4 Week Trading Bootcamp: Introduction

Congratulations on taking the largest and most important step in

your trading careers: Receiving a proper education. In the next four
weeks, you will dive into many periods of instruction that will take you
from beginner to winner seemingly overnight.
To successfully achieve the results you desire, you must remove
all previously learned material from your brain. This course takes a
crawl, walk, run approach to learning, but for the strategy to work you
must first become a blank slate.
The course is broken down into 4 Phases:
Phase 1:
Strong Foundation- Building a strong base in your learning.
Obtaining the basic relevant trading information needed to be
successful. In this phase, you are not learning to be a trader, but you
are learning about trading.
Phase 2:
The Tool Box- You will learn everything that will make you a
successful trader. Builds upon Phase 1 by giving you all of the tools
you will need to identify, plan and execute trades.
Phase 3:
Walls and a Roof- You have all of the information and tools you need,
now you just need setups. This phase is focused only on learning
these setups. DO NOT SKIP PHASE 1 & 2. Everything learned in
those phases will now be put into practice.
Phase 4:
Maintain the house- Just like living in a home, your trading skills
need to constantly be maintained to remain vigilant and not become
complacent. In this phase you will be given a career roadmap,
mentoring, and study guide to keep you sharp and progressing in your
career.

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 4 Week Trading Bootcamp: Introduction

IMPORTANT READ: This is your very first lesson, right here in

the introduction. The proper way to process the vast, and sometimes
overwhelming amount of information you are about to learn, is to
categorize information in two separate boxes.
BOX A: Will contain all of your trading setups. These are the
overall, big picture setups I.E First Red Day or First Green Day.
BOX B: Will Contain all of the supporting details that go into
identifying, preparing, and executing the “BOX A” setups.

This separation of information will help you to differentiate

between trading setups and supporting general trading concepts.

Image I-1 Depicting separation of information

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 4 Week Trading Bootcamp: Introduction

List of Acronyms

Acronym Definition

AOI Area of Interest

AR Asian Range
BIS Break In Structure
BE Breakeven
BO Breakout
BOS Break Of Structure
EODC End Of Day Consolidation
FBR False Break Reversal
FB Failed Breakout
FRD First Red Day
FGD First Green Day
HOD High Of Day
HOW High Of Week
HOM High Of Month
HB High Bull Candle
IB Initial Balance
LOD Low Of Day
LOW Low Of Week
LOM Low Of Month
LB Low Bear Candle
LHF Low Hanging Fruit
MRN Major Red News
OR Opening Range
PFH Peak Formation High
PFL Peak Formation Low
PDH Previous Days High
PDL Previous Days Low
PWH Previous Weeks High
PWL Previous Weeks Low
PMH Previous Months High
PML Previous Months Low
3DC 3 Day Cycle

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 4 Week Trading Bootcamp: Introduction

Trading Outlook: Mindset Shift

Work Smarter. Not Harder.

1. Clear your mind of everything you think you know about
trading. Make room and focus only on what you are about
to learn over the next 4 Weeks.
2. In trading “less is more”. Less time at the computer screen,
less time to make mistakes or be induced into a bad trade.
With this style of trading, you should be trading NO MORE
than 1-2 hours a day. NO MORE than 1-2 trades per
day. NO MORE than 5-12 pairs to look at.
3. Trading before Major Red News (MRN) is unprofessional,
irresponsible and considered gambling.
4. The market is far more intelligent than we are. Humble
yourself.
5. Somebody must lose for you to win. You must become a
professional at understanding human behavior.
Understanding human behavior will allow you to determine
where other people have entered the market, who is in
profit, and where their pending orders might be.

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4 Week Trading Bootcamp: Introduction

Breaker Page

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 Phase 1: Building A Strong Foundation

Phase 1 Introduction

In this phase you will learn how to trade from the ground up.
Everything in this section will be supporting information, with the larger
trade setups coming in later phases of the course.

Phase 1 Table of Contents

Topic Page Number

What Is A Pip--------------------------------------------7
Risk Management--------------------------------------8
a. Risk To Reward----------------------------------8
b. Managing Downside Risk--------------------10
Japanese Candlestick-------------------------------16
a. Fractal Definition------------------------------ 16
b. Candlestick Anatomy------------------------ 16
c. Nomenclature-----------------------------------19
d. Trend----------------------------------------------21
Order Types---------------------------------------------22
Charting--------------------------------------------------27
a. Colors----------------------------------------------27
b. Unnecessary Information---------------------27
c. Indicators-----------------------------------------32
d. Tools-----------------------------------------------35
e. Charting Basics---------------------------------38
Trading News-------------------------------------------41
a. Slippage------------------------------------------41
b. Considerations----------------------------------41
Building A Trading Plan----------------------------43

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 Phase 1: Building A Strong Foundation

Section 1: What is a Pip?

“Pip” stands for percentage in point or price interest point. A pip is the
smallest whole unit price move that an exchange rate can make.

Examples:

EUR/USD Price: From 1.00000 to 1.00010=1 Pip difference.

USD/CAD Price: From 1.00000 to 1.00010=1 Pip difference.

EUR/JPY Price: From 158.100 to 158.110=1 Pip difference.

XAU/USD Price: From 1900.00 to 1900.10=10 Pip difference.

NAS/100 Price: From 14000.00 to 14001.00=10 Pip difference.

How to find the value of 1 Pip:

Divide the size of a pip by the exchange rate (price of the pair) and
then multiply by the trade value.

Examples:

Pair Equation
EUR/USD 0.0001/EUR/USD Price x 100,000= Pip Value

EUR/JPY 0.01/158.00 x 100,000 = $6.32 Per Pip

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 Phase 1: Building A Strong Foundation

*Most brokers have free pip calculators on their websites for quick
calculations.
Quick Tip: Find the value of each pair you trade and write them down
on a sticky note/notebook for quick reference.

Section 2: Risk Management

Importance: A lot of people think that understanding how to trade a

strategy is the most important part of trading. They are wrong. The
ability to capitalize on your winners, and minimize loss on losers
is what will make you successful.

Method:

1. Risk only what your trading plan says you should. NEVER
more. We will discuss how to build an effective trading plan later
in this course.
2. If you have not MASTERED setups, you should never risk more
than 1% of your overall trading capital.
a. Example: $10,000 Account Size= ≤ $100.00 Risk.
3. Risking more does NOT mean making more, it simply means
you will lose more if you are not yet consistent.

Risk To Reward Ratio:

Definition: Used to define the risk of loss versus the possibility of

reward. An appropriate risk to reward ratio could be 1:1, 1:2 or 1:3 etc.
With this style of trading, you should only be searching for
trades worthy of 1:3 Risk/Reward (RR) or greater.
It is important to note: You are NOT taking trades based on
wanting to obtain a 1:3RR. You are taking trade setups that based
on the current setup, should provide a 1:3RR. There is a massive
difference between the two.

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 Phase 1: Building A Strong Foundation

Example: 1:3 Risk/Reward ratio indicates you are risking “1R” in order
to obtain “3R”. In this instance, if I was risking 1% and the trade were
to win, I would then make 3% of my trading capital.

Image P1S2-1 Depicting a 1:3 Risk/Reward (RR)

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Managing Downside Risk:

Importance: If you are mentally strong enough to admit you MIGHT

be wrong when a trade begins to go against you, your ability to see
trades with clarity will begin to improve.
Our primary goal as traders is to take the best trades
possible, money is a secondary result. We should be focused on
identifying, and executing the best trades, and managing downside
risk when they do not immediately go as planned.

Method: All of the setups discussed in this course are designed and
intended to limit drawdown. Once the trades begin to move, they
should NOT come back against you.
If the trade begins to go against me:
1. Access how far from my stop loss order current price is.
2. If the price is about halfway to my stop, I will close half of
my position.
3. If the price continues to get closer to my stop loss, I will
close half again.

By doing this, I have removed a lot of risk from the trade. If

it were to stop me out with an initial risk of 1%, I will lose
significantly less than previously expected.

Added Note: If the trade does NOT stop me out and begins to go
my way, I will add back into the trade using a size NOT larger
than originally planned.

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 Phase 1: Building A Strong Foundation

Scenario:
Trade was entered with a 10 Pip Stop Loss. Price went up a couple of
candles and then began to put the trade in drawdown.
1. At 5 Pips of drawdown, closed half of the position.
2. At 8 Pips of drawdown, another half of the position was closed.
3. Trade began to go in favor of the trader, size was added back in
and allowed to run until completion. Became a winning trade.
Notes:

It is NOT about the fact that the trade became a winner. The
important thing is that the trader was able to manage without
emotion or fear of being wrong. It was purely business and
capital management.
Just as easily as the trade became a winner, it could have just as
easily become a loser.

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Phase 1: Building A Strong Foundation

Image P1S2-3 4 Pips Of Drawdown

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Image P1S2-4 7 Pips Of Drawdown

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Image P1S2-5 Adding Back In

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Image P1S2-6 Becoming a Win

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Section 3: Japanese Candlestick

Importance:

Understanding the characteristics and anatomy of a Candlestick

is the lowest form of market understanding, and potentially the most
important.
Knowing how the candlestick is formed will help you with stop
loss placement, entry timings, as well as identifying where other
traders are trapped in the market.

Fractal Definition:

Pattern in which represents a whole. In simple terms, everything

happening on higher time frames, is happening far more frequently on
lower time frames.

Example:

The 1 Hour chart is in an uptrend (making higher highs, higher

lows), however the 5 Minute chart is currently in a downtrend.(lower
lows and lower highs).

Japanese Candlestick Anatomy:

1. Open
2. High
3. Low
4. Close

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 Phase 1: Building A Strong Foundation

Image P1S3-1 Fractal Nature Of Markets: 1H Uptrend 5M

Downtrend

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Image P1S3-3 Anatomy Of A Down-Close Candle

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Candlestick Nomenclature:

1. Wick
2. Body

Image P1S3-4 Nomenclature Of A Candlestick

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Important Note:
People buy and sell the close of strong Up-Close and
Down-Close candles.This is how we can start to understand
where people are trading into an extreme to figure out how/where
they might be trapped.

This Topic will be talked about more later in Phase 1.

Image P1S3-5 Market Trap Using Closing Price

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Uptrend Definition:

Series of higher highs and higher lows.

Downtrend Definition:

Series of lower lows and lower highs.

Trend Discussion:

Since markets are fractal, there could be a different kind of trend

on every timeframe. Since we are scalpers, the only trends that matter
are the 15M and 1M timeframe. Later in this course we will discuss the
use of major and minor trends, and how to use both.

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 Phase 1: Building A Strong Foundation

Image P1S3-6 Example of downtrend

Section 4: Different Order Types:

Importance:

Knowing which kind of order is right for the trade is a vital

contribution to the trades success. The types of orders are:
● Limit
● Stop (Buy/Sell)
● Market
● Stop Loss

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Limit Order:

Type of order where you are willing to buy or sell at a certain

price, and the market must return to that price before it is activated.

Image P1S4-1 Limit Order In Place

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Image P1S4-2 Limit Order Triggered

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Stop Order (Buy/Sell):

Order to buy or sell at the market price once the market has
traded at or through a specified price.

Image P1S4-3 Buy Stop Order Triggered

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 Phase 1: Building A Strong Foundation

Market Order:

Order to buy or sell at the market's current best available price.

Stop Loss Order:

Order placed with a broker to buy or sell a specific market once

the market reaches a certain price.

For example, if you enter into a buy, you MUST have a sell order
in place to exit you from the market if the trade were to go against you.

Image P1S4-4 Stop Loss Order In Place

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 Phase 1: Building A Strong Foundation

Section 5: Charting

Step 1- Colors:

You want your charts to be as easy on the eyes, conscious and

subconscious. Select colors that allow you to see shapes and patterns
the best.
Stay away from red and green as these are psychological colors.
Human beings have been taught red and green have certain meanings
since birth and make our subconscious work more than needed. In
combination with candle speed and size, the market uses these
default colors to manipulate people.

Step 2 - Remove Unnecessary Information

Taking away all of the unnecessary information will give your

brain less to look at. See picture below.

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 Phase 1: Building A Strong Foundation

Image P1S5-1 TradingView Symbol Settings

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Image P1S5-2 TradingView Status Line Settings

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Image P1S5-3 TradingView Scale Settings

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 Phase 1: Building A Strong Foundation

Image P1S5-4 TradingView Canvas Settings

Image P1S5-4 TradingView Event Settings

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 Phase 1: Building A Strong Foundation

Step 3 - Indicators:

Indicators should only assist you in quickly charting levels. Your

BEST leading indicator is the price, levels and the time. Here are
some links to the indicators I personally use on TradingView.

Previous Day High And Low

https://www.tradingview.com/script/sK7vZIir-Previous-Day-High-and-Low/

Previous Weeks High And Low

https://www.tradingview.com/script/E2jifRhi-Previous-Week-high-low/

Previous Month High And Low

https://www.tradingview.com/script/NLzdh8Pn-Previous-Month-High-Low/

Days Of The Week/Week Separator

https://www.tradingview.com/script/xoLCBvgF-FXN-Week-and-Day-Separator/

Chart Heading
https://www.tradingview.com/script/1n1Zab32-AG-FX-Watermark/

P2P All-In-1
https://www.tradingview.com/script/KgdEkimi-P2P/

Indicator Settings:

● Colors should be pastel and easy on the eyes.

● IMPORTANT: Make sure you send all indicators back (Right
click, select visual order, “SEND TO BACK”). This brings the
candles to the foreground so that they are easier to see.
● Indicator Templates can be created allowing you to quickly
switch between tools and visuals. Image S5-5 TradingView
Indicator Templates
○ Tip: Stacking multiple P2P indicators together in 1
template allows you to easily and quickly change
between indicator functions.

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Image P1S5-5 TradingView Indicator Templates

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Image P1S5-6 TradingView Chart Example

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Step 4: Tools

You only need a very small selection of tools that most trading
platforms have to offer.
● Trend Line
● Ray
● Horizontal Line
● Vertical Line
● Rectangle
● Long Position
● Short Position
● Path
● Arrow
● Text
● Fib Retracement (WILL NOT BE USED AS A FIB TOOL)
● Callout
● Parallel Channel
● Circle

Image P1S5-7 TradingView Tool Icons

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 Phase 1: Building A Strong Foundation

These tools can be accessed using the home button and

clicking the “Drawing Panel” and then favoriting the above
tools.

Image P1S5-6 TradingView Drawing Panel

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 Phase 1: Building A Strong Foundation

Useful Keyboard Shortcuts:

“Keyboard Shortcuts” can be seen in Image S5-6

Shortcut Command

Measure Tool Hold Shift + Click

Copy Selected Ctrl + C
Paste Object Ctrl + V
Copy Drawing Ctrl + Drag
Trend Line Alt + T
Change Timeframe Type Number

Watchlist Creation:

Having an easy to follow watchlist will remove a lot of stress when

cycling through the pairs.

1. Click these 3 dot

2. Click “add section”
a. Add signal days
b. Add other setups
3. Add 8-10 Pairs.

Image P1S5-7 Watchlist

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 Phase 1: Building A Strong Foundation

Charting Basics:

Charting effectively is an art, and it takes time to perfect the craft.

Separate charting into 2 categories.
1. Study Binder (reviewed over time)
2. Trading Thesis (used to take trades)

Goals:
1. Accurately depict your thoughts on the screen in a manner that
you could review at a later date. These notes should paint a
picture and tell a story.
2. Neat and organized word picture that allows you to know what
you were thinking, in order to prepare to take trades.
3. Build a trading thesis.

What to include (Study Binder):

● Signal Days
● Weekly Cycle Setups
● Opening Range
● Market Structure
● Trapped Volume
● Failed Breakouts
● Price-Level Gaps
● Previous day, week, month levels
● Session boxes
● Breakout Trader Stops
● Inside Bar Trader Stops
● Days of the week
● 3 Pushes
● Time

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Phase 1: Building A Strong Foundation

Image P1S5-8 Study Binder 15 Minute

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After obtaining a weekly template view of a chart (See S5-8), it is

important to then zoom into each trading setup to find the entries on
the 1M chart. In the below example (See S5-9) there is a 1M view of
Friday's New York Session Setup. The setup is FRD. It is presented as
3 sessions of rise ending in a 1,2,3. This behavior can be observed on
the 1M to find the best entries.

Image P1S-9 1 Minute Study Binder Entry

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 Phase 1: Building A Strong Foundation

Section 6: Major Red News (MRN)

Slippage Defined:

Difference between the expected price of a trade and the price at

which the trade is executed. For example, having a buy stop set at
1.000, and you do not get filled until 1.250 due to slippage. Now you
have been filled at a worse price.

MRN Considerations:

Financial News calendar can be found on Forex Factory and other

similar websites.
Within your timing window, a lot of times there will be MRN. The
market has a tendency to build orderflow leading into the news in
order to manipulate unsuspecting traders, and move in its intended
direction.
It is best practice to simply wait until after the MRN has played
out before even thinking about taking a trade to maximize the
probability of success.
Positioning yourself BEFORE the news in an attempt to benefit
from the volatility is gambling and has no place in a professional
traders playbook. MRN is well known for causing massive amounts of
slippage with both entries and stop loss orders.
Taking a trade after the news still requires a setup to be in play. A
lot of times the news is just the catalyst, or the event that propels the
market. If the market pushes the trade in your intended direction, there
may be opportunity for a 1st Bounce Trade. This trade will be
discussed later in the course.

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 Phase 1: Building A Strong Foundation

Image P1S6-1 Setup Before Major Red News (MRN) 15M Chart

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Section 7: Build A Trading Plan

Importance:

Having a trading plan allows you to know exactly which setups

you are looking for, how much you will risk, how many pips of stop
loss you will use, and how you are going to take profits.

If you do not have a plan, you are planning to fail. A lot of people
trading without a plan struggle with consistency because they are
doing things differently on every trade that they take.

Include This Information:

Every trading plan should have the following details minimum:

● Setup - These setups will be given later in this course.
● Risk %
● Pips risk
● Entry Plan
● Exit Plan
● Breakeven Plan
● Setup Grade (Tier, Star, or A,B, C)

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Image P1S7-1 Trading Plan Example

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 Phase 2: Toolbox Tools

Phase 2 Introduction

In Phase 2, you will learn about every tool needed to execute this
style of trading. By the end of this Phase, you will have all of the
information in preparation to learn about the trading setups. This will
rapidly pull you from beginner to well informed student. By the end of
this phase, your “tool box" should be full.

Phase 2 Table of Contents

Topic Page Number

Market Structure---------------------------------------47
a. Identifying Swings----------------------------47
b. Structural Breaks------------------------------51
c. Major Swings-----------------------------------53
d. Minor Swings-----------------------------------55
e. Trendlines/Channels----------------------- 57
Candlestick Patterns--------------------------------63
a. Engulfing Candlestick pattern---------64
b. M’s and W’s-------------------------------------66
c. Head And Shoulders/Inverse--------- 72
d. Triple Top/Bottom---------------------------80
Supply And Demand------------------------------- 83
Trade Timing Window---------------------------- 86
a. Trading Day Start Time-------------------88
b. Equity Hour Importance----------------- 88

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Market Traps and Manipulation-------------90

a. Consolidation Definition----------------91
b. 3 Push Variations--------------------------91
c. Stair Stepping------------------------------- 91
d. 3 burst Impulse-----------------------------94
e. 1,2,3---------------------------------------------- 98
f. Working A Level (3 Pushes)---------100
g. 1 Pause 2,3/ 1,2 Pause 3-------------103
h. Level 3 Traps-------------------------------105
i. 3 Pushes Out Of Consolidation---107
j. Inducement Candles-------------------110
k. Breakout Fake Out Candles---------112
l. Time Engulfment-------------------------113
m.Trapped Volume--------------------------120
n. Price To Level Gaps--------------------123
o. Breakout Trader Stops----------------124
p. Inside Bar Trader Stops--------------126
100 Pip Box-----------------------------------------128
a. 3 Levels Rise Or Fall-------------------130
b. Types of 3 Levels-----------------------136
Opening Range And Initial Balance----137
a. Range Expansion-----------------------138
b. 50% of Opening Range--------------142
and Consolidations
Concepts-------------------------------------------144
a. Market Maker Pattern---------------144
b. Consolidation----------------------------145
c. Purpose Of A Pullback--------------148

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Section 1: Market Structure

Market Structure is the single most important thing you will learn
in this entire course. By perfecting market structure you will
automatically:
1. Know exactly what you are looking/waiting for.
2. Allows you to be patient
3. Improves trading accuracy/win rate.
4. Reduces uncertainty

How To Identify Swings:

Up-Move (Uptrend):
1. 2 Up close candles.
2. 2 Down close candles.
3. Draw line to identify swing high.
4. Once the swing high breaks with a solid candle close, draw a line
for the swing low.
Down-Move (Downtrend):
1. 2 Down-Close Candles.
2. 2 Up Close Candles.
3. Draw Line to identify swing low.
4. Once the swing low breaks with a solid candle close, draw a line
for the swing high.

Important Note: Since markets are fractal, keep in mind that the
following rules for structure, as well as candlestick and chart
patterns, will occur on all time frames. Some of these patterns can

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take multiple days to form, others will form within a day or even a
trading session.

Image P2S1-1 Swing Low Example (Downtrend)

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Image P2S1-2 Swing High Example (Uptrend)

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Image P2S1-3 Identifying The Low/High

Depicted in Image P2S1-3, note how the low was identified. The same
can be done if the market was in a downtrend, just opposite.

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Structural Breaks

Break In Structure Definition:

Indicates a potential change in direction. For example, in a

downtrend after making a series of lower lows and lower highs the
market makes a higher high.

This is the first time the market has made an attempt to change
directions. This first attempt is called the “1st mouse”. The first mouse
is the trader who traded the breakout of a range and is now trapped in
the correct direction, but at the wrong time.

Image P2S1-4 Identifying Break In Structure and 1st Mouse

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Break Of Structure Definition:

Indicates there is trend continuation. For example, in a

downtrend making lower lows and lower highs, the market makes
another lower low. That would be considered a break of structure
(BOS).
Important Note: With both BIS and BOS, you would still anticipate
some kind of retracement after the new extreme is made.

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Image P2S1-5 Identifying Break of Structure Trend Continuation

Major Swings:

Major Swings can be identified by looking at the chart and

finding where a series of swings have formed, consolidated and began
going the other direction.

To identify where the market has “begun going the other way”,
look for the Break In Structure and the overall structure that led to the

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market going the opposite direction. Once the Break in structure

occurs, followed by a Break Of Structure, there is now a new major
swing level formed.

Image P2S1-6 Identifying Major Swing Highs And Lows

As depicted in P2S1-6, note the uptrend of small swings

climaxing into a consolidation. This consolidation then breaks
structure to the downside, followed by a break of structure. Once this
has occurred, there is a new major swing high formed on this
timeframe.

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This same behavior will be observed to form a major swing low,

simply in reverse. The market would be in a downtrend and then break
structure to the upside followed by a break of structure.

Minor Swings:

Minor swings will make up the trend in between the 2 major

swings. Minor swings make up a minor trend and can help to identify
the current direction the market is moving. This is NOT to be mistaken
with Major Trend. Major Swings are the makeup of the Major Trend.
Therefore, if the Major Swings are creating an uptrend or a downtrend,
that would be considered the Major Trend.

Image P2S1-7 Identifying Minor Swing Highs And Lows

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Minor Trend Use:

1. Identify CURRENT direction of market.

2. Identify when the market is showing signs of reversal (current
direction change).
3. Used to identify potential trade setups forming.

Major Trend Use:

1. Identify overall market direction.

2. Identify the distance from one major swing to the next.
a. Builds a box
b. Creates a range
3. Helps identify which kind of trading setup you are looking for
a. Trend
b. Reversal
c. Countertrend

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Image P2S1-8 Major Trend Use

Trendlines:

Description:

Trendlines are a common practice in trading. However, using this

style of trading they are not used in the traditional way. With the
understanding of how “retail traders” use the trendline, we can search
for the trap and benefit from it.
Trendlines, in combination with other ToolBox Tools will be
useful for spotting minor and major trend reversals. Although a useful
tool, no major trading decisions will ever be made using ONLY the
trendline.

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How To Draw:

Uptrend:

● Draw a line across the lows in a diagonal manner in the direction

of the uptrend.
● Does NOT have to be perfect.
● Try to make it touch as many lows as possible. It is normal for
price to travel below the trendline and then continue with the
uptrend.

Downtrend:

● Draw a line across the highs in a diagonal manner in the

direction of the downtrend.
● Does NOT have to be perfect.

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Image P2S1-9 Drawing Trendlines (Uptrend)

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Image P2S1-10 Drawing Trendlines (Downtrend)

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Trendline Use:

● Tool Box Tool. NOT a strategy.

● Helps identify where traders may be trapped attempting to trade
trendline breakouts.
● Early warning sign of trend weakening.
○ Touches get closer together.
○ 1 or more attempts to “leave the boundaries” of the
trendline.
○ Breaks though trendline and goes into consolidation.
● Identify the dump and pump or pump and dump patterns.

Trend Channels:

Similar to trendlines, trend channels are drawn in the same

manner. If the trend is currently ascending, draw the bottom of the
channels first and then the top.
If the trend is currently descending, draw the top of the channel
first and then the bottom.
Understanding how to draw these channels is important for
accurately charting, planning and executing a parabolic trend trade.
This trade setup will be discussed in Phase 3 of the course.

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Image P2S1-11 Pump And Dump Patterns

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Image P2S1-12 Trend Channel

Section 2: Candlestick and Chart Patterns

There are hundreds of candlestick and chart patterns. You DO

NOT need even half of them. Less is more in trading. In this section,
we will go through the most useful and relevant, identifiable and
tradeable candlestick/chart patterns.

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Engulfing Candlestick Pattern:

● 2 Variations
○ Immediate
○ Delayed
These are NOT the traditional names for the engulfing patterns.
However, this is the least confusing and all you need to know about
them for the pattern to be effective.

Immediate:

Bearish: Bear candles closing lower, followed by a bull candle that

closes immediately after, “engulfing” the previous bear candle.
Bullish: Bull candles are closing higher, immediately followed by an
“engulfing” bear candle.

Image P2S2-1 Bearish Engulfing Image P2S2-2 BullishEngulfing

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Delayed:

A lot of times, price will go sideways, pausing before going

vertical in the opposite direction engulfing some kind of structure.
These patterns will usually come in the form of a M or W.
Note: There are a couple of candles in between the engulfing
candlestick and the candle being engulfed.

Image P2S2-3 Delayed Engulfment

Engulfment Considerations:

● Candle being engulfed: Draw line from the opening price (body of
the candle) seen in P2S2-3.
● Primary pattern used to enter the market using this trading style.
● Used to find Trend entries.
● Used at the extremes of a range to find reversal trade setups.

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Double Top and Double Bottom (M,W):

● Inducement pattern that can lead to reversals. Takes the shape

of an M or W, and has 4 different variations. Inducement patterns
are market behavior that will lead traders into an extreme
expecting continuation, only to trap and shift in the opposite
direction.

M / W Anatomy and
Nomenclature:

1. Neckline
2. Left Shoulder
3. Right Shoulder

4 Variations of M / W

1. Shortened
2. Extended
3. Equal
4. Micro

Image P2S2-4 Double Top “M”

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Effective Areas Of Interest (AOI) :

● In combination with a pre-identified trading setup, these M, W

patterns are most effective in the following locations of the
chart.

● High of Session/Low Of Session

● High of Day/Low of Day
● High of Week/Low of Week
● High of Month/Low of Month

Shortened M / W:

● Can be
identified by the
M, or W like
appearance.
The left
shoulders will
be higher than
the right
shoulder (If an
M), with an
obvious middle
structure
(Neckline) in
place.
● If a W, the left
shoulder will be
lower than the right. Image P2S2-5 Shortened M

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Extended M / W:

● Can be identified by the M, or W like appearance. The left

shoulder will be lower than the right shoulder (if an M), with an
obvious middle structure (Neckline) in place.
● If a W, the left shoulder will be higher than the right shoulder as
seen in P2S2-6.

Image P2S2-6 Extended W

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Equal M / W:

● Can be identified by the patterns M, W like appearance and equal

lows or highs. Neckline is clearly visible.

Image P2S2-7 Equal M

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Micro M / W

● Can be identified as a 4 bar pattern, whether it is an M or a W.

Sometimes there may be an extra bar or two.
● Concept of up, down, up, down for an M, and Down, up, down, up
for a W remain the same.
● Both the Micro M and W must have a middle structure in order to
have a proper neckline.

Image P2S2-8 Micro W

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Image P2S2-9 Micro M

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Head And Shoulders / Inverse Head And Shoulders (H&S):

● Can be identified by its “Ghost Like Appearance”. Imagine a

person standing straight up with a sheet draped over their head
and shoulders.
● This pattern has a left shoulder, a head, right shoulder and a
neckline. Inverse Head and Shoulders have the same sight
picture and characteristics, simply flipped upside down.

Complex Head And Shoulders / Inverse Head And Shoulders:

● Similar to the H&S, the complex version also has a left shoulder,
head and right shoulder. The only difference is the way that the
“head” and the “shoulders” present themselves.
● Instead of the appearance of only one shoulder, they will appear
as multiple mounds, peaks often appearing as double or triple
top/bottom patterns.

Micro Head And Shoulders / Inverse Head And Shoulders:

● The micro pattern has the same characteristics as a “Normal”

Head and Shoulders pattern, however will appear more as a
candlestick pattern instead of a larger chart pattern.
● The dialog would sound like this: Up candle, down candle (Left
shoulder), Up candle, Down Candle (Head), Up Candle, Down
Candle (Right Shoulder). The neckline should be obvious from
where the pattern began.

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Important Note: Time frame is irrelevant. All patterns will show up on

any time frame. However, they do show up more often on the smaller
time frames.

Image P2S2-10 Head and Shoulders

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Image P2S2-11 Head and Shoulders Ex. 2

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Image P2S2-12 Inverse Head and Shoulders

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Image P2S2-13 Inverse head and Shoulders Ex. 2

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Image P2S2-14 Complex Head and Shoulders

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Image P2S2-15 Micro Head and Shoulders

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Image P2S2-16 Micro Inverse Head and Shoulders

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Triple Top / Bottom:

● Chart pattern that will display 3 distinct peaks jamming into a

level.
● Peaks can be equal or slightly higher/lower than one another.
● Triple bottom and top will mirror one another as the same
pattern only flipped over.

Image P2S2-17 Triple Top

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Image P2S2-18 Triple Bottom

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Image P2S2-19 Micro Triple Top

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Section 3: Supply and Demand

Supply Definition:

● Amount of Sellers. Sellers want to sell at the highest possible

price.
● These zones are created by a bearish engulfing candlestick
pattern at the HOS, HOD, HOW, HOM.
● Draw zone on the candle that was engulfed OR the pattern that
was engulfed.

Supply Zone:

● After a bearish engulfment at one of the above locations, this

area will become an area of resistance (price struggles to go
higher) in the market.
● Additionally, the bearish engulfment of a chart pattern will also
create a supply zone that can act as resistance.

Demand Definition:

● Amount of Buyers. Buyers want to buy at the lowest possible

price.
● These zones are created by a bullish engulfing candlestick pattern
at the LOS, LOD, LOW, LOM.
● Draw zone on the candle that was engulfed OR the pattern that
was engulfed.

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Demand Zone:

● After a bullish engulfment at one of the above locations, this

area will become an area of support (price struggles to go lower)
in the market.
● Additionally, the bullish engulfment of a chart pattern will also
create a supply zone that can act as support.
Important Note: We are NOT trading supply and demand zones alone.
They are a tool or added confluence to your already existing trade
setup.

Image P2S3-1 Supply Zone

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Image P2S3-2 Demand Zone

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Image P2S3-3 Session Supply Zone

Section 4: Time

Session Times:

● ALL TIMES ARE EASTERN STANDARD TIME (EST)

● Does NOT matter what your chart time says, it is EASTERN
STANDARD TIME.
● You can change your TradingView Chart time to UTC-4 for
EASTERN STANDARD TIME.

Asian Session: 8:00PM-11:00PM EST

London Session: 2:00AM-5:00AM EST

New York Session: 8:00AM-11:00AM EST

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Image P2S4-1 Session Timings and Daily Start Time

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Trading Day Start Time:

1. Turn on period separator on MT4, MT5, or TradingView. The very

last candle that prints before the vertical line is the last candle of
the trading day. The first candle after the vertical line is the start
of the trading day.
a. Forex Currency Pairs:
i. End Time: 5:00 PM
ii. Start Time: 5:00 PM
iii. These are the same times on the same day, because
Forex trades 24 hours a day.
b. Indices, Gold, and Oil:
i. End Time: 5:00 PM
ii. Start Time: 6:00 PM
iii. Indices, Gold and Oil trade 23 Hours a day, with 1 Hour
of overlap.

Equity Hour Start Time:

Asian Session: 9:00 PM

London: 3:00 AM
New York: 9:00 AM

Importance:

1st Hour: Opening Range of the Session (Usually a trap)

2nd Hour: Equity Hour highest volume within the session. Will either
breakout and trend, breakout and reverse or stay within the 1st hour's
high and low consolidation.
3rd Hour: Either a continuation or reversal of the 1st and 2nd hour.

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Image P2S4-2 Equity Hour Open Vs Volume

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Section 5: Market Traps and Manipulation

“If it has happened twice, it will probably happen again”.

This mentality and psychological behavior of human beings is a
market trap. This allows smart money to know EXACTLY where
traders are entering the market and where their stop loss is.

100% of the time the market is attempting to get you to do

something. Whether you are aware of it or not, the market has a TON
of methods of inducing, trapping and shifting the market away from
unsuspecting traders.
However, if you are aware of where to look for these traps, and
understand the methods which the market induces people to take
trades in certain areas of the chart, you can easily plan, prepare and
execute your trades in line with the market's intentions.

These methods include:

● 3 Push Patterns
● 3 Levels (3rd Level)
● Inducement Candles
● Time (15M, 1H, 4H)
● Failed Breakout Zones
● Price to Levels gaps
● Breakout Levels Stops
● Inside Bar Stops
● Spread

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Consolidation Definition:

All price movements are between a high and low. Remember that
markets are fractal and therefore will ALWAYS be in between a high
and a low, even all the way down to a 1 SECOND candle there is a high
and a low.
The highs and lows that we primarily use are the previous month,
week, day, session, 4H and 1H high and low.

3 Push Pattern Variations

Important Note: These patterns are used to identify exhausted

markets, trapped traders and trading entries.
1. These patterns include:
● 3 Levels (Stair Stepping).
● 1,2, PAUSE 3.
● 1, PAUSE 2, 3.
● 1, PAUSE 2 PAUSE 3.
● 1, 2, 3.
● 3 Burst Impulse Candles.
● Working A Level (3 Pushes)

2. 3 Pushes out of consolidation:

○ Will be any of the above listed variations.

These patterns can be observed on ALL timeframes, however we

primarily use the 15M and 1M.

Stair Stepping
1. Used to identify where the market is exhausting coming out of
consolidation in its current direction.

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2. Used to identify 3 pushes against the trend to look for trend

continuation.
3. Could present as 4 pushes due to the “breakout pullback”.
4. Could present as only 3 pushes.

Image P2S5-3 Breakout 3 Levels Of Rise Direction Exhaustion

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Image P2S5-3 3 Levels Direction Exhaustion

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Image P2S5-4 3 Counter Trend Pushes

3 Burst Impulse:

Identified when you notice smaller clusters of candles followed

by large impulse candles. This will come in the form of cluster, burst 1,
cluster, burst 2 cluster burst 3. Like all other 3 push patterns, look for
the trap above/below the 2nd push. This behavior can be observed in
P2S5-5.

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Image P2S5-5 3 Burst Stair Step

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Image P2S5-6 3 Burst Stair Step Example 2

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Image P2S5-7 3 Burst Stair Step Example 3

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1,2,3:

Ends a move on the 3rd level. Commonly referenced as “3 levels

ending in a 1,2,3”. The 1,2,3 is 3 back to back candles, either up close
or downclose depending on market direction, that will lead traders into
an extreme prior to reversal.
1,2,3 can be used to identify reversals as well as continuations
after a new extreme has been formed (BOS/BIS).

Image P2S5-8 1,2,3 Continuation

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Image P2S5-9 1,2,3 Reversal

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Working A Level (3 Pushes):

Can be identified after noticing the market keeps retesting

a specific high or low. This could be the H/LOS, Day, Week, Month. The
market will put in a high or low and then proceed to hit the same level
3 more times.

Typically will appear as a triple top or triple bottom. Can be used

to identify trapped volume and can be an additional confluence to your
pre-existing trading thesis.

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Image P2S5-10 Level Worked 3 Pushes Example 1

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Image P2S5-11 Level Worked 3 Pushes Example 2

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1, Pause 2,3 / 1,2 Pause 3:

Can be identified after a BIS or BOS. Will be observed as a

style of “pullback” or “stophunt”.

Image P2S5-13 1, Pause 2,3 15 Minute Example

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Image P2S5-14 1,2 Pause 3 1 Minute Chart Example

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Level 3 Traps Traders:

Everything above or below the 2nd push of a move can be

considered a potential area for the market to trap volume and shift in
the other direction.
1. Identify which kind of 3 push pattern you are observing.
2. Identify the area above/below the 2nd push.
3. Observe the lower timeframe (1 minute) for additional
information. “Additional Information” will be discussed in
the next Phase of this course.

Image P2S5-15 Trap Above 2nd Push 15 Minute Example

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Image P2S5-16 Trap Above 2nd Push 1 Minute Example

P2S5-16 is the 1 Minute chart of P2S5-15.

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3 Pushes Out Of Consolidation:

Consolidation is all candles formed in between a high and a low.

Searching for how the market comes out of this consolidation will help
to identify reversals as well as failed breakouts/false break reversals.

Where To Observe This Pattern:

● HOS/LOS
● HOD/LOD
● HOW/LOW
● Previous 1 Hour High/Low
● Previous 4 Hour High/Low
● Previous Days High/Low
● Previous Week High/Low
● Previous Month High/Low

If there is a high and a low, and the market comes out of that
range in a 3 push/level variation, especially at a certain time of day
(In the timing window I personally trade), I will look for traps on the
3rd level for a potential trade setup.

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Image P2S5-17 3 Pushes Out Of Consolidation

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Image P2S5-18 3 Pushes Out Of Consolidation Example 2

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Inducement Candles:

The market is always trying to get other people to take action in

certain areas of the chart in order to create liquidity. Based on the
predictability of humans, it is easy to engineer liquidity in certain
places of a chart in order to manipulate it at a later time.
One of these methods include Inducement Candles. These are
candles that will appear relatively larger than the surrounding candles,
leading traders into an extreme or the last leg of a move. This behavior
Induces people to buy or sell at the worst possible time.

Image P2S5-19 Inducement Candles

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Image P2S5-20 Inducement Candles Example 2

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Break Out Fake Out Candles:

Type of inducement candle that will form at a breakout

level into the 3rd level of rise or fall. These candles will appear to hold
all of the trading volume above or below them.
Breakout candles will also appear soon after a break in structure
to induce traders into trading back into the extreme before almost
immediately reversing.
Can be used to help confirm the idea of traders being trapped up
high or down low. Provides confidence and confluence to a
pre-existing trade setup.

Image P2S5-21 Breakout Fake Out Candles

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Time Engulfment:

All price movements are timed, measured and planned. The

market is a master at inducing people to take trade at the worst
possible times. This behavior can be observed using price action and
the clock.
By observing the opening price of 15 minute, 1 Hour, 4 Hour and
Daily Opening price, you will notice that there is always a time which
the market will drive in 3 pushes before it reverses. Catching this
behavior will allow you to identify candle wicks before they form.
Understanding where traders are trapped will also allow you to
enter with more confidence. Allows you to place a tighter stop loss
limiting risk and maximizing risk to reward.

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Image P2S5-22 Time Engulfment Trend Continuation

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Image P2S5-23 Time Engulfment Reversal

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Image P2S5-24 Time Engulfment Reversal Example 2

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Image P2S5-25 Time Engulfment Reversal Example 3

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How To Use Time Engulfment:

1. Entries
a. Must be used in combination with entry criteria.
b. Assists with scaling by showing where traders may be
trapped (engulfment of time being further confirmation and
reason to scale the position further).
2. Stop Loss Placement
a. Thought Process: If traders are trapped in a location, the
market should not return to that area. Stop should be safe.
If it is not, the trade idea is either wrong, or entry was early.

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Image P2S5-26 Time Engulfment Reversal Example 4

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Trapped Volume:

Can be observed above or below an important level such as

opening of a 15M, 1H, 4H or Daily opening price. As discussed in Time
Engulfments, the market will open a new candle and drive into an
extreme in 3 pushes inducing traders in the wrong direction. This will
create “trapped volume” above or below the open of that candle,
depending which way the market intends on going.

The best place to look for trapped volume is above or below the
2nd push of a 3 push pattern.

Trapped volume can also be observed above or below previous

highs and lows. These levels include previous 1H, 4H, Daily, Weekly
and Monthly highs/lows.

Rule of Trapped Volume:

1. Can be retested, but no new extreme may be formed.

a. New extreme would be considered a candle close
above or below the level. This is an invalidation.
b. Ideally the retest should not exceed 50% of the zone.

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Image P2S5-27 Trapped Volume

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Image P2S5-27 Trapped Volume Example 2

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Price to Level Gaps:

Area of the chart where market makers induce traders to behave

a certain way, and will leave a level intact in order to come back later in
the day or the week to collect liquidity.
Can be used to help identify where price might go in combination
with a pre-existing larger trade setup.

Image P2S5-28 Price To Level Gap

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Breakout Trader Stops:

Using Previous Days, Week, or Months High/Low, identify where

price has moved effortlessly through the level. There will be no retest
of the level, price will have gone straight through. This induces
breakout traders to execute a trade in the direction the market is
currently moving, placing their stop loss on the other side of the
breakout.
This creates liquidity for the market maker to come back, either
in the current day or later in the week, to collect.

Image P2S5-29 Breakout Trader Stops

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Image P2S5-30 Breakout Trader Stops Example 2

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Inside Bar Trader Stops:

Inside Bar:
Candle that
creates a high and
low inside the
previous candles high
and low WITHOUT
touching that
previous candles high
or low.

Image P2S5-31 Inside Bar

People and institutions on higher time frames will trade inside

bars (Daily, Weekly and Monthly Charts). Their stop loss will go on the
other end of that inside bar creating engineered liquidity for the market
maker to exploit.
The market will only do 3 things:
1. Breakout/Trend.

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2. Breakout/Reverse go back to the 50% or 100% of the

consolidation (High/Low).
3. Stay in a Trading Range.
This behavior can be observed on all timeframes, however we
utilize the previous day's high and low on the 15 minute chart to find
trading setups using the above information. The Market does NOT
have to come back to the level on the current day. At times it can take
all week before returning to get the stops.

Image P2S5-32 Inside Bar Trader Stops

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Section 6: 100 Pip Box

Identification:

Referred to as bank levels or institutional trading levels, the 100

pip box is the price of the market you are looking at. For example, if Oil
is $100.00, the distance to $101.00 would be considered 100 pips.
Quarter levels are 25 pip increments in between such as $100.25,
$100.50, and $100.75. For other instruments the 100 pip box will be
different. For example, Xau/Usd price is $1000.00. From $1000.00 to
$1010.00 would be 100 pips.
Furthermore, we can reference these levels as 25, 50, 75 and 00.

Stop Hunts:

The average stop hunt outside of a range is 25-50 pips. Above 00

to 50 and below 00 to 50 is the acceptable distance the market can
travel outside of the 100 Pip box to still be considered a stop hunt.
This information is important when identifying where the market
might be consolidating and why. We want the market to be on the
“outside” at or around session beginning to help develop a thesis
about potential strike zones. Outside is in reference to the 25-50 pip
move outside of 00.

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Image P2S6-1 100 Pip Box Nas100 Example

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Identifying 3 Levels of Rise Or Fall:

There are multiple ways of identifying strike zones. Remember,

this method is a toolbox tool and is meant to be an additional
confluence to your already existing trade thesis.

1. High/Low of the week:

1. Identify consolidation from where the week
began.
2. Identify which way the market broke out of the
consolidation and measure 3 levels in the
direction the market is moving.
3. Use the size of the consolidation to measure the
levels.
a. Example: Market was consolidating in a 50
Pip box and broke out to the downside.
Measure 3 more 50 pip boxes down to find
a potential strike zone.
2. High/Low of previous day:
1. Identify a consolidation at the high or low of the
previous day.
2. Identify which way the market broke out of the
consolidation and measure 3 levels in the
direction the market is moving.
3. Use the size of the consolidation to measure the
levels.
a. Example: Market was consolidating in a 50
Pip box and broke out to the downside.
Measure 3 more 50 pip boxes down to find
a potential strike zone.

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3. High/Low of the current day:

1. Identify a consolidation at the high or low of the
current day.
2. Identify which way the market broke out of the
consolidation and measure 3 levels in the
direction the market is moving.
3. Use the size of the consolidation to measure the
levels.
a. Example: Market was consolidating in a 50
Pip box and broke out to the downside.
Measure 3 more 50 pip boxes down to find
a potential strike zone.
4. Breakout Levels:
1. Measure in the direction of the breakout.
Looking for breakouts of:
a. Previous Session High/Low
b. Previous Days High/Low
c. Previous Weeks High/Low
d. Previous Months High/Low
2. Identify which way the market broke out of the
consolidation and measure 3 levels in the
direction the market is moving.
3. Use the size of the consolidation to measure the
levels.
a. Example: Market was consolidating in a 50
Pip box and broke out to the downside.
Measure 3 more 50 pip boxes down to find
a potential strike zone.

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Image P2S6-2 100 Weekly 3 Levels Example

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Image P2S6-3 Measuring from previous days level

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Image P2S6-4 measuring from previous days level example 2

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Image P2S6-5 Measuring 3 levels from the breakout

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Pros:

1. Improves strike rate/win rate/trade accuracy.

2. Provides a potential strike zone.
3. Can help identify where traders are trapped.
4. Risk to reward: Trading from an extreme allows for tight stops and
asymmetrical risk to reward opportunities.
5. Added confluence to the trade.

Cons:

1. Takes practice to gauge which measurement to use.

2. Can feel subjective or discretionary at times.

3 Levels

It is important that the difference between the different kinds of

3 levels is identified. A lot of times the market will be moving in
multiple types of 3 levels in unison, it can be easy to focus on
whichever catches your attention first.
Correct practice would be to notice one of the 3 levels patterns
and immediately check for one of the others as well. All 3 Levels
patterns have been discussed previously in this course and will be
referenced again in phases 3 and 4.

The types of 3 Levels include:

1. Price Action (Stair Stepping)

a. 3 Session Rise/Fall
b. 3 Levels/Pushes outside of the previous session, day, week, month
high/low.
2. Number Boxes (100 pip box)
3. 3 Push Patterns

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Section 7: Opening Range and Initial Balance

Opening Range:

The Opening Range is the high and low of the first period within a
given trading period. For example, the opening range of a session
would be the 1st Hour within that session.

Due to the fractal nature of markets, there are multiple opening ranges
to be aware of.
1. Session = 1st Hour
2. Day = 1st Session (Asian Session)
3. Week = 1st Day of week (Monday)
4. Month = 1st Week of Month

Important Note: The Opening Range high and low will remain for the
entire week, day or session you are trading. For example, Monday’s
high and low will remain the opening range for the entire week, only
resetting once the new week begins.

Within this style of trading, you will use 1-3 on a daily basis.

Initial Balance:

The Initial Balance is a combination of the first two periods

(brackets) within a given trading period.

For example, Monday would be the opening range for the week,
however the combination of Monday and Tuesday will form the Initial
Balance. Similarly, since Asian Session is considered the opening
range for the day, London would then create the initial balance.

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Range Expansion:

All price movements are timed and measured. The way we

measure these movements are by identifying a swing high and low
that creates a rectangle and looking for equal distance range
expansions of that high/low.

Image P2S7-1 Range Expansion

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Image P2S7-2 Range Expansion Tool Settings

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Theory of Use:

In most cases, after the Opening Range (OR) and Initial Balance
(IB) have formed, this will create a box (high and a low). Since the
market will only do 3 things (Trend, Reverse or Trading Range) we look
for 3 things.
1. Market to breakout and fail.
a. Trade reversal back to the 50% of the range.
b. Trade reversal back to the other side of the range.
2. Market breaks out and begins to trend.
a. Look for range expansion opportunities.
b. If breaking out, the opening range can be used as the levels
for high/low expansion.

A lot of the trade setups you will learn in Phase 3 will be based
around the opening range concepts as they are not only used within
the week, but also by using Asia, London as well as the 1st hour of the
NY Session.

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 Phase 2: Toolbox Tools

Image P2S7-3 Weekly Opening Range & Initial Balance

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 Phase 2: Toolbox Tools

Image P2S7-4 Weekly Opening Range & Initial Balance Example 2

Opening Range/Consolidation 50% Level:

The 50% of ranges is an important level to watch as it can

oftentimes be the market maker's target.

Example: Taking a High of the week's trade based off of a failed

breakout. Most traders would expect or look to take profits at the other
end of the week's range (low of the week). However, a lot of times, the
market will retrace 50%, go into consolidation and reverse.

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 Phase 2: Toolbox Tools

Being aware of this information will allow you to more accurately

manage trades and limit expectations.

Image P2S7-4 Weekly Opening Range 50%

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 Phase 2: The Setups

Section 8: Concepts

Market Maker Pattern Concept:

Regardless of what trade setup you are looking for, you must
understand that the market is constantly building the same template
over and over again, with slight variations. The market maker pattern
consist of:
1. Peak Formation
a. High
b. Low
2. 3 Levels
a. Rise
b. Fall
3. Peak Formation
a. High
b. Low
4. 3 Levels
a. Rise
b. Fall

Image P2S8-1 Market Maker Template

This constant repetitive cycle allows you to better visualize the

market's intentions, where to take trend trades, or where to look for
reversals. All of the trade setups you learn in the course relate to this
pattern even if not directly mentioned.
NOTE TO REMEMBER: When you get to Phase 3 and begin
learning setups; visualize this pattern in reference to 3 Pushes out of
the opening range, 3 days of breakouts, trend trades, First Red Day and
First Green Day.

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 Phase 2: The Setups

Concept Of Consolidation:

Consolidation can be defined as all price movement in between a

high and a low. This consolidation can give us a lot of information
about where volume is trapped and trends. However, the aspect of
consolidations we will be discussing is the behavior of price once the
market breaks out of this consolidation.

After a breakout of consolidation, you can expect to see 3 levels

of rise or fall. This would be considered breakout pullback
continuation (one of the 3 things markets do). You can use this
information in your trading to identify measured range expansion
targets.

The other concept is the reversal aspect of consolidations. After

a breakout fails (one of the 3 things markets do), you can at a
minimum 50% retracement of that consolidation OR for price to
complete a 100% retracement of that consolidation range. Both of
these concepts will play a massive role when trying to identify where
to enter and exit the market.

IMPORTANT MINDSET NOTE:

Remember that markets are fractal and EVERYTHING is timed
and measured. These consolidations could be as small as a 1 Minuted
high and low consolidation, or as large as an Inside Bar on the weekly
chart. However, we will be using them frequently when looking at
weekly template setups.

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 Phase 2: The Setups

Image P2S8-2 Consolidation Concept

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 Phase 2: The Setups

Image P2S8-3 Consolidation Range Expansion Of Opening Range

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 Phase 2: The Setups

Image P2S8-4 Consolidation Failed Breakout/Range Expansion

Markets Purpose Of A Pullback:

1. Induce the wrong side of the market

a. In an up trend or a downtrend, when the market pulls back
it will behave in a certain manner to induce traders to take
the wrong side of the trade.
2. Shake out traders who have the direction correct, but have timed
the trade incorrectly.
3. Stop out traders who have the direction correct, but have timed
the trade incorrectly OR who have placed their stops too tight.

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Breaker Page

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 Phase 3: The Setups

Phase 3 Introduction

In Phases 1 and 2, you learned all of the relevant trading

information needed to become professional traders. However, you are
still lacking setups. In this Phase, you will learn a basket of trading
setups that you can look for on a daily and weekly basis. You will also
learn a standard entry model that is rules based and reproducible.

Phase 3 Table of Contents

Topic Page Number

First Red Day---------------------------------151

a. Identification----------------------------151
b. Considerations-------------------------151
c. How to trade----------------------------157
d. Entry Criteria---------------------------157
e. Scenarios-------------------------------162
First Green Day-----------------------------163
a. Identification---------------------------163
b. Considerations------------------------163
c. How to Trade--------------------------166
d. Entry Criteria--------------------------170
e. Scenarios------------------------------172
Inside Day------------------------------------173
a. Identification--------------------------173
b. How to trade--------------------------175

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 Phase 3: The Setups

c. Entry Criteria-------------------------178
3 Pushes Out Of Opening Range----179
a. Considerations-----------------------180
b. How to trade--------------------------180
Reversals------------------------------------186
a. Identification--------------------------186
b. Considerations-----------------------186
c. Long and Short Squeeze----------189
d. Tuesday Failed Breakout----------191
e. Heartbeat Pattern--------------------196
Trend Trades--------------------------------201
a. Tuesday OR Breakout--------------201
Entries-----------------------------------------208
a. Trading Process Visual-------------210

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 Phase 3: The Setups

Section 1: First Red Day

Setup Description:

The concept of this trading setup is that the market has rapidly
ascended for 1-3 days. This is called a pumping day and comes
before the signal day occurs. The signal day is a day AFTER the
pump in which the market opens, trades up through previous days
high and then closes back inside the previous days high and low
BELOW the daily opening price. Both of these days combined create
a First Red Day.

Following Identification of the signal, the end of day consolidation

will be drawn on the last swing high and low of the New York Session.
This will create a rectangle to be used on the following day, which will
be the day you actually look to take your trade.

Considerations:

1. Signal Day closing at the extreme (closing at the LOD) reduces

the quality of the setup. (Market tends to “roll over” on the day
you look to take trade).
2. Signal Day should NOT retrace more than 50% of the pumping
day(s). You want space for the market to fall through.
3. Trying to identify where the market has been going up and is
now consolidating to go back down within the weekly template.
4. If the “Trade Day” breaks previous days high, the setup is
invalidated.
5. First Red Days can also be Inside Days.
a. If the FRD is also an Inside Day, it is acceptable to
close above the previous day's high.

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Image P3S1-1 First Red Day

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Phase 3: The Setups

Breaker Page

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Image P3S1-2 First Red Day/Inside Day

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Phase 3: The Setups

Breaker Page

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 Phase 3: The Setups

Image P3S1-3 First Red Day Example 2

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 Phase 3: The Setups

How To Trade FRD:

1. Identify the Setup.

2. Draw EODC.
3. Come to your session looking for a trade at the high of the day or
high of the session.
4. Draw previous sessions high and low, gap time high and low.
5. Wait for the 1st hour of the session to finish.
6. Draw high and low of the 1st hour.
7. Observe:
a. Breakout and trend?
b. Breakout and reverse?
c. Trading Range?
8. Wait until AFTER the Equity Market opens.
9. IF Setup presents after the equity market opens, implement entry
criteria.

Entry Criteria:

1. 1 Min chart in an up trend

2. 1 Min Break In Structure to the downside
3. 3 Pushes back up
4. Chart Pattern
a. M, Triple Top, Head and Shoulders
5. Engulfment of chart pattern
6. Enter on engulfment

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 Phase 3: The Setups

Image P3S1-4 First Red Day 15 Min Example

● In example P3S1-4, note the large pump followed by a day

that has traded through the previous day's high and closed
below the daily open.
● On the following day, which is the trade day, note the NY
Session has pumped up and is at the high of the day when
the session begins.
● Since the market has already broken down on the 15
Minute chart, we can go down to the 1 minute at the
beginning of the session to look for the entry. (Still waiting
until the 2nd hour before taking a trade 9AM-10AM EST).

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 Phase 3: The Setups

Image P3S1-5 1 Minute FRD Entry Example

Example P3S1-5 is a 1 minute example showing the entry from

P3S1-4.
● Note the current 1M trend is up. The consistent creation of
higher highs and higher lows creates the up trend.
Suddenly in the 1st hour of the Ny Session (8AM-9AM
EST) the market makes a lower low on the 1M chart
breaking structure to the downside.
● Following the Break In Structure, there is a 3 impulse stair
step back up into the high (3 Pushes).
● Note above the 2nd push is the final trap and where the
chart pattern occurs, forming a micro “M” pattern (Double
top). This is the extended M variation.

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 Phase 3: The Setups

● The large bearish candle to the downside engulfing the “M”

is meant to be an ideal first entry with stops no more than
15-20 pips away.

Trade Management:

Stop Loss:

15-20 Pips MAX

IMPORTANT NOTE:
Look for where traders are trapped to find a good tight stop
location using:

1. Time Engulfments
2. Candlestick Behavior Traps
3. Trapped Volume

Target:

1. Low of Session
2. Low of Day
3. Bank Number (100 Pip Box)

Trade Goes Against You:

1. ½ to Stop Loss, close 50% of the trade.

2. ¾ to Stop Loss, close another 50% of the remaining trade size.

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 Phase 3: The Setups

IMPORTANT NOTE:
Be willing to scale back into the position if it reconfirms, however
do NOT re-enter a position just because you want to be in a
trade. It is ALWAYS because the market has provided a follow on
signal or confirmation. This shows that you might be correct
about the trade, but wrong about the timing.

Image P3S1-6 1 Minute Trade Management Example

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 Phase 3: The Setups

First Red Day Scenarios:

1. Market breaks down out of the EODC pulls back and begins to
trend down.
2. Market trades up into the “Trapped Volume Zone” in your
session and gives an entry signal.
3. Market creates a higher high on the 15 minute chart and
CLOSES a candle above previous days high. This is the
INVALIDATION for the setup.

Image P3S1-7 First Red Day Scenarios

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 Phase 3: The Setups

Section 2: First Green Day

Setup Description:

The concept of this trading setup is that the market has rapidly
descended for 1-3 days. This is called a dumping day and comes
before the signal day occurs. The signal day is a day AFTER the
dump in which the market opens, trades down through previous days
low and then closes back inside the previous days high and low
ABOVE the daily opening price. Both of these days combined create a
First Green Day.

Following Identification of the signal, the end of day consolidation

will be drawn on the last swing high and low of the New York Session.
This will create a rectangle to be used on the following day, which will
be the day you actually look to take your trade.

Considerations:

1. Signal Day closing at the extreme (closing at the HOD) reduces

the quality of the setup. (Market tends to “roll over” on the day
you look to take trade).
2. Signal Day should NOT retrace more than 50% of the dumping
day(s). You want space for the market to pump through.
3. Trying to identify where the market has been going down and is
now consolidating to go back up within the weekly template.
4. If the “Trade Day” breaks previous days low, the setup is
invalidated.
5. First Green Days can also be Inside Days.
a. If the FGD is also an Inside Day, it is acceptable to
close below the previous day's low.

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Image P3S2-1 First Green Day

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Image P3S2-2 First Green Day Example 2

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 Phase 3: The Setups

How To Trade FGD:

1. Identify the Setup.

2. Draw EODC.
3. Come to your session looking for a trade at the low of the
day or low of the session.
4. Draw previous sessions high and low, gap time high and
low.
5. Wait for the 1st hour of the session to finish.
6. Draw high and low of the 1st hour.
7. Observe:
a. Breakout and trend?
b. Breakout and reverse?
c. Trading Range?
8. Wait until AFTER the Equity Market opens.
9. IF Setup presents after the equity market opens, implement
entry criteria.

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 Phase 3: The Setups

Image P3S2-3 First Green Day Example 15 Minute Example

In P3S2-3, there are multiple dumping days. Note the Thursday

opening, trading down through previous days low, and the closes
above the opening price for the day.

The market breaks out of the end of day consolidation, and

continues higher in London. If trading London, you would have marked
the previous session’s high and low, as well as the gap time high and
low. If trading New York, the process is the same. Mark of London’s
high and low as well as the gap time high and low.

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 Phase 3: The Setups

Allow the first hour of your session to finish and mark the high
and low. You are looking for the market to prove to you that there are
traders trapped down low and for the entry criteria to complete.

Image P3S2-4 First Green Day Example 1 Minute Example

P3S2-4 is the 1 minute example of P3S2-3.

● Note the break in structure during the gap time. This is the
first step of the entry criteria.
● Additionally there are 3 stair stepping pushes back down
into the LOD and creates a LOS.
● After the 3rd push, the shortened double bottom becomes
the “W’ formation.

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 Phase 3: The Setups

● Normally, the engulfment of this pattern would be the first

entry. However, this “W” formed in the 1st hour so you must
wait until the 2nd hour begins.

Image P3S2-5 First Green Day Example 1 Minute Example 2

P3S2-5 is another 1 Minute example of P3S2-3. Note the

“trapped volume” at the low of the session. This is considered trapped
because the session opened, traded down in 3 pushes. Look at how
aggressive the downclose candles are. All of the closing prices of
those candles are in relatively the same place. That is the area of the

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 Phase 3: The Setups

chart where the market should not trade below, due to not allowing
people out of their losing position.

Entry Criteria:

1. 1 Min chart in an downtrend

2. 1 Min Break In Structure to the upside
3. 3 Pushes back up
4. Chart Pattern
a. M, Triple Top, Head and Shoulders
5. Engulfment of chart pattern
6. Enter on engulfment

Trade Management:

Stop Loss:

● 15-20 Pips MAX

IMPORTANT NOTE:
Look for where traders are trapped to find a good tight stop
location using:

1. Time Engulfments
2. Candlestick Behavior Traps
3. Trapped Volume

Target:

1. High of Session
2. High of Day

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 Phase 3: The Setups

3. Bank Number (100 Pip Box)

Trade Goes Against You:

1. ½ to Stop Loss, close 50% of the trade.

2. ¾ to Stop Loss, close another 50% of the remaining trade size.

IMPORTANT NOTE:
Be willing to scale back into the position if it reconfirms, however
do NOT re-enter a position just because you want to be in a
trade. It is ALWAYS because the market has provided a follow on
signal or confirmation. This shows that you might be correct
about the trade, but wrong about the timing.

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 Phase 3: The Setups

First Green Day Scenarios:

1. Market breaks out of the EODC pulls back and begins to trend
up.
2. Market trades down into the “Trapped Volume Zone” in your
session and gives an entry signal.
3. Market creates a lower low on the 15 minute chart and
CLOSES a candle below previous days low. This is the
INVALIDATION for the setup.

Image P3S2-6 First Green Day Scenarios

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 Phase 3: The Setups

Section 3: Inside Day

Can be identified by a market that has not hit the previous days
high or low and closed. This will appear as an inside bar on the daily
chart.

Characteristics and Theory:

When a market triggers the high or low of an inside bar, breakout

traders are trading that move. A lot of times, those traders are putting
their stop loss at the other end of the bar.

Additionally, all price movements in the market are timed and

measured. If the market does NOT reverse when it has triggered the
extreme of an inside bar, it is likely to do a range expansion of the
inside bar.

You are looking for a market that has broken out, and is pulling back
into the beginning of your session for a trend trade.
The other scenario you are looking for is the breakout of the inside bar
to fail so that you can benefit from the price movement back to the
50% or 100% of the range.

This behavior can be observed on all timeframes, however, we look

for the trade on the 15 Minute timeframe.

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Phase 3: The Setups

Image P3S3-1 Inside Day

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 Phase 3: The Setups

How to Trade An Inside Day:

1. Identify the inside day.

2. Mark off EODC.
3. Prepare before your session begins by marking off:
a. High/low of the previous session.
b. High/low of the gap time.
4. Wait for the 1st hour to take place.
5. Mark off the 1st hour high and low.
6. Wait for the market to:
1. Breakout and trend
2. Breakout and reverse (False break reversal)
7. If the inside day is a breakout, look to target an expansion of the
inside day.
8. If the inside day FAILS, look to target the 50% of the high/low or
the other side of the range.

IMPORTANT NOTE:
If the breakout fails, the market can take multiple days to achieve the
stop hunt back to the other side of the inside day.

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 Phase 3: The Setups

Image P3S3-2 Inside Day Example 2

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Image P3S3-3 Inside Day Range Expansion

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 Phase 3: The Setups

Entry Criteria:

1. 1 Min chart in a downtrend

2. 1 Min Break In Structure to the upside
3. 3 Pushes back up
4. Chart Pattern
5. M, Triple Top, Head and Shoulders
6. Engulfment of chart pattern
7. Enter on engulfment

Trade Management:

Stop Loss:

● 15-20 Pips MAX

IMPORTANT NOTE:
Look for where traders are trapped to find a good tight stop
location using:

1. Time Engulfments
2. Candlestick Behavior Traps
3. Trapped Volume

Target:

1. 50% of inside day range (Reversal)

2. 100% of inside day range (Reversal)
3. 2-3 expansions of the inside bar (Trend Trade)

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 Phase 3: The Setups

Trade Goes Against You:

1. ½ to Stop Loss, close 50% of the trade.

2. ¾ to Stop Loss, close another 50% of the remaining trade
size.

IMPORTANT NOTE:
Be willing to scale back into the position if it reconfirms, however
do NOT re-enter a position just because you want to be in a
trade. It is ALWAYS because the market has provided a follow on
signal or confirmation. This shows that you might be correct
about the trade, but wrong about the timing.

Sections 4: 3 Pushes Out Of Opening Range (3POR):

Can be identified by first observing Mondays high and low. Once

this range has been established, the market should break to one side
or the other and begin to trend. Each day that the market makes a
new higher high or lower low, this will be another push. You are using
the previous days high and low as push references.

For example: Tuesday breaks down and goes lower than

Mondays low. This constitutes a first push. Wednesday then goes
lower than Tuesday's low, this creates the second push. Once
Wednesday's low is broken, you would then have the third push.

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 Phase 3: The Setups

Setup Considerations:

1. Has there been 3 days of breakouts outside of the opening range

using the previous days high and low as reference.
2. Is there volume trapped below or above Wednesdays or
Thursdays range?
3. Is there a rectangle coiled consolidation at the high or low of the
week?
4. Was there an additional signal day to assist in trading decisions?

How to Trade The Setup:

1. After identification of 3POR, mark of the EODC at the end of the

current day.
2. Just before your session begins, mark the previous sessions
high and low.
3. Just before your session begins, mark off the high and low of the
gap time.
4. Wait for the first hour of your session to occur.
5. Just before the next hour begins, mark off the high and low of the
1st hour.
6. Wait until after the equity market opens.
7. Observe to see if the market is trapping traders attempting to
trade into an extreme.
8. Observe to see if the market is trapping traders using the time.
9. Search for one of the two pattern based entry patterns:
a. Short/Long Squeeze
b. Parabolic Trend Trade
10. Observe entry criteria checklist.

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 Phase 3: The Setups

Image P3S4-1 3 Pushes Out Of Opening Range

Trade Management:

Stop Loss:

● 15-20 Pips MAX

IMPORTANT NOTE:
Look for where traders are trapped to find a good tight stop
location using:

1. Time Engulfments
2. Candlestick Behavior Traps
3. Trapped Volume

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 Phase 3: The Setups

Target:

1. High/Low of the Opening Range

2. 50% of the Opening Range
3. HOD/LOD
4. HOW/LOW

Trade Goes Against You:

1. ½ to Stop Loss, close 50% of the trade.

2. ¾ to Stop Loss, close another 50% of the remaining
trade size.

IMPORTANT NOTE:
Be willing to scale back into the position if it reconfirms, however
do NOT re-enter a position just because you want to be in a
trade. It is ALWAYS because the market has provided a follow on
signal or confirmation. This shows that you might be correct
about the trade, but wrong about the timing.

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Image P3S4-2 3 Pushes Out Of Opening Range Detailed Example

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 Phase 3: The Setups

Image P3S4-3 3 Pushes Out Of Opening Range Example 2

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 Phase 3: The Setups

Image P3S4-4 3 Pushes Out Of Opening Range Example 3

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 Phase 3: The Setups

Section 5: Reversals

Reversals are not to be limited to one specific situation, but to a

certain location of the chart. You want to look for reversals:
1. 2-3 days of breakouts in the market
2. 3 Days out of the opening range
3. Currently at the HOW/LOW, HOD,LOD
4. 3 Session of rise or fall AND at the HOW/LOW
Reverals will come in many forms, however we are specifically
looking for Short Squeeze/Long Squeeze patterns at these daily and
weekly extremes.

Note: Do NOT confuse a reversal as a counter trend trade. A reversal

will have a break in structure (BIS) on the 15M chart prior to you
executing the trade.

Characteristics and Considerations:

1. 2-3 days of previous days high/low has been traded through.

2. Price went into consolidation at the high or the low of the week.
3. Break in structure creating a potential long squeeze or short
squeeze patterns.
4. 3 push pullback could come in the form of (depend on the
market context):
a. 3 sessions
b. 3 hours
c. 3 15 Minute candles

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 Phase 3: The Setups

Image P3S5-1 HOW Reversal

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 Phase 3: The Setups

Image P3S5-2 HOW Reversal Example 2

Considerations Continued:

1. Is there 2-3 Days of breakouts in the market?

2. Is there volume trapped at the HOW/LOW?
3. Was there a BIS? Minor? Major?
4. How far away are the most recent MAJOR swing levels? 3 levels?
5. Is there volume trapped in today's daily range?
6. Was there a Heartbeat Pattern Scenario?

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 Phase 3: The Setups

Entry Criteria:

Long Squeeze:

● 1M in an uptrend
● 1M BIS to the downside
● 1M 3 Pushes back up
● 1M Chart pattern
● Engulfment of the chart pattern
● Entry

Short Squeeze:

● 1M in a downtrend
● 1M BIS to the upside
● 1M 3 pushes back down
● 1M Chart pattern
● Engulfment of the chart pattern
● Entry

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 Phase 3: The Setups

Image P3S5-3 Entry Criteria Example: Long Squeeze Pattern

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 Phase 3: The Setups

Image P3S5-4 Entry Criteria Example: Short Squeeze Pattern

Weekly Template: Failed Breakout On Tuesday

Similar to other reversals, this above scenario is a play off of the

Opening Range. The understanding of consolidations is very
important. After a failed breakout on a Tuesday, look to see if the
market has closed above or below 50% of the weekly range. “If there is
a failed breakout, look for prices to go back to the 50% or the other
side of the range”.

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Image P3S5-5 Tuesday Failed Breakout

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 Phase 3: The Setups

Considerations:

1. Was there a failed breakout on Tuesday?

2. Did the market close:
a. If the failed breakout was at the LOW, did the price close
above the 50%?
b. If the failed breakout was at the HOW, did the price close
below the 50%?
3. Was there a BIS on the 15M chart?
4. Was the spike outside of the OR on Tuesday a BIS in that
direction?
a. Could result in the following day becoming a trend trade
INSTEAD of the intended reversal.

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 Phase 3: The Setups

Image P3S5-6 Tuesday Failed Breakout

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 Phase 3: The Setups

Trade Management:

Stop Loss:

● 15-20 Pips MAX

IMPORTANT NOTE:
Look for where traders are trapped to find a good tight stop location using:

1. Time Engulfments
2. Candlestick Behavior Traps
3. Trapped Volume

Target:

● High/Low of the Opening Range

● 50% of the Opening Range
● HOD/LOD
● HOW/LOW
● HOS/LOS
● PDH/PDL

Trade Goes Against You:

● ½ to Stop Loss, close 50% of the trade.

● ¾ to Stop Loss, close another 50% of the remaining trade size.

IMPORTANT NOTE:
Be willing to scale back into the position if it reconfirms, however do NOT
re-enter a position just because you want to be in a trade. It is ALWAYS
because the market has provided a follow on signal or confirmation. This
shows that you might be correct about the trade, but wrong about the
timing.

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 Phase 3: The Setups

HeartBeat Trade Setup (Reversal Pattern):

Characteristics and Considerations:

1. 2-3 Days of Breakouts in the market.

2. Heartbeat patterns SPIKES both sides of the previous days range
and CLOSES back on the inside of the previous days range.
3. Following this behavior, look for short/long squeeze and
parabolic trend trade behavior.
4. These spikes to both sides of the range should be OBVIOUS.
Strong spike in one direction and then immediate reversal. This
will precede a spike in the other direction followed by immediate
reversal.
5. Exact same trade setup as a Parabolic Trend Trade (Presents the
same way, just with the added requirement of hitting both sides
of the previous days range)
6. Direction is based solely off of market structure.
a. If the market has been climbing for 2-3 days and presents a
heartbeat pattern, did it BIS to the downside? Short Trade.
b. If the market has been falling for 2-3 days and presents the
heartbeat pattern, did it BIS to the upside? Long Trade.
7. Depending on direction:
a. Parabolic Long- Looking for evidence that shorts are being
induced and then immediately dragged in the wrong
direction.
b. Capitulating Shorts- Looking for evidence that longs are
being induced and then immediately being dragged in the
wrong direction.

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Image P3S5-5 Entry Parabolic Trend Trade (NOT Heartbeat Trade Setup)

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 Phase 3: The Setups

Image P3S5-6 Heartbeat Short Trade Setup

Other Variations of the Heartbeat Pattern:

Multi-Day Failed Breakout:

Style of weekly template to watch for, in which the market breaks

out to one side of the week and fails, travels to the other side and also
fails. This process can take 2-3 days and should be considered in the

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 Phase 3: The Setups

same regard as the previously described heartbeat pattern. You will

look to trade it in the same manner, looking for Parabolic Short/Long
Squeeze and Parabolic Trend Trade patterns.

Image P3S5-7 HeartBeat Short Trade Setup

Trade Management:

Stop Loss:

● 15-20 Pips MAX

IMPORTANT NOTE:

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Look for where traders are trapped to find a good tight stop location using:

1. Time Engulfments
2. Candlestick Behavior Traps
3. Trapped Volume

Target:

1. High/Low of the Opening Range

2. 50% of the Opening Range
3. HOD/LOD
4. HOW/LOW
5. HOS/LOS
6. PDH/PDL
7. 1-2 expansions of the peak high and valley low that has created the
“heartbeat pattern”.

Trade Goes Against You:

1. ½ to Stop Loss, close 50% of the trade.

2. ¾ to Stop Loss, close another 50% of the remaining trade size.

IMPORTANT NOTE:
Be willing to scale back into the position if it reconfirms, however do NOT
re-enter a position just because you want to be in a trade. It is ALWAYS because
the market has provided a follow on signal or confirmation. This shows that you
might be correct about the trade, but wrong about the timing.

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Section 6: Trend Trades

Tuesday Close Outside OR

Trend trades are taken based off of the weekly template.

Monday+Tuesday=Wednesdays Trade. If there is a close outside of
the opening range on a Tuesday, there is a high probability of
continuation on Wednesday, therefore I would look for the trend trade
on that day.
There are also trend trade opportunities based off of signal days
and the previous day beginning a reversal pattern.
Example: Monday, Tuesday were up close days (Trading higher).
Wednesday turned into a First Red Day, breaking structure to the
downside. On the following day I come to my session looking to sell
high.

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Image P3S6-1 Market Maker Template Trend Trades

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Image P3S6-2 Market Maker Template Trend Trades

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 Phase 3: The Setups

Considerations:
1. Tuesday has closed on the outside of the Opening Range.
2. Did Asia or London break structure in the direction of the trend?
a. Has there been 3 pushes back following the structural
break?
3. Has there been 3 levels of rise or fall from the previous days
high/low?
4. Even with a trend trade, you are still looking for a long
squeeze/short squeeze pattern (Higher high/ 3 pushes down or
lower low and 3 pushes up.)

Note: Thursday and Friday can also be trend trades, as long as they
have NOT set up for a reversal.

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Image P3S6-3 Market Maker Template Trend Trades

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 Phase 3: The Setups

Entry Criteria:

Long Squeeze:

● 1M in an uptrend
● 1M BIS to the downside
● 1M 3 Pushes back up
● 1M Chart pattern
● Engulfment of the chart pattern
● Entry

Short Squeeze:

● 1M in a downtrend
● 1M BIS to the upside
● 1M 3 pushes back down
● 1M Chart pattern
● Engulfment of the chart pattern
● Entry

Trade Management:

Stop Loss:

● 15-20 Pips MAX

IMPORTANT NOTE:
Look for where traders are trapped to find a good tight stop location using:

● Time Engulfments
● Candlestick Behavior Traps
● Trapped Volume

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Target:

● High/Low of the Opening Range

● 50% of the Opening Range
● HOD/LOD
● HOW/LOW
● HOS/LOS
● PDH/PDL

Trade Goes Against You:

● ½ to Stop Loss, close 50% of the trade.

● ¾ to Stop Loss, close another 50% of the remaining trade size.

IMPORTANT NOTE:
Be willing to scale back into the position if it reconfirms, however do NOT
re-enter a position just because you want to be in a trade. It is ALWAYS
because the market has provided a follow on signal or confirmation. This
shows that you might be correct about the trade, but wrong about the
timing.

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Section 7: Entries

Depending on the situation, there will be a lot of factors that go

into each trade, however that is NOT the case for entries. All of the
detail that goes into deciding where and when the best place is for an
entry remains constantly the same.
1. Entry Process
a. 15M Setup identified.
b. Previous session high and low drawn.
c. Gap time high and low drawn.
d. 1st hour of session high and low drawn.
2. Time
a. After the equity market open.
b. End of a 15M or 1H candle OR middle of a 15M bar or
1H bar.
c. IN THE 3 HOUR TIMING WINDOW. NOT BEFORE. NOT
AFTER.
3. Determine if trade setup is:
a. Countertrend- has not been a BIS on the 15M chart.
However the 1M chart has consolidated and broken
structure either at the HOD or LOD.
b. Reversal/Trend Trade- 15M chart is in a trend, or has a
BIS and you are attempting to get in early on a newly
developed trend (Reversal).
4. Look at the 15 minute chart. Identify if there has been some
kind of trap.
a. 3 Push
b. 3 level
c. Candle Behavior

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5. On a 1 minute chart, wait for entry criteria to play out. At the

same time you are waiting for entry criteria, observe where
traders might be trapped
a. Time engulfments
b. Candle behavior
6. Entry Criteria
i. Level Formed (High/Low)
ii. BOS/BIS
iii. 3 Pushes
iv. Chart Pattern
v. Engulfment of the chart pattern
vi. Take entry

Entry criteria is considered a pattern based entry and is effective

in itself. HOWEVER, your edge and increased accuracy will come from
the ability to read where and when traders are trapped in the market.
This is considered a behavior based entry and is to be used in
combination with the pattern based entry.
Pattern based entry is the MINIMUM requirement for entry,
however it is good practice to look for the time engulfments and
trapped traders on EVERY trade you take.

Trading Process Visual:

For traders who are still struggling to see the entries or

understand the process up to this point, here is an additional visual of
the trading process. Ensure you are referencing the pyramid from
bottom to top.

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Image P3S6-3 Market Maker Template Trend Trades

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 Phase 4: Mentorship

_____________________________________________________________________

Phase 4 Introduction
_____________________________________________________________________

In Phase 4, you will receive everything you need to know about

what to do next after receiving your trading education. This includes a
roadmap to success, other important books to read and an example of
a trading plan.

_____________________________________________________________________
Phase 4 Table Of Contents

Topic Page Number

_____________________________________________________________________
Career Roadmap---------------------------------------------212
Useful Books---------------------------------------------------213
Trading Plan Example-------------------------------------214
Course Summary--------------------------------------------215

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Phase 4: Mentorship

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 Phase 4: Mentorship

Other Valid Books and Trading Information:

1. Technical Analysis of Stock Market Trend-Robert Edwards &

John Magee
2. Technical Analysis and Stock Market Profits-Richard Shabacker
3. Diary of A Professional Commodity Trader-Peter Brandt
4. Reminiscences of A Stock Operator-Edwin Lefevre
5. Markets In Profile: Profiting from The Auction Process-James
Dalton
6. Trading In The Zone-Mark Douglas

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 Phase 4: Mentorship

Course Summary:

● All of the concepts learned are FRACTAL, just as price

movements are fractal. A consolidation is a consolidation,
regardless of where it is found. The definition will remain the
same. The same goes for all other concepts in this course.
● Concepts are your tools. Trading Setups is where you apply
those tools. The knowledge of when to use what tool comes with
study, time and experience. The same can be said with any other
thing you have EVER learned how to do.
● Trading is NOT a “get rich quick”. It is “get poor quick” if you do
not know what you are doing.
● The less time you spend at the computer screen making
decisions the better. Show up, form a thesis, wait patiently, either
take the trade or don't, follow the plan, get on with your day.
● When in doubt, ask yourself these questions:
○ What setup have I identified?
○ How does my trade plan say to execute?
○ Are traders trapped? (use one one or more methods to
identify the behavior).
○ What is the structure of the 15M and 1M telling me? BIS?
BOS? 3 Pushes?
○ What time is it? New 15M bar? New 1H bar? Has the equity
market opened?
○ Mark off the 1st hour of your trading sessions high and low
(Opening range).
○ Has my entry criteria begun to play out yet?
○ What is the market trying to get traders to do? What
signatures give me evidence of this behavior?
● Do NOT get months into your trading and realize you have not
improved.

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○ Everyday journal your trades.

○ Have a self review process.
■ Record yourself talking about what you did well, what
you did wrong and what you could have done better.
■ Talk to somebody else about what you did well, what
you did wrong and what you could have done better.

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