SELLERS STOPLOSSES
LOW OF THE DAY
HIGH OF THE DAY
BUYERS STOPLOSSES
LEVEL #2
LEVEL #3
LEVEL #1
ONCE THE DEALER HITS THE STOPS AND FORMS THE "M" OR "WM" , HE WILL THEN
DROP OR RISE FOR 3 CONSECUTIVE LEVELS. THIS IS TO TRAP ANY BUYERS OR
SELLERS AT THE HIGH/LOW OF THE DAYDAY. ALSO ONCE THE THIRD LEVEL IS
NORMALLY THE LEVEL WHICH HITS THE STOPS LOSSES OF THE REMAINING RETAIL
TRADERS. THE 3RD LEVEL WILL ALSO BE THE CREATION OF THE FIRST LEG OF THE
"M" OR "W" TO TRAP RETAIL TRADERS AND GET THEM TRADING IN THE WRONG
DIRECTION ONCE AGAIN!
IF YOU HAVE NOT NOTICED THIS ALREADY, THE DEALER WORKS IN PATTERNS OF 3.
THIS IS FOR PSYCHOLOGICAL PURPOSES. AS HUMANS WE ARE NATURALLY GREEDY,
SO IF WE SEE AN OPPORTUNITY PRESENT ITSELF 3 TIMES, WE ARE MORE LIKELY TO
GRAB AT THE "OPPORTUNITY", THIS IS WHEN THE DEALER REVERSES THE MARKET
ON YOU. NOW THE DEALER DOES NOT ALWAYS WORK IN PATTERNS OF 3, IT IS
COMMON.. BUT HE CAN DO WHATEVER HE CHOOSES.
AS YOU CAN SEE FROM THE INFO GRAPH ABOVE, MARKET MAKERS WILL CREATE A W
OFF OF THE NEWLY CREATED LOW OF THE DAY AND THEN RISE, TO END THE DAY IN
ALMOST THE EXACT PRICE RANGE AS IT STARTED IN! WHY?.... THE DEALERS CANNOT
JUST DO WHAT THEY PLEASES WITH THE ENTIRE FINANCIAL SYSTEM, THEY TOO
HAVE THEIR DAILY LIMITS.
ALL TOO OFTEN YOU WILL SEE THE DEALER DO JUST AS ILLUSTRATED ABOVE,
START THE DAY IN CONSOLIDATION/ACCUMULATION THEN SWING UP TO HIT STOPS
OF SELLERS AND SWING DOWN TO HIT THE STOPS OF BUYERS, THEN COME UP JUST
ENOUGH TO END THE DAY OFF IN ALMOST THE SAME PLACE AS IT
STARTED, CAUSING LITTLE OVERALL CHANGE IN THE DAILY MARKET CONDITIONS.
THE ENDING AND BEGINNING OF EACH DAY START IN CONSOLIDATION FOR MANY
PURPOSES.... PSYCHOLOGICALLY, THE DEALER DOES THIS TO MIMIC A VER SIMILAR
THEME THAT YOU HAVE BEEN EXPOSED TO YOUR ENTIRE LIFE.
LET ME ELABORATE FOR YOU...
IF YOU HAVE EVER READ A BOOK, WATCHED A MOVIE OR TV SERIES YOU HAVE
EXPERIENCED THIS MANY TIMES.
THE DEALERS PATTERN MIMICS THE EXACT STRUCTURE OF A STORYLINE
DOES THIS LOOK SIMILAR TO ANY PATTERNS YOU HAVE SEEN IN THE
MARKET?
I REMEMBER IN MIDDLE SCHOOL BEING TAUGHT HOW TO WRITE A
STORY OR A BOOK, AND EXACTLY HOW TO STRUCTURE IT TO GET THE
BEST REACTION. THIS IS THE EXACT SAME STRUCTURE THAT TAKES
PLACE IN ALL "STORIES" WETHER IT BE A MOVIE PLOT, OR A NON-
FICTION FAIRYTALE BOOK.
TAKE FOR EXAMPLE A "TV SERIES" , THIS IS A NEAR PERFECT
REPRESENTATION OF HOW THE MARKET IS STRUCTURED IN A MACRO
AND MICRO SCALE.
THE START AND END OF EVERY EPISODE OF ANY TV SERIES HAS
SOMETHING IN COMMON, THEY ALL START AND END IN SUSPENSE TO
KEEP YOU WANTING MORE AND MAKE YOU COME BACK! ~IN A TV
SERIES, THE ENDING OF AN EPISODE HAS TO ALWAYS BE IN LINE WITH
THE BEGINNING OF THE NEXT EPISODE TO KEEP THE STORY STRUNG
TOGETHER AND TO KEEP THE PERSON WATCHING IN SUSPENSE AND
ALSO KEEP THEM GUESSING ABOUT HOW THE NEXT EPISODE MAY
BEGIN.
YOU CAN SEE THIS VERY CLEARLY IN THE MARKETS OVER AND OVER
AGAIN, EACH DAY ENDS IN CONSOLIDATION AND EACH NEW DAY
BEGINS IN C O N S I D A T I O N , T H I S I S A V E R Y
COMMONLY RECURRING THEME IN THE MARKET THAT YOU CAN
ALSO SEE MATCH UP WITH THE STRUCTURE OF A STORY.
COINCIDENCE?
DOES PRICE REALLY MOVE BECAUSE THE MAINSTREAM RETAIL IDEA
OF A "FIGHT" BETWEEN BULLS AND BEARS? OR BUYERS AND
SELLERS...? I THINK WE CAN DISMISS THIS RETAIL TRADING
MENTALITY AS SHEER PROPAGANDA DESIGNED TO KEEP US BLINDED
FROM WHAT IS REALLY GOING ON.
THIS IS NOT SOME RANDOM CYCLE OR PATTERN... THE DEALER HAS
STRUCTURED THE MARKET THIS WAY BECAUSE OF HOW EASY IT CAN
BE TO MANIPULATE ONES FEELINGS, AND BECAUSE WE HAVE ALREADY
BEEN "PRE-PROGRAMMED" TO REACT A SPECIFIC WAY WHEN A
PATTERN OF THIS SORT IS PRESENTED TO US, THUS THEY WILL
ALWAYS KNOW THE OUTCOME BASED OFF OF OUR NATURAL REACTION
TO WHAT HAS BEEN PRESENTED.
THE NEXT LESSON WILL BE ON THE CREATION OF TRENDS, KEEP THE IMAGE ABOVE
IN YOUR MIND WHEN GOING OVER THE NEXT LESSON, AS IT WILL MAKE MUCH MORE
SENSE WHEN EXPLAINING HOW THE DEALER CREATES THE TREND.
HERE ARE SOME MORE VARIATIONS OF SIMILAR PATTERNS AND
STRUCTURES FOUND IN THE MARKET
STRUCTURE OF A STORY
"STAR WARS STORY LINE"
STRUCTURE OF THE MARKET
EURGBP 15MIN PRICE STRUCTURE
**THESE ARE ONLY RANDOM EXAMPLES DEPICTED, NOT EVERY
PATTERN WILL BE THE SAME. EACH PATTERN IS A FRACTAL OF THE
S A M E VARIATION. DO YOUR HOMEWORK AND LEARN TO SEE THESE
DIFFERENT VARIATIONS.
IN THE COMING LESSONS YOU WILL LEARN TO ANALYZE AND TRADE THESE SAME
STRUCTURES WITH EASE!
