BTMM Simplified
BTMM Simplified
BTMM Simplified
LESSON OBJECTIVES
>TO UNDERSTAND WHAT MARKET MAKERS ARE AND THEIR OBJECTIVES.
>TO UNDERSTAND HOW MMS MANIPULATE OR MOVE THE MARKETS.
>TO IDENTIFY STOP HUNTS AND STANDOUT FROM MOST RETAIL TRADERS.
>TO BE ABLE TO TRADE ‘M’ AND ‘W’ FORMATIONS.
>TO COMBINE BTMM STRATEGY WITH OTHER INDICATORS FOR HIGH
PROBABILITY CONFLUENCE TRADING.
>TO EXERCISE PATIENCE AND MAKE CONSISTENT PROFITS.
F
A
PHASES OF THE MARKET MAKER CYCLE
➢ INDUCE → TRAP → SHIFT
➢ 3 LEVELS OF RISE/DROP
➢ ‘M’ OR ‘W’ FORMATION AT THE HIGH/LOW OF THE DAY (H.O.D / L.O.D)
➢ REVERSAL BACK TO THE RANGE INTO CONSOLIDATION
BULLISH
CYCLE
E
F
SHIFT OUT OF ZONE
D
B
SELLERS ARE
3 PUSHES DOWN INDUCE TRADERS
A TRAPPED IN
TO GO SHORT
C THIS ZONE
BULLISH CYCLE - FROM THE CHART (GBPJPY M15)
DURING THE ACCUMULATION PHASE (ASIAN RANGE) WE HAVE 3 PUSHES
DOWN TO INDUCE TRADERS (MAINLY THOSE WHO TRADE SUPPORT AND
RESISTANCE BREAKOUTS) TO GO SHORT AND END UP BEING IN A DRAW
DOWN DURING THE ‘W’ FORMATION LEADING TO THEIR STOP LOSSES BEING
HIT WHEN THE MARKET SHIFTS OUT OF ZONE.
AT ‘A’ SOME TRADERS GO LONG BASING WITH THE FORMATION OF A
BULLISH CANDLE AND SET THEIR STOP LOSS AT ‘C’ ANTICIPATING A TREND
REVERSAL.
AT ‘B’ SOME TRADERS GO SHORT RIDING WITH THE TREND (YELLOW LINE)
AND SET THEIR STOP LOSSES AT ‘D’.
WHEN THE MARKET REACHES ‘C’ STOP LOSSES OF BUYERS AT ‘A’ ARE HIT
AND WHEN IT REACHES ‘D’ STOP LOSSES OF SELLERS AT ‘B’ ARE ALSO HIT,
ALLOWING THE MARKET MAKERS TO SHIFT OUT OF THE TRAP ZONE WITH
ONLY A FEW WHO BOUGHT AT ‘C’, FILTERING OUT MOST RETAIL TRADERS.
SOME TRADERS RECOGNIZE THE PATTERN LATER WHEN IT HAS OCCURRED
AND BUY AT ‘E’ AND SET THEIR STOP LOSSES AT ‘F’ WHICH ARE HIT AS THE
MARKET PROCEEDS.
[WE ARE GOING TO FURTHER LOOK INTO THESE LEVELS AS WE PROCEED
WITH THIS TOPIC]
BUYERS ARE TRAPPED
C
BEARISH A
IN THIS ZONE
3 PUSHES UP INDUCE
CYCLE TRADERS TO GO LONG
B
D
F
E
SHIFT OUT
OF ZONE
END OF DAY
(GAP TIME)
ASIAN SESSION
NEW YORK SESSION (ACCUMULATION PHASE)
(END OF DAY REVERSAL
& CONSOLIDATION)
BEARISH 5/13 CROSS REVERSAL PATTERN’S LOCK AT H.O.D
END OF DAY
(GAP TIME)
ASIAN SESSION
NEW YORK SESSION (ACCUMULATION PHASE)
(END OF DAY REVERSAL
& CONSOLIDATION)
BULLISH END OF DAY
(GAP TIME)
CYCLE
LONDON SESSION
(STOP HUNT/TREND MOVE) ASIAN SESSION
(ACCUMULATION PHASE)
END OF DAY
(GAP TIME) 50/800 CROSS LEVEL 3
OVERALL TREND DIRECTION
CYCLE
LONDON SESSION
(STOP HUNT/TREND MOVE) ASIAN SESSION
(ACCUMULATION PHASE)
END OF DAY
(GAP TIME) 50/800 CROSS LEVEL 3
OVERALL TREND DIRECTION
REGULAR EXTENDED
NB : ‘M’ & ‘W’ PATTERNS FORMED ARE NOT LIMITED TO THE ONES ABOVE,
THERE ARE OTHER VARIOUS TYPES.
WEEKLY PRICE MOVEMENTS
➢THE WEEKLY PATTERN DOES NOT IMPLY THE USE OF A WEEKLY TIME FRAME.
➢IT REFERS TO A PATTERN THAT CAN BE SEEN IN A 15, 60 OR 240 MINUTE CHART
➢PRICE MAY MOVE IN ONE TREND DURING THE WHOLE WEEK OR INCUR MID-WEEK
REVERSALS DUE TO FUNDAMENTALS (NEWS)
➢WHEN PRICE MOVES IT FORMS 3 LEVELS (INTRADAY PUSHES) SIMILAR TO THE ONES
FORMED IN THE DAILY TIME FRAME
➢HOWEVER THESE LEVELS ARE NOT LIMITED TO EMA CROSSOVERS MEANING THAT
THEY CAN BE COUNTED WITHOUT SOME EMA CROSSOVERS
➢THESE 3 LEVELS WILL NOT PRESENT THEMSELVES WEEKLY ON EVERY PAIR SO I
ADVISE YOU TO BE VERY SELECTIVE INORDER TO EXECUTE YOUR TRADES IN THE
RIGHT MARKET STRUCTURE
KEY MON TUE WED THU FRI
L3
ASIAN SESSION
LONDON SESSION
L1
TIPS
➢THIS CYCLE HAS TO BE SEEN WITH CLARITY
➢IF A PAIR DOES NOT SHOW THE CYCLE CLEARLY, DO NOT CONFUSE OR STRESS
YOURSELF, JUST SIMPLY OPEN ANOTHER CHART AND IDENTIFY THE CYCLE WITH
CLARITY
➢A LEVEL IS DEFINED AS A LONG SUSTAINED RUN, DAYS OF CONSOLIDATION SHOULD
NOT BE SEEN AS LEVELS