from one peak formation high to the next peak low and may take several days. On an intraday trade, it is still important to understand where you are within this larger cycle as it will help you to make a judgement about how far a run my last. For example, if price has just passed the peak high and is at a Level I accumulation then an intraday long trade after a bearish stop hunt, while valid, will not be likely to produce consistent results.

Hence, it is a good idea to not take trades against the longer trend at a Level I accumulation. The Dharma period occurs after the US markets have closed and before the London markets have opened.

During this period there tends to be little activity and the market just cycles back and forth between two price points. This occurs because Bank A will buy a quantity of currency from Bank B [1]. This causes price to rise. This is followed by bank B selling the same currency to Bank C [2]and this causes price to fall.

This process goes around in circles and so the price simply oscillates back and forth. After a while, the range begins to widen [3]. This has the effect of triggering pending orders placed by breakout traders. However, when they are triggered, price is quickly pulled away and they will often be stopped out on the other side of the range which is also widening. The stop hunt involves a deliberate movement outside of the range to what will become the high or low of the day.

The move usually occurs in three pushes which can be as simple as three candles though you will sometimes see a small pause in the form of a pullback in the middle of this. The stop hunt has two main objectives: 1. Take out existing stops 2. Encourage traders to commit to positions in a direction that is opposite to where the real trend is going to be.

The spread is opened up by a few pips. This allows traders orders to be triggered outside their normal boundaries and they will be holding negative positions from the outset. It is common to see price undergo a further period of accumulation lasting 30 to 90 minutes which encourages traders to take further positions.

When there are enough positions, the price is moved in the direction of the true trend and their stops will be triggered. This forms the typical W or M pattern. This is the preferred point of entry for most of these trades, particularly the second leg of the M or W. It is relatively slow moving and so there should be no reason to rush or impulsively take a trade. One of the ways of identifying that you are in the right place is that the market will seem to be quiet, in consolidation and make a sharp move out of the range, faking "the breakout".

If you are looking at the price board you will see that it is "flickering red and blue" with lots of changes suggesting that there is lots of activity but in fact there is little. When you see this at the right time of the day, you know that the reversal is imminent. Another observation during this period is that the spread widens.

This is done so that a broader range of orders can be collected and accumulated during this period, making it even more difficult for traders to take profit as they are in a losing position right from the outset.

The diagram below demonstrates what happens to the spread during this period. But these patterns do fail sometimes. This occurs when there has not been enough volume to make it worth their while to take a reversal. In these situations that price is moved to the next level to further induce positions to be taken in the wrong direction, against what is to become true trend.

This is called the extended stop hunt. However, if as a result of this move the accumulation of positions is inadequate for their purposes, then the stop hunt will be extended. This means that price will be pushed beyond this Level in the direction of the technical trend in an effort to induce more traders to enter positions and build up the positions required.

Like before, this move will be in the 25 — 50 pip range and be comprised of 3 candles or pushes. But also like before this is not necessarily the case and more or less are also possible. Again the trader must use their own judgement and discretion. Therefore, if you identify that after a period of time the stop hunt has not led to a reversal then you should scratch trade. An appropriate period of time is 2 hours following the 2nd leg of an M or W. It the trader has not moved in the expected direction by this time, something is wrong and they have not been able to build up enough volume to make it worthwhile to reverse the market.

This trend tends to move in three waves, the pause between each wave representing a new opportunity to fake out traders by reversing direction and then moving against them again. This often occurs in the NY session, called the NYC Reversal Trade.

This trade is likely to return a smaller profit than the initial stop hunt reversal trade though it is still worth taking particularly if you are not able to enter a trade following the London open. As previously noted there is a pattern which can be identified on both intraday and multi-day views. Understanding the count of the intraday pattern, the 3 day pattern, and the weekly pattern is everything.

The consistent pattern of 3 moves is used to entice and encourage a particular directional behaviour. The brakes are then applied and all of a sudden fear and inexperience are exploited to have the traders close their positions for a loss. The notion of counting involves an awareness of how many times a move in a particular direction has occurred and this can be observed in a number of time frames.

TH E COUNT OF THE 3 DAY CYCLE Look at the chart a 15 min or hourly over a week and see what is going on. For example if price is running higher and higher, there has to be a retracement. Market-makers don't have infinite amounts of capital and have to make retracements to book a profit before they continue.

This is why they have aggressive pullbacks that seem to occur out of nowhere. As an example, it is possible that you were up pips and all of a sudden you're up by only 20 because they have brought price back the previous level. So what do people do, they close the trade because you don't want to turn pips into a loss and just accept the 10 or However, the trade was still valid because the previous low had not been taken out and what happens next is that price takes off again, leaving the trader behind without the profit.

Psychology has been used to clear traders out of the position. Price then moves aggressively up again. Market-makers form zones or levels to trap traders, hit stops and book profits. As a trader, your 1st job is to identify the zones, particularly the current place in the cycle.

PEAK FORMATION HIGH The highest formation on the chart is the peak. They will pull away quickly and form out the M. During the consolidation they hit stops up, hit stops down and then drop it again. You should never trade against the Peak Formation out of Level I Consolidation.

This is also the most common place for a Straight Away Trade to develop because the market-makers already have what they need, which is people trapped from the previous reversal. Again, they hit the stops up, hit stops down and then drop price again to Level III. L E V E L I II Having reached Level III, the objective is a little different. Price will be dropped in order to demonstrate further bearish movement by satisfying various criteria of the traders. However, they then pull away quickly, move price up and book a profit.

Level III will appear disorganised with price chopping back and forth, usually within a wide range. If you are having difficulty identifying what level you are currently in, then identify the last Level III and this should give you a point of reference depending on whether or not price has been coming to the Level III zone from above or below and what has happened since. Additionally if you notice that price is chopping around in other words you are currently in Level III then you should also be aware that a reversal is imminent.

This level often causes the formation of a head and shoulders pattern, which is a special kind of M or W formation. You should buy or sell on the 2nd shoulder. PEAK FORMATION LOW Following Level III, a new Peak Formation Low is defined and the cycle starts again. This becomes an area where you are aiming to buy with the MM, even though all of your other indicators and prior learning will have told you that this is still in a sell zone.

So you will be buying against what you have learnt previously; against the rest of the world; you will be buying against the trend. TH E COUNT OF THE INTRADAY CYCLE The pattern is identical to the 3 day cycle. However, within the 3 levels, the amount of activity of the MM varies.

The 1st level and its correction is driven by the MM and is characterised by fast moves. The 2nd level and correction is market-driven in the absence of market-makers support. Instead it is driven by emotional traders who enter the market. Because this is not driven by the market- makers the size of the moves tends to be smaller.

This is because retail traders don't have access to the size of trades or the co- ordinated effort to move price at will. The 3rd level and its correction see a return of the market maker to the table.

This is an area of profit taking for the MM where further movement in the direction of the technical trend is encouraged before the stops are triggered. Traders can become panicked and confused. During the 3 levels market-makers will buy from traders to create positions. The heaviest volumes are seen at the 3rd level. With each of the Levels is a corresponding level of consolidation. Most of the time this will correspond to period when stops are being triggered before the next Level Is started.

The consolidation zones often involve 20 to 30 pip swings in an effort to accumulate positions and hit stops. This occurs in both directions and makes the ultimate movement to the next level easier for the market maker with no buying and selling pressure being exerted by the wider marketplace.

However to make things easier a number of features and indicators can be added at your discretion. Candlestick patterns 2. Colour-coded sessions 4. Pivots 6. TDI 7. MM level counts CANDLEST ICK PATTERNS The 1st and perhaps most important thing to understand about candlesticks and price action is that in the wrong market conditions they have little or no meaning.

For example a hammer in the middle of the trend is relatively meaningless. A hammer at the high or low of the day has a great deal of significance. It is also important to understand that the Candlestick pattern can only be defined at the close of the candle.

This is a feature controlled by the MM and is particularly noticeable in the hourly and four hourly charts. In areas where it is their intention to convince traders that there will be continuation it makes sense to leave the candle as a solid green or red candle until the last moments when it is pulled back revealing itself as a spike or some other relevant shape.

The candle patterns that are most helpful are: 1. SPIKE CANDLES This description includes spike candles, "Empire State candles" and oversized candles in a 15 min chart. These candles are designed to "get you excited", trade emotionally, and encourage you to enter the market. However, price is pulled back before the candle is closed and those traders who entered on the excitement then find themselves trapped.

These candles are most often seen in the 1st leg of a reversal set up. But it is important to remember that price will almost always pull off very quickly.

The other place that these candles are often seen is at Level III of the three-day cycle. SPINNING TOPS, HAMMERS AND INVERTED HAMMERS 3. DOJI CANDLES 4. In this context they are considered to be an extension of RRT formation, simply making it a 45 minute RRT instead of a 30 minute RRT. So it is not the MM's indecision, they know exactly where they're going. RRT RAILROAD TRACKS RRT trick people into going in the direction of the 1st candle.

But it is snatched away quickly on the next. They are really an anomaly of an M or W pattern. The pattern simply occurs more quickly so it is compressed into a RRT.

HIGH TEST PATTERN The high test pattern occurs at the price of yesterday's high. Any of the Candlestick patterns are possible in this region and all mean the same thing. You should change direction and trade against the technical trend.

If the pattern is a double tap test, but then it fails when it closes above the high of the 1st, you do not have to wait for your stoploss to be triggered, rather you can shut it down and wait another opportunity. You may be able to identify a close just below the previous high and not wait for price to pull away and confirm the reversal, in other words you take the trade on the expectation of the reversal. This will create a remarkably small stoploss and a greater profit should it move back in the intended direction.

This is an area where using a sniped entry with a faster chart such as a T, may be helpful. LOW TEST The low test pattern is exactly the same as the high test pattern except that it refers to the price action and subsequent changes of trend around the previous low. News spike candles should not be used as a point of entry. You will often observe that a news spike candle pushes up very quickly and then down quickly or vice versa.

Then they quickly pull back to the other side and will be stopped out. News candles are really nothing more than a means for banks, brokers and dealers to grab your money. in the context of the market maker methodology can give: 1. A true reading of market direction 2. A reading of market momentum 3. Entry and exit signals 4. Moving support and resistance points 5. Targets for a take profit An exponential moving average, or an exponentially weighted moving average, applies weighting factors which decrease exponentially.

The weightings of old data points exponentially decrease giving much more importance to recent observations while still not discarding old observations entirely. The specific EMA's used in Mauro's charts are the 5, 13, 50 and bar EMA's. Price always returns to home base. Note that the EMA represents the 50 EMA on the next higher timeframe. So, if you are examining the 15 min chart, the EMA represents the current trend on an hourly chart.

In this way you can see the hourly trend on a 15 min chart. The 50 and EMA's are used almost universally by institutions and are even reported in public announcements. Crossovers of these EMA's can be used as buy and sell signals.

The 5 and 13 EMA's happen to match up the TDI used by Mauro and provide responsive signals. He notes however that any other rapidly moving pair of EMA's would achieve the same goal. The context of the EMA's is important. If you are in Level III the EMA's will almost certainly be heading in the wrong direction. However, when a reversal occurs, the EMA crossover will follow and this will provide a confirmation of the direction that has been taken.

The EMA's will follow rather than lead. It is very important that you accept and understand that no indicator will have the ability to identify when a trade should be entered. The pattern and the count remain the most important features. In fact, many people who use this method do not use the indicators at all.

Identifying the count and the patterns is central and is enough to trade successfully. An exception exists though, if you are having difficulty identifying the count on a price chart because there is too much noise, then using a rapid EMA such as the EMA-5, can show the patterns quite clearly. The 1st is drawn around the Asian session and simply denotes the area of consolidation that is expected during this period.

It does not mean that a range can only be broken outside of this box. It does not mean that you should not identify smaller ranges that occur during this period. It is just a guide. The 2nd is a smaller box and highlights a time when there is a high probability of the midsession reversal the New York Reversal. It starts at the beginning of the NY open and runs for about 3 hours.

If this period also encases the ADR high or low then the likelihood of reversal in or around this area is even more likely. However, as before this is not the only place that reversals can occur and should be treated as a guide only.

During this period, it is most important that you maintain "the count" because this will be a key feature telling you whether or not a reversal is likely. It is therefore significant to know how price acts at these levels the following day. These levels will often line up with other support and resistance zones. When this occurs, it is not uncommon to see price approach the line, and "throw a spike" over the line.

At other times price might approach but not quite reach the previous high or low. This tells you that the current price is already on the correct side. This will most often occur around the time of the London open. You should recall that this is likely to be part of the market makers aim of keeping traders trapped. If they've already made a high for instance, and there are positions trapped here then they will not want to push price above it again but will then approach it, perhaps even spike with an enlarged spread and pull away again.

So this becomes another piece of the puzzle to help identify where the "strike zones" are likely to be. AD R H I G H A N D L O W The ADR is normally plotted as an oscillator. It is however difficult to read in this format and Mauro has produced a version which is read on the price chart and provides a high and low value.

Understanding the ADR and where the high and low targets might be on the basis of the ADR can help to determine areas where reversals might be likely to occur. As with other indicators the real strengths of the ADR occurs when its values coincide with other indicators being used. These would particularly include the pivot point or with a 50 or moving average. As a grid, they can provide a clue about where today's high or low might sit.

As with other indicators, their strength really appears when there is a confluence of signals. In effect, the pivot levels are a grid of the ADR because they are based on the high, low, and close of the previous day's candle. This means that price will move between the M2 and M4 pivots.

The Pivot Levels The Midpoint Pivots of The Midpoint Pivots of interest after a red day interest after a green day R2 M4 R1 M3 Central Pivot Point M2 S1 M1 S2 Looked at another way: 1.

The HOD is more likely to be located at the M3 or M4 mid-pivot points 2. The LOD is more likely to be located at or near the M1 or M2 mid- pivot points Not surprisingly, when you consider these points on your charts you will often find that they are located 25 to 50 points above or below the Asian range.

Similarly, if you are able to enter a trade at the HOD then it is possible that a reasonable target may be at the M1 or M2. This can help when you are following the trend and trying to avoid early exits on pullbacks. Note that understanding the count is probably more effective but the pivots provide further confirmation.

If the previous day's range has been unusually large or unusually small then their predictive value is poor. It can be more accurate if it is coupled with an ADR indicator which tells us the average daily trading range of the last 2 weeks.

So, for example, if the ADR high lines up with M3 and is then also happens to be an EMA in the same place then this is a high probability area for a reversal. As with all the indicators, the trader has to act as a filter and be able to interpret that filter in the context of information being provided by the other indicators. And, be aware that the price action or chart patterns override everything else. The indicators are only there to provide a guide.

Is based on the close and does not tend to react to price spikes. Helps to confirm shift in momentum. This is further demonstrated by crossover of the EMA 50 and this is a significant confirmation when you have seen the reversal e.

via an M pattern. The crossing of its baseline represents a cross shift in momentum. So this pattern confirms what you are seeing on the price and on the EMA's. The overbought and oversold conditions of the RSI are seen at the extremes. When this occurs, in the right context of course, then you will be expecting to see M or W formations in the RSI itself.

Is also excellent for spotting divergence. This means that when the market maker is throwing an extra spike to entice traders to continue further into that direction, the RSI filters this out because it is based on the close. Consequently, a trend line on the price may show an increasing movement because it is based on the highs, while the RSI may be flat or even reducing. This is the divergence. It incorporates a number of lines: 1.

A basic RSI line 2. A trade signal line which provides entry signals when the RSI crosses over and this tends to be much earlier than would be possible if you waited for the RSI to cross the midline 3. A market baseline which replaces in many respects the usual midline of the RSI except that it is a dynamic line and so the crossover also occurs earlier. Volatility bands which are similar to a Bollinger band but applied to the market baseline of the indicator instead of price.

The volatility bands have a number of uses: 1. They act as support and resistance lines based on the close which is much stronger 2. When the bands re-contain the RSI line after breakout, it is a sign of weakening and an impending reversal. This represents a stop hunt. When viewed in the proper context, they can identify stop hunts, entries and exits Mauro's specific use of this indicator identifies the following indicator patterns which, when looked at in the context of the price action, provide an even more accurate means of triggering trades.

The patterns are: 1. Shark Fin Short. Provided the price is in the right area 25 to 50 pips above the Asian range , then this indicates that price is in the stop hunt area. Entering the trade at this point would still be valid.

Entering a trade at this point would still be valid. Again, this is only valid when it is occurring at the correct place. If it occurs during the consolidation phase for instance, it is meaningless. Not advised to trade back an anchor level 1. Same entries rules applied on M and W patterns. Written By: Allen Matshalaga. Allen is a professional forex trader, blogger and an online enthusiast who spends most of his time testing and reviewing legit ways of making money online and is determined to help others succeed.

Everything is very open with a precise description of the challenges. It was truly informative. Your site is extremely helpful.

All the time i used to read smaller posts which were unclear. Nothing compares to this article also which I am reading here. Fantastic blog and superb design and style.

Perhaps you can write subsequent articles referring to this article. I desire to learn even more on this! Very useful info particularly the last part 🙂 I care for such information much. I was looking for this certain information for a long time. Does one offer guest writers to write content for you personally? Again, awesome site! We will profit from your profit. Hey there! Do you use Twitter? Sweet blog! I found it while searching on Yahoo News.

Do you have any suggestions on how to get listed in Yahoo News? Many thanks. You have some really good articles and I think I would be a good asset. Please shoot me an email if interested. I for all time emailed this blog post page to all my contacts, as if like to read it then my links will too.

Published By: AVFX Trading HUB On Jan 15, Posted in: Blog. Hi, its Allen Matshalaga here, your friendly neigbourhood content creator. If you do not have a deriv forex, synthentic indices or volatility account, open a demo account now , so that we can move on together and everything makes sense.

Confirmed M and W 2. Advanced M and W 3. RULES Same rules of entry and exit as its applied on M and W patterns. You can look at the examples below. The Japanese candlesticks can sometimes be confusing if want to clear spot the btmm cycle, be sure to switch the Line chart on your dashboard.

You will see your charts as simple as below:. HALF A BATMAN Incomplete M and W pattern. Market maker trap and leave trapped volume untouched. RULES — Outside structure, first leg. ID This happens on 15 min chart. Intraday 50 bounce. Trend continuation after formation of anchor. Result massive pips when caught on pairs with big ADR value.

RULES Same rules apply on ID M AND W OFF MAYO. Market maker are creating a reversal pattern off the EMA. Can happen at any of 3 levels but mostly happen on level 2. Not advised to trade back an anchor level 1. Same entries rules applied on M and W patterns. Written By: Allen Matshalaga. Allen is a professional forex trader, blogger and an online enthusiast who spends most of his time testing and reviewing legit ways of making money online and is determined to help others succeed.

Everything is very open with a precise description of the challenges. It was truly informative. Your site is extremely helpful. All the time i used to read smaller posts which were unclear. Nothing compares to this article also which I am reading here. Fantastic blog and superb design and style. Perhaps you can write subsequent articles referring to this article.

I desire to learn even more on this! Very useful info particularly the last part 🙂 I care for such information much. I was looking for this certain information for a long time. Does one offer guest writers to write content for you personally? Again, awesome site! We will profit from your profit. Hey there! Do you use Twitter? Sweet blog! I found it while searching on Yahoo News.

Do you have any suggestions on how to get listed in Yahoo News? Many thanks. You have some really good articles and I think I would be a good asset. Please shoot me an email if interested. I for all time emailed this blog post page to all my contacts, as if like to read it then my links will too. What a data of un-ambiguity and preserveness of precious know-how regarding unpredicted emotions.

Ensure that you update this again soon. Everything is very open with a really clear description of the challenges. It was definitely informative. Thanks for sharing!

It looks fine but when opening in Internet Explorer, it has some overlapping. I just wanted to give you a quick heads up! Other then that, superb blog!

Oh my goodness! Incredible article dude! Thank you so much, However I am experiencing issues with your RSS. Is there anybody having the same RSS problems? Very good information. Lucky me I found your website by chance stumbleupon. Ahaa, its good discussion about this article here at this weblog, I have read all that, so at this time me also commenting here.

Thank you a bunch for sharing this with all people you really recognise what you are speaking approximately! If you want to increase your experience just keep visiting this web site and be updated with the most up-to-date info posted here.

Your email address will not be published. Save my name, email, and website in this browser for the next time I comment. Share and Earn Points! Market Maker Method Steve Mauro. Market Maker Method. BTMM Patterns and Setups. This is what we will be looking for as confirmation before entering a trade. LONDON PATTERNS. Type 1: W and Type 2: M Patterns. Type 1: Half Batman Bearish RULES — Outside structure, first leg. Btmm indicators free download MT4.

Message from the Author I hope you enjoyed this article and it was an eye-opener. If you found value kindly share to your fellow traders on social media and earn more points. Related Posts. Leave a Comment Cancel Reply Your email address will not be published.

Encourage traders to commit to positions in a direction that is opposite to where the real trend is going to be. Some essential questions are: 1. This is the preferred point of entry for most of these trades, particularly the second leg of the M or W. Over the years I have helped thousands become profitable. Peak formation lows 3.

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