all right let's get started i want to welcome everybody to the family we got a lot of new people here a lot of new students i'm very excited but i want to i want to tell you a little bit about myself a little bit about a story before we move forward why do you know that heidi and i like to go to the beach every summer we stay out there a few months at a time and uh some of you that are in florida know the area know that we had a monster storm in july about i don't know about two weeks ago and we were held up in the uh the condo for i don't know two three days wind was blowing 30 40 miles an hour we were stuck in there i was going a little stir crazy internet was down and uh finally you know the storm dried up sun broke and i ran downstairs as soon as i could get out of that place i was going stir crazy and i went on the beach and uh there was a lot of devastation there was a lot of sailboats turned over catamarans jet skis toppled over on the trailer all the lawn furniture was gone and when i got to the shoreline i looked both directions to the left and to the right and to my amazement there had to be i don't know 10 million a thousand i don't know the number was insane starfish laying on the beach and they were just everywhere i mean i was standing there around my ankles and you know heidi was dragging the baby behind me and uh i bent over started picking them up started throwing them back i picked up one i tossed it picked up another one tried to skip it threw it in there you know like you skipped a rock grabbed another one skipped them in there i just started throwing them in as fast as i could and heidi came up to me she finally caught up with chase she was a little out of breath and she goes what are you doing it doesn't matter look at this look at all these starfish on the beach and i picked another one up in my hand and i showed it to her before i tossed it back and i told her heidi to this one it matters tossed it back you guys matter to me you laid out the money for me and now i'm here for you what i want you to do is dismiss all the other crap that you've learned about trading for the next four days and i want to be here for you i want you to sip the kool-aid and just be become part of something bigger than yourself i always say this and it's the truth this is the last 4x market training you are ever going to need but the problem is if you go outside of this area this room this group of traders to find solace or to find comfort you are not going to find it because people don't know what this group in here knows people think i am a quack a nut job a sicko a psycho whatever they don't believe that what i say to be true the fact that you join this group proves to me that you know that i'm not crazy that maybe i'm on to something i promise you subscribe to something bigger than yourself become part of the family wholeheartedly and you will have success in this trading business okay so let's get started all right this is one that pisses everybody off no trading this week i want you to stop trading for a couple of days money when it's on the table good or bad clouds your judgment especially if you're losing right if you're in a negative open float or if your trades are down or you're getting stopped out you're not going to think with a clear head and if you make too much money the same thing applies you're going to be so jacked up that you're not going to listen to anything just turn the platform off for a few days the market's going to be there when this class is over i promise and just hang on absorb the knowledge with an open mind and then be ready to trade at the end of this class going into next monday okay what i wanted to mention to you is that we're gonna do a little something different this class that we haven't done before i'm gonna have carr kim and granny on the last night come in and give you the market maker biases going into next week what that's going to do is after you have the information you'll have a firsthand idea how to apply it for next week's market okay some of the points i mentioned i'm asking this as a favor put aside everything you think you know to be true about the markets open your mind to the possibility there is in fact something going on here and then we're privy to it allow yourself the opportunity to have success and something i say in my regular presentation don't try to mix systems into this don't say oh steve this is great but i like the slingshot or i like the rainbow stochastics to add to the bottom of this it'll really make it great that stuff is unnecessary don't do any of that stuff just give me four days sip the kool-aid i promise you you'll be happy all right this housekeeping slide usually we don't need to worry about cell phones on vibrate i'm gonna try to break about five to ten minutes every hour quick bathroom break grab a diet coke etc i don't put out a book or textbook or notes so i'm gonna insist that you write stuff down or go back through the recordings and take advantage of that and take your notes then just enjoy the class can mention this but it's important if you're a retake don't ask questions about sections that we're not covering yet gloria if you're here don't ask me about the adr on day one save that for when it's supposed to be presented if you have questions and you just can't stand it email them to me or save them for the very end of class during the presentation all right let's not try to interrupt the flow of what's going on all right i want you to be courteous to your other students in the forum in the classroom and in the live classroom we all paid to be here everybody learns at a different pace if i get going too fast don't be ashamed to say hey steve man look you're jacked up on diet coke i can't keep up slow down a little bit i'll wait up for you guys all right i'm here for all of you that's not some sales or the sales part's over i'm here for you guys i answer emails if you're struggling and you're embarrassed to ask me don't be you paid to be here i'm here to get everybody going in the right direction on the right track all right we're going to do some homework uh possibly going to end up posting in the forum but here's the email address the homework goes to steve mmm4x.com the guys that are having the most success girls too have done all the homework some still do homework on the weekends or on a slow night i know you're saying ah i didn't pay this guy all this money to sit here and do homework i promise you that homework is the key to success and what i'm talking about if you can't see it in hindsight you will never see it in real time in foresight so the idea with the homework is once i illustrate to you how the market makers work the market is to go back and to make sure that you can see the stuff developing see the levels and see the things that i point out to you in the past and once you can rapidly identify those things in the previous charts or in history you should start to recognize their appearance in real time everyone should have gotten a glossary if not is in the forum keep it handy for the next couple of days it might say some things that don't sound normal that's normal for me uh the terminologies are on there the best thing to do is tonight after class if you're a little lost just read over that a couple of times and get familiar with some of the things i say that's all right that's what it looks like you should have it okay some people are saying they can't see the slides we're on the glossary page if you can hear me but not see slides moving i'm everything's working on my end i'm positive so log off and log back on okay all right let's get started we're all here to learn how to beat the market maker and trade in line with them all right so to beat this guy or these group of guys you got to understand their objectives and what they do their first objective is to induce traders to take a position how do they do that they circular trade which means they trade between them they trade from bank to bank back and forth they produce wide range swings the swings create some type of activity in the market even though there's real no really no volume behind it your account is of no use to him you making a deposit of fxdd is of no use to the dealer until you click the mouse until you take a position so his job is to induce you to click the mouse by showing you something on the chart that gets you to take action usually sets up some type of textbook technical that you've read about or a breakout system some type of behavior to get you to click the mouse the second objective is to create panic and fear to get you to think irrationally now i talk about the illustration as they spike the market quickly and pull away from those zones which validates the pending orders or gets people going in the wrong way that quick move or spike or inexplicable price behavior out of nowhere they spike the market on a friday afternoon right before the close that creates a panic in you and if you're in a position when they snatch the market away from you that creates a panic gets you to lift your stop and think irrationally that irrational behavior ensures that they will margin you out or eventually get you into trouble and finally what the business is about from the beginning is the money so they gotta hit the stops and clear the board and if you lifted your stop they're going to drag the market in such a way that it forces the majority of the traders into margin issues because the bottom line and the most important objective is to pocket your money so they can get their christmas bonuses okay am i going at a good pace okay in order to beat this guy you got to know what they're capable of doing these slides were given to me out of a textbook in the back office in dubai called the metatrader4 managers user guide okay what you're saying you didn't know they had a book did you think that 4 trillion is floating around without a book or some type of idea on how to beat the traders somebody wrote a book on how to take your hard-earned money away the business is not random okay market makers can issue you a re-quote at will you see the three buttons in the center return send confirm reject they simply hit the reject button and you are forced to reissue your order which in turn the market's moving you get re-quoted at the new available price keeps you from getting a good fill getting a good entry market makers can trigger all the stops in a range left arrow says stop out check the box the right arrow unlimited across the board we got x number contracts and open float at this price point we want to hit the stops they simply add that hit okay notice it's in different languages they hit it done they got what they need market makers can toy with the spreads you know those robots that work so wonderful in demo that are garbage this is why in demo you get an aggregate of about three feeds three price feeds the aggregate of three feeds is going to be much smoother than what you're really up against on a real account in demo since it's not real they could care less about manipulating the spread widening the spread to pick up the stops they don't care so what happens is you spend 97 which by the way is the refund price point for clickbank you spend 97 bucks and buy a robot anything over 97 bucks they got to give you a refund anything under they do not you own this robot you put it on an account in demo it makes 10 million dollars in 25 minutes you're jacked you put your hard-earned money in the account and then guess what they take that little slider where the arrow is and open the spread on you you'll pick up your buy side of the order and the sell side or the opposite closing position side will never hit there's a lawsuit right now i believe it's with fxcm that states this exactly i think sent it to me and if i remember uh someone reminds me of an email i'll post it in the forum since it's a private forum i could say the name i guess can i can i don't know the dealer is being sued for having these backside plugins and using these against the traders now i want to say that not all dealers use this there are some honest dealers out there usually the ones that are backed up by banks or i know kim and scott represent good clean dealers but what i'm telling you is that this kind of crap goes on that's why the nfa is trying to regulate this business and clean it up a little bit okay do you ever open up two different platforms and notice that maybe one high of the day is 23.55 and another one is 23.57 do you understand that the dealer can hold the price point with this plug-in right here here's how he can set the high low and close on a bar based on where the orders are so if the dealer sees stops at 23.59 or if he sees a bunch of orders at 2360 he simply types in the high of the bar to go to 23.59 let's say there's stops at 55. the dealer goes man we got stops at 55 let's hit 59 and clean the board remember i told you his third objective is to hit the stops and clean the board this is how he's capable of doing that okay let's say there's pending orders at 2350 or 23 48 on the low side he doesn't want to activate those orders because he might end up retracing going back down he will make the low 23.52 and leave the pending sitting there and not absorb those orders because he doesn't want the negative drawdown okay these tools give the dealer an edge an understanding that these are out there switches the edge back in your favor they know who's in margin trouble ever do something stupid and lift your stop and get yourself flashing red and red and black back and forth because you're on the edge of margin he knows this he has the whole list of who's in call out trouble it's on his desktop there's a trade designed called the straightaway which i'll discuss here this week to finish these guys that are on the fence and call them out and take the balance of their account it's up to you to know the call out level of your dealer you guys that are overseas certain dealers have a zero percent margin call that means they could take every penny from your account some have a 25 some have a 50. they could even take the front side margin that you're using to hold your positions open you need to understand this understand that when the traders are in trouble and these margin call levels are on the fence the dealer will issue a straightaway trade to finish these people off and that's where the straightaway trade comes in and that is the only reason it comes in is to take the money from the traders that are on the fence and flashing red in their account someone's asked me if i said something about fxcm do you work for them because if you do then i won't say it again all right i had to get a sip of diet coke there market makers manage risk against the open positions look at the summary line on the bottom of the slide listen it's a business they're in business to make money send me an email i'll talk to you about fxcm you're in business to make money they're not in business to see you succeed you're in business to make money as a trader you're in business to make money as a dealer that's the way it works in order to trade the right way you have to be in line with the dealer and he's not going to come back for fred for his one order they're not going to move the whole market back to get ben it's just not going to happen so trading in line with these guys gives you a major edge this is every plug-in i just showed you on the account manager's desktop anyone that runs this platform has this and i'm going to show you a picture of what they're looking at in a minute or what the room looks like this is what they see they know everybody in margin trouble they know the open orders they know their open positions how much equity they have as a dealer to work with listen some of you are upset about accounts contact kim and scott at compass they're the ibs for a couple of good dealers they will get you going in the right direction all right enough said about that contact those guys at compass that's why they're here to aid you guys and getting good accounts at clean dealers okay account manager's desktop he knows everything that's going on and the accounts that he's managing you have to understand that this is what you're up against guys ever seen this before it's been floating around this is one of the rooms at ubs but ubs is not the only dealer that has a room like this each one of those guys is managing their risk monitoring their equity and taking or looking after the customers i want you to understand that this is not a game or a hobby the dealer is lying in wait for you to make an uneducated emotional decision decision such as lifting your stop loss or over leveraging your account if you've been kind of half-assed trading the business and treating it like a hobby i encourage you to take up photography it's cheaper but if you are serious and want to trade in line with the dealer and can master the principles i'm going to show you this week this stuff that i just showed you about the dealers should be irrelevant to you and unimportant if you could identify his behaviors and follow what he's doing okay okay so how we beat these guys we have to understand where they set up their moves and what's going on they make some trap moves those trap moves start at the beginning of the week sunday going into monday edwin check your you might have to log in and log back out okay look a lot of people are saying i'm having problems can you in fact see how to beat the market maker slide trap moves just throw a couple of y's up there don't go crazy okay fantastic thank you the trap moves are made the beginning of the week why they'll jam you up and hold you in open position from sunday monday the beginning of the day five six o'clock when they set up the channel the market maker spread they already have some number of jammed up traders the beginning of the session at london open and us open there was a false move to jam up the traders in both sessions and end the day jamming you up the end of the session and the end of the week friday they will make an aggressive move and pull back against that move to trap the traders into weekend carry okay i'm trying to keep it a little slower so you can write so think for a minute they make the false move at the beginning of the london session they run the trend at the end of the london session they will make one more extension which is false then pull back go into consolidation for the u.s and then possibly reverse end of the session continue with the trend beginning of the session hit that number again don't break it and come back the end of the day four or five o'clock in the afternoon or if they end the trading day at noon which a lot of times they do the price will go back into consolidation which is the end of their day and leave you jammed up into the next day now think for a minute that i've told you this that they make these trap moves at those times a day how many times if you sat there one o'clock in the afternoon all the way into the next night aggravated that there was no movement in the market you got jammed up in the consolidation zone and had to sit there until the next night london opened when something started moving again the beginning and the end of the day is defined as five o'clock new york the end of the day is five o'clock new york it's a 24 hour cycle i'm going to illustrate it for you in a second here in detail understand that the pattern presents on a larger scale throughout the course of the week okay some of you just installed the indicators i'll give you a brief update on it these double tracers right here let me grab my little ballpoint pen i'm excited okay these little tracers right here and right here these two lines this is friday this area is sunday this is monday this is the beginning of the week the double black tracer is the beginning of the week so here you have the weak beginning market makers make the aggressive move to trap the traders long at the beginning of the week and then pull the market away from those traders there's your weak beginning trap move in fact this move just played out in most majors across the board on monday they made a triple top high and jammed all the traders and the bottom fell out my traders caught that move and i know what happened on on the recent one is they made the high friday they came back hit it again in asia and at the london open stop hunt cycle they hit it again so you had a triple top high lined up with the london open yes look at the majors sunday monday okay beginning of the session right i said beginning of the week sunday monday they'll make a jam move trap to traders along for the week the beginning of the session stop hunt in both directions which triggers the pending orders right break out traders bracket this nice right there grab the pendings they pull back stops out those breakout traders they hit them again they come back don't allow them to see a profit shift the zone off of those traders game over you got whipsawed uh long and short in one session and if you don't have the guts to come back the third time and a lot of people do not you're jammed and you miss the trade okay so now you know when you're looking for the false moves end of the week here's friday right here's my double my double weekend tracer friday sunday monday okay here's friday before they end the day they spike the low pull back and the weekend consolidation shop the lower level shorts are jammed for the weekend and gotta pay rollover right to add to the beginning of the week they opened with a gap they didn't used to gap a lot in 4x a couple years ago when people got their butts kicked in equities they started flocking over here in droves to the forex market because of the leverage the ease to trade you don't have to memorize 150 000 stocks there's a handful of pairs that you can work with the forex market started sounding very appealing to people that lost their pensions now because there's more volume these guys added a gap to their arsenal against you so what i'm telling you is not so many words or in too many words don't carry your trades over from friday into sunday monday not necessary if i told you they're gonna jam you on friday and leave you trapped and you caught this m in the u.s session and you shorted here and you see the hammer to the low and it pulls back take your money off and call it a good week okay end the day and consolidation and the week off of the high 25 to 50 pips to jam the traders depending on the pair and i'll talk about that in a minute okay good stuff another friday example they went up to the high friday sunday monday here's your formation here's our entry in our group this might have been a scratch because you have a big entry bar we might add a pass on that i know jim nicholson got in right there though okay if this bar is too big this is a pass this is no entry okay now here's the gap i talked about this looks like by the dips in an uptrend right so people got jammed up all in here friday they closed they stuck them because people thought the market would rally at the end of the day right whatever the whatever the philosophy is they gap down hit the stops that were all in this range right here and all these guys that were stuck long in here they gapped them right out with this hit their stops now the shitty thing about the deal that he can do about that is this if the dealer closes at a price point on friday and he gaps down 100 pips or 80 pips or 50 pips and opens if your stop was five pips below the candle he gives you the fill at 45 minus 45. how can he do that i had an order in minus five or minus seven the answer is that is the first price available on sunday at the open you were filled at the first price that was available at that level so you thinking you have a nice stop in place and carrying stuff over the weekend is crap if this has never happened to you i applaud you if you thought about carrying trades into the weekend this is why you do not you don't know what's going to happen with the economy the way it is you don't know if they're going to raise the debt ceiling lower the debt ceiling fire the president you don't know what's going to happen you don't know if there's going to be some mass exodus in your in the eurozone to get out on from underneath the euro and there's burning and buildings collapsing over there you don't know if there's going to be an earthquake market makers use that crap as the opening reason to gap the market aggressively against you it's crap but it doesn't give you back your lost equity when you hold the trade over friday i've seen gaps come all the way back to the low i've seen sick stuff with the gaps so what i'm telling you is not so many words is don't carry trades from friday take what's given to you and get out okay now here's a typical week this is the structure that you need to memorize to understand the weak here's what happens you know i have the small pattern that i draw for you guys right the weak is comprised of the same pattern why you ask the answer is because the behavior is the same on the larger time frames so the market makers counter to your behavior has to be the same so what happens is this remember i drew this for you i don't know if you can see that purple stop hunt high drop pull back right that's the intraday pattern as i've illustrated for you before i'll do it again in a minute stop hunt high drop now on the bigger picture consolidation stop hunt low trap lower level shorts trigger the stops of the weak long holders run it up a big fat m which is a multi-session setup by the way the most powerful setup is the multi-session m and w what is that i'm going to show you pictures later but here's one for you right now the definition of a multi-session m or w is simple market makers hit a level they repeat the level in another session or another day this example here is wednesday market makers made the high of the week the how the how right they came back near the how but failed to break it because they had trapped volume or pendings at that area that if they come back and repeat the level the traders are released okay what are you talking about they release the traders how many times have you been in a trade and said if it gets back to break even i'm getting out if it gets back to minus five i'll take my lumps and get all my life how many times have you said if it comes near where i got in i'll just take what i can get and be happy i didn't blow my account if you said those things to yourself you're not alone this typical m w behavior is based on that mentality or psychology the traders that think like that because they don't understand the market put their pending orders in around here to get out at breakeven they'll put their take profit at plus one zero minus two just to get their money back and be out when market makers come near the level they don't allow that volume to release be released back into your accounts they don't want to release it back into the wild think for a minute if there's 500 million dollars at wednesday's high or the high of the week they're not going to break the level they're going to come near it because remember i told you they're so greedy they got to grab whatever money's still there and then they'll shift away for three days the market is based on a three-day three-level cycle write this down the market is based on a three-day three-level cycle market makers will trap lower level shorts higher level longs and make a unidirectional swing for three days or three levels if you look at this example that's up there you have a false move weak beginning which is a variation on the pattern stop hunt high coming out of friday which if you notice this is exactly what happened this week they hit it hit it again asia hit it again london open bottom fell out okay now they then repeated this behavior on a two-day cycle stop hunt low jammed the traders run this run was made three levels or two to three days approximately the midweek reversal which there's a midweek reversal almost every single week you can have multiple levels in one day yes that would make it a two-day cycle now wednesday they put in the midweek reversal like clockwork right here they trap for the high of the week they repeat the level but fail to break it the spread opens up to pick up any pending orders on the other side of wednesday's high or the high of the week if you notice something the highs of the week will coordinate with the stop hunt triggers at the beginning of the sessions think this is a stop hunt high trap for london they repeat the same stop hunt in the u.s session two sessions formed out in the middle of the week at wednesday after two and a half days of rise at three levels looks like a midweek reversal to me you then get a unidirectional swing unidirectional meaning one direction a unidirectional swing for three days my friend david geon and bruce from new york would have caught this as a swing trade and maximize their gains looking to exit this trade friday u.s session why friday's the last session of the day we know the low would probably come in between 9 and 10 or 9 and 11 in the morning at the session changeover the reversal comes so we look for the low of the day london to look for our exit we get the spike a repeat of the level and into consolidation to end the week if you are a swing trader that is your exit level one level two level three three levels of drop spike the low and the consolidation lights out couple hundred pips in your pocket the pattern that i'm going to draw for you and illustrate for you is observed intraday intercession and intra week it also plays out on the dailies and the four-hour chart but for our purposes here we're looking for intraday swings and spot trades only this information will help you in your larger term charts and any other market that stuff can be traded okay here's a typical weekly market structure as i've just discussed it with you but illustrated again on a different chart false move weak beginning spike the low spike the high into consolidation accumulate and evaluate market makers accumulate and evaluate i hit the high hit the low picked up some pennies what do i got i i spiked high again what do i got i spike low what do i got accumulate and evaluate steve what are they evaluating how good of a trader i am no they're evaluating the contracts and the money how it straddled over their spread that's all it's about the business is about the money now you have a false move spike the low the v3 is vector three candles i'll talk about that in a minute there's the big fat w formation spike the low pull back hit it hit it again jam up the traders validate the short sellers averages are open this is a down cycle in any other textbook except mine straight rise in the consolidation stop hunt low rise next night stop hunt low rise next night grab some pendings stop hunt low rise rise big 33 trade another trade we're going to talk about a 33 trade is a setup i'll lay the rules out for you on day three of the third level you have an intraday three level rise that trade will absolutely lead to a reversal think about from the market maker perspective for a minute every time a retail trader buys a market maker must in fact sell to him to provide the liquidity they are not pairing you up lou in new york with in new jersey they're not doing that they're managing their risk by offsetting that by taking some buys and some cells to manage their risk but they are not going oh let's see lou wants to go long let me find pete in southern california looks like he's a seller let's match those two guys up and let them hold hands and go against each other that's not what's going on here that is a marketing ploy and it is pure excuse my french the dealer the reason you get filled so quickly the dealer takes the other side of the trade he has some shorts and some buys that's just the way it is the short sellers offset his open long equity the long holders offset his short equity it balances thanks russ forgot what language it was okay so now keep in mind the three day cycle day one day two day three you have three levels of intraday rise after the stop hunt the reversal is imminent i just was talking about market makers equity he's not unlimited here's what he does you're a retail trader you buy i sell to you day two you buy again i sell to you again day three you buy i sell to you again i look at my books and i am getting a little low on equity i need to get some back your net long as a trader or as a collective group of traders market makers are net short how do you get paid on net short correct the market to get your money back on aggregate at level three market makers go the heaviest on the retracement market makers are rewarded and pocket their money and the cycle repeats okay so now look at the week false move weak beginning trap to traders evaluate what do we got you know what the averages are showing down we got some traders trapped long we're net long right now let's make the false move induce everybody to go short what is perceived in the marketplace from retail traders as momentum is actually and has always been the move by the dealer to trigger the stops when you see an aggressive move quickly and fast like that that is a move to trigger the stops it is done on less volume and it gets the traders look at think look at this from a technical standpoint cover this whole cover that this is what you have in front of you you have an aggressive vector three or three candle aggressive move down momentum breakout traders might have been rewarded on this deal because it's 100 pip drop the averages are open and cross down that's a technical short everybody fell for this market makers applied the brakes lower level short holders snatched it away went into consolidation in here that consolidation at the lower level builds short contracts from the amateurs that sell the rises in a downtrend sell the rallies in a downtrend that's how the textbook goes that move selling the rises in a downtrend jams up the majority of retail traders short now remember i told you there's a trade designed to get everybody in margin trouble and to keep them jammed that is called a straightaway and it comes out of level one it is right here on the chart okay see the marking it's right here here's what happens you sell the rallies in the downtrend you sell the bounces off the moving average right not understanding the cycle these are short move continuations for retail traders short move continuation for retail traders in here they have some number of people in margin trouble right there and some number tracked those traders are now stuck market makers are counting on you to make an irrational decision the irrational decision being lift your stop scale in the wrong way to a contract add orders to it average down average up average sideways whatever you want to call it they're counting on this they then at the beginning of the asian session shift the zone away from those traders quickly see it four straight rise green bar they then go back into consolidation to accumulate more short selling they push down but they don't go past all these levels they don't go past the levels because releases the short traders that want to get out with plus one plus five plus ten and get their money back that have been down all night what's anticipated at a level one after an aggressive w formation is a straight rise this is the day that most of the breakout traders will get rewarded this example they threw a small stop onto the low and stopped out the short pendings but the long pending side was rewarded and if you notice when they come out at london it's a monster move straight green candles right out of the box why the aggressive behavior gets everybody into a panic that is net short or in a short position with multiple orders or big contracts or whatever you're trading that aggressive move pulling away from the low of the weak pulling away from the low of the week jams all this volume in here and jams them up some people are asking what dnc is it's a new term it's just simply what i say and i wanted to remind myself of that thank you whitney do not counter trend trade coming out of level one do not counter countering coming out of level one will jam you up because we expect straight rise because market makers got to get those contracts and hit the triggers of the of the people that are stuck don't counter that's the place i don't want you to counter anywhere else it's okay when i say counter trend i mean counter trend market maker trend okay next night we expect this stop hunt low rise the next night we expected stop hunt low rise they tricked you out with a little false move but you got your stop hunt low pins to the mayonnaise rise notice how when you get to level three after the rise the big candles or the aggressive stop hunt candles turn to the top side here and here they are now trapping long holders understand they are trapping traders long now you guys just hang in there just write down mayonnaise we'll talk about it as a trader i had a diet coke but seven diet coke you gotta understand how to read the moves and understand what's going on in the market where the trap volume is what the market maker is doing how he's jamming up the traders that is why it is not necessary to analyze your charts all the way back to kingdom come in february of 07 i mean 1907 that people that follow technicals do reading the market maker over the last three to five days at the course of a week will give you a directional bias identify where the volumes are trapped and where the retail traders are stuck and you will have your directional identify the midweek reversal tuesday wednesday or thursday it's coming in mid week sunday monday tuesday reverse wednesday thursday drop rai sunday monday make a big fat m drop tuesday wednesday thursday and friday and pull back this is the cycles you have to be able to walk up to a chart and identify our group of traders that understands and saw the sell-off coming when they hit the high three times on sunday night going into monday when market makers take the trouble to go back a third time to a level and don't break it the correction is imminent when market makers go back a third time repeat the low of the day the rise is imminent they didn't go back to the level because they felt sorry for you want to let you out of your trades they went back there a third time because there was so much freaking money down there they couldn't stand it they had to come back and grab it if you understand that and start understanding the other side of the chart not the side that you see the side that they are showing to you and start to think like they think you will start to have success in the business and if you get it quickly a light bulb will go off it'll be almost immediate you must anticipate when and how these moves will present themselves the timings i'm going to talk about the session starts session ends the brinks trade i will cover all of this for you you can truly beat the market maker by simply trading in line with his behaviors for you new guys because in the session changeovers we anticipate a reversal new york reversal part of the cycle i want you to start to look to take your profit if you're a london trader you need to enter in the london open and be out by the end of the session if you're a new york trader i want you to look to make your entry between 8 and 11 9 30 we'll talk about that look to be out by 12 1 o'clock in the afternoon when your take profit is hit or when the market comes to rest into consolidation to trap the traders for the next day you take if a trade does not see substantial profit in two hours take your profit or a small loss this is not negotiable why if you see a perfect w formation or setup and it doesn't move in the profit within two hours upon further analysis by the market maker the contracts were not straddled in the configuration that he had hoped for this lack of configuration forces him to hold the level beyond the two-hour mark to accumulate the accumulation phase on an extended period of time could lead to another stop hunt against the original position you thought you had correct save yourself the pips take a minus seven plus five plus two minus three scratch yourself out and get on with your day example level one consolidation okay we had a three a three hit to the high in the gbp crosses they went high one more time at the london open to validate the long holders to make them feel good about themselves warm and fuzzy the bottom fell out today they showed what appeared to be a w going into the red box there's no chart up here i'm talking take notes market makers extended the consolidation zone and did not rise much off the load today they then hit it again why three levels wasn't seen they needed one more hit to the low to hit their goals to reach their targets sam nice to see you here buddy if the second leg presents let's say you took a v bottom let's say you took stop hunt low three candles to the low and pull back and you took that trade if you're in that train you're counting two hours and say an hour and forty five in it paints a second leg and it pulls back restart the clock the two hours is not negotiable don't come back and go i waited five more minutes because i don't want to hear that if they don't move in two hours the criteria or setup for which you took the trade is broken down they got something else going on their contracts aren't straddled right they're going to make another stop on a remove sometimes you'll take it off and you go damn i had it right sometimes you'll take it off and go ahead stop on it again the reason for our setup or the criteria which you took the trade on is now broken down it becomes a 50 50 gamble we are not in the 50 50 gamble business go to the nearest indio indian casino if you want to gamble your job is to take high probability setups based on market maker behavior he shows you an action you react to it he showed you stop hunt low you buy against the retail trend take it long he comes back to the level but doesn't take out the low the trade is still good long start the clock over he holds the second leg at plus five and goes into consolidation for two hours you scratch the trade and give yourself a break okay that's the rules they're not negotiable write them down there are three market makers strategically positioned around the world one for each time zone some have five desks some have three desks but for the most part they work about six to eight hours a day here's the difference you're one guy you put your trade on you lift your stop you sit there like a and nurse it for three four or five days these guys go about their business they're unaware of the suffering that you're putting yourself through they're unaware of the fact that you've been drinking red bull punching your wife every day because you're in the wrong trade and sitting there like an idiot waiting for it to come back if you get jammed up at the midweek reversal you can forget it for three to five days if you get jammed up at the midweek beginning or the false move week beginning on sunday monday you can forget it till wednesday or thursday they don't come back to the levels to release the traders because that's how they make their money so if you sell into the stop hunt down you got two to three days of rise before you're gonna even see a chance of getting out if you buy at the high of the week wednesday when they make the first leg of the the wvm and you buy long at the top of the worst possible place which people do by the way there's a whole system based on that by a guy named i don't need to say it he takes the breaks of the highs and the lows i promise you it's not a profitable system you don't need to waste your time if you buy at the worst possible point on the chart unidirectional swing dragging you to friday into the weekend sorry about your luck buy some red bull because you ain't getting out our job in this group in this room of traders is to identify those extreme points on the chart take them in the right direction against the herd and convert a spot to a three-day swing or maximize your gains by following the market maker bias that's it that's the job know it sounds too simple but when you can understand what they're doing on the chart it really is so keep in mind when you become exhausted all they do is come in change shifts talk to each other they get started with a fresh set of objectives and targets and you're sitting there like a nut case hoping you don't burn your account down that's why you've been struggling in this business i showed you an army of traitors against you in a room that unless you understand them you really have no chance this week i will change that for all of us all right this is just an example to show you the desks if you look right here they got uh one two three four five desks they got some pretty good coverage man they're up chicago new york london hong kong san francisco how are you one human being gonna trade against five desks that are all fresh feeling great come in in their suit drive to work in their bentley convertible and you're exhausted sitting there nursing a trade trying to get what you had back it's very tough if you don't understand all right same thing here's their coverage three desks see them one for each time zone one for each session okay an extended rise by the market maker of three levels the levels are not going to be stair step but when they are it's game over the levels can be described as bursts or movement in price if you notice something about the charts they will have an aggressive move in the consolidation an aggressive move come into consolidation an aggressive move come in the consolidation the consolidation zones are put there to trick you and i'll talk about it an extended rise of three levels will always bring a correction think a market maker lent out his money lent out his money lent out his money i'm running out of money i need some back correct on the drop i buy from the sellers buy from the sellers buy from the sellers man i'm running out of money i need some back let's get a quick rise out of here get my orders back on the counter trend trades the 50 ema should be used as your take profit the 200 ema which lags and will be about the middle of the range will offer the second take profit the middle of the range is known as the 50 fib all you have to do is subtract the high from the low and divide by two take the high number minus the low the high of the day whatever that price is minus the low of the day gives you 100 pips to make it easy 100 pips divided by 2 is 50. if the price is moving down add 50 pips to the lod low of the day that's your fib retracement okay okay i'm going to talk about the cycle that i talked about in my presentation but i'm going to be much more detailed and we're going to go over that after the break let me finish this slide actually i'll break here it's a good place to break all right i'm back hope you guys are doing okay is seven minutes long enough we're gonna do is i never really went over the agenda tonight we'll do uh do seven-minute bathroom breaks every hour and then uh we'll do about a half hour break around eight eight thirty something like that now it's already seven twenty so maybe eight thirty enough for you to grab a little something to eat and then uh we'll finish out the night and we'll have one more seven minute break and we'll go through okay that's pretty much how i lay it out that's the same way we laid out for the live venue also okay hey mike how are you doing it's nice to see you all you guys nice to have you here okay i left off talking about the pattern i'm gonna draw for you just like i do in the presentation but i'm gonna be much more detailed and i'm gonna cover the market timings which are very important take notes the first two days and now especially i'm going to lay out the structure and the behavior that these guys do then the last two days we're going to break it down and help you to identify it on the chart so what i'm saying is the first two days are vital the chart stuff you've been trading is going to be easy for you the trick is to dump your old baggage and open your mind to the next couple of days of material and allow it to settle in and sink in and become part of how you think or how you know the market works out okay all right so look i talked about the daily setup there's the accumulation phase they set the initial high and low the ihod and the ilod the initial high of the day initial low of the day okay write these terminologies down the stop hunt we call sh abbreviated is the false move against their real intentions that is the move that for years people that didn't know me and know me now thought was momentum as breakout trading when they saw the spike the aggressive move they thought that was the breakout i thought that was momentum in the marketplace some people want to print the slides off the screens look we're grown i can't stop you from recording and doing stuff i don't issue a textbook because i don't want the stuff floating around in the form of a book if you do something like that i don't first of all don't want to hear about it and second of all please respect the student agreement and my wishes don't let this stuff show up on the internet okay all right yeah i'm sorry man i'm supposed to make it full screen go back in the slideshow mode i don't know what i was thinking thank you for reminding me okay all right so the stop hunt is the false move against the real intentions what everyone perceived in regular technical land or regular technicals as momentum in the market but is in fact a trap move to get the traders to validate the wrong way the real move in the forex business is slow slow and steady rise slow and steady drop if you've ever been in the right move with the wrong position it just seems like it goes on forever and ever and drops and you start drawing i don't know people tell me i draw a fib i hope it holds it goes through it i draw a support line it doesn't hold i draw a trend line it doesn't hold it's a slow and steady relentless move because market makers are all in it's on all their volume they're aggregated all in and that slow and steady rise or slow and steady drop then booking a profit market makers always end the day off of the low or the high 25 to 50 pips and go back into consolidation to trap the traders gerald it is what it is man okay now there's some other nuances in here that i want you all to to write down i'm going to try to draw on on go to meeting if not i'll switch to paint okay keep in mind i failed third grade art okay let's start here 5 p.m most dealers reset the high and low okay some of you seen this already some of you seen it but in the presentations but you have not seen it to the detail that i'm going to give it now so be patient with me take notes this drawing is the entire business in a nutshell so if you were texting on your phone you got the tv in the background if you pay attention to anything pay attention to the section 5 pm the high and low reset market makers make the quick push right 15 to 25 pips up 15 to 25 pips down and consolidate this initial move sets the initial hod the initial high of the day all times are 5 p.m new york time all times at eastern standard new york okay nyc time sorry about that okay this move also sets the initial low of the day you craig harris guys call this the tokyo channel it's simply the market maker spread okay they trade in between this range accumulating contracts anytime you see sideways movement in the market it's not congestion i've heard it called so many different things it's funny you don't have a chest cold when you're trading it's not congestion it's not a traffic jam anytime market makers hold the level and move sideways they are hitting the stops inducing traders to take a position and collecting contracts for their pocket that is it there is no other explanation for it other than what it is okay now between five and eight pm new york closes at five o'clock there is thing i've heard called dharma it's the dead time in the market there is nothing going on a lot of traders use this time to scalp the market with robots because it just kind of chop sideways let me illustrate this then we'll talk about questions from five to eight there's absolutely nothing going on the market all exchanges are closed from 8 to 8 30 pm there's a thing called gap time all times in eastern new york gap time is when the market maker comes on duty and he gets his instructions for the day from the powers that be of what he's supposed to do man i wrote 8 p.m twice it's 8 30 sorry 8 30 p.m 8 30 8 30. all right the market opens the asian session opens at 8 30. okay what takes place in gap time hey what's going on today i got long holders trapped high on the aggregate at 129.27 i need you to hit the stops pick up some pending orders over there and i want price down at 125.35 by the end of the day by the end of your session will do got it hey i got 600 million dollars in open float we're a little uh out of shape with our our equity i need you to hit the stops and even some of that out i need you to get it down to about 400 million in open float because that we can handle that our equity pool's getting out of whack it's not 8 pm in tokyo it's the morning over there i don't really know how it the times convert over there it's 8 pm new york city to 8 30. market maker gets his instructions he goes to work now he also is told that he has to continue to accumulate collect the contracts balance out the books whatever it is most of the time the accumulation phase goes through the asian session on a perf in a perfect world the accumulation happens all through asia breaks out london starts to move continues reverses us and goes back into consolidation but if it was that simple there's a lot of smart people out here craig almost figured it out people would figure it out so with that being said they change the session times when the moves occur to keep people confused and unable to figure it out that's all it is by switching times they throw people off nuclear reactor blew up let's move the end pairs today during the asian session duh nothing going on let's hold it let's not move until the u s okay they will hold the swing through the session until about one to two a.m okay now here's what happens at the start of the london session the first move is to pick up the pendings and destroy the breakout traders some of you guys have heard of the frankfurt power hour there's no such thing as what they do is they widen the swing early frankfurt time and pick up the pending orders validate any fib patterns and they take those guys out in an ideal world between 3 and 4 a.m 3 30 being ideal between 3 and 4 a.m they make an aggressive move in this example towards the high and extend the initial high of the day that move is comprised of three individual pushes one two three remember i told you about the number three in the presentation three is a psychological barrier for human behavior you've been saying it all your life things come in three three strikes you're out if someone dies they go one more right it comes in threes you've heard that crap all your life we're programmed as people psychologically to procrastinate and to hesitate the three pushes insures the market maker that you will in fact chase that trade the three makes you do things based on your human psychology fear and greed and things that drive the market ensures that you will take the wrong position it's dirty but that's why they do it because it works here's what happens you're standing there and you see the thing push right out it pulls back you know maybe it's going long today they hit it again bam they extend the high again you go damn look at euro it's going up today i'm missing it they hit it a third time the third time makes you realize that you're missing the trade and you want to get on and you buy at the worst possible point in this scenario you place your orders in here okay this action goes on around 2 30 2 45 3 o'clock when they get those orders hot validated and piled on they quickly pull off 20 to 25 pips and i'll go over this again just this is very important part of the business pay attention they'll pull back quickly they repeat the level but fail to break it they fail to take out the high of the day they might throw a wick above it that's acceptable the wick grabs the orders they will then pull away and go into consolidation they shift the zone away from all this work in here the london session starts at 3 30 p.m eastern time new york the asian session ends at 3 a.m steve that doesn't line up the gap time from three to three thirty is when the asian market maker discusses his moves with the london guy that's coming on duty now the london guy receives his marching orders from what asia was able to accomplish or not accomplish and what needs to happen to keep the bank liquid and making money when they pull away and go into consolidation the traders are jammed up that are traded along above here higher level long holders are jammed they will then make three levels of drop okay ask me to repeat the 3m time no problem the changeover the asian session ends at 3 a.m the london session begins at 3 30. am new york time eastern daylight time whatever the hell we're on right now okay the gap time is from three to three thirty from three to three thirty you might see a stop trigger you might see them put in the second leg or start making the second leg there's a trade that we call the brinks trade and i'll illustrate the rules for you but i want you to understand the brinks trade is when the second leg of the m or w is formed on the 345 candle okay write it down the brinks trade is when the second leg m or w could be a v bottom two but for analysis go m or w is formed on the 345 candle what the hell you talking about steve false move end of session price rises as we go into the end of the session in asia it makes a false move session beginning issues a spike to the high and will close on a hammer at 3 45 false move session beginning the reason that we call this a brinks trade is because we're so certain it will pay out you can back up the brinks truck on it there are two brinks trades a day i will illustrate them for you here all pairs any pair if you get second leg mrw issues a hammer at 3 45 lights out back up the brinks truck you will get paid the three levels of drop will form during the night of about six to eight hours look i don't know your time zone converted on timezones.com man i don't know new york time if you're in california minus three if you're in hawaii minus five figure it out paul nice to see you write it down buddy figure out over there in texas i don't know what the hell is going on over there all right need to come over there need some ribs with you buddy i miss you hope you're doing all right okay when you get three levels of drop most of the time because you have an extended move you will get the w formation on the opposite end of the chart and you will get the retracement back into the range i mean the 345 candle that paints from 330 to 345 and locks okay so now the brinks trade comes in second leg m or w when the candle paints from 330 to 345 and there's a hammer spike i'm going to talk about the rules and more stuff we'll go over just want you to see it right now now let's talk about adr if you have an adr on a pair which is average daily range average daily movement sorry about my drawing okay now a pair moves 100 pips right i just told you there's three levels of drop of rise in this example there's three levels of drop what's a hundred divided by three levels to make it easy let's say 33. i know it's 33.333 whatever it's 33. each level will contain approximately 33 pips right understand each level contains about 33 pips so you have a burst or move of 33 pips in each level before retracement or consolidation is seen they'll hold it a little bit mid session they'll consolidate they'll burst 33 pips again consolidate around the eight o'clock hour am then they will burst again 33 pips to finish out the session understand so if a pair is 150 adr like the pound or 200 take 150 divided by three you're going to get 50 50 pit bursts of price movement to give you the three levels this is universal in every single pair in every platform with every dealer and i always trade on the 15-minute chart just don't worry about charts right now just get this illustration down pay attention to this this is the whole business right here don't worry about it mac we'll get to it buddy hang in there nice to see you okay if a pair has an adr of 150 pips then you will get 50 pip price bursts then they will do the same thing they will go into consolidation they will trap short hit the stop show one more push down pull back second leg will form at 9 30 i'm sorry at nine o'clock over here the strong is getting out of control i should have did small the writing at 9 a.m new york the london session comes to a close the new york market maker comes to work and he talks to the london guy gap time nine to nine thirty at nine thirty the u.s equities market opens the forex is lined up with the u.s equities open to create the moves based on news releases and whatever else is going on the equities market if you are issued second leg w in this example a hammer spike to the bottom at 9 45 candle close 15-minute chart coke i'll cover the adr relax if a 9 9 45 a hammer is issued brings trade number two the reversal is imminent if the second leg mrw forms the hod or lod at 3 45 or 9 45 that trade will pay out today that's it that's the brinks trade those times are lined up false move session beginning equities open 9 30 the equities market opens a hammer to the low 15 minutes into the session they pull it back and close and paint a hammer they spike to the low and close the other way they trap the traders pick up the orders make the reversal back into the range consolidate okay consolidation comes in around 12 or 1 o'clock in the afternoon this happens in all pairs on a regular basis when you're hunting for the m w we have shadow boxes on the charts we'll talk about it okay boy i made a mess didn't i let's see if i can get another clean one here one two three to the high you're to get three bursts or pushes to the high it can be in three candles which is a work of art it can be in one big huge candle but when you watch that candle you will see three pumps to the high or three pumps to the low the three pumps is based on trader psychology the three levels is also based on trader psychology because you come to it and you see a beautiful downtrend all the technicals are validated they turned over they're showing a drop you go man i miss euros fall today let me take some of that bam they pull it away from you and say just kidding okay here's the brings trade for the second leg here is second leg if this leg issues a hammer a spike or if this leg is comprised from 9 15 to 9 45 of railroad tracks ah sneaky here if this leg is in two moves green going up red coming down and this will be from 3 15 to 3 45 it's a half hour move if that comes in at the session changeover think about the second or third slide in false move trap move end of the session beginning of the next session they jam you up at the changeover 9 30 the same thing applies down here 9 15 to 9 30 they issue railroad tracks [Music] that goes on to 9 45 rather okay if they issue one bar at 9 45 and it comes in as a spike to the low or hammer and this forms the lod below of the day or this behavior forms the high of the day that is a brinks trade we're going to go over it again don't worry just want you to see it and get the concept the three levels that are in the chart prey upon you to chase the wrong directional move they put the brakes on at the bottom when you sell into the worst possible point they put the brakes on jam everybody up right in here okay the times again you ready 5 p.m high low reset i'm not going to write them all and i won't spell them all the way out high low reset five to eight it's dead gap nothing going on five to eight pm dead gap eight to eight thirty asian gap okay i have a slide for this stuff so if you're not getting it now don't worry 8 to 8 30 dead gap i mean uh asian gap session starts 8 31 runs to 3 o'clock 3 to 3 30 london asia gap time instructions are passed 3 30 session starts brings trade comes in from 330 345 the move to start the session and trigger the orders the wrong way three levels of drop or rise will be seen the opposite behavior of the m or w is performed between eight and ten eight and eleven the ideal time being nine end of the london session nine to nine thirty gap nine thirty u.s session in line with the equities open 9 45 if it brings trade is issued you'll get a hammer or spike to the low these times are all right now daylight savings in line with what we're doing in the winter in the winter when we move the clock in the u.s the moves will be seen around two but the equities open does not change because it's still 9 30 here in new york no matter what the the clock is on standard or daylight savings okay the so what happens is in the winter the london session is an hour longer it's irrelevant 9 30 in line with the equities open ron i don't know what you read or thought don't worry about it bs here's the deal all the times that you've read all the stuff that you've been told at the retail level all the crap the clock on there from yahoo and auckland and new zealand comes online and your mother wakes up and throws a couple trades on and uh japan wakes up and then new zealand starts trading it's all those times are garbage they are not going to give you the timings they are not going to say we're going to jam you up at 3 31. they're not going to say that you're not going to find that information out again i need you to subscribe to something different don't rely on the stuff you've read it's crap okay these are the times take them to the grave with you they are solid rock solid not negotiable these are the timings of the business when you start to trade the method you will see how often they come in right at 3 15 and 3 30 and throw railroad tracks you're going to see how at 9 30 at the equities open they'll spike the low of course there's variations on these times but the session times are not negotiable these are when the guys come on and these when you can expect the moves so now understanding that there are is in fact a timing element is going to change the way you come to the screen and when you view the screen they're going to be some days when they make the moves early and you miss it yes but if you think about what happened monday night where they made a double top m and then they hit it again one more time at london open that london open came in between two and three o'clock there's your entry you don't have to sit there and watch the whole thing all asian session in london session i'm telling you i'm going to narrow it down for you for a three or four hour window of opportunity for london and a two to three hour opportunity for us okay does everybody have the notes on this drawing i'm gonna pull it okay look i don't know what time zones you live in you guys are from all over the world i could never figure it out every time i've given you is the time right now for new york minus wherever you're from or add from wherever you're from okay okay let me find the slides i know they're here somewhere and let's see all right i don't know what's going on let's see here we go okay so now now you understand what i'm talking about okay let's look at things a little differently now now here's your accumulation phase okay here's your w formation with the second leg coming in as a hammer at 3 45 in the morning do you see that okay i've circled it for you see it here is your railroad tracks to the high guess what time this structure was built between nine and ten the reversal comes in to end the day off of the high for them to go into consolidation and trap the traders long holding long overnight that structure comes in after the move is made overnight right around the equities open and ends the day back in consolidation okay double railroad tracks when the high is held and not broken see how the high of the day holds and they keep hitting it that high of the day holding but when you don't understand what you're doing you're thinking this right you're thinking up here you're thinking the a b move when the market comes to rest buy the cd extension the lightning bolt that's what all the retail traders think but when the high fails to be broken for 30 to 90 minutes up to two hours when the high is not broken it's safe to go the other way keeping in mind the timing element that i've just added notice down here on the w how they set the low at asia spiked right past it to pick up the stops and pendings and then just missed it the third time around the near miss on the third time validates and confirms especially at 3 30 in the morning that you got the right directional bias this is in fact the exact mirror image of what happened on the pound last monday night sunday going into monday they hit it they hit it again they hit it again but don't miss don't take it out when you see the lod hold below the day holds you look to go the opposite way they spike the low lower than here that move gets anybody that went long right in here it takes them out their stops are in here right that spike to the low hits those stops when they trigger the stops they've now lined their pocket now there's some amount of people that went long in here again after that spike to the low right this second pass ensures that they take all those people out too and also ensures that the people that were thinking this got jammed up as well this behavior at the w and at the m plays out over and over again in every pair every day variations on the theme so your job is to look for an entry near the low of the day long look for an entry short near the high of the day if you understand that you'll have success in the business okay see the false move in here they got look that's where the count saves you and your timing element saves you this was seven six seven in the morning this came in at session changeover chasing in the middle of the run not understanding the timing element get you keeps you from getting jammed up the timing element is very very very important the pattern the timing and the count those that's the order that of importance that things are okay so now you see it a little different okay variations on the theme how do they change it what do they do changing the session in which the moves come will keep you confused changing changing the severity of the stop hunts okay you get an extended 100 point stop hunt stop once by the way are typically 25 to 50 pips and i'll cover that in detail coming up if they change the severity of something because traders are stubborn and won't let go of their positions they'll make an extended stop hunt they'll do something that looks like this they'll come in pull back go up here like this hang around traders aren't letting go their positions they'll hit it again and make the same structure and then reverse okay they'll make a 75 80 100 pip stop hunt to trigger the traders to get them to go the other way it kind of works like this we're going to show you long as a retail trader i want you to take along i'm a market maker i need you to take along because i need some of my money back so i break in three bursts coming out of the box and i show you long the traders don't bite they don't commit well i need you to commit you don't believe me it's long i'll hit it again and show you along buddy you see it go up again you feel as if you missed the move so now you're like damn it is going long i get on traders commit their funds i go ha got you long i was just kidding sorry about your luck and i pull it down now the other way the example of that again is the most recent chart is monday's three hits to the high the third pass towards the high ensures that the retailers were long but when that high fails to break it is the signal for our group to take it the other way don't be fooled by the market maker's aggressive moves or the extended stop hunts to fall for his crap your job is to take a long near the locked low of the day and a short near at the locked eye of the day and i'll show you how to pick those points on the chart the other trick that he does he conceals the move behind the news announcements you know that at 8 30 when non-farm comes out that there's nothing different in europe than there was at 8 25 he uses the news as the triggers to complete his patterns that's why the news doesn't match the market behavior then you get these talking heads making up some crap that oh the eurozone didn't bite for the bad news about the euro they took the euro up today that has nothing to do with it it has to do where they are in the market cycle and how the contracts are built up if they take the market long or euro usd long on negative euro news that makes no sense but they might have formed the w yesterday and be at level two in the cycle and they need to stop hunt low rise the price so that's why that behavior is seen nothing else it has to do with their secret targets their secret price objectives not oh man i understand euro went up today the news was negative they say traders reacted positively no market makers faked everybody out with negative euro news and rose the price that's what they did they conceal the cycle and complete the pattern behind the news announcements you think they don't know that non-farm's coming out first friday every month they probably licked their chops waiting for that damn day to come out they also blame geopolitical events nuclear reactor meltdown spiked the end i know they spiked the end and got a lot of people excited and it rose immediately after the spike they did a stop hunt low trapped the trader showed momentum people thought the bottom would fall out and they trapped them four five six hundred pips in the hole and i know people traded that without a stop and got jacked up because i got emails the news and the politics of the world are secrets used to complete their private cycle and their pattern i've illustrated for you nothing more don't be a victim of the market maker anymore it's over okay all right here we go forex trading times you can actually write them down i'll go over and then i'll be quiet for a minute 5 pm high low is reset the market maker spread is said immediately at the open 5 15 5 30 right in that time starts and starts his business the asian session 8 30 to 3 a.m i left the gap time off of there from five to eight dead gap okay i'm gonna throw it in there right now because then i'll never i'll never remember to put it on there you guys keep writing uh let's see 5 p.m to 8 p.m is dead gap that's when a lot of traders try to uh scalp and all that stuff i talked about all right see it spaces out i don't know the hell i'm doing here all right there you go a little better i need my wife up here to do this for me okay save it for good measure and blow it back up okay 5 pm to 8 dead gap asian session 8 30 to 3 am gap time 3 to 3 30 london session 3 30 to 9 gap time 9 to 9 30 new york session 9 30 to 5 and i can tell you as always the uh grab my pen the new york session dies down between twelve and one o'clock in the afternoon okay thirteen hundred twelve to thirteen hundred one pm okay no i did put it in the day gap 5-8 30 i put at the bottom i don't know what the hell i'm doing i'll erase this one now just kidding all right i'll be quiet for a minute write these times now man every other time you've ever seen is pure crap these are the times that's it period okay a very good question came up it says does the 8 30 to 8 45 pm candle which is the asian session open have any significance it's a very good question it's not consistent enough for you to make a profit because the moves don't usually follow through in asia because most of the time asia is used as a continuation accumulation part of the cycle excuse me but it is in fact the session open you'll see hammers and stuff like that issued around there but most of the time that falls into setting the accumulation channel or the market maker spread so you're not going to get the follow through i know dick schmidt likes to trade during those times and he takes a small float out of the market during the asian hours okay well i don't understand some of the questions are the timings plus or minus plus or minus what allen confirm adjustment for winter in london open okay in uh we go move the clock back an hour so during the asian and london session move everything back one hour for winter which is coming up when we move the clock october-ish here's the catch today got to be careful yes craig i'll read that in a second you got to be careful about this is since it's europe london open that side of the world if they haven't moved their clock yet and you have then you have the adjusted time but they might still move around three o'clock an hour later when it's when all parts of the world are honoring daylight savings time when everyone's in line so check there's websites that talk about that stuff yes craig at the beginning of the session you're looking for the false move what happens is he'll end the session with an aggressive move and then the new guy comes on and they'll make a continuation of that move false move let's say london was up i mean asia was up right so asia paints the first leg high he pulls back and the session false move london comes on or trap move london comes on he makes the second leg of the w or m by pushing it up back towards the high he might even spike the high and take it out to pick up the contracts then he'll reverse off of that number false move session beginning run his trend six to eight hours into us and he might make the first leg at 8 30 or 8 o'clock go into consolidation spike it again at 9 30 issue a hammer and reverse when the new guy comes on false moves are made at the beginning and end of the session intraday to trap the traders and to swap and to jam them up for tomorrow the same pattern also repeats throughout the course of the week you'll have the same consolidation tight range sunday going into monday false move week beginning down a multi-session mrw which is they set the level on monday repeat the level on tuesday in line with the stop hunt okay and then they'll make the uni-directional swing weak ending a minimum of three days that's where the guys are catching the swing trades are coming in the potential for a swing trade trade is three to six hundred pips captured at the peak formation high of the week peak formation low of the week if you catch one of those points you got about a three to six hundred pips spread that you can grab for yourself and i have people doing that consistently i don't do it the reason why is this if you haven't noticed i'm a little high strung if i wanted to stay married i had to get the laptop off of my night table with my positions on so since i can't look at it without waking my wife up and pissing her off i needed to just be flat at the end of the day the end of my trading day okay so that's why i just take more contracts grab my float and i'm done and at the end of the day everything's off the board i'm square flat whatever you want to call it and that's how i trade it all right does everybody have this written down it really is an important slide cool all right let me just drive me crazy that i messed up the slide i can't help it part of my personality let me erase the bottom of this let me erase this one right here because it was right i didn't know it was on there okay cool back in business okay now this is the timing is the second most important element of the business right i told you that so you have to time map your dealer most important element of the business the pattern market maker behavior identifying that identifying his behavior at the right timing keys is solid gold so now the new indicators that we gave you if you have craig said i'm sure he'll help you sorry craig i put that on you the new indicators have to match the time of the dealer you're using if you don't have a dealer i'd like you to contact compass and let them put you into a good dealer if you have a dealer if you're offshore if you want to trade that's fine but you have to identify the formations at the proper times or else they're garbage you'll see m's and w's all day if you don't understand the behavior at the gap times and the changeovers you're not doing it right don't get confused with the time ribbon on the bottom of your broker's platform that's their server time and where their server is located some of it's gmt plus two gmt plus five new york plus six you gotta figure that out i'm pretty sure gary posted in the forum a little script that you put on your chart it pings the server and gives you times all around the world the broker server your time your trading zone all that stuff it's pretty cool if you don't have it go to the form and get it put it on your chart write down the times bounce it off your broker server ping his server and get the times and make the adjustments accordingly the way to make the adjustments is to go into the work time ribbon i should have wrote some slides on that i'm sorry i will for next class go into the work time ribbon and make the appropriate adjustments okay to match the timings you should have your shadow boxes your stop hunt zones all need to come in at the appropriate times to show you where the possibility of the reversal and the stop hunts will occur if you've if you loaded the indicators today with zen if you haven't it's okay we'll look at the charts in a couple days the charts are irrelevant right now you got to grasp this concept and change your way of thinking the chart is not important right now we will look at the chart you got to wrap your brain around the stuff i'm telling you first and that's going to be a couple of days when we look at charts i said this before i say for the last time all other time references are garbage and should not be followed other than the times i've given you that's it that's your new times okay a little more about the brink straight the two most telling candles come in from 3 30 3 45 at the london session opener 9 30 to 9 45 u.s opener sets up to bring street make a note okay i lost the chat window on you guys sorry so i can't see if you're asking me anything there it is give me a second sorry guys okay get it off of there all right here's what i'm talking about let me grab my little pen let's talk about this kind of crazy consolidation one two three to the low three bursts variations on the burst i'll illustrate a few okay some people are saying i went too fast on that previous slide i'll go back one for a second you guys should make a note sorry let me let me back up a second and leave that for a minute too all right write it down i'll take a second i'll have a sip of diet cokes okay coming right out of the box you have three vector candles the vector candles are an aggressive move it's an engineering term or uh i don't know zaim came up with this term because he was very technical and he needed something to make him feel better so we came up with this market makers extend the initial low of the day in three pushes right this is the initial low of the day correct they extend that low in one burst two bursts the third burst the third burst happens to hit our pre-measured 25 to 50 pip stop hunt zone the stop hunts are made in 25 to 50 pip increments because they know where people trade and put their stops this box is 25 to 50 pips the shadow box comes in between three and four o'clock because there's variations on the theme just so happened they issue a hammer right in the middle of the shadow box you got three swipes at the low 25 to 50 pips stop hunt zone they issue a hammer in the shadow which is the session changeover understand this candle was solid red at one time right you guys know this solid red pushing down what does that do induces traders to go short they then shift the zone away from the lower level shorts over here but look what they did they're dirty they open they turn this red to push down one more time you know what that did they open the spread around here too when they get down here they open the spread anybody that was already long in here has their stop where textbooks tell you to put your stop three to five pips below the candle i got in it steve that is an absolute suckers bet you will lose your money every time the stop loss goes below the low and above the high of the day i will discuss it exactly where it goes market maker's job is to take your money and hit the stops right i told you this already they absolutely ensure that they're going to get all the weak long holders spiked out right there anybody that's traded down to here by opening the spread at the low the two gray boxes are the shadow box is the gap time of the session the gap time going into the open the big gray boxes are the stop hunt zones okay if you took the break out here okay you remember the breakout systems you bracket break plus a close you entered here you saw very little profit on the spike and then they pulled back and they jammed you up if you didn't have the stomach to take the break here you did not have a successful trade today or if you lifted your stop on the short you would drag backwards all freaking day anytime market makers hit a level three times and don't break it the reversal is imminent they will reverse look hit don't break it hit don't break it hit don't break it there's your entry if you entered here you're okay why you're okay because your stop goes above the high of the day the high of the day will not be broken on these formations because there is some amount of money trapped above that price point if they come back and break the level it releases those traders money back into their account they're in the job of freezing the money in open float so they can take advantage of it and grab it up for themselves every chart that i show is 15 minutes unless i specify otherwise okay so here's your opportunity for the trades you had stop hunt low rise easily identified brings trade in the shadow 25 to 50 pips three pushes out of the box two pushes consolidate one more push to pick up the orders you had a straight rise if you grab the entry in here anywhere in here after the hammers issued in the shadow you had a straight rise of profit you were in profit in first 15 minutes of the trade depending on where you grabbed it maybe in the first 30 minutes of the trade you then went negative which used to scare you out of the business when that went negative on you four five six seven pips what you do you're like oh crap you're gonna get me i'm going the wrong way any trade that you ever take with this method remains valid until your perceived low of the day or high the day is breached let me say that again it's important any trades you take with my rules and my method remains in play or valid until the low of the day where you should be entering long the high of the day we should be entering short is breached what do i mean okay let me draw high of the day is formed right here you took a short right off it got jacked up you're excited okay no problem the better trade is just inside the shadow box short that's all right though they hit it again you're short right here your trade is negative your stop loss is above the range you're out of the range you're out of the grasp of the market maker think for a minute he is not going to move a 4 trillion dollar market to get robert or ted i don't know if ted's in here he's not going to move the entire market back to get outside the range to pick up your measly one lot contract no offense to your lot size understand if he moves a four trillion dollar market back up he releases 500 million in volume to pick up your order he has two hands in one hand he has 500 million dollars grabbed up right he'll look at it right he'll move to a level and analyze he pulls away and he goes into consolidation off the high right if there is 700 million dollars up there he nets 200 million he'll break the high he lets go of the 500 and grabs the seven he's a greedy bastard if you understand that he is not going to move the market unless it's financially advantageous for him to get your stop order some of your writing that sometimes you feel like he goes after you deliberately no the reason why that you feel like that is because you've read all the same books that all the other guys 90 of traders have read and you put your stop where 90 of the traders put it so what's going on here is you get in and you go oh my stop's right here this looks good it's a good trade today market maker comes back spikes the high and takes your stop out and you're like damn it i swear to god he's personal against me then it drops like you thought anyway right he's going after me personally no you've all had in the access to the information that everyone else has had it's all the same general knowledge it's all so when everyone gets stopped out at that price point it's because the technicals that you saw that he deliberately showed you on the chart validated what you read in the book so you took that trade based on that garbage and he laughed to himself as he hit your stops all 100 million of you understand that's why when you took those trades and they didn't validate and you felt like he was personally attacking your stop loss he was not he is not going to move a market to a price point to get mac or to get michael he's not going to do that but if it's financially advantageous for him he'll make the second pass or the third pass this costs money to move the market i heard that it takes ten thousand lots to move the market a pip i i didn't hear it i was taught that think about that a minute if you have to move the market all the way back up here it costs money if it costs money he's not going to do it unless he can make some in the process all right i want you to notice some crazy stuff built into this structure or towards the high okay i want you to see a 1 2 3 back to the high in there do you see that 1 2 3 back to the high why to induce you to chase it long i want you to notice they rise here and each subsequent pass fails to take out the previous high because there's trap volume here there's trap volume here there's trap volume here their stop orders all aggregated in here and in here his job is to hit the stops don't release the volume hit the stops don't release the volume sorry about your luck just kidding and drop price 100 pips off the high to end the day back in consolidation boom right here end the day back in consolidation and just if you weren't sure he has to end the day on a hammer to trap anybody that was chasing it short last minute snatch that away from them and end the day trapped carry you into the next day do you see what i'm drawing what i've been illustrating for you it's in there releasing the volume means that if there's a certain amount of traders that they already trapped by going back to that level it allows people to click their mouse and get out think about yourself in your own trading how many times have you been jammed up in something said if it goes back to plus one i'm getting out if it goes back to minus five i'm getting out when you come back near the second pass you will be minus some number plus the spread minus seven minus five plus two plus one i don't know where it depends on where you got in so what he's doing if he goes back and breaks that level he's allowing those traders that were jammed up a chance to close their account out with a small scratch or small excuse me lost or gained in the trade his job is to not allow that behavior so he fails to take out the high okay all right i hope you guys are good let's see where we're at next slide okay it's 8 30 we'll do this slide and we'll break for 30 minutes is a good dinner time we'll try 30 minutes tonight if it's too long we'll shorten if it's too short we'll go an extra five whatever uh i'm gonna grab a little something to eat and i'm gonna get some more diet coke if i'm not jacked up enough for you guys i'm sorry some of you made comments i feel fine man so if you think i'm too calm tonight i'll be more excited tomorrow okay look very important to understand market makers have limitations they are limited what they can physically do to the market if you think about this for a minute they're controlling the value of imports and exports you buy toyotas and you switch your dollars to yens they're controlling that they cannot just wake up one day and drop in a million pips and devalue the dollar or devalue the yen they cannot do that they have restrictions placed on them by the imf in the world bank to try to keep this world afloat that is why the average daily range tool told you get back to a mac is a useful tool and can only move most pairs about 200 pips a day to 600 pips a week and if you notice something on some of these charts they will open the week at a price point go berserk and come all the way back and close the week around the same number they do not contrary to popular belief have unlimited equity they got to get their money back that's where the retrace against the trend comes in they lend it out they lend it out they lend it out they gotta get it back they are limited by weekly net change allowances they have a couple of times during the month where they can run rampant but they got to get it back under control think use your head if they could do that they would destroy the world economy and things are bad enough without doing this to people they have some limitations understanding the limitations gives you an edge understanding that they don't have unlimited movable pips gives you an edge okay all right let's take it's 8 31 let's go to 9 o'clock and uh we'll pick it back up from there hope you guys are doing okay we're going to go to about 10 30 tonight i think and then uh we'll be good all right let me find my little clock somewhere i'll pop it up there go ahead and grab a break i'm going to say anything now that it's break time i won't do that to anybody all right let's see clear seven minutes ain't gonna work i saw a couple questions craig had two good questions let me uh let me cover those real quick because they are uh time appropriate they're in the right segment uh steve you said there's three important things the patterns the timings and what the answer is the levels okay most important element of the system the pattern identifying the patterns from the market maker behavior the timings of those patterns and counting the levels the levels are not going to come to you overnight they're difficult there's people that have been around me for a year still struggling with that it is not an absolute necessity to be successful with this method but understanding the levels will let you know when the reversal is coming when to exit your swing trades and so forth okay weekly net change allowance was another question that came up let's say they open at a price point they are given just to make it easy a thousand pip movement weekly net change so from the open price point in the three to four day swing range they cannot exceed one thousand pips on the close on friday so if they rise price a thousand pips or eleven hundred pips they have to come back below the thousand pip marker that's given to them before they close on friday to keep currencies from being devalued or whatever their seasonal targets quarterly there's daily and weekly ranges that they're given understand they're making money but at the same time they have to be cognizant or aware of what's going on in the world economy and the world markets they cannot destroy things so they're given a price point on monday or sunday night at open and they have a weekly net change of 500 they run at 6 700 pips you can expect the reversal back in to underneath the 500 limit by friday close hence false trap move on friday to end the week okay and then the cycle starts over all right those are some good questions i think some of the other stuff wasn't pertinent to right now let me look a minute nice to have you adam glad to hear you're doing so well shaheed from uh toronto i think you left you'll be back all right ronald nice to see all you guys all right let's get going again everybody settled in from their break got something to eat okay listen the reason for the break is i want you to think i don't want to just sit here and i want to throw a fire hose at you with tons and tons of information then you sit here just mesmerized by what the hell did this guy just say that's not the point i talk to you about some stuff some concepts think about it on your dinner break resonate on a little bit tonight i'm gonna give you some homework assignments to think about more stuff we're going to go about four hours of time 10 30 10 i don't know we'll figure it out wherever i am on the slides the point of that is is i don't want to just sit here and just keep stuffing stuff down your throat i want you to think about it overnight and when i've taught live i noticed that people have about had enough in about four hours i'm not so full of myself that i don't realize you get tired and that i think i just have so much great stuff to say i understand that so four hours is the marker to where you've had enough sitting in the chair seems to be when i'm teaching live people start slouching their chairs putting their heads on their desk gloria fell asleep on me one time four hours in so i realized four hours is a good marker take a break about halfway through get up eat something go smoke one esubio did you quit by the way i've been trying to quit diet coke i almost made it and i fell back into it i'll get it man anyway the point is is that i want you to get this me rushing through it to get all the information to you is not the point the point is it takes it's a process it takes some time i asked if you quit smoking isubio i know you were trying i've been trying to quit diet coke anyway that's the point of the break okay appreciate it i want you guys to really conceptualize and understand this it's not going to be part of you until you conceptualize it becomes your own and that's the point of going slow and making sure everybody gets it okay all right back to the slides market maker moves all right we understand all the things we talked about the pattern the behaviors what they do so what can they do what do they really what can they really do to you they are limited by weekly net change and allowances they're also limited to they can hit your stops up or down they reverse off of the high or low and create an intraday trend change what happens which happens a lot they can do a straight away straight rise or drop which is the finishing move on the margin levels of the other traders i'll illustrate that for you don't worry timings and test your patience right what do i mean by that you get in something you lift your stop you're down a negative float they go into consolidation change shifts the asian guy comes on you're still sitting there what happens after a day day and a half of doing that your nerves are shot your patients have been tested to the to the max you're drinking red bull kicking the dog cursing under your breath and you finally click out of the trade because you can't take it anymore understanding that all they have is timings and stop hunts and trap moves kind of moves removes the curtains from oz you understand what's going on that's all they got they're limited the problem is is that the other technicals set you up for failure and keep you chasing the wrong things like i said earlier it ends today okay this is one of my favorite charts this is two days back to back oh look at it's in the pound it's in march 15th stop on high spike to the high drop w formation to end the day back in consolidation the next night stop hunt low there's your three pushes your vector right come right out rise price right back here's your weekly net change craig two days no change the price closed exactly where it opened it's kind of funny this is they got to be kidding right they come out hit the stops high three pushes drop w formation back into consolidation the next night they exceed the trap level here by making a stop hunt to trigger the traders induce the pendings and then snatch the market away and run it back right back to the same price point they were yesterday that's why the pattern is so important you really can't count the levels in there it's a little harder but the patterns and the timings are right there exactly if i stated for you and illustrated and drew out i mean one could argue that this is their us reversal and this comes in around nine o'clock in the morning whatever and then they go back in the consolidation but this is the epitome of what i've drawn for you on the charts it it's there what i want you to do as a trader is stop getting caught up in the moment getting caught up in the moment forces you to make irrational decisions you need to have a plan of attack before you come to trading in line with the market makers trend don't let the aggressive moves fool you don't let their big spike candles to the high lure you into thinking it's momentum there's gonna be a mid-week reversal which will coincide with the intraday reversal and levels okay what i meant was okay let's draw this little pattern over here okay consolidation sunday monday right sunday false move let's just call it sunday they break to the downside they hit a level they pull back this might be monday okay they have a trap vault amount of volume there they go into consolidation tuesday they come back and repeat the level this is a multi-session w formation but what happens here is they come back this might have been uh asian session they come back and repeat the level at the london open as a stop hunt they disguise the second leg as a stop hunt to make the traders continue short they take out anybody that went long in here and then they reverse the market then you will have your three day uni-directional swing to the end of the week or in going into thursday and then they'll make the pullback to end the week and then the consolidation off of the high this number in the three-day range might exceed the net change allowed for the week so they have to pull back to end the week below their net change allowance the threshold might be right here at 500 they exceeded it they know what they got to do they got their marching orders they got to come back below and close okay once you can identify consistently and by the way the one hour chart helps with this the midweek reversals and the multi-session m's and w's you can convert your spot trades to swing you know you have two and a half to three days of upcycle or down cycle with the maximum potential move of two to six hundred pips if you catch the trade going into friday understand that you're going to get a reversal pattern coming out of one of the opens london or new york you're going to get a stop hunt if the stop hunt is counter to your directional bias you take all right let me explain that again if you get into day three and you're a buyer at the beginning of the cycle when you get to day three if london open they come out and hit the stops high you take you get out because the reversal is coming you react to their action market makers hit the stops low you buy against the retail trading herd market makers hit the stops high you sell against the retail trading herd the m w the multi-session m w will be very very aggressive think about what they're doing they're taking profit cleaning the board and putting money in their pocket in order to do that those levels have to be very aggressive aggressive okay now let's look at some typical weak stuff now that you understand a little bit more about the pattern okay aggressive move weak beginning trap the traders jam them up stop hunt low rise back into consolidation stop hunt low rise 100 pips and extended high of the week formation extended why the blue box is 103 pips this is about 150 pip move what happened you didn't believe me i wanted long i'll show you along but if you notice where they cut the level this is in fact peak formation high for the week if you have a peak formation high for the week we expect three days of drop okay so what's expected i'm going to give you some more slides on this but think for a minute day one peak formation high high of the week got it the next night hit the stops high drop or straight drop the next night hit the stops high drop or straight drop three days and the cycle look for the w reverse that's the three day swing trade cycle peak formation high high or low of the week is identified you expect two more stop hunts in line with the peak formation if he throws at you something different exit the trade and look for a new signal okay so here peak formation high of the week right you got the midweek false move they jam people up long people think this is the famous continuation when the high holds notice the blue tracer in here i'll talk about that very important when the high holds for 30 to 90 minutes and they pull back you have your peak formation the project the projection is m a w a a1 a2 peak formation v top i mean v top turned over v top reversal okay three levels are seen one consolidation to consolidation and three was underway okay the two cycles and i have slideshows i'll talk about it again is wvvm it looks like a w one two three reverse one two three reverse that's the market maker cycle right there okay m a a w v uh wvvm why the v's sometimes you'll get w's every single time but here's the thing if you have your market maker by as high of the week low of the week established and you know the direction you can trade off of the first stop on out of the box v bottoms you don't have to wait for the second leg because you know the cycle the best trades are multi-session m's and w's multi-session or uh intra intercession m's and w's those are the best patterns beyond the shadow of a doubt it allows you to grab close to the low of the day your stops will be tighter it avoids you sitting through the repeat the level stress of them coming back but if you understand the cycle and caught the directional bias then this spot tray can be converted to a swing why i caught the peak formation high the next night hit the stops high i'm still good if they break out of the top of the box i'm still good in here why am i still good because they hit the stops high issued railroad tracks at the london open in line with the peak that lets me know it's a false move drop now they've created some amount of margin trouble they've created a ton of congestion right chest colds in there hitting the stops in both directions picking up the contracts no congestion take some nyquil some tylenol pm or something you understand that you got one more day of drop on the cycle your bias is to the downside so you're looking for excuses or reasons stop on high drop okay i don't want you to counter trend trade at a1 and v1 i don't want you to trade back towards the peak formation high because it's a suckers trade i have slides don't worry i'm just illustrating it now we'll get to it okay here it is again consolidation peak formation expect hit the stops high same slide sorry now the reversal comes in end of the week i expect this i had three levels of drop the pins on the candles will become the direction that they're trying to trap very important write that down the pins on the candle at level three will become or start to paint in the direction that they are trying to now trap level three aggressive moves will be seen notice how the first two days of the cycle it drops down smooth and then when you get to level three it doesn't seem to go anywhere why you're reeling it in reeling it in reeling it in grabbing up the traders okay again hit the low spike it see how this went slightly past it they spiked it with a hammer right outside the box the spike of the low absorbs the pending and triggers the stops of anybody that got it right they open the spread at the low of the day you'll see them work this the spread gives them an edge against the retail traders it's their weapon if you're a buyer they open the sell side drop the sell side below the price point the sell side picks up those orders for short holders but the buy traders are held the level is held it doesn't move it sits there and the same is done in the opposite direction at the top of the price range the sell orders are held and the spread is opened up to pick up any buyer or buy orders on the other side they work to spread against you they work to spread against you to pick up the orders okay some typical stuff that we all know when traders lose money they usually take a day off to re-evaluate their decisions their life their family why the hell they got in this crazy business i've read every freaking book how come i can't make any money market makers know that this is happening they know who they've called out they know who's in trouble they know how much money they made they go into a chop which i showed you on that previous chart it looks like it's level three we call it level three behavior that chop gives you a chance to come back re-participate in the market the levels don't change they hold it they're chopping chopping chopping what happens you go ride around in your car in the middle of the night pissed off go to lunch pet your dog because you've been kicking them all week so they got to hold the market and chop it around to get traders back into the fray the cycle continues the behavior starts over and they suck you in again okay something very important the patterns are the same no matter what time frame you're looking at a multi-session mrw will look a little different on a one-hour chart or a four-hour chart the four-hour chart might be railroad tracks because it's eight hours two sessions right four hours a candle in four hours out on a railroad track you might get on a one-hour chart you might get one rural track on one side and a spike on the other side of the leg but understand that the w or the m when it's formed it will be very aggressive but once the work is done you will get a straight aggressive move away from it that's where you've been blinked your eyes have been down big in a trade our group goes into profit immediately and stays in profit it's absolutely amazing when you catch it right you'll get you're gonna see you grab second leg m or w right after they issue the second or third spike going to go right into profit some people are asking about the charts 15 minutes unless i say otherwise the 1 hour and 15 minute what we're going to talk about in here okay look one two three bars to the low aggressive shifter consolidation zone okay breakout traders had a bad day the shorts got rewarded the longs got punished shorts got rewarded okay aggressive three candle move pins to the bottom notice how the pin spiked to the bottom and pull it away they're snatching the market away from the lower level short holders and jamming them they then quickly pull away and come right back in here in the u.s session they throw two pins to the downside at the appropriate times session changeover brings trade that move fails to take out the london low this move takes hours to develop you now have your weekly reversal it came in late monday that's okay it happens they're not gonna make it wednesday at three o'clock in the morning perfect for you every time you gotta identify what's going on here you have the first hit to the low late monday uh london session the second hit to the low us session 9 30 change over session change second spike end the session with a false move down first spike start the session with a false move down hammer issued at 9 30 equities open you your trade is entered right there you can't pick a better entry than that stop loss is tight right below the low of the day which happens to be the low of the week you've identified this behavior you can keep your trade hold for three level rise one two three reverse is eminent at the mayonnaise pin to the mayonnaise is a cell you take the reversal here and the day back in consolidation okay i don't want you to take that reversal as a newbie that is mostly a jam move because they've snatched the market away so quickly on the second leg to put all the traders that are short in deep trouble that aggressive move does not always give you a nice retracement to counter okay that's the dnc do not counter v1 and a1 i got slides relax mayonnaise is a 200 ema okay we have our directional bias for the week we have a mini w inside an aggressive w after the false move down three vector candles to the low fake out the traders validate the short orders show a trend continuation what happened in here was you sell the rises in a downtrend so what happened is the traders that were long ended up with a scratch plus one when they came back the traders that thought they were right and had their stops all aggregated in here are now stopped out on the second leg any pending orders that were trying to catch the break below the low were validated or turned hot on a widening of the spread at the lowest point on the chart second leg intraday uh us session entry using rabbit this hammer when that hammer pulls back that was solid red at one time right that went down there all the way down to the low of the day came right near the low and sat there when you start watching this it's crazy the candle will go solid red all the way down there and sit there and you're like the hell's wrong with that camera did it die did my computer feed stop it's just sitting there at the bottom the candle sits at the low of the day some dealers will you can see that some dealers you cannot but if you put the bid and ask line on your live chart you will watch those two lines separate the separation of those two lines or the widening of the spread lets you know i got these bastards today because they're punishing the retail traders with pending orders that are sitting below those price points and stop orders that are sitting below those price points the widening the spread is part of the confirmation process if they widen the spread a few pips near the low on the second or third pass to the low you got it today you own it validation comes in when they complete the candle at the end of the 15-minute cycle and issue a hammer at 9 45. that is the confirmed locked reversal confirmed by their behaviors at the appropriate timings you got it you enter on the open of the next candle stop loss goes below the low candle or the low of the day you look at the big board i'll talk about stops and we'll look at the big board and stuff they immediately shift the market or shift the zone away from the lower level short sellers and in one candle take back all of this damage see this square right here this candle seems to take all that back in about 15 to 30 minutes you know when they shift the zone and snatch the market away from those guys game on you got it today that is the confirmation you need to know you're in the right directional move they'll shift the zone in one big candle 15 to 30 pips they'll shift the zone and two candles 15 20 pips apiece but the shifting of the zone comes in a 25 to 50 pip move to get the hell out of there they want to get the hell out of there to put all the retail traders into a panic and it works you lift your stop you get nervous you're like oh crap oh crap what did i do what did i do the shifting of the zone creates the fear and greed that you're afraid of in trading so when they shift the zone and jam you you go into profit trading this method you know you got it that is further confirmation that you have caught the right directional bias off of the low of the day think about what you got okay consolidation 41 pip channel blue box okay i'll circle what i'm talking about there's the width of the box initial high to initial low is 41 pips market makers come out they show one two three to the low you guys weren't falling for it they came back one two three to the low one more time vector a big anomaly on the chart a spike retail trader perceived momentum the vector is retail trade and perceived momentum you take that break down they immediately put the brakes on and issued two pins to the low it's kind of funny the pins turn to the downside i don't see any pins on the other candles coming down but now the pins are on the downside they pick up the orders and snatch it away pick up the orders and snatch it away now they got you if you're a retailer they quickly pull back that pullback towards the 50 validates the what the hell is a rally based drop b i don't drop base rally or some crap that they teach in these other schools i can't remember how it goes but anyway but it's a two-pronged approach it also triggers the stops on the second pass down of anybody that was long and got it right and it also lets those traders that end up in a plus one or a scratch makes you scratch out with plus one or plus three or minus five there's a lot going on in that aggressive w formation understand same thing in the m again they flip the pins to the downside to trap the traders at the lower levels because after all the 50 and the 200 are wide open so you got anticipated continuation down but we know now that if the low that was formed during london holds and they make two more passes out at forming another w and issue a hammer at 9 45 it's game over you are a buyer against the retail trend in line with the market maker you own these bastards today further confirmation is seen on the shift of the zone off of the low to further trap the lower level short sellers and to take out the entire six eight hours of structure work all in here that they've done that one candle destroys the entire structure that was built against the retail traders trapping them all the market is then into consolidation to create false sense of security for the downtown downtrend continuation it is again shifted away to trigger the stops bounce off the 200 pins to the mayonnaise and ends the day back in consolidation their business is done for the day they did their damage okay you guys good understand now i have my bias i know what to expect the next night i expect stop hunt low rise the next night i expect stop hunt low rise they messed with you on the timings on this particular chart because they did the stop on low and rise by the time you come to your terminal at london open it happen in asia you missed it not a big deal but right at the end of the box they threw railroad tracks to the low and they even threw a hammer there's a w in there or there's a v bottom you expect this and they gave it to you see it okay they come out of the box they go low you are a buyer against the retail trader mentality long because you have your w formation that's your anchor point for the week w v v m sorry about your luck do not counter this this is a counter here that worked do not counter here i'm sorry at v1 do not counter at v1 it doesn't give you the trade see the setup it does not offer you the retracement to counter it doesn't pay out now notice how the pins flip to the top side notice how they flip to the downside over here notice how the aggressive moves end in pins to the top side railroad tracks at the us session this is level three behavior chop one two three days of rise is seen the skies in different sessions moved over a little bit to mess with your timing market makers give it out give it out give it out need some back sell to the buyer sell to the buyer sell to the buyers i need some of my money back man correct the market okay hope you guys are seeing this stuff okay remember i mentioned the thing market makers will not move in one direction more than three days in a row without some type of collection of money i know you say steve the euro's been rising since my birthday whatever i understand that it didn't make a straight rise candles aren't stacked on top of each other straight up to heaven they have to make pullbacks now remember the psychology element that's built in the psychology element warrants that you will get on the trend at the worst possible time because of the three pushes inside the chart they show you something they get the whole world seeing it technically and then they act against it and mess with you notice the breakdown of this chart okay this is an entire week here's my sunday here's my friday sunday monday tracers right okay let's look at it again now now with a different eye consolidation false move weak beginning w formation multi-session i got a u.s session leg one i got an early asian session leg two right intraday spread out over the day tracer right this is the day changeover this is the 5 pm reset settlement these lines okay friday thursday wednesday tuesday coming out of monday's consolidation midweek reversal aggressive move towards the low validates the crossover down the w formation late us [Music] early asia you missed it but guess what they offer you a pullback in the us there's your peak formation low for the week three levels of rise end on an aggressive railroad track pull back consolidate into thursday repeat the level but murder the stops and pick up the pendings with a monster pin above the first leg the light blue tracer the light blue tracer is yesterday's high and yesterday's low when market makers throw a hammer above the blue tracer that's for all the joe ross followers that take the break out of yesterday's high they snatch those guys and reel them right back in no offense to joe he's a great guy that is our signal notice it's in the red shadow box to enter three days three levels they hit it they pull back they go into consolidation they issue a hammer above yesterday's hod or above which happens to be the high of the week notice how the two come in together the high of the day on thursday coincides with the high of the week they repeat the level on friday trap the traders coming off of the u.s session into consolidation in here then what do they do the pattern continues going into the weekend bam they hold it and they they spike down going into the weekend someone said the sound is bad is it tell me some y's up there if everyone can hear me no okay it's not bad or no it is yes no all right fine okay okay thanks got it all right so now notice the difference in this w how it's tight there's only a few hours in between this one is a whole day in between this is london open re-hit again almost in the us session with a monster spike to the high the monster spike to the high lets you know that they grabbed what they needed to grab when you see that spike close the damage is done to the retail traders that spike is the aftermath or the wake of what they have done what do they use to create the spike could be news could be could be your mother stubbed a toe it doesn't matter the behaviors are the same they use the news to create that spike or create some type of anomaly on the chart to get you to fall for it listen the retail side of the business works where these guys wouldn't be so wealthy okay okay so now you got trend is down level three correction you see this formation going into the us session they hold the level overnight but you know the high was formed they repeat the high you're you're a seller against everybody else you know that in level three the trend cannot go down forever and does not go down forever you identify late in the us session railroad tracks and then consolidation to end the day you are a buyer against the retail traders down move and here's how it played out this is we call a half a batman they hit the stops one more time if you weren't already in and you happen to be in front of your terminal you're a buyer right there i want to say two three weeks ago i think rick's in here uh there was a monster w formation in the asian crosses i missed it i was eating a cheesecake factory that piece of cheesecake cost me thousands it was double railroad tracks in the asian session on gj ej and i think rick just happened to be in front of the terminal and caught that 80 lots long i don't know if that was okay to say rick but sorry and i think he booked a monster game that day so my cheesecake cost me i only want to say the number out loud it makes me sick it was such an obvious trade that i promise you when you go back you'll see it i want you to go back write it down go back to gj and ej i want to say about two or three weeks ago i think i was actually at the columbia i'm at the beach so not now i'm staying at the beach but i think i missed that i was like eating i don't know yellow rice and chicken or something my gosh anyway the moves are in there go back and try to identify that okay i've been talking about their structures let's talk about the entire structure let me explain to you one more time if you're sick of hearing it i'm sorry but this is i mentioned to you already is the whole business you got to get this you got to understand okay every single day during initial market hours asian session they're going to set the high and low it's the initial high and low they trade within that range and allow people to build positions but not allowing anyone to take much of a profit this is why you don't trade dave asia session they then spread the swing what time one and two am they widen the swing that widening of the swing comes in before the london open because the asian market maker wants to validate the pending orders for the breakout traders okay at the start of the european session anybody 3 30 they will severely correct a rise against their real intentions stop hunt false move against what they're really going to do for the day the drop will rise will trigger all the stops of the weaker traders the ones that have taken the school the regular technicals read the books the stop losses that go five to seven pips below your entry candle or above your entry candle the weaker retail traders that have fallen into some proverb that says if you're gonna lose don't lose a lot and make a really tight stop it's they then quickly go into consolidation they don't have a chest cold the market doesn't have the flu they are accumulating contracts at another level they will hit the stops one more time as i showed you on the previous chart they threw the spike above to trigger the stops and pick up the pendings on the other leg the second leg this action leaves the lower level or higher level traders stunned and stopped out and then in one bar they will shift the zone and trap all the retail traders at the lower or higher levels and that's it all right i'm gonna back up someone said they wanted to write the chart actually a lot of people said i'm sorry let me leave this up i'll shut up for a minute and then we'll go back to the other one okay i just realized that what i should do is why don't you mark down the stuff you want and then go back and listen to the recording and get it is that wouldn't that be better than holding me up because everyone's at a different pace people are writing i think that is better right i always remember it's about halfway through the first day yep make a note that hey i want to see the section that was at 9 50 p.m and then go back and move up to that timeline okay yeah i think everyone's agreeing that i can just get through the slides and flow the flow the recordings then you go back okay sorry all right this is exactly what i'm talking about you have the asian range right r equals range 51.4 pips the ideal asian range is 50 pips or less the 50 pips or less allows you to see the stop hunts clearly the stop hunts come in 25 to 50 pips below the box and above the box ah now it makes sense what this is here's the 25 marker here's the 50 marker the shadow box highlights the brinks trade setups is it always going to fire in the brinks trade box no but you have to have a deeper understanding of what's going on okay so let's walk through this chart you have consolidation right you have a pin to the low right here maybe they picked up some pendings i don't know what happened here but here's what goes on towards the end of the session before the start they shifted the zone away from higher level holders in here but they stayed in consolidation you see that your job is to be smarter than a piece of blue ribbon that paints on a chart your job is to reevaluate or reconsolidate the zone and realize they have not made a very aggressive move yet when you reevaluate the consolidation you then have your three vector pushes with a nice hammer to the low notice how they went past the blue tracer into the stop hunt zone even spiked through it but they issued a hammer right here just outside that was bad just outside the shadow box session beginning the timings are off by a few bars big deal you know better they quickly pull back go into consolidation to collect positions validate the short orders okay now notice something crazy this candle comes all the way back to the low of the day just enough to pick up anybody that was in here anybody that got it in here and that was right because of the size of this candle this would be a pass entry for our group because they shifted the zone if you didn't get your entry in here you when they shift the zone it's too late i don't want you chasing it why think about the size of your stop-loss the appropriate stop-loss goes below the low of the day but steve it runs perfect of course it did you could see it in hindsight of course it did but how do you know they're not going to come back for the for another pass you don't know that the stop-loss goes where it goes i can't help it i'm going to talk about it jose doesn't know me that's where i got in jose i got him right there buddy i know people are saying thoughts on i'm kidding man i wish i was that good all right look because of the size of the shift of the zone that's a note that's a pass but if you saw the hammer issue just outside the shadow box in the stop hunt region you could have taken the trade anywhere in here stop loss goes below the low that is a granny entry okay now the low should hold for 30 to 90 minutes and safe to enter if you have all the other elements in line they issue a hammer just outside the shadow in the stop on zone it happens to be laying on the four hour timeline which is the blueberry we'll talk about it they had their three vector candles on a reconsolidation of the zone right you extended the blue box you know better man that's consolidation there's three vectors to the low vector candles to the low they ended on a hammer pull back this is an outside bar i don't care if it has a pin i don't care where it closes this bar is an outside man i'm so close to the edge i keep changing the slide i'm very sorry this this slide right here this is an outside bar how could that be an outside bar because it forms the low of the day and the consolidation is off of it it's inside the consolidation is inside the low of the day formation that's an outside bar okay when market makers trade inside this spike to the low bar that's a clue for you that the low is forming because the spike here forms the low of the day the consolidation validates that you are at the lod the fact that they spiked past the light blue tracer validates you're at the lod the fact that they spike the four hour ema validates you at the low of the day the fact that you're in the shadow box and they spiked past the shadow box and came back validate you were at the lod those are the clues to the puzzle you got to put together we like to wait for the second pass but you got a lot of opportunity in here this candle comes back to bust your chops a little bit may or may not get you not a big deal don't worry about it there'll be another setup just like it tomorrow promise and that candle won't be so big okay see it all right it's ten let's take a five minute break we're gonna go into the count and we will end here tonight after this lesson the count discusses the levels all right so let me get my little seven minute stopwatch up someone asked where i got that from it's uh like stopwatch.com or something it's www.online okay everybody back good all right hear me all that stuff all right some of you asking about the stuff on the charts robert you're not the only one don't worry about that stuff right now i'm going to break it all down for you what i want to do is i want to strip away the concepts that you have about the market right now and i want you to look at the big picture of what these guys are up to don't worry about a box of shadow i'm going to cover all that it's on there i know it's in my charts because that's the templates i took the pictures off of just open your mind to what's going on okay and i'm going to tell you what the box is what the arrows are with the average i'm going to tell you all that stuff just right now i want you to grasp the concept okay all right so let's get going i didn't see any questions other than that that i need to address right now we'll take some questions at the end when i give you your homework okay the count the third most important element of the system is the levels or the count to know where you are in the cycle right you need to look walk up to a chart and go okay midweek reversal w's anchored in second session w v v m wednesday thursday friday reverse that's why you don't need to spend days and hours doing technical analysis when you become proficient and can identify the midweek reversal or the peak formation anchor points of the cycle you'll be quickly able to identify the technicals on the market maker side of the market not on the where the average crossed over what part of the cycle am i at is that support and resistance from october 1905 will that hold understand i said this in my presentation on the sales side of the business that you don't got to spend hours and hours trying to analyze the technicals you analyze a chart over three to five days i identify the anchor point start of the cycle and you know what to expect on every pair any given time because the market makers have their own cycle and their own way of handling things you now know how to handle that well you're getting there or i'm getting you there we'll figure it out okay all right the cycle as i said earlier is based on traitor psychology really it's based on human psychology fear greed and inexperience are used to prey upon the traitors the newbies that don't know anything fear that you're missing the move greed that you're gonna maximize your gain those are the emotions that everybody feels in this business as i drew the pattern for you earlier there are intraday counts and counts over several days the weekly cycle they are all there to trap the traitors and grab your hard-earned equity i've seen people write this a couple of times to me and chat oh elliott wave blah blah no do not associate this with elliott wave or any other indicator market makers form zones or levels to trap the traders book their profits and hit the stops sometimes it's like a joke you can see it like stairs it's so easy sometimes it's not so easy understand that at level one and level three the aggressive moves are seen why they just made a huge run they snagged the traders some amount of money is stuck they want to hit the stops in both directions collect up the contracts and then trap another fresh batch of traders the other way the m w's form at these levels okay there are three levels of correction or rise over three days could it be two and a half days yes there are also three levels intraday the three bursts if you know where you are in the cycle easy to pick your directional bias and take your trades the first level of the correction in this example is driven by the market maker you will see the fast moves on light volume you can't tell volume by the way you just know by the move the guys that trade the breakouts with craig and understand this stuff think for a minute even if you haven't traded with craig just think for a minute open your mind for a second ever seen a candle spike really fast in a textbook that is written as momentum but what's really going on is the market makers flashing the pair with as little money as humanly possible to get it to move or spike and other times you've seen the breakout slow and steady a smooth run the slow and steady move is the real directional move by the market maker so the first level correction is created with a flash into a pair he might do it on a cross he might do it with the cross whatever to save money i'll talk about that the second level of the correction is market driven and absent of the market make an absence of the market maker why he wants to see where the retail traders will push it so what happens is this he creates a stop hunt high spike pulls back hits the second leg again starts the direction and steps aside he wants to see what the traders will do going into level two will they buy will they sell how will they how will they set the straddle how will the contracts or the money be set up the third level of the correction when you get to level three is again picked up by the market maker he puts the brakes on so that's far enough today he'll trigger the stops again make the push validate the abcd lightning bolt and create more panic in the market so understand level one and level three since they are driven by the market maker will be more aggressive those are the moves that have been scaring you out of good trades because you didn't understand that he was doing it to you during the levels market makers will buy from the traders to create their positions with the heaviest volume being seen at level three at level three they're all in they gotta reverse and collect their equity back understand when the signal appears simply buy or sell third level rises and third level corrections against the retail traders lights out if you can count to three profit will be realizing these trades it's it's a joke over simplification okay is there sound issues no okay cool okay now this is going to piss you off it should in addition to each of the three levels there is a corresponding level of consolidation level one level one consolidation level two level two consolidation most of the time when this is going on the stops are triggered in both directions before the next level it started the zones create 20 to 30 pip swings be visible on the chart market makers are trying to hit the stops both ways to make easy work of the next level they're trying to take the buying or selling pressure off from the market so they slap it both ways that is where if you guys ever seen those little they call them pennants i hate that terminology because i don't like any of that stuff it's garbage but look you have the move right they go down they consolidate then what happens is it creates like a little wedge right in there right then they break for the next level then they go like this forms another wedge right then they do it again now you're going to notice the pins start to the downside then they'll reverse one two three sorry about your luck okay let me clean the jar back up okay so now write this down and think for a minute market maker jumps in 3 30 4 o'clock in the morning 3 30 3 45 ideal right he jumps in he creates the move starts to panic he shows you breakout vector candles the wrong way he's showing you something get the retail guys to bite retail guys bite the wrong way he's got him he pulls back quickly off of the high he goes at it again one more time to validate hit the stops he then shifts away from that 25 to 50 pips in the first level and goes into consolidation he then swings both ways he may come back towards the high of the day that move coming out of level one consolidation back towards the higher back towards the low scares you out of a good trade scaring you out of a good trade is his job to make sure you don't actually make any money when you're right each zone of consolidation creates a little tiny wedge if you will on the chart the pins are issued in both directions and then the next level drop arises seen he stands aside during that cycle cycle two level two uh level two consum forming sees how the orders are set and then he says okay that's enough and he reels it back in he then switches the pins against the move so if the cycle is down the pins will start going to the downside at level three you'll see the spike candles more aggressive moves will be seen towards the downside if price is rising in level three as shown the spikes will turn to the top side why he's trying to trap the traitors before he reverses okay think all right let's have a look get my little pen this is classified by the way i can show it to you but then i have to kill you at the end of the seminar all right look three hits to the high didn't just this exactly just happened this slides like two years old man remember i told you we pulled the curtain out from behind oz it's the same every single day day in and day out three hits to the high stop hunting london open hammer at 3 45 and 9 45. that's all they got it's the same move over and over once you can identify it you own them okay so now market maker starts to stop hunt creates the panic you reevaluate your your consolidation zone he goes vector to the high on you he doesn't take out the previous high second leg m bam peak formation is formed you enter somewhere in here you got about an hour to decide level one correction pins down pins up i see what you mean about the color let me change it let me find something pretty like a yellow okay wow erased it sorry i don't know if that's any better correction right we enter in here pins up pins down forms kind of a little pullback wedge right level two of the correction is smaller and weaker but again market makers hit the pins on both sides before the next level is commenced now something kind of funny happens he goes into level three correction he's got vector to the low in here three pushes down to finish out the level right funny how i only see pins on the bottom now here and here and here those candles were all the way down at one time he's working the low now we know we've had on average of 50 pip drop per level so we're at 80 r 150 pips at 150 pips adr he starts issuing a pin at the bottom of the candle the pin is a wick on the candle whoever's asking he starts issuing pins at the bottom do you notice that there's no pins on the top of these candles not necessary i'm trying to trap short holders so i pushed the market down push the market down bam snatch it away gotcha i hang around for 45 minutes push the market down push the market down bam gotcha hang around for an hour push the market down push the market down bam gotcha the third confirmation doesn't happen very often but i like this chart because there was three confirmations here and then three mini confirmations i can't draw it down there it'll change the slide sorry and three mini confirmations one two three do you see how three plays into the psychology almost always on these charts three hits to the high three levels of drop vector three three pushes to the low three pushes to the high three pins to the low in the retail world that gets you to chase the wrong setups in our world to get you to identify his behavior and beat him understand that this happens all the time in the market in every market you just have to identify it in real time and the journey starts tonight okay pretty cool stuff i i'm a little excited i don't know i really like this stuff okay i can't change the slide it jammed there we go all right now here you are again variation on the theme time consolidation one two three to the high to end the session vector happen to have a little news in here market makers hit the stops in both directions with a spike that trades still good how do i know the high was not taken out the high happened to hold you have your peak formation high you have your high of the day us session and you also have your peak formation high of the week what do i expect tomorrow i expect stop hunt rise drop why because i got the cycle now i nailed it it's anchored okay notice something kind of crazy in here too there's three vectors in here on the downside and then notice something else in here there's three little baby vectors in there then they come back in the second leg form the w out and reverse this is not a very good counter remember okay consolidation stop hunt high this one happens to be i'm gonna write this initials down you're gonna say what the hell that's a stop hunt high hold the mayo it's not a sandwich it's a trade stop hunt high hold the mayo is simply market makers came out of the box out of the consolidation they used the 200 moving average as the trigger which offered resistance at the perfect timing at the stop hunt you know that this trade is a drop how do you know because you already got your high of the week high of the day peak formation stop hunt high hold the mayo the stop hunt trigger bars are held in place by the mayonnaise this is also two pins to the mayonnaise okay you have your drop this is an example of where you have one level of move and then you have two and three the next day then what do you have just outside the red box they issue a hammer to trigger the stops of the continued or the people that got it right long second leg right they come in session changeover they need to hit it one more time to get the stops that's your entry back in the consolidation and the day they end the day always how they start the day okay away from the traders that are jammed up down here they want to stick them okay okay good stuff all right the peak formation started the end of the week on friday in this example stop hunt high sell they push down see the low that blue tracer lets me know that yesterday the price came in like this when they go back to that i got it second leg same level failed to break second leg same level failed to break that's a big fat w staring at you that's good for about i don't know 4 500 pips 300 pips the retracement's 140 that's a 300 pip move continuation from friday notice how they caught the retailers with the gap right there we don't fall for that crap we don't care we got peak formation low pfl peak formation low that looks like an e sorry here let me take you to that peak formation low sunday going into monday there's your gap readjust your consolidation for the breakout guys readjust your market maker spread there's your initial hod initial low in here readjust because they gapped and shifted away they gapped and shifted away they don't want anybody to have a profit they got them stuck now they come back london open w formation second leg happens to be railroad tracks straight rise do not hold over the weekend i'm not telling you to hold over the weekend i'm showing you how to analyze the chart going into monday i see peak formation friday i know where i'm at now coming out i expect straight away why straight away they have to aggressively get the hell out of here because they jammed all these traders right they got to get the hell out of that range because they want to stop everybody out and get them into margin trouble because they know who's in trouble they have their list from the plug-ins they got a hundred million dollars in margin trouble if i clean that out i'll put that in my pocket i'm a market maker so that's where the aggressive break trade comes this also by the way happens to be the day that breakout traders make money second day of the cycle okay in consolidation what do you expect one more night okay what's the cycle w v1 v2 m that's the cycle right anchor point peak formation low day two day three reverse here you go day one rise consolidate back into consolidation stop hunt low rise all of a sudden manny uh the pins turned to the top side three levels of rise built into there they come back just outside the u s open issue railroad tracks retrace 140 pips in case you were bored they don't have unlimited equity they must grab it back at some point in the cycle now we'll talk about the continuation but they can make a w continue on the uptrend over here they book a profit get back into direction why they have longer term goals that they have to be cognizant of if and if you think about this they went three days up three days down the market would never go anywhere it would sit there sideways right and surely you'd figure it out i know craig would because he almost figured this out now if you notice that trade 150 pip retracement two pins to the mayonnaise if they put the second leg in at the mayonnaise there's your stop on low hold the mayo at the u.s session in the red box there's your retracement trade these things repeat over and over and over again and you're going to see them in the charts and once you see them you can't unsee them they're in there okay good stuff hang in there i know you guys are getting tired a few more minutes 10 30ish i don't want to beat you up too long okay now here's the thing that's going to piss you off this pisses me off you know your support and resistance stuff you've been drawn on the chart it's a hoax it's a hoax the consolidation zones created during these moves intraday create false support and resistance level that the market maker puts that's visible on the chart understand what i just said the consolidation zones that he makes on the chart creates false support and resistance because he knows all the retail traders draw the lines on this so right now here's the pattern right think for a minute i drew this for you i showed you this i push down i show you this i push down and show you this right this crap right here ensures that some retail guy is going to draw a line through it and say that's support from february or august 2nd oh 11 and that should hold sometime in the future he creates those zones to make you draw the lines hey joe nice to see you uh i'll get to you i miss your coffee buddy thanks for the nice email yesterday by the way to us and compass okay now to sum this up a little bit level one and level three aggressive moves will be seen market makers must book a profit and do so at level one and three level one can be previous level three three levels of rise they go into stop hunt hit stops high drop that's your level one your new peak formation level three becomes the reversal and starts level one i know it's confusing but think for a minute if i have a trade that goes down three levels one two three hit the stops one more time and rise this becomes the new the new direction right level three has now become level one two and three understand if they're going to continue if they're going to continue the reversal or they're going to continue the uptrend after they make the retracement this becomes the reset you start the count over we'll talk about this stuff i just want to expose you to it okay let me flick the chart and get rid of my drawing and come back okay so now something kind of interesting the head and shoulders pattern develops in level three most often think about what the head and shoulders pattern is hit the high pull back hit the stops pull back hit the stops one more time sorry about your luck just kidding shoulder head shoulder the difference is between us and everybody else in the retail world they want you to take that pattern at the neckline it's over at the neckline i want you to learn to grab it here or here okay i'm gonna talk about it more don't worry here's what i mean three levels of drop going into the next day right here's the m formation nice drop consolidation false support and resistance on the chart false support and resistance on the chart this lines up with some crap you'll project down here when you feel good they come in spike the low asian session shoulder they pull back aggressively they come in spike past the low to pick up the pendings break out guys snatch the market away from you hit the stops of anybody that was correct in this aggregate anybody that didn't move to break even anybody that went to break even gets scratched out on the second pass either one of these is an acceptable shoulder here or here okay railroad tracks going into the session but isn't the head and shoulder pattern let me toggle this isn't the head and shoulder pattern a variation on a w ends on an m think forget about it amputate this guy's shoulder we don't need it get rid of it there's your spike to the low second pass w formation take you're in right here bam the third try coming back doesn't take out either one of these levels trade is still good okay so this behavior exhibits level three do not enter the trade after the dang neckline's broken you're missing the whole thing the move is in here or in here okay again there you go level three behavior why because what they do is they're showing you a downtrend right averages are separated the 50s past the 200 water is below the mayonnaise the 50 emas trading below the jar mayonnaise the mayonnaise white okay now that's a retail traders downtrend what do you do as a retail trader buy the rallies buy the rallies i'm sorry sell the rallies in the downtrend sell here sell here right but what's really happened is they've made the aggressive move towards level three issued a hammer formed the low come back spiked to that low but don't take it out there's your proper entry on the head and shoulders and there's your straight run up do not go against the market maker setup trade in line with him okay you can trade both ways on level three but that's more advanced i'll talk about it later i want you just to get the basic concepts right now the bias should be changed from a downtrend after three levels of drop head and shoulders is seen but look just think about what this is draw this box right here took it out for you to see it hold on let me start over draw the box right here okay at the session open they pick up the breakout guys spike them out long spike them low short break plus a close you enter here short gotcha just kidding our group enters here okay and in three bars you're up big because this is usually a 50 pip channel 50 pip tokyo channel right they already one bar is shifted off the low 50. this next bar is about 50 right here then they chop around a little bit hit it again 50. there's your adr you understand okay never trade against the peak formation out of level one consolidation that's the day the breakout traders are rewarded the straightaway develops here most often market makers have gotten what they need at the head and shoulders the aggressive moves and the traitors are jammed going into tomorrow trapped they will not come back to the level because if they do it releases all that money back into their accounts of the traders understand by repeating back towards the level they allow the traders to click out at plus one plus five minus two minus three that's not what they're not in the business of letting people out they're in the business of jamming people so understanding that keeps you in the right directional bias wvvm maaw okay my throat's starting to hurt don't confuse the three swipes at the stop loss the vector three candles don't confuse the three pushes or pulses to the stop loss levels with the three levels of rise or correction some people i understand the three levels of or three swipes at the stops are like this they're tight and they're bursts and i'm going to cover that tomorrow but then you have the three levels of move of approximately 50 pips each depending on the pair australians like 35 pips each okay whitney you know this stuff i don't understand what you're asking me okay now we're going to end on this next couple of slides once you understand how the market is structured there's only four trades that you should be looking for these trades are ninety percent accurate and will not fail i know publicly i can't say that because people think i'm absolutely insane but i promise you when you delve into the forum and start looking around at the family you're going to see carr kim granny scott allen black rick their numbers are sick dave mccoy now zen and diane seven out of eight for the week five out of five four out of five for the week with a net profit of 10 grand this numbers are unheard of in this business because people are following the basic retail technicals and they're scared when i say that they think i'm crazy well i'm not crazy i revealed it today okay so now mastering the handful of setups that i'm going to teach you in here will ensure your success rate tommy just posted he was 87.5 percent for his first week fantastic these setups are going to ensure your success and produce returns and win win rates that are unprecedented in this crazy business i promise you that okay here's the trades stop hunt high m formation stop hunt low w formation straight away rise straightaway drop the cycle that's it too simple right you need something like dots on there and you need some bbs macd's what the hell is too easy if you take all the crap off your chart that i put on there for you by the way and just look at the price action what they're doing you're going to start to see the drawings that i've drawn for you i talked about that stupid picture that was out i don't know i think i was in my 20s a long time ago you know it was like flying saucers and dinosaurs and there's a bunch of dots and you stare at it you can't see you're like that was that stupid dot painting somebody made something happens after you blink looking at it for a few minutes you blink and all of a sudden the picture opens up and you can see flying saucers dinosaurs orange cows green stars blue clovers i don't know what the hell is in those pictures i never could do that by the way that's how i want you to look at the chart now i want you to look at a chart with a different eye a different set of beliefs and understandings and i want you to blink and all of a sudden you see the m's the w's the flying saucer market makers the dinosaurs eating your stops understand when you look at it with what i'm showing you and it clicks it's game over for you in your trading business you own it i don't know how long it's going to take you to look inside the 3d yard for it to change everyone's different i still can't see 3d art i don't want that to happen to you i want you to be the starfish that i threw back i want you to be to be the person that gets this and has success in your life you all deserve it okay it's 10 43 i'm going to end here it's a good spot i'm sorry if you're tired i went a little longer than i like to go i usually try to break around 10 30. homework for tomorrow my friends you didn't want to hear it but here it is i want you to go back and i want you to mark the charts i want you to do euro usd and gbp usd and i want you to write on the chart everything i taught you today you knew guys i mean new guys do it old guys don't do it because it's gonna i'm gonna be slammed i will look at all the emails tonight or tomorrow before class let me get a little white piece of paper over here let's see uh let's see white screen screen white okay here we go i need my pen euro usd gvp usd go back as far as you want i don't care go back a month go back two months whatever okay now i want you to label everything that i talked about on the chart i don't know if i spell that right all right let me review for you because you're probably like what the hell did you talk about i'm confused all right i want you to label i'm going to make a little list vector candles three swipes at the higher low w's m's three levels of rise three levels of fall i want you to label end the day and consolidation i basically want you to find this on every chart as you can one two three to the high pull back hit it again one two 3 w reverse and the day i want you to label this i want you to note the pins the timings the hammers orange hearts blue stars i want you to label everything i talked about for the last four hours okay remember my email address it's in the beginning of the slide steve mmm forex.com i'm gonna take i'm gonna go through as many as i can it's gonna be a lot but i'm gonna get through them i always do i promise and i'm going to take some of two or three of the outstanding ones and i'm going to post them tomorrow for our review we'll talk about at the opening of the session okay any questions pertaining to today's information and homework that i can help with right now zen and kim have been answering and typing in there helping out with the questions that's fine nice to see you lou can i type my email address i can't type it because it won't type on the screen but i can try to write it let's see it's my name steve let me toggle this and clean it up start over all right it won't toggle all right s t e v so you should have wrote that down i told you to take notes steve at m m f-o-r-e-x dot com i have another email address come and i'm just too lazy to set it up on my outlook sorry take a snapshot use jing use screen capture tool lou don't do it man don't send me any charge buddy okay look all the new guys new guys only take a screenshot of your chart mark it up use paint take a screenshot of the chart use paint mark it up vector candles breakouts of the box stop hunt low hey lauren how you doing stop on low stop on high three level drop reverse pins mini consolidation zones within the range within the end of each drop all the stuff i just talked about let's see if you learned anything or you sat here like a vegetable for four hours five hours sorry okay kelly thank you lou thanks your ball buster 15-minute chart yes whitney everett thank you thank you vadem glad you're here ed thanks nice to see you buddy thanks david nice swing trade in there buddy i've seen him in the forum great thank you guys this is good stuff man i i love teaching as much as i hope you love learning it's awesome peter how you doing bruno tony t from florida hope you're doing okay subio nice to see you buddy quit smoking man i'm gonna quit diet coke you quit smoking joe nice to see you buddy i'm out of chocolate and i'm running low on coffee thanks guys thank you john thanks everybody all right listen i'm gonna end it here have a great night i'll rest my voice i promise i'll be just as jacked up tomorrow leah nice to see you alan i'll see everybody tomorrow listen get some rest don't trade live money unless you're a stubio he's the only one allowed seriously new guys don't trade live money if you're up and you want to look at the market open a chart take all the off of there and watch just watch them work open your mind and watch them work don't put any money on the line because it'll mess up your mentality just watch them work okay i know you guys are going to do it you don't listen so anyway goodnight goodnight to nike night kim nice to see you thank you okay goodnight